|870| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Revenue from construction contracts Revenue and related expenditures in respect of short-term works contracts that are entered into and completed during the year are accounted for on accrual basis as they are earned. Revenue and related expenditures in respect of longterm works contracts are accounted for on the basis of ‘input method’ as the performance obligations are satisfied over time. In case of cost plus contracts, revenue is recognised as per terms of specific contract, i.e. cost incurred plus an agreed profit margin. Further, the Group considers the terms of the contract and its customary business practices to determine the transaction price. The consideration promised in a contract with a customer may include fixed consideration, variable consideration (if reversal is less likely in future), or both. Revenue from sale of land Revenue from sale of land is recognised in the year in which the underlying sale deed is executed and there exists no uncertainty in the ultimate collection of consideration from buyer. Base rent and amenities income Base rent and amenities income are recognised on a straight-line basis over the terms of the lease, except for contingent rental income, which is recognised when it arises and where scheduled increase in rent compensates the lessor for expected inflationary costs. Base rent comprises rental income earned from the operating leases and finance lease of the owned properties. Amenities income is rental revenue earned from the letting of space at the properties for amenities (including canteen space and business centre) is recognised in the period in which the services are being rendered. Land lease income Upfront lease premium received/receivable is recognized on operating lease basis i.e. on straight line basis over the lease term of the lease/sub-lease arrangement. Annual lease rentals are recognized on an accrual basis. Operations and maintenance income Income arising from billing of maintenance charges to tenants/customers is recognised in the period in which the services are being rendered. A receivable is recognised by the Group when the services are rendered as this is the case of point in time recognition where consideration is unconditional because only the passage of time is required. Further, the Group considers the terms of the contract and its customary business practices to determine the transaction price. The consideration promised in a contract with a customer may include fixed consideration, variable consideration (if reversal is less likely in future), or both. Profit on sale of investment with underlying business Profit on sale of investments of entities in the real estate business is recognised in the year in such investments are sold after adjusting the consideration received with carrying value of investment. The said profit is recognised as part of other operating income as in substance, such sale reflects the sale of real estate business. Gain on fair valuation of investment (remaining stake) Gain on fair valuation of investment is recognised in the year in which the investment fair valued basis the consideration received for the proportionate stake sale. The said gain is recognised as part of other operating income as there is underlying business of real estate development. Service revenue Income from real estate advisory services is recognized on accrual basis when services are completed, except in cases where ultimate collection is considered doubtful.
|871| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Interest income Interest income is recorded on accrual basis using the effective interest rate (EIR) method. Interest on delayed receipts, cancellation/forfeiture income and transfer fees from customers are recognized on accrual basis except in cases where ultimate collection is considered doubtful. Car parking income Car park income is recognised in the period in which the services are rendered. Dividend income Dividend income is recognised at the time when right to receive the payment is established, which is generally when the shareholders of the investee entity approve the dividend. Gain on de-recognition of financial asset carried at amortised cost Gain on de-recognition of financial asset carried at amortised cost is recognised in the year when the entire payment is received against the outstanding balance of amortised cost financial assets. b) Notes to Accounts Note - 30 Revenue from operations Revenue from real estate properties 452,111.61 32,513.27 Revenue from real estate properties advisory and management services 1,919.61 - Revenue from sale of land 306.60 20,822.51 Rental and land lease 1,695.15 58,136.20 Revenue from maintenance services 474.44 8,137.74 Revenue from construction contracts 16,586.83 336.36 Other operating income 31 March 2019 (`in lakhs) 31 March 2018 (`in lakhs) Profit on loss of control in subsidiaries and gain on fair valuation of remaining stake (refer note 59 and 55) 13,390.02 282,477.38 Profit on sale of stake in subsidiaries (refer note 60 and 56) 1,414.67 4,678.51 Profit on sale of investments 4,448.78 26,133.51 Income from advisory services 115.20 14,500.00 Interest income on delayed payments from customers 303.29 121.43 Forfeiture income 1,622.69 1,590.09 Income from car parking - 819.52 494,388.89 450,266.52 *Refer note 41 (I) for details about restatement on account of changes in accounting policies consequent to adoption of Ind AS 115.
|872| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Note - 41 (i) Revenue related disclosures A Disaggregation of revenue Set out below is the disaggregation of the Company’s revenue from contracts with customers: (` in lakhs) Particulars Year Ended 31 March 2019 Year Ended 31 March 2018 Revenue from contracts with customers (i) Revenue from operations (a) Revenue from real estate properties 452,111.61 32,513.27 (b) Revenue from real estate properties advisory and management services 1,919.61 — (c) Revenue from sale of land 306.60 20,822.51 (d) Revenue from maintenance services 474.44 8,137.74 (e) Revenue from construction contracts (refer note F below) 16,586.83 336.36 (ii) Other operating income (advisory services, car parking and forfeiture income) 21,294.65 330,320.44 Total revenue covered under Ind AS 115 492,693.74 392,130.32 B Contract balances The following table provides information about receivables and contract liabilities from contract with customers: (` in lakhs) Particulars As at 31 March 2019 As at 31 March 2018 Contract liabilities Advance from customers 422,062.24 802,856.90 Total contract liabilities 422,062.24 802,856.90 Receivables Trade receivables 26,022.39 311.02 Total receivables 26,022.39 311.02 Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets (unbilled receivables) are transferred to receivables when the rights become unconditional and contract liabilities are recognised as and when the performance obligation is satisfied.
|873| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers C Significant changes in the contract liabilities balances during the year are as follows: (` in lakhs) Particulars As at 31 March 2019 As at 31 March 2018 Contract liabilities Advances from customers Contract liabilities Advances from customers Opening balance 802,856.90 818,785.60 Addition during the year 45,294.56 16,273.55 Revenue recognised during the year (426,089.22) (32,202.25) Closing balance 422,062.24 802,856.90 D The aggregate amount of transaction price allocated to the unsatisfied performance obligations as at 31 March 2019 is ` 428,662.24 lakhs. This balance represents the advance received from customers (gross) against real estate properties under development. The management expects to further bill and collect the remaining balance of total consideration in the coming years. These balances will be recognised as revenue in future years as per the policy of the Company. Further, as permitted under the transitional provisions of Ind AS 115, the transaction price allocated to the unsatisfied performance obligations as at 31 March 2018 is not disclosed. E Reconciliation of revenue from sale of properties with contract revenue: Particulars Year ended 31 March 2019 Year ended 31 March 2018 Contract revenue 463,257.45 33,057.99 Adjustment for: - Subvention cost* (11,145.84) (544.72) Revenue from sale of properties 452,111.61 32,513.27 * Subvention cost represent the expected cash outflow under the arrangement determined basis time elapsed. F One of the subsidiary company of the group earns revenue from construction contracts. Revenue and related expenditures in respect of short-term works contracts that are entered into and completed during the year are accounted for on accrual basis as they are earned. Revenue and related expenditures in respect of long-term works contracts are accounted for on the basis of ‘input method’ as the performance obligations are satisfied over time. For the purpose of revenue recognition, as part of the input method, the percentage of completion is arrived basis the cost incurred as compared the total budgeted cost for the contract. In case of cost plus contracts, revenue is recognised as per terms of specific contract, i.e. cost incurred plus an agreed profit margin. G Ind AS 115 ‘Revenue from Contracts with Customers’, mandatory for reporting periods beginning on or after 1 April 2018, replaces existing revenue recognition requirements. The application of Ind AS 115 has impacted the Company’s accounting for recognition of revenue from real estate projects. The Company has applied full retrospective approach in adopting the new standard and accordingly restated the previous period numbers basis completion of contract for all the real estate projects across India. The following table summarises the impact on transition to Ind AS 115 on each individual line items. Line items that are not affected by changes have not been included.
|874| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts (a) Balance sheet (` in lakhs) Particulars 31 March 2018 As originally presented Change 31 March 2018 As restated 31 March 2017 As originally presented Change 1 April 2017 As restated Non-current assets Deferred tax assets (net) 21,153.73 78,478.43 99,632.16 37,803.69 87,593.21 125,396.90 Current assets Inventories (refer note II below) 607,691.16 528,426.88 1,136,118.04 782,862.46 532,684.03 1,315,546.49 Trade receivables 281,196.43 (279,763.37) 1,433.06 382,422.86 (375,400.63) 7,022.23 Current liabilities Other current liabilities 182,192.66 635,724.48 817,917.14 243,063.00 591,395.56 834,458.56 Other equity 593,594.55 (308,582.54) 285,012.01 395,580.61 (346,518.95) 49,061.66 (b) Statement of profit and loss (` in lakhs) Particulars 31 March 2018 As originally presented Change 31 March 2018 As restated Revenue Revenue from operations 592,653.18 (142,386.66) 450,266.52 Expenses (Increase) in real estate project under development 175,171.30 (186,877.12) (11,705.82) Profit before tax 225,433.18 44,490.46 269,923.64 Tax expense Deferred tax expense 14,577.32 6,554.04 21,131.36 Profit for the year 198,019.49 37,936.62 235,956.11 Net profit attributable to Owners of the Holding Company 201,515.09 35,769.43 237,284.52 Non-controlling interests (3,495.60) 2,167.19 (1,328.41) Impact on basic earnings per share 42.46 7.54 50.00 Impact on diluted earnings per share 41.99 7.43 49.42 One of the wholly-owned subsidiary of the Group has provided for losses amounting to ` 60,197.00 lakhs in respect of one of its project pertaining to earlier years. Accordingly, the Group has restated its financial results as at 1 April 2017 with a corresponding impact as on 31 March 2018 as per the principles of Ind AS 8. This has no impact on the financial results for the year ended 31 March 2019. 21. INDIAN OIL CORPORATION LIMITED Accounting Policies REVENUE FROM CONTRACT WITH CUSTOMERS 1. The Group is in the business of oil and gas operations and it earns revenue primarily from sale of petroleum products and petrochemical products. In addition, the Group also earns revenue from businesses which comprises Gas, Exploration & Production and Others.
|875| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Revenue is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is measured based on consideration specified in contract with customer and excludes amounts collected on behalf of the third parties. The Group has generally concluded that it is the principal in its revenue arrangements, except a few agency services, because it typically control the goods or services before transferring them to customers. The Group considered whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., customer loyalty points). In determining the transaction price for the sale of products, the Group considers the effects of variable consideration, the existence of significant financing components, non-cash consideration and consideration payable to customer (if any). 2. Revenue from sale of petroleum products, petrochemical products, Crude and gas are recognized at point in time, generally upon delivery of the products. The Group Recognizes revenue over time using input method (on the basis of time elapsed) in case of non-refundable deposits from dealers and service contracts. In case of construction contracts, revenue and cost are recognized by measuring the contract progress using input method by comparing the cost incurred and total contract cost. 3. The company has assumed that recovery of exercise duty flows to the company on its own account. This is for the reason that it is the liability of the manufacturer which forms part of the cost of production, irrespective of whether the goods are sold or not. Since the recovery of exercise duty flows to company on its own account, revenue includes exercise duty. However, sales tax/Goods and Service Tax (GST) and value added tax (VAT) is not received by the company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of government. Accordingly, it is excluded from revenue. 4. Variable consideration If the consideration in contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the good to the customer. The variable consideration estimated at contract inspection and constrained until it is highly probable that a significant revenue recognized will not occur when the associate uncertainty with the variable consideration is subsequently resolved. The Group provides the volume rebates to certain customers once the quantity of products purchased during the period exceeds the thresholds specified in the contract. Rebates are offsets against amounts payable by the customer. The volume rebate/cash discount give rise to variable consideration. To estimate the variable consideration for the expected future rebate/cash discount, the Group applies the most likely amount method for contracts with a single-volume threshold and the expected value method for contracts with more than one volume threshold. The selected method the best predicts the amount of variable consideration is primarily driven by the number of volume thresholds contained in the contract and accordingly, the Group recognizes a refund liability for the expected future rebates. 5. Loyalty Points The Group operates various loyalty point schemes. The transaction price allocated to customer loyalty points is based on there relative estimated standalone selling price and the same is reduced from revenue from sale of goods. While estimating standalone selling price o customer loyalty points, the likelihood of exercising the option is adjusted. Wherever the Group is acting as agent in this arrangement, the Company recognize the revenue on the net basis.
|876| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Disclosures Note 23: Revenue From Operations ( ` in Crore) Particulars 2018-19 2017-18 Sales (Net of Discounts) 6,07,524.57 5,06,476.10 Sales of Services 115.86 78.49 Other Operating Revenues (Note *23.1*) 5,031.57 5,716.75 6,12,672.00 5,12,271.34 Net Claim/(Surrender) of SSC 310.66 (6.90) Subsidy From Central/State Government 150.00 81.11 Grant from Government of India 4,110.18 3,196.34 TOTAL 6,17,242.84 5,15,541.89 Particiulars relating to Revenue Grants are given in Note - 43) NOTE - 44 : REVENUE FROM CONTRACTS WITH CUSTOMERS The Group is in the business of oil and gas and it earns revenue primarily from sale of petroleum products, petrochemicals and others comprising of Gas, E&P and Others. Revenue are recognized when control of the goods and services are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods and services. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. In determining the transaction price for the sale of products, the company considers the effects of variable consideration, the existence of significant financing components, non-cash consideration, and consideration payable to the customer (if any). Gene rally, Group enters into contract with customers; a. On delivered basis in case of Retail Sales, LPG and Aviation. b. On EX-Ml as well as delivered basis in case of Lubes and Consumers. c. On FOB or CIF basis depending on terms of contract in case of Export sales. Majority of Group's sales are to retail category which are mostly on cash and carry basis. Group also execute supply to Institutional Businesses(IB), Lubes, Aviation on credit which are for less than a year. For maintaining uninterrupted supply of products, customers generally deposit amount in advance with the Group against which orders for purchase of products are _ placed by the customers. Based on these orders, supply is maintained by the Group and revenue is recognised when the goods are delivered to the customer by adjusting the advance from customers. Group also extend volume/slab based discounts to its customers on contract to contract basis for upliftment of products and it is adjusted in revenue as per the terms of the contract. Group also runs loyalty programmes and incentive schemes for its retail and bulk customers. Loyalty points are generated and accumulated by the customers on doing transactions at Group's outlet which can be redeemed subsequently for fuel purchases from Group outlets. Revenue is recognised net of these loyalty points and incentive schemes. Beside this, though not significant, Group also undertakes construction contracts on deposit basis. Revenue is recognised for these contracts on input based on cost incurred. Similarly non-refundable deposits received from Retail Outlets (ROs) are recognised as revenue over time.
|877| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Bifurcation of Total Revenue into Revenue from contract with customers and other sources of revenue as per requirement of Ind AS is given below; ` in Crore March 31, 2019, March 31, 2018 Total Revenue (A+E) 6,17,242.84 5,15,541.89 Revenue from contract with customers (A) 6,09,708.88 5,08,085.25 Recognised from contract liability balance of previous year (B) 2,896.82 2,498.22 Recognised from performance obligation satisfied in previous years (C) — — Recognised from contracts initiated in current year (D) 6,06,812.06 5,05,587.03 Revenue from other contracts/from others (E) 7,533.96 7,456.54 An amount of ` 58.67 crore (2018: ` 25.30 crore) on account of impairment losses on receivables is recognised under Provision for Doubtful Debts, Advances, Claims, CWIP, Stores etc. (Refer Note 29.1) The Group disclose information on reportable segment as per Ind AS 108 under Note 39 - Segmental Information. An amount of ` 108.82 crore is recognised over time under Revenue from contract with customers. Receivables Contract Asset Contract Liability Opening Balance 11,351.57 — 4,253.22 Closing Balance 16,575.70 — 4,729.56 The performance obligation is part of the contract and the original expected duration is one year or less in case of delivered sales, advance from customers. In case of construction contracts/deposit works, the Company has a right to consideration from customer that correspond directly with the value of the entity's performance completed for the customer. Revenue in cases of performance obligation related to delivered sales and advance from customers are recognised in time based on delivery of identified and actual goods and no significant judgement is involved. Revenue in case of construction contracts /deposit works are recognised over time using input based on cost incurred. Revenue in case of Non Refundable RO Deposit is recognised on .time proportion basis. Indian Accounting Standard (Ind AS)-115 "Revenue from Contracts with Customers" became effective from April 1, 2018 and the Group has adopted the same using cumulative catch-up transition method. This adoption has reduced Revenue from Operation for the current year by ` 25.37 crore. 22. INDIAN TOBACCO COMPANY LIMITED Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of returns and discounts to customers. Revenue from the sale of goods is shown to include excise duties and National Calamity Contingent Duty which are payable on manufacture of goods but excludes taxes such as Value Added Tax and Goods and Services Tax which are payable in respect of sale of goods and services. Revenue from the sale of goods and services is recognised when the Group performs its obligations to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in case of sale of goods is when the control over the same is transferred to the customer, which is mainly upon delivery and in case of services, in the period in which such services are rendered.
|878| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Disclosure 22B. Gross revenue from sale of products and services *@ FMCG – Cigarettes etc. 22913.27 24848.09 – Branded Packaged Food Products 9670.99 8667.43 – Others (Apparel, Education and Stationery Products, Personal Care Products, Safety Matches, Agarbattis, etc.) 2846.08 2671.88 Hotels – Hotels Sales/Income from Hotel Services 1728.15 1480.02 Agri Business – Unmanufactured Tobacco 1593.61 1538.52 – Other Agri Products and Commodities (Wheat, Soya, Spices, Coffee, Aqua, etc.) 4481.69 2935.70 Paperboards, Paper and Packaging – Paperboards and Paper 3710.32 3212.12 – Printed Materials 520.08 483.29 Others – Others 1884.24 1525.46 TOTAL 49348.43 47362.51 * Net of sales returns and damaged stocks. @ Also refer to the note in the ‘Consolidated Statement of Profit and Loss’. 23. INTERGLOBE AIRWAYS LIMITED (INDIGO) With effect from 1 April 2018, the Group has adopted Ind AS 115, ‘Revenue from Contracts with Customers’ using cumulative effect method which does not require comparative information to be restated in the financial statements. The standard is applied retrospectively only to contracts that were not completed as at the date of initial application (i.e. 01 April 2018). Under Ind AS 115, revenue is recognised upon transfer of control of promised goods or services to customers. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, incentives, performance bonuses, price concessions, amounts collected on behalf of third parties, or other similar items, if any, as specified in the contract with the customer. Revenue from bundled contracts is recognized separately for each performance obligation based on stand-alone selling price. Revenue is recorded provided the recovery of consideration is probable and determinable. Passenger and cargo services Passenger revenue is recognised on flown basis i.e. when the service is rendered, net of discounts given to the passengers, amount collected on behalf of third parties, applicable taxes and airport levies such as passenger service fee, user development fee, etc., if any. Cargo revenue is recognised when service is rendered i.e. goods are transported, net of discounts, amount collected on behalf of third parties, airport levies and applicable taxes. Fees charged for cancellation of flight tickets are recognised as revenue on rendering of the said service.
|879| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers The Group recognizes an expected breakage amount as revenue in proportion to the pattern of rights exercised by the customer. Breakage revenue represents the amount of unexercised rights of customers which are non-refundable in nature. The consideration from sale of tickets not yet flown is credited to unearned revenue i.e. ‘Forward Sales’ disclosed under other current liabilities. The unutilized balance in Forward Sales for more than a year is recognised as revenue based on historical statistics, data and management estimates and considering the Group’s cancellation policy. In flight sales Revenue from sale of merchandise and food and beverages is recognised on transfer of goods to passengers, net of applicable taxes. Tours and packages Income and related expense from sale of tours and packages are recognised upon services being rendered and where applicable, are stated net of discounts and applicable taxes. The income and expense are stated on gross basis. The sale of tours and packages not yet serviced is credited to unearned revenue, i.e. ‘Forward Sales’ disclosed under other current liabilities. Government grants Government grants are recognised where there is reasonable assurance that the grants will be received and all attached conditions will be complied with. The Group has recognised the assistance received from government under the head ‘other income’ in the Statement of Profit or Loss. Interest income Interest income on financial assets (including deposits with banks) is recognised using the effective interest rate method on a time proportionate basis. Claims and other credits - non-refundable Claims relate to reimbursement towards operational expenses such as operating lease rentals, aircraft repair and maintenance, etc., are adjusted against such expenses over the estimated period for which these reimbursements pertains. When credits are used against purchase of goods and services such as operating lease rentals, aircraft repair and maintenance, etc., these are adjusted against such expenses on utilization basis. The claims and credits are netted off against related expense arising on the same transaction as it reflects the substance of transaction. Further, any claim or credit not related to reimbursement towards operational expenses or used for purchase of goods and services are recognised as income in the Consolidated Statement of Profit and Loss when a contractual entitlement exists, the amount can be reliably measured and receipt is virtually certain. 24. JUBILANT FOODWORKS LIMITED Effective April 1, 2018, the group adopted Ind AS 115 “Revenue from Contracts with Customers” using the cumulative catch up transition method, applied to contracts that were not completed as of April 1, 2018. In accordance with the cumulative catch-up transition method, the comparatives have not been retrospectively adjusted. The effect on adoption of Ind AS 115 is insignificant. Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Sale of manufacture goods The group recognises revenue from sale of food through group’s owned stores and are recognised when the items are delivered to or carried out by customers. Customer’s payments are generally due at the time of sale.
|880| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Sale of traded goods The parent company recognises revenue from sale of supplies to its franchised stores upon delivery or shipment of the related products, based on shipping terms and payments for supplies are generally due within 90 days of the shipping date. Revenue is measured based on the consideration to which the group expects to be entitled from a customer, net of returns and allowances, discounts, volume rebates and cash discounts and excludes sales taxes or Value added tax or Goods and Service Tax collected from customer and remitted to the appropriate taxing authorities and are not reflecting in the Statement of Profit and Loss as “Revenue”. Interest Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividends Revenue is recognised when the right to receive the payment is established by the balance sheet date. Franchisee Fee (Sub-franchisee income) Franchisee fee is based on a percentage of franchise retail sales and are recognised when the items are delivered to or carried out by franchisees’ customers, on accrual basis in accordance with the terms of the relevant agreement. Store opening fees and area development fee received from international sub-franchisees are recognised as revenue on a straight-line basis over the term of respective franchise store agreement by the parent company. Fee received in excess of revenues are classified as contract liabilities (which we refer to as unearned income). 25. JUST DIAL LIMITED Accounting Policy 2.5 Revenue from Contract with customers Effective April 01, 2018, the Group has applied Ind AS 115 which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction Contracts. The group has adopted Modified Retrospective approach for transition to Ind AS 115 i.e. the standard is applied retrospectively only to contracts that are not completed as at the date of initial application and the comparative information in the statement of profit and loss is not restated – i.e. the comparative information continues to be reported under Ind AS 18. Revenue from contracts with customers is recognised when control over services are transferred to the customer at an amount that reflects the consideration to which the group expects to be entitled in exchange for those services. The group has generally concluded that it is the principal in its revenue arrangements, because it typically controls the services before transferring them to the customer. Cost to obtain a contract The group pays to its employees for each contract that they obtain. The group has elected to defer the expense (included under employee benefits) over the duration of contract based on which the revenue is deferred. Income from sale of search related services Revenues from tenure based contracts are recognised pro-rata over the contract period. Revenue from lead based contracts are recognised when leads are provided to the customer.
|881| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Income from sale of software services Revenue from sale of software licences is recognised when risks and rewards of ownership have been transferred. Revenue from hosting and related services fees are accrued over the expected tenure of customer churn period. Revenue from software subscription licence is recognised in the period in which services are rendered. When other services are provided in conjunction with the sale of software licences and reliable evidence of fair value has been established, the revenue from such contracts are allocated to each component of the contract at its fair value in accordance with principles given in Ind AS 115. Income from website services Revenue from website development is recognised on delivery of website and maintenance revenue is recognised over the period tenure of the contract. When other services are provided in conjunction with the sale of website maintenance and development services and reliable evidence of fair value has been established, the revenue from such contracts are allocated to each component of the contract at its fair value in accordance with principles given in Ind AS 18. Income from Other Operating revenue Revenue from sale of review and rating certification services are recognised at the time of issuance of certificate to the customer. Transaction service fee and commission income on search plus services is recognised in the period in which services are rendered or delivered. 2.23 Changes in accounting policies and disclosures New and amended standards The group applied Ind AS 115 for the first time. The nature and effect of the changes as a result of adoption of these new accounting standards are described below. Ind AS 115 Revenue from Contracts with Customers Ind AS 115 supersedes Ind AS 11 Construction Contracts and Ind AS 18 Revenue and it applies, with limited exceptions, to all revenue arising from contracts with customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. Effective April 01, 2018, the Group adopted Ind AS 115, using modified retrospective approach as the method of adoption. Under this method, the standard can be applied either to contracts either at the date of initial application or only to contracts that are not completed at this date. The Group elected to apply this standard to all contracts as at April 01, 2018. The cumulative effect of initially applying Ind AS 115 is recognised at the date of the initial application as an adjustment to the opening balance of retained earnings. Therefore, the comparative information was not restated and continues to be reported under Ind AS 18 There is no effect of adoption of Ind AS 115 on revenue recognised for the earlier years. With adoption of Ind AS 115, employee incentive cost, which are in the nature of cost to obtain contract are amortised over the period of time of group’s transfer of services to customer.
|882| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Accordingly ` 1,609 lakhs, net of tax are debited to retained earnings as at April 01, 2018. Due to change, employee benefit expenses for the year ended is lower by ` 1,235 lakhs, Income tax expense is higher by ` 432 lakhs and Profit after tax is higher by ` 803 lakhs vis-à-vis the amount if existing standards were applicable. The basic and diluted earnings per share for the year is ` 30.96 and ` 30.89 per share respectively, instead of ` 29.76 and ` 29.69 per share respectively. Disclosure 18. REVENUE FROM CONTRACTS WITH CUSTOMERS I) Disagreggated revenue Information (` in lakhs unless otherwise stated) For the year ended March 31, 2019 For the year ended March 31, 2018 Sale of search related services 87,572 76,778 Sale of software and website services 639 791 Sale of review and rating certification services 754 427 Transaction fees and commission income on search plus services 185 181 Total revenue from contract with customers 89,150 78,177 Timing of revenue recognition Services delivered at a point of time 1,251 1,124 Services provided over period of time 87,899 77,053 89,150 78,177 II) Contract balances (` in lakhs unless otherwise stated) (` in lakhs unless otherwise stated) March 31, 2019 March 31, 2018 Contract liabilities 40,544 33,296 Contract liabilities are primarily deferred revenue against which amount has been received but services are yet to be rendered on the reporting date either in full or parts. Contract liabilites are recognised evenly over the tenure of contract, being performance obligation of the Company. Changes in contract liabilities balances (` in lakhs unless otherwise stated) Particulars March 31, 2019 March 31, 2018 At the beginning of the year 33,296 27,430 Additions during the year 96,398 84,043 Revenue recognised during the period (89,150) (78,177) At the end of the year 40,544 33,296 III) Performance obligation 1. Search related services The performance obligation for Search related services is satisfied after the provision of services over the period of contract.
|883| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers 2. Software and website services The performance obligation for website development is satisfied on delivery of software and first time hosting and related services is satisfied over the tenure of contract. 3. Review and rating certification The performance obligation is satisfied at the time of delivery of certificate to the customer. 4. Transaction service fee The performance obligation is satisfied after the services are rendered on which the fees are levied. The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) as at March 31, are as follows: (` in lakhs unless otherwise stated) For the year ended March 31, 2019 For the year ended March 31, 2018 Within one year 37,652 31,993 More than one year 2,892 1,303 40,544 33,296 IV) Cost to obtain contract The Company pays sales incentives to its employees for each contract that they obtain. The Company has elected to defer the expense in the nature of sales incentives (included under employee benefits) over the duration of contract based on which the revenue is deferred. 26. LARSEN & TOUBRO LIMITED a) Significant Accounting Policies (i) Revenue recognition The Group has adopted ind as 115 “Revenue from Contracts with Customers” effective april 1, 2018. ind as 115 supersedesind as 11 “Construction Contracts” and ind as 18 “Revenue”. the Group has applied ind as 115 using the modified retrospective method and the cumulative impact of transition to ind as 115 has been adjusted against the Retained earnings as at april 1, 2018. accordingly, the figures of the previous year are not restated under ind as 115. The Group recognises revenue from contracts with customers when it satisfies a performance obligation by transferring promised goods or service to a customer. the revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Performance obligation is satisfied over time when the transfer of control of good or service to a customeris done over time and in other cases, performance obligation is satisfied at a point in time. For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. the progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation. Transaction price is the amount of consideration to which the Group expects it to be entitled in exchange for transferring goods or services to a customer excluding amounts collected on behalf of a third party. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the transaction price and accounted as interest income. Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in profit & loss immediately in the period in which such costs are incurred. incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.
|884| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts significant judgments are used in: a. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time. Revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. the progress ismeasured in terms of a proportion of actual cost incurred todate, to the total estimated cost attributable to the performance obligation. b. determining the estimated losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date. Revenue for the periods upto June 30, 2017 includes excise duty collected from customers. Revenue from July 1, 2017 onwards is exclusive of Goods and service tax (Gst) which subsumed excise duty. Revenue also includes adjustments made towards liquidated damages and variation wherever applicable. escalation and other claims, which are not ascertainable/acknowledged by customers are not taken into account. A. Revenue from sale of goods including contracts for supply/commissioning of complex plant and equipment is recognised as follows: Revenue from sale of manufactured and traded goods is recognised when the control of the same is transferred to the customer and it is probable that the Group will collect the consideration to which it is entitled for the exchanged goods. Performance obligations in respect of contracts for sale of manufactured and traded goods is considered as satisfied at a point in time when the control of the same is transferred to the customer and where there is an alternative use of the asset or the company does not have either explicit or implicit right of payment for performance completed till date. in case where there is no alternative use of the asset and the company has either explicit or implicit right of payment considering legal precedents, performance obligation is considered as satisfied over a period of time and revenue is recognised over time. B. Revenue from construction/project related activity is recognised as follows: • Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the extent performance obligations have been satisfied. the amount of transaction price allocated to the performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer. • Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents the cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs. Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the company expects to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining performance obligations). in addition, the Group recognises impairment loss (termed as provision for expected credit loss on contract assets in the financial statements) on account of credit risk in respect of a contract asset using expected credit loss model on similar basis as applicable to trade receivables. For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as “due from customers”. For contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contract liability and termed as “due to customers”. amounts received before the related work is performed are disclosed in the Balance sheet as contract liability and termed as “advances from customer”. the amounts billed on customer for work performed and are unconditionally due for payment i.e only passage of time is required before payment falls due, are disclosed in theBalance sheet as trade receivables. the amount of retention money held by the customers pending completion of performance milestone is disclosed as part of contract asset and is reclassified as trade receivables when it becomes due for payment.
|885| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers C. Revenue from construction/project related activity and contracts executed in joint arrangements under work-sharing arrangement [being joint operations, in terms of ind as 111 “Joint arrangements”], is recognised on the same basis as adopted in respect of contracts independently executed by the Group. D. Revenue from property development activities: (i) effective april 1, 2018, Revenue from property development activities is recognised when performance obligation is satisfied, customer obtains control of the property transferred and a reasonable expectation of collection of the sale consideration from the customer exists. the costs incurred on property development activities are carried as “inventories” till such time the aforesaid conditions are fulfilled. (ii) For the periods ended on or before march 31, 2018, the revenue from the property development activities in the nature of a construction contract is recognised based on the ‘Percentage of completion method’ (PoC) when the outcome of the contract can be estimated reliably upon fulfillment of all the following conditions: 1. all critical approvals necessary for commencement of the project have been obtained; 2. contract costs for work performed (excluding cost of land/developmental rights and borrowing cost) constitute atleast 25% of the estimated total contract costs representing a reasonable level of development; 3. at least 25% of the saleable project area is secured by contracts or agreements with buyers; and 4. at least 10% of the total revenue as per the agreements of sale or any other legally enforceable documents is realised at the reporting date in respect of each of the contracts and the parties to such contracts can be reasonably expected to comply with the contractual payment terms. The costs incurred on property development activities are carried as “inventories” till such time the outcome of the project cannot be estimated reliably and all the aforesaid conditions are fulfilled. When the outcome of the project can be ascertained reliably and all the aforesaid conditions are fulfilled, revenue from property development activity is recognised at cost incurred plus proportionate margin, using percentage of completion method. Percentage of completion is determined based on the proportion of actual cost incurred to date to the total estimated cost of the project. For the purpose of computing percentage of construction, cost of land, developmental rights and borrowing costs are excluded. Expected loss, if any, on the project is recognised as an expense in the period in which it is foreseen, irrespective of the stage of completion of the contract E. in the case of the developmental project business and the realty business, revenue includes profit on sale of investment property or sale of stake in the subsidiary and/or joint venture companies as the sale/divestments are inherent in the business model. F. Rendering of services Revenue from rendering of services is recognised over time as and when the customer receives the benefit of the company’s performance and the Company has an enforceable right to payment for services transferred. Unbilled revenue represents value of services performed in accordance with the contract terms but not billed. in respect of information technology (it) business and technology services business, revenue from contracts awarded on time and material basis is recognised over a period of time when relevant services are rendered and related costs are incurred.
|886| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Revenue from fixed price contracts is recognised over a period of time using the proportionate completion method. Revenue from contracts for rendering of engineering design services and other services which are directly related to the construction of an asset is recognised on the same basis as stated in (i) B above. G. Income from interest-bearing loans is recognised on accrual basis over the life of the loans based on the effective yield. income from hire purchase and lease transactions is accounted on accrual basis, pro-rata for the period, at the rates implicit in the transaction. income from bill discounting, advisory and syndication services and other financing activities is accounted on accrual basis. H. Revenue on account of construction services rendered in connection with Build-operate-transfer (Bot) projects undertaken by the Group is recognised during the period of construction using percentage of completion method. after the completion of construction period, revenue relatable to fare/toll collections of such projects from users of facilities is accounted when the amount is due and recovery is certain. license fees for way-side amenities are accounted on accrual basis. I. Commission income is recognised as and when the terms of the contract are fulfilled. J. income from investment management fees is recognised in accordance with the contractual terms and the SEBI regulations based on average assets Under management (aUm) of mutual fund schemes over the period of the agreement in terms of which services are performed. Portfolio management fees are recognised in accordance with the related contracts entered with the clients over the period of the agreement. trusteeship fees are accounted on accrual basis. K. Revenue from port operation services (upto the date of sale) is recognised on completion of respective services or as per terms agreed with the port operator, wherever applicable. L. Revenue from charter hire is recognised based on the terms of the time charter agreement. M. Revenue from operation and maintenance services of power plant receivable under the Power Purchase agreement is recognised on accrual basis. N. other operational revenue represents income earned from the activities incidental to the business and is recognised when the performance obligation is satisfied and the right to receive the income is established as per the terms of the contract. (j) other income A. Interest income on investments and loans is accrued on a time basis by reference to the principal outstanding and the effective interest rate including interest on investments classified as fair value through profit or loss or fair value through other comprehensive income. interest receivable on customer dues is recognised as income in the statement of Profit and loss on accrual basis provided there is no uncertainty towards its realisation. B. dividend income is accounted in the period in which the right to receive the same is established. C. Government grants, which are revenue in nature and are towards compensation for the qualifying costs, incurred by the Group, are recognised as other income in the statement of Profit and loss in the period in which such costs are incurred. Government grant receivable in the form duty credit scrips is recognised as other income in the statement of Profit and loss in the period in which the application is made to the government authorities and to the extent there is no uncertainty towards its receipt. D. Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the group and the amount of income can be measured reliably.
|887| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers b) Notes to Accounts NOTE [34] Revenue from operations Particulars 2018-19 2017-18 ` crore ` crore ` crore ` crore Sales & service: Construction and project related activity 96472.60 83595.78 Manufacturing and trading activity 8116.18 7838.44 Engineering service fees 5172.01 3849.87 Software development products and services 9330.75 7445.55 Income from financing activity/annuity based projects 13009.42 10452.48 Property development activity 2255.75 686.81 Fare collection and related activity 166.49 28.60 Servicing fees 974.85 737.52 Commission 198.45 206.98 Charter hire income 1.27 0.79 Investment/portfolio management and trusteeship fees 618.64 615.56 Fees for operation and maintenance of power plant 2821.67 2628.68 139138.08 118087.06 Other operational income: Income from hire of plant and equipment 4.83 15.73 Lease rentals 194.73 111.02 Property maintenance recoveries 48.48 1.75 Premium earned (net) on related forward exchange contracts 32.76 59.44 Profit on sale of a subsidiary classified under developmental projects segment 415.61 – Profit on sale of investment property 565.60 619.09 Miscellaneous income 607.00 968.01 1869.01 1775.04 141007.09 119862.10 Note [44] Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers”: (a) Disaggregation of revenue into operating segments and geographical areas for the year ended March 31, 2019:
|888| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts ` crore Segment Revenue as per Ind AS 115 Other revenue Total as per Statement of Profit & Loss / Segment report Domestic Foreign Total Infrastructure 53212.17 19095.51 72307.68 110.37 72418.05 Power 2583.78 1383.77 3967.55 3.95 3971.50 Heavy Engineering 964.08 1184.05 2148.13 26.09 2174.22 Defence Engineering 3420.43 331.53 3751.96 – 3751.96 Electrical & Automation 4234.45 1533.30 5767.75 19.06 5786.81 Hydrocarbon 7174.51 7945.69 15120.20 11.38 15131.58 IT & Technology Services 1217.91 13153.45 14371.36 – 14371.36 Financial Services 1135.97 – 1135.97 11501.72 12637.69 Developmental Projects 3521.39 – 3521.39 1546.65 5068.04 Others 4581.92 443.95 5025.87 670.01 5695.88 Total 82046.61 45071.25 127117.86 13889.23 141007.09 (b) Out of the total revenue recognised under Ind AS 115 during the year, ` 109086.70 crore was recognised over a period of time and ` 18031.16 crore was recognised at a point in time. (c) Movement in Expected Credit Loss during the year: Particulars Provision on Trade receivables covered under Ind AS 115 Provision on Contract assets Opening balance as at April 1, 2018 2900.10 121.85 Ind AS 115 transition impact – 780.87 Changes in allowance for expected credit loss: Provision / (reversal) of allowance for expected credit loss 84.34 (195.46) Additional provision (net) 265.62 155.14 Write off as bad debts (249.23) (2.75) Closing balance as at March 31, 2019 3000.83 859.65 (d) Contract balances: (i) Movement in contract balances during the year - ` crore Particulars Contract Assets Contract Liabilities Net contract balances Opening balance as on April 01, 2018 42763.74 24196.28 18567.46 Closing balance as on March 31, 2019 47020.30 28292.15 18728.15 Net Increase 4256.56 4095.87 160.69
|889| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Note: Increase in net contract balances is primarily due to higher revenue recognition as compared to progress bills raised during the year and Ind AS 115 transition adjustment. (ii) Revenue recognised during the year from opening balance of contract liabilities amounts to ` 9724.78 crore. (iii) Revenue recognised during the year from the performance obligation satisfied upto previous year (arising out of contract modifications) amounts to ` 221.00 crore. (e) Cost to obtain the contract : i. Amount of amortisation recognised in Statement of Profit and Loss during the year 2018-19: ` 5.32 crore. ii. Amount recognised as contract assets as at March 31, 2019: ` 30.26 crore. (f) Reconciliation of contracted price with revenue during the year - Opening contracted price of orders as at April 1, 2018* 560785.57 Add: Fresh orders /change orders received (net) 156242.07 Increase due to additional consideration recognised as per contractual terms 5944.08 Increase due to exchange rate movements (net) 2798.27 Less: Orders completed during the year 85624.38 Closing contracted price of orders as at March 31, 2019* 640145.61 Total Revenue recognised during the year 127117.86 Less: Revenue out of orders completed during the year 27545.22 Revenue out of orders under execution at the end of the year (I) 99572.64 Revenue recognised upto previous year (from orders pending completion at the end of the year) (II) 242938.20 Decrease due to exchange rate movements (net) (III) (68.63) Balance revenue to be recognised in future viz. Order book (IV) 297703.40 Closing contracted price of orders as at March 31, 2019* (I+II+III+IV) 640145.61 * including full value of partially executed contracts (g) Remaining performance obligations: The aggregate amount of transaction price allocated to remaining performance obligations and expected conversion of the same into revenue is as follows - ` crore Expected conversion in revenue Total Expected conversion in revenue Upto 1 Year From 1 to 2 years From 2 to 3 years From 3 to 4 years From 4 to 5 years Beyond 5 years Transaction price allocated to the remaining performance obligation 297703.40 116804.46 108730.85 44795.85 16996.20 5926.62 4449.42
|890| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts (h) Disclosure of amount by which Consolidated financial statements are impacted by application of Ind AS 115 as compared to Ind AS 11 and Ind AS 18 - (i) Impact on Balance Sheet: Particulars As per Ind AS 11/ Ind AS 18 as at 31.03.2019 Impact of application of Ind AS 115 Increase/(decrease) After application of Ind AS 115 as at 31.03.2019 Transition impact as at April 1, 2018 For the year 2018-19 Assets 278489.21 1516.73 (871.87) 279134.07 Liabilities 208509.40 2757.11 (1333.35) 209933.16 Total Equity 69979.81 (1240.38) 461.48 69200.91 (ii) Impact on Statement of Profit & Loss: ` crore Particulars For the year 2018-19 As per Ind AS 11/ Ind AS 18 Impact of application of Ind AS 115 Increase/ (decrease) After application of Ind AS 115 Revenue from operations 139725.20 1281.89 141007.09 Manufacturing, construction and operating expenses 98518.70 762.39 99281.09 Employee benefits expense 18130.84 (30.26) 18100.58 Sales, administration and other expenses 7506.39 (204.12) 7302.27 Profit before tax 13827.04 753.88 14580.92 Tax Expenses 4050.94 292.40 4343.34 Profit after tax 9776.10 461.48 10237.58 Non-controlling interest (NCI) in (income)/losses (1306.65) (4.80) (1311.45) Net Profit after tax, non-controlling interest and share in profit of joint ventures/associates 8448.45 456.68 8905.13 Basic earnings per share 60.26 3.25 63.51 Diluted earnings per share 60.15 3.25 63.40 A. Pursuant to adoption of Ind AS 115, the Group recognised impairment loss on contract assets using expected credit loss applied to trade receivables. Impact during transition: Opening total equity as on April 1, 2018 reduced by ` 552.17 crore (net of tax) due to initial recognition of expected credit loss on contract assets with a corresponding increase in deferred tax asset by ` 260.19 crore and reduction in contract assets by ` 812.36 crore. Impact for the year: There is a decrease in sales, administration and other expenses due to reversal of provision for expected credit loss on contract asset resulting in profit after tax being higher by ` 131.90 crore (net of tax) with corresponding increase in contract assets by ` 204.12 crore and reduction in deferred tax asset ` 72.22 crore. Further, there is an increase in Profit after tax due to recognition of contract cost (net) by ` 22.90 crore (net of tax) with a corresponding increase in contract assets by ` 34.85 crore, increase in inventory by ` 0.65 crore, decrease in deferred tax asset by ` 7.82 crore and increase in contract liability by ` 4.78 crore.
|891| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers B. Under Ind AS 115, revenue from realty business is recognised upon delivery of units as against percentage of completion method followed under Ind AS 11. Impact during transition: Opening total equity as on April 1, 2018 reduced by ` 688.21 crore (net of tax) with a corresponding increase in contract liability by ` 2757.11 crore, decrease in contract asset by ` 3.51 crore, increase in inventory by ` 1748.47 crore, decrease in trade receivable by ` 22.02 crore and increase in deferred tax asset by ` 345.96 crore. Impact for the year: Profit after tax during the year is higher by ` 306.68 crore (net of tax) with a corresponding decrease in contract liability by ` 1319.06 crore, decrease in current tax liability by ` 19.07 crore, decrease in inventory by ` 656.66 crore, decrease in trade receivable by ` 148.53 crore, increase in other current asset by ` 5.17 crore and decrease in deferred tax assets by ` 231.43 crore. 27. MAHINDRA LIFESPACE DEVELOPERS LIMITED a) Significant Accounting Policies 2.4 Revenue from Contracts with Customers Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customerreturns, rebates and other similar allowances. 2.4.1 Revenue from Projects i. The Group develops and sells residential and commercial properties. Revenue from contracts is recognised whencontrol over the property has been transferred to the customer. An enforceable right to payment does not arise untilthe development of the property is completed. Therefore, revenue is recognised at a point in time when the legaltitle has passed to the customer and the development of the property is completed. The revenue is measured atthe transaction price agreed under the contract. ii. The Group invoices the customers for construction contracts based on achieving performance-related milestones. iii. For certain contracts involving the sale of property under development, the Group offers deferred payment schemesto its customers. The Group adjusts the transaction price for the effects of the significant financing component. iv. Costs to obtain contracts (“Contract costs”) relate to fees paid for obtaining property sales contracts. Such costsare recognised as assets when incurred and amortised upon recognition of revenue from the related property salecontract. 2.4.2 Revenue from Sale of land and other rights Revenue from Sale of land and other rights is generally a single performance obligation and the Group has determined that this is satisfied at the point in time when control transfers as per the terms of the contract entered into with the buyers, which generally are with the firmity of the sale contracts / agreements. The determination of transfer of control did not change upon the adoption of Ind AS 115 – Revenue from Contracts with Customers. 2.4.3 Revenue from Project Management fees Project Management Fees receivable on fixed period contracts is accounted over the tenure of the contract/ agreement. Where the fee is linked to the input costs, revenue is recognised as a proportion of the work completed based on progress claims submitted. Where the management fee is linked to the revenue generation from the project, revenue is recognised on the percentage of completion basis. The determination of transfer of control did not change upon the adoption of Ind AS 115. 2.4.4 Land Lease Premium Land lease premium is recognized as income upon creation of leasehold rights in favour of the lessee or upon an agreement to create leasehold rights with handing over of possession.
|892| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Property lease rentals, income from operation & maintenance charges and water charges are recognized on an accrual basis as per terms of the agreement with the lessees.. 2.4.5 Dividend and interest income Dividend income from investment in mutual funds is recognised when the unit holder’s right to receive payment has been established. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. b. Use of estimates and judgements In the application of the Group’s accounting policies, which are described in note 2, the management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if the revision affects both current and future periods. Key sources of estimation uncertainty In the process of applying the Group’s accounting policies, management has made the following judgements based on estimates and assumptions, which have the significant effect on the amounts recognised in the financial statements: E. Determination of the timing of revenue recognition On the sale of completed and under development property The Group has evaluated and generally concluded that the recognition of revenue over the period of time criteria are not met owing to non-enforceable right to payment for performance completed to date and, therefore, recognises revenue ata point in time. The Group has further evaluated and concluded that based on the analysis of the rights and obligations under the terms of the contracts relating to the sale of property, the revenue is to be recognised at a point in time when control transfers which coincides with receipt of Occupation Certificate. F. Determination of performance obligations With respect to the sale of property, the Group has evaluated and concluded that the goods and services transferred in each contract constitute a single performance obligation. In particular, the promised goods and services in contracts for the sale of property is to undertake development of property and obtaining the Occupation Certificate. Generally, the Group is responsible for all these goods and services and the overall management of the project. Although these goods and services are capable of being distinct, the Group accounts for them as a single performance obligation because they are not distinct in the context of the contract. a) Notes to Accounts 24 - Revenue from Operations (` in lakh) Particulars For the year ended 31st March, 2019 For the year ended 31st March, 2018 a. Revenue from Contracts with Customers (i) Revenue From Projects 55,695.23 51,944.48 (ii) Project Management Fees 2,150.68 2,853.95
|893| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Particulars For the year ended 31st March, 2019 For the year ended 31st March, 2018 b. Income from Operation of Commercial Complexes 1,437.09 1,820.63 Total 59,283.00 56,619.06 Notes: (1) Contract Balances (a) Amounts received before the related performance obligation is satisfied are included in the balance sheet (Contract liability) as “Advances received from Customers”. Amounts billed for development milestone achieved but not yet paid by the customer are included in the balance sheet under trade receivable in note no. 9 (b) During the year, the Company recognised Revenue of ` 21,136.41 lakhs from opening contract liability (after Ind AS 115 adoption) of ` 45,401.06 lakhs. (c) The contract liability has increased by ` 9,752.45 lakhs due to business combination. (d) There were no significant changes in the composition of the contract liabilities and Trade receivable during the reporting period other than on account of periodic invoicing and revenue recognition. (e) Amounts previously recorded as contract liabilities increased due to further milestone based invoices raised during the year and decreased due to revenue recognised during the year on completion of the construction. (f) Amounts previously recorded as Trade receivables increased due to further milestone based invoices raised during the year and decreased due to collections during the year. (g) There are no contract assets outstanding at the end of the year. (h) The aggregate amount of the transaction price allocated to the performance obligations that are completely or partially unsatisfied as at March 31, 2019, is ` 100,349.15 lakhs. Out of this, the Company expects to recognize revenue of around 60% within the next one year and the remaining thereafter. This includes contracts that can be terminated for convenience with a penalty as per the agreement since, based on current assessment, the occurrence of the same is expected to be remote. (2) Reconciliation of revenue recognised with the contracted price is as follows: Particulars For the year ended 31st March, 2019 Contracted price 55,766.64 Adjustments on account of cash discounts or early payment rebates, etc. 71.41 Revenue recognised as per Statement of Profit & Loss 55,695.23 (3) Contract costs Particulars As at 31st March, 2019 Contract costs included in Prepaid expenses in Note no. 12- Other Assets 1,263.97 (a) The Company incurs commissions that are incremental costs of obtaining a contract with a customer. Previously, all such costs were expensed as and when incurred. Under Ind AS 115, the Company recognises the incremental costs of obtaining a contract as assets under Prepaid Expenses under note no. 12 - Other Assets and amortises it upon completion of the related property sale contract.
|894| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts (b) For the year ended 31 March 2019, amortisation amounting to ` 532.17 lakhs was recognised as Brokerage cost in note no. 26 - Cost of Sales. There were no impairment loss in relation to the costs capitalised. 32 Impact of application of Ind AS 115 Revenue from Contracts with Customers (a) The Ministry of Corporate Affairs vide notification dated 28th March 2018 has made Ind AS 115 “Revenue from Contracts with Customers” (Ind AS 115) w.e.f. 1st April, 2018. The Company has applied the modified retrospective approach as per para C3(b) of Ind AS 115 to contracts that were not completed as on 1st April 2018 and the cumulative effect of applying this standard is recognised at the date of initial application i.e. 1st April, 2018 in accordance with para C7 of Ind AS 115 as an adjustment to the opening balance of Other Equity, only to contracts that were not completed as at 1st April, 2018. The transitional adjustment of ` 21,947.42 lakhs (net of deferred tax) has been adjusted against opening Other Equity based on the requirements of the Ind AS 115 pertaining to recognition of revenue based on satisfaction of performance obligation (at a point in time). (b) For sales of property under development that were recognised on the percentage-of-completion basis under the previous year accounting policy, the Company has determined that they generally do not meet the criteria for recognising revenue over time under Ind AS 115 owing to non-enforceable right to payment from Customer for performance completed to date and, therefore recognises revenue at a point in time. (c) Refer note 2.4 -”Revenue recognition” under Significant accounting policies in the Annual report of the Company, for the revenue recognition policy prior to April 1, 2018. (d) Due to the application of IND AS 115 for the full year ended March 31, 2019, Income from Projects as per Note no. 24 is higher by ` 14,976.24 lakhs, Cost of sales as per Note no. 26 is higher by ` 9,600.00 lakhs, Profit before Tax is higher by ` 9,465.10 lakhs, Tax expense as per Note no. 30(a) is higher by `2,930.38 lakhs and Profit after tax is higher by ` 6,535.72 lakhs. The Basic and Diluted EPS as per Note no. 31 is ` 23.32 and ` 23.27 per share instead of ` 13.67 and ` 13.65 per share. These changes are due to recognition of revenue based on satisfaction of performance obligation (at a point in time), as opposed to the previously permitted percentage of completion method. Accordingly, the comparatives have not been restated for the full year ended March 31, 2018 and hence not comparable. (e) Due to the application of Ind AS 115, Construction Work-in-progress as per Note no.13 is higher by ` 45,338.94 lakhs, Deferred Tax Asset as per Note no. 20 is higher by ` 2,345.54 lakhs, Other Non Current Asset as per Note no. 12 is higher by ` 105.12 lakhs, Other Current Assets as per Note no. 12 is lower by ` 13,877.71 lakhs, Other Equity as per Note no. 16 is lower by ` 7,860.16 lakhs, Trade payable is lower by ` 559.90 lakhs, Provisions as per Note no. 19 is lower by ` 19.33 lakhs and Other Current Liabilities as per Note no. 23 is higher by ` 42,352.94 lakhs as at March 31, 2019. (f) There has been no material impact on the Cash flows Statement as the Company continues to collects from its Customers based on payment plans. Additionally there is no material impact on Other Comprehensive Income on account of Ind AS 115 transition. 28. MATRIMONY.COM LIMITED Significant Accounting Policies a) Revenue from contracts with customers and other income Revenue from contracts with customers is recognised when control of the services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. The following specific recognition criteria must also be met before revenue is recognized: Income from services Revenues from subscriptions towards matrimony service contracts are recognized pro-rata over the period of the contract as and when services are rendered. The Group collects goods & service tax on behalf of the
|895| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Government and, therefore, it is not an economic benefit flowing to the Group. Hence, it is excluded from revenue. Revenue from franchisee services (business license fees) recognised as and when the services are rendered as per the terms of the contract. Revenue from photography service contracts are recognized on the basis of proportionate completion method where the revenue is recognized proportionately with the degree of completion of services, based on management estimates. Revenue from other marriage related services are recognized as and when the services are rendered. Contract Assets A contract asset is the right to consideration in exchange of services transferred to the customer. If the Group performs by transferring services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. trade receivables A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section (q) Financial instruments – initial recognition and subsequent measurement. Contract liabilities A contract liability is the obligation to transfer services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract. Changes in accounting policies and disclosures Ind AS 115 Revenue from Contracts with Customers Ind AS 115 was issued on 28 March 2018 and supersedes Ind AS 18 Revenue and it applies, with limited exceptions, to all revenue arising from contracts with its customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. The Group adopted Ind AS 115 using the full retrospective method of adoption. The effect of the transition on the current period is not significant. Disclosure 18 Revenue from contracts with customers Year ended March 31, 2019 Year ended March 31, 2018 Income from services 40,513.39 38,660.43 Less : taxes collected from customers (5,670.64) (5,115.94) 34,842.75 33,544.49 Disaggregated revenue information
|896| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Year ended March 31, 2019 Year ended March 31, 2018 Set out below is the disaggregation of the Group’s revenue from contracts with customers: Type of service: Match making services 33,577.77 31,907.93 Marriage services 1,264.98 1,636.56 Total revenue from contracts with customers 34,842.75 33,544.49 Geographical revenue: India 29,802.47 28,876.78 Outside India 5,040.28 4,667.71 Total revenue from contracts with customers 34,842.75 33,544.49 Timing of Revenue recognition: Service transferred at a point in time 1,164.14 1,298.94 Services transferred over time 33,678.61 32,245.55 Total Revenue from contracts with customers 34,842.75 33,544.49 Revenue from contracts with customers (Continued) As at March 31, 2019 As at March 31, 2018 As at April 1, 2017 Contract balances Trade receivables 347.99 376.00 215.66 Contract assets - - - Contract liabilities 7,390.30 6,692.86 5,910.48 Contract liabilities include long-term and short-term advances received to deliver subscriptions services. The outstanding balances of these accounts increased due to the continuous increase in the Group’s customer base. As at March 31, 2019 As at March 31, 2018 Set out below is the amount of revenue recognised from: Amounts included in contract liabilities at the beginning of the year 6,538.72 5,713.23 Performance obligations satisfied in previous years - - Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price: Due to Group’s nature of business and the type of contracts entered with the customers, the Group does not have any difference between the amount of revenue recognized in the statement of profit and loss and the contracted price. Performance obligation Information about the Group’s performance obligations are summarised below: Matchmaking services The performance obligation is satisfied over the period of subscription ranging from 1 to 24 months and the payment is collected upfront.
|897| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Marriage services Marriage services consist of Photography services, MatrimonyMandap services and MatrimonyBazaar services. – Photography services The performance obligation is satisfied upon occurrence of the photography event / delivery of video footage or photo album as per the contract with customers. The Group collects some portion of the selling price as an advance which differs from case to case basis, however there are no significant financing component in these contracts. – Matrimony Bazaar services The primary performance obligation under Matrimony bazaar services contract is to provide leads to the contracted customer and the charges per lead is deducted against the advance collected from the customer. The Group also charges a fixed fee for other services provided under the contract for which the performance obligation is satisfied over the period of the contract. There are no significant financing component in these contracts. – Matrimony Mandap Services The performance obligation under Matrimony mandap services contract is to secure booking of mandap and the Group collects commission upon each successful booking. There are no significant return / refund / other obligations for any of the above mentioned services. 29. METROPOLIS HEALTHCARE LIMITED Revenue is recognised at an amount that reflects the consideration to which the Group expects to be entitled in exchange for transferring the goods or services to a customer i.e. on transfer of control of the service to the customer. Revenue from sales of goods or rendering of services is net of indirect taxes, returns and discounts. Effective 1 April 2018 the Group has applied Ind AS 115 which replaces Ind AS 18 revenue recognition. Revenue comprise of revenue from providing healthcare services such as health checkup and laboratory services. Pathology service is the only principal activity and reportable segment from which the Group generates its revenue. Revenue is recognised once the testing samples are processed for requisitioned test, to the extent that it is probable that the economic benefits will flow to the Group and revenue can be reliably measured. Contract liabilities: A contract liability is the obligation to transfer services to a customer for which the Group has received consideration from the customer. If a customer pays consideration before the Group transfers services to the customer, a contract liability is recognised when the payment is made. Contract liabilities are recognised as revenue when the Group performs under the contract. j) Other income Interest income For all debt instruments measured at amortised cost, interest income is recorded using the effective interest rate (EIR). EIR is the rate which exactly discounts the estimated future cash receipts over the expected life of the financial instrument to the gross carrying amount of the financial asset. When calculating the EIR the Group estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayments, extensions, call and similar options); expected credit losses are considered if the credit risk on that financial instrument has increased significantly since initial recognition. Dividend income Dividends are recognised in the statement of profit and loss on the date on which the Group’s right to receive payment is established.
|898| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts 30. OBEROI REALTY a) Significant Accounting Policies 1.2.9 Revenue from contract with customer Revenue from contract with customer is recognised, when control of the goods or services are transferred to the customer, at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for those goods or services. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Group concluded that it is acting as a principal in all of its revenue arrangements. The specific recognition criteria described below must also be met before revenue is recognised. Revenue is recognised as follows: Revenue from Real estate projects The Group recognises revenue, on execution of agreement or letter of allotment and when control of the goods or services are transferred to the customer, at an amount that reflects the consideration (i.e. the transaction price) to which the Group is expected to be entitled in exchange for those goods or services excluding any amount received on behalf of third party (such as indirect taxes). An asset created by the Group’s performance does not have an alternate use and as per the terms of the contract, the Group has an enforceable right to payment for performance completed till date. Hence the Group transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognises revenue over time. The Group recognises revenue at the transaction price which is determined on the basis of agreement or letter of allotment entered into with the customer. The Group recognises revenue for performance obligation satisfied over time only if it can reasonably measure its progress towards complete satisfaction of the performance obligation. The Group would not be able to reasonably measure its progress towards complete satisfaction of a performance obligation if it lacks reliable information that would be required to apply an appropriate method of measuring progress. In those circumstances, the Group recognises revenue only to the extent of cost incurred until it can reasonably measure outcome of the performance obligation. The Group uses cost based input method for measuring progress for performance obligation satisfied over time. Under this method, the Group recognises revenue in proportion to the actual project cost incurred (excluding land cost) as against the total estimated project cost (excluding land cost). The management reviews and revises its measure of progress periodically and are considered as change in estimates and accordingly, the effect of such changes in estimates is recognised prospectively in the period in which such changes are determined. A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional. A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract. A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section 1.2.11 Financial instruments - initial recognition and subsequent measurement. Revenue from hospitality Revenue comprises sale of rooms, food and beverages and allied services relating to hotel operations. Revenue is recognised upon rendering of the service, provided pervasive evidence of an arrangement exists,
|899| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers tariff / rates are fixed or are determinable and collectability is reasonably certain. Revenue from sales of goods or rendering of services is net of indirect taxes, returns and discounts. Revenue from lease Rentals and related income Lease income is recognised in the Statement of Profit and Loss on straight line basis over the lease term, unless there is another systematic basis which is more representative of the time pattern of the lease. Revenue from lease rentals is disclosed net of indirect taxes, if any. Revenue from property management service is recognised at value of service and is disclosed net of indirect taxes, if any. Finance income Finance income is recognised as it accrues using the Effective Interest Rate (EIR) method. Finance income is included in other income in the income statement. When calculating the EIR, the Group estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Dividend Income Revenue is recognised when the Group’s right to receive the payment is established, which is generally when shareholders approve the dividend. Other Income Other incomes are accounted on accrual basis, except interest on delayed payment by debtors and liquidated damages which are accounted on acceptance of the Group’s claim. 1.3 USE OF JUDGEMENTS AND ESTIMATES The preparation of consolidated financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. Estimates and underlying assumptions are reviewed at each reporting date. Any revision to accounting estimates and assumptions are recognised prospectively i.e. recognised in the period in which the estimate is revised and future periods affected. Significant Management Judgements The following are significant management judgements in applying the accounting policies of the Group that have a significant effect on the financial statements. - Revenue recognition of sale of premises Revenue is recognised only when the Group can measure its progress towards complete satisfaction of the performance obligation. The measurement of progress is estimated by reference to the stage of the projects determined based on the proportion of costs incurred to date (excluding land cost) and the total estimated costs to complete (excluding land cost). 1.4 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The Group has adopted with effect from April 01, 2018, Ind AS 115 Revenue from contracts with customers The Group till March 31, 2018 recognised project revenue in accordance with the Guidance Note on “Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable)” issued by the Institute of Chartered Accountants of India (“ICAI”).
|900| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Ind AS 115 was issued on March 28, 2018 and supersedes Ind AS 11 Construction Contracts and Ind AS 18 Revenue along with Guidance Note on “Accounting for Real Estate Transactions” and it applies, with limited exceptions, to all revenue arising from contracts with its customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Group adopted Ind AS 115 using the modified retrospective method of adoption with the date of initial application of April 1, 2018. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at this date. The Group elected to apply the standard to all contracts that are not completed as at April 1, 2018. The cumulative effect of initially applying Ind AS 115 is recognised at the date of initial application as an adjustment to the opening balance of retained earnings. Therefore, the comparative information was not restated and continues to be reported under Ind AS 11 and Ind AS 18 and the requirement of Guidance Note as mentioned above referred to as Previous Ind AS. The effect of adopting Ind AS 115 as at April 1, 2018 is as follows : (` in Lakh) Particulars Reference CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2019 Ind AS 115 Previous Ind AS Increase / (decreases) ASSETS I) Non-current assets a) Property, plant and equipments 19,522.10 19,522.10 - b) Capital work in progress 12,512.52 12,512.52 - c) Investment properties 86,472.37 86,472.37 - d) Intangible assets 164.64 164.64 - e) Intangible assets under development 93.36 93.36 - f) Financial assets i) Investments 2,59,891.48 2,59,891.48 ii) Other financial assets 5 07.87 507.87 - g) Deferred tax assets (net) 1 13,477.65 13,434.17 43.48 h) Other non-current assets 21,639.92 21,639.92 - 4,14,281.91 4,14,238.43 43.48 II) Current assets a) Inventories 1, 2 4,16,547.45 3,80,572.65 35,974.80 b) Financial assets i) Investments 33,883.58 33,883.58 - ii) Trade receivables 10,940.35 10,940.35 - iii) Cash and cash equivalents 9,447.01 9,447.01 - iv) Bank balances other than (iii) above 33,083.81 33,083.81 - v) Loans 26,620.69 26,620.69 - vi) Other financial assets 315.17 315.17 - c) Current tax assets (net) 1,238.73 1,238.73 - d) Other current assets 1 1,66,494.92 2,00,768.78 (34,273.86) 6,98,571.71 6,96,870.77 1,700.94 Total Assets (I + II) 11,12,853.62 11,11,109.20 1,744.42
|901| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Particulars Reference CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2019 Ind AS 115 Previous Ind AS Increase / (decreases) EQUITY AND LIABILITIES I) Equity a) Equity share capital 36,360.23 36,360.23 - b) Other equity 1, 2 7,66,556.82 7,77,081.74 (10,524.92) II) LIABILITIES 8,02,917.05 8,13,441.97 (10,524.92) a) Financial liabilities i) Borrowings 58,851.45 58,851.45 - ii) Trade payables a) Total outstanding dues of micro enterprises and small enterprises 417.18 417.18 - b) Total outstanding dues of creditors other than micro enterprises and small enterprises 1,972.86 1,972.86 - iii) Other financial liabilities i) Capital creditors a) Total outstanding dues of micro enterprises and small enterprises 52.88 52.88 - b) Total outstanding dues of creditors other than micro enterprises and small enterprises 386.42 386.42 - ii) Others 11,245.69 11,245.69 - b) Provisions 196.77 196.77 - c) Deferred tax liabilities (net) 3,082.85 3,082.85 - d) Other non-current liabilities 3,094.12 3,094.12 - ii) Current Liabilities 79,300.22 79,300.22 - a) Financial liabilities i) Borrowings 24,755.88 24,755.88 - ii) Trade payables a) Total outstanding dues of micro enterprises and small enterprises 1,232.61 1,232.61 - b) Total outstanding dues of creditors other than micro enterprises and small enterprises 19,607.32 19,607.32 - iii) Other financial liabilities i) Capital creditors a) Total outstanding dues of micro enterprises and small enterprises 73.38 73.38 - b) Total outstanding dues of creditors other than micro enterprises and small enterprises 2,369.74 2,369.74 -
|902| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Particulars Reference CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2019 Ind AS 115 Previous Ind AS Increase / (decreases) ii) Others 99,284.57 99,284.57 - b) Other current liabilities 1, 2 82,119.32 65,560.38 16,558.94 c) Provisions 82.93 82.93 - d) Current tax liabilities (net) 1 1,110.60 5,400.20 (4,289.60) 2,30,636.35 2,18,367.01 12,269.34 TOTAL LIABILITIES (i to ii) 3,09,936.57 2,97,667.23 12,269.34 Total EQUITY AND LIABILITIES (i to ii) 11,12,853.62 11,11,109.20 1,744.42 (` in Lakh) Particulars Reference CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2019 Ind AS 115 Previous Ind AS Increase / (decreases) INCOME Revenue from operations 1 2,58,249.93 3,59,154.78 (1,00,904.85) Other income 7,874.76 7,874.76 - Total revenue 2,66,124.69 3,67,029.54 (1,00,904.85) EXPENSES Operating costs 1,65,243.25 1,65,243.25 - Changes in inventories 1 (40,524.51) 43,602.97 (84,127.48) Excise duty - - - Employee benefits expense 7,335.43 7,335.43 - Finance cost 1,936.19 1,936.19 - Depreciation and amortisation 4,403.81 4,403.81 - Other expenses 1 10,657.69 12,577.06 (1,919.37) Total expenses 1,49,051.86 2,35,098.71 (86,046.85) Profit before share of profit of joint venture (net) and exceptional item 1,17,072.83 1,31,930.83 (14,858.00) Share of Profit / (Loss) of joint ventures (net) 689.60 689.60 - Profit before tax 1,17,762.43 1,32,620.43 (14,858.00) Tax expense Current tax 1 35,269.21 39,602.29 (4,333.08) Deferred tax 782.87 782.87 - Short provision of tax in earlier years 17.00 17.00 - Profit after tax 81,693.35 92,218.27 (10,524.92) Other comprehensive income
|903| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Particulars Reference CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2019 Ind AS 115 Previous Ind AS Increase / (decreases) Items that will not be reclassified to profit or loss in subsequent years A. Re - measurement gains / (losses) on defined benefit plans 98.57 98.57 - Income tax effect on above (33.10) (33.10) - Share of other comprehensive income in Joint Ventures B. Re - measurement gains / (losses) on defined benefit plans (3.92) (3.92) - Income tax effect on above 1.37 1.37 - Total other comprehensive income/(expenses) for the year net of tax 62.93 62.93 - Total comprehensive income for the year (Comprising profit/(loss) and other comprehensive income for the year) 81,756.27 92,281.19 (10,524.92) Earnings per equity share (face value of ` 10) - Basic (in `) 22.80 25.74 (2.94) - Diluted (in `) 22.80 25.74 (2.94) Footnotes: 1. Under the previous Ind AS revenue was recognised in proportion to the actual cost incurred (including land). Under Ind AS 115, the group elected to recognise revenue in proportion to the construction cost (excluding land). The resulting changes have been recognised in the Statement of Profit and Loss. 2. The Group has opted for modified retrospective approach. In this method Ind AS 115 is applied to all the contracts that are not completed as at April 1, 2018 (being the transition date). Adjustments have been made to the retained earnings by recognising revenue only to the extent of costs incurred, as the relevant projects were in the early stages of development. NOTE 26. REVENUE FROM OPERATIONS March 31, 2019 March 31, 2018 Revenue from contracts with customers (refer note 43) Revenue from projects 2,06,911.28 85,353.40 Revenue from hospitality 13,513.51 12,781.53 Rental and other related revenues 32,337.30 23,383.05 Property management revenues 4,594.40 4,204.42 Other operating revenue 893.44 820.50 2,58,249.93 1,26,542.90
|904| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts NOTE 43. REVENUE FROM CONTRACTS WITH CUSTOMERS 43.1 Revenue from Operations (` in Lakh) Particulars March 31, 2019 March 31, 2018 Revenue from contract with customers as per note 26 2,20,424.79 98,134.93 Add : Customer incentives 5,415.42 - Total revenue as per contracted price 2,25,840.21 98,134.93 43.2 Contract Balances (i) The table that provides information about receivables, contract assets and contract liabilities from contract with customers is as follows: (` in Lakh) Particulars March 31, 2019 Contract assets Trade Receivables 10,940.35 Contract Assets 6,782.00 Contract Liabilities 68,175.34 Total 85,897.69 (ii) Changes in the contract assets balances during the year is as follows: (` in Lakh) Particulars March 31, 2019 Contract Assets Opening Balance* 11,000.26 Less : Transferred to receivables 5,776.87 Add : Revenue recognised net off invoicing 1,558.61 Closing Balance 6,782.00 *includes revenue in excess of billing as on April 1, 2018. (iii) Changes in the contract liabilities balances during the year is as follows: (` in Lakh) Particulars March 31, 2019 Contract Liabilities Opening Balance* 1,78,571.69 Less: Revenue recognized during the year from balance of the beginning of the year (including adjusted in retained earnings) 1,59,054.16 Add : Advance received during the year not recognized as revenue 379.82 Add : Increase due to invoicing net off revenue recognition 48,277.99 Closing Balance 68,175.34 *includes billing in excess of revenue recognised & advances from customers as on April 1, 2018.
|905| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers 43.3 Transaction Price - Remaining Performance Obligation The aggregate amount of transaction price allocated to the unsatisfied (or partially satisfied) performance obligation is ` 2,31,950.69 lakh and the Group expects to recognise revenue in the following time bands: Time Bands Transaction price pertaining to unsatisfied (or partially satisfied) performance obligation 0-1 year - 0-3 years 98,128.40 0-4 years 1,33,822.29 Total 2,31,950.69 43.4 Other Supplementary Information Disclosure in respect of the Guidance Note issued by Institute of Chartered Accountants of India on “Accounting for Real Estate Transactions”. (` in Lakh) Particulars March 31, 2018 For all the project Amount of project revenue recognised as revenue in the reporting period 83,894.65 For project in progress The aggregate amount of costs incurred an profits recognised (Less : recognised losses) to date for project in progress 6,29,637.59 The amount of advance received 763.80 The amount of Work-in-progress and the value of inventories 4,11,585.87 Excess of revenue recognised over actual bills raised (Unbilled revenue) 7,017.09 31. OIL AND NATURAL GAS CORPORATION LIMITED Accounting Policies 3.19 Revenue recognition Effective April 01, 2018, the Group has adopted Ind AS 115 “Revenue from Contracts with customers” using the cumulative catch-up transition method applied to contracts that were not completed as of April 1, 2018. In accordance with the cumulative catch-up transition method, the comparatives have not been retrospectively adjusted. The effect on adoption of Ind AS 115 does not have any significant Impact on the retained earnings as at April 01, 2018 or on these consolidated financial statements. Revenue from contracts with customers is recognized at the point in time the Company satisfies a performance obligation by transferring control of a promised product or service to a customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for the sale of products and service, net of discount, taxes or duties. The transfer of control on sale of crude oil, natural gas and value added products occurs at the point of delivery, where usually the title is passed and the customer takes physical possession, depending upon the contractual conditions. Any retrospective revision in prices is accounted for in the year of such revision. Revenue from service is recognised in the accounting period in which the services are rendered at contractually agreed rates. Sale of crude oil and natural gas (net of levies) produced from Intangible assets under development – Exploratory Wells in Progress / Oil and Gas assets under development – Development Wells in Progress is deducted from expenditure on such wells.
|906| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Any payment received in respect of contractual short lifted gas quantity for which an obligation exists to make-up such gas in subsequent periods is recognised as Contract Liabilities in the year of receipt. Revenue in respect of such contractual short lifted quantity of gas is recognized when such gas is actually supplied or when the customer’s right to make up is expired, whichever is earlier. Revenues from the production of crude oil and natural gas properties, in which the Group has an interest with other producers, are recognized based on actual quantity lifted over the period. Any difference as of the reporting date between the entitlement quantity minus the quantities lifted in respect of crude oil, if positive (i.e. under lift quantity) the proportionate production expenditure is treated as prepaid expenses and, if negative (i.e. over lift quantity), a liability for the best estimate of the Group’s proportionate share of production expenses as per the Joint Operating Agreement (JOA) / Production Sharing Agreement (PSA) is created in respect of the quantity of crude oil to be foregone in future period towards settlement of the overlift quantity of crude oil with corresponding charge to the Statement of Profit and Loss. Revenue is allocated between loyalty programs and other components of the sale. The amount allocated to the loyalty program is deferred, and is recognised as revenue when the Group has fulfilled its obligation to supply the products under the terms of the program or when it is no longer probable that the points under the program will be redeemed. Where the Group acts as an agent on behalf of a third party, the associated income is recognised on a net basis. Revenue in respect of the following is recognized when collectability of the receivable is reasonably assured: (i) Contractual short lifted quantity of gas with no obligation for make-up. (ii) Interest on delayed realization from customers and cash calls from JV partners. (iii) Liquidated damages from contractors/suppliers. As per the Production Sharing Contracts for extracting the Oil and Gas Reserves with Government of India, out of the earnings from the exploitation of reserves after recovery of cost, a part of the revenue is paid to Government of India which is called Profit Petroleum. It is reduced from the revenue from Sale of Products as Government of India’s Share in Profit Petroleum. 20(A) Revenue from operations (` in crore) Particulars For the year ended March 31, 2019 For the year ended March 31, 2019 Sale of products (including excise duty)(1) 20,657 22,051 Income from wind energy 177 162 Total Revenue(2) 20,834 22,213 (1) Sale of products includes excise duty collected from customers of ` Nil (March 31, 2018: ` 437 Crore) (2) Revenue is shown exclusive of GST and other indirect taxes other than excise, as these collection are not an inflow on entity’s own account, rather it is collected on behalf of government authorities. Revenue from sales products for the year ended March 31, 2019 comprises of revenue from contract with customers of ` 21685 Crore and an net loss on mark to market of ` 851 Crore on account of gains/losses relating to sales that were provisionally priced as at March 31, 2018 with the final price settled in the current year, gain/losses relating to sales fully priced during the year, and marked to market gains/losses relating to sales that were provisionally priced as at March 31, 2019. It further includes ` 1125 Crore for which contract liabilities existed at the beginning of the year. Extract of Note 32 “ Other Liabilities” 32.2 Revenue recognised that was included in the contract liability balance at the beginning of the period For the year ended March 31, 2019 Natural gas 1.33
|907| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers 32.3 Transaction price allocated to the remaining performance obligations The following table includes revenue expected to be recognised in the future related to performance obligation that are unsatisfied at the reporting date: As at March 31, 2019 Less than 12 months More than 12 months Natural gas 107.42 236.74 32.4 Significant changes in the contract liability balances during the year are as follows: (` in million) For the year ended March 31, 2019 Balance at the beginning of the year 303.64 Add: Amount received from customers during the year 50.44 Less: MGO Refunded 8.59 Less: Revenue recognised during the year 1.33 Balance at the end of the year 344.16 32.5 In respect of subsidiary OVL, contract liability on gas sales represents amounts received from gas customers against "Take or Pay" obligations under relevant gas sales agreements. The amounts are to be utilized to supply the gas in subsequent year(s). (` in million) For the year ended March 31, 2019 Balance at the beginning of the year 888.54 Add: Amount received from customers during the year 3,345.82 Less: Revenue recognised during the year (1,164.82) Add: Exchange Difference 35.77 Balance at the end of the year 3,105.31 62. Changes in accounting policy – Ind AS 115 In respect of subsidiary OVL, The company has applied Ind AS 115 for the first time using the modified retrospective method for transition with the date of application of April 1, 2018. Comparative of the prior period has not been adjusted. (` in million) Statement of profit and loss (extract) year ended 31 March 2019 31 March 2019 without adoption of Ind AS 115 Increase/ (Decrease) 31 March 2019 as reported Revenue from operations: -Sale of products Crude oil 128,022.18 (4,697.79) 123,324.39 Expenses: Production, transportation, selling & distribution expenditure 48,739.19 (3,634.72) 45,104.47 Current Tax 19,923.77 (1,063.07) 18,860.70
|908| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts In respect of subsidiary HPCL, Disaggregation of revenue (` in million) Particulars 2018-19 2017-18 Exports 27,900.90 17,560.90 Other than export 2,931,967.80 2,416,433.10 2,959,868.70 2,433,994,00 During the year ended March 31, 2019, the company recognized revenue of ` 5,386.90 million arising from opening unearned revenue as of April 1, 2018. This includes the amount pertaining to loyalty points which has been arrived basis the utilization pattern of Loyalty points. Transaction price allocated to the remaining performance obligations The Corporation recognizes revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. As at 31st March 2019, the amount allocated will be recognised as revenue when (a) in case of revenue received in advance, when the product is delivered to the customer, (b) in case of loyalty points, when the award points are redeemed / expires and (c) in case of non-refundable bid fee, over the period of dealership agreement. 32. PC JEWELLER LIMITED Sale of goods Revenue from the contracts with customers is recognised when control of the goods is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods. Sales, as disclosed, are inclusive of excise but are net of trade allowances, rebates, goods and service tax, vat and amounts collected on behalf of third parties. The Group considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, indirect taxes). In respect of contracts with customers that contain a financing component i.e. when payment by a customer occurs significantly before performance and the fair value of goods provided to the customer at the end of the contract term exceeds the advance payments received, interest expense is recognised on recognition of a contract liability over the contract period and is presented under the head finance costs in the statement of profit and loss and total transaction price including financing component is recognised when control of the goods is transferred to the customer. Satisfaction of performance obligations The Group’s revenue is derived from the single performance obligation to transfer primarily gold and diamond products under arrangements in which the transfer of control of the products and the fulfilment of the Group’s performance obligation occur at the same time. Revenue from the sale of goods is recognised when the entity has transferred control of the goods to the buyer and the buyer obtains the benefits from the goods, the potential cash flows and the amount of revenue (the transaction price) can be measured reliably, and it is probable that the entity will collect the consideration to which it is entitled to in exchange for the goods. When either party to a contract has performed, an entity shall present the contract in the balance sheet as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. In respect of sale of goods at prices that are yet to be fixed at the year end, adjustments to the provisional amount billed to the customers are recognised based on the year end closing gold rate.
|909| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Interest and dividend income Interest income is recognised on an accrual basis using the effective interest method. Dividends are recognised at the time the right to receive the payment is established. Other income is recognised when no significant uncertainty as to its determination or realisation exists. Disclosure Note 47: Ind AS 115 - Revenue from Contracts with Customers The Group has adopted Ind AS 115 “Revenue from Contracts with Customers” from 1 April 2018 which resulted in changes in accounting policies and adjustments to the amounts recognised in the financial statements. Ind AS 115: Revenue from Contracts with Customers, establishes a framework for determining whether, how much and when revenue is recognised and requires disclosures about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts. Under Ind AS 115, revenue is recognised through a 5-step approach: (i) Identify the contract(s) with customer; (ii) Identify separate performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations; and (v) Recognise revenue when a performance obligation is satisfied. In accordance with the transition provisions in Ind AS 115, the Group has adopted full retrospective approach. However, there is no impact on the retained earnings as at 01 April 2017 and for the profit for the year ended 31 March 2018. Pursuant to change in accounting policy, the following items have been affecteda). In case of certain contracts with customers, the Group arranges the logistics of the goods to customers’ premises and charges the freight from the customer. In such cases, the Group netted off expense incurred for provision of these services from the freight income forming part of ‘other income’. Now, freight expenses have been grouped under ‘other expenses- miscellaneous’ and the entire amount charged from customer is grouped under ‘other income’. b) For sales made under Jewel for Less scheme, the interest benefit given to customers on the deposits was earlier grouped under ‘other expenses- discount and commission’. Now, this amount has been grouped under ‘finance costs- other finance costs’. The impact of the change in accounting policy on the comparative figures has been given as below: (` in crores) Statement of profit and loss (extract) year ended 31 March 2018 Pre-adoption of Ind As 115 Increase / (decrease) Post-adoption of Ind As 115 Other income Other non operating income 2.28 0.61 2.89 2.28 0.61 2.89 Other expenses Miscellaneous 1.60 0.61 2.21 1.60 0.61 2.21 Other expenses Discount and commission 12.80 (10.59) 2.21 12.80 (10.59) 2.21
|910| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Statement of profit and loss (extract) year ended 31 March 2018 Pre-adoption of Ind As 115 Increase / (decrease) Post-adoption of Ind As 115 Finance costs Other finance costs 39.69 10.59 50.28 39.69 10.59 50.28 There is no impact on the Earning per share (EPS) as result on the adoption of aforementioned adjustment of Ind AS 115. (a) Disaggregation of revenue The Company has performed a disaggregated analysis of revenues considering the nature, amount, timing and uncertainty of revenues. This includes disclosure of revenues by geography. (` in crores) Revenue from operations Year ended 31 March 2019 Year ended 31 March 2018 Revenue by geography Export 1,771.85 3,093.51 Domestic 6,908.11 6,521.93 Total 8,679.96 9,615.44 (b) Revenue recognised in relation to contract liabilities Ind AS 115 also requires disclosure of ‘revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period’ and ‘revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods. Same has been disclosed as below: (` in crores) Description Year ended 31 March 2019 Year ended 31 March 2018 Revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period 15.94 4.57 Revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods - - (c) Assets and liabilities related to contracts with customers (` in crores) As at 31 March 2019 As at 31 March 2018 Description Current Current Contract liabilities related to sale of goods Advance from customers 6.24 18.44 Deferred income - 11.18
|911| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers (d) Reconciliation of revenue recognised in the statement of profit and loss with contract price (` in crores) Description Year ended 31 March 2019 Year ended 31 March 2018 Contract price 9,196.90 9,618.16 Less: Discount, rebates, credits etc. 516.94 2.72 Revenue from operations as per the statement of profit and loss 8,679.96 9,615.44 33. RAYMOND LIMITED The Group derives revenues primarily from sale of manufactured goods, traded goods and related services. The Group has also engaged in real estate property development, recently. Effective 01 April 2018, the Group has adopted Indian Accounting Standard 115 (Ind AS 115) -’Revenue from contracts with customers’ using the cumulative catch-up transition method, applied to contracts that were not completed as on the transition date i.e. 01 April 2018. Accordingly, the comparative amounts of revenue and the corresponding contract assets / liabilities have not been retrospectively adjusted. The effect on adoption of Ind-AS 115 was insignificant. Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. The Group operates a loyalty programme for the customers and franchisees of the Group for the sale of goods. The customers accumulate points for purchases made which entitles them to discount on future purchases. A contract liability for the award points is recognized at the time of the sale. Revenue is recognized when the points are redeemed or on expiry. The expenditure of loyalty programme is netted-off to revenue. The Group recognises provision for sales return, based on the historical results, measured on net basis of the margin of the sale. Therefore, a refund liability, included in other current liabilities, are recognized for the products expected to be returned. The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money. The Group satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met: 1. The customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; or 2. The Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or 3. The Group’s performance does not create an asset with an alternative use to the Group and an entity has an enforceable right to payment for performance completed to date. For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied. Revenue from sale of products and services are recognised at a time on which the performance obligation is satisfied except Revenue from real estate property development where in revenue is recognised over the time from the financial year in which the agreement to sell or application forms (containing salient terms of agreement to sell) is executed. The period over which revenue is recognised is based on right to payment for performance completed. In determining whether an entity has right to payment, the entity shall consider
|912| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts whether it would have an enforceable right to demand or retain payment for performance completed to date if the contract were to be terminated before completion for reasons other than entity’s failure to perform as per the terms of the contract. The revenue recognition of Real estate property under development requires forecasts to be made of total budgeted costs with the outcomes of underlying construction contracts, which further require assessments and judgements to be made on changes in work scopes and other payments to the extent they are probable and they are capable of being reliably measured. However, where the total project cost is estimated to exceed total revenues from the project, the loss is recognized immediately in the Statement of Profit and Loss. Revenue in excess of invoicing are classified as contract asset while invoicing in excess of revenues are classified as contract liabilities. Other operating revenue - export incentives Export Incentives under various schemes are accounted in the year of export. Note 20 - revenue from operations (` in lakhs) Particulars Year ended 31st March, 2019 Year ended 31st March, 2018 Sale of products (i) Manufactured goods 343015.36 311276.66 (ii) Stock-in-trade 285804.99 257295.45 (iii) Revenue from real estate project under development 1999.10 - Sale of services (i) Job work 13755.69 10707.14 (ii) Income from Loyalty participation program 2074.78 2,080.81 (iii) Others 1778.21 800.70 Other operating revenues (i) Export incentives, etc. 6067.44 5481.91 (ii) Process waste sale 3719.59 2957.73 (iii) Others 13.18 40.29 Total 658228.34 590640.69 Group Revenue based on segment comprises of Year ended 31st March, 2019 Textile 315272.52 Shirting 64813.36 Apparel 164746.32 Garmenting 77870.96 Tools & Hardware 40133.20 Auto Components 25879.16 Others 3712.57 Inter Segment revenue (34199.75) Total Revenue from operation 658228.34
|913| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Group Revenue based on Geography year ended 31st March, 2019 India 541544.15 Rest of World 116684.19 Total Revenue from operation 658228.34 Reconcilition of Revenue from operations Year ended 31st March, 2019 Contract price 676030.59 Less:- Sales returns 1003.65 Customer loyalty programme 5375.79 Bonus and incentives 9256.82 Others 2165.99 Total Revenue from operation 658228.34 Unsatisifed performance obligations on long term real estate contracts Revenue is recognized upon transfer of control of products or services to customers. During the year, the Holding Company has entered into long term contracts aggregating ` 21555 lakhs pertaining to real estate development projects. The unsatisfied performance obligation relating to these contracts aggregates to ` 19556 lakhs as at year end. The management of Holding Company expects that 17.77% of the unsatisfied performance obligation amounting to ` 3475 Lakhs pertaining to these long term contracts will be recognised as revenue during the next reporting period with balance in future reporting periods thereafter. Note 43 - transitional provision- ind as 115 revenue from contracts with customers The Group has adopted Ind AS-115, Revenue from Contracts with Customers, from 1st April’2018 which resulted to changes in accounting policies and adjustments to the amount recognized in the consolidated financial statements. In accordance with the transition provisions in Ind AS -115, the Group has adopted the new rules with modified retrospective method. As a results of change in accounting policies, adjustments to the transition provision has been made in respective item as at 1st April’2018 with corresponding Impact to equity net of tax. Details of changes made in item along with equity has given in below table. (` in lakhs) Particulars As at 31st March, 2018 (Reported as per earlier accounting policies) Adjustments [Refer note 1 (i)(r)] As at 1st April, 2018 (Restated numbers) Trade receivables 108590.67 (1417.74) 107172.93 Inventory 161130.81 1153.51 162284.32 Equity 188828.21 (172.88) 188655.33 Deferred Tax Asset 5369.66 58.20 5427.86 Trade Payables 112588.65 33.15 112555.50
|914| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts 34. RELIANCE INFRASTRUCTURE LIMITED Service Concession Accounting Policy The Group manages concession arrangements which include the construction of roads, rails, transmission lines and power plants followed by a period in which the Group maintains and services the infrastructure. This may also include, in a secondary period, asset replacement or refurbishment. These concession arrangements set out rights and obligations relative to the infrastructure and the service to be provided. Under Appendix D to Ind AS 115 – “Service Concession Arrangements”, these arrangements are accounted for based on the nature of the consideration. The financial model/intangible asset model are used when the Group has an unconditional right to receive cash or another financial asset from or at the direction of the grantor for the construction services. For fulfilling those obligations, the Group is entitled to receive either cash from the grantor or a contractual right to charge the users of the service. The consideration received or receivable is allocated by reference to the relative fair values of the services provided; typically: • A construction component • A service element for operating and maintenance services performed As given below, the right to consideration give rises to an intangible asset, or financial asset: • Revenue from the concession arrangements earned under the financial asset model consists of the (i) fair value of the amount due from the grantor; and (ii) interest income related to the capital investment in the project. • Income from the concession arrangements earned under the intangible asset model consists of the fair value of contract revenue, which is deemed to be fair value of consideration transferred to acquire the asset and payments actually received from the users. Accounting of assets under Service Concession Arrangement The Group has Toll Road Concession rights/ Metro Rail / transmission lines and Power Plants Concession Right where it Designs, Builts, Finances, Operates and Transfers (DBFOT) or Built Operates and Transfer (BOT) as the case may be, infrastructure used to provide public service for a specified period of time. These arrangements may include Infrastructure used in a public-to-private service concession arrangement for its entire useful life. These arrangements are accounted for based on the nature of the consideration. The intangible asset model is used to the extent that it receives a right (a license) to charge users of the public service. The financial asset model is used when it has an unconditional contractual right to receive cash or another financial asset from or at the direction of the grantor for the construction services. When the unconditional right to receive cash covers only part of the service, the two models are combined to account separately for each component. If more than one service (i.e., construction or upgrade services and operation services) is under a single contract or arrangement, consideration received or receivable is allocated by reference to the relative fair values of the services delivered, when the amounts are separately identifiable (i) Intangible assets model: Intangible assets arising out of service concession arrangements are accounted for as intangible assets where it has a contractual right to charge users of service when the projects are completed. Apart from above as per the service concession agreement the Group is obligated to pay the amount of premium to National Highways Authority of India (NHAI). This premium obligation has been treated as Intangible asset given it is paid towards getting the right to earn revenue by constructing and operating the roads during the concession period.
|915| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Hence, the total premium payable to the Grantor as per the Service Concession Agreement is also recognized as an ‘Intangible Assets’ and the corresponding obligation for committed premium is recognized as premium obligation. (ii) Financial assets model The financial asset model applies when the operator has an unconditional right to receive cash or another financial asset from the grantor in remuneration for concession services. In the case of concession services, the operator has such an unconditional right if the grantor contractually guarantees the payment of amount specified or determined in the contract or the shortfall, if any, between amounts received from users of public service and amounts specified or determined in the contract. Any asset carried under concession arrangements is derecognized on disposal or when no future economic benefits are expected from its future use or disposal or when the contractual rights to the financial asset expire. Disclosure ` Crore Name of entity Description of the arrangement Significant terms of the arrangement Intangible Assets Financial Asset Gross book value Net book value DA Toll Road Private Limited Financing, design, building and operation of 180 kilometer long six lane toll road between Delhi and Agra on National Highway 2 Period of concession: 2012 – 2038 Remuneration : Toll Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil March 31, 2019 2,459.06 March 31, 2018 1,793.03 March 31, 2019 2,255.17 March 31, 2018 1,675.21 March 31, 2019 15.82 March 31, 2018 34.91 HK Toll Road Private Limited Financing, design, building and operation of 60 kilometer long six lane toll road between Hosur and Krishnagiri on National Highway 7 Period of concession: 2011 - 2035 Remuneration : Toll Investment grant from concession grantor : Nil Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Yes March 31, 2019 1,969.37 March 31, 2018 1,969.37 March 31, 2019 1,814.55 March 31, 2018 1,850.76 March 31, 2019 - March 31, 2018 -
|916| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Name of entity Description of the arrangement Significant terms of the arrangement Intangible Assets Financial Asset Gross book value Net book value KM Toll Road Private Limited Financing, design, building and operation of 71 kilometer long four lane toll road between Kandla and Mundra on National Highway 8A Period of concession: 2011 - 2036 Remuneration : Toll Investment grant from concession grantor : Nil Infrastructure return at the end of concession period : Yes March 31, 2019 1,346.79 March 31, 2018 1,362.51 March 31, 2019 1,266.67 March 31, 2018 1,308.88 March 31, 2019 - March 31, 2018 - Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Yes PS Toll Road Private Limited Financing, design, building and operation of 137 kilometer long six lane toll road between Pune and Satara on National Highway 4 Period of concession: 2010 - 2034 Remuneration : Toll Investment grant from concession grantor : Nil Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Yes March 31, 2019 3,074.04 March 31, 2018 3,074.04 March 31, 2019 2,520.71 March 31, 2018 2,683.86 March 31, 2019 - March 31, 2018 - DS Toll Road Limited Financing, design, building and operation of 53 kilometer long four lane toll road between Dindugal and Samyanallore on National Highway 7 Period of concession: 2006 - 2026 Remuneration : Toll Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil March 31, 2019 388.89 March 31, 2018 388.89 March 31, 2019 253.39 March 31, 2018 281.33 March 31, 2019 - March 31, 2018 -
|917| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Name of entity Description of the arrangement Significant terms of the arrangement Intangible Assets Financial Asset Gross book value Net book value GF Toll Road Private Limited Financing, design, building and operation of 66 kilometer long four lane toll road between Gurgaon and Faridabad and Ballabhgarh Sohna Road. Period of concession: 2009 - 2026 Remuneration : Toll Investment grant from concession grantor : Negative Grant Infrastructure return at the end of concession period : Yes March 31, 2019 771.22 March 31, 2018 771.22 March 31, 2019 624.31 March 31, 2018 660.21 March 31, 2019 - March 31, 2018 - Investment and renewal obligations : Nil Re-pricing dates : Once in 3 years Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil JR Toll Road Private Limited Financing, design, building and operation of 52 kilometer long four lane toll road between Jaipur and Reengus on National Highway 11 Period of concession: 2010 - 2028 Remuneration : Toll Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil March 31, 2019 461.97 March 31, 2018 468.55 March 31, 2019 380.18 March 31, 2018 406.43 March 31, 2019 - March 31, 2018 - NK Toll Road Limited Financing, design, building and operation of 41 kilometer long four lane toll road between Namakkal and Karur on National Highway 7 Period of concession: 2006 - 2026 Remuneration : Toll Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly March 31, 2019 314.60 March 31, 2018 318.87 March 31, 2019 224.62 March 31, 2018 247.95 March 31, 2019 - March 31, 2018 -
|918| Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts Name of entity Description of the arrangement Significant terms of the arrangement Intangible Assets Financial Asset Gross book value Net book value Basis upon which re-pricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil SU Toll Road Private Limited Financing, design, building and operation of 136 kilometer long six lane toll road between Salem and Ulunderput on National Highway 68 Period of concession: 2008 – 2033 Remuneration : Toll Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil March 31, 2019 860.44 March 31, 2018 860.44 March 31, 2019 765.70 March 31, 2018 785.98 March 31, 2019 0.39 March 31, 2018 0.39 TD Toll Road Private Limited Financing, design, building and operation of 87 kilometer long six lane toll road between Trichy and Dindigul on National Highway 45 Period of concession: 2008 – 2038 Remuneration : Toll Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil March 31, 2019 390.66 March 31, 2018 390.66 March 31, 2019 362.50 March 31, 2018 372.31 March 31, 2019 20.72 March 31, 2018 18.93 TK Toll Road Private Limited Financing, design, building and operation of 61 kilometer long six lane toll road between Trichi and Karur on National Highway 67 Period of concession: 2008 – 2038 Remuneration : Toll Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes March 31, 2019 697.10 March 31, 2018 697.10 March 31, 2019 658.22 March 31, 2018 675.22 March 31, 2019 - March 31, 2018 -
|919| Chap. 33 – Ind AS 115 – Revenue from Contracts with Customers Name of entity Description of the arrangement Significant terms of the arrangement Intangible Assets Financial Asset Gross book value Net book value Investment and renewal obligations : Nil Re-pricing dates : Yearly Basis upon which repricing or re-negotiation is determined : Inflation Premium payable to grantor : Nil Mumbai Metro One Private Limited Mumbai Metro Line-1 project of the VersovaAndheri-Ghatkopar corridor for a period of 35 years including the construction period. Period of concession: 2007- 2042 (including 5 years for construction) Remuneration: Passenger fare and revenue from advertisement and rentals Investment grant from concession grantor : Yes Infrastructure return at the end of concession period : Yes Investment and renewal obligations : Nil March 31, 2019 3,360.47 March 31, 2018 3,336.73 March 31, 2019 2,824.57 March 31, 2018 2,912.99 March 31, 2019 - March 31, 2018 - Total March 31, 2019 16,094.61 13,950.59 36.93 Total March 31, 2018 15,431.41 13,861.13 54.23 7 (c) Service Concession Receivables ` Crore Particulars As at March 31, 2019 As at March 31, 2018 Opening balance 54.23 222.82 Accrued interest 2.50 99.03 Scheduled Repayments 39.61 249.87 Unrecovered Financial Assets - 83.76 Addition during the year 19.81 26.05 Transfer to Assets classified as held for sale/discontinued operation - (39.96) Closing balance 36.93 54.23 Grant Receivable from NHAI* Non-current - - Current 36.93 54.23 Total 36.93 54.23 35. S CHAND AND COMPANY LIMITED Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The specific recognition criteria described below must also be met