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Notes on the consolidated financial statements
for the year ended 31 March 2017
there is an indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than its
carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit
and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit.
Any impairment loss for goodwill is recognised in profit or loss. An impairment loss recognised for goodwill is not reversed
in subsequent periods.
Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the
goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the
gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed
operation and the portion of the cash-generating unit retained.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those
provisional amounts are adjusted through goodwill during the measurement period, or additional assets or liabilities are
recognised, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if
known, would have affected the amounts recognized at that date. These adjustments are called as measurement period
adjustments. The measurement period does not exceed one year from the acquisition date.
b. Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current / non-current classification.
An asset/liability is treated as current when it is:
• Expected to be realised or intended to be sold or consumed or settled in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised/settled within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after
the reporting period
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.
All other assets and liabilities are classified as non-current.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
c. Property, plant and equipment
i) Tangible assets
Under the previous GAAP (Indian GAAP), property, plant and equipment were carried in the balance sheet at cost
net of accumulated depreciation and accumulated impairment losses, if any as at 31 March 2015. The Company has
elected to regard those values of property as deemed cost at the date of the transition to Ind AS, i.e., 1 April 2015.
Property, plant and equipment are stated at cost [i.e., cost of acquisition or construction inclusive of freight, erection
and commissioning charges, non-refundable duties and taxes, expenditure during construction period, borrowing
costs (in case of a qualifying asset) upto the date of acquisition/ installation], net of accumulated depreciation and
accumulated impairment losses, if any.
When significant parts of property, plant and equipment (identified individually as component) are required to