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

BSE: 512599ISIN: INE423A01024INDUSTRY: Trading

BSE   ` 138.05   Open: 139.50   Today's Range 137.00
141.35
-1.45 ( -1.05 %) Prev Close: 139.50 52 Week Range 101.05
236.70
Year End :2018-03 

1 Corporate Information

Adani Enterprises Limited (the Company, AEL) is a public company domiciled in India and incorporated under the provisions of Companies Act, 1956, having its registered office at “Adani House”, Near Mithakhali Six Roads, Navrangpura, Ahmedabad - 380009, Gujarat, India. Its shares are listed on the Bombay Stock Exchange and National Stock Exchange. The Company is in the business of Trading of Coal and other commodities & Coal Mine Development and Operations.

a) Office buildings includes cost of shares in Co-operative Housing Society Rs.3,500/- (31st March 2017: Rs.3,500/-).

b) Office buildings includes Rs.2.32 Crores of unquoted shares (160 equity shares of A type and 1,280 equity shares of B type of Rs.100 each fully paid-up) in Ruparelia Theatres Pvt. Ltd. By virtue of investment in shares, the Company is enjoying rights in the leasehold land and Rs.1.44 Crores towards construction contribution and exclusive use of terrace and allotted parking space.

c) Land of Rs.1.24 crores and Buildings having carrying value of Rs.1.60 crores are pending for registrations in the name of the Company.

d) For security / mortgage, refer notes 21 and 24.

2 CAPITAL WORK-IN-PROGRESS

a) Includes Building of Rs.0.85 Crores (31st March 2017 : Rs.0.85 Crores) which is in dispute and the matter is sub-judice.

b) Agricultural Land of Rs.0.45 Crores (31st March 2017 : Rs.0.45 Crores) recovered under settlement of debts, in which certain formalities are yet to be executed.

c) Includes Companys share in Unincorporated Joint Venture Assets of Rs.94.97 Crores (31st March 2017 : Rs.94.64 Crores) (Refer Note 47 a).

d) Includes expenses directly attributable to construction period of Rs.52.77 Crores (31st March, 2017 : Rs.253.33 Crores) (Refer Note 48).

e) Refer note 8(a) for project expenses reclassified during the year.

3 INVESTMENT PROPERTY

a) Fair Value of Investment Properties

The fair value of the Companys investment properties at the end of the year have been determined on the basis of valuation carried out by the management based on the transacted prices near the end of the year in the location and category of the properties being valued. The fair value measurement for all of the investment properties has been categorised as a Level 2 fair value based on the inputs to the valuation techniques used. Total fair value of Investment Properties is Rs.9.37 Crores (31st March 2017 : Rs.9.37 crores)

b) During the year, the Company carried out a review of the recoverable amount of investment properties. As a result, there were no allowances for impairment required for these properties.

c) The Company has neither generated any rental income nor incurred any direct operating expense for these Investment Properties.

Note (a):

The Company has incurred cost as Mine Developer cum Operator for Machhakata and Chendipada coal blocks, allotment of which have been cancelled pursuant to Coal Mines (Special Provision) Ordinance, 2014. The Company has filed claim for cost of investment in respect of Machhakata coal block with MahaGuj Collieries Ltd. and for Chendipada coal block with UCM Coal Company Ltd. During the year, the Company has reclassified carrying value of respective blocks from CWIP to Other Non Current Financial Assets. Pending final outcome, no further adjustment is considered necessary and the same will be given effect on ascertainment of amount.

c. Reconciliation of Income Tax Expense and the Accounting Profit multiplied by India’s tax rate :

This note presents the reconciliation of Income Tax charged as per the Tax Rate specified in Income Tax Act, 1961 & the actual provision made in the Financial Statements as at 31st March 2018 & 31st March 2017 with breakup of differences in Profit as per the Financial Statements and as per Income Tax Act, 1961.

d. Provision For Taxation :

Provision for taxation for the year has been made after considering allowance, claims and relief available to the Company as advised by the Companys tax consultants.

e. Transfer Pricing Regulations :

The Company has established a comprehensive system of maintenance of information and documentation as required by the transfer pricing legislation under section 92 - 92F of the Income Tax Act, 1961.

The management is of the opinion that its international transactions are at arms length and the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

(b) Rights, preferences and restrictions attached to each class of shares

The Company has only one class of Equity Shares having a par value of Rs.1/- per share and each holder of the Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend.

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

a) Outstanding loan from Consortium of Banks - Canara Bank, Central Bank of India, PTC India Financial Services Ltd. and Vijaya Bank for Rs.321.33 crores is Secured through first ranking hypothecation / charge / pledge / mortgage on borrowers Parsa East and Kente Basin blocks immovable and movable properties, leasehold / sub-leasehold rights over the land and property pertaining to coal washery & railway land, revenue and receivables, project accounts, both present and future, relating to the said project, repayable in 24 quarterly instalments of Rs.16.80 crores from 15th Jun, 2018.

b) Outstanding Foreign Currency Loan of USD 25.29 millions from ICICI Bank is secured through first ranking hypothecation / charge / pledge / mortgage on borrowers Parsa East and Kente Basin blocks immovable and movable properties, leasehold / sub-leasehold rights over the land and property pertaining to coal washery & railway land, revenue and receivables, project accounts, both present and future, relating to the said project, repayable in 14 quarterly instalments of USD 1,809,500 from 15th Jun, 2018.

c) Non Convertible Debentures of Rs.149.37 crores are secured by subservient charge on entire current assets and movable fixed assets of the Company except assets pertaining to mining business, repayable after one year and one month from the year ended 31st March 2018.

d) Unsecured loan from STCI Finance Ltd. of Rs.75 crores is repayable in September 2019.

e) Unsecured loan from subsidiary company is repayable at the end of 3 years from the date of loan.

f) The above loans carries interest rate ranging 5% to 12% p.a.

g) For the current maturities of long-term borrowings, refer note 26 - Other Current Financial Liabilities.

4 SHORT TERM BORROWINGS

Notes:

a) Short term Loan from IndusInd Bank for Rs.200 crores is secured by subservient charge on Current assets of the Company excluding those pertaning to mining division of the Company. The same is repayable on 28th May, 2018.

b) Foreign Currency Loan of USD 30 millions from Exim Bank is secured through Demand Promisory Note and subservient charge on the entire current assets and movable fixed assets of the Company (excluding Mining Division Assets) both present and future and repayable on 29 th January, 2019.

c) Cash Credit Facility from RBL Limited, ICICI Bank Limited and Central Bank of India are secured by immovable & moveable properties, both present & future, of the Parsa Kente Mines Project of the Company by way of first charge ranking pari passu.

d) Cash Credit Facilities of other banks are secured by hypothecation of all the inventories and book debts and other current assets, both present & future, of the Company by way of first charge ranking pari passu.

e) The Buyers Credit facilities are secured by margin money deposits and all the inventories and book debts and other current assets, both present & future, of the Company by way of first charge ranking pari passu.

f) The above loans from banks / financial institutions carries interest rate ranging 5% to 12% p.a.

The Disclosure in respect of the amounts payable to Micro and Small Enterprises have been made in the financial statements based on the information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date. These facts has been relied upon by the auditors.

Note:

a) As at 31st March, 2018, there is no amount due and outstanding to be transferred to the Investor Education and Protection Fund by the Company. Unclaimed Dividend, if any, shall be transferred to Investor Education and Protection Fund as and when they become due.

The Exceptional Items during the year relate to :

a) During the previous year ended 31st March, 2017, the Company had raised a reimbursement claim on customer for non-lifting of contractual coal quantity and price escalation in mining business pursuant to favourable arbitration award. The financial results of the previous year includes impact of Rs.181.18 crores . During the current year ended 31st March, 2018, the arbitration award has been reversed by the Honble High Court of Rajasthan. Pursuant to this order, the Company has written-off the claim.

b) Gain (net of provision) of Rs.0.13 Crores for the year towards divestment of 100% equity holding in subsidiary Adani Energy Limited.

5 DISCONTINUING OPERATIONS

The Board of Directors of the Company at its meeting held on 7th October, 2017 approved the Scheme of Arrangement among Adani Enterprises Limited (the Company) and Adani Green Energy Limited (AGEL) and their respective shareholders and creditors (Scheme) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 for demerger of the Renewable Power Undertaking (as defined in the Scheme) of the Company and transfer of the same to AGEL. The Scheme was subsequently approved by the shareholders and creditors of the Company and AGEL at their respective meetings held on 10 th January, 2018. Pursuant to this, the Scheme was sanctioned by the Honble National Company Law Tribunal vide its order dated 16th February, 2018.

Since the Scheme has been approved and has become effective from the appointed date of 1st April, 2018, the Renewable Power Undertaking (as defined in the Scheme) of the Company has been classified as Discontinuing Operations in these financial results.

6 Financial Instruments and Risk Review

(a) Accounting Classification and Fair Value Hierarchy Financial Assets and Liabilities :

The Companys principal financial assets include loans and trade receivables, cash and cash equivalents and other receivables. The Companys principal financial liabilities comprise of borrowings, provisions, trade and other payables. The main purpose of these financial liabilities is to finance the Companys operations and projects.

Fair Value Hierarchy :

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level-1 : Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level-2 : Inputs are other than quoted prices included within Level-1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

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

The following tables summarise carrying amounts of financial instruments by their categories and their levels in fair value hierarchy for each year end presented.

Notes :

(a) Investments exclude Investment in Subsidiaries, Joint Ventures and Associates.

(b) Carrying amounts of current financial assets and liabilities as at the end of the each year presented approximate the fair value because of their short term nature. Difference between carrying amounts and fair values of other noncurrent financial assets and liabilities subsequently measured at amortised cost is not significant in each of the year presented.

(b) Financial Risk Management Objective and Policies :

The Companys risk management activities are subject to the management direction and control under the framework of Risk Management Policy as approved by the Board of Directors of the Company. The Management ensures appropriate risk governance framework for the Company through appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Companys policies and risk objectives.

The Company is primarily exposed to risks resulting from fluctuation in market risk, credit risk and liquidity risk, which may adversely impact the fair value of its financial instruments.

(i) Market Risk

Market risk is the risk of loss of future earnings, fair value or future cash flows of a financial instrument, that may result from adverse changes in interest rate and foreign currency exchange rates.

A. Foreign Currency Exchange Risk :

Since the Company operates internationally and portion of the business transacted are carried out in more than one currency, it is exposed to currency risks through its transactions in foreign currency or where assets or liabilities are denominated in currency other than functional currency.

The company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies including the use of derivatives like foreign exchange forward and option contracts to hedge exposure to foreign currency risks.

For open positions on outstanding foreign currency contracts and details on unhedged foreign currency exposure, please refer note no. 39

Every percentage point depreciation / appreciation in the exchange rate between the Indian Rupee and the U. S. Dollar, would have affected the Companys profit for the year as follows:

B. Interest Risk :

The Company is exposed to changes in interest rates due to its financing, investing and cash management activities. The risks arising from interest rate movements arise from borrowings with variable interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

The Companys risk management activities are subject to the management, direction and control of Central Treasury Team of the Adani Group under the framework of Risk Management Policy for interest rate risk. The Groups Central Treasury Team ensures appropriate financial risk governance framework for the Company through appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Groups policies and risk objectives.

For Companys total borrowings, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used, which represents managements assessment of the reasonably possible change in interest rate.

(ii) Credit Risk

Credit risk refers to the risk that a counterparty or customer will default on its contractual obligations resulting in a loss to the Company. Financial instruments that are subject to credit risk principally consist of Loans, Trade and Other Receivables, Cash & Cash Equivalents, Investments and Other Financial Assets. The carrying amounts of financial assets represent the maximum credit risk exposure.

Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of counter parties on continuous basis with appropriate approval mechanism for sanction of credit limits. Credit risk from balances with banks, financial institutions and investments is managed by the Companys treasury team in accordance with the Companys risk management policy. Cash and cash equivalents and Bank deposits are placed with banks having good reputation, good past track record and high quality credit rating.

Since the Company has a fairly diversified portfolio of receivables in terms of spread, no concentration risk is foreseen. A significant portion of the Companys receivables are due from public sector units (which are government undertakings) and hence may not entail any credit risk.

(iii) Liquidity Risk

Liquidity risk refers the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Companys objective is to provide financial resources to meet its obligations when they are due in a timely, cost effective and reliable manner without incurring unacceptable losses or risking damage to the Companys reputation. The Company monitors liquidity risk using cash flow forecasting models. These models consider the maturity of its financial investments, committed funding and projected cash flows from operations.

(iv) Capital Management

For the purpose of the Companys capital management, (including discontinuing operations), capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

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

Management monitors the return on capital, as well as the levels of dividends to equity shareholders. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2018 and 31st March, 2017.

7 Disclosure Regarding Derivative Instruments and Unhedged Foreign Currency Exposure :

(a) The outstanding foreign currency derivative contracts / options as at 31st March, 2018 in respect of various types of derivative hedge instruments and nature of risk being hedged are as follows :

Forward derivative contracts in respect of Imports and Other Payables

(b) Foreign currency exposures not covered by derivative instruments or otherwise as at 31st March, 2018 as under :

Note:

(i) As at 31st March, 2018 1 USD = INR 65.175 and as at 31st March, 2017 1 USD = INR 64.85

(ii) 0.00 denotes amount less than USD 5,000

8 Contingent Liabilities and Commitments

(A) Contingent Liabilities to the extent not provided for :

Note:

(i) Most of the issues of litigation pertaining to Central Excise / Service Tax / Income Tax are based on interpretation of the respective Law & Rules thereunder. Management has been opined by its counsel that many of the issues raised by revenue will not be sustainable in the law as they are covered by judgements of respective judicial authorities which supports its contention. As such no material impact on the financials of the Company is envisaged.

(ii) Other issues are either in ordinary course of business or not of substantial nature and management is reasonably confident of their positive outcome. Management shall deal with them judiciously and provide for appropriately, if any such need arises.

(B) Capital and Other Commitments :

a) Capital Commitments

b) Other Commitments :

i) The Company from time to time provides need based support to subsidiaries towards capital and other financial commitments.

ii) For derivatives and lease commitments, refer Note 39 and 42 respectively.

9 The Company has initiated legal proceedings against various parties for recovery of dues and such legal proceedings are pending at different stages as at the date of the Balance Sheet and are expected to materialize in recovering the dues in the future. Based on the review of these accounts by the management, adequate provision has been made for doubtful recovery. Management is hopeful for their recovery. In the opinion of the management adequate balance is lying in General Reserve / Retained earnings to meet the eventuality of such accounts being irrecoverable.

10 Disclosure as required by the Ind AS 17, “Leases” as specified in the Companies (Accounting Standard) Rules 2015 (as amended) are given below :

Assets given on operating lease :

Refer Note 3(a) for disclosures.

Assets taken on operating lease :

(a) The aggregate lease rentals payable are charged to the Statement of Profit & Loss as Rent in Note 35.

(b) The company has taken office space, godowns and guest house on operating lease. The lease rentals are payable by the Company on a monthly or quarterly basis.

(c) The leasing arrangements, which are cancellable at any time on month-to-month basis and in some cases between 11 months to 5 years, are usually renewable by mutual consent on mutually agreeable terms. Under these arrangements, generally interest free refundable deposits have been given.

11 The Company has made provision in the Accounts for Gratuity based on Actuarial valuation. The particulars under the Ind AS 19 “Employee Benefits” furnished below are those which are relevant and available to the Company for this year.

(a) Contributions to Defined Contribution Plan, recognised as expense for the year are as under :

(b) Contributions to Defined Benefit Plans are as under :

(1) Net amount recognised in the statement of Profit & Loss for year ended 31st March, 2018

(2) Net amount recognised in the Other Comprehensive Income for year ended 31st March, 2018

(3) Net amount recognised in the Balance Sheet for year ended 31st March, 2018

(4) The principal actuarial assumption used as at 31st March, 2018 are as follows:

Sensitivity Analysis:

The sensitivity analysis below has 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 results of sensitivity analysis is given below :

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. There is no change in method of valuation for the prior period.

(5) Maturity Profile of Obligations

The average duration of the defined benefit plan obligation at the end of the reporting period is 9 years (31st March 2017: 10 years). The expected maturity analysis of gratuity benefits is as follows :

(c) The estimate of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(d) The Companys expected contribution to the fund in the next financial year is Rs.3.17 Crores (31st March 2017 : Rs.3.67 Crores)

(e) Current and non current classification is done based on actuarial valuation certificate.

12 Disclosure of transactions with Related Parties, as required by Ind AS 24 “Related Party Disclosures” has been set below. Related parties as defined under clause 9 of the Ind AS 24 have been identified on the basis of representations made by the management and information available with the Company.

( i ) Name of Related Parties & Description of Relationship

(A) Controlling Entity :

Shantilal Bhudhermal Adani Family Trust (SBAFT)

(B) Subsidiary Companies :

(C) Step-down Subsidiary Companies / Firms :

(D) Associates with whom transactions done during the year :

1 CSPGCL AEL Parsa Collieries Ltd.

Notes:

a) Mr. Vasant S. Adani resigned as Director of the Company w.e.f. 12th Aug, 2017 due to his pre-occupation.

b) Mr. Anil Ahuja ceased as Director of the Company w.e.f. 31st May, 2017 on attaining retirement criteria in accordance with the Groups Retirement Policy for Non-Executive Independent Directors.

c) Mr. Narendra Mairpady was appointed as an Additional Director of the Company w.e.f. 9th Dec, 2017.

13 Following are the details of loans and advances in 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, 2013).

(a) Loans and advances in the nature of loans to subsidiaries and associates by name and amount :

14 Items of Expenditure in the Statement of Profit and Loss include reimbursements for common sharing facilities to and by the Company.

15 Pursuant to Ind AS 31 - Financial Reporting of Interests in Joint Venture, the disclosures relating to the Joint Ventures are as follows :

(a) Jointly Controlled Assets

The Company jointly with other parties to the joint venture, have been awarded two onshore oil & gas blocks at Palej and Assam by Government of India through NELP-VI bidding round, has entered into Production Sharing Contracts (PSC) with Ministry of Petroleum and Natural Gas for exploration of oil and gas in the aforesaid blocks. Naftogaz India Pvt. Ltd.(NIPL) being one of the parties to consortium was appointed as operator of the blocks vide Joint Operating Agreements (JOAs) entered into between parties to consortium. The expenditures related to the activities in the blocks were incurred by Adani Group, Welspun Group or through its joint venture Adani Welspun Exploration Ltd.

Government of India has issued a notice intimating the termination of the Production Sharing Contracts (PSCs) in respect of the Assam and Palej blocks purportedly due to misrepresentation made by the operator of the blocks -NIPL. The Company has contested the termination and in accordance with the provisions of the PSC has urged the Government to allow it to continue the activities in Palej block.

The financial statements of the Company reflect its share of Assets and Liabilities of the jointly controlled assets which are accounted on a line to line basis with similar items in the Companys accounts to the extent of participating interest of the Company as per the various joint venture agreements, in compliance of Ind AS 31. The summary of the Companys share in Assets & Liabilities of unincorporated joint ventures are as follow:

(b) Jointly Controlled Entities

The Company has a Joint Venture interest in Adani Elbit Advanced Systems India Limited, companies incorporated under the Companies Act, 2013. As on 31st March 2018, the Company has invested a sum of Rs.0.77 Crores. (31st March 2017: Rs.0.01 Crores)

16 Expenses directly attributable to construction period :

The following expenses including borrowing cost which are specifically attributable to construction of project are included in capital work-in-progress (CWIP):

17 Corporate Social Responsibility :

As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company. During the year, the Company was required to spend Rs.5.63 crores as per the provisions of Section 135 of the Companies Act, 2013.

The CSR activities of the Company are generally carried out through charitable organisations set up by the Group, whereby funds are allocated from the Company. These organisations carry out the CSR activities as specified in Schedule VII of the Companies Act, 2013 on behalf of the Company. During the year the Company has contributed Rs.5.63 crores to these organisations (refer note 44) and has spend Rs.0.40 crores on other charitable activities.

18 The Board of Directors of the Company at its meeting held on 18th January, 2018, has considered and approved the Composite Scheme of Arrangement among Adani Enterprises Limited (the Company), Adani Gas Limited (AGL) and Adani Gas Holdings Limited (AGHL) and their respective shareholders and creditors (Scheme) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013. The Scheme, inter alia, provides for amalgamation of AGL and AGHL, demerger of the Gas Sourcing and Distribution Business (as defined in the Scheme) of the Company and transfer of the same to AGL and issue of equity shares by AGL to the equity shareholders of the Company and cancellation of equity shares held by the Company in AGL.

The Scheme is subject to requisite statutory and regulatory approvals and sanction by the respective shareholders and creditors of each the companies involved in the Scheme.

19 Recent Indian Accounting Standards (Ind AS)

(a) Standards issued but not yet effective

On 28th March, 2018, Ministry of Corporate Affairs (MCA) has notified new standards and amendments to existing standards. These amendments are effective for annual periods beginning after 1st April, 2018.

Ind AS 115 Revenue from contract with customers

Ind AS 115 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. It replaces existing revenue recognition guidance, including Ind AS 18 Revenue and Ins AS 11 Construction Contracts. The core principle of the new standard that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entitys contracts with customers.

This Standard permits two possible methods of transition i.e. retrospective approach and modified retrospective method.

The Company is in the process of evaluating and identifying the key impacts along with transition options to be considered while transiting to Ind AS 115.

(b) Amendment to existing issued Ind AS

The MCA has also carried out amendments of the following accounting standards:

(i) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates

(ii) Ind AS 40 - Investment Property

(iii) Ind AS 12 - Income Taxes

(iv) Ind AS 28 - Investments in Associates and Joint Ventures and

(v) Ind AS 112 - Disclosure of Interests in Other Entities

Application of above standards are not expected to have any significant impact on the Companys financial statements.

20 Details of loans given, Investments made and Guarantee given or security provided covered u/s 186 (4) of the Companies Act, 2013 are given under respective heads (refer Note 6 and 44).

21 As per Ind AS 108, “Operating Segments”, if a single financial report contains both Standalone financial statements and Consolidated financial statements of the Company, segment information may be presented only on the basis of Consolidated Financial Statements of the Company. Hence, the required segment information has been appended in the Consolidated Financial Statements.

22 The Board of Directors at its meeting held on 10 th May, 2018 have recommended the payment of a final dividend of Rs.0.40 per equity share of the face value of Rs.1 each for financial year 2017-18. This proposed dividend is subject to approval of shareholders in the ensuing annual general meeting.

For financial year 2016-17, the Company had proposed final dividend of Rs.0.40 per equity share of Rs.1 each. The same was declared and paid during the current year ended 31st March, 2018.

23 Events occurring after the Balance sheet Date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. There are no subsequent events to be recognized or reported that are not already disclosed.

24 Approval of financial statements

The financial statements were approved for issue by the board of directors on 10 th May, 2018.

25 Figures of the previous year have been regrouped, wherever considered necessary to make them comparable to current years figures.