Mandatory Accounting Standards (Ind AS)-1

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |130| Where the Company is the lessor Leases in which the Company does not transfer substantially all risks and benefits of ownership of the assets are classified as operating lease. Assets subject to operating leases are included in fixed assets. Lease income is recognized in the Statement of Profit and Loss on ongoing basis. Costs, including depreciation are recognized as an expense in the Statement of Profit and Loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the Statement of Profit and Loss. Disclosures i. Rental expenses in respect of operating leases are recognized as an expense in the Statement of Profit and Loss and pre-operative expenditure (pending allocation), as the case may be. Operating Lease (for assets taken on lease) Disclosure for assets taken under non-cancellable leases, where the Company is presently carrying commercial operations is as under, which reflects the outstanding amount for non-cancellable period: (` in crore) Particulars 2016-17 2015-16 Lease payments for the year recognized in Statement of Profit and Loss (including deferred rent portion) 38,312 32,626 Lease payments for the year included in Capital work-in-progress 71 227 Minimum lease payments : Within one year 23,106 19,162 After one year but not more than five years 67,950 54,163 More than five years 40,560 24,690 ii. Rental income/Sub-Lease income in respect of operating leases are recognized as an income in the Statement of Profit and Loss or netted off from rent expense, as the case may be. Operating Lease (for assets given on lease) The Company has given various spaces under operating lease agreements. These are generally cancellable on mutual consent and the lessee can vacate the rented property at any time. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. (` in crore) Particulars 2016-17 2015-16 Sub-lease rent receipts 1,015 1,061 The Company has given spaces of cinemas/food courts under operating lease arrangements taken on lease or being operated under revenue sharing arrangements. The Company has common fixed assets for operating multiplex/giving on rent. Hence separate figures for the fixed assets given on rent are not ascertainable. iii. Finance lease: Company as lessee The Company has finance leases contracts for plant and machinery (Projectors). These leases involve significant upfront lease payment, have terms of renewal and bargain purchase option. However, there is no escalation clause. Each renewal is at the option of lessee. Future minimum lease payments (MLP) under finance leases together with the present value of the net MLP are as follows: (` In lakhs) Particulars March 31, 2017 March 31, 2016 Minimum payments Present value of MLP Minimum payments Present value of MLP Within one year 899 524 813 433 After one year but not more than five years 3,259 2,537 3,145 2,282

|131| Chap. 8 – Ind AS 17 — Leases (` In lakhs) Particulars March 31, 2017 March 31, 2016 More than five years 352 332 642 599 Total minimum lease payments 4,510 3,393 4,600 3,314 Less: amounts representing finance charges (1,117) - (1,286) - Present value of minimum lease payments 3,393 3,393 3,314 3,314 There was no finance lease arrangement for the year ended March 31, 2015. 15. TATA COMMUNICATIONS LIMITED CONSOLIDATED FINANCIAL STATEMENTS Judgments and estimates Significant accounting judgments, estimates and assumptions The preparation of these financial statements in conformity with recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liability as at the date of the financial statement and the reported amounts of income and expense for the period presented. Estimate and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate are revised and future periods are affected. Judgments In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognised in the financial statements. Operating lease commitments – Company as lessor The Company has entered into commercial property leases on its investment property portfolio. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the fair value of the asset, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases. Significant accounting policies The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. The Company enters into agreements for granting IRU of dark fibre capacities to third parties. These arrangements are classified as operating leases as the title to the assets and significant risk associated with the operation and maintenance of these assets remains with the Company. Upfront revenue is received for these arrangements and the same is deferred over the tenure of the IRU agreement. Unearned IRU revenue net of the amount recognizable within one year is disclosed as deferred revenue in non-current liabilities and the amount recognisable within one year is disclosed as deferred revenue in current liabilities. Lessee Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight line basis over the lease term since the payment to the lessor are structured in a manner that the increase is not expected to be in line with expected general inflation. Lessor Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight line basis over the term of the relevant lease.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |132| Leases are classified as finance leases when substantially all of the risks and rewards incidental to ownership of an asset are transferred from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the finance lease. Disclosure 41. Operating lease arrangements Operating lease payments represent rentals payable by the Company for certain buildings and satellite channels. a. As lessee (` in crore) Year ended 31st March 2017 Year ended 31st March 2016 Minimum lease payments under operating leases recognised as expense in the year 12.31 6.42 At the balance sheet date, minimum lease payments under non-cancellable operating leases fall due as follows: (` in crore) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Due not later than one year 18.75 4.31 2.55 Due later than one year but not later than five years 22.73 5.33 1.08 Later than five years 0.59 0.11 - 42.07 9.75 3.63 b. As lessor i. The Company has leased under operating lease arrangements certain IRU with gross carrying amount and accumulated depreciation of ` 87.02 crore (2016: ` 87.02 crore, 2015: ` 87.02 crore) and ` 68.26 crore (2016: ` 62.59 crore, 2015: ` 56.92 crore) respectively as at 31st March, 2017. Depreciation expense of ` 5.67 crore (2016: ` 5.67 crore) in respect of these assets has been charged in the Statement of Profit and Loss for the year ended 31st March, 2017 In case of certain operating lease agreements aggregating ` 429.24 crore (2016: ` 401.35 crore, 2015: ` 391.48 crore) as at 31st March, 2017, the gross block, accumulated depreciation and depreciation expense of the assets given on an IRU basis cannot be identified as these assets are not exclusively leased. The lease rentals associated with such IRU arrangements for the year ended 31st March, 2017 amount to ` 33.50 crore (2016: ` 32.35 crore). In respect of IRU arrangements, rental income of ` 40.36 crore (2016: ` 39.20 crore) has been recognised in the Statement of Profit and Loss for the year ended 31st March, 2017. Future lease rental receipts will be recognised in the Statement of Profit and Loss of subsequent years as follows: (` in crore) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Due not later than one year 41.27 39.81 39.12 Due later than one year but not later than five years 148.48 151.47 153.47 Later than five years 118.67 129.61 157.62 308.42 320.89 350.21

|133| Chap. 8 – Ind AS 17 — Leases ii. The Company has leased certain premises under non-cancellable operating lease arrangements to its wholly owned subsidiaries and associate. Future lease rental income in respect of these leases will be recognised in the Statement of Profit and Loss of subsequent years as follows: (` in crore) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Not later than one year 108.38 74.40 63.18 Later than one year but not later than five years 159.26 204.61 235.36 Later than five years - - - 267.64 279.01 298.54 Lease rental income of ` 94.13 crore (2016: ` 72.79 crore) in respect of the above leases has been recognised in the Statement of Profit and Loss for the current year. Consolidated Financial Statements Disclosure 44. Operating lease arrangements Operating lease payments represent rentals payable by the Group for certain buildings, satellite channels, office equipment, computer equipment, Automatic Teller Machines (ATMs) and ATM related equipment and certain circuit capacities. a. As lessee (` in crore) Year ended 31st March, 2017 Year ended 31st March, 2016 Minimum lease payments under operating leases recognised as expense in the year 479.55 549.19 At the balance sheet date, minimum lease payments under non-cancellable operating leases fall due as follows: (` in crore) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Due not later than one year 308.77 569.79 480.39 Due later than one year but not later than five years 881.12 1,380.70 1,317.80 Later than five years 316.16 722.43 799.18 1,506.05 2,672.92 2,597.37 The minimum future lease payments have not been reduced by minimum operating sub-lease rentals of ` 32.71 crore (2016 and 2015: ` 44.08 crore and ` 29.60 crore) due in the future under non-cancellable sub-leases. ` 9.16 crore (2016 : ` 44.16 crore) was recognised in the current year as minimum sublease rental against the same. b. As lessor i. The Group has leased under operating lease arrangements certain Indefeasible Rights of Use (“IRU”) with gross carrying amount and accumulated depreciation of ` 50.45 crore (2016 and 2015: ` 50.45 crore) and ` 41.80 crore (2016: ` 38.44 crore, 2015: ` 35.07 crore) respectively as at 31 March 2017. Amortisation expense of ` 3.36 crore (2016, 2015: ` 3.36 crore) in respect of these intangibles has been charged in the Consolidated Statement of Profit and Loss for the year ended 31st March, 2017.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |134| In case of certain operating lease agreements aggregating ` 429.24 crore (2016: ` 401.35 crore, 2015: ` 391.48 crore) as at 31 March 2017, the gross block, accumulated depreciation and depreciation expense of the assets given on an IRU basis cannot be identified as these assets are not exclusively leased. The lease rentals associated with such IRU arrangements for the year ended 31st March, 2017 amount to ` 33.50 crore (2016: ` 32.35 crore). In respect of IRU arrangements, rental income of ` 37.45 crore (2016: ` 36.30 crore) has been recognised in the consolidated Statement of Profit and Loss for the year ended 31st March, 2017. Future lease rental receipts will be recognised in the Consolidated Statement of Profit and Loss of subsequent years as follows: (` in crore) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Due not later than one year 38.37 36.91 36.22 Due later than one year but not later than five years 139.80 139.95 141.86 Later than five years 118.53 129.41 154.61 296.70 306.27 332.69 ii. The Group has leased certain premises under non-cancellable operating lease arrangements to its associate. Future lease rental income in respect of these leases will be recognised in the Consolidated Statement of Profit and Loss of subsequent years as follows: (` in crore) As at 31st March, 2017 Not later than one year 101.15 Later than one year but not later than five years 156.86 Later than five years - 258.01 Lease rental income of ` 43.17 crore in respect of the above leases has been recognised in the Consolidated Statement of Profit and Loss for the current year. 45. Finance lease arrangements: as lessee As on 31st March, 2017, assets under finance leases with gross carrying amount and accumulated depreciation of ` 101.12 crore (2016: ` 104.74 crore) and ` 83.33 crore (2016: ` 85.05 crore) respectively, are included in the total Property, Plant & Equipment. The net carrying amount of each class of asset under finance leases is as follows: (` in crore) Gross carrying amount As at 31 March Accumulated depreciation As at 31 March Net carrying amount As at 31 March 2017 2016 2015 2017 2016 2015 2017 2016 2015 Building 32.29 32.91 48.44 14.71 13.73 28.35 17.58 19.18 20.09 Plant and Machinery 63.44 66.33 80.86 63.23 65.82 78.61 0.21 0.51 2.25 Furniture and Fixtures 5.39 5.50 5.19 5.39 5.50 4.72 - - 0.47 101.12 104.74 134.49 83.33 85.05 111.68 17.79 19.69 22.81

|135| Chap. 8 – Ind AS 17 — Leases Finance lease liabilities (` in crore) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Minimum lease payments Not later than one year 6.15 6.28 5.93 Later than one year but not later than 5 years 18.16 24.81 29.35 Later than 5 years - - - Total 24.31 31.09 35.28 Present Value of minimum lease payments Not later than one year 5.17 5.02 4.51 Later than one year but not later than 5 years 16.83 22.45 25.94 Later than 5 years - - - Total 22.00 27.47 30.45 Add: Future finance charges 2.31 3.62 4.83 Total minimum lease payments 24.31 31.09 35.28 16. THE INDIAN HOTELS COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies Operating Lease A Lease in which a significant portion of the risks and rewards of ownership are not transferred to the Company is classified as operating lease. Payments made under operating lease are charged to the Statement of Profit and Loss on a straight line basis over the period of the lease unless the payments are structured to increase in line with the expected general inflation to compensate for the lessor’s expected inflationary cost increases. For leases which include both land and building elements, basis of classification of each element is assessed on the date of transition, April 1, 2015, in accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard. Disclosures In respect of a plot of land provided to the Company under a licence agreement, on which the Company has constructed a hotel, the licensor has made a claim of ` 344.50 crore to date, (13 times the previous annual rental) for increase in the rentals with effect from 2006-07. The Company believes these claims to be untenable. The Company has contested the claim based upon legal advice, by filing a suit in the Hon’ble High Court of Judicature at Bombay on grounds of the licensor’s inconsistent stand on automatic renewal of lease, levy of lease rentals and method of computing such lease rent, within the terms of the existing license agreement as also a Supreme Court judgment on related matters. Even taking recent enactments into consideration, in the opinion of the Company, the computation cannot stretch more than ` 86.36 crore (excluding interest/penalty), and this too is being contested by the Company on merit. Further, a “Notice of Motion” has been issued by the Hon’ble High Court of Judicature at Bombay, inter alia, for a stay against any further proceedings by the licensor, pending a resolution of this dispute by the Hon’ble Bombay High Court. In view of this, and based on legal advice, the Company regards the likelihood of sustainability of the lessor’s claim to be remote and the amount of any potential liability, if at all, is indeterminate. Note 32 : Operating lease The Company has taken certain vehicles, land and immovable properties on operating lease. The lease of hotel properties are generally long-term in nature with varying terms and renewal rights expiring within

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |136| five years to one hunderd & ninety eight years. On renewal, the terms of the leases are renegotiated. The total lease rent paid on the same is included under Rent and Licence Fees forming part of Other Expenses (Refer Note No. 26, Footnote (iv), Page 144). The minimum future lease rentals payable in respect of non-cancellable leases entered into by the Company to the extent of minimum guarantee amount are as follows:— Particulars March 31, 2017 March 31, 2016 April 1, 2015 ` crore ` crore ` crore Not later than one year 54.69 54.84 48.22 Later than one year but not later than five years 201.18 213.30 204.10 Later than five years 1,178.37 1,215.02 1,221.50 1,434.24 1,483.16 1,473.82 In addition, in certain circumstances the Company is committed to making additional lease payments that are contingent on the performance viz. gross operating profits, revenues etc. of the hotels that are being leased Expenses Recognised in the statement of profit and loss: Particulars March 31, 2017 March 31, 2016 ` crore ` crore Minimum Lease Payments/ Fixed Rentals 39.19 37.14 Contingent rents * 88.69 89.50 127.88 126.64 * contingent on the performance viz. gross operating profits, revenues etc. of the hotels that are being leased. 17. VEDANTA LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies Determining whether an arrangement contains lease. At inception of an arrangement, the Company determines whether the arrangement is or contains a lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. Arrangements containing a lease have been evaluate Ind AS on the date of transition i.e. April 1, 2015 in accordance with Ind AS 101 First-time Adoption of Indian Accounting Standards. Lease arrangements including both land and building have been separately evaluated for finance or operating lease at the date of transition to Ind ASs basis the facts and circumstances existing as at that date. Also, Refer Note 55 on First Time Adoption of Ind AS for the related transition provisions. At inception or on reassessment of an arrangement that contains lease, the Company separates payments and other consideration required by the arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Company concludes for a finance lease that is impracticable to separate the payments reliably, then an asset and a liability are recognised at an amount equal to the fair value of the underlying asset; subsequently the liability is reduced as payments are made and an imputed finance cost on the liability is recognised using the Company’s incremental borrowing rate. Company as a lessee A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as finance lease. Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the Statement of

|137| Chap. 8 – Ind AS 17 — Leases Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company’s general policy on the borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term. Operating lease payments are recognised as an expense in the Statement of Profit and loss on a straight line basis over the lease term. Unless the payments are structured to increase in line with general inflation to compensate for the lessor’s expected inflationary cost increase. Company as a lessor Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straightline basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease. Disclosures Leases Operating lease commitments – As lessee The Company is having an operating lease in relation to the office premises, with a non-cancellable lease period of 3 years. There are no restrictions imposed by lease arrangements and there are no sub-leases. There are no contingent rents. The information required with respect to non-cancellable leases are as follow: (` in Crore) Particulars As at March 31, 2017 As at March 31, 2016 As at April 1, 2015 Within one year 0.57 25.90 25.27 Later than one year but not later than five years 1.89 - 21.06 Later than five years - - - Total 2.46 25.90 46.33 18. WIPRO LIMITED CONSOLIDATED FINANCIAL STATEMENTS Significant Accounting Policies The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. The arrangement is, or contains a lease if, fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. Arrangements where the Company is the lessee Leases of property, plant and equipment, where the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at lower of the fair value of the leased property and the present value of the minimum lease payments. Lease payments are apportioned between the finance charge and the outstanding liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |138| Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. Payments made under operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term. Arrangements where the Company is the lessor In certain arrangements, the Company recognizes revenue from the sale of products given under finance leases. The Company records gross finance receivables, unearned income and the estimated residual value of the leased equipment on consummation of such leases. Unearned income represents the excess of the gross finance lease receivable plus the estimated residual value over the sales price of the equipment. The Company recognizes unearned income as finance income over the lease term using the effective interest method. Disclosures Finance lease receivables Finance lease receivables consist of assets that are leased to customers for a contract term ranging from 1 to 7 years, with lease payments due in monthly or quarterly installments. Details of finance lease receivables are given below: As at March 31, 2017 March 31, 2016 April 1, 2015 Gross investment in lease Not later than one year ` 2,060 ` 2,222 ` 3,685 Later than one year and not later than five years 2,725 3,127 3,108 Later than five years - - 73 Unguaranteed residual values 62 62 63 4,847 5,411 6,929 Unearned finance income (319) (413) (569) Net investment in finance receivables ` 4,528 ` 4,998 ` 6,360 Present value of minimum lease receivables are as follows: As at March 31, 2017 March 31, 2016 April 1, 2015 Present value of investment in lease Payments receivables ` 4,528 ` 4,998 ` 6,360 Not later than one year 1,854 2,034 3,419 Later than one year and not later than five years 2,616 2,906 2,826 Later than five years - - 57 Unguaranteed residual values 58 58 58 Included in the consolidated balance sheet as follows: As at March 31, 2017 March 31, 2016 April 1, 2015 Non-current ` 1,854 ` 2,034 ` 3,461 Current ` 2,674 ` 2,964 ` 2,899

|139| Chap. 8 – Ind AS 17 — Leases Assets taken on lease Finance leases: The following is a schedule of present value of minimum lease payments under finance leases, together with the value of the future minimum lease payments as of March 31, 2017, March 31, 2016 and April 1, 2015. As at March 31, 2017 March 31, 2016 April 1, 2015 Present value of minimum lease payments Not later than one year ` 3,623 ` 3,133 ` 1,660 Later than one year and not later than five years 4,657 5,830 3,218 Total present value of minimum lease payments 8,280 8,963 4,878 Add: Amount representing interest 437 578 345 Total value of minimum lease payments ` 8,717 ` 9,541 ` 5,223 Operating leases The Company has taken office, vehicle and IT equipment under cancellable and non-cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. The operating lease agreements extend up a maximum of fifteen years from their respective dates of inception and some of these lease agreements have price escalation clause. Rental payments under such leases were ` 5,953, ` 5,184 and ` 4,727 during the years ended March 31, 2017, March 31, 2016 and April 1, 2015. Details of contractual payments under non-cancellable leases are given below: As at March 31, 2017 March 31, 2016 April 1, 2015 Not later than one year ` 5,040 ` 4,246 ` 3,351 Later than one year and not later than five years 12,976 9,900 6,385 Later than five years 2,760 2,713 2,206 Total ` 20,776 ` 16,859 ` 11,942 Finance lease receivables Leasing arrangements Finance lease receivables consist of assets that are leased to customers for contract terms ranging from 1 to 7 years, with lease payments due in monthly or quarterly installments. Finance leases Obligation under finance lease is secured by underlying assets leased. The legal title of these assets vests with the lessors. These obligations are repayable in monthly, quarterly and yearly installments up to year ending March 31, 2021. The interest rate for these obligations ranges from 1.82% to 17.19%. Operating leases The Company leases office and residential facilities under cancellable and non-cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments under such leases are ` 2,878, ` 2,905 and ` 2,682 during the years ended March 31, 2017, March 31, 2016 and April 1, 2015. ll

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |140| Chapter 9 Ind AS 18 — Revenue from Contracts with Customers 1. ADANI PORTS AND SPECIAL ECONOMIC ZONE LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The specific recognition criteria described below must also be met before revenue is recognized. Port Operation Services Revenue from port operation services/multi-model and transportation service including cargo handling, storage and rail infrastructure are recognized on proportionate completion method basis based on services completed till reporting date. Revenue on take-or-pay charges are recognized for the quantity that is the difference between annual agreed tonnage and actual quantity of cargo handled. The amount recognized as a revenue is exclusive of service tax and education cess where applicable. Income in the nature of license fees/royalty is recognized as and when the right to receive such income is established as per terms and conditions of relevant service agreement. Income from long term leases As a part of its business activity, the Group leases/ sub-leases land on long term basis to its customers. In some cases, the Group enters into cancellable lease/sub-lease transaction, while in other cases, it enters into non-cancellable lease/sub-lease transaction apart from other criteria to classify the transaction between the operating lease or finance lease. The Group recognizes the income based on the principles of leases as set out in Ind AS 17 “Leases” and accordingly in cases where the land lease/sub-lease transaction are cancellable in nature, the income in the nature of upfront premium received/receivable is recognized on operating lease basis i.e. on a straight line basis over the period of lease/sub-lease agreement/date of Memorandum of understanding takes effect over lease period and annual lease rentals are recognized on an accrual basis. In cases where land lease/sub-lease transaction are non-cancellable in nature, the income is recognized on finance lease basis i.e. at the inception of lease/sub-lease agreement/date of memorandum of understanding takes effect over lease period, the income recognized is equal to the present value of the minimum lease payment over the lease period (including non-refundable upfront premium) which is substantially equal to the fair value of land leased/subleased. In respect of land given on finance lease basis, the corresponding cost of the land and development costs incurred are expensed off in the statement of profit and loss. Deferred Infrastructure Usage Income from infrastructure usage fee collected upfront basis from the customers is recognized over the balance contractual period on straight line basis. Development of Infrastructure Assets In case the Group is involved in development and construction of infrastructure assets where the outcome of the project cannot be estimated reasonably, revenue is recognized when all significant risks and rewards

|141| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers of ownership in the infrastructure assets are transferred to the customer and all critical approvals necessary for transfer of the project are received/obtained. Non Scheduled Aircraft Services Revenue from chartered services is recognized when the service is performed under contractual obligations. Utilities Services Revenue is recognized as and when the service performed under contractual obligations and the right to receive such income is established. Delayed payment charges are accounted as and when received. Contract Revenue Revenue from construction contracts is recognized on a percentage completion method, in proportion that the contract costs incurred for work performed up to the reporting date stand to the estimated total contract costs indicating the stage of completion of the project. Contract revenue earned in excess of billing has been reflected under the head “Other Current Assets” and billing in excess of contract revenue has been reflected under the head “Other Current Liabilities” in the balance sheet. Full provision is made for any loss in the year in which it is first foreseen and cost incurred towards future contract activity is classified as project work in progress. Income from fixed price contract Revenue from infrastructure development project/services under fixed price contract, where there is no uncertainty as to measurement or collectability of consideration is recognized based on milestones reached under the contract. Income from SEIS/SFIS Income from Services Exports from India Scheme (‘SEIS’) incentives under Government’s Foreign Trade Policy 2015-20 and Served from India Scheme (‘SFIS’) under Government’s Foreign Trade Policy 2009-14 on the port services income are classified as ‘Income from Port Operations’ and is recognised based on effective rate of incentive under the scheme, provided no significant uncertainty exists for the measurability, realisation and utilisation of the credit under the scheme. The receivables related to SEIS licenses are classified as ‘Other Non Financial Assets’. EXTRACTS FROM INDEPENDENT AUDITORS REPORT Emphasis of Matter Note 42(a) of the accompanying standalone Ind AS financial statements regarding the basis of recognition of certain projects service revenue during the earlier year, as more fully described in the said note. Note 42(a) The Company has entered into preliminary agreement with one of the party for development and maintenance of Liquefied Natural Gas (LNG) terminal infrastructure facilities at Mundra (Mundra LNG Project) vide agreement dated September 30, 2014. The Company had during the quarter ended September 30, 2014, recognised project service revenue of ` 200 crore pending conclusion of definitive agreement towards land reclamation based on the activities completed. Based on the agreement the Company and the party are still in the process of concluding a definitive agreement for Mundra LNG Project relating to development and lease of infrastructure facilities (including lease of land) although land is being made available to the party for setting up the project facilities. The possible adjustments, if any, on execution of definitive agreement will be accounted later although the management does not expect any further adjustments in the books and further, the implementation of Mundra LNG project is progressing as on reporting date. EXTRACTS FROM INDEPENDENT AUDITORS REPORT Significant accounting judgments, estimates and assumptions Proposed sale of Marine Business Operations under the Scheme of Arrangement :

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |142| On February 14, 2017, the Board of Directors of the Company announced its decision to demerge Marine Business operations consisting of piloting and movement of vessels using tugs, berthing and de-berthing of vessels using tugs, marine logistic support services, towage and transhipment within in-land waterways, in coastal waters and sea, through the proposed Scheme of Arrangement to a wholly owned subsidiary. The demerger transaction under the scheme is subject to the approval of creditors, shareholders and National Company Law Tribunal (“NCLT”) and said approvals are pending at year end. Considering the above approvals to be substantive requirements, no adjustment has been made for the accounting treatment proposed in the aforesaid scheme, in the financial statements. Two of the subsidiary entities i.e. Adani Petronet (Dahej) Port Private Limited and Adani Hazira Port Private Limited have also announced their decision to demerge Marine Business Operations of the respective entity as per approval of respective company’s Board of Directors in their meeting held on February 14, 2017 and March 22, 2017 respectively. Pending significant approvals of creditors, shareholders and NCLT, no adjustment has been made for the possible accounting treatment proposed in the aforesaid scheme, in the consolidated financial statements. Carrying value of net assets of the Marine Business Operations of the Company and its subsidiaries as at March 31, 2017 is ` 755.36 crores (excluding borrowings of ` 111.21 crores). Also refer note 44(a). 2. ADANI POWER LIMITED EXTRACTS FROM INDEPENDENT AUDITORS REPORT Basis for Qualified Opinion We draw attention to 1. Note 32(i) to the consolidated Ind AS financial statements regarding the basis on which a subsidiary, Adani Power Maharashtra Limited (“APML”), has continued to recognize total revenue of `2,583.23 crores on account of relief under Force Majeure events/change in law events and additional relief up to 31st March, 2017 (`242.67 crores and `1,103.53 crores recognized during current year and previous year respectively) which is pending adjudication by the relevant regulators, as more fully described in the said Note. Since the matters relating to relief under Force Majeure Events/Change in Law events and additional relief are sub judice, the appropriateness or otherwise, of the continued recognition of such revenue for and up to the period ended 31st March, 2017 and other consequential effects on the financial statements can only be determined on final outcome of the litigations. 2. Note 32(ii) to the consolidated Ind AS financial statements regarding the basis on which a subsidiary, Adani Power Rajasthan Limited (“APRL”), has recognized total revenue of `1,980.92 crores on account of Change in Law events up to 31st March, 2017 (`726.48 crores and `948.52 crores recognized during current year and previous year respectively) which is pending adjudication by the relevant regulators, as more fully described in the said note. Since the matter relating to relief under Change in Law events is sub judice, the appropriateness or otherwise, of the continued recognition of such revenue for and up to the period ended 31st March, 2017 and other consequential effects on the financial statements can only be determined on final outcome of the litigations. Qualified Opinion Except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of the other auditors on separate financial statements of the subsidiaries referred to below in the Other Matters paragraph, and read with our comments in the Emphasis of Matters paragraph below, the aforesaid consolidated Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles

|143| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers generally accepted in India, of the consolidated state of affairs of the Group as at 31st March, 2017, and their consolidated loss, consolidated total comprehensive loss, their consolidated cash flows and consolidated statement of changes in equity for the year ended on that date. NOTE TO ACCOUNTS 32. Revenue from Operations i. Adani Power Maharashtra Limited (“APML”) has under a long term Power Purchase Agreement (“the PPA”) with Maharashtra State Electricity Distribution Company Limited (MSEDCL), committed 1,320 MW capacity from Phase I & II of the Power Plants of the APML at Tiroda, Maharashtra for 25 years, with one of the sources of coal from Lohara Coal Block. Terms of Reference (“TOR”) for Lohara Coal Block was withdrawn on 25th November, 2009 by the Ministry of Environment and Forest (“MOEF”). Subsequently, the MOEF in January 2010 confirmed that Lohara Block will not be considered for environment clearance. Thereafter, the APML sent a notice for termination of the PPA to MSEDCL on 16th February, 2011 and also requested MSEDCL on 11th April, 2012 to return the performance guarantee submitted at the time of bidding. Revenue from Power Supply includes: (a) Relief on account of Change in Law/Force Majeure of ` 110.30 crores for the year ended 31st March, 2017 (` 409.33 crores for the year ended 31st March, 2016 and ` 1,282.37 crores recorded upto 31st March, 2017) recognised based on the order dated 5th May, 2014 of Maharashtra Electricity Regulatory Commission (“MERC”) to compensate the APML for losses suffered due to non-allotment of Lohara coal block/non-availability of coal linkages. In response to appeals filed by customers against the aforesaid order, the Appellate Tribunal for Electricity (“APTEL”) vide its order dated 11th May, 2016 had set aside the MERC order except to the extent that whether the inaccessibility and subsequent deallocation of the Lohara coal block constitute a Force Majeure event or not will be decided by the regular bench of APTEL. (b) Additional relief of ` 132.37 crores for the year ended 31st March, 2017 (` 694.20 crores for the year ended 31st March, 2016 and ` 1,300.86 crores recorded upto 31st March, 2017) recognised pursuant to an order by MERC based on the decision taken by the Cabinet Committee on Economic Affairs and the subsequent amendment to the New Coal Distribution Policy, 2007 (“NCDP”) to compensate the losses suffered due to non-availability of coal linkages/coal under Fuel Supply Agreements. In light of the decision of the Hon. Supreme Court order dated 11th April, 2017, in the case of Adani Power Limited, that the change in NCDP and Tariff Policy constitute Change in Law, APTEL has remanded the matter to MERC for fresh adjudication and to determine the relief that should be granted due to non-availability/shortage of domestic coal, as a Change in Law. ii. Adani Power Rajasthan Limited (“APRL”), under long term Power Purchase Agreement (“the PPA”), has committed 1200 MW capacity with Rajasthan Discoms with a substantially fixed tariff for twenty five years. APRL had made an application to the Rajasthan Electricity Regulatory Commission (“the RERC”) for evolving a mechanism for regulating and revising the power tariff on account of frustration and/or occurrence of “Force Majeure” and/or “Change in Law” events under the PPAs with Rajasthan Discoms, due to change in circumstances for the allotment of domestic coal by the Government of India and the enactment of new coal pricing regulations by Indonesian Government. The RERC vide its order dated 30th May 2014 rejected the consideration of “Force Majeure” and “Change in Law” under the PPA and constituted a committee to recommend Compensatory Tariff (“CT”) in line with the CERC order dated 21st February, 2014 in a similar matter. APTEL vide its order dated 7th April, 2016 set aside the CERC order dated 21 February, 2014 in a similar matter involving its holding parent company, where it decided that the promulgation of Indonesian regulations as also the non-availability/short supply of domestic coal constitute a Force Majeure event as per the terms

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |144| and conditions of the PPA. The APTEL has directed the CERC to assess the extent of impact of Force Majeure event on the project and give such relief as may be available under the respective PPAs. In response to appeals filed by the customers against the said order, the APTEL vide its order dated 11th May, 2016 had set aside the order of the RERC, except to the extent that whether the nonavailability/short supply of domestic coal as also the change in Indonesian coal regulations constitute a Force Majeure event or not and remanded the matter to the RERC. In light of the Hon’ble Supreme Court order dated 11th April, 2017 in the case of Adani Power Limited, Parent Company, that the change in NCDP and Tariff Policy constitute Change in Law, the APRL has filed an affidavit with RERC to grant relief due to non-availability/shortage of domestic coal, as a Change in Law. Revenue from Power Supply includes relief of ` 726.48 crores for the year ended 31st March, 2017 (` 948.52 crores for the year ended 31st March, 2016 and ` 1,980.92 crores recorded upto 31st March, 2017) recognised by APRL based on an order by Rajasthan Electricity Regulatory Commission (RERC) dated 30th May, 2014. As per the assessment by the Management, it would not be unreasonable to expect ultimate collection of an equivalent amount of Relief on account of Change in Law/Force Majeure and Additiional relief as referred in (a), (b) and (ii) above, which is predicated on the legal advice that in case of matters referred in (a) above, the APML has a good arguable case on merits and in case of matters referred in (b) and (ii) above, based on the principles set forth by the Hon. Supreme Court in the similar matter in case of Adani Power Limited in its order dated 11th April, 2017. ACCOUNTING POLICY Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The specific recognition criteria described below must also be met before revenue is recognised. i) Revenue from Power Supply Revenue from Power Supply is recognised on the basis of sales to State Distribution Companies in terms of the Power Purchase Agreements (PPA) or on the basis of sales under merchant trading based on the contracted rates, as the case may be. Such Revenue is measured at the value of the consideration received or receivable, net of trade discounts if any. ii) In case of Udupi Power Corporation Limited (“UPCL”), revenue from sale of power is recognised based on the most recent tariff approved by the CERC, as modified by the orders of Appellate Tribunal for Electricity to the extent applicable, having regard to mechanism provided in applicable tariff regulations and the bilateral arrangements with the customers. iii) Interest income is recognised on time proportion basis. Dividend income from investments is recognised when the shareholder’s right to receive payment has been established provided that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. iv) Delayed payment charges and interest on delayed payment for power supply are recognised on reasonable certainty to expect ultimate collection. Critical judgments in applying accounting policies In the process of applying the Group’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Financial statements. i) Adani Power Maharashtra Limited (“APML”)., a wholly owned subsidiary has continued to recognise revenue on account of Relief on account of Change in Law/Force Majeure and Additional relief,

|145| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers realisation of which is dependent upon outcome of ongoing matter under litigation. The said recognition is based on the assessment by the Management supported by the legal advice received in the above matter that it has a strong case on merits for grant of relief under Change in Law/Force Majeure and Additional relief, and that it would not be unreasonable to expect ultimate collection of revenue in the nature of Relief on account of Change in Law/Force Majeure and Additional relief. ii) Adani Power Rajasthan Limited (“APRL”)., a wholly owned subsidiary has continued to recognize revenue on account of relief, realization of which is dependent upon outcome of ongoing matter under litigation. The said recognition is based on the assessment by the Management supported by the legal advice received in the above matter that it has a strong case on merits for grant of relief, and that it would not be unreasonable to expect ultimate collection of revenue in the nature of relief. 3. ALL CARGO LOGISTICS LIMITED ACCOUNTING POLICY Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. The Group has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to credit risks. Since service tax is tax collected on value added to the service provided by the service provider, on behalf of the government, the same is excluded from revenue. The specific recognition criteria described below must also be met before revenue is recognised. Multimodal transport income Export revenue is recognised on sailing of vessel and import revenue is recognised upon rendering of related services. Container freight station income Income from Container Handling is recognised as and when related services are performed. Income from Ground Rent is recognised for the period the container is lying in the Container Freight Station. However, in case of long standing containers, the income is accounted on accrual basis to the extent of its recoverability. Contract logistic income Contract logistic service charges and management fees are recognised as and when the services are performed as per the contractual terms. Project and equipment income Revenue for project related services includes rendering of end to end logistics services comprising of activities related to consolidation of cargo, transportation, freight forwarding and customs clearance services. Income and fees are recognized on percentage of completion method. Percentage of completion is arrived at on the basis of proportionate costs incurred to date of total estimated costs, milestones agreed or any other suitable basis, provided there is a reasonable completion of activity and provision of services. Income from hiring of equipment’s including trailers cranes etc. is recognised on the basis of actual usage of the equipment’s as per the contractual terms. Vessel operating business In case of vessel operating business, freight and demurrage earnings are recognised on percentage of completion. Charter hire earnings are accrued on time basis. Others Reimbursement of cost is netted off with the relevant expenses incurred, since the same are incurred on behalf of the customers.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |146| Interest income is recognised on time proportion basis. Interest income is included in finance income in the Statement of Profit and Loss. Dividend income is recognised when the Group’s right to receive the payment is established, which is generally when shareholders approve the dividend. Rental income arising from operating leases on investment properties is accounted for on a straightline basis over the lease terms and is included in revenue in the Statement of profit and loss due to its operating nature. Significant accounting judgement and estimates are given below Revenue recognition The Group uses percentage of completion method in accounting of revenue for project division and vessel operating business. Use of the percentage of completion method requires the Group to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Percentage of completion is arrived at on the basis of proportionate costs incurred to date of total estimated costs, milestones agreed or any other suitable basis, provided there is a reasonable completion of activity and provision of services. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date. 4. ATUL LIMITED ACCOUNTING POLICY Revenue Recognition 1. Timing of recognition Revenue from sale of goods is recognised when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, there is no continuing managerial involvement with the goods, the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the activities of the Company. This generally happens upon dispatch of the goods to customers, except for export sales which are recognised when significant risk and rewards are transferred to the buyer as per the terms of contract. Revenue from services is recognised in the accounting period in which the services are rendered. Eligible export incentives are recognised in the year in which the conditions precedent are met and there is no significant uncertainty about the collectability. 2. Measurement of revenue Revenue is measured at the fair value of the consideration received or receivable, after the deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the Government which are levied on sales such as sales tax, value added tax, etc. Revenue includes excise duty as it is paid on production and is a liability of the manufacturer, irrespective of whether the goods are sold or not. Discounts given include rebates, price reductions and other incentives given to customers. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Accumulated experience is used to estimate and provide for the discounts and returns. The volume discounts are assessed based on anticipated annual purchases. No element of financing is deemed present as sales are made with a credit term which is consistent with market practice. Investment and other financial assets 1. Income recognition Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the

|147| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company 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. Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably. 5. BATA INDIA LIMITED ACCOUNTING POLICY 1. Revenue Recognition Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks. Based on the Educational Material on Ind AS 18 issued by the ICAI, the Company has assumed that recovery of excise duty flows to the Company on its own account. This is for the reason that it is a 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 excise duty flows to the Company on its own account, revenue includes excise duty. However, sales tax/ 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 the government. Accordingly, it is excluded from revenue. The specific recognition criteria described below must also be met before revenue is recognised. i. Sale of Goods Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. The Company provides normal warranty provisions for manufacturing defects for 3 months on all its products sold, in line with the industry practice. The Company does not provide any extended warranties to its customers. The Company operates a loyalty points programme “The Bata Club”, which allows customers to accumulate points when they purchase products in the Company’s retail stores. The points can be redeemed against consideration payable for subsequent purchases. Consideration received is allocated between the products sold and the points issued, with the consideration allocated to the points equal to their fair value. Fair value of the points is determined by applying a statistical analysis. The fair value of the points issued is deferred based on actuarial valuation and recognised as revenue when the points are redeemed. ii. Interest For all debt instruments measured at amortised cost, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, similar options)

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |148| but does not consider the expected credit losses. Interest income is included in finance income in the statement of profit and loss. iii. Export Benefits Export benefits in the form of Duty Drawback, Duty Entitlement Pass Book (DEPB) and other schemes are recognized in the Statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of exports made and when there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds. 2. Significant Accounting Judgments, Estimates and Assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. a. Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market change or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur. b.2 Revenue recognition – Loyalty programme The Company estimates the fair value of points awarded under the Loyalty programme “ The Bata Club”, by applying statistical techniques. Inputs to the model include making assumptions about expected redemption rates, the mix of products that will be available for redemption in the future and customer preferences. As points issued under the programme expire on expiry of specified period in accordance with the programme, such estimates are subject to significant uncertainty. As at 31 March 2017, the estimated liability towards unredeemed points amounted to approximately INR 9.02 million (31 March 2016: INR 7.01 million, 1 April 2015: INR 1.21 million). 6. BHARAT FORGE LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Project revenue Contract prices are either fixed or subject to price escalation clauses. Revenues are recognised on a percentage completion method measured by segmented portions of the contract, i.e. “Contract Milestones” achieved. Contract Milestones, in respect of certain contracts, are considered on the basis of physical dispatch which is generally representative of the significant portion of the work done as per the terms and conditions of the contract. The relevant cost is recognised in the financial statements in the year of recognition of revenues. Recognition of profit is adjusted to ensure that it does not exceed the estimated overall contract margin. Contract revenue earned in excess of billing has been included under “Other Current Assets” and billing in excess of contract revenue has been included under “Other Current Liabilities” in the Balance Sheet. If it is expected that a contract will make a loss, the estimated loss would be provided for in the books of account. Such losses are based on technical assessments. If it is expected that a contract will make a loss,

|149| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers the estimated loss is provided for in the books of account. Such losses are based on technical assessments and on management’s analysis of the risks and expenses on a case to case basis. Amounts due in respect of price escalation claims including those linked to published indices and/or variation in contract work are recognised as revenue only if the contract allows for such claims or variations and /or there is evidence that the customer has accepted it and it is probable that these will result in revenue and are capable of being reliably measured. Liquidated damages/penalties are provided for, based on management’s assessment of the estimated liability, as per contractual terms, technical evaluation, past experience and/or acceptance. 7. BHARTI AIRTEL LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue is recognised when it is probable that the entity will receive the economic benefits associated with the transaction and the related revenue can be measured reliably. Revenue is recognised at the fair value of the consideration received or receivable, which is generally the transaction price, net of any taxes, duties, discounts and process waivers. In order to determine if it is acting as a principal or as an agent, the Group assesses whether it has exposure to the significant risks and rewards associated with the sale of goods or the rendering of services. a. Service revenues Service revenues mainly pertain to usage, subscription and activation charges for voice, data, messaging, value added services and broadcasting. It also includes revenue towards interconnection charges for usage of the Group’s network by other operators for voice, data, messaging and signalling services. Usage charges are recognised based on actual usage. Subscription charges are recognised over the estimated customer relationship period or subscription pack validity period, whichever is lower. Activation revenue and related activation costs are amortised over the estimated customer relationship period. However, any excess of activation costs over activation revenue are expensed as incurred. The billing/collection in excess of revenue recognised is presented as deferred revenue in the balance sheet whereas unbilled revenue is recognised in other current financial assets. Certain business’ service revenues include income from registration and installation, which are amortised over the period of agreement since the date of activation of services. Revenues from long distance operations comprise of voice services and bandwidth services (including installation), which are recognised on provision of services and over the period of arrangement respectively. b. Multiple element arrangements The Group has entered into certain multiple element revenue arrangements which involve the delivery or performance of multiple products, services or rights to use assets. At the inception of the arrangement, all the deliverables therein are evaluated to determine whether they represent separately identifiable component basis it is perceived from the customer perspective to have value on standalone basis. Total consideration related to the multiple element arrangements is allocated among the different components based on their relative fair values (i.e., ratio of the fair value of each element to the aggregated fair value of the bundled deliverables). In case the relative fair value of different components cannot be determined on a reasonable basis, the total consideration is allocated to the different components on a residual value method. c. Equipment sales Equipment sales mainly pertain to sale of telecommunication equipment and related accessories. Such transactions are recognized when the significant risks and rewards of ownership are transferred to the

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |150| customer. However, in case of equipment sale forming part of multiple-element revenue arrangements which is not separately identifiable component, revenue is recognised over the customer relationship period. d. Capacity Swaps The exchange of network capacity is recognised at fair value unless the transaction lacks commercial substance or the fair value of neither the capacity received nor the capacity given is reliably measurable. 8. BIOCON LIMITED ACCOUNTING POLICY Revenue recognition i. Sale of goods Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimate reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. The timing of transfers of risks and rewards varies depending on the individual terms of sale. Revenue from the sale of goods includes excise duty and is measured at the fair value of the consideration received or receivable, net of returns, sales tax and applicable trade discounts and allowances. ii. Milestone payments and out licensing arrangements The Company enters into certain dossier sales, licensing and supply arrangements that, in certain instances, include certain performance obligations. Based on an evaluation of whether or not these obligations are inconsequential or perfunctory, we recognise or defer the upfront payments received under these arrangements. The deferred revenue is recognised in the consolidated statement of operations in the period in which we complete our remaining performance obligations. These arrangements typically also consist of subsequent payments dependent on achieving certain milestones in accordance with the terms prescribed in the agreement. Milestone payments which are contingent on achieving certain clinical milestones are recognized as revenues either on achievement of such milestones, if the milestones are considered substantive, or over the period we have continuing performance obligations, if the milestones are not considered substantive. If milestone payments are creditable against future royalty payments, the milestones are deferred and released over the period in which the royalties are anticipated to be paid. iii. Contract research and manufacturing services income In respect of contracts involving research services, in case of ‘time and materials’ contracts, contract research fee are recognised as services are rendered, in accordance with the terms of the contracts. Revenues relating to fixed price contracts are recognised based on the percentage of completion method determined based on efforts expended as a proportion to total estimated efforts. The Group monitors estimates of total contract revenue and cost on a routine basis throughout the contract period. The cumulative impact of any change in estimates of the contract revenue or costs is reflected in the period in which the changes become known. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss. In respect of contracts involving sale of compounds arising out of contract research services for which separate invoices are raised, revenue is recognised when the significant risks and rewards of ownership of the compounds have passed to the buyer, and comprise amounts invoiced for compounds sold. In respect of services, the Group collects service tax as applicable, on behalf of the government and, therefore, it is not an economic benefit flowing to the Group. Hence, it is excluded from revenue.

|151| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers iv. Sales Return Allowances The Group accounts for sales return by recording an allowance for sales return concurrent with the recognition of revenue at the time of a product sale. The allowance is based on Group’s estimate of expected sales returns. The estimate of sales return is determined primarily by the Group’s historical experience in the markets in which the Group operates. v. Dividends Dividend is recognised when the Group’s right to receive the payment is established, which is generally when shareholders approve the dividend. vi. Rental income Rental income from investment property is recognised in statement of profit and loss on a straightline basis over the term of the lease except where the rentals are structured to increase in line with expected general inflation. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. vii. Contribution received from customers/co-development partners towards plant and equipment Contributions received from customers/co-development partners towards items of property, plant and equipment which require an obligation to supply goods to the customer in the future, are recognised as a credit to deferred revenue. The contribution received is recognised as revenue from operations over the useful life of the assets. The Group capitalises the gross cost of these assets as the Group controls these assets. 9. CHAMBAL FERTILISERS ACCOUNTING POLICY (EXTRACTS) xvi) Revenue Recognition Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The following specific criteria must also be met before revenue is recognised: (a) Sale of goods Revenue, including subsidy, in respect of sale of products is recognised when the significant risks and rewards of ownership of the goods are passed on to the buyer. Amounts disclosed as revenue are inclusive of excise duty and net of returns and allowances, trade discounts and rebates. The Company has assumed that recovery of excise duty flows to the Company on its own account. This is for the reason that it is a 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 excise duty flows to the Company on its own account, revenue includes excise duty. The Company collects sales tax and value added tax (“VAT”) on behalf of the government and therefore, these are not economic benefits flowing to the Company. Hence, these are excluded from the revenue. Subsidy on Urea including freight have been accounted on the basis of notified concession prices as under: (i) the New Pricing Scheme – Stage III and New Investment Policy 2008 for the period from April 1, 2015 to May 31, 2015; (ii) New Urea Policy 2015 from June 1, 2015 onwards; and (iii) Uniform Freight Policy

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |152| The concession price and freight is accounted based on notified prices, further adjusted for input price escalation/ de-escalation and as estimated by the management based on the prescribed norms in line with known policy parameters. Subsidy on Phosphatic and Potassic (P&K) fertilizers is recognized as per concession rates notified by the Government of India in accordance with Nutrient Based Subsidy Policy from time to time and Freight subsidy has been accounted for in line with the policy. Subsidy on Gypsum is recognized based on district wise concession rates, as notified by the Government of Rajasthan. Subsidy on City Compost is recognized based on rates, as notified by the Government of India. (b) Income from operations of ships In respect of voyage charter, revenue is recognized on proportionate number of days of respective voyage. In case of time charter (including cost plus charter), revenue is recognized on time proportion basis. Bunker is recognized on actual quantity consumed. Dispatch money/demurrage is considered as part of freight. (e) Insurance claims Claims receivable on account of insurance are accounted for to the extent the Company is reasonably certain of their ultimate collection. 10. CIPLA LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition (i) Sale of Goods and Rendering of Services Revenue is recognised when it is probable that economic benefits associated with a transaction flows to the Group in the ordinary course of its activities and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade discounts, chargebacks and volume rebates allowed by the Group. Accrual for sales returns, chargebacks and other allowances are provided at the point of sale based on past experience. Adjustments to such returns, chargebacks and other allowances are made as new information becomes available. Revenue includes only the gross inflows of economic benefits, including excise duty, received and receivable by the Group, on its own account. Amounts collected on behalf of third parties such as sales tax and value added tax are excluded from revenue. Profit sharing revenues are generally recognized under the terms of a license and supply agreement in the period in which such amounts can be reliably measured and collectability is reasonably assured. Revenue from sale of goods is recognised when the following conditions are satisfied: a. The Group has transferred the significant risks and rewards of ownership of the goods to the buyer. b. The Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over goods sold. c. The amount of revenue can be measured reliably. d. It is probable that the economic benefits associated with the transaction will flow to the Group. e. The costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue resulting from the achievement of milestone events stipulated in agreements is recognised when the milestone is achieved. Milestones are based upon the occurrence of a substantive element specified in the contract or as a measure of substantive progress towards completion under the contract. Other Operating revenue is recognised on accrual basis.

|153| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers 11. DR. REDDY’S LABORATORIES LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Profit share revenues The Company from time to time enters into marketing arrangements with certain business partners for the sale of its products in certain markets. Under such arrangements, the Company sells its products to the business partners at a non-refundable base purchase price agreed upon in the arrangement and is also entitled to a profit share which is over and above the base purchase price. The profit share is typically dependent on the business partner’s ultimate net sale proceeds or net profits, subject to any reductions or adjustments that are required by the terms of the arrangement. Such arrangements typically require the business partner to provide confirmation of units sold and net sales or net profit computations for the products covered under the arrangement. Revenue in an amount equal to the base purchase price is recognised in these transactions upon delivery of products to the business partners. An additional amount representing the profi t share component is recognised as revenue in the period which corresponds to the ultimate sales of the products made by business partners only when the collectability of the profit share becomes probable and a reliable measurement of the profit share is available. Otherwise, recognition is deferred to a subsequent period pending satisfaction of such collectability and measurability requirements. In measuring the amount of profit share revenue to be recognised for each period, the Company uses all available information and evidence, including any confirmations from the business partner of the profit share amount owed to the Company, to the extent made available before the date the Company’s Board of Directors authorises the issuance of its financial statements for the applicable period. Milestone payments and out licensing arrangements Revenues include amounts derived from product out-licensing agreements. These arrangements typically consist of an initial up-front payment on inception of the license and subsequent payments dependent on achieving certain milestones in accordance with the terms prescribed in the agreement. Non-refundable upfront license fees received in connection with product out-licensing agreements are deferred and recognised over the period in which the Company has continuing performance obligations. Milestone payments which are contingent on achieving certain clinical milestones are recognised as revenues either on achievement of such milestones, if the milestones are considered substantive, or over the period the Company has continuing performance obligations, if the milestones are not considered substantive. If milestone payments are creditable against future royalty payments, the milestones are deferred and released over the period in which the royalties are anticipated to be paid. Provision for chargeback, rebates and discounts Provisions for chargeback, rebates, discounts and Medicaid payments are estimated and provided for in the year of sales and recorded as reduction of revenue. A chargeback claim is a claim made by the wholesaler for the difference between the price at which the product is initially invoiced to the wholesaler and the net price at which it is agreed to be procured from the Company. Provisions for such chargebacks are accrued and estimated based on historical average chargeback rate actually claimed over a period of time, current contract prices with wholesalers/other customers and estimated inventory holding by the wholesaler. Shelf stock adjustments Shelf stock adjustments are credits issued to customers to reflect decreases in the selling price of products sold by the Company, and are accrued when the prices of certain products decline as a result of increased competition upon the expiration of limited competition or exclusivity periods. These credits are customary in the pharmaceutical industry, and are intended to reduce the customer inventory cost to better reflect the current market prices. The determination to grant a shelf stock adjustment to a customer is based on the terms of the applicable contract, which may or may not specifi cally limit the age of the stock on which a credit would be offered.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |154| Sales Returns The Company accounts for sales returns accrual by recording an allowance for sales returns concurrent with the recognition of revenue at the time of a product sale. This allowance is based on the Company’s estimate of expected sales returns. The Company deals in various products and operates in various markets. Accordingly, the estimate of sales returns is determined primarily by the Company’s historical experience in the markets in which the Company operates. With respect to established products, the Company considers its historical experience of sales returns, levels of inventory in the distribution channel, estimated shelf life, product discontinuances, price changes of competitive products, and the introduction of competitive new products, to the extent each of these factors impact the Company’s business and markets. With respect to new products introduced by the Company, such products have historically been either extensions of an existing line of product where the Company has historical experience or in therapeutic categories where established products exist and are sold either by the Company or the Company’s competitors. Services Revenue from services rendered, which primarily relate to contract research, is recognised in the consolidated statement of profit and loss as the underlying services are performed. Upfront non-refundable payments received under these arrangements are deferred and recognised as revenue over the expected period over which the related services are expected to be performed. License fee The Company enters into certain dossier sales, licensing and supply arrangements with various parties. Income from licensing arrangements is generally recognised over the term of the contract. Some of these arrangements include certain performance obligations by the Company. Revenue from such arrangements is recognised in the period in which the Company completes all its performance obligations. 12. GVK POWER AND INFRASTRUCTURE LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government. The Group evaluates whether it is acting as a principal or agent in all of its revenue arrangements based on the following criteria: (a) who has the primary responsibility for providing the goods or services to the customer or for fulfilling the order, for example by being responsible for the acceptability of the products or services ordered or purchased by the customer; (b) who has inventory risk before or after the customer order, during shipping or on return; (c) who has latitude in establishing prices, either directly or indirectly, for example by providing additional goods or services; and (d) who bears the customer’s credit risk for the amount receivable from the customer The Company recognises revenue on gross basis when it is determined that the Company is acting as a principal and on net basis when it is determined that the Company is acting as an agent The specific recognition criteria described below must also be met before revenue is recognised.

|155| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers Rendering of services (i) Rendering of operation and maintenance services Revenues represent amounts billed or accrued for services rendered and expenses incurred in relation to such services, in accordance with the Operation and Maintenance agreement with its customer. As per the operations and maintenance agreements, the Holding Company’s income comprises of (a) Operating fees and (b) Reimbursement of actual expenses. Operating fees are linked to generation of electricity including deemed generation and is suect to escalations. (ii) Manpower and consultancy services Revenues for manpower services are recognised as and when services are rendered on time and material basis. (iii) Aeronautical services One of the company in the group company derives its revenues from providing services and facilities to airlines, passengers, other concessionaries and importers, exporters and their agents which mainly comprise of revenues from aeronautical, non aeronautical and cargo services. (i) Revenue from aeronautical services (net of credit notes) includes landing and parking charges, aerobridge charges and user development fee (UDF) at the rates prescribed under State Support Agreement, as amended from time to time by Ministry of Civil Aviation, Government of India (“MoCA”)/Airports Economic Regulatory Authority (”AERA”). Landing, parking and aerobridge charges are recognized, when such services are provided. UDF is recognized in respect of each embarking passenger at a specified rate. Passenger service fees – security component (PSF-SC) collected as per the terms of State Support Agreement and MoCA orders, is not recognized as revenue of the Company since the same is collected in a fiduciary capacity. (ii) Revenue from non-aeronautical services (net of credit notes) consisting of concessions, rentals, public admission fees, hangar charges, car parking rentals, into plane, demurrage on cargo etc., is recognized as per terms of contracts when services are rendered. (iii) Revenue from cargo services (net of credit notes) is recognized as per the terms of the contract in case of concession contracts and for others as and when the related services are rendered. (iv) Income from Toll Operations The revenue is recognised as and when traffic passes through toll - plazas. (vii) Guarantee commission Revenue is recognised on a straight line basis taking into account the present value of the guarantee amount and the commission rate applicable. Uncertainties faced by GVK Energy Limited and its group companies (Jointly controlled entity and its group companies) One of the subsidiaries of GVKEL, has completed construction of 330MW hydro power project with a carrying value of ` 506,768 lakhs as at March 31, 2017 (March 31, 2016: ` 529,882 lakhs). The said Company has filed petitions with Uttar Pradesh Electricity Regulatory Commission (‘UPERC’) for extension of scheduled commercial operation date (‘SCOD’) and approval of additional capital cost to be considered for tariff determination. In the interim UPERC has provisionally determined tariff for the financial year 2014-15 and 2015-16 subject to the aforesaid petitions. The said Company had also filed a review petition with UPERC for revising the provisional tariff since it believes that certain components of the provisional tariff were not determined in accordance with the tariff regulations. UPERC in response to the review petition has stated that it will consider certain objections raised by the said Company during determination of final tariff.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |156| Pending determination of final tariff subsidiary has recorded revenue based on the provisional tariff approved by UPERC. Management based on its internal assessment/legal advice is confident that the aforementioned petitions will be decided in its favour. The Company accordingly believes that investments in the jointly controlled entity amounting to ` 108,323 is recoverable in normal course of business and no provision for diminution is necessary. 13. HAVELLS INDIA LIMITED ACCOUNTING POLICY Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Amounts disclosed are inclusive of Excise Duty, and net of returns, trade discounts, rebates, value added taxes and amount collected on behalf of third parties. The Company assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks. The specific recognition criteria described below must also be met before revenue is recognised: a) Sale of goods Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods and is measured at fair value of consideration received/receivable, net of returns and allowances, discounts, volume rebates and cash discounts. Revenue is usually recognised when it is probable that economic benefits associated with the transaction will flow to the entity, amount of revenue can be measured reliably and entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. b) Rendering of Services Revenue from service related activities is recognised as and when services are rendered and on the basis of contractual terms with the parties. c) Rental Income Rental income arising from operating leases on investment properties is accounted for on a straightline basis over the lease terms and is included in other income in the statement of profit or loss due to its non-operating nature. d) Interest Income Interest Income is recognised on time proportion basis taking into account the amount outstanding and the applicable interest rates and is disclosed in “other income”. 14. HINDUSTAN UNILEVER LIMITED ACCOUNTING POLICY Revenue Recognition Revenue from sale of goods is recognised when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, there is no continuing managerial involvement with the goods and the amount of revenue can be measured reliably. The Company retains no

|157| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. Revenue is measured at fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government which are levied on sales such as sales tax, value added tax, etc. Income from export incentives such as duty drawback and premium on sale of import licenses, and lease license fee are recognised on accrual basis. Income from services rendered is recognised based on agreements/ arrangements with the customers as the service is performed in proportion to the stage of completion of the transaction at the reporting date and the amount of revenue can be measured reliably. Interest income is recognized using the effective interest rate (EIR) method. Dividend income on investments is recognised when the right to receive dividend is established. 15. IDEA CELLULAR INDIA LIMITED ACCOUNTING POLICY Revenue Recognition Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and can be reliably measured, regardless of the timing of receipt of payment. Revenue is measured at fair value of the consideration received or receivable and is reduced for rebates and other similar allowances. Taxes and duties are collected by the seller/service provider to be deposited with the government and not received by the Company on its own account. Accordingly, it is excluded from revenue. The Company evaluates its exposure to significant risks and reward associated with the revenue arrangements in order to determine its position of a principal or an agent in this regard. Service Revenue Revenue on account of telephony services (postpaid and prepaid categories, roaming, interconnect & long distance services) is recognised on rendering of services. Rental revenues in the postpaid category are recognised over the period of rendering of services. Recharge fees on recharge vouchers in case of prepaid category is recognised over the validity of such vouchers. Revenue from other services (internet services, mobile advertisement, revenue from toll free services, etc.) is recognised on rendering of services. Multiple element contracts For revenue arrangements having more than one deliverable, at the inception of the arrangement, the Company evaluates all deliverables in the arrangement to determine whether they represent separately identifiable components. Deliverables are considered for separate components if the following two conditions are met: (i) the deliverable has value to the customer on a stand-alone basis and (ii) there is evidence of the fair value of the item. The total arrangement consideration is allocated to each separate component based on its relative fair value. Revenue from passive infrastructure is recognised on accrual basis as per the contractual terms. Indefeasible Right to Use (IRU) The Company enters into agreements which entitle its customers the right to use of specified capacity of dark fibre/bandwidth capacity for a specific period of time. Under such arrangements, the rights to use the specified assets are given for a substantial part of the estimated useful life of such assets. The contracted price received upfront in advance is treated as deferred revenue and is recognised on a straight line basis over the agreement period.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |158| Unbilled Income Unbilled income represents the value of services rendered but not yet been invoiced on the reporting date due to contractual terms. Interest Income Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is recorded using the applicable Effective Interest Rate (EIR), which is the rate that exactly discounts estimated future cash receipts over the expected life of the financial asset to that asset’s net carrying amount on initial recognition. Dividends Dividend Income is recognised when the Company’s right to receive the payment is established. 16. IL&FS TRANSPORTATION NETWORKS LIMITED (ITNL) ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue from Advisory, design, engineering and management services The Company’s service offerings include advisory and management services, supervisory services, operation and maintenance services, toll collection services for toll road projects and rendering assistance to applicant for toll road concessions with the bidding process. Revenue is recognized when it is realized or realizable and earned. Revenue is considered as realized or realizable and earned when it has persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured. Advisory, Design and Engineering fees are billed as services are rendered, however they are due for payment one year from the date of billing. Disclosure with respect to such Trade Receivables has been made considering above policy. Revenue in respect of arrangements made for rendering services is recognized over the contractual term of the arrangement. In respect of arrangements, which provide for an upfront payment followed by additional payments as certain conditions are met (milestone payments), the amount of revenue recognized is based on the services delivered in the period as stated in the contract. In respect of arrangements where fees for services rendered are success based (contingent fees), revenue is recognized only when the factor(s) on which the contingent fees is based, actually occur and the collectability is reasonably assured. Revenue from development projects under fixed - price contracts, where there is no uncertainty as to measurement or collectability of consideration is recognized based on the milestones reached under the contracts. Revenue from construction contracts The Company recognizes and measures revenue, costs and margin for providing construction services during the period of construction of the infrastructure in accordance with Ind AS 11 ‘Construction Contracts’. When the outcome of a construction contract can be estimated reliably and it is probable that it will be profitable, contract revenue and contract costs associated with the construction contract are recognized as revenue and expenses respectively by reference to the percentage of completion of the contract activity at the reporting date. The percentage of completion of a contract is determined considering the proportion that contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. For the purposes of recognizing revenue, contract revenue comprises the initial amount of revenue agreed in the contract, the variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue and they are capable of being reliably measured. The percentage of completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenue and contract costs. The effect of a change in the estimate of contract

|159| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers revenue or contract costs, or the effect of a change in the estimate of the outcome of a contract, is accounted for as a change in accounting estimate and the effect of which are recognized in the Statement of Profit and Loss in the period in which the change is made and in subsequent periods. When the outcome of a construction contract cannot be estimated reliably, revenue is recognized only to the extent of contract costs incurred of which recovery is probable and the related contract costs are recognized as an expense in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an expense in the Statement of Profit and Loss in the period in which such probability occurs. Any excess/short revenue recognized in accordance with the stage of completion of the project, in comparison to the amounts billed to the clients in accordance with the milestones completed as per the respective development agreements, is carried forward as “Unearned Revenue” or “Unbilled Revenue” as the case may be. 17. INFOSYS LIMITED ACCOUNTING POLICY Revenue Recognition The Company derives revenues primarily from software development and related services and from the licensing of software products. Arrangements with customers for software related services are either on a fixed-price, fixed-timeframe or on a time-and-material basis. Revenue on time-and-material contracts are recognized as the related services are performed and revenue from the end of the last billing to the Balance Sheet date is recognized as unbilled revenues. Revenue from fixed-price, fixed-timeframe contracts, where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. When there is uncertainty as to the measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the current contract estimates. Costs and earnings in excess of billings are classified as unbilled revenue while billings in excess of costs and earnings are classified as unearned revenue. Deferred contract costs are amortized over the term of the contract. Maintenance revenue is recognized rateably over the term of the underlying maintenance arrangement. In arrangements for software development and related services and maintenance services, the Company has applied the guidance in Ind AS 18, Revenue, by applying the revenue recognition criteria for each separately identifiable component of a single transaction. The arrangements generally meet the criteria for considering software development and related services as separately identifiable components. For allocating the consideration, the Company has measured the revenue in respect of each separable component of a transaction at its fair value, in accordance with principles given in Ind AS 18. The price that is regularly charged for an item when sold separately is the best evidence of its fair value. In cases where the Company is unable to establish objective and reliable evidence of fair value for the software development and related services, the Company has used a residual method to allocate the arrangement consideration. In these cases, the balance of the consideration, after allocating the fair values of undelivered components of a transaction, has been allocated to the delivered components for which specific fair values do not exist. License fee revenues are recognized when the general revenue recognition criteria given in Ind AS 18 are met. Arrangements to deliver software products generally have three elements : license, implementation and Annual Technical Services (ATS). The Company has applied the principles given in Ind AS 18 to account for revenues from these multiple element arrangements. Objective and reliable evidence of fair value has been established for ATS. Objective and reliable evidence of fair value is the price charged when the element is sold separately. When other services are provided in conjunction with the licensing arrangement

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |160| and objective and reliable evidence of their fair values have been established, the revenue from such contracts are allocated to each component of the contract in a manner, whereby revenue is deferred for the undelivered services and the residual amounts are recognized as revenue for delivered elements. In the absence of objective and reliable evidence of fair value for implementation, the entire arrangement fee for license and implementation is recognized using the percentage-of-completion method as the implementation is performed. Revenue from client training, support and other services arising due to the sale of software products is recognized as the services are performed. ATS revenue is recognized rateably over the period in which the services are rendered. Advances received for services and products are reported as client deposits until all conditions for revenue recognition are met. The Group accounts for volume discounts and pricing incentives to customers as a reduction of revenue based on the rateable allocation of the discounts/incentives amount to each of the underlying revenue transaction that results in progress by the customer towards earning the discount/incentive. Also, when the level of discount varies with increase in levels of revenue transactions, the Company recognizes the liability based on its estimate of the customer’s future purchases. If it is probable that the criteria for the discount will not be met, or if the amount thereof cannot be estimated reliably, then discount is not recognized until the payment is probable and the amount can be estimated reliably. The Company recognizes changes in the estimated amount of obligations for discounts in the period in which the change occurs. The discounts are passed on to the customer either as direct payments or as a reduction of payments due from the customer. The Company presents revenues net of value-added taxes in its Statement of Profit and Loss. USE OF ESTIMATES The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in Note 1.4. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements. CRITICAL ACCOUNTING ESTIMATES a. Revenue recognition The Company uses the percentage-of-completion method in accounting for its fixed-price contracts. The use of the percentage-of-completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date. 18. INTERGLOBE AVIATION LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured

|161| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers at the fair value of the consideration received or receivable, net of discounts. Revenue is recorded provided the recovery of consideration is probable and determinable. Passenger and cargo revenue Passenger revenue is recognised on flown basis i.e. when the service is rendered, net of discounts given to the passengers, 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 airport levies and applicable taxes. The sale of tickets not yet flown is credited to unearned revenue i.e. ‘Forward Sales’ disclosed under other current liabilities. Fees charged for modification and cancelation of flight tickets and towards special service request are recognised as revenue on rendering of the service. The unutilised 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 is recognised on transfer of all significant risks and rewards to the passenger. Revenue from sale of food and beverages is recognised on sale of goods to the passenger, net of applicable taxes. Tour 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. 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 of against related expense arising on the same transaction as it reflects the substance of transaction. Moreover, 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. 19. IRB INFRASTRUCTURE DEVELOPERS LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The specific recognition criteria described below must also be met before revenue is recognised. Contract revenue (construction contracts) Contract revenue and contract cost associated with the construction of road are recognised as revenue and expenses respectively by reference to the stage of completion of the projects at the balance sheet date. The stage of completion of project is determined by the proportion that contract cost incurred for work performed

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |162| upto the balance sheet date bear to the estimated total contract costs. Where the outcome of the construction cannot be estimated reliably, revenue is recognised to the extent of the construction costs incurred if it is probable that they will be recoverable. If total cost is estimated to exceed total contract revenue, the Group provides for foreseeable loss. Contract revenue earned in excess of billing has been reflected as unbilled revenue and billing in excess of contract revenue has been reflected as unearned revenue. Group’s operations involve levying of VAT on the construction work. Sales tax/ value added tax (VAT) is not received by the Group on its own account. Operation and maintenance contracts Revenue from maintenance contracts are recognised on pro-rata basis over the period of the contract as and when services are rendered. Income from toll contracts The income from Toll Contracts on BOT basis are recognised on actual collection of toll revenue (net of revenue share payable to NHAI) as per Concession Agreement. Toll collection charges Revenue is recognised on actual collection of toll revenue (net of amount paid to NHAI) as per the Supplementary agreement with NHAI. Revenue from trading sales Revenue from sale of goods is recognised in Statement of Profit and Loss when the significant risks and rewards in respect of ownership of the goods has been transferred to the buyer as per the term of the respective sales order, and the income can be measured reliably and is expected to be received. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts, cash discounts and volume rebates. Revenue from wind-mill power generation (Sale of electricity) Revenue from wind-mill power generation is recognized when the electricity is delivered to electricity distribution Company at a common delivery point and the same is measured on the basis of meter reading. Accounting for Claim Claims are recognised as income to the extent it is measurable and it is not unreasonable to expect ultimate collection. 20. JSW ENERGY LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Sale of Power Revenue is recognised to the extent that it is probable that economic benefit will flow to the Group and that the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for rebates and other similar allowances. Revenue from sale of power/coal/other items is recognised when substantial risks and rewards of ownership is transferred to the buyer under the terms of the contract. Transmission Income is accounted for on accrual basis for the period of operation of the transmission line computed based on the approved Annual Revenue Requirement (ARR) or where the ARR is not approved, on the basis of the tariff order. Where neither the ARR nor the tariff order are approved, transmission income is accounted as per Maharashtra Electricity Regulatory Commission (MERC) Multi Year Tariff Regulations where under, transmission income is computed by taking the total cost, contingency provision and Return on Equity (ROE) @ 15.5% on post-tax basis and after grossing up with the applicable income taxes for the

|163| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers purpose of revenue. Any difference between the total annual revenue recognised as aforesaid and the annual revenue as approved by MERC in respect of ARR/Truing up Petition filed is adjusted/recognized during the accounting period in which approval of the ARR/Truing up Petition, as the case may be, is received from MERC. Revenue from construction contracts Revenue from construction contracts is recognized by applying percentage of completion method after providing for foreseeable losses, if any. Percentage of completion is determined as a proportion of the cost incurred upto the reporting date to the total estimated cost to complete. Foreseeable losses, if any, on the contracts is recognised as an expense in the period in which it is foreseen, irrespective of the stage of completion of the contract. While determining the amount of foreseeable loss, all elements of cost and related incidental income which is not included in contract revenue is taken into consideration. Contract is reflected at cost that is expected to be recoverable till such time the outcome of the contract cannot be ascertained reliably and at realisable value thereafter. Claims are accounted as income in the year of acceptance by customer. Operator fee Operator fees is accounted on accrual basis as and when the right to receive arises. Note No. 29: Revenue recognition (a) RWPL (the subsidiary operating the Barmer plant) has recognised Sales during the year based on the adhoc tariff allowed by Rajasthan Electricity Regulatory Commission (RERC) vide Order dated 31st March, 2016. Pending determination of final tariff, the Company has provided truing up and for fuel price adjustment impact for the current financial year amounting to ` 42.56 crore (previous year ` 45.01 crore) based on RERC Regulation. The same is subject to adjustment as per final Tariff determination by RERC. (b) On 25th June, 2014, RWPL filed a comprehensive tariff petition no 464/2014 for determination of Final Tariff of the Power Plant for FY 2009-10 to FY 2013-14 and Annual Performance Review (true up) for FY 2009-10 and FY 2010-11 based on audited accounts before RERC. RERC vide order dated 24th February, 2016 has determined the final capital cost and tariff of Barmer Power Plant for the period from FY 2009-10 to FY 2013-14 along with true up of Annual Revenue Requirement for FY 2009-10 and FY 2010-11. In the above order RERC has rejected/disallowed certain expenditures. Aggrieved by the above order and certain findings of RERC towards disallowance of capital cost and some other aspects, RWPL has filed an Appeal before Appellate Tribunal of Electricity. Meanwhile, RWPL has made a net provision of ` 134.26 crore (previous year ` 23.18 crore] in the books in respect of the above Order. (c) RWPL has filed an Appeal before the Hon’ble Appellate Tribunal for Electricity (APTEL) against the order of Rajasthan Electricity Regulatory Commission (RERC) dated 17th October, 2012 fixing a ceiling on the first year tariff at ` 2.43 per unit as per Power Purchase Agreement (PPA) which provides that first year tariff shall be less than first year tariff of Giral (` 2.43 /unit). Further, RERC has decided that first year tariff shall be applicable for entire project covered in PPA and not the units commissioned in the first year only. Hon’ble Appellate Tribunal vide order dated 29th October, 2013 has disposed the above Appeal in favour of RWPL, stating that first year shall be first year of operation of plant with lignite i.e. FY 2011-12 and allowing that the tariff for the first year shall be less than the final first year tariff of Giral Project as determined by the State Commission. Accordingly, RERC, in its Order dated 24th February, 2016 has restricted the first year tariff (First year tariff on lignite – FY 2011-12) at ` 3.34/kWh for Unit no 1,2 & 4 and ` 3.246 kWh for Unit no 3 being one paisa less than first year tariff of Giral Project given by its Order dated 12th August, 2015 i.e. ` 3.35/kWh. The Rajasthan Discoms on 19th November, 2013 have filed Review Petition before Hon’ble Appellate Tribunal of Electricity against the APTEL order dated 29th October, 2013. The above Review Petition has been dismissed by APTEL Authority by order dated 9th May, 2013. Further, Rajasthan Discoms have also filed second Appeal before the Hon’ble Supreme Court. The second Appeal has been admitted by Hon’ble Supreme Court and is pending for adjudication and disposal.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |164| (d) RWPL has filed an Appeal before the Hon’ble Appellate Tribunal for Electricity (APTEL) against the Provisional Tariff Order dated 30th August, 2013 passed by Rajasthan Electricity Regulatory Commission (RERC) for determination of provisional tariff of RWPL Generating Station for financial year 2012-13. In the said Appeal, the Company has sought relief from the Hon’ble APTEL for inclusion of certain items of capital expenditures which were not considered by the Hon’ble Commission in its order dated 30th August, 2013. Hon’ble Appellate Tribunal vide order dated 20th November, 2015 has disposed the above Appeal partially in favour of RWPL. A second appeal against this Order on certain findings is currently pending before the Hon’ble Supreme Court. (e) RERC vide its Order dated 5th February, 2016 has upheld the Dispute Resolution petition filed by the Company u/s 86(1)(f) of the Electricity Act, 2003, pertaining to Late Payment Surcharge (LPS) on delayed payments by the Discoms and directed the Discoms to examine the same. During the year, RWPL has received the LPS claim from the Discoms aggregating to ` 134.90 crore for the period from FY 2011-12 to FY 2016-17. (f) In case of HBPCL (the subsidiary operating the Baspa II and Karcham Wangtoo Plant), revenue from sale of power w.r.t Baspa II, is accounted for on the basis of billing to Himachal Pradesh State Electricity Board Limited (HPSEBL) as per Tariff approved by Himachal Pradesh Electricity Regulatory Commission (HPERC) in accordance with the provisions of the Long Term Power Purchase Agreement (LTPPA) dated 4th June, 1997, Amendment No. 1 dated 7th January, 1998, executed between the company and HPSEBL. (g) In case of Karcham Wangtoo Plant of HBPCL, revenue from sale of power is accounted as under: For the financial year 2015-16, LTPPA sales were accounted for on the basis of invoices billed to procurer in accordance with the tariff petition filed with CERC. Pending receipt of the final Order from CERC, the procurer has been acknowledging the dues as per invoices and settling payments against the same on the basis of mutually agreed rate with the difference to be settled on receipt of the final tariff Order. During the financial year 2016-17, CERC Order dated 30th March, 2017 was received by the group and accordingly, LTPPA sales has been accounted as per the said Order. Besides, the Group is examining the actions to be taken against the said Order. 21. LARSEN & TOUBRO LIMITED ACCOUNTING POLICY Revenue recognition Revenue is recognised based on nature of activity when consideration can be reasonably measured and recovered with reasonable certainty. Revenue is measured at the fair value of the consideration received or receivable and is reduced for estimated customer returns, rebates and other similar allowances. (i) Revenue from operations Revenue includes excise duty and adjustments made towards liquidated damages and price variation wherever applicable. Escalation and other claims, which are not ascertainable/acknowledged by customers are not taken into account. A. Sale of goods Revenue from sale of manufactured and traded goods is recognised when the goods are delivered and titles have passed, provided all the following conditions are satisfied: 1. significant risks and rewards of ownership of the goods are transferred to the buyer; 2. the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the good sold;

|165| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers 3. the amount of revenue can be measured reliably; 4. it is probable that the economic benefits associated with the transaction will flow to the Group; and 5. the costs incurred or to be incurred in respect of the transaction can be measured reliably. B. Revenue from construction/project related activity and contracts for supply/commissioning of complex plant and equipment is recognised as follows: A. Cost plus contracts Revenue from cost plus contracts is recognised by reference to the recoverable costs incurred during the period plus the margin as agreed with the customer. B. Fixed price contracts Contract revenue is recognised only to the extent of cost incurred till such time the outcome of the job cannot be ascertained reliably subject to the condition that it is probable such cost will be recoverable. When the outcome of the contract is ascertained reliably, contract revenue is recognised at 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. The estimated outcome of a contract is considered reliable when all the following conditions are satisfied: i. the amount of revenue can be measured reliably; ii. it is probable that the economic benefits associated with the contract will flow to the Group; iii. the stage of completion of the contract at the end of the reporting period can be measured reliably; and iv. the costs incurred or to be incurred in respect of the contract can be measured reliably Expected loss, if any, on a contract is recognised as expense in the period in which it is foreseen, irrespective of the stage of completion of the contract. For contracts where progress billing exceeds the aggregate of contract costs incurred to date plus recognised profits (or recognised losses as the case may be), the surplus is shown as the amount due to customers. Amounts received before the related work is performed are included in the consolidated Balance Sheet, as a liability towards advance received. Amount billed for work performed but yet to be paid by the customer are disclosed in the consolidated Balance Sheet as trade receivables. The amount of retention money held by the customers is disclosed as part of other current assets and is reclassified as trade receivables when it becomes due for payment. 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 activity which are in substance similar to delivery of goods is recognised when all significant risks and rewards of ownership in the land and/or building are transferred to the customer and a reasonable expectation of collection of the sale consideration from the customer exists. Revenue from those 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;

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |166| 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 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. In the case of the developmental project business and the realty business, revenue includes profit on sale of stake in the subsidiary and/or joint venture companies as the divestments are inherent in the business model. E. Rendering of services Revenue from rendering services is recognised when the outcome of a transaction can be estimated reliably by reference to the stage of completion of the transaction. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: 1. the amount of revenue can be measured reliably; 2. it is probable that the economic benefits associated with the transaction will flow to the company; 3. the stage of completion of the transaction at the end of the reporting period can be measured reliably; and 4. the costs incurred or to be incurred in respect of the transaction can be measured reliably. Stage of completion is determined by the proportion of actual costs incurred to-date, to the estimated total costs of the transaction. Unbilled revenue represents value of services performed in accordance with the contract terms but not billed. F. 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 similar basis as stated in (i) B above. G. 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. Income from interest-bearing assets is recognised on accrual basis over the life of the asset based on the constant effective yield. 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 toll collections of such projects from users of facilities are 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.

|167| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers 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 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 Other operational revenue represents income earned from the activities incidental to the business and is recognized when the right to receive the income is established as per the terms of the contract. Notes to Accounts 1. NOTE [48] (a) Disclosures pursuant to Ind AS 11 “Construction Contracts” ` crore Sr. No. Particulars 2016-17 2015-16 1-4-2015 i) Contract revenue recognised for the financial year [Note 31] 58498.42 55522.22 Not applicable ii) Aggregate amount of contract costs incurred and recognised profits (less recognised losses) as at end of the financial year for all contracts in progress as at that date 217253.39* 210231.40* 184245.08* iii) Amount of customer advances outstanding for contracts in progress as at end of the financial year 12205.69 11791.52 10431.14 iv) Retention amounts by customers for contracts in progress as at end of the financial year 6981.26 6506.01 5767.20 *includes provision for foreseeable loss: ` 121.66 crore (2015-16: ` 127.83 crore and 1-4-2015: ` 118.36 crore) (b) The Company has revised certain estimates used in determining the cost of completion of projects, as a part of periodic review of estimates. As a result, the revenue and profit before tax for the year increased by ` 121.46 crore (previous year: ` 395.73 crore). 2. (c) Disclosures pursuant to Guidance Note on Accounting for Real Estate Transactions issued by the Institute of Chartered Accountants of India ` crore Sr. No. Particulars 2016-17 2015-16 1-4-2015 i) Amount of project revenue recognised for the financial year [Note 31] 403.18 843.60 Not applicable ii) Aaggregate amount of costs incurred and profits recognised (less recognised losses) as at the end of the financial year 2332.26 2228.80 1464.99

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |168| ` crore Sr. No. Particulars 2016-17 2015-16 1-4-2015 iii) Amount of advances received 19.16 15.73 31.40 iv) Amount of work-in-progress and the value of inventories [Note 9] 281.83 304.82 201.11 v) Excess of revenue recognised over actual bills raised (unbilled revenue) [Note 16] 71.28 10.24 48.71 (ii) Other income A. Interest income is accrued on a time basis by reference to the principal outstanding and the effective interest rate. B. Dividend income is accounted in the period in which the right to receive the same is established. C. Other Government grants, which are revenue in nature and are towards compensation for the qualifying costs, incurred by the Group, are recognised as income in the Statement of Profit and Loss in the period in which such costs are incurred. D. Other items of income are accounted as and when the right to receive arises and it is probable that the economic benefits will flow to the group and the amount of income can be measured reliably. 22. MAHINDRA LIFESPACE DEVELOPERS LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Income from projects Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. However if, at the time of transfer substantial acts are yet to be performed under the contract, revenue is recognised on proportionate basis as the acts are performed, i.e. on the percentage of completion basis. When the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. When contract costs incurred to date plus recognised profits less recognised losses exceed progress billings, the surplus is shown as amounts due from customers for contract work. For contracts where progress billings exceed contract costs incurred to date plus recognised profits less recognised losses, the surplus is shown as the amounts due to customers for contract work. Amounts received before the related work is performed are included in the balance sheet, as a liability, as advances received. Amounts billed for work performed

|169| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers but not yet paid by the customer are included in the consolidated balance sheet under trade receivables, whereas amounts not billed for work performed are included as unbilled revenue under other current assets. Further, 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, revenues will be recognized from these real estate projects only when i. All critical approvals necessary for commencement of the project have been obtained, and ii. the actual construction and development cost incurred is at least 25% of the total construction and development cost (without considering land cost), and iii. when at least 10% of the sales consideration is realised, and iv. where 25% of the total saleable area of the project is secured by contracts of agreement with buyers. Income from sale of land and other rights Revenue from sale of land and other rights are considered upon transfer of all significant risks and rewards of ownership of such real estate/property as per the terms of the contract entered into with the buyers, which generally with the firmity of the sale contracts/agreements. Income from Project Management 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. 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. 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. Notes to Accounts 1. 13a) Additional disclosure as per Guidance note on accounting for Real Estate Transactions Particulars As at 31st March, 2017 As at 31 March, 2016 Contracts in Progress at the end of reporting Period Construction costs incurred plus profits recognised less losses recognised 35,755.00 17,724.07 Advances received from customers 639.18 3,154.56 Work in progress and inventories 53,290.51 70,302.04 23. NTPC LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue Group’s revenues arise from sale of energy, consultancy, project management & supervision services, energy trading and other income. Revenue from sale of energy is mostly regulated and governed by the applicable CERC Tariff Regulations under Electricity Act, 2003. Certain revenue from sale of energy is recognized based on the rates & terms and conditions mutually agreed with the beneficiaries and trading of power through power exchanges. Revenue from other income comprises interest from banks, employees,

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |170| contractors etc., dividend from investments in joint venture and subsidiary companies, dividend from mutual fund investments, surcharge received from customers for delayed payments, sale of scrap, other miscellaneous income, etc. (i) Revenue from sale of energy The majority of the Group’s operations in India are regulated under the Electricity Act, 2003. Accordingly, the CERC determines the tariff for the Group’s power plants based on the norms prescribed in the tariff regulations as applicable from time to time. Tariff is based on the capital cost incurred for a specific power plant and primarily comprises two components: capacity charge i.e. a fixed charge, that includes depreciation, return on equity, interest on working capital, operating & maintenance expenses, interest on loan and energy charge i.e. a variable charge primarily based on fuel costs. Revenue from the sale of energy is measured at the fair value of the consideration received or receivable. Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management involvement, and the amount of revenue can be measured reliably. Revenue from sale of energy is accounted for based on tariff rates approved by the CERC (except items indicated as provisional) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In case of power stations where the tariff rates are yet to be approved/items indicated provisional by the CERC in their orders, provisional rates are adopted considering the applicable CERC Tariff Regulations. Revenue from sale of energy is recognized once the electricity has been delivered to the customer and is measured through a regular review of usage meters. Customers are billed on a periodic and regular basis. As at each reporting date, revenue from sale of energy includes an accrual for sales delivered to customers but not yet billed i.e. unbilled revenue. The incentives/disincentives are accounted for based on the norms notified/approved by the CERC as per principles enunciated in Ind AS 18. In cases of power stations where the same have not been notified/ approved, incentives/disincentives are accounted for on provisional basis. Part of revenue from sale of energy is recognized based on the rates & terms and conditions mutually agreed with the beneficiaries and trading of power through power exchanges. Rebates allowed to beneficiaries as early payment incentives are deducted from the amount of revenue. Advance against depreciation considered as deferred revenue in earlier years is included in sales, to the extent depreciation recovered in tariff during the year is lower than the corresponding depreciation charged. Exchange differences arising from settlement/translation of monetary items denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per the CERC Tariff Regulations are accounted as ‘Regulatory deferred account balances’ and adjusted from the year in which the same becomes recoverable/payable. Exchange differences on account of translation of foreign currency borrowings recognized upto 31 March 2016, recoverable from or payable to the beneficiaries in subsequent periods as per the CERC Tariff Regulations are accounted as ‘Deferred foreign currency fluctuation asset’. The increase or decrease in depreciation for the year due to the accounting of such exchange differences as mentioned above is adjusted in depreciation. Fair value changes in respect of forward exchange contracts of derivative contracts recoverable from/payable to the beneficiaries as per the CERC Tariff Regulations, are recognized in sales. 24. OBEROI REALTY LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue Recognition (i) Revenue from Real Estate Projects The Group follows the percentage of project completion method for its projects. The Group recognises revenue in proportion to the actual project cost incurred (including land cost) as against the total estimated project cost (including land cost), subject to achieving the threshold level of project cost (excluding land cost) as well as area sold, in line with the “Revised Guidance Note on

|171| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers Accounting for Real Estate Transaction” (for entities to whom Ind AS is applicable) and depending on the type of project. Revenue is recognised net of indirect taxes and on execution of either an agreement or a letter of allotment. The estimates relating to percentage of completion, costs to completion, area available for sale etc. being of a technical nature are reviewed and revised periodically by the management 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. Land cost includes the cost of land, land related development rights and premium. (ii) Revenue from hospitality Room revenue is recognised based on occupancy. Revenue from sale of food and beverages and other allied services is recognised as and when the services are rendered. Revenue includes excise duty and the same is recognised net of trade discounts and sales tax/value added tax (VAT), if any. (iii) 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. 25. PC JEWELLERS LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Sales of goods Revenue from sale of goods is recognised on transfer of risk and rewards of ownership of goods to the buyer and when no significant uncertainty exists regarding the amount of consideration that will be derived. 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. The Group applies the revenue recognition criteria to each separately identifiable component of the sales transaction. Revenue is recorded net of any discounts and gifts provided by the Group. The Parent Company also operates a loyalty points programme, which allows customers to accumulate points when they purchase products in the Parent Company’s retail stores. The points can be redeemed for discounts on the next purchase. In such cases, consideration received is allocated to the points issued at its fair value. Fair value of the points is determined by applying a statistical analysis. The fair value of the points issued is deferred and recognised as revenue when the points are redeemed. 26. POWER GRID CORPORATION OF INDIA LIMITED EXTRACTS FROM INDEPENDENT AUDITORS REPORT Emphasis of Matter We draw attention to the following matters in the Notes to the Consolidated Ind AS Financial Statements: (a) Note No. 37(b)(ii) in respect of recognition of revenue from transmission assets for which final tariff orders are yet to be issued by the CERC; Note 37(b)(ii) The company has recognised transmission income during the year as per the following:- ii) ` 2345.76 crore (previous year ` 7109.16 crore) in respect of transmission assets for which final tariff orders are yet to be issued as per CERC Tariff Regulations and other orders in similar cases.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |172| ACCOUNTING POLICY (EXTRACTS) Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and value added taxes. Transmission Income is accounted for based on tariff orders notified by the CERC. In case of transmission projects where final tariff orders are yet to be notified, transmission income is accounted for as per tariff regulations and orders of the CERC in similar cases. Difference, if any, is accounted on issuance of final tariff orders by the CERC. Transmission Income in respect of additional capital expenditure incurred after the date of commercial operation is accounted for based on actual expenditure incurred on year to year basis as per CERC tariff regulations. The Transmission system incentive/disincentive is accounted for based on certification of availability by the respective Regional Power Committees and in accordance with the CERC tariff regulations. Advance against depreciation (AAD), forming part of tariff pertaining upto the block period 2004-09, to facilitate repayment of loans, was reduced from transmission income and considered as deferred income to be included in transmission income in subsequent years. The outstanding deferred income in respect of AAD is recognized as transmission income, after twelve years from the end of the financial year in which the asset was commissioned, to the extent depreciation recovered in the tariff during the year is lower than depreciation charged in the accounts. Surcharge recoverable from trade receivables, liquidated damages, warranty claims and interest on advances to suppliers are recognized when no significant uncertainty as to measurability and collectability exists. Income from Telecom Services, net of downtime credit, is recognised on the basis of terms of agreements/ purchase orders from the customers. In respect of ‘Cost-plus-consultancy contracts’, involving execution on behalf of the client, income is accounted for (wherever initial advances received) in phased manner as under: a) 10% on the issue of Notice Inviting Tender for execution b) 5% on the Award of Contracts for execution c) Balance 85% on the basis of actual progress of work including supplies Income from other consultancy contracts are accounted for on technical assessment of progress of services rendered. Application Fees towards Long Term Open Access (LTOA) as per CERC Guidelines is accounted for on receipt. Scrap other than steel scrap & conductor scrap are accounted for as and when sold. Dividend income is recognized when right to receive payment is established. 27. PVR LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The Group collects entertainment tax, sales tax and service tax on behalf of government and, therefore, these are not economic benefits flowing to the Group. Hence, they are excluded from revenues. The following specific recognition criteria must also be met before revenue is recognized.

|173| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers i. Income from sale of movie tickets (Box office revenue) Revenue from sale of movie tickets is recognized as and when the film is exhibited. ii. Sale of Food and Beverages Revenue from sale of food and beverages is recognized upon passage of title to customers, which coincides with their delivery to the customer. iii. Revenue from Bowling games Revenue from bowling games is recognized as and when the games are played by patrons. iv. Income from Shoe rental Revenue from rental of shoes is recognized as and when shoes are given on rent for bowling game. v. Income from sale of franchise Revenue from sale of franchise is recognized on the date when the rights are made available to the franchisee for exploitation/when franchisee store commences its commercial operations. vi. Income from film production and distribution Revenues from film co-produced/co-owned are accounted for based on the terms of the agreement. Revenue from assignment of domestic theatrical exhibition rights of films is accounted for as per the terms of the assignment on the theatrical exhibition of the films or on the date of agreement to assign the rights, whichever is later. The revenue is recognised on gross basis. (a) Income from Theatrical distribution The revenue from theatrical distribution is recognized once the movie is released based on “Daily Collection Report” submitted by the exhibitor. (b) Income from sale of other rights other than theatrical distribution Revenue from other rights such as satellite rights, overseas rights, music rights, video rights, etc. is recognized on the date when the rights are made available to the assignee for exploitation. Digital revenue is recognised on the date when the rights are made available to the assignee for exploitation. (c) Income from film consultancy Film Consultancy income is recognised on monthly basis as per agreement terms. vii. Advertisement Revenue Advertisement revenue is recognized as and when advertisement are displayed at the cinema halls and in accordance with the term of the agreement. viii. Management Fees Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreements. ix. Convenience Fee Convenience fee is recognized as and when the movie tickets are sold on digital platforms. Further, in case of fixed contracts with digital ticketing partners, revenue is recognized on accrual basis in accordance with the terms of the agreement. x. Rental and Food court Income Rental Income is recognized on accrual basis for the period the space of cinema and food court is let out under the operating lease arrangement

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |174| xi. Virtual Print Fees Income Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreements. xii. Interest Income For all debt instruments measured either at amortised cost or at fair value through other comprehensive income, interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, the Company 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. Interest income is included in finance income in the statement of profit and loss. 28. RAYMOND LIMITED ACCOUNTING POLICY (EXTRACTS) REVENUE RECOGNITION Sale of goods – customer loyalty programme (deferred revenue) The Company operates a loyalty programme where customers accumulate points for purchases made which entitle them to discounts on future purchases. Revenue related to the award points is deferred and recognised when the points are redeemed. The amount of revenue is based on the number of points redeemed relative to the total number expected to be redeemed. Sales Return The Company recognises provision for sales return, based on the historical results, measured on net basis of the margin of the sale. Loyalty Income The Company operates a loyalty program for the customers of the Group Companies and franchisees of the Company. The customer accumulates points for purchases made which entitles them for discount on future purchases. The Company charges fixed percentage of sales to group companies and franchises who participates in this scheme, which is recognised as revenue. The discount offered to customers on the basis of points redeemed are recognised as cost. The Company recognises provision for the accumulated points as at the reporting date, estimated based on the historical results. 29. RELIANCE INFRASTRUCTURE LIMITED ACCOUNTING POLICY (EXTRACTS) EXTRACTS FROM INDEPENDENT AUDITORS REPORT Emphasis of Matter We draw attention to Note no. 41(e) of the consolidated Ind AS financial statements with regard to DERC Tariff Order received by BRPL and BYPL wherein revenue gap upto March 31, 2014 has been trued up with certain disallowances. BRPL and BYPL have preferred an appeal before APTEL on the above disallowance and based on legal opinion, no impact of such disallowance, which is subject matter of appeal, has been considered.

|175| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are, wherever applicable, inclusive of excise duty and net of returns, trade allowances, rebates, value added taxes and amounts collected on behalf of third parties. The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the Group’s activities as described below. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Further specific criteria for revenue recognition are followed for different businesses as under: i. Power Business Revenue from sale of power is accounted on the basis of billing to consumers based on billing cycles followed by the Group which is inclusive of fuel adjustment charges (FAC) and unbilled revenue for the year. Generally all consumers are billed on the basis of recording of consumption of electricity by installed meters. Where meters have stopped or are faulty, the billing is done based on the past consumption for such period. The Parent Company, PKTCL, BRPL and BYPL determine revenue gaps (i.e. surplus/shortfall in actual returns over returns entitled) in respect of their regulated operations in accordance with the provisions of Ind AS 114 “Regulatory Deferral Accounts” read with the Guidance Note on Rate Regulated Activities issued by ICAI and based on the principles laid down under the relevant tariff regulations/ tariff orders notified by the respective state electricity regulators and the actual or expected actions of the regulators under the applicable regulatory framework. Appropriate adjustments in respect of such revenue gaps are made in the revenue of the respective years for the amounts which are reasonably determinable and no significant uncertainty exists in such determination. These adjustments/accruals representing revenue gaps are carried forward as Regulatory deferral accounts debit/credit balances (Regulatory assets/Regulatory liabilities) as the case may be in the Consolidated Financial Statements and are classified Separately in the Consolidated Financial Statements, which would be recovered/ refunded through future billing based on future tariff determination by the regulators in accordance with the respective electricity regulations. The Group presents separate line items in the balance sheet for: a) the total of all regulatory deferral account debit balances and related deferred tax balances; and b) the total of all regulatory deferral account credit balances and related deferred tax balances. A separate line item is presented in the Consolidated Statement of Profit and Loss for the net movement in regulatory deferral account net of deferred tax for the reporting period. In case of BKPL, revenue from sale of power is accounted for on the basis of billing to bulk customer as provided in the Power Purchase Agreement (PPA). In case of RETL, revenue from sale of power and margin on power banking transactions is accounted for based on rates agreed with the customers on delivery of power. Compensation for deviation of committed/contracted power is accounted as sales and purchase of power, as the case may be, on its occurrence. The margin earned on sale or purchase of power through energy exchange is recognised on the date of transaction with the exchange. In case of Transmission business not assessed as service concession arrangement, revenue is accounted on the basis of periodic billing to consumers/state transmission utility. The surcharge on late/nonpayment of dues by sundry debtors for sale of energy is recognised as revenue on receipt basis. The Transmission system incentive/ disincentive is accounted for based on the certification of availability by the respective regional power committee and in accordance with the norms notified/approved by the CERC.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |176| iii. Infrastructure Business In respect of Toll Roads, toll revenue from operations of the facility is accounted on receipt basis. In respect of Airports, revenue is recognised on accrual basis when services are rendered and is net of service tax. In respect of Metro Rail Transit System, revenue from fare collection is recognized on the basis of use of tokens, money value of actual usage in case of smart cards and other direct fare collection. vi. Others Amounts received from consumers as Service Line Contribution (SLC) towards Property, Plant and Equipment (PPE) are accounted as Liability under Non-Current Liabilities. An amount equivalent to depreciation on such PPE is recognised as income in the Consolidated Statement of Profit and Loss over the life of the assets. Notes to Accounts Retention money discounting Ind AS 11 and Ind AS 18 require the Group to record revenue at fair value. Under Ind AS, in case of retention monies payable and receivable, due to the timing difference between the recording of revenue/cost and settlement of transaction, it is presumed that the transactions have an embedded financing component, which is separated and recorded as interest income or expense. The interest income and expense on such transactions accrues to the Statement of Profit and Loss over the period the transaction occurs and measured at effective interest rate. 30. SADBHAV INFRA ACCOUNTING POLICY (EXTRACTS) Right arising from service concession arrangement The Group builds infrastructure assets under public-to-private Concession Arrangements which it operates and maintains for periods specified in the Concession Arrangements. Under the Concession Agreements, where the Group has received the right to charge users of the public service, such rights are recognised and classified as “Intangible Assets” in accordance with Appendix A to Ind AS 11. Such right is not an unconditional right to receive consideration because the amounts are contingent to the extent that the public uses the service and thus are recognised and classified as intangible assets. Such an intangible asset is recognised by the Group at cost (which is the fair value of the consideration received or receivable for the construction services delivered) and is capitalized when the project is complete in all respects and when the subsidiary companies receives the completion certificate from the authority as specified in the Concession Agreement and in case of MBCPNL (entity operating multiple border checkposts in the state of Maharashtra), each check post is capitalised when the MBCPNL receives completion certificate from the authority. The economics of the project is for the entire length of the road/infrastructure as per the bidding submitted by the Group companies. Under the Concession Agreements, where the Group has acquired contractual rights to receive specified determinable amounts, such rights are recognised and classified as “Receivable under service concession arrangement” under financial assets. Premium Capitalization Under some of the concession agreements, the Group has contractual obligation to pay premium (concession fees) to National Highway Authority of India (“NHAI”), Grantor, over the concession period. Such obligation has been recognised upfront on an discounted basis when the project gets completed as per the Concession Agreements as ‘Intangible assets – Toll Collection Right’ and corresponding obligation for committed premium is recognised as liabilities.

|177| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers Amortization The intangible rights which are recognized in the form of right to charge users of the infrastructure asset are amortized on a systematic basis over its useful life using the pattern that reflects the pattern in which the assets’ future economic benefits are expected to be consumed by the entities. The amortization charges for each period are recognized in the statement of profit or loss. With respect to toll road assets constructed and in operation as at March 31, 2016, the amortization of such intangible rights are based on actual revenue earned compared to total projected revenue from the project over the balance concession period to cost of intangible assets. As required, total Projected traffic or revenue are reviewed by the management at the end of the each financial year and accordingly, the total projected traffic or revenue is adjusted to reflect any changes in the estimates which lead to the actual number of traffic or revenue at the end of the concession period. 3.5 Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The specific recognition criteria described below must also be met before revenue is recognized. Toll collection and user fee income The revenue is recognized in the period of collection which generally coincide as and when the traffic passes through toll plazas. Annuity income Revenue from annuity based projects is recognised in the Statement of Profit and Loss over the concession period of the respective projects based on the implicit rate of return embedded in the projected cash flows. Such income is duly adjusted for any variation in the amount and timing of the cash flows in the period in which such variation occurs. Contractual Income Contract revenue and costs associated with project related activities are accrued and recognized by reference to the stage of completion of the projects at the reporting date. The stage of completion of a project is determined by the proportion that the contract cost incurred for work performed up to the reporting date bears to the estimated total contract costs. Any excess revenue recognized in accordance with the stage of completion of the project, in comparison to the amounts billed to the clients in accordance with the milestones completed as per the respective project, is accrued as “Unearned Revenue”. Any short revenue recognized in accordance with the stage of completion of the project, in comparison to the amounts billed to the clients in accordance with the milestones completed as per the respective project, is carried forward as “Unbilled Revenue”. An expected loss on construction contract is recognized as an expense immediately when it is certain that total contract costs will exceed the total contract revenue. Price escalation and other claims and/or variation in the contract work are included in contract revenue only when it probable that customer will accept the claim and the amount that is probable will be accepted by the customer can be measured reliably.

Mandatory Accounting Standards (Ind AS) — Extracts from Published Accounts |178| Income from sale of services Revenue in respect of arrangements made for rendering services over specific contractual term is recognized on the contractual term of the arrangement. Service tax collected on behalf of the government is not an economic benefit flowing to the Group. Hence, it is excluded from revenue. 31. SHOPPERS STOP LIMITED ACCOUNTING POLICY Property option revenue The Group has acquired the rights to sell flats in a property being constructed by a third party (termed Property Options), which are initially recognized at cost and at each reporting date valued at lower of cost and net realisable value. Sale of option inventory is recognised when there is a transfer of significant risks and rewards in accordance with the terms of the sale contracts. To the extent the transactions contain a significant financing component, it is adjusted from the total consideration using the appropriate discount rate and recognized in profit or loss over the credit period. Gift vouchers: The amount collected on sale of a gift voucher is recognized as a liability and transferred to revenue (sales) when redeemed or to revenue (other retail operating revenue) on expiry. Other retail operating revenue: Revenue from store displays and sponsorships are recognised based on the period for which the products or the sponsors’ advertisements are promoted/displayed. Facility management fees are recognized pro-rata over the period of the contract. 32. SUN PHARMACEUTICAL INDUSTRIES LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue from sale of goods include excise duty and is measured at the fair value of the consideration received or receivable. Revenue is net of returns, sales tax, chargebacks, rebates and other similar allowances. Sales Returns The Group accounts for sales returns accrual by recording an allowance for sales returns concurrent with the recognition of revenue at the time of a product sale. This allowance is based on the Group’s estimate of expected sales returns. With respect to established products, the Group considers its historical experience of sales returns, levels of inventory in the distribution channel, estimated shelf life, product discontinuances, price changes of competitive products, and the introduction of competitive new products, to the extent each of these factors impact the Group’s business and markets. With respect to new products introduced by the Group, such products have historically been either extensions of an existing line of product where the Group has historical experience or in therapeutic categories where established products exist and are sold either by the Group or the Group’s competitors. 33. SUZLON ENERGY LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Sale of goods Revenue from sale of goods is recognised in the statement of profit and loss when the significant risks and rewards in respect of ownership of goods have been transferred to the buyer as per the terms of the respective sales order. Revenue from the sale of goods is measured at the fair value of consideration received or receivable, net of returns and allowances and discounts.

|179| Chap. 9 – Ind AS 18 — Revenue from Contracts with Customers Contracts to deliver wind power systems (turnkey and projects involving installation and/or commissioning apart from supply) are classified as construction contracts and the revenue from them is recognised based on the stage of completion of the individual contract using the percentage completion method, provided the order outcome aswell as expected total costs can be reliably estimated. Where the profit from a contract cannot be estimated reliably, revenue is only recognized equalling the expenses incurred to the extent that it is probable that the expenses will be recovered. Due from customers, if any, are measured at the selling price of the work performed based on the stage of completion less interim billing and expected losses. The stage of completion is measured by the proportion that the contract expenses incurred to date bear to the estimated total contract expenses. The value of components is recognised in ‘Contracts in progress’ upon dispatch of the complete set of components which are specifically identified for a customer and are within the scope of contract, or on completion of relevant milestones, depending on the type of contracts. Where it is probable that total contract expenses will exceed total revenues from a contract, the expected loss is recognised immediately as an expense in the statement of profit and loss. Where the selling price of a contract cannot be estimated reliably, the selling price is measured only on the expenses incurred to the extent that it is probable that these expenses will be recovered. Prepayments from customers are recognised as liabilities. A contract in progress for which the selling price of the work performed exceeds interim billings and expected losses is recognised as an asset. Contracts in progress for which interim billings and expected losses exceed the selling price are recognised as a liability. Expenses relating to sales work and the winning of contracts are recognised in the statement of profit and loss as incurred. Operation and maintenance income (‘OMS’) Revenues from operation and maintenance contracts are recognised pro-rata over the period of the contract and when services are rendered. Project execution income Revenue from services relating to project execution is recognised on completion of respective service, as per terms of the respective sales order. Power evacuation infrastructure facilities Revenue from power evacuation infrastructure facilities is recognised upon commissioning and electrical installation of the Wind Turbine Generator (WTG) and solar park to the said facilities followed by approval for commissioning of WTG from the concerned authorities. Land revenue Revenue from land lease activity is recognised upon the transfer of leasehold rights to the customers. Revenue from sale of land/right to sale land is recognised when significant risks and rewards in respect of title of land are transferred to the customers as per the terms of the respective sales order. Revenue fromland development is recognised upon rendering of the service as per the terms of the respective sales order. 34. TATA COMMUNICATIONS LIMITED ACCOUNTING POLICY (EXTRACTS) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable and is reduced for estimated customer credit notes and other similar allowances. i. Revenues from Voice Solutions (VS) are recognised at the end of each month based upon minutes of traffic carried during the month.