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You Are Here : Markets  |  Equity   |   Company Profile  |   Reports
Tata Power Company Ltd(Industry :   Power Generation And Supply)
 
BSE Code:500400NSE Symbol: TATAPOWERP/E  (TTM): 44.05
ISIN Demat:INE245A01021Div Yield %:1.44EPS   (TTM) :2.05
Book Value (Rs):59.5395781Market Cap (RsCr):24424.1Face Value (Rs) :1
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1. Background:

The Tata Power Company Limited (the 'Company') is a public limited company domiciled and incorporated in India under the Indian Companies Act, 1913. The registered Office of the Company is located at Bombay House, 24 Homi Mody Street, Mumbai 400001, India.

The Company pioneered the generation of electricity in India more than a century ago. Prior to 1st April, 2000 the Tata Electric Companies comprised of the following three Companies -

• The Tata Hydro-Electric Power Supply Company Limited, established in 1910 (Tata Hydro).

• The Andhra Valley Power Supply Company Limited, established in 1916 (Andhra Valley).

• The Tata Power Company Limited, established in 1919 (Tata Power).

With effect from 1st April, 2000, Andhra Valley and Tata Hydro merged into Tata Power to result in one large unified entity. The Company has an installed generation capacity of 2,954 MW in India and a presence in all the segments of the power sector viz. Fuel and Logistics, Generation (thermal, hydro, solar and wind), Transmission and Distribution.

2. Significant Accounting Policies:

2.1 Statement of compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with section 133 of the Companies Act, 2013.

Upto the year ended 31st March, 2016, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which included Standards notified under the Companies (Accounting Standards) Rules, 2006. These financial statements are the first financial statements of the Company under Ind AS. The date of transition to Ind AS is 1st April, 2015. Refer Note 47 for details of first-time adoption exemptions availed by the Company.

2.2 Basis of preparation and presentation

These financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

2.3 Use of Estimates

The preparation of these financial statements in conformity with the 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 liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of, fair value of unquoted securities and impairment of investments, valuation of current and deferred tax expense, valuation of defined benefit obligations, regulatory deferral accounts and provisions and contingent liabilities.

Impairment of investments:

The Company reviews its carrying value of investments carried at cost or amortised cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

Valuation of deferred tax assets:

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has been explained under Note 2.11.3.

Regulatory deferral account:

The Company determines surplus/defficit (i.e. excess/shortfall of/in aggregate gain over Return on Equity entitlement) for the year in respect of its regulated operations based on the principles laid down under the Tariff Regulations on the basis of Tariff Orders issued. In respect of such surplus/defficit, appropriate adjustments as stipulated under the regulations are made during the year. Further, any adjustments that may arise on annual performance review by regulators under the Tariff Regulations is made after the completion of such review.

2.4 Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

2.5 Revenue recognition

Revenue is recognised to the extent that it is probable that economic benefit will flow to the Company 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 estimated rebates and other similar allowances.

2.5.1 Sale of Power

Revenue from Generation, Transmission and Distribution of power is recognised on an accrual basis and includes unbilled revenue accrued upto the end of the accounting year.

The Company determines surplus/defficit (i.e. excess/shortfall of/in aggregate gain over Return on Equity entitlement) for the year in respect of its regulated operations based on the principles laid down under the relevant Tariff Regulations/Tariff Orders as notified by respective State Regulatory Commissions. In respect of such surplus/defficit, appropriate adjustments as stipulated under the regulations are made during the year. Further, any adjustments that may arise on annual performance review by respective State Regulatory Commissions under the aforesaid Tariff Regulations/Tariff Orders is made after the completion of such review.

2.5.2 Delayed payment charges

Delayed payment charges and interest on delayed payments are recognised, on grounds of prudence when recovered.

2.5.3 Sale of Goods

Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:

• the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits associated with the transaction will flow to the Company; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.5.4 Rendering of Services

Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. The revenue from time and material contracts is recognised at the contractual rates as labour hours and direct expenses are incurred. The Company's policy for recognition of revenue from construction contracts is described in note 2.5.6 below.

2.5.5 Dividend and Interest income

Dividend income from investments is recognised when the shareholder's right to receive payment has been established. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

2.5.6 Construction Contracts

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.

The outcome of a construction contract is considered as estimated reliably when (a) all critical approvals necessary for commencement of the project have been obtained; (b) the stage of completion of the project reaches a reasonable level of development i.e. the expenditure incurred on construction and development costs is at least 10% of the construction and development costs or Rs 5 crore spend whichever is higher.

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. Amounts received before the related work is performed are included in the balance sheet, as a liability, as advances received from customer. Amounts billed for work performed but not yet paid by the customer are included in the balance sheet under trade receivables.

2.6 Leasing arrangement

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

2.6.1 The Company as lessor

Amounts due from lessees under finance leases are recognised as receivables at the amount of 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 Company's net investment outstanding in respect of the leases.

Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Company's expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

2.6.2 The Company as lessee

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in Profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's general policy on borrowing costs (see note 2.8 below). Contingent rentals are recognised as expenses in the periods in which they are incurred. Rental expense from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor's expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

2.7 Foreign Currencies

The functional currency of the Company is Indian rupee (Rs).

Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses arising on settlement and restatement are recognised in the statement of Profit and loss. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated. Exchange differences on monetary items are recognised in Profit or loss in the period in which they arise except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.

2.8 Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in statement of Profit and loss in the period in which they are incurred.

2.9 Government Grant

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grant will be received.

Government grants relating to income are determined and recognised in the Profit and loss over the period necessary to match them with the cost that they are intended to compensate and presented within other income.

Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to Profit and loss on a straight line basis over the expected life of the related assets and presented within other operating income.

The benefit of a Government loan at a below market rate of interest is treated as a Government grant, measured as the difference between proceeds received and the fair value of loan based on prevailing market interest rates.

2.10 Employee Benefits 2.10.1 Defined contribution plans

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

2.10.2 Defined benefits plans

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to Profit or loss. Past service cost is recognised in Profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. The retirement benefit obligation recognised in the balance sheet represents the actual defficit or surplus in the Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

2.10.3 Short-term and other long-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting date.

2.11 Income Taxes

2.11.1 Current and deferred tax for the year

Income tax expense comprises of current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred tax are recognised in Profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

2.11.2 Current tax

The tax currently payable is based on taxable Profit for the year. Taxable Profit differs from ‘Profit before tax' as reported in the statement of Profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

2.11.3 Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable Profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable Profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable Profit nor the accounting Profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable Profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

For operations carried out under tax holiday period (80IA benefits of Income Tax Act, 1961), deferred tax assets or liabilities, if any, have been established for the tax consequences of those temporary differences between the carrying values of assets and liabilities and their respective tax bases that reverse after the tax holiday ends.

Deferred tax assets and liabilities are o_set when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set o_ against future income tax liability. Accordingly, MAT is recognised as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.

2.12 Property plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use and for qualifying assets, borrowing costs capitalised in accordance with the Company's accounting policy. Depreciation commences when the assets are ready for their intended use.

Freehold land and Assets held for sale are not depreciated.

Regulatory Assets:

Depreciation on Property, plant and equipment in respect of electricity business of the Company covered under Part B of Schedule II of the Companies Act, 2013, has been provided on the straight line method at the rates using the methodology as notified by the respective regulators.

Non Regulatory Assets:

Depreciation is recognised so as to write o_ the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Estimated useful lives of the Regulatory and Non Regulatory assets are as follows:

Type of asset Useful lives
Hydraulic Works 35 years
Buildings-Plant 25 to 35 years
Buildings-Others 25 to 35 years
Coal Jetty 25 years
Railway Sidings, Roads, Crossings, etc. 25 to 35 years
Plant and Equipment 25 to 35 years
Transmission Lines, Cable Network, etc. 25 to 35 years
Furniture and Fixtures 5 to 15 years
Office Equipment 5 years
Motor Vehicles, Launches, Barges, etc. 5 years
Helicopters 35 years

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in Profit or loss.

2.13 Intangible assets

2.13.1 Intangible assets acquired separately

Intangible assets that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

2.13.2 Internally generated intangible assets

Expenditure on research activities is recognised as an expense in the period in which it is incurred.

An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:

• the technical feasibility of completing the intangible asset so that it will be available for use or sale;

• the intention to complete the intangible asset and use or sell it;

• the ability to use or sell the intangible asset;

• how the intangible asset will generate probable future economic benefits;

• the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

• the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in Profit or loss in the period in which it is incurred.

Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

2.13.3 Derecognition of Intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in Profit or loss when the asset is derecognised.

2.13.4 Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

Type of asset Useful lives
Technical Know-How and Prototypes 5 years
Licences 5 years
Computer Software 5 years

2.14 Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Company of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in Profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in Profit or loss.

2.15 Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on weighted average basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

2.16 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

2.16.1 Onerous Contracts

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract.

2.16.2 Warranties

Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sale of the relevant products, at the Company's best estimate of the expenditure required to settle the Company's obligation.

2.17 Financial Instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through Profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through Profit or loss are recognised immediately in statement of Profit and loss.

2.18 Financial Assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets

2.18.1 Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

2.18.2 Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cashflows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments through other comprehensive income'. The cumulative gain or loss is not reclassified to Profit or loss on disposal of the investments.

2.18.3 Financial assets at fair value through Profit or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading.

Other financial assets are measured at fair value through Profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through Profit or loss are immediately recognised in Profit or loss.

2.18.4 Investment in Subsidiaries, Jointly Controlled Entities and Associates

Investment in subsidiaries, jointly controlled entities and associates are measured at cost as per Ind AS 27 - Separate Financial Statements.

2.18.5 Impairment of financial assets (other than at fair value)

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired.

Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

2.19 Financial liabilities and equity instruments 2.19.1 Classification as debt or equity

Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2.19.2 Equity Instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company entity are recognised at the proceeds received, net of direct issue costs. Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in statement of Profit and loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.

2.19.3 Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method.

2.19.4 Financial guarantee contracts

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Financial guarantee contracts issued by a Company are initially measured at their fair values and, if not designated as at FVTPL, are subsequently measured at the higher of:

• the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and

• the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 18.

2.20 Derivative financial instruments

The Company enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts and cross currency swaps.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in Profit or loss immediately.

2.21 Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

2.22 Cash Flow Statement

Cash flows are reported using the indirect method, where by Profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.23 Earnings per equity share

Basic earnings per equity share is computed by dividing the net Profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net Profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e.the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

2.24 Standards issued but not yet effective

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ‘Statement of cash flows' and Ind AS 102, ‘Share-based payment'. The amendments are applicable to the Company from 1st April, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and its impact on its cash flows, which are not expected to be material.

Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modifification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes.

It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values', but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modifified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modifification. Further, the amendment requires the award that include a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The Company does not have any scheme of share based payments and hence the requirements of the amendment will not have any impact on the financial statements.

3. Critical accounting estimates and judgements

In the application of the Company's accounting policies, the directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates are:

Estimation of current tax and deferred tax expense - Note 24 and 33

Estimated fair value of unquoted securities and impairement of investments - Note 34 Estimation of defined benefit obligation - Note 39 Regulatory deferral accounts - Note 18 Estimation of values of contingent liabilities - Note 37

Estimates and judgement are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

4. Property, Plant and Equipment

Description Freehold Land Hydraulic Works Buildings - Plant Buildings - Others @ Coal Jetty Roads, Railway sidings, crossings, etc. Plant and Equipment Transmission lines and cable network Furniture and Fixtures O_ce Equipment Motor Vehicles, Launches, Barges, etc Helicopters Total
Cost
Balance as at 1st April, 2016 342.40 534.97 840.71 220.05 106.10 44.59 9,143.06 2,603.43 75.63 30.30 22.73 37.01 14,000.98
Additions 2.22 0.90 44.96 7.30 Nil 2.47 297.97 186.58 2.97 1.44 Nil Nil 546.81
Disposals Nil Nil 1.30 1.68 Nil 0.01 66.56 1.06 0.27 0.25 Nil Nil 71.13
Reclassified as held for sale 49.83 0.34 6.81 Nil Nil 0.57 58.24 2.94 Nil Nil Nil Nil 118.73
Balance as at 31st March, 2017 294.79 535.53 877.56 225.67 @ 106.10 46.48 9,316.23 2,786.01 78.33 31.49 22.73 37.01 14,357.93
Accumulated depreciation and impairment
Balance as at 1st April, 2016 Nil 257.84 204.86 71.81 39.19 19.65 4,220.31 839.59 35.47 19.11 17.66 23.96 5,749.45
Depreciation Expense Nil 12.66 26.03 6.80 5.60 1.57 406.72 111.74 6.00 2.97 0.68 3.15 583.92
Eliminated on disposal of assets Nil Nil 0.83 0.80 Nil 0.01 58.35 0.99 0.22 0.23 Nil Nil 61.43
Reclassified as held for sale Nil 0.18 1.92 Nil Nil 0.21 40.85 1.06 Nil Nil Nil Nil 44.22
Balance as at 31st March, 2017 Nil 270.32 228.14 77.81 44.79 21.00 4,527.83 949.28 41.25 21.85 18.34 27.11 6,227.72
Net carrying amount
As at 31st March, 2017 294.79 265.21 649.42 147.86 61.31 25.48 4,788.40 1,836.73 37.08 9.64 4.39 9.90 8,130.21
As at 31st March, 2016 342.40 277.13 635.85 148.24 66.91 24.94 4,922.75 1,763.84 40.16 11.19 5.07 13.05 8,251.53
Rs crore
Description Freehold Land Hydraulic Works Buildings - Plant Buildings - Others @ Coal Jetty Roads, Railway sidings, crossings, etc. Plant and Equipment Transmission lines and cable network Furniture and Fixtures O_ce Equipment Motor Vehicles, Launches, Barges, etc Helicopters Total
Cost
Balance as at 1st April, 2015 338.80 534.30 777.84 213.46 106.10 44.05 8,958.38 2,354.80 70.63 28.70 24.00 37.00 13,488.06
Additions 3.60 0.67 85.92 6.59 Nil 0.54 407.09 253.52 5.61 2.05 0.14 0.01 765.74
Disposals Nil Nil 23.05 Nil Nil Nil 222.41 4.89 0.61 0.45 1.41 Nil 252.82
Balance as at 31st March, 2016 342.40 534.97 840.71 220.05 @ 106.10 44.59 9,143.06 2,603.43 75.63 30.30 22.73 37.01 14,000.98
Accumulated depreciation and impairment
Balance as at 1st April, 2015 Nil 240.67 198.38 66.66 33.59 18.00 4,018.31 742.05 29.78 14.08 17.36 20.81 5,399.69
Depreciation Expense Nil 17.17 25.53 5.15 5.60 1.65 393.14 101.64 5.78 5.33 1.47 3.15 565.61
Eliminated on disposal of assets Nil Nil 19.05 Nil Nil Nil 191.14 4.10 0.09 0.30 1.17 Nil 215.85
Balance as at 31st March, 2016 Nil 257.84 204.86 71.81 39.19 19.65 4,220.31 839.59 35.47 19.11 17.66 23.96 5,749.45
Net carrying amount
As at 31st March, 2016 342.40 277.13 635.85 148.24 66.91 24.94 4,922.75 1,763.84 40.16 11.19 5.07 13.05 8,251.53
As at 1st April, 2015 338.80 293.63 579.46 146.80 72.51 26.05 4,940.07 1,612.75 40.85 14.62 6.64 16.19 8,088.37

Notes:

@ Buildings include Rs * being cost of ordinary shares in co-operative housing societies. * Denotes figures below Rs 50,000/-.

5. Intangible Assets

Rs crore
Computer software $ Copyrights, patents, other intellectual property rights, services and operating rights # Licences and franchises $ Total
Cost
Balance as at 1st April, 2016 147.98 68.82 0.26 217.06
Additions 64.28 35.34 Nil 99.62
Balance as at 31st March, 2017 212.26 104.16 0.26 316.68
Accumulated amortisation and impairment
Balance as at 1st April, 2016 49.03 27.23 0.26 76.52
Amortisation expense 34.39 15.90 Nil 50.29
Balance as at 31st March, 2017 83.42 43.13 0.26 126.81
Net carrying amount
As at 31st March, 2017 128.84 61.03 Nil 189.87
As at 31st March, 2016 98.95 41.59 Nil 140.54
Rs crore
Computer software $ Copyrights, patents, other intellectual property rights, services and operating rights # Licences and franchises $ Total
Cost
Balance as at 1st April, 2015 124.32 55.08 0.26 179.66
Additions 23.66 13.74 Nil 37.40
Balance as at 31st March, 2016 147.98 68.82 0.26 217.06
Accumulated amortisation and impairment
Balance as at 1st April, 2015 21.32 16.09 0.26 37.67
Amortisation expense 27.71 11.14 Nil 38.85
Balance as at 31st March, 2016 49.03 27.23 0.26 76.52
Net carrying amount
As at 31st March, 2016 98.95 41.59 Nil 140.54
As at 1st April, 2015 103.00 38.99 Nil 141.99

Notes:

# Internally generated intangible assets. $ Other than internally generated intangible assets. Depreciation/Amortisation:

For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
Depreciation on Tangible Assets 583.92 565.61
Add: Amortisation on Intangible Assets 50.29 38.85
Total 634.21 604.46

6. Non-current Investments

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Face Value (in Rs unless stated otherwise) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Quantity Quantity Quantity Rs crore Rs crore Rs crore
I Investments carried at cost less impairment, if any
(a) Investment in Subsidiaries
(i) Investment in Equity Shares fully Paid-up (unless otherwise stated)
Quoted
NELCO Ltd 1,10,99,630 1,10,99,630 1,10,99,630 10 11.07 11.07 11.07
Unquoted
Chemical Terminal Trombay Ltd 1,86,200 1,86,200 1,86,200 100 37.81 37.81 37.81
Tata Power Trading Co. Ltd 1,60,00,000 1,60,00,000 1,60,00,000 10 37.09 37.00 37.00
Maithon Power Ltd 111,65,99,120 111,65,99,120 111,65,99,120 10 1,116.83 1,116.83 1,116.83
Coastal Gujarat Power Ltd.# 608,34,20,000 603,04,20,000 598,05,70,000 10 6,676.26 6,443.85 6,047.90
Bhira Investments Ltd 10,00,000 10,00,000 10,00,000 USD 1 4.10 4.10 4.10
Bhivpuri Investments Ltd 7,46,250 7,46,250 7,46,250 Euro 1 4.08 4.08 4.08
Khopoli Investments Ltd 4,70,07,350 4,70,07,350 4,70,07,350 USD 1 255.20 255.20 255.20
Trust Energy Resources Pte. Ltd 12,91,53,344 12,47,63,344 12,47,63,344 USD 1 607.95 575.02 575.02
Tata Power Delhi Distribution Ltd 28,15,20,000 28,15,20,000 28,15,20,000 10 200.93 200.93 200.93
Tata Power Jamshedpur Distribution Ltd. 80,50,000 80,50,000 50,000 10 8.05** 8.05** 0.05
Industrial Power Utility Ltd 1,10,000 1,10,000 1,10,000 10 0.11 0.11 0.11
Tata Ceramics Ltd. (Refer Note 6 below) 91,10,000 91,10,000 91,10,000 2 9.11** 9.11** 9.11 **
Tata Power Renewable Energy Ltd.# 56,61,07,715 50,61,07,715 48,76,07,715 10 575.05 506.11 487.61
Tata Power Solar Systems Ltd 2,29,77,567 2,29,77,567 67,77,567 100 322.98 322.98 148.31
Tata Power International Pte. Ltd 6,77,30,650 1,79,50,000 1,79,50,000 USD 1 577.55 264.35 264.35
Af-Taab Investment Co. Ltd 10,73,000 10,73,000 10,73,000 100 68.68 68.68 68.68
10,501.78 9,854.21 9,257.09
** Less: Impairment in the value of Investments 17.16 17.16 9.11
10,484.62 9,837.05 9,247.98
(ii) Investment in Perpetual Securities
Unquoted
Tata Power Renewable Energy Ltd. (Refer Note 5 below) N.A. Nil Nil 3,895.00 Nil Nil
Coastal Gujarat Power Ltd. (Refer Note 5 below) N.A. Nil Nil 4,459.89 Nil Nil
18,850.58 9,848.12 9,259.05
(b) Investment in Associates
(i) Investment in Equity Shares fully Paid-up (unless otherwise stated)
Quoted
Tata Communications Ltd 1,34,22,037 1,34,22,037 1,34,22,037 10 343.81 343.81 343.81
Unquoted
Yashmun Engineers Ltd 19,200 19,200 19,200 100 0.01 0.01 0.01
The Associated Building Co. Ltd 1,400 1,400 1,400 900 0.13 0.13 0.13
Tata Projects Ltd 9,67,500 9,67,500 9,67,500 100 85.01 85.01 85.01
Rujuvalika Investments Ltd Nil Nil 1,83,334 10 Nil Nil 0.30
Dagachhu Hydro Power Corporation Ltd 10,74,320 10,74,320 10,74,320 Nu 1,000 107.43 107.43 107.43
Panatone Finvest Ltd 59,08,82,000 59,08,82,000 59,08,82,000 10 600.00 600.00 600.00
792.58 792.58 792.88
1,136.39 1,136.39 1,136.69
(c) Investment in Joint Ventures
(I) Investment in Equity Shares fully Paid-up (unless otherwise stated)
Unquoted
Tubed Coal Mines Ltd.# 1,81,97,800 1,81,17,800 1,78,36,000 10 18.20** 18.12** 17.84 **
Itezhi Tezhi Power Corporation 4,52,500 4,52,500 Nil ZMW 1 275.74 275.74 Nil
Carried over 20,280.91 11,278.37 10,413.58
Brought forward 20,280.91 11,278.37 10,413.58
Mandakini Coal Company Ltd.# 3,93,00,000 3,93,00,000 3,93,00,000 10 39.30** 39.30** 39.30 **
Powerlinks Transmission Ltd.# 23,86,80,000 23,86,80,000 23,86,80,000 10 238.68 238.68 238.68
Industrial Energy Ltd.# 49,28,40,000 49,28,40,000 46,53,12,000 10 492.84 492.84 465.31
LTH Milcom Private Limited 66,660 Nil Nil 10 0.07 Nil Nil
Dugar Hydro Power Ltd 4,32,50,002 4,32,50,002 3,80,00,002 10 43.25** 43.25 38.00
1,108.08 1,107.93 799.13
** Less: Impairment in the value of Investments 75.50 57.42 37.10
1,032.58 1,050.51 762.03
21,019.55 12,035.02 11,157.77
II Investments carried at Fair Value through Statement of
Profit and Loss
Investments in Subsidiaries
Investment in Preference Shares fully Paid-up (unless otherwise stated)
Unquoted
Tata Power International Pte. Ltd Nil 6,48,59,930 6,48,59,930 USD 1 Nil 258.27 243.65
III Investments carried at Fair Value through Other
Comprehensive Income
Investment in Equity Shares fully Paid-up (unless otherwise stated)
Quoted
HDFC Bank Ltd 7,500 7,500 7,500 2 1.08 0.80 0.77
IDBI Bank Ltd 1,42,720 1,42,720 1,42,720 10 1.07 1.00 1.01
Voltas Ltd 2,33,420 2,33,420 2,33,420 1 9.62 6.49 6.53
Tata Consultancy Services Ltd 452 452 452 1 0.11 0.12 0.12
Tata Teleservices (Maharashtra) Ltd Nil 13,72,63,174 13,72,63,174 10 Nil* 90.59 107.75
11.88 99.00 116.18
Unquoted
Tata Services Ltd 1,112 1,112 1,112 1,000 Nil Nil Nil
Indian Energy Exchange Ltd Nil 12,50,000 12,50,000 10 Nil* 98.04 70.07
Tata Industries Ltd 58,28,126 58,28,126 58,28,126 100 102.69 102.69 102.69
Tata Sons Ltd 6,673 6,673 6,673 1,000 241.95 241.95 241.95
Haldia Petrochemicals Ltd 2,24,99,999 2,24,99,999 2,24,99,999 10 56.48 56.48 56.48
Tata Teleservices Ltd.# 32,83,97,823 32,83,97,823 32,83,97,823 10 384.88 509.34 766.48
786.00 1,008.50 1,237.67
797.88 1,107.50 1,353.85
IV Investments carried at Amortised Cost
(a) Investment in Subsidiaries
(i) Investment in Preference Shares fully Paid-up (unless otherwise stated)
Unquoted
Tata Power Delhi Distribution Ltd 2,55,00,000 2,55,00,000 2,55,00,000 100 255.00 255.00 255.00
Tata Power Solar Systems Ltd Nil Nil 45,00,000 100 Nil Nil 45.00
255.00 255.00 300.00
(b) Statutory Investments
(i) Contingencies Reserve Fund Investments
Government Securities (Unquoted)
7.88% GOI (2030) 10,00,000 10,00,000 Nil 100 10.00 10.00 Nil
6.79% GOI (2029) 10,00,000 Nil Nil 100 9.59 Nil Nil
8.28% GOI (2027) 11,30,000 11,30,000 11,30,000 100 11.30 11.30 11.30
Carried over 22,103.32 13,677.09 13,066.57
8.24% GOI (2027) 9,65,000 9,65,000 9,65,000 100 9.65 9.65 9.65
8.33% GOI (2026) 7,50,000 7,50,000 7,50,000 100 7.50 7.50 7.50
7.16% GOI (2023) 9,00,000 9,00,000 Nil 100 9.00 9.00 Nil
6.84% GOI (2022) 66,000 Nil Nil 100 0.67 Nil Nil
8.19% GOI (2020) 7,03,000 7,03,000 7,03,000 100 7.03 7.03 7.03
6.35% GOI (2020) 16,01,300 16,01,300 16,01,300 100 16.01 16.01 16.01
7.83% GOI (2018) 10,00,000 10,00,000 10,00,000 100 10.00 10.00 10.00
7.99% GOI (2017) Nil 8,48,700 8,48,700 100 Nil 8.49 8.49
7.49% GOI (2017) Nil 7,36,000 7,36,000 100 Nil 7.36 7.36
7.59% GOI (2016) Nil Nil 19,000 100 Nil Nil 0.19
90.75 96.34 77.53
(ii) Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
8.28% GOI (2027) 61,45,000 61,45,000 61,45,000 100 61.45 61.45 61.45
8.20% GOI (2025) 20,00,000 20,00,000 20,00,000 100 20.00 20.00 20.00
7.35% GOI (2024) 31,00,000 31,00,000 31,00,000 100 31.00 31.00 31.00
8.15% GOI (2022) 29,75,000 29,75,000 29,75,000 100 29.75 29.75 29.75
8.19% GOI (2020) 19,40,000 19,40,000 19,40,000 100 19.40 19.40 19.40
6.35% GOI (2020) 2,48,700 2,48,700 2,48,700 100 2.49 2.49 2.49
6.05% GOI (2019) 42,00,000 42,00,000 42,00,000 100 42.00 42.00 42.00
6.25% GOI (2018) Nil 15,00,000 15,00,000 100 Nil 15.00 15.00
7.99% GOI (2017) Nil 33,49,300 33,49,300 100 Nil 33.49 33.49
7.49% GOI (2017) Nil 25,00,000 25,00,000 100 Nil 25.00 25.00
206.09 279.58 279.58
(iii) Others
Government Securities (Unquoted)
8.07% GOI (2017) Nil Nil 3,000 100 Nil Nil 0.03
296.84 375.92 357.14
551.84 630.92 657.14
Total 22,369.27 14,031.71 13,412.41
* Re-classified as Asset Held For Sale (Refer Note 17)
** Impairment in value of Investments
# Refer Note 37(c)(ii)
Notes:
1. Aggregate Market Value of Quoted Investments 1,068.43 705.37 759.07
2. Aggregate Carrying Value of Quoted Investments 366.76 453.88 471.06
3. Aggregate Carrying Value of Unquoted Investments 22,095.17 13,652.41 12,987.56
4. Aggregate amount of impairment in value of Investments 92.66 74.58 46.21

5. The Company has invested in unsecured subordinated perpetual securities issued by Tata Power Renewable Energy Limited and Coastal Gujarat Power Limited, its subsidiary companies. These securities are redeemable at the issuer's option and carry non-cumulative interest coupon at the rate of dividend paid on the issuer's ordinary shares. The interest can be deferred if the issuer does not pay any dividend on its ordinary shares for the financial year. The issuer has classified this instrument as equity under Ind AS -32 Financial Instruments Presentation. Accordingly, the Company has classified this investment as Equity Instrument and has accounted at cost as per Ind AS -27 Separate Financial Statements.

6 The Company, along with its subsidiary, has 30.68% shareholding in Tata Ceramics Limited (TCL). Further, TCL has issued Redeemable Cumulative Convertible Preference Shares which have been fully subscribed by the Company's subsidiaries. As the dividend on the said Preference Shares has remained unpaid for more than two years, the preference shareholders have assumed voting rights along with the equity shareholders. The aggregate voting power (together with voting power on preference shares) with the Company along with its subsidiaries is at 57.07%.

The Company has assessed its control over TCL based on whether the Company has practical ability to direct TCL's relevant activities unilaterally. After the assessment, the Company concluded that it has sufficiently dominant voting interest to direct TCL's relevant activities and therefore the Company has control over TCL. Accordingly, investment in the said Company has been considered as investment in subsidiary.

7. Trade Receivables

(Unsecured unless otherwise stated)

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Non-current Trade Receivables
Trade Receivables from Others 185.76 185.76 185.76
Total 185.76 185.76 185.76
Current Trade Receivables
As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Considered good 1,234.26 1,057.23 1,559.38
Considered doubtful 43.70 24.40 22.54
1,277.96 1,081.63 1,581.92
Less: Allowance for Doubtful Trade Receivables 43.70 24.40 22.54
Total 1,234.26 1,057.23 1,559.38

Company holds security deposits of Rs 174.57 crore (31st March, 2016 - Rs 170.29 crore, 1st April, 2015 - Rs 152.21 crore) in respect of Electricity Receivables.

7.1 Trade Receivables

The average credit period for the Company's receivables from its generation, transmission, distribution and project management services is in the range of 15 to 60 days. No interest is charged on trade receivables till the due date. Thereafter, interest is charged at an average of 1.25% per month for retail electricity consumers on the outstanding balance.

Of the trade receivables balance as at 31st March, 2017, Rs 902.66 crore is due from Brihanmumbai Electric Supply & Transport Undertaking, Reliance Infrastructure Ltd., Maharashtra State Electricity Transmission Company Limited, Tata Steel Limited and Ministry of Defence which represents Company's large customers. There is no other customer which individually represents more than 5% of the total balance of trade receivables. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows:

Ageing Expected Credit loss (%)

Within the credit period 0.04% 1 - 90 days past due 0.27% 91 - 182 days past due 0.04% More than 182 days past due 5.76%

Age of receivables As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Within the credit period 771.48 753.46 766.98
1 - 90 days past due 121.00 64.86 481.12
91 - 182 days past due 126.39 34.66 157.56
More than 182 days past due 444.85 414.41 362.02
Movement in the allowance for doubtful trade receivables As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Balance at the beginning of the year 24.40 22.54 23.42
Add: Expected credit loss allowance on trade receivables calculated at lifetime expected credit losses for the year 1.87 1.86 (0.88)
Add: Specific allwance on trade receivables for the year $ 17.43 Nil Nil
Balance at the end of the year 43.70 24.40 22.54

$ As at 31st March, 2017, certain Trade Receivables have been unable to make payments for outstanding amounts of Rs 17.43 crore as the amounts are disputed. Consequent to termination of the contract with the customers, the management believes it is prudent to provide for the specific allowance.

The concentration of credit risk is very limited due to the fact that the large customers are mainly government entities and remaining customer base is large and widely dispersed and secured with adequate security deposit.

8. Loans

(Unsecured unless otherwise stated)

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Non-current
Loans to Related Parties
Considered good 15.48 3,636.85 2,858.66
Considered doubtful 55.46 55.43 1.27
70.94 3,692.28 2,859.93
Less: Allowance for Doubtful Loans 55.46 55.43 1.27
15.48 3,636.85 2,858.66
Other Loans
Loans to Employees 7.34 7.60 8.62
Total 22.82 3,644.45 2,867.28
As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Current
Loans to Related Parties Nil 106.00 39.86
Total Nil 106.00 39.86

9. Finance Lease Receivable

(Unsecured unless otherwise stated)

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Finance Lease Receivable - Non-current 573.47 617.63 661.09
Finance Lease Receivable - Current 39.16 48.80 42.51

9.1 Leasing Arrangements

The Company has entered into Power Purchase Agreements (PPA) with a customer for its assets located at Jojobera. The assets relate to 30 years of take or pay agreements with the customer to supply electricity at a fixed plus variable charge. The customer, during the term of the PPAs has a right to purchase the assets and at the end of the contract is obligated to purchase same on the basis of the valuation determined under the PPAs. This arrangement analysis pursuant to Ind AS 17 "Leases" identified an embedded finance lease and accordingly, the said arrangement has been accounted as per Ind AS 17.

9.2 Amount receivable under Finance Lease

Minimum Lease Payments Present value of minimum lease payments
As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore Rs crore Rs crore Rs crore
Not later than one year 107.58 138.42 139.06 23.37 48.73 43.10
Later than one year and not later than five years 504.71 512.42 550.35 133.47 123.14 142.10
Later than five years 795.49 900.42 994.99 455.79 494.56 518.40
1,407.78 1,551.26 1,684.40 612.63 666.43 703.60
Unearned finance income 795.15 884.83 980.80 Nil Nil Nil
Present value of minimum lease payments receivable 612.63 666.43 703.60 612.63 666.43 703.60
Allowance for uncollectible lease payments Nil NIl Nil Nil Nil Nil
612.63 666.43 703.60 612.63 666.43 703.60

The interest rate inherent in the leases is fixed at the contract for the entire lease term. The average effective interest rate contracted is approximately in the range of 12.76% - 16.34% per annum (as at 31st March, 2016: 12.76% - 16.34% per annum, as at 1st April 2015: 12.76% - 16.34% per annum)

10. Other Financial Assets

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Non-current
(i) Accruals
Unsecured, considered good
Interest Accrued on Financial Assets from
Reated Parties Nil 34.14 12.81
Interest Accrued on Loans to Related Parties Nil 311.59 312.82
Doubtful
Interest Accrued on Loans to Related Parties 1.24 1.24 Nil
1.24 346.97 325.63
Less: Allowance for Doubtful Interest 1.24 1.24 Nil
Nil 345.73 325.63
(ii) Security Deposits
Unsecured, considered good 53.46 50.78 62.08
Doubtful 31.93 29.43 22.59
85.39 80.21 84.67
Less: Allowance for Doubtful Deposits 31.93 29.43 22.59
53.46 50.78 62.08
(iii) Others
Unsecured, considered good
Advance towards Equity 168.00 Nil Nil
Regulatory Assets other than Distribution
Business 460.09 609.75 950.76
Other Advances [Refer Note 34(c)] 138.55 Nil Nil
766.64 609.75 950.76
Total 820.10 1,006.26 1,338.47
As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Current
(i) Accruals
Unsecured, considered good
Interest Accrued on Inter-corporate/Bank
Deposits Nil 0.48 5.05
Interest Accrued on Investments 6.42 6.30 5.86
Interest Accrued on Finance Lease Receivable 11.73 12.08 12.66
Interest Accrued on Financial Assets at
Amortised Cost 30.60 30.60 38.29
Interest Accrued on Loans to Related Parties 1.35 1.33 37.40
Doubtful
Interest Accrued on Inter-corporate Deposits 1.49 4.02 Nil
51.59 54.81 99.26
Less: Allowance for Doubtful Interest 1.49 4.02 Nil
50.10 50.79 99.26
(ii) Security Deposits
Unsecured, considered good 0.59 3.61 3.65
(iii) Inter-corporate Deposits
Unsecured, considered good Nil 24.00 24.00
(iv) Others
Unsecured, considered good
Regulatory Assets other than Distribution
Business 212.64 85.09 Nil
Dividend Receivable 92.23 Nil 75.00
Derivative Contracts Nil 12.17 15.90
Insurance Claims Receivable 21.15 36.40 54.02
326.02 133.66 144.92
Total 376.71 212.06 271.83

11. Non-current Tax Assets

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Advance Income-tax (Net) Nil Nil 49.52
Total Nil Nil 49.52

12. Other Assets

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Non-current
(i) Capital Advances
Unsecured, considered good 39.94 36.43 17.68
Doubtful 0.21 0.24 0.72
40.15 36.67 18.40
Less: Allowance for Doubtful Advances 0.21 0.24 0.72
39.94 36.43 17.68
(ii) Security Deposits
Unsecured, considered good 227.00 227.00 227.00
(iii) Balances with Government Authorities
Unsecured, considered good
Advances 27.09 0.10 Nil
Amount Paid Under Protest 164.96 164.93 164.97
VAT/Sales Tax Receivable 76.14 103.34 131.24
268.19 268.37 296.21
(iv) Unamortised Premium for Leasehold Land
Unsecured, considered good 549.46 582.55 595.02
(v) Others
Unsecured, considered good
Prepaid Expenses 9.31 16.42 20.34
Others 11.25 13.19 9.23
Doubtful 2.22 2.15 4.29
22.78 31.76 33.86
Less: Allowance for Doubtful Advances 2.22 2.15 4.29
20.56 29.61 29.57
Total 1,105.15 1,143.96 1,165.48
Current
(i) Balances with Government Authorities
Unsecured, considered good
Advances 34.72 54.16 36.63
(ii) Unamortised Premium for Leasehold Land
Unsecured, considered good 14.50 14.50 14.50
(iii) Others
Unsecured, considered good
Prepaid Expenses 14.83 15.21 19.32
Advances to Vendors 197.28 215.61 214.31
Other Advances 12.50 45.58 11.80
Doubtful 1.47 1.47 1.47
226.08 277.87 246.90
Less: Allowance for Doubtful Advances 1.47 1.47 1.47
224.61 276.40 245.43
Total 273.83 345.06 296.56

13. Inventories

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Inventories (lower of cost and net realisable value)
(a) Raw Materials
Fuel - Stores 202.68 273.60 291.79
Fuel-in-Transit 107.08 60.05 53.71
(b) Work-In-Progress 22.83 15.45 Nil
(c) Stores and Spares
Stores and Spare Parts 257.06 262.31 259.86
Stores-in-Transit 4.44 15.01 13.69
(d) Loose Tools 0.30 0.25 0.22
(e) Others
Property under Development 76.70 62.38 49.91
Total 671.09 689.05 669.18

During the year ended 31st March, 2017 the Company has recognised Rs 62.74 crore (31st March, 2016 - Rs Nil) as an expense for inventories carried at net realisable value.

14. Current Investments

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015 Face Value (in unless stated otherwise) As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Quantity Quantity Quantity Rs crore Rs crore Rs crore
I Investment carried at Amortised Cost
Statutory Investments
Contingency Reserve Fund Investments
Government Securities (Unquoted)
7.49% GOI (2017) 7,36,000 Nil Nil 100 7.36 Nil Nil
7.99% GOI (2017) 8,48,700 Nil Nil 100 8.49 Nil Nil
7.59% GOI (2016) Nil 19,000 Nil 100 Nil 0.19 Nil
15.85 0.19 Nil
Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
6.25% GOI (2018) 1,500,000 Nil Nil 100 15.00 Nil Nil
7.49% GOI (2017) 25,00,000 Nil Nil 100 25.00 Nil Nil
7.99% GOI (2017) 33,49,300 Nil Nil 100 33.49 Nil Nil
73.49 Nil Nil
Other Investments
Government Securities (Unquoted)
8.07% GOI (2017) Nil 3,000 Nil 100 Nil 0.03 Nil
89.34 0.22 Nil
II Investments carried at Fair Value through Profit and Loss
Mutual Funds (Unquoted)
JM High Liquidity Fund - Direct Plan - Growth Nil Nil 55,234 1,000 Nil Nil 14.01
Tata Money Market Fund - Direct Plan - Growth.. Nil Nil 54,228 1,000 Nil Nil 14.01
Religare Invesco Liquid Fund - Direct Plan - Growth Nil Nil 72,771 1,000 Nil Nil 14.00
Nil Nil 42.02
Total 89.34 0.22 42.02

15. Cash and Cash Equivalents

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
(i) Balances with Banks:
In Current Accounts 43.56 32.60 61.82
In Deposit Accounts (with original maturity less than three months) 98.00 1.22 204.00
(ii) Cheques on Hand Nil Nil 0.02
(iii) Cash on Hand 0.04 0.01 0.01
Cash and Cash Equivalents as per Balance Sheet 141.60 33.83 265.85
Bank Overdraft (Refer Note 26) (0.32) (148.93) Nil
Cash and Cash Equivalents as per Statement of Cash Flows 141.28 (115.10) 265.85

16. Other Balances with Banks

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
(a) In Deposit Accounts 1.94 0.71 1.94
(b) In Earmarked Accounts-
Unpaid Dividend Account 12.53 11.35 11.48
Total 14.47 12.06 13.42

17. Assets classified as held for sale

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Freehold land held for sale (i) 15.83 Nil Nil
Property, Plant and Equipment held for sale (ii) 24.68 Nil Nil
Investments carried at Fair Value through Other
Comprehensive Income (iii) 195.21 Nil Nil
Total 235.72 Nil Nil
Liabilities associated with assets held for sale Nil Nil Nil

(i) (a) The Company had a power generation unit at Belgaum, Karnataka. Operations at the unit have been discontinued on 28th February, 2013 with conclusion of Power Purchase Agreement with the customers. The Company has disposed of majority of the assets located at the unit and is in the process of disposing of the Freehold land. During the year ended 31st March, 2017, the Company has reclassified the said land as asset held for sale. No impairment loss has been recognised on reclassification as the Company expects that the fair value (estimated based on the recent market prices of similar properties in similar locations) less costs to sell is higher than the carrying amount of Rs 2.90 crore as at 31st March, 2017.

(b) The Company was in the process of setting up a thermal power generation unit in Jharkhand state and accordingly had acquired Freehold land at Tiruldih. Coal for the unit was planned to be sourced from Tubed coal block in Latehar district. However, in 2014, the H'onble Supreme Court de-allocated the said coal block. As a result, the project was left with no fuel supply and has become unviable. Hence, the Company has decided to dispose of the Freehold land at Tiruldih. During the year ended 31st March, 2017, the Company has reclassified the said land as asset held for sale. Accordingly, the Freehold Land is being carried in the books at its fair value less cost to sell of Rs 9.72 crore (i.e. fair value estimated based on market price of similar properties near the location less costs to sell the land) resulting in the recognition of Rs 34 crore as impairment loss in the statement of Profit and loss.

(c) The Company has ceased power generation at its Diesel (DG set) based unit at Vadaval, Maharashtra and has disposed of the DG sets. The Company is in the process of disposing freehold land. During the year ended 31st March, 2017, the Company has reclassified the said freehold land at the the said unit as asset held for sale. No impairment loss has been recognised on reclassification as the Company expects that the fair value (estimated based on the recent market prices of similar properties in similar locations) less costs to sell is higher than the carrying amount Rs 3.21 crore as at 31st March, 2017.

(ii) The Company has ceased power generation at Unit 4 at Trombay, Maharashtra and has initiated process for disposal of its assets. During the year ended 31st March, 2017, the Company has reclassified property, plant and equipment at the said unit as asset held for sale. No impairment loss has been recognised on reclassification as the Company expects that the estimated fair value less costs to sell is higher than the carrying amount of Rs 24.68 crore as at 31st March, 2017.

(iii) The Company has decided to divest certain portion of its investments carried at fair value through other comprehensive income in Tata Teleservices (Maharashtra) Limited and Indian Energy Exchange Limited. Hence, the said investments have been classified as held for sale at fair value of Rs 195.21 crore as at 31st March, 2017.

18. Regulatory Deferral Account

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Regulatory Deferral Account - Liability
Regulatory Liabilities 656.00 680.38 18.36
Total 656.00 680.38 18.36
Regulatory Deferral Account - Asset
Regulatory Assets 1,914.00 2,093.09 1,841.86
Total 1,914.00 2,093.09 1,841.86

Rate Regulated Activities

(i) As per the Ind AS-114 ‘Regulatory Deferral Accounts' the business of electricity distribution is a Rate Regulated activity wherein Maharashtra Electricity Regulatory Commission (MERC), the regulator determines Tariff to be charged from consumers based on prevailing regulations in place.

MERC Multi Year Tariff Regulations, 2015 (MYT Regulations), is applicable for the period beginning from 1st April, 2016 to 31st March, 2021. These regulations require MERC to determine tariff in a manner wherein the Company can recover its fixed and variable costs including assured rate of return on approved equity base, from its consumers. The Company determines the Revenue, Regulatory Assets and Liabilities as per the terms and conditions specified in MYT Regulations. (ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities as on 31st March, 2017, is as follows:

As at 31st March, 2017 As at 31st March, 2016
Rs crore Rs crore
Opening Regulatory Assets net of Liabilities (A) 1,412.71 1,823.50
Regulatory Income/(Expenses) during the year
(i) Power Purchase Cost 2,206.98 2,558.42
(ii) Other expenses as per the terms of Tariff Regulations including ROE 872.55 951.58
(iii) Collected during the year as per approved Tariff (3,092.53) (3,948.00)
Regulatory Income/(Expenses) (net) (i + ii + iii) (13.00) (438.00)
Regulatory Income (net) in respect of earlier years 77.00 56.59
Income/(Expenses) on account of Rate Regulated Activities (B) 64.00 (381.41)
Carrying cost recognised in the Statement of Profit and Loss relating to uncollected amounts (C) 103.54 220.00
Amount Collected (net) in respect of earlier years (D) (322.25) (249.38)
Closing Regulatory Asset (A + B + C + D) 1,258.00 1,412.71
Regulatory Assets 1,914.00 2,093.09
Regulatory Liabilities (656.00) (680.38)
1,258.00 1,412.71

19 a. Equity - Share Capital

As at 31st March, 2017

As at 31st March, 2016

As at 1st April, 2015
Number Rs crore Number Rs crore Number Rs crore
Authorised
Equity Shares of Rs 1/- each 300,00,00,000 300.00 300,00,00,000 300.00 300,00,00,000 300.00
Cumulative Redeemable Preference Shares of
100/- each 2,29,00,000 229.00 2,29,00,000 229.00 2,29,00,000 229.00
529.00 529.00 529.00
Issued
Equity Shares [including 28,32,060 shares (31st March, 2016 - 29,76,172 shares, 1st April, 2015 - 29,80,316 shares) not allotted but held in abeyance, 44,02,700 shares cancelled pursuant to a Court Order and 4,80,40,400 shares of the Company held by the erstwhile The Andhra Valley Power Supply Company Limited cancelled pursuant to the Scheme of Amalgamation sanctioned by the High Court of Judicature, Bombay] 276,17,00,970 276.17 276,17,00,970 276.17 276,17,00,970 276.17
Subscribed and Paid-up
Equity Shares fully Paid-up [excluding 28,32,060 shares (31st March, 2016 - 29,76,172 shares, 1st April, 2015 - 29,80,316 shares) not allotted but held in abeyance, 44,02,700 shares cancelled pursuant to a Court Order and 4,80,40,400 shares of the Company held by the erstwhile The Andhra Valley Power Supply Company Limited cancelled pursuant to the Scheme of Amalgamation sanctioned by the High Court of Judicature, Bombay] 270,47,73,510 270.48 270,46,29,398 270.46 270,46,25,254 270.46
Less: Calls in arrears [including Rs 0.01 crore (31st March, 2016 - Rs 0.01 crore, 1st April, 2015 - Rs 0.01 crore) in respect of the erstwhile The Andhra Valley Power Supply Company Limited and the erstwhile The Tata Hydro-Electric Power Supply Company Limited] 0.04 0.04 0.04
270.44 270.42 270.42
Add: Equity Shares forfeited - Amount paid 16,52,300 0.06 16,52,300 0.06 16,52,300 0.06
Total Issued, Subscribed and fully Paid-up Share Capital 270.50 270.48 270.48

(i) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

As at 31st March, 2017

As at 31st March, 2016

As at 1st April, 2015
Number Rs crore Number Rs crore Number Rs crore
Equity Shares
At the beginning of the year 270,62,81,698 270.48 270,62,77,554 270.48 237,47,24,660 237.33
Issued during the year 144,112 0.02 4,144 * 33,15,52,894 33.15
Outstanding at the end of the year 270,64,25,810 270.50 270,62,81,698 270.48 270,62,77,554 270.48

* Denotes figures below Rs 50,000/-.

(ii) Terms/rights attached to Equity Shares

The Company has issued only one class of Equity Shares having a par value of Rs 1/- per share. Each holder of Equity Shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

(iii) Details of shareholders holding more than 5% shares in the Company

As at 31st March, 2017

As at 31st March, 2016

As at 1st April, 2015
Number % Holding Number % Holding Number % Holding
Equity Shares of Rs 1/- each fully paid
Tata Sons Limited 83,97,99,682 31.05 83,97,99,682 31.05 82,18,99,682 30.39
Life Insurance Corporation of India 33,22,45,379 12.28 36,98,66,780 13.68 35,48,05,781 13.12
Matthews Paci_c Tiger Fund 16,46,20,436 6.09 16,56,20,436 6.12 16,75,45,436 6.19

19 b. Unsecured Perpetual Securities

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Unsecured Perpetual Securities 1,500.00 1,500.00 1,500.00
Add: Issued during the year Nil Nil Nil
Total 1,500.00 1,500.00 1,500.00

In an earlier year the Company raised Rs 1,500 crore through issue of Unsecured Perpetual Securities (the "Securities"). These Securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company. The distribution on these Securities are 11.40% with a step up provision if the Securities are not called after 10 years. The distribution on the Securities may be deferred at the option of the Company, if during the six months preceding the relevant distribution payment date, the Company has made no payment on, or redeemed or repurchased, any securities ranking pari passu with, or junior to the instrument. As these Securities are perpetual in nature and ranked senior only to the Share Capital of the Company and the Company does not have any redemption obligation, these are considered to be in the nature of equity instruments.

20. Other Equity

As at 31st March, 2017 As at 31st March, 2016
Rs crore Rs crore
General Reserve
Opening Balance 3,866.24 3,789.08
Add: Amount transferred from Retained Earnings Nil 77.16
Closing Balance 3,866.24 3,866.24
Securities Premium Reserve
Opening Balance 5,634.13 5,634.11
Add: Share Premium collected during the year 0.85 0.02
Closing Balance 5,634.98 5,634.13
Debenture Redemption Reserve
Opening Balance 545.24 434.66
Add: Amount transferred from Retained Earnings 455.66 110.58
Closing Balance 1,000.90 545.24
Capital Redemption Reserve 1.60 1.60
Capital Reserve 61.66 61.66
Retained Earnings
Opening balance (Refer Note 1 below) 5,110.80 4,423.94
Add: Other Comprehensive Income/(Expense) arising from Remeasurement of Defined Benefit Obligation (Net of Tax) (7.45) (5.20)
Profit for the year 283.45 1,354.99
Less: Payment of Dividend (Refer Note 2 below) 351.99 351.99
Tax on Dividend 0.59 11.60
Transfer from Equity Instrument through Other Comprehensive
Income 0.04 Nil
Transfer to General Reserve Nil 77.16
Transfer to Debenture Redemption Reserve 455.66 110.58
Distribution on Unsecured Perpetual Securities (Net of Tax) 112.44 111.60
(644.72) 686.86
Closing Balance 4,466.08 5,110.80
Equity Instrument through Other Comprehensive Income
Opening Balance (139.69) 113.11
Add/(Less): Transfer to Retained Earnings (Refer Note 4 below) 0.04 Nil
Add/(Less): Change in Fair Value of Equity Instrument through Other
Comprehensive Income (113.97) (246.36)
Gain on sale of Investment classified at FVTOCI 0.10 Nil
Deferred Tax 0.12 (6.44)
Closing Balance (253.40) (139.69)
Total 14,778.06 15,079.98

Notes:

1. Includes gain on fair valuation of land which is not available for distribution Rs 222.31 crore (31st March, 2016 - 222.31 crore).

2. On 23rd September, 2016, a dividend of Rs 1.30 per share was paid to the holders of fully paid equity shares. In August, 2015, the dividend paid was Rs 1.30 per share.

3. In respect of the year ended 31st March, 2017, the directors propose a dividend of Rs 1.30 per share to be paid on fully paid shares. This equity dividend is subject to approval at the annual general meeting and has not been included as a liability in the financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs 351.99 crore.

4. During the year ended 31st March, 2017, the Company has sold 6,60,899 equity shares in Tata Teleservices (Maharashtra) Limited. The resultant loss of Rs 0.04 crore has been transferred from Equity Instrument through Other Comprehensive Income to Retained Earnings.

Nature and purpose of reserves General Reserve:

General Reserve is used from time to time to transfer Profits from Retained Earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of Profit and loss.

Securities Premium Reserve:

Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

Debenture Redemption Reserve:

The Company is required to create a Debenture Redemption Reserve out of the Profits which is available for payment of dividend for the purpose of redemption of debentures.

Capital Redemption Reserve:

Capital Redemption Reserve represents amounts set aside on redemption of preference shares. Capital Reserve:

Capital Reserve consists of forfeiture of the amount received from Tata Sons Limited on preferential allotment of convertible warrants in the Company, on the lapse of the period to exercise right to convert the said warrants and on forfeiture of amounts paid on Debentures.

Retained Earnings

Retained Earnings are the Profits of the company earned till date net of appropriations.

Equity Instrument through Other Comprehensive Income:

This reserve represents the cumulative gains and losses arising on revaluation of equity instruments measured at fair value through other comprehensive income, net of amounts reclassified to retained earnings when those assets are disposed of.

21. Non-current Borrowings

As at 31st March, 2017

As at 31st March, 2016

As at 1st April, 2015
Non- current Current Non- current Current Non- current Current
Rs crore Rs crore Rs crore Rs crore Rs crore Rs crore
(i) Unsecured - At Amortised Cost
Redeemable Non-Convertible
Debentures
(a) 10.75% Series 2072 1,488.80 Nil 1,486.87 Nil 1,485.38 Nil
(b) 9.41% Series 2023 498.85 Nil 498.47 Nil Nil Nil
(c) 9.48% Series 2019 499.70 Nil 499.48 Nil 499.28 Nil
(d) 7.70% Series 2019 Nil 3,500.00 Nil Nil Nil Nil
(e) 9.32% Series 2017 Nil 999.77 999.17 Nil 998.63 Nil
2,487.35 4,499.77 3,483.99 Nil 2,983.29 Nil
Bonds
(f) 8.50% Euro Notes 2017 Nil 386.22 394.54 Nil 372.21 Nil
Term Loans from Banks
(g) ICICI Bank 605.00 Nil Nil 2.90 2.90 5.80
(h) JP Morgan Chase Bank Nil Nil Nil 200.00 200.00 Nil
(i) BNP Paribas Nil Nil Nil 210.00 210.00 Nil
605.00 Nil Nil 412.90 412.90 5.80
Deferred Payment Liabilities
(j) Sales Tax Deferral 28.33 15.17 43.01 13.98 56.99 11.15
(A) 3,120.68 4,901.16 3,921.54 426.88 3,825.39 16.95
(ii) Secured - At Amortised Cost
Redeemable Non-Convertible
Debentures
(a) 9.15% Series 2025 137.82 16.00 153.73 16.00 169.70 16.00
(b) 9.15% Series 2025 174.80 25.00 199.73 25.00 224.70 25.00
(c) 9.40% Series 2022 209.54 Nil 209.44 Nil 209.35 Nil
(d) 10.10% Series 2018 500.00 Nil 500.00 Nil 500.00 Nil
(e) 10.40% Series 2018 500.00 Nil 500.00 Nil 500.00 Nil
(f) 7.10% Series 2015 Nil Nil Nil Nil Nil 217.33
1,522.16 41.00 1,562.90 41.00 1,603.75 258.33
Term Loans from Banks
(g) HDFC Bank 1,157.81 78.75 1,056.56 72.19 1,058.75 41.25
(h) ICICI Bank 123.00 Nil 60.00 Nil Nil Nil
(i) IDBI Bank Nil Nil 482.50 35.00 517.50 35.00
(j) Kotak Mahindra Bank 477.50 38.75 516.25 25.50 320.51 24.25
(k) State Bank of India 993.75 66.25 Nil Nil Nil Nil
(l) IDFC Bank 1,127.90 90.10 1,038.00 90.10 Nil Nil
3,879.96 273.85 3,153.31 222.79 1,896.76 100.50
Term Loans from Others
(m) Asian Development Bank 31.68 12.67 44.35 12.67 57.02 12.67
(n) Indian Renewable Energy
Development Agency
Limited 266.38 35.13 301.52 35.13 336.65 35.13
(o) Infrastructure Development
Finance Company Limited Nil Nil Nil Nil 1,058.10 90.10
(p) Technology Development
Board, Department of
Science & Technology,
Government of India 27.00 Nil Nil Nil Nil Nil
(q) Export Import Bank of India. Nil Nil Nil Nil Nil 0.31
325.06 47.80 345.87 47.80 1,451.77 138.21
(B) 5,727.18 362.65 5,062.08 311.59 4,952.28 497.04
Total (A) + (B) 8,847.86 5,263.81 8,983.62 738.47 8,777.67 513.99

Security

(i) The Debentures mentioned in (a) have been secured by a charge on movable properties and assets of the Company at Agaswadi and Visapur in Satara District of Maharashtra and Poolavadi in Tirupur District of Tamil Nadu.

(ii) The Debentures mentioned in (b) have been secured by a pari passu charge on the assets of the wind farms situated at Samana in Gujarat and Gadag in Karnataka.

(iii) The Debentures mentioned in (c) have been secured by a charge on the land situated at Village Takve Khurd (Maharashtra). (iv) The Debentures mentioned in (d) and (e) have been secured by a pari passu charge on land in Village Takve Khurd (Maharashtra) and movable and immovable properties in and outside Maharashtra, except assets of windmill projects, present and future.

(v) The Debentures mentioned in (f) had been secured by a charge on land in Village Takve Khurd (Maharashtra), movable and immovable properties in and outside Maharashtra, as also all transmission stations/lines, receiving stations and sub-stations in Maharashtra, except assets of windmill projects, present and future.

(vi) The Loans from HDFC Bank and IDBI Bank, mentioned in (g) and (i) respectively have been secured by a pari passu charge on all movable Fixed Assets (excluding land and building), present and future (except assets of all wind projects both present and future) including movable machinery, machinery spares, tools and accessories.

(vii) The Loan from ICICI Bank, mentioned in (h) secured by way of first pari-passu charge on all the movable assets (excluding land and buildings), present and future (except assets of all windmill projects present and future), including movable machinery, current assets, machinery spares, tools and accessories.

(viii) The Loan from Kotak Mahindra Bank mentioned in (j) has been secured by a pari passu charge on all movable Fixed Assets (excluding land and building), present and future (except assets of all wind mill projects, both present and future) including movable machinery, machinery spares, tools and accessories.

(ix) The Loan from State Bank of India mentioned in (k) has been secured by a pari passu charge on all movable Fixed Assets (excluding land and building), present and future (except assets of all windmill projects, both present and future) including movable machinery, machinery spares, tools and accessories.

(x) The Loan from IDFC Bank (Loan from Infrastructure Development Finance Company Limited has been transferred to IDFC Bank on its demerger), mentioned in (l) and (o) have been secured by a pari passu charge on all movable Fixed Assets (excluding land and building), present and future (except assets of all wind projects both present and future) including movable machinery, machinery spares, tools and accessories.

(xi) The Loans from Asian Development Bank and Indian Renewable Energy Development Agency Limited mentioned in (m) and (n) respectively have been secured by a first charge on the tangible movable properties, plant & machinery and immovable properties situated at Khandke, Brahmanvel and Sadawaghapur in Maharashtra.

(xii) The Loan from Technology Development Board, Department of Science & Technology, Government of India mentioned in (p) is secured by way of Bank Guarantee.

Terms of Repayment

Particulars

Financial Year

Amount Outstanding as at 31st March, 2017 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29
(i) Unsecured - At Amortised Cost
Redeemable Non-Convertible Debentures
(a) 10.75% Series 2072 1,500.00

The 10.75% Redeemable Non-Convertible Debentures are redeemable at par at the end of 60 years from the respective date of allotment viz. 21st August, 2072. The Company has the call option to redeem the same at the end of 10 years viz. 21st August, 2022 and at the end of every year thereafter.

(b) 9.41% Series 2023 500.00 - - - - - 500.00 - - - - - -
(c) 9.48% Series 2019 500.00 - - 500.00 - - - - - - - - -
(d) 7.70% Series 2019 3,500.00 3,500.00 - - - - - - - - - - -
(e) 9.32% Series 2017 1,000.00 1,000.00 - - - - - - - - - - -
Bonds
(f) 8.50% Euro Notes (2017) 386.22 386.22 - - - - - - - - - - -
Equivalent (USD 59.56 million) USD 59.56 million
Term Loans from Banks
(g) ICICI Bank 605.00 - 605.00 - - - - - - - - - -
Deferred Payment Liabilities
(h) Sales Tax Deferral 43.50 Sales Tax Deferral is repayable in 150 installments commencing from April, 2013 and repayable in full by 2022.
(ii) Secured - At Amortised Cost
Redeemable Non-Convertible Debentures
(a) 9.15% Series 2025 154.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 26.00 - - -
(b) 9.15% Series 2025 200.00 25.00 25.00 25.00 25.00 20.00 20.00 20.00 20.00 20.00 - - -
(c) 9.40% Series 2022 210.00 - - - - - 210.00 - - - - - -
(d) 10.10% Series 2018 500.00 - 500.00 - - - - - - - - - -
(e) 10.40% Series 2018 500.00 - 500.00 - - - - - - - - - -
Term Loans from Banks
(f) HDFC Bank 1,236.56 78.75 95.00 395.00 65.00 65.00 65.00 65.00 65.00 91.25 125.94 38.12 87.50
(g) ICICI Bank 123.00 - - - 18.45 24.60 24.60 24.60 24.60 6.15 - - -
(h) Kotak Mahindra Bank 516.25 38.75 38.75 38.75 38.75 38.75 38.75 38.75 38.75 65.00 53.75 87.50 -
(i) State Bank of India 1,060.00 66.25 66.25 66.25 66.25 66.25 66.25 132.50 258.75 271.25 - - -
(j) IDFC Bank 1,218.00 90.10 341.65 158.75 76.25 76.25 76.25 146.25 116.25 16.25 16.25 16.25 87.50
Term Loans from Others
(k) Asian Development Bank 44.35 12.67 12.67 12.67 6.34 - - - - - - - -
(l) Indian Renewable Energy Development Agency Limited 301.52 35.13 35.13 35.13 32.20 29.26 29.26 29.26 76.15 - - - -
(m) Technology Development Board, Department of Science & Technology, Government of India 27.00 - 3.02 6.00 6.00 5.99 5.99 - - - - - -
14,125.40
Less- Impact of recognition of borrowing at amortised cost using effective interest method under Ind AS 13.73
14,111.67

22. Other Financial Liabilities

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Non-current
Security Deposits from Customers 31.98 33.59 32.33
Total 31.98 33.59 32.33
As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Current
(a) Current Maturities of Long-term Debt (Refer Note 21) 5,263.81 738.47 513.99
(b) Interest accrued but not due on Borrowings 396.87 226.71 222.66
(c) Investor Education and Protection Fund shall be credited by the following amounts namely: **
Unpaid Dividend 16.32 14.75 14.49
Unpaid Matured Deposits 0.03 0.03 0.03
Unpaid Matured Debentures 0.09 0.09 0.09
(d) Other Payables
Payables towards Purchase of Fixed Assets 177.08 208.06 269.41
Derivative Contracts 49.91 9.54 0.47
Security Deposits from Consumers 174.57 170.29 152.21
Security Deposits from Others 22.15 2.73 4.95
Tender Deposits from Vendors 1.33 0.91 2.00
Regulatory Liabilities other than Distribution
Business 412.50 353.21 885.50
Other Financial Liabilities 117.66 142.00 161.99
Total 6,632.32 1,866.79 2,227.79

** Includes amounts outstanding aggregating Rs 0.87 crore (31st March, 2016 - Rs 0.84 crore, 1st April, 2015 - Rs 0.85 crore) for more than seven years pending legal cases.

23. Provisions

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Non-current
Provision for Employee Benefits
Compensated Absences 89.22 77.07 77.57
Post-Employment Medical Benefits [Refer Note 39(2.3)] 24.86 20.57 18.49
Other Defined Benefit Plans [Refer Note 39(2.3)] 36.66 34.30 33.72
Other Employee Benefits 16.98 17.27 16.40
167.72 149.21 146.18
Other Provisions
Provision for Warranties 2.45 2.36 3.72
Total 170.17 151.57 149.90
As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Current
Provision for Employee Benefits
Compensated Absences 5.65 5.86 5.41
Gratuity (Net) [Refer Note 39(2.3)] 8.67 28.66 26.17
Post-Employment Medical Benefits [Refer Note 39(2.3)] 0.83 0.73 0.64
Other Defined Benefit Plans [Refer Note 39(2.3)] 5.26 5.28 5.04
Other Employee Benefits 1.86 2.18 2.76
22.27 42.71 40.02
Other Provisions
Provision for Warranties 30.06 29.80 26.39
Provision for Wealth Tax Nil 1.08 2.52
30.06 30.88 28.91
Total 52.33 73.59 68.93

23.1 Other Provisions

Rs crore

Warranties Wealth Tax Total
Balance as at 1st April, 2015 30.11 2.52 32.63
Additional provisions recognised 29.46 Nil 29.46
Reductions arising from payments (1.76) Nil (1.76)
Reductions arising from remeasurements or settlement without cost (25.65) (1.44) (27.09)
Balance as at 31st March, 2016 32.16 1.08 33.24
Balance as at 31st March, 2016 32.16 1.08 33.24
Additional provisions recognised 31.20 Nil 31.20
Reductions arising from payments (2.13) Nil (2.13)
Reductions arising from remeasurements or settlement without costs (28.72) (1.08) (29.80)
Balance as at 31st March, 2017 32.51 Nil 32.51

Notes:

1. Provision for employee benefits includes provision for gratuity, post-employment, medical benefits, pension (including Director pension), ex-gratia death benefit and retirement gift.

2. The provision for warranty claims represents estimated warranty liability for the products sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures.

24. Deferred Tax Liabilities (Net)

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Deferred Tax Assets 84.34 96.35 98.90
Deferred Tax Liabilities 1,556.43 1,640.29 1,538.86
Total - Net Deferred Tax Liabilities 1,472.09 1,543.94 1,439.96
Rs crore
2016-17 Opening Balance Recognised in Profit or loss Recognised in other comprehensive Income Recognised directly in equity Closing balance
Deferred tax assets in relation to
Allowance for Doubtful Debts, Deposits and
Advances 19.96 7.05 Nil Nil 27.01
Provision for Employee Benefits, Entry Tax and
Others 76.39 (23.01) 3.95 Nil 57.33
96.35 (15.96) 3.95 Nil 84.34
Deferred tax liabilities in relation to
Finance Leases 142.21 2.27 Nil Nil 144.48
Property, Plant and Equipment (Refer Note below) 1,445.82 (85.30) Nil Nil 1,360.52
Financial Assets at Fair Value through Other
Comprehensive Income 22.14 Nil (0.12) Nil 22.02
Distribution on Perpetual Bonds 24.20 Nil Nil 0.46 24.66
Others 5.92 (1.17) Nil Nil 4.75
1,640.29 (84.20) (0.12) 0.46 1,556.43
Net Deferred Tax Liability 1,543.94 (68.24) (4.07) 0.46 1,472.09

Note:

During the year ended 31st March, 2017, the Company has reassessed the deferred tax liabilities in respect of its units falling under tax holiday period having regard to (a) favourable order passed by the Dispute Resolution Panel (DRP) pursuant to the Order issued by the Hon'ble Supreme Court in respect of another assessee and (b) the Circular issued by the Central Board of Direct Taxes in this regard and has reversed deferred tax liabilities amounting to Rs 180.85 crore.

Rs crore
2015-16 Opening Balance Recognised in Profit or loss Recognised in other comprehensive Income Recognised directly in equity Closing balance
Deferred Tax Assets in relation to
Allowance for Doubtful Debts, Deposits and
Advances 17.54 2.42 Nil Nil 19.96
Provision for Employee Benefits, Entry Tax and Others 81.36 (7.53) 2.56 Nil 76.39
98.90 (5.11) 2.56 Nil 96.35
Deferred Tax Liabilities in relation to
Finance Leases 147.34 (5.13) Nil Nil 142.21
Property, Plant and Equipment 1,344.43 101.39 Nil Nil 1,445.82
Financial Assets at Fair Value through Other
Comprehensive Income 15.70 Nil 6.44 Nil 22.14
Distribution on Perpetual Bonds 24.20 Nil Nil Nil 24.20
Others 7.19 (1.27) Nil Nil 5.92
1,538.86 94.99 6.44 Nil 1,640.29
Net Deferred Tax Liability 1,439.96 100.10 3.88 Nil 1,543.94

25. Other Liabilities

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Non-current
Consumers' Benefit Account 21.94 21.94 21.94
Deferred Revenue - Service Line Contributions from
Consumers 110.66 107.24 104.53
Deferred Rent Liability 46.69 47.67 9.74
Guarantee Commission Obligation 8.05 Nil Nil
Total 187.34 176.85 136.21
As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Current
Statutory Liabilities 127.32 121.18 171.12
Advance from Customers/Public Utilities 158.35 121.09 243.86
Statutory Consumer Reserves 658.23 644.23 623.23
Special Appropriation towards Project Cost 533.61 533.61 533.61
Other Liabilities 2.02 0.51 0.99
Total 1,479.53 1,420.62 1,572.81

26. Current Borrowings

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Unsecured - At Amortised Cost
From Banks
(a) Buyer's Line of Credit 409.00 370.06 286.78
(b) Bank Overdraft 0.32 148.93 Nil
(c) Short-term Loans Nil Nil 185.00
From Others
Commercial Paper [maximum amount outstanding during the year is Rs 3,000 crore (31st March, 2016 - 1,950 crore)] 1,982.66 988.10 1,176.27
2,391.98 1,507.09 1,648.05
Secured - At Amortised Cost
From Banks
(a) Short-term Loans Nil Nil 93.00
Total 2,391.98 1,507.09 1,741.05

Security

Loan from banks is secured against first pari passu charge over all current assets of the Company, present and future, with other working capital lenders, except for specific wind assets (for which charge has been ceded).

27. Current tax liabilities

As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore Rs crore
Income-tax payable 18.26 29.74 Nil
Total 18.26 29.74 Nil

28. Revenue from Operations

For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
(a) Revenue from Power Supply and Transmission Charges 5,575.54 6,631.53
Add/(Less): Income to be adjusted in future tariff determination (Net). (58.00) (25.17)
Add/(Less): Income to be adjusted in future tariff determination (Net) in respect of earlier years (100.69) 155.41
5,416.85 6,761.77
(b) Revenue from Contracts - Electronic Products (including Excise Duty) 541.63 549.88
(c) Project/Operation Management Services
Assets Under Lease 891.83 987.47
Others 148.55 166.61
1,040.38 1,154.08
(d) Other Operating Revenue
Rental of Land, Buildings, Plant and Equipment, etc 15.53 14.07
Income in respect of Services Rendered 64.72 66.49
Income from Finance Lease 89.68 95.97
Amortisations of Service Line Contributions 11.04 10.26
Sale of Fly Ash 1.79 1.94
Sale of Carbon Credits 9.47 11.14
Miscellaneous Revenue 26.97 31.34
219.20 231.21
Total 7,218.06 8,696.94

29. Other Income

For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
(a) Interest Income
(i) On Financial Assets carried at Amortised Cost
Interest on Bank Deposits 0.34 3.15
Interest from Inter-corporate Deposits 1.15 3.61
Interest on Overdue Trade Receivables 15.35 116.60
Interest on Non-current Investment - Contingency Reserve Fund. 7.35 6.62
Interest on Non-current Investment - Deferred Tax Liability Fund.. 21.21 21.16
Interest on Financial Instruments - Subsidiaries 223.19 399.45
Interest on Financial Instruments - Joint Ventures 0.44 0.84
Other Interest 0.39 0.45
269.42 551.88
(ii) Others
Interest on Income-tax Refund Nil 0.40
Total 269.42 552.28
For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
(b) Dividend Income
From Non-current Investments
Subsidiaries 519.23 204.30
Joint Ventures 114.50 93.07
Associates 12.43 12.24
Others - Equity Investments Designated at FVTOCI 3.82 18.45
649.98 328.06
(c) Gain/(Loss) on Investments
Gain on Sale of Current Investment measured at FVTPL 41.36 9.29
Gain on Sale of Investment in Associates measured at Cost Nil 10.57
41.36 19.86
(d) Other Non-operating Income
Guarantee Commission from Subsidiaries and Joint Ventures 24.88 42.75
Gain/(Loss) on Disposal of Property, Plant and Equipment (Net) (0.23) 27.99
Delayed Payment Charges 6.78 7.80
Other Income 0.01 0.30
Insurance Claim Accrued/(Reversed) Nil (16.75)
31.44 62.09
(e) Others
Net Gain/(Loss) on Foreign Exchange (78.37) (57.02)
Total 913.83 905.27

30. Employee Benefits Expense

For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
Salaries and Wages 599.39 604.89
Contribution to Provident Fund [Refer Note 39(1)] 24.02 21.53
Contribution to Superannuation Fund [Refer Note 39(1)] 10.23 10.13
Retiring Gratuities [Refer Note 39(2.3)] 26.37 14.82
Leave Encashment Scheme 27.63 16.36
Pension Scheme 6.13 6.60
Sta_ Welfare Expenses 115.42 102.74
809.19 777.07
Less:
Employee Cost Capitalised 111.68 109.50
Employee Cost Recovered Nil 0.02
Employee Cost Inventorised 36.71 19.08
148.39 128.60
Total 660.80 648.47

31. Finance Costs

For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
(a) Interest Expense:
Borrowings
Interest on Debentures 684.63 483.92
Interest on - Euro Notes 33.78 34.06
Interest on Loans - Banks & Financial Institutions 553.75 521.20
Others
Interest on Consumer Security Deposits 18.70 13.07
Other Interest and Commitment Charges 15.44 109.07
1,306.30 1,161.32
Less: Interest Capitalised 33.42 28.38
1,272.88 1,132.94
(b) Other Borrowing Cost:
Other Finance Costs 22.80 13.18
Total 1,295.68 1,146.12

Note:

The weighted average capitalisation rate on the Company's general borrowings is 9.50% per annum (31st March, 2016 - 10.00% per annum).

32. Other Expenses

For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
Consumption of Stores, Oil, etc. (excluding Rs 68.73 crore on repairs and maintenance - Previous Year - Rs 79.26 crore) 98.20 34.24
Rental of Land, Buildings, Plant and Equipment, etc 30.87 31.07
Repairs and Maintenance -
(i) To Buildings and Civil Works 71.50 81.78
(ii) To Machinery and Hydraulic Works 212.54 209.42
(iii) To Furniture, Vehicles, etc. 11.10 14.08
295.14 305.28
Rates and Taxes 46.52 72.46
Insurance 32.69 39.74
Other Operation Expenses 125.53 124.39
Ash Disposal Expenses 16.58 17.84
Warranty Charges 2.48 3.81
Travelling and Conveyance Expenses 36.88 29.19
Consultants' Fees 36.54 34.22
Auditors' Remuneration 6.96 7.46
Cost of Services Procured 136.48 149.25
Carried over … 864.87 848.95
For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
Bad Debts Nil 0.46
Allowance for Doubtful Debts and Advances (Net) 19.34 65.50
Impairment of Non-current assets held for sale 34.00 Nil
Impairment of Non-current Investments in Joint Ventures 18.08 28.37
Amortisation of Payment Towards Leasehold Land 12.03 14.52
Donations Nil 3.96
Legal Charges 16.01 13.17
Corporate Social Responsibility Expenses 22.79 29.23
Excise Duty Paid 15.81 6.43
Transfer to Contingency Reserve 14.00 21.00
Miscellaneous Expenses 50.06 59.77
Total 1,066.99 1,091.36

(i) Payment to the auditors (inclusive of service tax):

For the year ended For the year ended
31st March, 2017 31st March, 2016
Rs crore Rs crore
For Statutory Audit 3.95 3.95
For Taxation Matters 0.39 0.39
For Company Law Matters Nil *
For Other Services 1.65 2.14
For Reimbursement of Expenses 0.07 0.03
For Service Tax 0.90 0.95
Total 6.96 7.46

(ii) Corporate Social Responsibility Expenses

For the year ended 31st March, 2017 For the year ended 31st March, 2016
Rs crore Rs crore
Contribution to Tata Power Community Development Trust 21.16 27.00
Expenses incurred by the Company 1.63 2.01
Total 22.79 29.01
Amount required to be spent as per section 135 of the Act 21.84 23.22
Amount spent during the year on:
(a) Construction/Acquisition of asset Nil Nil
(b) On purposes other than (a) above 22.79 29.01
* Denotes figures below Rs 50,000/-.

33. Income taxes

1. Income taxes recognised in statement of Profit and loss

31st March, 2017 31st March, 2016
Rs crore Rs crore
Current tax
In respect of the current year 290.92 349.00
In respect of the previous years Nil (69.80)
290.92 279.20
Deferred tax
In respect of the current year (68.24) 76.38
Adjustments to deferred tax attributable to changes in tax rates Nil 23.72
(68.24) 100.10
Total income tax expense recognised in the current year 222.68 379.30

The income tax expense for the year can be reconciled to the accounting Profit as follows:

31st March, 2017 31st March, 2016
Rs crore Rs crore
Profit Before Tax considered for tax working 506.13 1,734.29
Income tax expense calculated at 34.61% 175.16 600.20
Effect of Income that is exempt from taxation (231.53) (262.21)
Effect of expenses that are not deductible in determining taxable Profit 371.85 78.86
Effect of Tax Incentives (77.97) (54.75)
Effect of Lower Tax rate on Dividend Income from Foreign Subsidiaries (45.77) (16.52)
Effect of additional tax on account of Minimum Alternate Tax (MAT) applicability 153.68 37.33
Effect of Reversal of Deferred Tax on Tax Holiday assets due to change in
Estimates (Refer Note 24) (180.65) Nil
Effect of Tax on Distribution on Perpetual Securities 59.26 59.19
Effect of Tax on Other Items (1.35) (16.72)
Effect on deferred tax balances due to the changes in income tax rate from 33.99% to 34.61% Nil 23.72
222.68 449.10
Adjustments recognised in the current year in relation to the current tax of prior years Nil (69.80)
Income tax expense recognised in statement of Profit or loss 222.68 379.30

Notes:

1. The tax rate used for the years 2016-17 and 2015-16 reconciliations above is the corporate tax rate of 34.61% payable by corporate entities in India on taxable Profits under the Indian tax law.

2. The Company has to pay taxes based on the higher of Income Tax Profit of the company or MAT at 21.3416% of book Profit for the year 2016-17 and 2015-16.

3. The Minimum Alternate Tax (MAT) rate applicable is 21.3416% of the book Profit for the year 2016-17 and 2015-16.

2. Income tax recognised directly in equity

31st March, 2017 31st March, 2016
Rs crore Rs crore
Current tax
Effect of Distribution on Unsecured Perpetual Securities (59.26) (59.19)
(59.26) (59.19)
Deferred tax
Effect of Distribution on Unsecured Perpetual Securities 0.46 Nil
Income tax recognised directly in equity (58.80) (59.19)

3. Income tax recognised in other comprehensive income

31st March, 2017 31st March, 2016
Rs crore Rs crore
Deferred tax
Arising on Income and expenses recognised in other comprehensive income
Net fair value gain on investments in equity shares at FVTOCI (0.12) 6.44
Remeasurements of defined benefit obligation (3.95) (2.56)
Total income tax recognised in other comprehensive income (4.07) 3.88
Bifurcation of the income tax recognised in other comprehensive income into:
Items that will be reclassified to Profit or loss Nil Nil
Items that will not be reclassified to Profit or loss (4.07) 3.88
(4.07) 3.88

34. (a) Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of the Company has implemented the 4000 MW Ultra Mega Power Project at Mundra ("Mundra UMPP"). As at 31st March, 2017, the Company has a long-term investment of 11,136.15 crore (31st March, 2016 - Rs 6,443.85 crore, 1st April, 2015 - Rs 6,047.90 crore) in equity (including perpetual security) of CGPL, has given loans of Rs Nil (31st March, 2016 - Rs 3,795.89 crore, 1st April, 2015 - .3,034.56 crore) to CGPL, and has given guarantees of Rs 2,781.69 crore (31st March, 2016 - Rs 3,039.24 crore, 1st April, 2015 - Rs 3,403.27 crore) to CGPL's lenders.

The Management of CGPL, on an ongoing basis, reviews and assesses the recoverability of the carrying value of its fixed assets based on certain externally available information and assumptions relating to future fuel prices, revenues and operating parameters and useful life of the plant, which the management believes reasonably reflect the future expectation. In view of the estimation uncertainties, the future cash flows, the assumptions are monitored periodically and adjustments are made if the conditions relating to the assumptions indicate that such adjustment is appropriate. Based on the assessment of recoverability of the carrying value of fixed assets as at 31st March, 2017 and having regard to the overall returns expected from CGPL, no impairment as at 31st March, 2017 is considered necessary for long-term investments of Rs 11,136.15 crore in CGPL and no provision is required in respect of guarantees of Rs 2,781.69 crore given to CGPL's lenders. (b) The Company has investments in equity shares of Tata Teleservices Limited (TTSL) which are measured at fair value through other comprehensive income. Based on a valuation report obtained from TTSL, the Company had reassessed the fair value of its investment in TTSL as at 30th September, 2016 and recorded fair value loss of Rs 124.46 crore as at that date. In the absence of updated information, it has not been possible to revise the valuation as at 31st March, 2017 and consequently adjustments, if any, to the carrying value of investments in TTSL of Rs 384.88 crore as at 31st March, 2017 have not been made.

(c) During the year, DoCoMo had filed a petition before the Delhi High Court for implementation of the Arbitration Award related to its exercise of the ‘put option' to the transfer of its entire shareholding in TTSL at a minimum predetermined price of Rs 58.045 per share pursuant to which the Delhi High Court directed Tata Sons (as representative of the Tata Group) to depositthedamagesincludingcostsandinterestinanescrowaccount.Accordingly,theCompanydeposited790crorewith Tata Sons, being its share of the contractual obligation. On 28th April, 2017, the Delhi High Court ruled that the Arbitration Award is enforceable in India. Consequently, the Company has as at 31st March, 2017 written-o_ ‘other advances' of 651.45 crore, being the difference between the fair value of equity shares of TTSL determined as at 30th September, 2016 and the consideration payable to DoCoMo deposited with Tata Sons. This has been disclosed as an exceptional item. The balance of Rs 138.55 crore, which represents the fair value of shares receivable from DoCoMo based on a valuation as at 30th September, 2016, is being carried forward as Other Advance and included in Other Non-current Financial Asset. As stated in note 34(b) above, valuation of TTSL shares as at 31st March, 2017 is not available.

35. Micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the Company and the required disclosures are given below:

31st March, 2017 31st March, 2016 31st March, 2015
Rs crore Rs crore Rs crore
(a) Principal amount remaining unpaid as on 31st March 19.20 24.60 17.11
(b) Interest due thereon as on 31st March @ Nil Nil Nil
(c) The amount of Interest paid along with the amounts of the payment made to the supplier beyond the appointed day @ Nil Nil Nil
(d) The amount of Interest due and payable for the year @ Nil Nil Nil
(e) The amount of Interest accrued and remaining unpaid as at 31st March @ Nil Nil Nil
(f) The amount of further interest due and payable even in the succeeding years, until such date when the interest dues as above are actually paid @ Nil Nil Nil

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

@ Amounts unpaid to MSM vendors on account of retention money have not been considered for the purpose of interest calculation.

36. Commitments

31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
(a) Estimated amount of Contracts remaining to be executed on capital account and not provided for 541.26 523.92 662.48
(b) Other Commitments
(i) Commitment towards purchase of Equity Shares of Trust Energy Resources Pte. Limited from Khopoli Investment Limited, subject to approval of Reserve Bank of India Nil 29.13 27.48
(ii) The Company has given an undertaking for non-disposal of shares to the lenders of Tata Power Delhi Distribution Limited in respect of its outstanding borrowings 341.88 442.61 520.78
(iii) The Company has given an undertaking to the Bankers of Cennergi Pty. Limited, wherein it would ensure that Cennergi Pty. Limited would satisfy its commitment to the Bank 77.47 71.54 83.03

(iv) In terms of the Sponsor Support agreement entered into between the Company, Coastal Gujarat Power Limited (CGPL) and lenders of CGPL, the Company has undertaken to provide support by way of base equity contribution to the extent of 25% of CGPL's project cost and additional equity or subordinated loans to be made or arranged for, if required as per the financing agreements to finance the project. The Sponsor Support Agreement also includes support by way of additional financial support for any overrun in project costs, operational loss and Debt Service Reserve Guarantee as provided under the financing agreements. Pending achievement of the "Project Financial Completion Date" as defined under the Financing Agreement, the Sponsor support will continue. In terms of the conditions of the financing agreements, the Company has provided total Additional Subordinated Loans and Equity of Rs 6,022.59 crore (31st March, 2016 - Rs 5,047.00 crore, 1st April, 2015 - Rs 4,235.82 crore) to CGPL. The loans would be repaid in accordance with the conditions of the Subordination and Hypothecation Agreements either out of additional equity to be infused by the Company or out of the balance Indian rupee term loans receivable by CGPL in future on the fulfilment of conditions in the Coal Supply and Transportation Agreements Completion Date (CSTACD) agreement.

(v) In respect of NELCO Limited, the Company has undertaken to arrange for the necessary financial support to NELCO Limited in the form of interim short term funding for meeting its business requirements.

(vi) The Company has undertaken to arrange for the necessary financial support to its Subsidiaries Khopoli Investments Limited, Bhivpuri Investments Limited, Industrial Power Utility Limited, Tata Power Jamshedpur Distribution Limited and Tata Power International Pte. Limited.

(vii) In respect of Maithon Power Limited (MPL), the Company jointly with Damodar Valley Corporation (DVC) has undertaken to the lenders of MPL, to provide support by way of base equity contribution and additional equity or subordinated loans to meet the increase in Project Cost. Further, the Company has given an undertaking to MPL to fulfil payment obligations of Tata Power Trading Company Limited (TPTCL) and Tata Power Delhi Distribution Limited (TPDDL) in case of their default. (viii) In terms of pre-implementation agreement entered into with Government of Himachal Pradesh and the consortium consisting of the Company and SN Power Holding Singapore Pte. Ltd. (Company being the Lead Member of the consortium) for the investigation and implementation of Dugar Hydro Electric Project, the Company has undertaken as Lead Member to undertake/perform various obligations pertaining to Dugar Project.

(ix) In accordance with the terms of the Share Purchase Agreement and the Shareholder's Agreement entered into by Panatone Finvest Limited (PFL), an associate of the Company, with the Government of India, PFL has contractually undertaken a "Surplus Land" obligation including agreeing to transfer 45% of the share capital of the Resulting Company, at Nil consideration, to the Government of India upon Demerger of the Surplus Land by Tata Communication Limited (TCL). The Company has till date acquired 1,34,22,037 shares of TCL from PFL. The Company would be entitled to be allotted 4.71% of the share capital of the Resulting Company based on its holding of 1,34,22,037 shares of TCL. The Company has given an undertaking to PFL to bear the "Surplus Land" obligation pertaining to these shares.

37. Contingent Liabilities

31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
Contingent liabilities
a) Claims against the Company not acknowledged as debts consist of
(i) Interest and penalty demand disputed by the Company relating to Entry tax claims for the _nancial years 2005-06 to 2012-13. [Refer Note (f) below] 1,967.43 1,813.69 1,587.06
(ii) Disallowance of carrying cost and other costs by Appellate Tribunal for Electricity (ATE) has been disputed by the Company. Based on legal opinions (the Company has a strong case), the Company has filed Special Leave Petition (SLP) with the Supreme Court 269.00 Nil Nil
Carried over … 2,236.43 1,813.69 1,587.06
31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
Brought forward … 2,236.43 1,813.69 1,587.06
(iii) Custom duty claims (including interest and penalty) disputed by the Company relating to applicability and classification of coal [Payment made under protest against these claims of 135.52 crore (31st March, 2016 - Rs 135.52 crore, 1st April, 2015 - Rs 135.52 crore)] 170.01 170.01 170.01
(iv)(a) Way Leave fees (including interest) claims disputed by the Company relating to rates charged 84.18 72.58 62.60
(b) Demand raised by collector towards periodic revision in lease rent disputed by the Company.. 150.00 Nil Nil
(v) Rates, Cess, Excise and Custom Duty claims disputed by the Company 38.01 36.85 41.14
(vi) A Suit has been filed against the Company claiming compensation by way of damages for alleged wrongful disconnection of power supply. Nil Nil 20.51
Interest accrued thereon Nil Nil 120.60
(vii) Octroi claims disputed by the Company, in respect of octroi exemption claimed by the Company 5.03 5.03 5.03
(viii) Compensation disputed by private land owners in respect of private land acquired under the provisions of Maharashtra Industrial Development Act, 1961 22.00 22.00 22.00
(ix) Other claims against the Company not acknowledged as debts 45.46 26.93 98.12
2,751.12 2,147.09 2,127.07

Notes:

1 Amounts in respect of employee related claims/disputes, regulatory matters is not ascertainable.

2 Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending at various forums/authorities.

31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
b) Other Contingent Liabilities:
Taxation matters for which liability, relating to issues of deductibility and taxability, is disputed by the Company and provision is not made (computed on the basis of assessments which have been re-opened and assessments remaining to be completed) including interest demanded Rs 1.17 crore (31st March, 2016 - Rs 1.17 crore, 1st April, 2015 - Rs 1.17 crore) 259.69 232.99 209.52

c) Indirect exposures of the Company:

(i) Guarantees given : 31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
Coastal Gujarat Power Limited 2,781.69 3,039.24 3,403.27
Khopoli Investments Limited 2,877.72 3,217.97 2,521.21
(equivalent to USD 443.75 million) (equivalent to USD 485.75 million) (equivalent to USD 403.41 million)
Bhira Investments Limited 2,911.12 17.56 3,933.59
(equivalent to USD 448.90 million) (equivalent to USD 2.65 million) (equivalent to USD 629.40 million)
Trust Energy Resources Pte. Limited 777.55 763.47 268.43
(equivalent to USD 119.90 million) (equivalent to USD 115.24 million) (equivalent to USD 42.95 million)
Tubed Coal Mines Limited 11.36 11.36 11.36
Mandakini Coal Company Limited 20.26 20.26 115.79
Energy Eastern Pte. Limited 382.62 364.36 171.87
(equivalent to USD 59 million) (equivalent to USD 55 million) (equivalent to USD 27.50 million)
Tata Power Renewable Energy Limited 2,225.00 614.57 391.76
Maithon Power Limited Nil 126.58 144.00
Tata Power International Pte. Limited 278.86 517.33 488.04
(equivalent to USD 43 million) (equivalent to USD 78.09 million) (equivalent to USD 78.09 million)
Cennergi Pty. Limited Nil 46.72 257.07
(equivalent to ZAR 104.72 million) (equivalent to ZAR 496.48 million)
Tata Power Solar Systems Limited 300.00 150.00 Nil
Tata Power Trading Company Limited Nil 70.00 Nil
Welspun Renewables Energy Pvt. Ltd. 1,320.00 Nil Nil
(ii) Shares pledged : Nos. Nos. Nos.
Tata Teleservices Limited 18,27,08,138 18,27,08,138 18,27,08,138
Powerlinks Transmission Limited 23,86,80,000 23,86,80,000 23,86,80,000
Coastal Gujarat Power Limited 310,25,44,200 307,55,14,200 305,00,90,700
Industrial Energy Limited 12,56,74,200 12,56,74,200 12,56,74,200
Mandakini Coal Company Limited 2,00,43,000 2,00,43,000 2,00,43,000
Tata Power Renewable Energy Limited 25,81,14,935 25,81,14,935 24,86,79,935
Itezhi Tezhi Power Corporation 4,52,500 4,52,500 Nil

The Company has pledged the above shares of subsidiaries, joint ventures and TTSL, with the lenders for borrowings availed by the respective subsidiaries, joint ventures and TTSL.

d) (i) In respect of the Standby Charges dispute with Reliance Infrastructure Ltd. (R-Infra) for the period from 1st April, 1999 to 31st March, 2004, the Appellate Tribunal of Electricity (ATE), set aside the Maharashtra Electricity Regulatory Commission (MERC) Order dated 31st May, 2004 and directed the Company to refund to R-Infra as on 31st March, 2004, Rs 354.00 crore (including interest of Rs 15.14 crore) and pay interest at 10% per annum thereafter. As at 31st March, 2017 the accumulated interest was Rs 229.56 crore (31st March, 2016 - Rs 218.36 crore, 1st April, 2015 - Rs 207.16 crore) ( 11.20 crore for the year ended 31st March, 2017). On appeal, the Hon'ble Supreme Court vide its Interim Order dated 7th February, 2007, has stayed the ATE Order and in accordance with its directives, the Company has furnished a bank guarantee of the sum of Rs 227.00 crore and also deposited .227.00 crore with the Registrar General of the Court which has been withdrawn by R-Infra on furnishing the required undertaking to the Court.

Further, no adjustment has been made for the reversal in terms of the ATE Order dated 20th December, 2006, of Standby Charges credited in previous years estimated at Rs 519.00 crore, which will be adjusted, wholly by a withdrawal/ set o_ from certain Statutory Reserves as allowed by MERC. No provision has been made in the accounts towards interest that may be finally determined as payable to R-Infra. Since 1st April, 2004, the Company has accounted Standby Charges on the basis determined by the respective MERC Tariff Orders.

The Company is of the view, supported by legal opinion, that the ATE's Order can be successfully challenged and hence, adjustments, if any, will be recorded by the Company on the final outcome of the matter.

(ii) MERC vide its Tariff Order dated 11th June, 2004, had directed the Company to treat the investment in its wind energy project as outside the Mumbai Licensed Area, consider a normative Debt Equity ratio of 70:30 to fund the Company's fresh capital investments effective 1st April, 2003 and had also allowed a normative interest charge @ 10% p.a. on the said normative debt. The change to the Clear Profit and Reasonable Return (consequent to the change in the capital base) as a result of the above mentioned directives for the period upto 31st March, 2004, has been adjusted by MERC from the Statutory Reserves along with the disputed Standby Charges referred to in Note 37(d)(i) above. Consequently, the effect of these adjustments would be made with the adjustments pertaining to the Standby Charges dispute as mentioned in Note 37(d)(i) above. e) The Company, in terms of the Share Purchase Agreement, as stated in Note 36 (b)(ix), has undertaken additional "Surplus Land" obligation towards the purchase of 11,40,000 shares of Tata Communications Ltd. by Tata Sons Limited from Panatone Finvest Ltd. f) The Company had received demands from various levels of sales tax departments in respect of entry tax on imports aggregating .2,213.64 crore (including interest of Rs 643.99 crore and penalty of Rs 740.89 crore) for financial years 2005-06 to 2012-13. The Company paid Rs 246.21 crore under protest. The Hon'ble Bombay High Court upheld the levy, in respect of an appeal filed by the Company. The Company filed a Special Leave Petition against the above Order before the Hon'ble Supreme Court, which extended the interim stay granted by the Hon'ble Bombay High Court and requested to list the matter after pleadings are completed. The Company is of the view, supported by legal opinions, that the Company has a strong case on merits. Accordingly, Rs 1,967.43 crore (including interest of Rs 643.99 crore and penalty of

740.89 crore) will be accounted by the Company based on the final outcome of the matter [Refer Note No. 37 (a)(i)].

38. Other Disputes

In the matter of claims raised by the Company on R-Infra, towards (i) the difference in the energy charges for the period March 2001 to May 2004 and (ii) for minimum o_-take charges of energy for the period 1998 to 2000, MERC has issued an Order dated 12th December, 2007 in favour of the Company. The total amount payable by R-Infra, including interest, is estimated to be Rs 323.87 crore as on 31st December, 2007. ATE in its Order dated 12th May, 2008 on appeal by R-Infra, has directed R-Infra to pay the difference in the energy charges amounting to .34.98 crore for the period March 2001 to May 2004. In respect of the minimum o_-take charges of energy for the period 1998 to 2000 claimed by the Company from R-Infra, ATE has directed MERC that the issue be examined afresh and after the decision of the Hon'ble Supreme Court in the Appeals relating to the distribution licence and rebates given by R-Infra. The Company and R-Infra had filed appeals in the Hon'ble Supreme Court. The Hon'ble Supreme Court, vide its Order dated 14th December, 2009, has granted stay against ATE Order and has directed R-Infra to deposit with the Hon'ble Supreme Court, a sum of Rs 25.00 crore and furnish bank guarantee of Rs 9.98 crore. The Company had withdrawn the above mentioned sum subject to an undertaking to refund the amount with interest, in the event the Appeal is decided against the Company. On grounds of prudence, the Company has not recognised any income arising in respect of these matters.

39. Employee benefit plan

1. Defined Contribution plan

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return and recognises such contributions and shortfall, if any, as an expense in the year it is incurred. Having regard to the assets of the fund and the return on the investments, the Company does not expect any shortfall in the foreseeable future.

The Company has recognised Rs 24.02 crore (31st March, 2016 - Rs 21.53 crore) for provident fund contributions and 10.23 crore (31st March, 2016 - Rs 10.13 crore) for superannuation contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2. Defined benefit plans

2.1 The Company operates the following unfunded/funded defined benefit plans: Unfunded: Post-Employment Medical Benefits

The Company provides certain post-employment health care benefits to superannuated employees at some of its locations. In terms of the plan, the retired employees can avail free medical check-up and medicines at Company's facilities.

Pension (including Director pension)

The Company operates a defined benefit pension plan for employees who have completed 15 years of continuous service. The plan provides benefits to members in the form of a pre-determined lump sum payment on retirement. Executive Director, on retirement, is entitled to pension payable for life including HRA benefit. The level of benefit is approved by the Board of Directors of the Company from time to time.

Ex-Gratia Death Benefit

The Company has a defined benefit plan granting ex-gratia in case of death during service. The benefit consists of a predetermined lump sum amount along with a sum determined based on the last drawn basic salary per month and the length of service.

Retirement Gift

The Company has a defined benefit plan granting a pre-determined sum as retirement gift on superannuation of an employee.

Funded: Gratuity

The Company has a defined benefit gratuity plan. The gratuity plan is primarily governed by the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The level of benefits provided depends on the member's length of service and salary at the retirement date. The gratuity plan is funded plan. The fund has the form of a trust and is governed by Trustees appointed by the Company. The Trustees are responsible for the administration of the plan assets and for the definition of the investment strategy in accordance with the regulations. The funds are deployed in recognised insurer managed funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimates of expected gratuity payments.

2.2 The principal assumptions used for the purposes of the actuarial valuations were as follows:

Valuation as at 31st March, 2017 31st March, 2016 1st April, 2015
Discount Rate/Expected Rate of Return on Plan Assets 6.90% p.a. 7.70% p.a. 7.90% p.a.
Salary Growth Rate
— Management 8% p.a. 8% p.a. 8% p.a.
— Non-Management 7% p.a. 7% p.a. 7% p.a.
Turnover Rate - Age 21 to 44 years
— Management 8% p.a. 8% p.a. 8% p.a.
— Non-Management 0.50% p.a. 0.50% p.a. 0.50% p.a.
Turnover Rate - Age 45 years and above
— Management 2.50% p.a. 2.50% p.a. 2.50% p.a.
— Non-Management 0.50% p.a. 0.50% p.a. 0.50% p.a.
Pension Increase Rate 3% p.a. 3% p.a. 3% p.a.
Mortality Table Indian Assured Indian Assured Lives Indian Assured Lives
Lives Mortality Mortality (2006-08) Mortality (2006-08)
(2006-08) (modifified) Ult (modifified) Ult
(modifified) Ult
Annual Increase in Healthcare Cost 8% p.a. 8% p.a. 8% p.a.

2.3 The amounts recognised in the financial statements and the movements in the net defined benefit obligations over the year are as follows:

Funded Plan: Present value of obligation Fair value of plan assets Net amount
Rs crore Rs crore Rs crore
Balance as at 1st April, 2015 212.95 (186.78) 26.17
Current service cost 13.46 Nil 13.46
Past service cost Nil Nil Nil
Interest Cost/(Income) 16.11 (14.75) 1.36
Amount recognised in statement of Profit and loss 29.57 (14.75) 14.82
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in interest cost/(income) Nil 6.53 6.53
Actuarial (gains)/losses arising from changes in financial assumptions 2.77 Nil 2.77
Actuarial (gains)/losses arising from experience (3.61) Nil (3.61)
Amount recognised in other comprehensive income (0.84) 6.53 5.69
Employer contribution Nil Nil Nil
Benefits paid (18.02) Nil (18.02)
Acquisitions credit/(cost) Nil Nil Nil
Balance as at 31st March, 2016 223.66 (195.00) 28.66
Funded Plan: Present value of obligation Fair value of plan assets Net amount
Rs crore Rs crore Rs crore
Balance as at 31st March, 2016 223.66 (195.00) 28.66
Current service cost 13.97 Nil 13.97
Past service cost 12.42 Nil 12.42
Interest Cost/(Income) 15.91 (15.93) (0.02)
Amount recognised in statement of Profit and loss 42.30 (15.93) 26.37
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in interest cost/(income) Nil (12.70) (12.70)
Actuarial (gains)/losses arising from changes in financial assumptions 13.40 Nil 13.40
Actuarial (gains)/losses arising from experience 5.91 Nil 5.91
Amount recognised in other comprehensive income 19.31 (12.70) 6.61
Employer contribution Nil (23.74) (23.74)
Benefits paid (25.51) Nil (25.51)
Acquisitions credit/(cost) (3.72) Nil (3.72)
Balance as at 31st March, 2017 256.04 (247.37) 8.67

Composition of the plan assets is as follows: Insurer Managed Funds*

* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.

Unfunded Plan: Amount
Rs crore
Balance as at 1st April, 2015 57.89
Current service cost 2.39
Past service cost Nil
Interest Cost/(Income) 3.16
Amount recognised in statement of Profit and loss 5.55
Remeasurement (gains)/losses
Actuarial (gains)/losses arising from changes in financial assumptions 1.05
Actuarial (gains)/losses arising from experience 1.02
Amount recognised in other comprehensive income 2.07
Benefits paid (4.63)
Acquisitions credit/(cost) Nil
Balance as at 31st March, 2016 60.88
Unfunded Plan: Amount
Rs crore
Balance as at 31st March, 2016 60.88
Current service cost 2.49
Past service cost 0.42
Interest Cost/(Income) 4.49
Amount recognised in statement of Profit and loss 7.40
Remeasurement (gains)/losses
Actuarial (gains)/losses arising from changes in financial assumptions 4.68
Actuarial (gains)/losses arising from experience 0.11
Amount recognised in other comprehensive income 4.79
Benefits paid (5.46)
Acquisitions credit/(cost) Nil
Balance as at 31st March, 2017 67.61

2.4 Sensitivity analysis

The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is:

Change in assumption Increase in assumption Decrease in assumption
31st March, 2017 31st March, 2016 31st March, 2017 31st March, 2016 31st March, 2017 31st March, 2016
Rs crore crore Rs crore Rs crore
Discount rate 0.50% 0.50% Decrease by 11.52 9.33 Increase by 12.39 10.05
Salary/Pension
growth rate 0.50% 0.50% Increase by 11.49 7.60 Decrease by 10.79 7.24
Claim rates 5% 5% Decrease by 18.12 6.18 Increase by 16.30 5.21
Mortality rates 20% 20% Decrease by 3.64 1.05 Increase by 4.68 1.22
Healthcare cost 0.50% 0.50% Increase by 1.97 3.32 Decrease by 1.77 2.70

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be co-related. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

2.5 The expected maturity analysis of undiscounted defined benefit obligation is as follows:

Funded Unfunded
31st March, 2017 31st March, 2016 31st March, 2017 31st March, 2016
Rs crore Rs crore Rs crore Rs crore
Within 1 year 16.73 16.36 6.29 6.23
Between 1 - 2 years 26.98 25.41 6.82 6.53
Between 2 - 3 years 32.75 25.68 6.72 6.51
Between 3 - 4 years 33.47 30.52 6.80 6.46
Between 4 - 5 years 36.55 30.25 6.72 6.52
Beyond 5 years 174.60 166.88 34.64 20.20

The weighted average duration of the defined benefit obligation is 7 years (31st March, 2016 - 7 years).

The contribution expected to be made by the Company during the financial year 2017-18 has not been ascertained.

2.6 Risk exposure:

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Asset volatility: The plan liabilities are calculated using a discount rate set with reference to government bond yield. If plan assets underperform this yield, it will result in defficit. These are subject to interest rate risk. To o_set the risk, the plan assets have been deployed in high grade insurer managed funds.

Inflation rate risk:

Higher than expected increase in salary will increase the defined benefit obligation. Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligations is not straight forward and depends upon the combination of salary increase, discount rate and vesting criterion.

40. In respect of the contracts pertaining to the Strategic Engineering Business and Project Management Services, disclosures required as per Ind AS 11 are as follows: (a) Contract revenue recognised as revenue during the year Rs 506.13 crore (31st March, 2016 - Rs 549.88 crore).

(b) In respect of contracts in progress –

(i) The aggregate amount of costs incurred and recognised Profits upto 31st March, 2017 Rs 1,042.45 crore (31st March, 2016 - Rs 935.78 crore).

(ii) Advances and progress payments received as at 31st March, 2017 Rs 615.09 crore (31st March, 2016 - Rs 695.37 crore,

1st April, 2015 - Rs 813.25 crore).

(iii) Retention money included as at 31st March, 2017 in Sundry Debtors Rs 13.13 crore (31st March, 2016 - Rs 8.47 crore, 1st April, 2015 - Rs 6.32 crore).

(c) (i) Gross amount due to customers for contract work as a liability as at 31st March, 2017 Rs 44.20 crore (31st March, 2016 - 66.00 crore,1st April, 2015 - Rs 191.44 crore).

(ii) Gross amount due from customers for contract work as an asset as at 31st March, 2017 Rs 370.03 crore (31st March, 2016

- Rs 240.40 crore, 1st April, 2015 - Rs 191.89 crore).

41. Financial Instruments

1. Financial Assets and Financial Liabilities

1.1 The carrying value and fair value of financial instruments by categories as at 31st March, 2017 is as follows:

Rs crore

Fair value through P&L Fair value through OCI Derivative instruments not in hedging relationship (NDH) Amortised cost Total carrying value Total fair value
Assets:
Cash and cash equivalents Nil Nil Nil 141.60 141.60 141.60
Other balances with banks Nil Nil Nil 14.47 14.47 14.47
Trade receivables Nil Nil Nil 1,420.02 1,420.02 1,420.02
Investments #
Equity and Others Nil 797.88 Nil Nil 797.88 797.88
Government securities Nil Nil Nil 386.18 386.18 397.84
Unbilled revenues Nil Nil Nil 560.98 560.98 560.98
Loans Nil Nil Nil 22.82 22.82 22.82
Finance lease receivables Nil Nil Nil 612.63 612.63 612.63
Other financial assets Nil Nil Nil 1,196.81 1,196.81 1,196.81
Total Nil 797.88 Nil 4,355.51 5,153.39 5,165.05
Liabilities:
Trade payables Nil Nil Nil 1,380.25 1,380.25 1,380.25
Borrowings (includes current maturities) Nil Nil Nil 16,503.65 16,503.65 16,733.67
Other financial liabilities Nil Nil 49.91 1,350.58 1,400.49 1,400.49
Total Nil Nil 49.91 19,234.48 19,284.39 19,514.41

The carrying value and fair value of financial instruments by categories as at 31st March, 2016 is as follows:

Rs crore

Fair value through P&L Fair value through OCI Derivative instruments not in hedging relationship (NDH) Amortised cost Total carrying value Total fair value
Assets:
Cash and cash equivalents Nil Nil Nil 33.83 33.83 33.83
Other balances with banks Nil Nil Nil 12.06 12.06 12.06
Trade receivables Nil Nil Nil 1,242.99 1,242.99 1,242.99
Investments #
Equity and Others 258.27 1,107.50 Nil Nil 1,365.77 1,365.77
Government securities Nil Nil Nil 376.14 376.14 378.68
Unbilled revenues Nil Nil Nil 299.96 299.96 299.96
Loans Nil Nil Nil 3,750.45 3,750.45 3,750.45
Finance lease receivables Nil Nil Nil 666.43 666.43 666.43
Other financial assets Nil Nil 12.17 1,206.15 1,218.32 1,218.32
Total 258.27 1,107.50 12.17 7,588.01 8,965.95 8,968.49
Liabilities:
Trade payables Nil Nil Nil 1,296.38 1,296.38 1,296.38
Borrowings (includes current maturities) Nil Nil Nil 11,229.18 11,229.18 11,285.23
Other financial liabilities Nil Nil 9.54 1,152.37 1,161.91 1,161.91
Total Nil Nil 9.54 13,677.93 13,687.47 13,743.52

The carrying value and fair value of financial instruments by categories as at 1st April, 2015 is as follows:

Rs crore

Fair value through P&L Fair value through OCI Derivative instruments not in hedging relationship (NDH) Amortised cost Total carrying value Total fair value
Assets:
Cash and cash equivalents Nil Nil Nil 265.85 265.85 265.85
Other balances with banks Nil Nil Nil 13.42 13.42 13.42
Trade receivables Nil Nil Nil 1,745.14 1,745.14 1,745.14
Investments #
Equity and Others 285.67 1,353.85 Nil Nil 1,639.52 1,639.52
Government securities Nil Nil Nil 357.14 357.14 357.14
Unbilled revenues Nil Nil Nil 226.75 226.75 226.75
Loans Nil Nil Nil 2,907.14 2,907.14 2,907.14
Finance lease receivables Nil Nil Nil 703.60 703.60 703.60
Other financial assets Nil Nil 15.90 1,594.40 1,610.30 1,610.30
Total 285.67 1,353.85 15.90 7,813.44 9,468.86 9,468.86
Liabilities:
Trade payables Nil Nil Nil 1,334.58 1,334.58 1,334.58
Borrowings (includes current maturities) Nil Nil Nil 11,032.71 11,032.71 11,097.50
Other financial liabilities Nil Nil 0.47 1,745.66 1,746.13 1,746.13
Total Nil Nil 0.47 14,112.95 14,113.42 14,178.21

# Other than investment in subsidiaries, associates and joint ventures accounted at cost in accordance with Ind AS 27. Note: Certain unquoted equity instruments are not held for trading, instead they are held for medium or long-term strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as at FVTOCI as the directors believe this provides a more meaningful presentation for medium and long-term strategic investments, than reflecting changes in fair value immediately in Profit or loss.

1.2 Fair Value Hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels: Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. This includes quoted equity instruments, government securities, traded debentures (borrowings) and mutual funds that have quoted price. Level 2 Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This includes derivative financial instruments and investment in redeemable non-cumulative preference shares.

Level 3 Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. This includes unquoted equity shares.

The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosures are required) :

Rs crore

Level 1 Level 2 Level 3 Total
Financial Assets:
Government securities 397.84 Nil Nil 397.84
Equity Shares #
Quoted 11.88 Nil Nil 11.88
Unquoted Nil NIl 786.00 786.00
Total 409.72 Nil 786.00 1,195.72
Financial Liabilities:
Debentures 8,780.30 Nil Nil 8,780.30
Derivative financial liabilities Nil 49.91 NIl 49.91
Total 8,780.30 49.91 Nil 8,830.21
Level 1 Level 2 Level 3 Total
Financial Assets:
Government securities 378.68 Nil Nil 378.68
Other Debt Instruments Nil 258.27 Nil 258.27
Equity Shares #
Quoted 99.00 Nil Nil 99.00
Unquoted Nil Nil 1,008.50 1,008.50
Derivative financial assets Nil 12.17 Nil 12.17
Total 477.68 270.44 1,008.50 1,756.62
Financial Liabilities:
Debentures 5,143.94 Nil Nil 5,143.94
Derivative financial liabilities Nil 9.54 Nil 9.54
Total 5,143.94 9.54 Nil 5,153.48
Fair value hierarchy as at 1st April, 2015
Level 1 Level 2 Level 3 Total
Financial Assets:
Government securities 357.14 Nil Nil 357.14
Other Debt Instruments 42.02 243.65 Nil 285.67
Equity Shares #
Quoted 116.18 Nil Nil 116.18
Unquoted Nil Nil 1,237.67 1,237.67
Derivative financial assets Nil 15.90 Nil 15.90
Total 515.34 259.55 1,237.67 2,012.56
Financial Liabilities:
Debentures 4,910.16 Nil Nil 4,910.16
Derivative financial liabilities Nil 0.47 Nil 0.47
Total 4,910.16 0.47 Nil 4,910.63

# Other than investment in subsidiaries, associates and joint ventures accounted at cost in accordance with Ind AS 27.

Valuation technique(s) and key input(s):

Level 1 The fair value of mutual funds, government securities, quoted equity shares and debentures is based on quoted price. Level 2 Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. The fair value of redeemable non-cumulative preference shares is based on discounted cash flow at a discount rate that reflects the current investment rate at the end of reporting period.

Level 3 The fair value of unquoted equity shares is determined using income approach (discounted cash flow), market observable price method, option pricing model, etc.

In case of investment in TTSL shares, in the absence of updated information as stated in Note 34(b), the fair value has been determined based on third party valuation report obtained from TTSL as at 30th September, 2016.

The cost of certain unquoted investments approximate their fair value because there is a range of possible fair value measurements and the cost represents the best estimate of fair value within that range.

1.3 Reconciliation of level 3 fair value measurements

For the year ended 31st March, 2017 Rs crore
Unlisted shares irrevocably designated as at
FVTOCI
Opening balance 1,008.50
Total Loss in other comprehensive income (124.46)
Held for Sale/Disposals/Settlements (98.04)
Closing balance 786.00
For the year ended 31st March, 2016 Rs crore
Unlisted shares irrevocably designated as at
FVTOCI
Opening balance 1,237.67
Total Loss in other comprehensive income (229.17)
Held for Sale/Disposals/Settlements Nil
Closing balance 1,008.50

All gains and losses included in other comprehensive income relate to unlisted shares held at the end of the reporting period and are reported under "Equity Instruments through Other Comprehensive Income".

2. Capital Management & Gearing Ratio

The Company's capital management is intended to create value for shareholders by facilitating the meeting of its long-term and short-term goals. Its Capital structure consists of net debt (borrowings as detailed in notes below) and total equity. Gearing ratio

The gearing ratio at the end of the reporting period was as follows:

31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
Debt (i) 16,503.65 11,229.18 11,032.71
Cash and Bank balances (including cash and bank balances in a disposal group held for sale) 156.07 45.89 279.27
Net debt 16,347.58 11,183.29 10,753.44
Total Equity (ii) 16,548.56 16,850.46 16,228.64
Net debt to equity ratio (%) 98.79 66.37 66.26

(i) Debt is defined as long-term borrowings (including current maturities) and short-term borrowings (excluding derivative, financial guarantee contracts and contingent considerations).

(ii) Equity is defined as Equity share capital, Unsecured perpetual securities and other equity including reserves and surplus.

3. Financial risk management

In its ordinary operations, the Company's activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The Company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the Board of Directors. The following is the summary of the main risks:

3.1 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the company's income or value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

3.1.1 Foreign currency risk management

The Company is exposed to foreign exchange risk through its operations in international projects and purchase of coal from Indonesia and elsewhere and overseas borrowings. The results of the Company's operations can be affected as the rupee appreciates/depreciates against these currencies. The Company enters into derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The following table analyses foreign currency assets and liabilities on balance sheet dates:

31st March, 2017

31st March, 2016

1st April, 2015
Foreign Currency Foreign Currency Rs crore Foreign Currency Rs crore Foreign Currency Rs crore
Liabilities (in millions) in millions) (in millions)
In USD 261.14 1,693.48 196.34 1,300.65 174.20 1,088.69
In EURO 7.05 48.84 13.24 99.81 12.14 81.57
In GBP 3.29 29.18 8.13 77.61 9.24 85.45
In JPY 15.38 0.89 8.21 0.48 107.06 5.58
In SGD 0.01 0.05 0.01 0.05 Nil Nil
31st March, 2017

31st March, 2016

1st April, 2015
Foreign Currency Assets Foreign Currency Rs crore Foreign Currency Rs crore Foreign Currency Rs crore
(in millions) (in millions) (in millions)
In USD 8.88 57.61 8.36 55.39 14.93 93.31
In ZAR 0.21 0.10 0.72 0.32 Nil Nil
In SGD 0.03 0.15 Nil Nil Nil Nil
In VND 77.48 0.01 11.24 * Nil Nil
In TAKA 0.21 0.02 0.21 0.02 0.22 0.02
* Denotes figures below Rs 50,000/-

(a) Foreign currency sensitivity analysis

For the year ended 31st March, 2017 and 31st March, 2016, the impact of every rupee 1 depreciation / appreciation in the exchange rate between the Indian Rupee and US Dollar on Profit before tax of the Company, given in below table:

As at 31st March, 2017

As at 31st March, 2016

Rupee depreciate by INR 1 against Rupee appreciate by INR 1 against Rupee depreciate by INR 1 against Rupee appreciate by INR 1 against
USD USD USD USD
On Forward and Option Contracts (+) Rs 24.88 crore (-) Rs 24.88 crore (+) Rs 12.05 crore (-) Rs 11.86 crore
On Foreign Currency Liability (net) (Refer Note 2 below) (-) Rs 25.23 crore (+) Rs 25.23 crore (-) Rs 18.80 crore (+) Rs 18.80 crore

Notes:

1) +/- Gain/Loss

2) The impact of depreciation/appreciation on foreign currency other than US Dollar on Profit before tax of the Company is not material.

(b) Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the risk of changes in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a Bank or a Financial Institution. These derivative financial instruments are valued based on quoted prices for similar asset and liabilities in active markets or inputs that is directly or indirectly observable in the marketplace.

The following table gives details in respect of outstanding foreign exchange forward and option contracts:

Outstanding Contracts 31st March, 2017
Foreign Currency Nominal Value in Fair value in
Other Derivatives Buy/Sell (in millions) Rs crore Rs crore
Forward contracts
In USD Buy 242.13 1,570.19 (48.41)
In EURO Buy 6.81 47.18 (1.10)
In GBP Buy 3.25 26.27 (0.40)
Option contracts
In USD Nil Nil Nil
Outstanding Contracts

31st March, 2016

Foreign Currency Nominal Value in Fair value in
Other Derivatives (in millions) Rs crore Rs crore
Forward contracts
In USD Buy 65.58 434.45 (9.32)
In EURO Buy 12.43 93.69 2.07
In GBP Buy 8.06 76.94 (2.29)
Option contracts
In USD Buy 118.73 786.53 12.17
Outstanding Contracts 1st April, 2015
Foreign Currency Nominal Value in Fair value in
Other Derivatives (in millions) Rs crore Rs crore
Forward contracts
In USD Buy 79.22 495.08 3.56
In EURO Buy 11.02 74.07 (2.77)
In GBP Buy 6.57 60.74 (1.26)
Option contract
In USD Buy 75.40 471.20 15.90

3.1.2 Interest rate risk management

Interest rate risk arises from the potential changes in interest rates that may have adverse effects on the Company in the reporting period or in future years.

Interest rate sensitivity:

The sensitivity analysis below have been determined based on exposure to interest rates for term loans and debentures at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans and debentures that have floating rates.

If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on Company's Profit in that financial year would have been as below:

As at 31st March, 2017

As at 31st March, 2016

50 bps increase 50 bps decrease 50 bps increase 50 bps decrease
Interest expense on loan (+) Rs 20.88 crore (-) Rs 20.88 crore (+) Rs 14.32 crore (-) Rs 14.32 crore
Effect on Profit before tax (-) Rs 20.88 crore (+) Rs 20.88 crore (-) Rs 14.32 crore (+) Rs 14.32 crore

3.2 Credit risk management

The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Financial assets that potentially expose the Company to credit risks are listed below:

31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
Trade receivables 1,420.02 1,242.99 1,745.14
Loan 22.82 3,750.45 2,907.14
Finance lease receivables 612.63 666.43 703.60
Other financial assets 1,196.81 1,218.32 1,610.30
Total 3,252.28 6,878.19 6,966.18

Refer Note No. 7.1 credit risk and other information in respect of trade receivables. Other receivables as stated above are due from the parties under normal course of the business and as such the Company believes exposure to credit risk to be minimal.

3.3 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity Profiles of financial assets and liabilities. The maturity Profile of the financial assets are listed below:

Expected contractual maturity for Financial Liabilities

Rs crore

Up to 1 year 1 to 5 years 5 + years Total Carrying Amount
31st March, 2017
Non-Derivatives
Borrowings # 8,901.29 6,551.00 13,422.97 28,875.26 16,900.52
Trade Payables 1,344.68 35.57 Nil 1,380.25 1,380.25
Other Financial Liabilities 921.73 31.98 Nil 953.71 953.71
Total Non-Derivative Liabilities 11,167.70 6,618.55 13,422.97 31,209.22 19,234.48
Derivatives
Other Financial Liabilities 49.91 Nil Nil 49.91 49.91
Total Derivative Liabilities 49.91 Nil Nil 49.91 49.91
Up to 1 year 1 to 5 years 5 + years Total Carrying Amount
31st March, 2016
Non-Derivatives
Borrowings # 3,167.02 7,428.32 12,841.70 23,437.04 11,455.89
Trade Payables 1,263.26 33.12 Nil 1,296.38 1,296.38
Other Financial Liabilities 892.07 33.59 Nil 925.66 925.66
Total Non-Derivative Liabilities 5,322.35 7,495.03 12,841.70 25,659.08 13,677.93
Derivatives
Other Financial Liabilities 9.54 Nil NIl 9.54 9.54
Total Derivative Liabilities 9.54 NIl NIl 9.54 9.54
1st April, 2015
Non-Derivatives
Borrowings # 3,170.13 7,962.90 12,357.18 23,490.21 11,255.37
Trade Payables 1,304.66 29.92 NIl 1,334.58 1,334.58
Other Financial Liabilities 1,490.67 32.33 NIl 1,523.00 1,523.00
Total Non-Derivative Liabilities 5,965.46 8,025.15 12,357.18 26,347.79 14,112.95
Derivatives
Other Financial Liabilities 0.47 NIl NIl 0.47 0.47
Total Derivative Liabilities 0.47 NIl NIl 0.47 0.47

# The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options available with the Company. The amounts included above for variable interest rate instruments for non-derivative liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting period.

The amounts included in Note 37(c)(i) for financial guarantee contracts are the maximum amounts the Company could be forced to settle under respective arrangements for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee. Based on expectations at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the arrangement. However, this estimate is subject to change depending on the probability of the counterparty claiming under the guarantee which is a function of the likelihood that the financial receivables held by the counterparty which are guaranteed suffer credit losses.

The Company has access to financing facilities as described in Note No. 3.4 below. The Company expects to meet its obligations from operating cash flows and proceeds of maturing financial assets.

3.4 Financing facilities

31st March, 2017 31st March, 2016 1st April, 2015
Rs crore Rs crore Rs crore
Unsecured bank overdraft, reviewed annually and payable at call:
Amount used 0.32 148.93 Nil
Amount unused 2,304.68 2,466.07 2,425.00
Secured bank overdraft facility :
Amount used Nil Nil Nil
Amount unused 250.00 250.00 650.00
Secured bank loan facilities with various maturity dates through to 31st March, 2018 and which may be extended by mutual agreement:
Amount used 4,833.00 4,437.00 4,516.76
Amount unused 1,147.00 360.00 221.24

42. Related Party Disclosures:

Disclosure as required by Ind AS 24 - "Related Party Disclosures" are as follows: Names of the related parties and description of relationship:

(a) Related parties where control exists:

(i) Subsidiaries 1) Af-Taab Investment Co. Ltd. (AICL)
2) Chemical Terminal Trombay Ltd. (CTTL)
3) Tata Power Trading Co. Ltd. (TPTCL)
4) NELCO Ltd. (NELCO)
5) Maithon Power Ltd. (MPL)
6) Tata Power Delhi Distribution Ltd. (TPDDL)
7) Coastal Gujarat Power Ltd. (CGPL)
8) Industrial Power Utility Ltd. (IPUL)
9) Tata Power Renewable Energy Ltd. (TPREL)
10) Tata Power Solar Systems Ltd. (TPSSL)
11) Tata Power Jamshedpur Distribution Ltd. (TPJDL)
12) Tata Power International Pte. Ltd. (TPIPL)
13) Tata Ceramics Ltd. (TCL) (w.e.f. 28th May, 2015)
14) Bhira Investments Ltd. (BIL)
15) Bhivpuri Investments Ltd. (BHIL)
16) Khopoli Investments Ltd. (KIL)
17) Trust Energy Resources Pte. Ltd. (TERL)
18) Indo Rama Renewables Jath Ltd ** (IRRJL)
19) Energy Eastern Pte. Ltd. ** (EEL)
20) Tatanet Services Ltd.** (TNSL)
21) PT Sumber Energi Andalan Tbk. ** (SEA)
22) Tata Power Green Energy Ltd. ** (TPGEL)
23) NDPL Infra Ltd. ** (NDPLIL)
24) Supa Windfarm Ltd. ** (SWL) (w.e.f. 10th December, 2015)
25) Poolavadi Windfarm Ltd. ** (PWL) (w.e.f. 9th January, 2016)
26) Nivade Windfarm Ltd. ** (NWL) (w.e.f. 17th December, 2015)
27) Welspun Renewables Energy Private Ltd. ** (WREPL)
28) Clean Sustainable Solar Energy Private Ltd. ** (CSSEPL)
29) Dreisatz Mysolar24 Private Ltd. ** (DMPL)
30) MI Mysolar24 Private Ltd. ** (MMPL)
31) Northwest Energy Private Ltd. ** (NEPL)
32) Solarsys Energy Private Ltd. ** (SEPL)
33) Solarsys Renewable Energy Private Ltd. ** (SREPL)
34) Unity Power Private Ltd. ** (UUPL)
35) Viraj Renewables Energy Private Ltd. ** (VREPL)
36) Welspun Energy Jharkhand Private Ltd. ** (WEJPL)
37) Welspun Energy Maharashtra Private Ltd. ** (WEMPL)
38) Welspun Energy Rajasthan Private Ltd. ** (WERPL)
39) Welspun Solar AP Private Ltd. ** (WSAPL)
40) Welspun Solar Kannada Private Ltd. ** (WSKPL)
41) Welspun Solar Madhya Pradesh Private Ltd. ** (WSMPPL)
42) Welspun Solar Punjab Private Ltd. ** (WSPPL)
43) Welspun Solar Rajasthan Private Ltd. ** (WSRPL)
44) Welspun Solar Tech Private Ltd. ** (WSTPL)
45) Welspun Solar UP Private Ltd. ** (WSUPL)
46) Welspun Urja Gujarat Private Ltd. ** (WUGPL)
47) Chirasthayee Saurya Ltd. ** (CSL)
48) Nelco Network Products Ltd. ** (NNPL)
49) Vagarai Windfarm Ltd. ** (VWL)
50) Welspun Urja India Ltd. ** (WUIL)
** Through Subsidiary Companies
(ii) Employment Benefit Funds 1) Tata Power Superannuation Fund
2) Tata Power Gratuity Fund
3) Tata Power Consolidated Provident Fund
(b) Other related parties (where transactions have taken place during the year and previous year / balances outstanding) :
(i) Associates 1) Tata Projects Ltd. (TPL)
2) Yashmun Engineers Ltd. (YEL)
3) Dagacchu Hydro Power Corporation Limited
4) Tata Communications Limited
(ii) Joint Venture Companies 1) Cennergi Pty. Ltd. ** (CPL)
2) Mandakini Coal Company Ltd. (MCCL)
3) Tubed Coal Mines Ltd. (TCML)
4) Itezhi Tezhi Power Corporation (ITPC) (w.e.f. 29th April, 2015)
5) Adjaristsqali Georgia LLC ** (AGL)
6) LTH Milcom Private Limited
7) Powerlinks Transmission Ltd. (PTL)
8) Industrial Energy Ltd. (IEL)
9) Dugar Hydro Power Ltd. (DHPL)
** Joint Ventures of Subsidiaries
(c) (i) Promoters holding together with its
Subsidiary more than 20% Tata Sons Ltd.
(ii) Subsidiaries and Jointly Controlled Entities of Promoters (where transactions have taken place during the year and previous year / balances outstanding) :
1) Drive India Enterprise Solutions Limited (ceased w.e.f. 01.09.2015)
2) e-Nxt Financials Limited (merged with Tata Business Support Services Limited, the Appointed date i.e. 01.04.2014, effective date: 01.07.2015)
3) Ewart Investments Limited
4) In_niti Retail Limited
5) Tata Africa Holdings (SA) (Proprietary) Limited
6) Tata AG, Zug
7) Tata AIG General Insurance Company Limited
8) Tata Business Support Services Limited
9) Tata Capital Limited
10) Tata Consultancy Services Limited
11) Tata Consulting Engineers Limited
12) Tata Housing Development Company Limited
13) Tata Industries Limited
14) Tata Interactive Systems AG
15) Tata Investment Corporation Limited
16) Tata Realty and Infrastructure Limited
17) Tata Teleservices (Maharashtra) Limited (w.e.f. 02.02.2017)
18) Tata Teleservices Limited (ceased to be an associate and is a subsidiary w.e.f. 02.02.2017)
19) TC Travel and Services Limited
20) THDC Management Services Limited (formerly THDC Facility Management Limited)
(d) Key Management Personnel 1) Anil Sardana - CEO & Managing Director
2) Ashok Sethi - COO & Executive Director
3) Ramesh Subramanyam - Chief Financial Officer

(e) Details of Transactions:

Particulars Subsidiaries Associates Joint Ventures Key Management Personnel Employee Benefit Fund Promoter Promoters
Group
Purchase of goods/power (Net of Discount Received on Prompt Payment)... 73.73 - - - - 0.03 -
75.60 - - - - 0.44 -
Sale of goods/power (Net of Discount on Prompt Payment) 150.47 31.84 - - - 36.43 -
190.74 40.59 0.09 - - 51.24 -
Purchase of fixed assets 0.97 2.67 - - - 7.70 6.77
- 8.44 - - - 7.39 -
Rendering of services 110.75 2.78 24.86 - - 1.28 0.39
90.33 0.14 52.43 - - 1.24 0.52
Receiving of services 1.34 13.43 - - - 45.22 0.40
1.94 17.69 0.05 - - 36.13 0.37
Brand equity contribution - - - - - - 18.30
- - - - - - 21.63
Contribution to Employee Benefit Plans .. - - - - 57.99 - -
- - - - 31.66 - -
Guarantee, collaterals etc. given 7,740.20$ - - - - - -
6,553.30$ - - - - - -
Guarantee, collaterals etc. cancelled 2,579.13$ - 50.05$ - - - -
9,566.22$ - 283.16$ - - - -
Remuneration paid - - - 13.89* - - -
- - - 11.30* - - -
Interest income 223.19 - 0.44 - - - -
399.45 - 0.84 - - - -
Interest paid - 0.17 - - - 14.93 -
- 0.09 - - - 14.82 -
Dividend received 519.23 12.43 114.50 - - - -
204.30 12.24 93.07 - - 0.05 16.02
Dividend paid - - - - - 1.85 109.17
- - - - - 4.18 106.84
Guarantee commission earned 23.65 - 1.23 - - - -
41.44 - 1.31 - - - -
Loans given 187.13 - 0.02 - - - -
1,177.26 - 49.88 - - - -
Equity contribution (includes advance towards equity contribution and perpetual bonds) @ 4,800.80 - 0.15 - - - -
193.34 - 33.06 - - - -
Loans provided for as doubtful advances (including interest) 0.01 - 0.02 - - - -
1.24 - 54.16 - - - -
Particulars Subsidiaries Associates Joint Ventures Key Management Personnel Employee Benefit Fund Promoter Promoters
Group
Loans repaid (including loan converted
into equity) 356.62 - 13.25 - - - -
317.85 - 39.86 - - - -
Deposits taken - 0.81 - - - 0.11 -
- - - - - 1.86 -
Deposits refunded - - - - - 0.74 -
- 0.04 - - - 0.07 -
Purchase of Investments 32.93 - - - - - -
- - - - - 312.29 -
Liability written back - - - - - 0.10 -
- - - - - - -
Purchase of Business 13.35 - - - - - -
- - - - - - -
Balances outstanding
Perpetual Securities Outsanding
including Interest 2017 - - - - - 136.17 -
2016 - - - - - 136.21 -
2015 - - - - - 136.17 -
Other receivables 2017 71.64 4.44 9.58 - - 3.83 -
2016 51.31 2.75 39.26 - - 5.21 -
2015 48.03 7.80 4.20 - - 4.56 -
Loans (including interest thereon) 2017 1.25 1.27 71.01 - - - -
2016 4,027.95 1.27 83.23 - - - -
2015 3,204.39 1.27 44.35 - - - -
Loans provided for as doubtful advances
(including interest thereon) 2017 1.25 1.27 54.18 - - - -
2016 1.24 1.27 54.16 - - - -
2015 - 1.27 - - - - -
Deposits taken outstanding 2017 - 1.53 - - - 1.33 -
2016 - 0.72 - - - 1.99 -
2015 - 0.74 - - - 0.15 -
Security deposits given 2017 - - - - - - -
2016 - - - - - - -
2015 - - - - - - 0.50
Preference Shares Outstanding including interest 2017 285.60 - - - - - -
2016 578.01 - - - - - -
2015 594.75 - - - - - -
Advance towards equity 2017 168.00 - - - - - -
2016 - - - - - - -
2015 - - - - - - -
Promoter Promoters
Particulars Subsidiaries Associates Joint Ventures Key Management Personnel Employee Benefit Fund Group
Dividend receivable 2017 92.23 - - - - - -
2016 - - - - - - -
2015 75.00 - - - - - -
Guarantees, collaterals etc. outstanding .. 2017 13,854.55 - 31.62 - - - -
2016 8,881.05 - 78.34 - - - -
2015 11,304.75 - 384.22 - - - -
Letter of comfort outstanding 2017 - - 77.47 - - - -
2016 - - 71.54 - - - -
2015 - - 83.03 - - - -
Other payables 2017 10.61 4.09 2.02 - 15.67 5.97 22.07
2016 7.62 3.92 0.02 - 34.59 1.21 25.47
2015 7.42 2.07 - - 26.74 1.22 23.96

Notes:

@ During the year, Loan and Interest accrued thereon given to Coastal Gujarat Power Limited and Tata Power Renewable Energy Limited amounting to Rs 3,855.89 crore (Previous period - Rs Nil) has been converted into Investment in Perpetual Securities and Investment in Equity.

$ Includes guarantees given and cancelled in foreign currency, converted in Indian currency by applying average exchange rates.

* Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognised as per Ind AS 19 - ‘Employee Benefits' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

Previous year's figures are in italics.

43. Disclosure under Regulation 34(3) of Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure

Requirements) Regulations, 2015

Loans and advances (excluding advance towards equity) in the nature of loans given to Subsidiaries, Joint Ventures and Associates:

Name of the Company Relationship Amount Outstanding as at the year-end ** Maximum Amount Outstanding during the year** Investments in Company's Shares
Rs crore Rs crore (Nos.)
Tata Power Renewable Energy Ltd Subsidiary Nil 182.00 Nil
106.00 106.00 Nil
Coastal Gujarat Power Ltd Subsidiary Nil 3,544.30 Nil
3,484.30 3,734.30 Nil
Industrial Energy Ltd Joint Venture Nil Nil Nil
Nil 39.86 Nil
Maithon Power Ltd. Subsidiary Nil 123.50 Nil
123.50 123.50 Nil
Tata Power Jamshedpur Distribution Ltd $ Subsidiary 0.01 0.01 Nil
Nil 7.92 Nil
NELCO Ltd Subsidiary Nil Nil Nil
Nil 5.00 Nil
Mandakini Coal Company Ltd. $ Joint Venture 54.18 54.18 Nil
54.16 54.16 Nil
Itezhi Tezhi Power Corporation Joint Venture 15.48 29.05 Nil
29.05 29.05 Nil
Nelito Systems Ltd. $ Associate 1.27 1.27 Nil
1.27 1.27 Nil

Notes:

** Excluding interest accrued. $ Provided for.

Previous year's figures are in italics.

44. Segment Reporting:

Information reported to the Chief Operating Decisions Maker (CODM) for the purpose of resource allocation and assessment of segment performance focus on business segment which comprises of Power and Others.

Specifically, the Company's reportable segments under Ind AS are as follows:

Power: Comprises of Generation, Transmission, Distribution and assets relating to Power Business given on Finance Lease Others: Comprises of Defence Electronics and Engineering, Project Contracts/Infrastructure Management Services and Property Development Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment and manpower Efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

Rs crore
Power Others Elimi- nations Total
REVENUE
External Revenue 6,574.35 707.71 - 7,282.06
7,589.43 726.10 - 8,315.53
RESULT
Total Segment Results 1,595.56 97.59 - 1,693.15
2,066.54 81.54 - 2,148.08
Finance Costs (1,295.68)
(1,146.12)
Exceptional Item - Unallocable (651.45)
-
Unallocable Income net of Unallocable Expense 760.11
732.33
Income Taxes (222.68)
(379.30)
Profit After Tax 283.45
1,354.99
OTHER INFORMATION
Segment Assets 14,168.67 2,323.33 - 16,492.00
14,740.20 1,643.23 - 16,383.43
Unallocable Assets 23,376.67
18,231.19
Total Assets 39,868.67
34,614.62
Segment Liabilities 4,338.25 547.35 - 4,885.60
4,128.00 628.39 - 4,756.39
Unallocable Liabilities 18,434.51
13,007.77
Total Liabilities 9,830.42 1,775.98 23,320.11
10,612.20 1,014.84 17,764.16
Capital Expenditure 610.46 272.39 - 882.85
773.21 236.06 - 1,009.27
Non-cash Expenses other than Depreciation/Amortisation
(to the extent allocable to segment) 18.59 17.77 - 36.36
20.42 3.99 - 24.41
Depreciation/Amortisation (to the extent allocable to segment) 600.82 33.39 - 634.21
578.13 26.33 - 604.46
Rs crore
Reconciliation of Revenue 31st March, 31st March,
2017 2016
Revenue from Operations (Net) 7,218.06 8,696.94
Add/(Less): Regulatory income/(expense) (net) (13.00) (438.00)
Add/(Less): Regulatory income (net) in respect of earlier years 77.00 56.59
Total Segment Revenue as reported above 7,282.06 8,315.53
Note: Previous year's figures are in italics.

45. Earnings Per Share

31st March, 2017 31st March, 2016
Basic earning per share
Profit for the year (Rs crore) 283.45 1,354.99
Less: Distribution on Unsecured Perpetual Securities (Net of Tax) (Rs crore) 111.82 111.82
Net Profit for the year attributable to the equity shareholders (Rs crore) 171.63 1,243.17
The weighted average number of equity shares for basic earnings per share (Nos.) .. 270,76,05,570 270,76,05,570
Par value per share (in ) 1.00 1.00
Basic earnings per share (in ) 0.63 4.59
Diluted earning per share 0.63 4.59

Note: The Company did not have any potentially dilutive securities in any of the period presented.

46. Disclosure in terms of G.S.R.307(E) dated 30th March, 2017 issued by the Ministry of Corporate Affairs, Government of

India

The details of Specified Bank Notes (SBN) held and transacted during the period 8th November, 2016 to 30th December, 2016, the denomination wiss SBNs and other notes as per the notification is given below:

Specified Bank notes Other denomination notes Total
Rs crore Rs crore Rs crore
Closing cash in hand as at 8th November, 2016 Nil Nil Nil
Add : Permitted receipts 35.88 15.33 51.21
Less : Permitted payments Nil Nil Nil
Less : Amount deposited in Banks 35.88 15.33 51.21
Closing cash in hand as at 30th December, 2016 Nil Nil Nil

During the period from 10th November, 2016 to 15th December, 2016, the Company was allowed to receive SBNs as a legal tender from its customers towards payment of their electricity dues. The Company has designated collection centres, which are permitted to receive cash from its customers. Cash collected at these centres is directly deposited into Company's Bank accounts. The Company has received details of SBNs deposited from respective banks, and has considered amount collected as equivalent to amount deposited.

47. Explanation of Transition to Ind AS and effect of Ind AS adoption

47.1 First-time adoption-mandatory exceptions, optional exemptions

a. Overall principle

The Company has prepared the opening balance sheet as per Ind AS as of 1st April, 2015 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to certain exceptions and certain optional exemptions availed by the Company as detailed below.

b. Derecognition of financial assets and liabilities

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after 1st April, 2015 (the transition date).

c. Classification of debt instruments

The Company has determined the classification of debt instruments in terms of whether they meet the amortised cost criteria or the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.

d. Deemed cost for PPE, investment property and intangible assets

The Company has elected to restate retrospectively generally all its property, plant and equipment and intangible assets as per the Ind AS 16 on transition date (as at 1st April, 2015).

e. Determining whether an arrangement contains a lease

The Company has applied Appendix C of Ind AS 17 "Determining whether an Arrangement contains a Lease" to determine whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing as of the transition date.

f. Equity investments at FVTOCI

The Company has designated investment in equity shares of its non-current investments as FVTOCI on the basis of facts and circumstances that existed at the transition date.

g. Investments in subsidiaries, joint ventures and associates

The Company has elected to adopt the carrying value under previous GAAP as on the date of transition i.e. 1st April, 2015 in its separate financial statements and use that carrying values as its deemed cost as of the transition date.

47.2 Reconciliation of Total Equity as at 31st March, 2016 and 1st April, 2015.

Notes As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore
Equity as reported under previous GAAP 16,231.96 15,966.62
Arrangements accounted as finance lease (c) 80.88 130.22
Decapitalisation of foreign exchange losses under Ind AS (f) (171.24) (191.68)
Effect of measuring Fair value of investments (a), (b) 108.93 128.83
Changes in fair value of derivative contracts (d) 16.36 7.15
Impact of redeemable preference shares accounted as financial asset (g) 83.76 58.48
Recognition of finance income on interest free loans and guarantees given to subsidiaries (g) 413.43 67.33
Increase in borrowing cost pursuant to application of effective interest rate. (i) 17.11 21.13
Others 1.14 Nil
Tax on above adjustments (h) (379.07) (390.78)
Distribution on perpetual securities including tax thereon 47.28 47.01
Dividend including tax thereon (e) 399.92 384.33
Equity under Ind AS 16,850.46 16,228.64

47.3 Reconciliation of Total Comprehensive Income for the year ended 31st March, 2016.

Notes As at 31st March, 2016
Rs crore
Profit after tax reported under per previous GAAP 771.62
Adjustments :
Arrangements accounted as finance lease (c) (49.34)
Decapitalisation of foreign exchange losses under Ind AS (f) 27.86
Changes in fair value of derivative contracts (d) 9.21
Impact of redeemable preference shares accounted as financial asset (g) 25.28
Recognition of finance income on interest free loans and guarantees given to subsidiaries (g) 346.10
Transfer to contingency reserve fund through Profit and loss (21.00)
Reclassifiction of actuarial gains/losses, arising in respect of employee benefit schemes, to other comprehensive income (j) 5.20
Reclassifiction of fair value of investments through other comprehensive income (b) 226.48
Others (i), (a) (4.58)
Tax on above adjustments (h) 18.16
Total effect of transition to Ind AS 583.37
Profit for the year as per Ind AS 1,354.99
Other comprehensive income/(expense) for the year (net of tax) (258.00)
Total comprehensive income reported under Ind AS 1,096.99

47.4 effect of Ind AS adoption on the Statement of Cash Flow for the year ended 31st March, 2016.

Rs crore
For the year ended 31st March, 2016
Previous GAAP Effect of Transition to Ind AS Ind AS
Net Cash flow from/(used in) operating activities 2,987.45 (40.20) 2,947.25
Net Cash flow from/(used in) investing activities (1,667.69) 40.20 (1,627.49)
Net Cash flow from/(used in) financing activities (1,551.78) (148.93) (1,700.71)
Net Increase/(Decrease) in cash and cash equivalents (232.02) (148.93) (380.95)
Cash and Cash equivalents at the beginning of the period 265.85 Nil 265.85
Cash and Cash equivalents at the end of the period 33.83 (148.93) (115.10)

Analysis of Cash and Cash Equivalents as at 31st March, 2016 and as at 1st April, 2015 for the purposes of statement of cash flow under Ind AS

As at 31st March, 2016 As at 1st April, 2015
Rs crore Rs crore
Cash and Cash equivalents for the purposes of statement of cash flow as per previous GAAP 33.83 265.85
Bank Overdrafts (148.93) Nil
Cash and Cash equivalents for the purpose of statement of cash flow under Ind AS (115.10) 265.85

47.5 Notes to reconciliations between Previous GAAP and Ind AS

(a) Under previous GAAP, current investments were stated at lower of cost and fair value. Under Ind AS these financial assets have been classified as Fair Value through Profit and Loss (FVTPL) on the date of transition and fair value changes after the date of transition have been recognised in statement of Profit and loss.

(b) Under previous GAAP, non-current investments were stated at cost less provision for diminution in value of investment, if any. Under Ind AS, financial assets in equity instruments have been classified as Fair Value through Other Comprehensive Income (FVTOCI) through an irrevocable election at the date of transition.

(c) Under previous GAAP, finance lease arrangement is recorded based on the legal form. Whereas under Ind AS arrangement that do not take the legal form of a lease but fulfilment of which is dependent on the use of specific assets and which convey the right to use the assets are accounted for as lease.

(d) Under previous GAAP, the net mark-to market losses on derivative financial instruments, as at the Balance Sheet date, were recognised in statement of Profit and loss and the net gains, if any, were ignored. Under Ind AS, such derivative financial instruments are to be recognised at fair value and the changes are recognised in statement of Profit and loss. (e) Under previous GAAP, dividend payable is recognised as a liability in the period to which it relates. Under Ind AS, dividend to shareholders is recognised when declared by the members in annual general meeting.

(f) Under the previous GAAP the Company had adopted para 46 of AS-11 and capitalised exchange gain/loss. Whereas in Ind AS the Company has adopted Ind AS cost for all its Fixed Assets, hence exchange gain/loss is recognised in opening reserve and changes thereafter are recognised in statement of Profit and loss or other comprehensive income, as the case may be. (g) Under Ind AS the Company has recognised income on preference shares and Interest free loans given to subsidiaries. (h) The deferred tax adjustments include the impact of transition adjustments together with Ind AS mandate of using balance sheet approach against Profit and loss approach in the previous GAAP. On the date of transition, deferred tax impact on transition provision has been accounted in the Reserves, and consequential impact in the statement of Profit and loss for the subsequent periods.

(i) Under previous GAAP, loan processing fees/transaction cost were expensed when incurred, whereas under Ind AS, it is considered for calculating effective interest rate and the impact for the periods subsequent to the date of transition is accounted in the statement of Profit and loss.

(j) Defined benefit plans - Under Ind AS, actuarial gains or losses arising on defined benefit plans are recognised in other comprehensive income, whereas under previous GAAP same was being charged to the statement of Profit and loss.

48. The Company is engaged in the business of providing infrastructural facilities as per Section 186 (ii) read with Schedule VI of the Act. Accordingly, disclosure under Section 186 of the Act, is not applicable to the Company.

49. Significant Events after the Reporting Period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

50. Approval of Financial Statements

The financial statements were approved for issue by the Board of Directors on 19th May, 2017.

   

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