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Bajaj Finserv

BSE: 532978|NSE: BAJAJFINSV|ISIN: INE918I01018|SECTOR: Finance - Investments
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Accounting Policy Year : Mar '19

Notes to standalone financial statements for the year ended 31 March 2019

1 Bajaj Finserv Ltd. (the ''Company'') is a public limited company domiciled in India and incorporated under the provisions of Companies Act, 1956. The Company is primarily engaged in the business of promoting financial services such as finance, insurance, wealth management, etc. through its investments in subsidiaries and joint ventures. The Company is also engaged in the business of generating power through wind turbines, a renewable source of energy. The Company''s registered office is at Bajaj Auto Ltd. Complex, Mumbai-Pune Road, Pune, Maharashtra, India. Its shares are listed on two recognised stock exchanges in India.

The Company has been recognised as a Core Investment Company (CIC) by the Reserve Bank of India (RBI) in terms of the regulations governing Non-Banking Financial Companies and is not required to be registered thereunder.

2 First time adoption and summary of significant accounting policies followed by the Company 2A Basis of preparation

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 (''the Act'') read together with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, other relevant provisions of the Act and the RBI guidelines/regulations to the extent applicable on an accrual basis.

The financial statements up to year ended 31 March 2018 were prepared in accordance with the Accounting Standards notified under the section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014, as amended and the Companies (Accounting Standards) Amendment Rules, 2016, other relevant provisions of the Act and the RBI guidelines/regulations to the extent applicable (Indian GAAP or previous GAAP).

These financial statements are the first financial statements of the Company under Ind AS. Refer note 2B for an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and financial liabilities that are measured at fair value.

The financial statements are presented in INR, which is also the Company''s functional currency and all values are rounded to the nearest crore (INR 0,000,000), except when otherwise indicated.

2B First-time adoption of Ind AS Transition to Ind AS

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

The accounting policies set out in note 2C have been applied in preparing the financial statements for the year ended 31 March 2019, the comparative information presented in these financial statements for the year ended 31 March 2018 and in the preparation of an opening Ind AS Balance Sheet at 1 April 2017 (the Company''s date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the Accounting Standards notified under section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014, as amended and the Companies (Accounting Standards) Amendment Rules, 2016 and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from 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.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS, which are considered to be material or significant by the Company.

1 Ind AS optional exemptions

a. Deemed cost for investment in subsidiaries and joint venture

Ind AS 101 provides a one time option to a first-time adopter either to measure its investment in subsidiaries and joint ventures as per previous GAAP carrying value or at fair value on the date of transition.

The Company has elected to measure its investment in subsidiaries and joint venture as per previous GAAP carrying value.

b. Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.

2 Ind AS mandatory exceptions

a. 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 2017 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following item in accordance with Ind AS at the date of transition as this was not required under previous GAAP.

b. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B. Reconciliations between previous GAAP and Ind AS

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

Reconciliation of equity as at date of transition (1 April 2017)

Particulars

Notes to first-time adoption

Previous GAAP

Adjustments

Ind AS

ASSETS

Financial assets

Cash and cash equivalents

1.30

-

1.30

Bank balance other than cash and cash equivalents

0.25

-

0.25

Trade receivables

0.63

-

0.63

Investment in subsidiaries and joint venture

2,107.53

-

2,107.53

Other investments

1

564.43

(5.89)

558.54

Other financial assets

39.74

-

39.74

2,713.88

(5.89)

2,707.99

Non-financial assets

Current tax assets (net)

10.17

-

10.17

Deferred tax assets (net)

2

-

6.21

6.21

Investment property

1

-

5.89

5.89

Property, plant and equipment

68.06

-

68.06

Capital work-in-proqress

1.19

-

1.19

Other non-financial assets

2

20.83

(15.70)

5.13

100.25

(3.60)

96.65

Total

2,814.13

(9.49)

2,804.64

LIABILITIES AND EQUITY

LIABILITIES

Financial Liabilities

Trade payables

Total outstandinq dues of micro enterprises and small enterprises

-

-

-

Total outstandinq dues of creditors other than micro enterprises and small enterprises

1.54

-

1.54

Other financial liabilities

9.99

-

9.99

11.53

-

11.53

Non-financial liabilities

Current tax liabilities (net)

17.41

-

17.41

Deferred tax liabilities (net)

2

9.49

(9.49)

-

Provisions

9.48

-

9.48

Other non-financial liabilities

0.20

-

0.20

36.58

(9.49)

27.09

EQUITY

Equity share capital

79.57

-

79.57

Other equity

2,686.45

-

2,686.45

2,766.02

-

2,766.02

Total

2,814.13

(9.49)

2,804.64

Source : Dion Global Solutions Limited
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