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You can view the entire text of Notes to accounts of the company for the latest year

BSE: 532868ISIN: INE271C01023INDUSTRY: Construction & Contracting

BSE   ` 210.10   Open: 209.00   Today's Range 207.00
211.70
+3.25 (+ 1.55 %) Prev Close: 206.85 52 Week Range 158.40
273.95
Year End :2017-03 

1. NATURE OF PRINCIPAL ACTIVITIES

DLF Limited (‘the Company’) is engaged primarily in the business of colonisation and real estate development. The operations of the Company span all aspects of real estate development, from the identification and acquisition of land, to planning, execution, construction and marketing of projects. The Company is also engaged in the business of leasing, maintenance services and recreational activities which are related to the overall development of real estate business. The Company is domiciled in India and its registered office is situated at Shopping Mall, 3rd Floor, Arjun Marg, Phase I, DLF City, Gurugram - 122 002, Haryana.

2. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IND AS

These standalone financial statements (‘financial statements’) of the Company have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs (‘MCA’) under Section 133 of the Companies Act, 2013 (‘the Act’) read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the periods presented.

These financial statements for the year ended 31 March 2017 are the first financial statements which the Company has prepared in accordance with Ind AS. For all periods up to and including the year ended 31 March 2016, the Company had prepared its financial statements in accordance with accounting standards notified under Section 133 of the Act, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP), which have been adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS. For the purpose of comparatives, financial statements for the year ended 31 March 2016 and opening balance sheet as at 1 April 2015 are also prepared as per Ind AS.

The financial statements for the year ended 31 March 2017 were authorized and approved for issue by the Board of Directors on 26 May 2017.

3. BASIS OF PREPARATION

The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial assets and financial liabilities and share based payments which are measured at fair values as explained in relevant accounting policies.

4. RECENT ACCOUNTING PRONOUNCEMENT

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 flow’ and Ind AS 102, ‘Share-based payment.’ The amendments are applicable to the Company from 1 April 2017.

Amendment to Ind AS 1

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 the financial statements. Amendment to Ind AS 102

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification 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 modified 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 modification. Further, the amendment requires the award that includes 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 is evaluating the requirements of the amendment and its impact on the financial statements.

The changes in the carrying value of investment properties for the year ended 31 March 2017 are as follows:

(i) Contractual obligations

Refer note 53(II) for disclosure of contractual commitments for the acquisition of investment properties.

(ii) Capitalised borrowing cost

The borrowing costs capitalised during the year ended 31 March 2017 was Rs.521.54 lakhs (31 March 2016: Rs.9,958.75 lakhs and 1 April 2015: Rs.12,830.07 lakhs).

(iii) Amount recognized in statement of profit and loss for investment properties

(iv) Leasing arrangements

Certain investment properties are leased to tenants under long-term operating leases with rentals payable monthly. Refer note 51 for details on future minimum lease rentals.

(v) Fair value

Fair value hierarchy and valuation technique

The fair value of investment property has been determined by external, independent property valuers, having appropriate recognized professional qualification and recent experience in the location and category of the property being valued. The Company obtains independent valuations for its investment properties annually and fair value measurement has been categorised as Level 3. Fair values for some of the properties are arrived using average of fair values calculated basis discounted cash flow and sales comparable method. Further, for other properties the Company has used rent capitalisation and comparable market rate approach to arrive at fair value. In addition to this, the Company (“Developer’’) has a land parcels which is notified Special Economic Zone (“SEZ”) and classified under investment property. The Developer has partially developed the SEZ under the co-development agreement between the Company and DLF Assets Private Limited (“DAPL” or “the Co-developer”), one of the subsidiary company and transferred completed bare shell buildings to DAPL. Remaining portion of such land is under development. As per the co-developer agreement, the land underneath the buildings has been given on long-term lease to DAPL. The management has assessed that the value of such SEZ land classified under investment property, based on the prevailing circle rates, is higher than the book value. However, given the above arrangement and restriction on sale of land in a SEZ as prescribed under SEZ Rules 2006, the management considered carrying value aggregating Rs.13,214.25 lakhs (31 March 2016: Rs.13,214.25 lakhs and 1 April 2015: Rs.13,214.25 lakhs) to be a reasonable estimate of its fair value.

Disclosure on Specified Bank Notes (SBNs)

During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March 2017 on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:

The Company does not maintain details of denomination of currency received and paid in its books of account. The above disclosure has been compiled on the basis of total cash collected and paid as per the books of account and denomination wise details of cash deposited in the bank, available from pay-in slips and other information maintained by the Company.

* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.

^ Inclusive of the imprest lying with employees.

Note:

(i) Rs.6,448.30 lakhs (31 March 2016: Rs.6,682.83 lakhs and 1 April 2015: Rs.27.94 lakhs) represents restricted deposits, as these are pledged in lieu of the ongoing legal cases against the Company.

(ii) The bank balances include the margin money amounting to Rs.1,476.32 lakhs (31 March 2016: Rs.1,378.77 lakhs and 1 April 2015: Rs.2,650.00 lakhs) against the bank borrowings.

a) Rights/preferences/restrictions attached to equity shares

“The Company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

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, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

During the year ended 31 March 2017, no dividend has been recognized as distributions to equity shareholders (31 March 2016: final dividend Rs.2 per share and interim dividend Rs.2 per share).”

b) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the date 31 March 2017

i) Shares bought back during the financial year 2012-13 to 2016-17

Nil (during FY 2011-12 to 2015-16: Nil ) equity shares of Rs.2 each bought back pursuant to Section 68, 69 and 80 of the Act.

ii) Shares issued under Employees Stock Option Plan (ESOP) during the financial year 2012-13 to 2016-17

The Company has issued total 4,598,954 equity shares of Rs.2 each (during FY 2011-12 to 2015-16: 5,125,871 equity shares) during the period of five years immediately preceding 31 March 2017 on exercise of options granted under the Employee Stock Option Plan (ESOP).

c) Shares reserved for issue under options

For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company, refer note 52.

Nature and purpose of reserves Capital reserve

Capital reserve was created under the previous GAAP out of the profit earned from a specific transaction of capital nature. Capital reserve is not available for the distribution to the shareholders.

Capital redemption reserve

The same has been created in accordance with provision of the Act for the buy back of equity shares from the market.

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve will be utilised in accordance with provisions of the Act. General reserve

The Company is required to create a general reserve out of the profits when the Company declares dividend to shareholders.

Share options outstanding account

The reserve is used to recognize the grant date fair value of the options issued to employees under Company’s Employee Stock Option Plan. Forfeiture of shares

This reserve was created on forfeiture of shares by the Company. The reserve is not available for the distribution to the shareholders. Debenture redemption reserve

The Company is required to create a debenture redemption reserve out of the profits which are available for redemption of debentures.

5.1. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as at 31 March 2017: Listed, Secured, Redeemable, Non-Convertible Debentures of Rs.50,000,000 each referred above to the extent of:

(i) Rs.24,607.56 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.

(ii) Rs.9,377.63 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.

(iii) Rs.24,725.07 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.

(iv) Rs.9,414.29 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.

(v) Rs.24,841.30 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.

(vi) Rs.9,450.52 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.

(vii) Rs.6,237.14 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and date of final redemption is 30 April 2018.

From banks: Secured foreign currency borrowings:

(a) Facility of Rs.157,556.02 lakhs, balance amount is repayable in 14 quarterly installments starting from April 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.

(ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

From banks: Secured INR borrowings:

(a) Facility of Rs.8,616.44 lakhs, balance amount is repayable in 6 quarterly installments starting from June 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.5,953.94 lakhs, balance amount is repayable in 2 half yearly installments starting from September 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.

(c) Facility of Rs.9,675.01 lakhs, balance amount is repayable in 8 quarterly installments starting from June 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.

(d) Facility of Rs.8,179.56 lakhs, balance amount is repayable in 14 monthly installments starting from April 2018.

(e) Facility of Rs.6,355.14 lakhs, balance amount is repayable in 18 monthly installments starting from April 2018.

The aforesaid loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram and Chennai, owned by the subsidiary and group companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary companies.

(f) Facility of Rs.4,529.90 lakhs, balance amount is repayable in 84 monthly installments starting from April 2018.

(g) Facility of Rs.22,581.00 lakhs, balance amount is repayable in 84 monthly installments starting from April 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.

(h) Facility of Rs.43,241.84 lakhs, balance amount is repayable in 31 monthly installments starting from April 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.

(iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

From others:

Secured INR borrowings:

(a) Facility of Rs.2,500.00 lakhs, balance amount is repayable in 6 quarterly installments starting from June 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.16,981.48 lakhs, balance amount is repayable in 6 quarterly installments starting from May 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(c) Facility of Rs.12,475.45 lakhs, balance amount is repayable in 5 monthly installments starting from April 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by company/subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.

(d) Facility of Rs.10,875.43 lakhs, balance amount is repayable in 61 monthly installments starting from April 2018.

(e) Facility of Rs.11,515.16 lakhs, balance amount is repayable in 61 monthly installments starting from April 2018.

(f) Facility of Rs.12,794.62 lakhs, balance amount is repayable in 61 monthly installments starting from April 2018.

The aforesaid term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.

(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary company.

(iv) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable property.

(g) Facility of Rs.17,163.29 lakhs, balance amount is repayable in 18 monthly installments starting from May 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.

(ii) Charge on receivables of the aforesaid immovable property owned by the Company.

(h) Facility of Rs.7,411.61 lakhs, balance amount is repayable in 18 monthly installments starting from May 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company/ subsidiary company.

(ii) Charge on receivables of the aforesaid immovable property owned by the Company/ subsidiary company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(i) Facility of Rs.8,902.89 lakhs, balance amount is repayable in 31 monthly installments starting from April 2018. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.

(iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

5.2. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as at 31 March 2016: Listed, Secured, Redeemable, Non-Convertible Debentures of Rs.50,000,000 each referred above to the extent of:

(i) Rs.24,491.00 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.

(ii) Rs.9,341.31 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2020.

(iii) Rs.9,377.94 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.

(iv) Rs.24,608.51 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 9 August 2019.

(v) Rs.12,317.68 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and repayment in 2 equal annual installments starting from 30 April 2017 and date of final redemption is 30 April 2018.

(vi) Rs.9,414.19 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.

(vii) Rs.24,724.74 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 10 August 2018.

(viii) Rs.8,953.03 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2017.

(ix) Rs.24,840.99 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.25% and date of final redemption is 11 August 2017.

From banks:

Secured foreign currency borrowings:

(a) Facility of Rs.177,169.93 lakhs, balance amount is repayable in 18 quarterly installments starting from April 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by subsidiary company.

(ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

From banks:

Secured INR borrowings:

(a) Facility of Rs.14,233.62 lakhs, balance amount is repayable in 10 quarterly installments starting from June 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.11,846.53 lakhs, balance amount is repayable in 4 half yearly installments starting from June 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.

(c) Facility of Rs.14,317.76 lakhs, balance amount is repayable in 12 quarterly installments starting from June 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.

(d) Facility of Rs.2,658.10 lakhs, balance amount is repayable in 2 equal quarterly installments starting from May 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(e) Facility of Rs.328.40 lakhs, balance amount is repayable in the last monthly installment due on April 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(f) Facility of Rs.4,052.96 lakhs, balance amount is repayable in 48 equal monthly installments starting from April 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(g) Facility of Rs.19,964.68 lakhs, balance amount is repayable in 32 monthly installments starting from April 2017.

(h) Facility of Rs.8,454.36 lakhs, balance amount is repayable in 25 monthly installments starting from April 2017.

The aforesaid loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram and Chennai, owned by the subsidiary and group companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary companies.

(i) Facility of Rs.4,515.84 lakhs, balance amount is repayable in 96 monthly installments starting from April 2017.

(j) Facility of Rs.23,915.00 lakhs, balance amount is repayable in 97 monthly installments starting from April 2017.

The loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.

(k) Facility of Rs.63,524.86 lakhs, balance amount is repayable in 43 monthly installments starting from April 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Kolkata, Lucknow, Mullanpur and New Delhi, owned by the Company/ subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.

(iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

From others: Secured INR borrowings:

(a) Facility of Rs.4,166.67 lakhs, balance amount is repayable in 10 quarterly installments starting from June 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.1,500.00 lakhs, balance amount is repayable in 2 equal quarterly installments starting from May 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(c) Facility of Rs.20,956.59 lakhs, balance amount is repayable in 10 quarterly installments starting from May 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(d) Facility of Rs.2,283.43 lakhs, balance amount is repayable in 2 equal monthly installments starting from April 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by a subsidiary company.

(e) Facility of Rs.42,325.06 lakhs, balance amount is repayable in 17 monthly installments starting from April 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.

(f) Facility of Rs.16,177.66 lakhs, balance amount is repayable in 73 monthly installments starting from April 2017.

(g) Facility of Rs.6,912.64 lakhs, balance amount is repayable in 78 monthly installments starting from April 2017.

(h) Facility of Rs.4,693.33 lakhs, balance amount is repayable in 80 monthly installments starting from April 2017.

(i) Facility of Rs.3,829.42 lakhs, balance amount is repayable in 80 monthly installments starting from April 2017.

(j) Facility of Rs.2,503.11 lakhs, balance amount is repayable in 80 monthly installments starting from April 2017.

(k) Facility of Rs.2,378.54 lakhs, balance amount is repayable in 78 monthly installments starting from April 2017.

(l) Facility of Rs.909.96 lakhs, balance amount is repayable in 78 monthly installments starting from April 2017.

(m) Facility of Rs.5,432.65 lakhs, balance amount is repayable in 81 monthly installments starting from April 2017.

The aforesaid term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary companies.

(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.

(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.

(iv) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

(n) Facility of Rs.5,645.98 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.

(o) Facility of Rs.5,978.10 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.

(p) Facility of Rs.6,642.33 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.

(q) Facility of Rs.8,302.66 lakhs, balance amount is repayable in 72 monthly installments starting from April 2017.

The aforesaid term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.

(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary company.

(iv) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable property.

(r) Facility of Rs.3,816.53 lakhs, balance amount is repayable in 5 monthly installments starting from April 2017. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company.

(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.

5.3. Repayment terms and security disclosure for the outstanding long-term borrowings (excluding current maturities) as on 1 April 2015:

Listed, Secured, Redeemable, Non-Convertible Debentures of Rs.50,000,000 each referred above to the extent of:

(i) Rs.18,241.61 lakhs are secured by way of pari-passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and repayment in 3 equal annual installments starting from 30 April 2016 and date of final redemption is 30 April 2018.

From banks: Secured foreign currency borrowings:

(a) Facility of Rs.173,492.57 lakhs, balance amount is repayable in 22 quarterly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by subsidiary company.

(ii) Pledge over the shareholding of subsidiary company owning the aforesaid immovable property.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

From banks: Secured INR borrowings:

(a) Facility of Rs.16,545.71 lakhs, balance amount is repayable in 12 quarterly installments starting from December 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.17,677.78 lakhs, balance amount is repayable in 6 half yearly installments starting from September 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Kolkata, owned by the Company.

(c) Facility of Rs.18,802.22 lakhs, balance amount is repayable in 16 quarterly installments starting from June 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.

(d) Facility of Rs.7,921.42 lakhs, balance amount is repayable in 6 equal quarterly installments starting from May 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(e) Facility of Rs.22,775.43 lakhs, balance amount is repayable in 72 equated monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.

(iii) Exclusive charge on immovable property situated at Gurugram, owned by the subsidiary company.

(iv) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(f) Facility of Rs.4,329.20 lakhs, balance amount is repayable in 13 equal monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(g) Facility of Rs.5,046.84 lakhs, balance amount is repayable in 60 equal monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by the Company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(h) Facility of Rs.9,722.22 lakhs, balance amount is repayable in 14 equal monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(i) Facility of Rs.1,250.00 lakhs, balance amount is repayable in 3 equal monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the subsidiary company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(j) Facility of Rs.23,434.00 lakhs, balance amount is repayable in 12 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.

(k) Facility of Rs.24,946.37 lakhs, balance amount is repayable in 21 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidiary company.

(l) Facility of Rs.44,704.54 lakhs, balance amount is repayable in 33 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(m) Facility of Rs.22,526.50 lakhs, balance amount is repayable in 102 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary companies.

(ii) Negative lien on immovable property situated at Gurugram, owned by subsidiary company.

(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.

(iv) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

(n) Facility of Rs.28,681.91 lakhs, balance amount is repayable in 108 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at New Delhi, owned by the Company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company.

From others:

Secured INR borrowings:

(a) Facility of Rs.5,000.00 lakhs, balance amount is repayable in 12 quarterly installments starting from December 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.14,740.26 lakhs, balance amount is repayable in 3 equal annual installments starting from August 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.

(c) Facility of Rs.4,500.00 lakhs, balance amount is repayable in 6 equal quarterly installments starting from May 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(d) Facility of Rs.24,926.47 lakhs, balance amount is repayable in 14 quarterly installments starting from May 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(e) Facility of Rs.16,016.82 lakhs, balance amount is repayable in 14 equal monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by a subsidiary company.

(f) Facility of Rs.30,347.89 lakhs, balance amount is repayable in 64 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.

(g) Facility of Rs.51,563.42 lakhs, balance amount is repayable in 21 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidiary company.

(h) Facility of Rs.72,016.76 lakhs, balance amount is repayable in 29 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.

(i) Facility of Rs.32,724.54 lakhs, balance amount is repayable in 33 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, Hyderabad and Chennai, owned by the Company/ subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurugram, owned by the Company.

(j) Facility of Rs.16,844.71 lakhs, balance amount is repayable in 85 monthly installments starting from April 2016.

(k) Facility of Rs.7,594.67 lakhs, balance amount is repayable in 96 monthly installments starting from April 2016.

(l) Facility of Rs.4,973.72 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.

(m) Facility of Rs.4,103.66 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.

(n) Facility of Rs.2,613.22 lakhs, balance amount is repayable in 96 monthly installments starting from April 2016.

(o) Facility of Rs.2,652.65 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.

(p) Facility of Rs.971.11 lakhs, balance amount is repayable in 92 monthly installments starting from April 2016.

(q) Facility of Rs.5,983.24 lakhs, balance amount is repayable in 99 monthly installments starting from April 2016.

The aforesaid term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/subsidiary companies.

(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.

(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.

(iv) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

(r) Facility of Rs.12,955.57 lakhs, balance amount is repayable in 17 monthly installments starting from April 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company.

(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.

(s) Facility of Rs.5,221.39 lakhs, balance amount is repayable in 12 monthly installments starting from April, 2016. The loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.

Rate of interest:

The Company’s total borrowings from banks and others have an effective weighted-average contractual rate of 9.74% per annum calculated using the interest rate effective as on 31 March 2017 (31 March 2016: 10.55% and 31 March 2015: 11.48%).

6.1. Security disclosure for the outstanding short-term borrowings as at 31 March 2017:

Overdraft facility from Banks:

(a) Facility of Rs.30,421.19 lakhs

The aforesaid overdraft facilities are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.4,979.49 lakhs

The aforesaid overdraft facility is secured by way of:

(i) Equitable mortgage of property situated at New Delhi, owned by the Company.

Short-term loans from Banks:

(a) Facility of Rs.57,000.00 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of properties situated at Gurugram, owned by subsidary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of ‘16,000.00 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidary company.

(iii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable property.

(c) Facility of Rs.35,000.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of properties situated at Gurugram, owned by the Company and subsidiary companies.

(ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.

(d) Facility of Rs.7,500.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company.

(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.

(e) Facility of Rs.19,700.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidary company.

(iii) Corporate guarantee provided by the Copmany/ subsidiary company owning the aforesaid immovable property.

(f) Facility of Rs.27,174.69 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.

Short-term loans from others:

(a) Facility of Rs.100,000.00 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidary company.

6.2. Security disclosure for the outstanding short-term borrowings as at 31 March 2016:

Overdraft facility from Banks:

(a) Facility of Rs.32,503.28 lakhs

The aforesaid overdraft facilities are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.4,728.79 lakhs

The aforesaid overdraft facility is secured by way of:

(i) Equitable mortgage of properties situated at Goa and Gurugram, owned by subsidiary companies

(ii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

(c) Facility of Rs.4,988.31 lakhs

The aforesaid overdraft facility is secured by way of:

(i) Equitable mortgage of property situated at New Delhi, owned by the Company.

Short-term loans from Banks:

(a) Facility of Rs.60,800.00 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of properties situated at Gurugram, owned by subsidary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.18,172.06 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidary company.

(iii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable property.

(c) Facility of Rs.35,000.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of properties situated at Gurugram, owned by the Company and subsidiary companies.

(ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.

(d) Facility of Rs.7,500.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company.

(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.

(e) Facility of Rs.19,700.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidary company.

(iii) Corporate guarantee provided by the Copmany/ subsidiary company owning the aforesaid immovable property.

(f) Facility of Rs.16,985.06 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.

6.3. Security disclosure for the outstanding short-term borrowings as at 1 April 2015:

Overdraft facility from Banks:

(a) Facility of Rs.29,079.33 lakhs

The aforesaid overdraft facilities are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.1.82 lakhs

The aforesaid overdraft facility is secured by way of:

(i) Equitable mortgage of properties situated at Goa and Gurugram, owned by subsidiary companies.

(ii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.

(c) Facility of Rs.4,998.01 lakhs

The aforesaid overdraft facility is secured by way of:

(i) Equitable mortgage of property situated at New Delhi, owned by the Company.

Short-term loans from Banks:

(a) Facility of Rs.67,800.00 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of properties situated at Gurugram, owned by subsidary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs.28,107.94 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by the Company/subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/subsidary companies.

(iii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.

(c) Facility of Rs.35,000.00 lakhs

The aforesaid short-term loans are secured by way of:

(i) Equitable mortgage of properties situated at Gurugram, owned by the Company and subsidiary companies.

(ii) Corporate guarantee provided by the subsidiary companies owning the aforesaid immovable properties.

(d) Facility of Rs.7,500.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at Gurugram, owned by the Company.

(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.

(e) Facility of Rs.19,700.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company/subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidary company.

(iii) Corporate guarantee provided by the Company/subsidiary company owning the aforesaid immovable property.

(f) Facility of Rs.40,000.00 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable properties situated at Gurugram, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidary company.

(g) Facility of Rs.14,777.56 lakhs

The aforesaid short-term loan is secured by way of:

(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.

i) Fair values hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: unobservable inputs for the asset or liability.

ii) Financial assets measured at fair value - recurring fair value measurements

(iii) Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments include:

(a) the use of net asset value for mutual funds on the basis of the statement received from investee party.

(b) the use of adjusted net asset value method for certain equity investment and discounted cash flow method (income approach) for remaining equity instruments.

(c) For hedge related effectiveness review and related valuation, details are presented in note 43.

(iv) The Company has used interest rate and USD/INR swap rate as inputs to arrive at fair value of derivative assets.

(v) The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements. See (iii) above for the valuation techniques adopted.

* The non-convertible redeemable debentures issued by the Company are listed on stock exchange and there is no comparable instrument having the similar terms and conditions with related security being pledged and hence the carrying value of the debentures represents the best estimate of fair value.

i) Financial instruments by category

For amortised cost instruments, carrying value represents the best estimate of fair value.

* Investment in equity shares of subsidiaries, associate and joint venture are measured as per Ind AS 27, “Separate financial statements”.

** These financial assets are mandatorily measured at fair value.

# These financial assets represents investment in equity instruments designated as such upon initial recognition.

ii) Risk Management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

A) Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost includes loans to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

a) Credit risk management

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk

B: Moderate credit risk

C: High credit risk

* Life time expected credit loss is provided for trade receivables.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

b) Credit risk exposure

Provision for expected credit losses

The Company provides for expected credit loss based on 12 months and lifetime expected credit loss basis for following financial assets:

Expected credit loss for trade receivables under simplified approach Real estate business

The Company’s trade receivables does not have any expected credit loss as registry of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made no write-offs of trade receivables and no recoveries from receivables previously written off.

Rental business

In respect of trade receivables, the Company considers provision for lifetime expected credit loss. Given the nature of business operations, the Company’s trade receivables has low credit risk as the Company holds security deposits equivalents ranging from three to six months rentals. Further historical trends indicate any shortfall between such deposits held by the Company and amounts due from customers have been negligible.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

C) Market Risk

a) Foreign currency risk

The Company has International transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from recognized assets and liabilities denominated in a currency that is not the Company’s functional currency.

b) Interest rate risk

i) Liabilities

The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Interest rate risk exposure

The Company’s variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing:

ii) Assets

The company’s fixed deposits, interest bearing security deposits and loans are carried at fixed rate. Therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

c) Price risk

The Company’s exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk arising from investments in mutual funds, the Company diversifies its portfolio of assets.

- Safeguard their ability to continue as a going concern, and

- Maintain an optimal capital structure to reduce the cost of capital.

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

A. Risk management strategy

The Company uses swaps contracts to hedge its risks associated with fluctuations in foreign currency. The risk being hedged is the risk of potential loss due to fluctuation in foreign currency rates. The use of swap contracts is covered by the Company’s overall strategy. The Company does not use swaps for speculative purposes. As per the strategy of the Company, foreign currency loans are covered by hedge, considering the risks associated with the hedging of such loans. The Company has designated the hedge as hedge of spot and accordingly, the Company has applied accounting for forward element of forward contracts under Ind AS 109 wherein the changes in fair value derivative is recognized in other comprehensive income and are accumulated in ‘Cash Flow Hedge Reserve’. Subsequently, the forward element of the derivative is amortised over the tenure of the foreign currency borrowing.

Hedge ratio is the relationship between the quantity of the hedging instrument and the quantity of the hedged item. In the case, total principal payments under the transaction is hedged under the swap contracts with the equivalent amount and at the same dates. Hence the entity hedge 100% of its exposure on the transaction and is considered highly effective.

7. The profit/loss from sale of land/developed plots/constructed properties in DLF City, Gurugram (Complex) is accounted as per revenue recognition policy stated in note 5(h) - “Significant Accounting Policies”. The Complex comprise of lands owned by the Company and also those under agreements to purchase entered into with subsidiary/land owning companies. In terms of such agreements, the Company purchases plotted area from the land owning companies at the average cost of land to the Company and/or the land owning companies. The average estimated internal development costs and external development charges, in respect of the plots sold have been written off in terms of revenue accounting policy stated in note 5(h) - “Significant Accounting Policies”. Final adjustment, if any, is made on completion of the applicable scheme/project.

8. The Company has entered into business development agreements with DLF Commercial Projects Corporation and Rational Builders and Developers (partnership firms). As per these agreements, the Company has acquired sole irrevocable development rights in identified land which are acquired/or in the final stages of being acquired by these partnership firms.

In terms of accounting policy stated in Note 5(g) the amount paid to these partnership firms pursuant to the above agreements for acquiring development rights, are classified under inventory as development rights.

Provident fund

The provident fund set-up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfalls, if any. In this regard, actuarial valuation as on 31 March 2017 was carried out to find out value of projected benefit obligation arising due to interest rate guarantee by the Company towards provident fund. In terms of said valuation the Company has no liability towards interest rate guarantee as on 31 March 2017, 31 March 2016 and 1 April 2015.

Contribution made by the Company to the provident fund trust set-up by the Company during the year is Rs.258.80 lakhs (31 March 2016: Rs.232.76 lakhs, 1 April 2015: Rs.264.94 lakhs).

The leave obligations cover the Company’s liability for sick and earned leaves. The amount of provision of Rs.287.13 lakhs (31 March 2016: Rs.251.15 lakhs, 1 April 2015: Rs.293.98 lakhs) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non-current. The weighted-average duration of the defined benefit obligation is 12.36 years (31 March 2016: 11.88 years, 1 April 2015: 12.30 years).

As the Company does not have any plan assets, the movement of present value of defined benefit obligation and fair value of plan assets has not been presented.

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience.

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The weighted-average duration of the defined benefit obligation is 12.45 years (31 March 2016: 11.88 years, 1 April 2015: 12.30 years).

As the Company does not have any plan assets, the movement of present value of defined benefit obligation and fair value of plan assets has not been presented.

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience.

* During the year, one of the subsidiary namely, DLF Home Developers Limited (“DHDL”) has sold (i) 19,428,879 equity shares and 3,400,000 preference shares of DLF Southern Homes Private Limited for Rs.54,300.00 lakhs and (ii) 13,768 equity shares of DLF Homes Rajapura Private limited (Rajapura) for Rs.10,394.00 lakhs. Besides this, DHDL has opted buy back of 4,283 equity shares of Rajapura for Rs.3,233.00 lakhs. Accordingly, DHDL ceased to hold any stake now in these two companies.

** During the year, one of the subsidiary namely, DLF Home Developers Limited (“DHDL”) has purchased 33,345 equity shares of DLF Southern Towns Private Limited for Rs.48,000.00 lakhs and 30,571 equity shares of DLF Garden City Indore Private Limited for Rs.17,000.00 lakhs, consequently the said companies have become wholly-owned subsidiaries of DHDL w.e.f. 21 March 2017.

*** The Company has received final order of amalgamation of said entities with DLF Real Estate Builders Limited (“DREB”) with the appointed date of 1 April 2016. Registrar of Companies, NCT of Delhi & Haryana has approved the forms filed on 27 April 2017 for making the Scheme of amalgamation of these 6 transferor companies with DREB effective with the appointed date of 1 April 2016. Accordingly, the transactions with the said entities during the year ended 31 March 2017 and balance outstanding thereto on that date have been disclosed as transactions with and balances outstanding to as the case may be, DREB during the year ended as of 31 March 2017.

**** During the year ended 31 March 2017, the Orders of the Hon’ble High Court of Punjab & Haryana at Chandigarh and Hon’ble High Court of Delhi at New Delhi, by virtue of Scheme of arrangement, the said entities and the demerged Real Estate Undertaking of DLF Universal Limited merged with DLF Home Developers Limited (“DHDL”) w.e.f. 25 November 2016. Accordingly, the transactions with the said entities during the year ended 31 March 2017 and balance outstanding thereto on that date have been disclosed as transactions with and balances outstanding to as the case may be, DHDL during the year ended as of 31 March 2017.

***** DLF Universal Limited (‘Investor’) [demerged Real Estate Undertaking of DLF Universal Limited, now merged with DLF Home Developers Limited, one of the wholly-owned subsidiary company of the Group] was holding Compulsorily Convertible Preference Shares (‘CCPS’) in Arizona Global services Private Limited (‘Arizona’), being potential equity shares which was not considered for control evaluation and hence, Arizona was accounted as third party investments in the previous GAAP. These CCPS in Arizona are open for conversion as at the transition date of the option of the Investor. If these CCPS are converted (also considering the other terms and conditions of the arrangement) between said parties, it will assure significant influence over Arizona by the Group. Hence, Arizona is classified as an associate.

# Pursuant to the Order of the Hon’ble High Court of Delhi at New Delhi, by virtue of Scheme of arrangement, the said entities have been merged with DLF Home Developers Limited w.e.f. 19 November 2015. Accordingly, the transactions with the said entities during the year ended 31 March 2016 and balance outstanding thereto on that date have been disclosed as transactions with and balances outstanding to as the case may be, DLF Home Developers Limited during the year ended as of 31 March 2016.

## During the year, the name of these companies have been stuck off/ dissolved from the register of Registrar of Companies.

### The Hon’ble High Court of Delhi at New Delhi vide its order approved the arrangement as embodied in the Scheme of Amalgamation of the said companies with DLF Hotel Holdings Limited, a wholly-owned subsidiary company and same has been filed with the Registrar of Companies on 8 June 2016. On complying with the requisite formalities, the scheme became effective from 1 April 2014 (“appointed date”). Accordingly, all the assets, rights, powers, liabilities and duties of the transferor companies vested in the transferee company as a going concern from the appointed date and the transferor companies without any further act were dissolved without winding-up.

a) Subsidiaries/Joint ventures/Associates

Details are presented in Note 48.

b) Key management personnel, their relatives and Other enterprises under the control of the key management personnel and their relatives:

i) Key management personnel and their relatives:

During the year ended 31 March 2007, the Company had announced an Employee Stock Option Scheme (the “Scheme”) for all eligible employees of the Company, its subsidiaries, joint ventures and associates. Under the Scheme, 17,000,000 equity shares have been earmarked to be granted and the same will vest as follows:

Pursuant to the above Scheme, the employee will have the option to exercise the right within three years from the date of vesting of shares at Rs.2 per share, being its exercise price.

Options are granted under the plan for the consideration of Rs.2 per share and carry no dividend or voting rights. When exercisable, each option is convertible into one equity share. For the options which were vested before 31 March 2015, using the Ind AS transition exemption (as explained in the significant accounting policies no. 5(o)) the expense related to options is arrived at using intrinsic value of the shares on the date of grant. For options which were vested after 31 March 2015, the expense related to options is arrived at using fair value of the options on the date of grant.

Share options outstanding at the end of the year (tranche wise) have the following exercise prices:

* For tranche I and II 50% options have already been vested in the financial year ended 31 March 2010 and remaining 50% vested in financial year ended 31 March 2012. For tranche III & IV 50% options vested in the financial year ended 31 March 2011 and remaining 50% vested in financial year ended 31 March 2012. For tranche V the options vested in financial year ended 31 March 2012. For tranche VII 33.33% vested in financial year ended 31 March 2014 and 33.33% vested in the financial year ended 31 March 2015 and remaining 50% vested in financial year ended 31 March 2016. For tranche VIII 33.34% vested in current financial year. Hence, entire tranche VI and tranche VIII are disclosed above.

The Company is primarily engaged in the business of colonization and real estate development, which as per Indian Accounting Standard - 108 on ‘Operating Segments’ is considered to be the only reportable business segment. The Company is operating in India which is considered as a single geographical segment.

a) The Competition Commission of India (CCI) on a complaint filed by the Belaire/ Park Place owners Association had passed orders dated 12 August 2011 and 29 August 2011 wherein the CCI had imposed a penalty of Rs.63,000.00 lakhs on DLF Limited (“DLF” or “the Company”) or, restraining DLF from formulating and imposing allegedly unfair conditions with buyers in Gurugram and further ordered to suitably modify the alleged unfair conditions on its buyers.

The said orders of CCI were challenged by DLF on several grounds by filing appeals before the Competition Appellate Tribunal (COMPAT). The COMPAT, pending hearing and till final orders had granted stay on demand of penalty of Rs.63,000.00 lakhs imposed by CCI.

COMPAT vide its order dated 19 May 2014 accepted the arguments of DLF that since the agreements were entered into prior to coming into force of Section 4 of the Competition Act, the clauses of the agreements entered in 2006-07 could not be looked into for establishing contravention of Section 4 of the Competition Act, however COMPAT held that the Company is a dominant player in Gurugram being the relevant market and has abused its dominant position in relation to certain actions which is violative of Section 4 of the Competition Act and has accordingly upheld the penalty imposed by CCI.

COMPAT further held that CCI could not have directed modifications of the Agreement as the power to modify the agreement under Section 27 is only in relation to Section 3 and cannot be applied for any action in contravention of Section 4 of the Competition Act, 2002.

The Company has filed an Appeal in the Hon’ble Supreme Court of India against the order dated 19 May 2014 passed by the COMPAT. The Hon’ble Supreme Court of India vide order dated 27 August 2014 admitted the Appeal and directed the Company to deposit penalty of Rs.63,000.00 lakhs in the Court.

In compliance of the order, the Company has deposited Rs.63,000.00 lakhs with the Hon’ble Supreme Court of India.

The appeals have been listed for arguments before the Hon’ble Supreme Court of India.

Based on the advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the Hon’ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

b) During the year ended 31 March 2011, the Company received judgments from the Hon’ble High Court of Punjab and Haryana cancelling the sale deeds of land relating to IT SEZ Project in Gurugram. The Company filed Special Leave Petitions (SLPs) challenging the orders in the Hon’ble Supreme Court of India.

The Hon’ble Supreme Court of India has admitted the matters and stayed the operation of the impugned judgments till further orders.

Based on the advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the Hon’ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

c) (i) Securities and Exchange Board of India (SEBI) had issued a Show Cause Notice (SCN) dated 25 June 2013 under Sections 11(1), 11(4), 11A and 11B of the SEBI Act, 1992 (“the SEBI Act”) read with clause 17.1 of the SEBI (Disclosure & Investor Protection) Guidelines, 2000 (“DIP Guidelines”) and Regulation 111 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“ICDR Regulations”) and levelled certain allegations in the same.

The Company filed its reply with SEBI, placed written submissions and participated in the hearings conducted by the Hon’ble Whole Time Member, in which it replied to each allegation levelled in the said Show Cause Notice (SCN).

The Hon’ble Whole Time Member however rejected the reply filed by the Company and vide its order dated 10 October 2014 restrained the Company and six others from accessing the securities market and prohibiting them from buying, selling or otherwise dealing in securities, directly or indirectly, in any manner, whatsoever, for a period of three years.

The Company has filed an appeal against the said order before Securities Appellate Tribunal (SAT) vide majority order dated 13 March 2015 allowed all the appeals and the impugned order passed by SEBI has been quashed and set aside.

SEBI has filed a statutory appeal under Section 15Z of SEBI Act before the Hon’ble Supreme Court of India.

On 24 April 2015, the Hon’ble Supreme Court of India admitted the appeal (‘Appeal’) filed by SEBI and issued notice on interim application. No stay has been granted by Hon’ble Supreme Court of India in favour of SEBI.

SEBI had filed an application stating that proposed sale of Compulsorily Convertible Preference Shares (‘CCPS’) in DLF Cyber City Developers Limited, one of the unlisted subsidiary of the Company, by the promoters, to third party Institutional Investors should not be allowed during the pendency of the appeal and have sought stay from the Hon’ble Supreme Court of India on the proposed transactions. The Hon’ble Supreme Court of India did not pass any order and has kept the application to be heard along with the Appeal.

(ii) SEBI also issued a SCN dated 28 August 2013 under Sections 15HA and 15HB of the SEBI Act, 1992 and under Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (“Adjudication Rules”), hearing on which has been completed and the Company has filed its written synopsis/ submissions.

By way of orders dated 26 February 2015, the Adjudicating Officer of SEBI imposed penalties upon the Company, some of its Directors, officer under Section 15HA and under Section 15HB of the SEBI Act, 1992.

The Company, its Directors, officer have filed appeal before SAT impugning the order dated 26 February 2015 passed by an Adjudicating Officer of SEBI. The Appeal is listed before SAT and in its order dated 15 April 2015, SEBI has undertaken not to enforce the orders dated 26 February, 2015 during pendency of the appeal. The appeals have been listed for hearing before SAT.

The Company and its legal advisors believe that it has not acted in contravention of law either during its initial public offer or otherwise. The Company has full faith in the judicial process and is confident of vindication of its stand in the near future.

9. As already reported, in the earlier period(s), disallowance of SEZ profits u/s 80IAB of the Income-tax Act, 1961 were made by the Income Tax Authorities in the assessment of the Company raising demands amounting to Rs.1,056.00 lakhs for the assessment year 2014-15; Rs.6,834.00 lakhs for the assessment year 2013-14; Rs.7,308.99 lakhs for the assessment year 2011-12; Rs.7,284.99 lakhs for the assessment year 2010-11; Rs.35,523.71 lakhs for the assessment year 2009-10 and Rs.48,723.00 lakhs for assessment year 2008-09, respectively.

The Company had filed appeals before the appropriate appellate authorities against these demands for the said assessment years. In certain cases partial/full relief has been granted by the Appellate Authorities. The Company and Income Tax Department have further preferred appeals before the higher authorities in those cases.

Based on the advice from independent tax experts and the development on the appeals, the management is confident that additional tax so demanded will not be sustained on completion of the appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been made in these standalone financial statements.

10. The petitions were filed before the Hon’ble Punjab & Haryana High Court challenging the action of the Haryana Government to acquire the land belonging to Gram Panchayat of village Wazirabad, District Gurugram for public purpose and thereafter selling the same to the Company, seeking directions from the court for quashing of the acquisition proceedings under Sections 4 & 6 dated 8 August 2003 and 20 January 2004.

The petitioners therein also sought quashing of the award dated 19 January 2006 and the regular letter of allotment (RLA) dated 9 February 2010 issued in favour of the Company for 350.715 acres of land.

The Hon’ble Punjab & Haryana High Court, vide its final order dated 3 September 2014, while upholding the acquisition of land has however disapproved the allotment in favour of the Company. The Hon’ble High Court passed an order to keep the RLA dated 9 February, 2010 issued in favour of the Company in abeyance and further directed the Haryana State Industrial and Infrastructure Development Corporation (‘HSIIDC’) to initiate fresh allotment process for higher returns in respect of the land in question with an option to State to revive the RLA in case no better bid is quoted by the public at large.

The Company has filed a Special Leave Petition before the Hon’ble Supreme Court of India challenging the judgment dated 3 September 2014 passed by the Hon’ble Punjab & Haryana High Court. The Hon’ble Supreme Court of India issued notice to the respondents and directed status quo to be maintained by the parties.

Based on the advice of the independent legal counsels, the management believes that there is a reasonably strong likelihood of succeeding before the Hon’ble Supreme Court of India. Pending the final decisions on the above matter, no adjustment has been made in these standalone financial statements.

* During the year ended 31 March 2017, the Company has sold certain assets (having the carrying value of Rs.5,370.92 lakhs) for Rs.1,145.92 lakhs and has recognized a loss of Rs.4,225.00 lakhs. The amount has been classified under exceptional item in these standalone financial statements.

a) Gross amount required to be spent by the Company during the year is Rs.685.00 lakhs (previous year Rs.1,040.00 lakhs).

b) Amount spent during the year on:

11. All loans, guarantees and securities as disclosed in respective notes are provided for business purposes.

12. In the opinion of the Board of Directors, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known/expected liabilities have been made.

A. Explanation of transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies have been applied consistently in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and in the preparation of an opening Ind AS balance sheet at 1 April 2015 (the Company’s date of transition). An explanation of how the transition from financial statements prepared in accordance with accounting standards notified under the Section 133 of the Act, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP) to Ind AS has affected the Company’s financial position, financial performance and cash flows is set-out in the following tables and notes:

B. Ind AS optional exemptions

1. Deemed cost for property, plant and equipment, investment property and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

2. Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity instruments other than investments in subsidiaries, associates and joint ventures.

3. Service concession arrangements

When it is impracticable to apply Appendix A to Ind AS 11 retrospectively, a first-time adopter may use previous carrying amounts of financial and intangible assets, after testing for impairment, as their carrying amounts at the date of transition to Ind AS.

4. Share based payments

Ind AS 102, Share based Payments requires an entity to record the options on their fair value instead of intrinsic value. Ind AS 101 permits a first-time adopter to ignore such requirement for the options already vested before transition date that is 1 April 2015. The Company has elected to apply this exemption(s) for such vested options.

5. Investment

Ind AS 101 permits a first-time adopter to continue previous GAAP carrying value for investment in equity instrument of subsidiaries, associates and joint ventures. Accordingly, the Company has elected to apply the said exemption.

6. Business combination

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

7. Compound financial instrument

Under Ind AS 32, entities should split compound financial instruments into separate equity and liability components. Ind AS 101 provides that if the liability component is no longer outstanding at the date of transition, a first-time adopter does not have to separate it from the equity component. The Company has elected to apply this exemption.

C. Ind AS mandatory exceptions

1. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

a) Investment in equity instruments carried at FVTPL or FVOCI

b) Impairment of financial assets based on expected credit loss model.

2. Classification and measurement of financial assets and liabilities

Classification of financial asset is required to be made on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Further, if it is impracticable for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value of the financial asset or the financial liability at the date of transition to Ind AS shall be the new gross carrying amount of that financial asset or the new amortised cost of that financial liability at the date of transition to Ind AS.

3. Hedge accounting

Hedge accounting can only be applied prospectively from the transition date to transactions that satisfy the hedge accounting criteria in Ind AS 109, at that date. Hedging relationships cannot be designated retrospectively and the supporting documentation cannot be created retrospectively. As a result, only hedging relationships that satisfied the hedge accounting criteria as of 1 April 2015 are reflected as hedges under Ind AS.

-.Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for periods before reporting period. The following tables represent the reconciliations from previous GAAP to Ind AS.

1. Reconciliation of total equity as at 31 March 2016 and 1 April 2015

2. Reconciliation of total comprehensive income for the year ended 31 March 2016

3. Reconciliation of statement of cash flow for the year ended 31 March 2016

* The previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purpose of this note.

$ Under previous GAAP, prepaid expenses related to borrowings were shown as part of other current and non-current assets whereas under Ind AS, these are netted off with borrowing to account these expenses using effective interest rate method. Hence, related impact on financing and operating activities of cash flows.

Note - 1 Revenue

Under previous GAAP, revenue from real estate development was recognized in accordance with Guidance Note on Accounting for Real Estate Transactions [GN(A)23 (Revised 2012)] issued by Institute of Chartered Accountants of India (ICAI). Revenue in respect of projects commenced before that date (i.e. 2012 Guidance Note was applicable prospectively) was recognized in accordance with Guidance note on Recognition of Revenue by Real Estate Developers [GN(A)23 (Issued 2006)] issued by ICAI. The 2012 guidance note requires project revenue to be measured at “consideration received or receivable” whereas the 2006 Guidance Note only provided guidance on timing of recognition of revenue. Under Ind AS, revenue is measured at “Fair value of consideration received or receivable”, in accordance with Guidance Note on Accounting for Real Estate transactions (for entities to whom Ind AS is applicable and has retrospective implication). The new accounting policies require the management to make certain judgments and estimates based on facts and circumstances of each project along with an analysis of past information related thereto.

Note - 2 Hedge contracts

The Company has certain hedging relationships wherein principal payments under a foreign currency loan was hedged at an agreed rate under a principal only swap. Under the previous GAAP, the arrangement was effectively accounted as a liability at agreed forward rate. Under Ind AS, the Company had assessed that the hedging relationship qualifies for hedge accounting as per Ind AS 109. Accordingly, the company has applied accounting for forward element of forward contracts under Ind AS 109 wherein the changes in fair value derivative is (after the transition date) is recognized in other comprehensive income and are accumulated in ‘Cash Flow Hedge Reserve’. Subsequent to the transition date the forward element of the derivative is amortised over the tenure of the foreign currency borrowing.

Note - 3 (a) Financial liabilities at amortised cost

Under Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the statement of profit and loss over the tenure of the borrowing as part of the finance cost by applying the effective interest method. Under previous GAAP, these transaction costs were charged to statement of profit and loss on straight-line basis over the period of loan.

Under previous GAAP, financial liabilities were initially recognized at transaction price. Subsequently, any finance costs were recognized based on contractual terms. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of liability.

(b) Financial assets at amortised cost

Under previous GAAP, financial assets and security deposits paid were initially recognized at transaction price. Subsequently, any finance income were recognized based on contractual terms. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently carried at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of asset.

Note - 4 Proposed dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting.

Note - 5 (a) Financial instruments carried at fair value through profit and loss or through other comprehensive income

Under previous GAAP, investments in long-term equity instrument were carried at cost and tested for other than temporary diminution. Under Ind AS, such investments are carried at fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI) (except for investment in subsidiaries, associates and joint ventures).

(b) Employee stock options issued to employees of subsidiary companies

Under the previous GAAP, the Company had the option to measure the cost of equity-settled employee share-based plan either using the intrinsic value method or using the fair value method. Under Ind AS, the cost of equity-settled share-based plan is recognized based on the fair value of the options as at the grant date.

(c) Expected credit loss on financial assets

Under previous GAAP, provision for financial asset is recognized on specific identification method based on management assessment of recoverability of loans. Under Ind AS 109, the Company is required to apply expected credit loss model for recognizing the allowance for loans.

Note - 6 Tax impact on adjustments

Retained earnings and statement of profit and loss has been adjusted consequent to the Ind AS transition adjustments with corresponding impact to deferred tax, wherever applicable.

Note - 7 Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes re-measurements of defined benefit plans, effective portion of gain or loss on cash flow hedging instruments, fair value gain or loss on FVOCI equity instruments and their corresponding income tax effects. The concept of other comprehensive income did not exist under previous GAAP.

Note - 8 Investment property

Under the previous GAAP, investment properties were presented as part of property, plant and equipment. Under Ind AS, investment properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or profit as a result of this adjustment.