Moneycontrol Be a Pro
Get App
SENSEX NIFTY
Moneycontrol.com India | Notes to Account > Infrastructure - General > Notes to Account from Adani Ports and Special Economic Zone - BSE: 532921, NSE: ADANIPORTS
YOU ARE HERE > MONEYCONTROL > MARKETS > INFRASTRUCTURE - GENERAL > NOTES TO ACCOUNTS - Adani Ports and Special Economic Zone

Adani Ports and Special Economic Zone

BSE: 532921|NSE: ADANIPORTS|ISIN: INE742F01042|SECTOR: Infrastructure - General
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Nov 15, 16:00
366.40
-2.3 (-0.62%)
VOLUME 50,478
LIVE
NSE
Nov 15, 15:58
366.30
-2.8 (-0.76%)
VOLUME 2,362,065
Mar 18
Notes to Accounts Year End : Mar '19

1 Corporate information

The financial statements comprise financial statements of Adani Ports and Special Economic Zone Limited (“the Company “ or “APSEZL’) for the year ended March 31, 2019. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India. The registered office of the Company is located at “Adani House”, Mithakhali Six Roads, Navrangpura, Ahmedabad-380009

The Company is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and has linked multi product Special Economic Zone (SEZ) and related infrastructure contiguous to Port at Mundra. The initial port infrastructure facilities at Mundra including expansion thereof through development of additional port terminals and south port terminal infrastructure facilities are developed pursuant to the concession agreement with Government of Gujarat (GoG) and Gujarat Maritime Board (GMB) for 30 years period effective from February 17, 2001. At Mundra, the Company has expanded port infrastructure facilities through approved supplementary concession agreement (pending to be concluded) which will be effective till the year 2040, whereby port infrastructure has been developed at Wandh at Mundra to handle coal cargo. The said agreement is in the process of getting signed with GoG and GMB although Coal terminal at Wandh is recognised as commercially operational w.e.f. February 01, 2011.

The first Container terminal facilities (CT-1) developed at Mundra, was transferred under sub-concession agreement entered into on January 7, 2003 between Mundra International Container Terminal Limited (MICTL) and the Company wherein the Company has given rights to MICTL to handle the container cargo for a period of 28 years i.e. up to February 17, 2031. The container terminal facilities developed at South Port location (CT-3) has been leased under approved sub concession agreement dated October 17, 2011 to (50:50) joint venture company, Adani International Container Terminal Private Limited (AICTPL), co-terminate with main concession agreement with GMB. During the previous year, the Company has entered into an arrangement with the Adani International Container Terminal Private Limited (AICTPL), a Joint Venture, to sub lease new terminal CT-3 Extension besides CT-3. The said terminal commenced operations w.e.f. November 01, 2017. The said sub-concession agreement is pending to be concluded with GOG and GMB. Another container terminal facilities developed at South Port location (CT-4) has been leased to (50:50) joint venture company, Adani CMA Mundra Terminal Private Limited (ACMTPL) (joint venture arrangement with CMA Terminals, France since July 30, 2014).The execution of sub-concession agreement between the Company, ACMTPL and GMB is pending as on date.

The Multi Product Special Economic Zone developed at Mundra by the Company along with port infrastructure facilities is approved by the Government of India vide their letter no. F-2/11/2003/EPZ dated April 12, 2006 and subsequently amended from time to time till date.

The Company has also set up Free Trade and Warehousing Zone at Mundra based on approval of Ministry of Commerce and Industry vide letter no.F.1/16/2011-SEZ dated January 04, 2012. The Company has also set up additional Multi Product Special Economic Zone at Mundra Taluka over an area of 1,856 hectares as per approval from Ministry of Commerce and Industry vide approval letter dated April 24, 2015. The Company has received single notification consolidating all three notified SEZ in Mundra vide letter dated March 15, 2016 of Ministry of Commerce and Industry, Department of Commerce (SEZ Section).

The financial statements were authorised for issue in accordance with a resolution of the directors on May 27, 2019.

2 Basis of Preparation

2.1 The financial statements of the Company has been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy as mentioned in note 2.2 (u) hitherto in use.

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount:

-Derivative financial instruments,

-Defined Benefit Plans - Plan Assets measured at fair value; and

-Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

In addition, the financial statements are presented in INR and all values are rounded to the nearest crore (INR 00,00,000), except when otherwise indicated.

i) Depreciation of Rs. 31.46 crore (previous year Rs. 62.91 crore) relating to the project assets has been allocated to Capitalisation / Capital Work-in-Progress.

ii) Freehold Land includes land development cost of Rs. 12.56 crore (previous year Rs. 12.56 crore).

iii) Plant and Equipment includes cost of Water Pipeline amounting to Rs. 3.37 crore (Gross) (previous year Rs. 3.37 crore), accumulated depreciation Rs. 1.59 crore (previous year Rs. 1.19 crore) which is constructed on land not owned by the Company.

iv) Buildings includes 612 residential flats (previous year 612 flats) and a hostel building valuing Rs. 130.75 crore (Gross) (previous year Rs. 130.75 crore), accumulated depreciation Rs. 10.49 crore (previous year Rs. 7.81 crore) at Samudra Township, Mundra, which are pending to be registered in Company’s name.

v) As a part of concession agreement for development of port and related infrastructure at Mundra the Company has been allotted land on lease basis by Gujarat Maritime Board (GMB). The Company has recorded rights in the GMB Land at present value of future annual lease payments in the books and classified the same as lease hold land.

vi) Land development cost on leasehold land includes costs incurred towards reclaimed land of ^ 180.18 crore (Gross) (previous year Rs. 182.96 crore), accumulated depreciation Rs. 36.83 crore (previous yearRs. 28.00 crore). The cost has been estimated by the management, being cost allocated out of the dredging activities approximate the actual cost.

vii) Reclaimed land measuring 1,093.53 hectare are pending to be registered in the name of the Company.

viii) Project Assets includes dredgers and earth moving equipments.

ix) Free Hold and Lease Hold Land includes Land given on Operating Lease Basis: Gross Block as at March 31, 2019 : Rs. 6.71 crore (previous year : Rs. 6.71 crore) Accumulated Depreciation as at March 31, 2019 : Rs. 0.24 crore (previous year; Rs. 0.18 crore) Net Block as at March 31, 2019 : Rs. 6.47 crore (previous year: Rs. 6.53 crore)

x) Refer footnote to note 14 and 17 for security / charges created on property, plant and equipment.

b) (i) Adani Vizag Coal Terminal Private Limited (“AVCTPL”) - a subsidiary of the Company is engaged in Port services under concession from one of the port trust authorities of the Government of India. The port operations were suspended temporarily due to operational bottlenecks beyond the subsidiary’s control during FY 2016-17. The Port authority issued Consultation Notice to the AVCTPL in accordance with the provisions of the Concession Agreement. During current financial year, on account of certain positive developments in operations such as permission for road movement, rake availability for cargo evacuation and entering into long term contract for cargo handling, the Consultation Notice has been withdrawn by the Port authority and AVCTPL has resumed the port operations. AVCTPL has received relaxation in the form of rationalisation on revenue share from storage income from the Port Trust in accordance with guidelines from Ministry of Shipping (MoS).This will result in improving the operating efficiency and ultimately result in generation of cash and able to meet its financial obligation. The Company has reassessed the carrying values of its loan and equity investment in AVCTPL in light of the aforesaid developments and has continued to carry these balances at values net of impairment provisions amounting to Rs.297.38 crore (Rs.228.85 crore net of tax) as recorded in the previous year.

(ii) The carrying amounts of long-term investments in equity shares of wholly owned subsidiary companies viz. Adani Kandla Bulk Terminal Private Limited (“AKBTPL”) and Adani Murmugao Port Terminal Private Limited (“AMPTPL”) aggregating to Rs.235.94 crore as at March 31, 2019 and long term loans include loans given to AKBTPL and AMPTPL aggregating to Rs.1,676.16 crore (including interest accrued Rs.117.88 crore) as at March 31, 2019. The said subsidiary companies have incurred losses in the recent years and the negative net worth of these companies is Rs.449.07 crore. The Company has been providing financial support to these entities to meet its financial obligations, if and when required. AKBTPL has received relaxation in the form of rationalisation on revenue share from storage income from the Port Trust in accordance with guidelines from MoS. AMPTPL is in the process of applying for similar rationalization as it believes that the project meets the criteria prescribed in the guidelines. This will result in improving the operating efficiency and ultimately result in generation of cash and able to meet its financial obligation. The Company has determined the recoverable amounts of its investments and loans in these subsidiaries as at March 31, 2019. The said determination requires significant estimates & judgements to be made by the management with respect to cargo traffic, port tariffs, inflation, discount rates, revenue share on income etc which are considered reasonable by the Management. On a careful evaluation of the aforesaid factors, the Company’s management has concluded that no provision for impairment in respect of such investments and loans is considered necessary at this stage.

c) During the year 2016-17, the Company had accounted for purchase of 3,12,13,000 numbers of equity shares in Adani Kandla Bulk Terminal Private Limited at consideration of Rs.31.21 crore. The equity shares have been purchased from the Adani Enterprises Limited, a group company whereby this entity has become a wholly owned subsidiary. As per the management, the transfer has been recorded based on Irrevocable Letter of Affirmation dated March 31, 2017 from the seller and acceptance by the Company although legal transfer of equity share of Adani Kandla Bulk Terminal Private Limited is still in process at year end.

f) Investment in Perpetual Non-convertible Debenture / Perpetual Debt is redeemable / payable at issuer’s option and can be deferred indefinitely.

g) During the year, pursuant to issuance of new equity shares by Adani Dhamra LPG Terminal Private Limited (“ADLTPL”) and Mundra LPG Terminal Private Limited (“MLTPL”) to Adani Trading Services LLP on a private placement basis on December 29, 2018, these companies (ADLTPL & MLTPL) have ceased to be subsidiaries of the Company. With regards to loss of control of the subsidiary subsequently, the investment has since been classified at Fair Value through OCI.

h) Aggregate amount of unquoted investments as at March 31, 2019 Rs.13,455.48 crore (previous year Rs.10,023.13 crore).

i) During the year, Company has acquired 97% stake in equity shares of Marine Infrastructure Developer Private Limited (“MIDPL”). MIDPL is in the business of development, operations and maintenance of port infrastructure (port services and related infrastructure development) and related infrastructure contiguous to port. Consequent to the said transaction, MIDPL has become a subsidiary of the Company w.e.f June 28, 2018.

j) During the year, Adani Bhavanapadu Port Private Limited and Adani Mundra Port Holding Pte Limited have been incorporated as wholly owned subsidiary of the Company as on May 21, 2018 and October 30, 2018 respectively.

a) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person; nor any trade or other receivable are due from firms or private companies in which any director is a partner, a director or a member.

b) Generally, as per credit terms trade receivable are collectable within 30-180 days although the Company provide extended credit period with interest between 8% to 15% considering business and commercial arrangements with the customers including with the related parties. Receivable of Rs.0.43 crore (previous year Rs.2.54 crore) are contractually collectable on deferred basis.

c) The Carrying amounts of the trade receivables include receivables amounting to Rs.357.75 crore (previous year Rs.713.97 crore) which are subject to a bills discounting arrangement. Under this arrangement, the Company has transferred the relevant receivables to the bank / financial institution in exchange of cash and is prevented from selling or pledging the receivables. The Cost of bill discounting is to the customer’s account as per the arrangement. However, the Company has retained late payment and credit risk. The Company therefore continues to recognise the transferred assets in their entirety in its balance sheet. The amount repayable under the bills discounting arrangement is presented as unsecured borrowing in note 17.

d) Trade receivable includes receivables arising from services provided to power companies which are passing through a difficult external environment causing certain delays in payment.

The Company has reviewed these receivables and considering the improving market conditions in the power sector, expects that the power companies will improve their operating effectiveness and recover past dues from Discoms and thereby the Company believes that the amount is good and recoverable.

Note:

Loans to others include inter-corporate deposits aggregating Rs.732.10 crore (previous year Rs.1,105.40 crore) (Including renewals on due dates) to third parties. These deposits are given at prevailing market interest rates. The inter-corporate deposits have been approved by the Finance committee of the Board of Directors and subsequently noted by the Board of Directors of the company. The Company has received undertaking from one of the promoter owned entity to unconditionally honour the dues from these parties along with interest in case these are not paid by the parties.

Notes:

a) Capital advance includes Rs.97.10 crore (previous year Rs.63.57 crore) paid to various private parties and government authorities towards purchase of land.

b) The Company has received bank guarantees of Rs.34.35 crore (previous year ‘ Nil) against capital advances.

c) Contract assets are the right to receive consideration in exchange for services transferred to the customer. Contract assets are initially recognised for revenue earned from port operation services as receipt of consideration is conditional on successful completion of services. Upon completion of services and acceptance by the customer, the amounts recognised as contract assets are reclassified to financial assets.

Terms/rights attached to equity shares

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

(ii) I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms of Non-Cumulative Redeemable Preference shares

(i) The Company has outstanding 28,11,037 0.01 % Non-Cumulative Redeemable Preference Shares (‘NCRPS’) of Rs.10 each issued at a premium of Rs.990 per share. Each holder of preference shares has a right to vote only on resolutions placed before the Company which directly affects the right attached to preference share holders. These shares are redeemable on March 28, 2024 at an aggregate premium of Rs.278.29 crore (equivalent to Rs.990.00 per share).

In the event of liquidation of the Company, the holder of NCRPS (before redemption) will have priority over equity shares in the payment of dividend and repayment of capital. The preference shares carry fixed dividend which is non-discretionary.

(ii) The Preference Shares issued by the Company are classified as Compound Financial Instrument. These preference shares are separated into liability and equity components based on the terms of the contract. Interest on liability component is recognised as interest expense using the effective interest method.

(iii) The equity component of preference shares includes the securities premium amount received on issue of preference shares and the preference share capital, redemption premium reserve being created in compliance of the Companies Act, 2013.

Note:- The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share capital and Debentures) Rules, 2014 (as amended), require the company to create DRR out of profits of the company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued.

The DRR is created over the life of debentures out of retained earnings.

Note:- Exchange differences arising on outstanding long term foreign currency monetary items applied towards long term assets (other than depreciable assets) recognised in the Indian GAAP financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period i.e. March 31, 2016 are accumulated in the “Foreign Currency Monetary Item Translation Difference Account” (FCMITDA) and amortized over the remaining life of the concerned monetary item or financial year 2019-20 whichever is earlier.

Note:- The portion of profits not distributed among the shareholders are termed as retained earnings. The Company may utilize the retained earnings for making investments for future growth and expansion plans, for the purpose of generating higher returns for the shareholders or for any other specific purpose, as approved by the Board of Directors of the Company.

Notes:

a) Debentures include Secured Non-Convertible Redeemable Debentures amounting to Rs.1,342.21 crore (previous year Rs.2,090.34 crore) which are secured by first Pari-passu charge on all the immovable and movable assets of Multi-purpose Terminal, Terminal-II and Container Terminal - II project assets.

Rs.750 crore (7,500 debentures of Rs.10,00,000/- each) were bought back on March 29, 2019 based on the resolution passed by the board at its meeting held on March 18, 2019.

b) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to Rs.39.40 crore

(previous year Rs.49.13 crore) which are secured by exclusive mortgage and charge on entire Single Point Mooring (SPM) facilities serving Indian Oil Corporation Limited - Mundra and the first charge over receivables from Indian Oil Corporation Limited.

c) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to Rs.1,251.32 crore (previous year Rs.1,750.96 crore) which are secured by first pari-passu charge on all the movable and immovable assets pertaining to coal terminal project assets at Wandh.

d) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to Rs.1,300.00 crore (previous year Rs.1,300.00 crore) which are secured by first pari-passu charge on specified assets of certain subsidiary companies’ arrangements as per Debenture Trust Deed.

e) Debentures include Secured Non-Convertible Redeemable Debentures aggregating to Rs.1,584.36 crore (previous year Rs.1,582.84 crore) are secured by first pari-passu charge on specified assets of one of the subsidiary companies’ arrangements as per Debenture Trust Deed.

f) Foreign currency loans aggregating to Rs.120.11 crore (previous year Rs.160.66 crore) carries interest @ 6 months Euribor plus 95 basis point. The above loan is repayable in 7 Semi-annual instalment of Rs.17.16 crore from the balance sheet date. The loan is secured by exclusive charge on the Dredgers procured under the facility.

g) Foreign currency loans aggregating to Rs.50.43 crore (previous year Rs.70.04 crore) carries interest @ 6 months Euribor plus 75 basis point. The loan is repayable in 6 semi annually equal instalments of approx.

Rs.8.45 crore from the balance sheet date. The loan is secured by exclusive charge on the Cranes purchased under the facility.

h) Foreign currency letters of credit aggregating to ‘ Nil (previous year Rs.570.39 crore) carried interest @ 3 to 6 months libor plus basis point in range of 21 to 46. The loan was secured against exclusive charge on assets purchased under the facility.

i) Unsecured Loan

(i) 5 years Foreign Currency Bond of USD 650 million equivalent to Rs.4,495.08 crore (previous year Rs.4,236.38 crore) carries interest @ 3.50 % p.a. with bullet repayment in the year 2020.

(ii) 5 years Foreign Currency Bond of USD 500 million equivalent to Rs.3,436.93 crore (previous year Rs.3,230.33 crore) carries interest rate at 3.95% p.a. with bullet repayment in the year 2022.

(iii) 10 years Foreign Currency Bond of USD 500 million equivalent to Rs.3,407.75 crore (previous year Rs.3,203.06 crore) carries interest rate at 4.00% p.a. with bullet repayment in the year 2027.

(iv) Foreign Currency Loan aggregating to Rs.1,098.52 crore (previous year Rs.1,039.87 crore) carries interest at 2.85% fixed for 18 months and than after 6 months Libor plus 125 basis point is repayable in the year 2021.

(v) Foreign currency letters of credit aggregating to Rs.553.61 crore (previous year Rs.23.42 crore) carries interest at 3 months Libor plus basis point in range of 50 to 65 and 3 to 12 months Euribor plus basis point in range of 65 to 75. Such letters of credit of Rs.553.61 crore are normally rollover every 6 months.

(vi) Rupee Term Loan aggregating to Rs.5.94 crore (previous year Rs.4.86 crore) carries interest ranging from 4.55 % p.a. to 7.95 % p.a. repayment beginning from May 2018 and having last repayment date on November 2021.

a) Assets taken under Finance Leases - land for purposes of developing, constructing, operating and maintaining the Mundra Port and related infrastructure for providing services to the users in accordance with the terms of the concession agreement with Gujarat Maritime Board (GMB). The lease rent is subject to revision every three years on April 1st by 20% of the previous amount. The lease rent terms are for the period of 30 years and are renewable accordingly with extention or renewal of the concession agreement. The lease agreement entered is non-cancellable till the termination or expiry of the concession agreement. There is no contingent rent, no sub-leases restrictions imposed by the lease arrangements. Expenses of Rs.0.58 crore (previous year Rs.0.59 crore) incurred under such lease have been expensed in the statement of profit and loss.

a) Suppliers bills accepted under foreign currency letters of credit aggregating to Rs. Nil (previous year Rs.1.17 crore) carried interest at 6 Months Euribor plus 28 basis point. Subservient charge on movable fixed assets and current assets of the Company, except those secured by exclusive charge in favour of other lenders.

b) Suppliers bills accepted under letters of credit aggregating to Rs.95.35 crore (previous year Rs. Nil) carries interest @ 8.22 % p.a.

c) Packing Credit foreign currency Loan aggregating to Rs.172.89 crore (previous year Rs. Nil) carries interest at 1 Months Libor plus 75 basis point is repayable in August, 2019.

d) Commercial Paper (CP) aggregating Rs.5,496.82 (previous year Rs. Nil) carried interest rate in range of 7.60 % to 8.20 % p.a. The CP had maturity period of 1 to 3 months.

e) Short term borrowing from subsidiary Rs.86.00 crore (previous year Rs. Nil) carries interest rate @ 7.50 % is repayable in October, 2019.

f) Factored receivables of Rs.357.75 crore (previous year Rs.713.97 crore) have recourse to the Company and interest liability on amount of bill discounted is borne by the customer. The maturity period of the transfer is 1 to 12 months period.

Notes:

a) Reconciliation of revenue recognised with contract price:

b) During the previous year, the Company transferred Container Terminal Infrastructure Assets to Adani CMA Mundra Terminal Private Limited (ACMTPL) and Adani International Container Terminal Private Limited (AICTPL), a (50:50) joint venture entities, w.e.f. May 15, 2017 and November 1, 2017 respectively. The income from sale / sub-lease of core port assets aggregating to Rs.2,258.85 crore are included in revenue from operations and corresponding related costs are shown under head “Operating Expenses”.

c) Lease income includes annual income of Rs.71.57 crore (previous year Rs.52.01 crore) in respect of land finance lease transaction.

d) Assets given under Finance Leases - The Company has given land on finance lease to various parties. All leases include a clause to enable upward revision of the rental charge every three to five years upto 20%. These leases have terms of between 12 and 50 years. The lease agreements entered are non-cancellable. There is no contingent rent, no sub-leases and no restrictions imposed by the lease arrangements. The company has also received one-time income of upfront premium ranging from Rs.1500 to Rs.5373 per Sq. mtr for use of common infrastructure by the parties. Such one-time income of upfront premium is non-refundable. Income of Rs.718.16 crore (previous year Rs.537.67 crore) including upfront premium of Rs.86.38 crore (previous year Rs.296.33 crore) accrued under such lease have been booked as income in the statement of profit and loss.

e) Land given under operating lease:

The Company has given certain land portions on operating lease. These lease arrangements range for a period between 5 and 60 years. Most of the leases are renewable for further period on mutually agreeable terms.

a) Assets taken under Operating Leases -

An office space and residential houses for staff accommodation are generally obtained on operating leases except that stated under note (b) below. The lease rent terms are generally for an eleven months period and are renewable by mutual agreement. There are no sub-leases and leases are cancellable in nature except that mentioned under note (b) below. There are no restrictions imposed by the lease arrangements. There is no contingent rent in the lease agreements and there is no escalation clause in the lease agreements except that mentioned under note (b) below. Expenses of Rs.4.03 crore (previous year Rs.4.21 crore) incurred under such leases have been expensed in the statement of profit and loss.

b) Assets taken under Operating Leases -

An office premises have been taken on operating leases. The lease rent terms are for the period of 15 years and are renewable by mutual consent. The Company has given deposit of Rs.100 crore as per the terms in one of the lease transaction. As per the lease agreement lease rental is escalated by 10% at every 5 years. There is no contingent rent, no sub-leases and no restrictions imposed by the lease arrangements. Expenses of Rs.0.11 crore (previous year Rs.0.05 crore) incurred under such lease have been expensed in the statement of profit and loss.

d) Details of Expenditure on Corporate Social Responsibilities

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.

A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

(i) Gross amount required to Spent during the year Rs.68.37 crore (previous year Rs.57.13 crore)

(ii) Amount spent during the year ended:

3. Income Tax

The major component of income tax expenses for the year ended March 31, 2019 and March 31, 2018 are as under

Note:

i) Liabilities for Current Tax (net) and Taxes Recoverable (net) are presented based on a year-wise tax balances, as the case may be.

ii) During the year, the Company has received the refund of income tax for AY 2017-18 amounting to Rs.22.71 crore which was adjusted by the department against demand for AY 2012-13 (Rs.3.74 crore), AY 2013-14 (Rs.4.74 crore), AY 2014-15 (Rs.8.17 crore), AY 2015-16 (Rs.6.06 crore). The same has been shown under taxes recoverable.

Note: During the year, the Company filed its return of income for the Assessment Year 2018-19. Based on the opinion obtained by the Company with regard to certain tax positions, the Company has determined it’s self-assessment tax. Consequently, the tax expense for the year ended March 31, 2019 is adjusted to the tune of Rs.304.41 crore to give effect of self-assessment tax determined by the Company vis-a-vis tax provision made by the Company for the year ended March 31, 2018.

4. Disclosures as required by Ind AS - 19 Employee Benefits

a) The company has recognised, in the Statement of Profit and Loss for the current year, an amount of Rs.8.42 crore (previous year Rs.7.65 crore) as expenses under the following defined contribution plan.

b) The Company has a defined benefit gratuity plan (funded) and is governed by the Payment of Gratuity Act, 1972. Under the Act, every employee who has completed at least five year of service is entitled to gratuity benefits on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with Life Insurance Corporation of India (LIC) in form of a qualifying insurance policy with effect from September 01, 2010 for future payment of gratuity to the employees.

Each year, the management reviews the level of funding in the gratuity fund. Such review includes the asset - liability matching strategy. The management decides its contribution based on the results of this review. The management aims to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.

The following tables summarise the component of the net benefits expense recognised in the statement of profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plan.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

(viii)Sensitivity Analysis

The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The Company expect to contribute Rs.1.23 crore to the gratuity fund in the financial year 2019-20 (previous year ‘ Nil).

(xi) Asset - Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy).The policy, thus, mitigates the liquidity risk.

However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

5. Segment Information

The Company is primarily engaged in one business segment, namely developing, operating and maintaining the Ports services, Ports related Infrastructure development activities and development of infrastructure at contiguous Special Economic Zone at Mundra, as determined by chief operating decision maker, in accordance with Ind-AS 108 ““Operating Segment”“. Considering the inter relationship of various activities of the business, the chief operating decision maker monitors the operating results of its business segment on overall basis. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.

Terms and conditions of transactions with related parties

(i) Outstanding balances of related parties at the year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. The Company has not recorded any impairment of receivables relating to amounts owed by related parties except provision made in previous year for loans given to a subsidiary of Rs.196.10 crore. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(ii) All Rupee loans are given on interest bearing within the range of 7.50% p.a. to 11.50% p.a. except loan to Dholera Infrastructure Private Limited, Dholera Port & Special Economic Zone Limited, Karnavati Aviation Private Limited, Adani Hospitals Mundra Private Limited, Mundra International Airport Private Limited, Abbot Point Operations Pty Limited, Adani International Terminals Pte Limited whereby loan transaction aggregating to Rs.191.12 crore (previous year Rs.1,774.54 crore) are interest free.

Notes:

(i) The names of the related parties and nature of the relationships where control exists are disclosed irrespective of whether or not there have been transactions between the related parties. For others, the names and the nature of relationships is disclosed only when the transactions are entered into by the Company with the related parties during the existence of the related party relationship.

(ii) Aggregate of transactions for the year ended and balances thereof with these parties have been given below.

a) The Company has allowed some of its subsidiaries, joint ventures and other group company to avail non fund based facilities out of its credit facilities. The aggregate of such transaction amounts to Rs.2,375.02 crore (previous year Rs.1,778.45 crore) is not disclosed in above schedule.

b) Pass through transactions/payable relating to railway freight, water front charges and other payable to third parties have not been considered for the purpose of related party disclosure.

Note: Group company investment amounting to Rs.13,219.44 crore (previous year Rs.9,495.19 crore) are measured at cost hense not included in above tables.

6.1 Fair Value Measurements:

a) Quantitative disclosures of fair value measurement hierarchy for financial assets and financial liabilities

The following table provides the fair value measurement hierarchy of the Company’s financial assets and liabilities:

b) Description of significant unobservable inputs to valuation:

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at March 31, 2019 and March 31, 2018 are as shown below:

c) Financial Instrument measured at Amortised Cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

6.2 Financial Risk objective and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations/projects and to provide guarantees to support its operations and its subsidiaries and joint ventures. The Company’s principal financial assets include loans, investment including mutual funds, trade and other receivables, and cash and cash equivalents which is derived from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

In the ordinary course of business, the Company is mainly exposed to risks resulting from exchange rate fluctuation (currency risk), interest rate movements (interest rate risk) collectively referred as Market Risk, Credit Risk, Liquidity Risk and other price risks such as equity price risk. The Company’s senior management oversees the management of these risks. It manages its exposure to these risks through derivative financial instruments by hedging transactions. It uses derivative instruments such as Cross Currency Swaps, Full Currency swaps, Interest rate swaps, foreign currency future options and foreign currency forward contract to manage these risks. These derivative instruments reduce the impact of both favourable and unfavourable fluctuations.

The Company’s risk management activities are subject to the management, direction and control of Central Treasury Team of the Company under the framework of Risk Management Policy for Currency and Interest rate risk as approved by the Board of Directors of the Company. The Company’s central treasury team ensures appropriate financial risk governance framework for the Company through appropriate policies & procedures and financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.

The decision of whether and when to execute derivative financial instruments along with its tenure can vary from period to period depending on market conditions and the relative costs of the instruments. The tenure is linked to the timing of the underlying exposure, with the connection between the two being regularly monitored. The Company is exposed to losses in the event of non-performance by the counterparties to the derivative contracts. All derivative contracts are executed with counterparties that, in our judgment, are creditworthy. The outstanding derivatives are reviewed periodically to ensure that there is no inappropriate concentration of outstanding to any particular counterparty.

Further, all currency and interest risk as identified above is measured on a daily basis by monitoring the mark to market (MTM) of open and hedged position. The MTM is derived basis underlying market curves on closing basis of relevant instrument quoted on Bloomberg/Reuters.

For quarter end, the MTM for each derivative instrument outstanding is obtained from respective banks. All gain / loss arising from MTM for open derivative contracts and gain / loss on settlement / cancellation / roll over of derivative contracts is recorded in statement of profit and loss.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments, short term Investments and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at March 31, 2019 and March 31, 2018.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant as at March 31, 2019 and March 31, 2018. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions.

The following assumptions have been made in calculating the sensitivity analysis:

- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2019 and March 31, 2018.

(i) Interest rate risk

The Company is exposed to changes in market interest rates due to financing, investing and cash management activities. The Company’s exposure to the risk of changes in market interest rates relates primarily to The Company’s long-term debt obligations with floating interest rates and period of borrowings. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company enters into interest rate swap contracts or interest rate future contracts to manage its exposure to changes in the underlying benchmark interest rates.

Interest rate sensitivity

The following paragraph demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

If interest rates had been 50 basis points higher / lower and all other variables were held constant, the Company’s profit for the year ended March 31, 2019 would decrease / increase by Rs.10.48 crore (previous year Rs.9.33 crore). This is mainly attributable to interest rates on variable rate of long term borrowings.

(ii) Foreign currency risk

Exchange rate movements, particularly the United States Dollar (USD) and Euro (EUR) against Indian Rupee (INR), have an impact on the Company’s operating results. The Company manages its foreign currency risk by entering into currency swap for converting INR loan into other foreign currency for taking advantage of lower cost of borrowing in stable currency environment. The Company also enters into various foreign exchange contracts to mitigate the risk arising out of foreign exchange rate movement on foreign currency borrowings or creditors. Further, to hedge foreign currency future transactions in respect of which firm commitment are made or which are highly probable forecast transactions (for instance, foreign exchange denominated income) the Company has entered into foreign currency forward contracts as per the policy of the Company.

The Company is mainly exposed to changes in USD, EURO, AUD and SGD. The below table demonstrates the sensitivity to a 1% increase or decrease in the respective foreign currency rates against INR, with all other variables held constant. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 1% represents management’s assessment of reasonably possible change in foreign exchange rate.

(iii) Equity price risk

The Company’s non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.

The Company has given corporate guarantees and pledged part of its investment in equity in order to fulfil the collateral requirements of the subsidiaries and joint ventures companies. The counterparties have an obligation to return the guarantees/ securities to the Company. There are no other significant terms and conditions associated with the use of collateral.

b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and other financial assets) and from its financing activities, including loans to others, deposits with banks, financial institutions & others, foreign exchange transactions and other financial assets.

Customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive evaluation and individual credit limits are defined in accordance with this assessment.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data.

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company’s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Company’s Finance Committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

Concentrations of Credit risk form part of Credit risk

Considering that the Company operates the port services and provide related infrastructure services, the Company is significantly dependent on such customers located at Mundra. Out of total income from port operations, the Company earns 37 % revenue (previous year 28 %) from such customers, and with some of these customers, the Company has long term cargo contracts. As at March 31, 2019, receivables from such customer constitute 40 % (previous year 50%) of total trade receivables. A loss of these customer could adversely affect the operating result or cash flow of the Company.

c) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

The table below analyses derivative and non-derivative financial liabilities of the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

6.3 Capital management

For the purposes of the company’s capital management, capital includes issued capital and all other equity. The primary objective of the company’s capital management is to maximize shareholder value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The company monitors capital using gearing ratio, which is net debt (total debt less cash and bank balance) divided by total capital plus net debt.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2019 and March 31, 2018.

7. Information required to be furnished as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and Schedule III of the Companies Act, 2013 for the year ended March 31, 2019. This information has been determined to the extent such parties have been identified on the basis of information available with the Company and relied upon by auditors.

8. Capital Commitments and Other Commitments

(i) Capital Commitments

Estimated amount of contract (net of security deposits amounting to Rs.323.63 crore included in note 7 and advances) remaining to be executed on capital account and not provided for Rs.1,931.90 crore (previous year Rs.355.25 crore) pertains to various projects to be executed during the next 5 years.

(ii) Other Commitments

a) The port projects of subsidiary companies viz. Adani Hazira Port Private Limited(“AHPPL”), The Dhamra Port Company Limited (“DPCL1), joint venture Adani International Container Terminal Private Limited (“AICTPL”) and joint venture Adani CMA Mundra Terminal Private Limited (“ACMTPL”) have been funded through various credit facility agreements with banks. Against the said facilities availed by the aforesaid entities from the banks, the Company has pledged its shareholding in the subsidiary / joint venture companies and executed Non Disposal Undertaking, the details of which is tabulated below :-

b) Contract/ Commitment for purchase of certain supplies. Advance given Rs.356.95 crore (previous year Rs.231.19 crore)

c) The Company has provided a letter of support to few subsidiaries to provide financials support if and when needed to meet its financials obligation.

k) The Company’s tax assessments is completed till assessment year 2015-16, pending appeals with Appellate Tribunal for Assessment Year 2011-12 and CIT (Appeals) for Assessment Year 2012-13 to 2015-16. During the year, the Company has received a favourable order from Appellate Tribunal for assessment year 2009-10 and 2010-11. The management is reasonably confident that no liability will devolve on the Company.

l) The Company had initiated and recorded the divestment of its entire equity holding in Adani Abbot Point Terminal Holdings Pty Limited (““AAPTHPL”‘) and entire Redeemable Preference Shares holding in Mundra Port Pty Limited (‘“‘MPPL”‘) representing Australia Abbot Point Port operations to Abbot Point Port Holdings Pte Limited, Singapore during the year ended March 31, 2013. The sale of securities transaction was recorded as per Share Purchase Agreement (‘SPA’) entered on March 30, 2013 including subsequent amendments thereto, with a condition to have regulatory and lenders approvals. The Company has all the approvals except in respect of approval from one of the lenders who has given specific line of credit to MPPL. The Company received entire sale consideration except AUD 17.17 Million as on reporting date. The Company expects to receive the said amount in next year.

The Company had an outstanding corporate guarantee to a lender of USD 800 million against line of credit to MPPL, which was repaid in full during the year hence the same guarantee is not effective as on reporting date. The Company had also pledged its entire equity holding of 1,000 equity shares of AUD 1 each in MPPL in favour of lender which are in the process of getting released at the reporting date. Outstanding loan against said corporate guarantee as on March 31, 2019 is Nil (previous year USD 288.00 million). Since financial year 2013-14, the Company has received corporate guarantee (‘Deed of Indemnity’) against above outstanding corporate guarantee from Abbot Point Port Holding Pte Limited, Singapore which is effective till discharge of underlying liability and as at reporting date is no longer effective.

m) There has been a Supreme Court (SC) judgement dated 28th February 2019, relating to components of salary structure that need to be taken into account while computing the contribution to provident fund under the EPF Act. There are interpretative aspects related to the Judgement including the effective date of application. The Company will continue to assess any further developments in this matter for the implications on financial statements, if any.

9. The following are the details of loans and advances in the nature of loans given to subsidiaries, associates and other entities in which directors are interested in terms of regulation 53 (F) read together with para A of Schedule V of SEBI (Listing Obligation and Disclosure Regulation, 2015).

Note -All loans are given on interest bearing except loan to Dholera Infrastructure Private Limited, Dholera Port & Special Economic Zone Limited, Karnavati Aviation Private Limited, Adani Hospitals Mundra Private Limited, Mundra International Airport Private Limited, Abbot Point Operations Pty Limited, Adani International Terminal PTE Limited.

10. The Company had entered into preliminary agreement with a party for development and maintenance of Liquefied Natural Gas (“LNG”) terminal infrastructure facilities at Mundra (“the LNG Project”) vide preliminary agreement dated September 30, 2014. The Company had, during the quarter ended September 30, 2014, recognised project service revenue of Rs.200.00 crore towards land reclamation pending conclusion of a definitive agreement based on the activities completed.

The LNG Project is substantially completed and the Company and the other party have spent substantial amounts on their respective areas as per the agreement on the LNG Project which are within their scope. During the current year, the Management has assessed that it would be prudent to record revenue from this project once definitive agreements are executed by both the parties. Consequently the Company has derecognised accrued income amounting to Rs.121.90 crore (net off advance received Rs.50 crore and cost recognised earlier). The same is presented as an exceptional item in the financial results for the quarter and year ended March 31, 2019. The Management based on its assessment of ongoing activities, is of the view that project costs amounting to Rs.562.89 crore incurred by the Company towards the LNG Project is considered fully recoverable.

11. During the year ended March 31, 2017, the Board of Directors of APSEZL (hereinafter referred as “the Transferor Company”) and The Adani Harbour Service Private Limited (Formerly known as “TM Harbour Services Private Limited”) (hereinafter referred as “the Transferee company” or “AHSPL1), a wholly owned subsidiary of the Company had approved a Scheme of Arrangement (“the Scheme”) between the Transferor Company and the Transferee Company. After necessary approvals from the relevant stakeholders of both the companies, the Scheme was sanctioned by National Company Law Tribunal (“NCLT”) at Ahmedabad vide its order dated August 18, 2017. Pursuant to the Scheme, the Marine Business Undertaking (“Demerged Business”) of the Transferor Company was transferred on slump sale basis to the Transferee Company with appointed date of April 01, 2016. The Scheme became operative from August 23, 2017 upon filing of certified copy of the order of the NCLT, Ahmedabad with the Registrar of Companies.

The Company has accounted for the transaction in accordance with the accounting treatment prescribed in the Scheme as approved by the NCLT, Ahmedabad whereby the net assets of the Marine Business Undertaking amounting to Rs.397.18 crore of the Transferor Company as at April 1, 2016, being the appointed date, have been transferred to the transferee company for a consideration of Rs.200 crore. The shortage of the amount received as consideration and the net assets i.e. Rs.197.18 crore, as at the appointed date is adjusted to the balance of retained earnings.

Furthermore, pursuant to the demerger, the financial results of the Marine business undertaking w.e.f the appointed date till March 31, 2017 stands transferred to the transferee company and consequently Rs.514.51 crore is presented as an adjustment to the retained earnings for the financial year ended March 31, 2018.

12. Standards issued but not effective

Ind AS 116 Leases: On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced disclosure requirements for lessees.

Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17. The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The standard permits two possible methods of transition:- Full retrospective -Retrospectively to each prior period presented applying Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors Modified retrospective -Retrospectively, with the cumulative effect of initially applying the Standard recognised at the date of initial application. Under modified retrospective approach, the lessee records the lease liability as the present value of the remaining lease payments, discounted at the incremental borrowing rate and the right of use asset either as:- Its carrying amount as if the standard had been applied since the commencement date, but discounted at lessee’s incremental borrowing rate at the date of initial application or an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to that lease recognised under Ind AS 17 immediately before the date of initial application. Certain practical expedients are available under both the methods.

On completion of evaluation of the effect of adoption of Ind AS 116, the Company is proposing to use the ‘Modified Retrospective Approach’ for transitioning to Ind AS 116. Accordingly, comparatives for the year ended March 31, 2019 will not be retrospectively adjusted. The Company has elected certain available practical expedients on transition.

Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments : On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. The standard permits two possible methods of transition - i) Full retrospective approach - Under this approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight and ii) Retrospectively with cumulative effect of initially applying Appendix C recognised by adjusting equity on initial application, without adjusting comparatives. The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1, 2019. The Company will adopt the standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of initial application i.e. April 1, 2019 if any without adjusting comparatives. The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.

Amendment to Ind AS 12 - Income taxes : On March 30, 2019, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting for dividend distribution taxes. The amendment clarifies that an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. Effective date for application of this amendment is annual period beginning on or after April 1, 2019.

The Company is currently evaluating the effect of this amendment on the standalone financial statements.

Amendment to Ind AS 19 - plan amendment, curtailment or settlement- On March 30, 2019, Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with accounting for plan amendments, curtailments and settlements. The amendments require an entity:-to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement; and to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling. Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Company is currently evaluating the effect of this amendment on the standalone financial statements.

13. Event occurred after the Balance Sheet Date

Under APSEZ dividend policy, a percentage of profit are paid out as dividend. As part of the policy, this year APSEZ will be paying a combination of dividend and buy-back of shares to the shareholders, which will be announced by 4th June, 2019. This amount (Dividend Share buy-back) is expected to exceed the regular dividend pay-out.

Source : Dion Global Solutions Limited
Quick Links for adaniportsspecialeconomiczone
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.