Introduction Objective and scope Transition for the first time needs guidance and a suitable starting point for Ind AS Transition should be efficient and practical to implement Results in transparent and comparable financial information for users over all periods presented Applies to the entity’s first Ind AS financial statements and its interim financial reports for part of the period covered by those financial statements. Does not apply to changes in accounting policies made by an entity that already applies Ind AS.

First Ind AS reporting period Introduction Timing Ind AS Ind AS Ind AS IGAAP IGAAP IGAAP Comparative period First Ind AS reporting period Q1 Q2 Q3 Q1 Q2 Q3 31/03/2014 1/4/2015 1/4/2016 31/3/2017 Transition Date Opening balance sheet Adoption Date Reporting Date Closing balance sheet

Introduction Principles IndAS 101 requires to: Avail the benefit only once. Select accounting policies that comply with Ind AS, and apply those policies for all periods presented in the first Ind AS financial statements. Apply the mandatory exceptions. Consider whether to apply any of the optional exemptions from retrospective application. Prepare an opening balance sheet at the date of transition per Ind AS. Provide disclosures to explain the transition to Ind AS from Previous GAAP. First IndAS financial statements are those that contain “an explicit and unreserved statement of compliance with Ind ASs” First financial statements comprise 3 Balance Sheets, 2 Statements of Profit and Loss & Cash Flows and 2 Statements of Changes In Equity and related notes.

Recognition and measurement Ind AS 101 requires an entity to prepare its “Opening Balance Sheet” : recognise all assets and liabilities required by Ind AS not recognise items as assets or liabilities if Ind AS does not permit such recognition reclassify assets and liabilities recognised under IGAAP to be in conformity with Ind AS apply Ind AS principles in measuring all recognised assets and liabilities All Ind AS standards should be applied retrospectively and given effect in the Opening Balance Sheet EXCEPT where mandatory exceptions and optional exemptions are permitted. Optional exemptions (21) Estimates and Mandatory exceptions (7)

Recognition and measurement Mandatory exceptions Derecognition of financial assets/liabilities to be on a prospective basis. Prohibits recognition of financial assets/liabilities that were derecognised in previous GAAP 1. Derecognition of financial assets and liabilities Prevents retrospective application of hedge accounting Existing hedges need to be in compliance with Ind AS 109 2. Hedge accounting Treatment of change in control and loss in control to be applied prospectively Total comprehensive income attributable to non controlling interest even if results in negative balance to be considered prospectively 3. Non controlling interests Assessment of classification and measurement needs to be made on the conditions that exist on the date of transition 4. Classification and measurement of financial assets

Recognition and measurement Mandatory exceptions At the date of transition, if determination of increase in credit risk since initial recognition is difficult, loss allowance to be provided at an amount equal to lifetime expected credit losses at each reporting date until de-recognition 5. Impairment of financial assets Assessment is required at the later of the date, the entity first became party to the contract and the date a reassessment is required per Ind AS 109 6.Embedded derivatives Requirement of Ind AS 20 and Ind AS 109 are to be applied prospectively. Fair valuing loans below market rate not required on date of transition, though an option is available provided the necessary information was obtained at the time of initial accounting for that loan. 7. Government loans

Recognition and measurement Optional exemptions Option available not to restate business combination that occurred before the date of transition 1. Business Combination Need not apply Ind AS for options vested before date of transition 2. Share based payments Option to fair value or carry forward the previous GAAP cost 3.Deemed cost – PPE, Intangibles, Investment property Option to determine whether an arrangement contains a lease on date of transition however it does not apply to lease classification. When lease includes both land and building elements, the classification of each element may be determined at the date of transition 4. Leases A first time adopter need not restate completed contracts per previous GAAP. 5. Revenue Contracts

Recognition and measurement Optional exemptions Cumulative foreign currency translation reserve in relation to foreign operation may be set to zero 6.Cumulative translation differences In the separate financial statements, option to measure such investments at cost per Ind AS 27, fair value or carrying amount as per previous GAAP 7.Investment in subsidiaries, associates and joint ventures Option to measure its assets and liabilities at their carrying values based on either the parent’s transition date or subsidiary’s own transition date 8. Assets and liabilities of subsidiaries, associates and joint ventures Option to consider ‘day one’ gains and losses to transactions entered into on or after the date of transition to Ind AS 9. Fair value measurement of financial assets and liabilities at initial recognition

Recognition and measurement Optional exemptions Measure liability as at transition date in accordance with Ind AS 37 Exempted to assess changes in decommissioning/restoration liabilities that occurred before the date of transition 10. Decommissioning liability included in cost of PP&E Need not split a compound financial instrument if liability has been settled at transition date 11. Compound financial instruments Option to apply debt for equity swap from the date of transition 12. Extinguishing financial liabilities with equity instruments An entity is permitted to designate, at the date of transition to Ind ASs, any financial liability and financial asset at fair value through P&L account 13. Designation of previously recognized financial instruments Option to designate existing contracts on date of transition as fair value through P&L 14. Designation of contracts to buy or sell a non financial item

Recognition and measurement Optional exemptions Exemption for entities to continue the accounting policy adopted for amortization of intangible assets arising from service concession arrangements related to toll roads 15. Financial assets or intangibles accounted in accordance with service concession arrangements Measure non current assets held for sale and discontinued operations per Ind AS 105 at the date of transition 16. Non current assets held for sale and discontinued operations Investment in JV shall be measured at the aggregate of net assets proportionately consolidated, considered as deemed cost and tested for impairment. 17. Joint arrangements No transition provided in Ind AS 101, exemption deleted, since not relevant for India 18. Borrowing cost

Recognition and measurement Optional exemptions Option to apply Ind AS 104 on a prospective basis 19. Insurance contracts Option to measure all assets and liabilities held before the functional currency normalisation date at fair value on date of transition to Ind ASs 20. Severe hyperinflation Option to apply stripping cost in production phase of a surface mine on the date of transition 21. Stripping costs Any, all or none of these exemptions may be taken. The exemptions are not applied by analogy to other items.