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CORPORATE STATUTORY FINANCIAL
OVERVIEW STATEMENTS STATEMENTS

Notes to the Consolidated financial statements for the year ended March 31, 2020

impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the
unit pro-rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or
loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or
loss on disposal.
(f) Investments in associates and joint ventures
Associates are those entities over which the Group has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the entities but is not control or joint control of those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the
joint arrangement. The joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent of the parties sharing control.

The results and assets and liabilities of associates or joint ventures are incorporated in these consolidated financial statements using
the equity method of accounting, except when the investment, or a portion thereof, is classified as held for sale, in which case it is
accounted for in accordance with Ind AS 105. Under the equity method, an investment in an associate or a joint venture is initially
recognised in the consolidated balance sheet at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and
other comprehensive income of the associate or joint venture. Distributions received from an associate or a joint venture reduce the
carrying amount of the investment. The carrying value of the Group’s investment includes goodwill identified on acquisition, net of any
accumulated impairment losses. When the Group’s share of losses of an associate or a joint venture exceeds its interest in that associate
or joint venture, the carrying amount of that interest (including any long-term investments) is reduced to zero and the recognition of
further losses is discontinued except to the extent that the Group has obligations or has made payments on behalf of the associate or
joint venture.
An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee becomes
an associate or a joint venture and discontinues from the date when the investment ceases to be an associate or a joint venture, or
when the investment is classified as held for sale. On acquisition of the investment in an associate or a joint venture, any excess of the
cost of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised
as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value of the
identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised directly in equity as capital reserve in
the period in which the investment is acquired.
After application of the equity method of accounting, the Group determines whether there any is objective evidence of impairment as
a result of one or more events that occurred after the initial recognition of the net investment in an associate or a joint venture and that
event (or events) has an impact on the estimated future cash flows from the net investment that can be reliably estimated. If there exists
such an objective evidence of impairment, then it is necessary to recognise impairment loss with respect to the Group’s investment in
an associate or a joint venture.

When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment in accordance with Ind AS
36 Impairment of Assets as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs of disposal)
with its carrying amount, Any impairment loss recognised forms part of the carrying amount of the investment. Any reversal of that
impairment loss is recognised in accordance with Ind AS 36 to the extent that the recoverable amount of the investment subsequently
increases.
The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint venture,
or when the investment is classified as held for sale. When the Group retains an interest in the former associate or joint venture and the
retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as
its fair value on initial recognition in accordance with Ind AS 109. The difference between the carrying amount of the associate or joint
venture at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing
of a part interest in the associate or joint venture is included in the determination of the gain or loss on disposal of the associate or
joint venture. In addition, the Group accounts for all amounts previously recognised in other comprehensive income in relation to that
associate or joint venture on the same basis as would be required if that associate or joint venture had directly disposed of the related
assets or liabilities. Therefore, if a gain or loss previously recognised in other comprehensive income by that associate or joint venture
would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity
to profit or loss (as a reclassification adjustment) when the equity method is discontinued.

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