UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 20-F/A

Amendment No. 1

 

(Mark One)

 

¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 

Or

 

þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 

 

For the fiscal year ended March 31, 2020.

 

Or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
 

 

For the transition period from                to        

 

¨ SHELL COMPANY PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
   
  Date of event requiring this shell Company report                 

  

Commission file number 000-27663

 

Sify Technologies Limited

(Exact name of Registrant as specified in its charter)

 

Not Applicable

(Translation at Registrant’s name into English)

 

Chennai, Tamil Nadu, India

(Jurisdiction of incorporation or organization)

 

TIDEL Park, 2nd Floor

4, Rajiv Gandhi Salai

Taramani, Chennai 600 113 India

(91) 44-2254-0770, Fax (91) 44 -2254 0771

(Address of principal executive office)

 

M.P.Vijay Kumar, Chief Financial Officer, (91) 44-2254-0770; vijaykumar.mp@sifycorp.com

TIDEL Park, 2nd Floor, 4, Rajiv Gandhi Salai, Taramani, Chennai 600113 India

(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)

 

Securities registered or to be registered pursuant to Section 12(b) of the Act

 

Title of each class   Trading Symbol   Name of each Exchange on which registered
         
American Depository Shares, each represented by   SIFY   NASDAQ Capital Market (NASDAQ-CM)

One Equity Share, par value ₹ 10 per share

       

 

Securities registered or to be registered pursuant to Section 12(g) of the Act

 

Title of each class   Name of each Exchange on which registered
     
None    Not Applicable

 

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act

 

Not Applicable

 

(Title of class) 

 

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.

 

179,223,247 Equity Shares.

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 

Yes ¨ No þ

 

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

 

Yes ¨ No þ

 

Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes þ No ¨

 

Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data file required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Yes þ No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or an emerging growth company. See definition of “large accelerated filer,” and large “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ¨ Accelerated filer  ¨ Non-accelerated filer  þ  
Emerging growth company  ¨      

 

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ¨

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. þ

 

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

 

US GAAP  ¨ International Financial Reporting Standards as  
  issued by the International Accounting Standards Board  þ Other  ¨

 

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:    ¨ Item 17     ¨ Item 18

 

If this is an annual report, indicate by check mark whether the registrant is a shell Company (as defined in Rule 12b-2 of the Exchange Act).

 

Yes ¨ No þ

 

 

 

   

 

  

EXPLANATORY NOTE

 

This Amendment No. 1 on Form 20-F/A (this “Amendment”) amends the Annual Report on Form 20-F of Sify Technologies Limited (the “Company,” “Sify,” “we,” and “our”) for the fiscal year ended March 31, 2020 (the “Original Filing”), which was filed with the Securities and Exchange Commission on July 29, 2020.

 

The Company is filing this Amendment solely for the purpose of furnishing Interactive Data File disclosure as Exhibit 101 in accordance with Rule 405 of Regulation S-T. Exhibit 101 is furnished in accordance with the Temporary Hardship Exemption provided by Rule 201 of Regulation S-T, which extended the date by which the Interactive Data File is required to be submitted by six business day .

 

Except as described above or as otherwise expressly provided by the terms of this Amendment, no other changes have been made to the Original Filing. Except as otherwise indicated herein, this Amendment continues to speak as of the date of the Original Filing, and the Company has not updated the disclosures contained therein to reflect any events that occurred subsequent to the date of the Original Filing.

 

 2 

 

  

SIGNATURES

 

The Registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and has duly caused and authorized the undersigned to sight this Amendment to the Annual Report on its behalf.

 

  Sify Technologies Limited
     
  By: /s/ Raju Vegesna
    Name: Raju Vegesna
    Title: CEO &Managing Director
     
    /s/ M P Vijay Kumar
    Name: M P Vijay Kumar
    Title: Chief Financial Officer

 

Date: July 30, 2020

 

 3 

 

  

ITEM 19. EXHIBITS

 

The following additional exhibits are included as a part of this Amendment No.1:

 

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Scheme Linkbase Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

 

 4 

 

v3.20.2
Cover Page
12 Months Ended
Mar. 31, 2020
shares
Document Information [Line Items]  
Document Type 20-F/A
Amendment Flag true
Amendment Description This Amendment No. 1 on Form 20-F/A (this “Amendment”) amends the Annual Report on Form 20-F of Sify Technologies Limited (the “Company,” “Sify,” “we,” and “our”) for the fiscal year ended March 31, 2020 (the “Original Filing”), which was filed with the Securities and Exchange Commission on July 29, 2020. The Company is filing this Amendment solely for the purpose of furnishing Interactive Data File disclosure as Exhibit 101 in accordance with Rule 405 of Regulation S-T. Exhibit 101 is furnished in accordance with the Temporary Hardship Exemption provided by Rule 201 of Regulation S-T, which extended the date by which the Interactive Data File is required to be submitted by six business day. Except as described above or as otherwise expressly provided by the terms of this Amendment, no other changes have been made to the Original Filing. Except as otherwise indicated herein, this Amendment continues to speak as of the date of the Original Filing, and the Company has not updated the disclosures contained therein to reflect any events that occurred subsequent to the date of the Original Filing.
Document Period End Date Mar. 31, 2020
Document Fiscal Year Focus 2020
Document Fiscal Period Focus FY
Entity Registrant Name SIFY TECHNOLOGIES LTD
Entity Central Index Key 0001094324
Current Fiscal Year End Date --03-31
Entity Well-known Seasoned Issuer No
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Filer Category Non-accelerated Filer
Trading Symbol SIFY
Entity Common Stock, Shares Outstanding 179,223,247
Entity Shell Company false
Entity Emerging Growth Company false
Entity Interactive Data Current Yes
Document Annual Report true
Document Transition Report false
Document Shell Company Report false
Title of 12(b) Security American Depository Shares, each represented by One Equity Share, par value ₹ 10 per share
Security Exchange Name NASDAQ
v3.20.2
Consolidated Statement of Financial Position
₨ in Thousands, $ in Thousands
Mar. 31, 2020
INR (₨)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
INR (₨)
Assets      
Property, plant and equipment ₨ 11,801,530 $ 156,548 ₨ 8,636,012
Right of Use Assets 3,864,543 51,263 0
Intangible assets 679,692 9,016 576,519
Lease prepayments 0 0 1,322,748
Other assets 917,216 12,167 1,831,937
Deferred contract costs 38,237 507 30,626
Other investments 211,972 2,812 194,639
Deferred tax assets 99,346 1,318 236,046
Total non-current assets 17,612,536 233,631 12,828,527
Inventories 1,302,056 17,272 1,715,314
Trade and other receivables, net 12,071,983 160,135 12,627,440
Contract assets 16,113 214 33,634
Deferred contract costs 63,774 846 82,405
Prepayments for current assets 537,844 7,135 400,883
Restricted cash 332,605 4,412 313,057
Cash and cash equivalents 2,318,480 30,755 1,934,918
Total current assets 16,642,855 220,769 17,107,651
Total assets 34,255,391 454,400 29,936,178
Equity      
Share capital 1,805,047 23,944 1,804,258
Share premium 19,358,022 256,786 19,352,084
Share based payment reserve 351,054 4,657 306,080
Other components of equity 93,617 1,242 54,613
Accumulated deficit (10,256,432) (136,052) (10,738,207)
Total equity attributable to equity holders of the Company 11,351,308 150,577 10,778,828
Liabilities      
Finance lease obligations, other than current installments 0 0  
Borrowings 3,741,106 49,626 3,328,544
Lease liabilities 1,470,099 19,501 27,027
Employee benefits 177,399 2,353 170,811
Contract liabilities 981,767 13,023 1,022,385
Other liabilities 33,420 443 172,423
Total non-current liabilities 6,403,791 84,946 4,721,190
Finance lease obligations, current installments 0 0  
Borrowings 4,361,631 57,857 3,329,767
Lease Liabilities 356,110 4,724 69,852
Bank overdraft 1,235,794 16,393 1,553,203
Trade and other payables 9,073,859 120,365 8,149,536
Contract liabilities 1,472,898 19,538 1,333,802
Total current liabilities 16,500,292 218,877 14,436,160
Total liabilities 22,904,083 303,823 19,157,350
Total equity and liabilities ₨ 34,255,391 $ 454,400 ₨ 29,936,178
v3.20.2
Consolidated Statement of Income
₨ in Thousands, $ in Thousands
12 Months Ended
Mar. 31, 2020
INR (₨)
₨ / shares
Mar. 31, 2020
USD ($)
$ / shares
Mar. 31, 2019
INR (₨)
₨ / shares
Mar. 31, 2018
INR (₨)
₨ / shares
Revenue        
- Rendering of services ₨ 21,125,781 $ 280,235 ₨ 19,640,146 ₨ 19,109,169
- Sale of products 1,826,286 24,226 1,906,739 1,576,444
Total 22,952,067 304,461 21,546,885 20,685,613
Cost of goods sold and services rendered        
- Rendering of services (12,488,814) (165,666) (11,911,352) (12,103,596)
- Sale of products (1,876,013) (24,885) (1,690,872) (1,331,354)
Total (14,364,827) (190,551) (13,602,224) (13,434,950)
Other income 97,155 1,289 217,216 189,738
Selling, general and administrative expenses (4,513,646) (59,874) (4,874,620) (4,394,814)
Depreciation and amortization (2,290,777) (30,387) (1,533,912) (1,754,537)
Profit  from operating activities 1,879,972 24,938 1,753,345 1,291,050
Finance income 193,877 2,572 46,314 129,325
Finance expenses (1,054,133) (13,983) (728,344) (496,780)
Net finance income / (expense) (860,256) (11,411) (682,030) (367,455)
Profit before tax 1,019,716 13,527 1,071,315 923,595
Income tax (expense) / benefit (314,339) (4,170) (2,612) (194)
Profit for the year 705,377 9,357 1,068,703 923,401
Attributable to:        
Equity holders of the Company 705,377 9,357 1,068,703 923,401
Non-controlling interest 0 0 0 0
Profit for the year ₨ 705,377 $ 9,357 ₨ 1,068,703 ₨ 923,401
Earnings per share        
Basic earnings per share | (per share) ₨ 3.94 $ 0.05 ₨ 6.92 ₨ 6.14
Diluted earnings per share | (per share) ₨ 3.90 $ 0.05 ₨ 6.86 ₨ 6.11
v3.20.2
Consolidated Statement of Comprehensive Income
₨ in Thousands, $ in Thousands
12 Months Ended
Mar. 31, 2020
INR (₨)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
INR (₨)
Mar. 31, 2018
INR (₨)
Income Statement [Abstract]        
Profit for the year ₨ 705,377 $ 9,357 ₨ 1,068,703 ₨ 923,401
Items that will not be reclassified to profit or loss        
Remeasurements of the net defined benefit liability/asset 10,816 143 2,671 5,379
Items that may be reclassified to profit or loss        
Exchange differences on translation of foreign operations 28,188 374 18,307 1,458
Total other comprehensive income, net of taxes 39,004 517 20,978 6,837
Total comprehensive income 744,381 9,874 1,089,681 930,238
Total comprehensive income attributable to:        
Equity holders of the Company 744,381 9,874 1,089,681 930,238
Non-controlling interest      
Comprehensive income ₨ 744,381 $ 9,874 ₨ 1,089,681 ₨ 930,238
v3.20.2
Consolidated Statement of Changes in Equity
₨ in Thousands, $ in Thousands
INR (₨)
USD ($)
Share capital [Member]
INR (₨)
Share premium [Member]
INR (₨)
Share based payment reserve [Member]
INR (₨)
Other components of equity [Member]
INR (₨)
Retained earnings /(accumulated deficit) [Member]
INR (₨)
Equity attributable to owners of parent [Member]
INR (₨)
Non-controlling interest [Member]
INR (₨)
Balance at the Beginning at Mar. 31, 2017 ₨ 8,264,419   ₨ 1,516,875 ₨ 18,680,731 ₨ 305,539 ₨ 26,798 ₨ (12,265,524) ₨ 8,264,419 ₨ 0
Statement [Line Items]                  
Total comprehensive income for the year 930,238   0 0 0 6,837 923,401 930,238 0
Transactions with owners, recorded directly in equity                  
Shares issued on exercise of ESOP 12,169   1,538 10,631 0 0 0 12,169 0
Call money received 0   0 0 0 0 0 0 0
Dividends paid (incl dividend distribution tax) (208,697)   0 0 0 0 (208,697) (208,697) 0
Transferred from share based payment reserve 0   0 2,668 (2,668) 0 0 0 0
Share-based payment transactions 6,824   0 0 6,824 0 0 6,824 0
Balance at the Ending at Mar. 31, 2018 9,004,953   1,518,413 18,694,030 309,695 33,635 (11,550,820) 9,004,953 0
Statement [Line Items]                  
Change in accounting policy on adoption of IFRS 15 (38,215)   0 0 0 0 (38,215) (38,215)  
Total comprehensive income for the year 1,089,681   0 0 0 20,978 1,068,703 1,089,681 0
Transactions with owners, recorded directly in equity                  
Shares issued on exercise of ESOP 35,449   4,595 30,854 0 0 0 35,449 0
Call money received 900,000   281,250 618,750 0 0 0 900,000 0
Dividends paid (incl dividend distribution tax) (217,875)   0 0 0 0 (217,875) (217,875) 0
Transferred from share based payment reserve 0   0 8,450 (8,450) 0 0 0 0
Share-based payment transactions 4,835   0 0 4,835 0 0 4,835 0
Balance at the Ending at Mar. 31, 2019 10,778,828   1,804,258 19,352,084 306,080 54,613 (10,738,207) 10,778,828 0
Statement [Line Items]                  
Total comprehensive income for the year 744,381 $ 9,874 0 0 0 39,004 705,377 744,381 0
Transactions with owners, recorded directly in equity                  
Shares issued on exercise of ESOP 5,329   789 4,540       5,329  
Call money received 0             0  
Dividends paid (incl dividend distribution tax) (223,602)           (223,602) (223,602)  
Transferred from share based payment reserve 0     1,398 (1,398)     0  
Transaction costs related to equity 0             0  
ESOP Expenses 46,372       46,372     46,372  
Balance at the Ending at Mar. 31, 2020 ₨ 11,351,308   ₨ 1,805,047 ₨ 19,358,022 ₨ 351,054 ₨ 93,617 ₨ (10,256,432) ₨ 11,351,308 ₨ 0
v3.20.2
Consolidated Statements of Cash Flows
₨ in Thousands, $ in Thousands
12 Months Ended
Mar. 31, 2020
INR (₨)
Mar. 31, 2020
USD ($)
Mar. 31, 2019
INR (₨)
Mar. 31, 2018
INR (₨)
Statement [Line Items]        
Profit for the year ₨ 705,377 $ 9,357 ₨ 1,068,703 ₨ 923,401
Adjustments for:        
Depreciation and amortization 2,290,777 30,387 1,533,912 1,754,537
(Gain) / loss on sale of property, plant and equipment 10,158 135 (7,218) (2,553)
Deposits/Advances no longer payable written back 43,957 583    
Provision for doubtful receivables/ advances 479,747 6,364 536,290 370,000
Stock compensation expense 46,372 615 4,835 6,824
Net finance (income) / expense 860,256 11,411 682,030 367,455
Unrealized (gain)/ loss on account of exchange differences 8,342 111 64,100 (1,863)
Amortization of leasehold prepayments 0 0 22,096 21,728
Tax expense 314,339 4,170 2,612 194
Cash flow from operating activities before working capital changes 4,759,325 63,133 3,907,360 3,439,723
Change in trade and other receivables (289,830) (3,845) (2,182,564) (2,220,619)
Change in inventories 413,258 5,482 (1,069,467) 536,139
Change in Contract Assets 17,521 232 23,916 0
Change in Contract Costs 11,020 146 (4,312) 0
Change in Contract Liabilities 140,378 1,862 261,094 0
Change in other assets (561,037) (7,442) (158,442) (518,958)
Change in trade and other payables 235,332 3,123 1,204,143 604,701
Change in employee benefits 17,888 237 26,874 29,060
Change in deferred income 0 0 0 296,574
Cash generated from operations 4,743,855 62,928 2,008,602 2,166,620
Income taxes (paid)/ refund received 298,963 3,966 (567,222) (46,016)
Net cash from / (used in) operating activities 5,042,818 66,894 1,441,380 2,120,604
Cash flows from / (used in) investing activities        
Acquisition of property, plant and equipment (4,062,088) (53,884) (3,795,426) (1,668,979)
Expenditure on intangible assets (340,898) (4,522) (173,422) (163,507)
Proceeds from sale of property, plant and equipment 11,242 149 7,318 2,425
Investments in corporate debt securities 0 0 (38,300) (71,093)
Finance income received 164,012 2,176 26,148 106,850
Amount paid for acquisition of right of use assets (98,587) (1,308) 0 0
Net cash from / (used in) investing activities (4,326,319) (57,389) (3,973,682) (1,794,304)
Cash flows from / (used in) financing activities        
Proceeds from issue of share capital (including share premium) 0 0 935,448 12,169
Proceeds from issue of shares on exercise of options (including share premium) 5,334 71 0 0
Proceeds from / (repayment) of borrowings (net) 1,488,903 19,750 3,133,845 42,719
Repayment of lease liabilities (219,529) (2,912) 0 0
Finance expenses paid (1,047,185) (13,891) (707,937) (491,293)
Proceeds from / (repayment of) finance lease liabilities 0 0 (89,086) (402,954)
Payment of dividend and dividend distribution tax (223,602) (2,966) (217,880) (208,697)
Net cash from / (used in) financing activities 3,921 52 3,054,390 (1,048,056)
Net increase / (decrease) in cash and cash equivalents 720,420 9,557 522,088 (721,756)
Cash and cash equivalents at April 1 694,772 9,216 166,584 893,104
Effect of exchange fluctuations on cash held 100 1 6,100 (4,764)
Cash and cash equivalents at March 31 ₨ 1,415,291 $ 18,774 ₨ 694,772 ₨ 166,584
v3.20.2
Reporting entity
12 Months Ended
Mar. 31, 2020
Disclosure of reporting entity [Abstract]  
Disclosure of reporting entity [text block]
1.
Reporting entity
 
Sify Technologies Limited (‘Sify’ or ‘the Company’) is a Company domiciled in India. The address of the Company’s registered office is 2nd Floor, TIDEL Park, 4, Rajiv Gandhi Salai, Taramani, Chennai – 600113, India. The Company and its subsidiaries Sify Technologies (Singapore) Pte. Limited, Sify Technologies North America Corporation, Sify Data and Managed Services Limited and Sify Infinit Spaces Limited (are together referred to as the ‘Group’ and individually as ‘Group entities’). The Group offers converged ICT solutions comprising Network-centric services, Data Center-centric IT services which includes Data Center services, cloud and managed services, applications integration services and technology integration services. The Company was incorporated on December 12, 1995 and is listed on the NASDAQ Capital Market. The financial statements are for the Group consisting of Sify Technologies Limited (the 'Company') and its subsidiaries.
v3.20.2
Basis of preparation
12 Months Ended
Mar. 31, 2020
Disclosure of Basis of preparation [Abstract]  
Disclosure of basis of preparation of financial statements [text block]
2.
Basis of preparation
 
a.
Statement of compliance
 
The accompanying Consolidated Financial Statements of the Group have been prepared in accordance with the International Financial Reporting Standards (IFRS) and its interpretations as issued by the International Accounting Standards Board (IASB).
 
These Consolidated Financial Statements have been approved for issue by the Board of Directors on July 27, 2020
 
b.
Basis of measurement
 
These Consolidated Financial Statements have been prepared on the historical cost basis except for the following:
 
·
Derivative financial instruments are measured at fair value
·
Financial instruments at fair value through profit or loss are measured at fair value.
·
Financial assets at fair value through other comprehensive income are measured at fair value
·
Share-based payments
·
The defined benefit asset is recognized as the net total of the plan assets, plus unrecognized past service cost and unrecognized actuarial losses, less unrecognized actuarial gains and the present value of the defined benefit obligation.
·
In relation to lease prepayments, the initial fair value of the security deposit is estimated as the present value of the refundable amount, discounted using the market interest rates for similar instruments. The difference between the initial fair value and the refundable amount of the deposit is recognized as a Right of Use Asset
 and present value of lease liability
 
The above items have been measured at fair value and the methods used to measure fair values are discussed further in Note 4.
 
c.
Functional and presentation currency
 
Items included in the financial statements of each Group entity are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). Indian rupee is the functional currency of Sify, its domestic subsidiaries. The U.S. dollar is the functional currency of Sify’s foreign subsidiaries located in Singapore and the US.
 
The Consolidated Financial Statements are presented in Indian Rupees which is the Group’s presentation currency. All financial information presented in Indian Rupees has been rounded up to the nearest thousand except where otherwise indicated.
 
Convenience translation (unaudited):
Solely for the convenience of the reader, the financial statements as of and for the year ended March 31, 2020 have been translated into United States dollars (neither the presentation currency nor the functional currency of the Group) based on the reference rate in the City of Mumbai on March 31, 2020, for cable transfers in Indian rupees as published by the Reserve Bank of India which was ₹ 75.386 per $1.00. No representation is made that the Indian rupee amounts have been, could have been or could be converted into United States dollar at such a rate or at any other rate on March 31, 2020 or at any other date.
 
d.
Use of estimates and judgments
 
The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.
 
Application of accounting policies that require critical accounting estimates, judgments and assumptions having the most significant effect on the amounts recognized in the financial statements are
:
 
·
Useful lives of property, plant and equipment (Note 3 e and Note 5)
·
Useful lives of intangible assets (Note 3 g and Note 6)
·
Estimate of Lease term and measurement of Right of Use Assets and Lease Liabilities (Note 3 h, 7, 9)
·
Identification of performance obligation and timing of satisfaction of performance obligation, measurement of transaction price on revenue recognition (Note 3 o)
·
Measurement of the recoverable amounts of cash-generating units containing goodwill (Note 3 k and Note 6)
·
Utilization of tax losses and computation of deferred taxes (Note 3 r, 11)
·
Measurement of defined employee benefit obligations (Note 17)
·
Measurement of share-based payments (Note 3 m, 27)
·
Valuation of financial instruments (Note 3 c, 4, 34 and 35)
·
Provisions and contingencies (Note 3 n and 31)
·
Expected Credit losses on Financial Assets (Note 3 c, 13)
 
Estimation uncertainty relating to global health pandemic on COVID-19
 
Recoverability of receivables, contract assets and contract costs, carrying amount of Property, Plant and Equipment and certain investments have all been assessed based on the information available within the company and external sources such as credit reports and economic forecasts. The company has performed impairment testing and assessed that the carrying amount of these assets will be recovered. The impact of global health pandemic may be different from the date of approval of Financial Statements.
 
The company has assessed the external environment, short term and long term liquidity position, company's mitigative actions regarding material uncertainties related to global health pandemic on COVID-19 and the company expects these uncertainties do not cast significant doubt upon the ability of the company to continue as going concern.
v3.20.2
Significant accounting policies
12 Months Ended
Mar. 31, 2020
Disclosure of Significant accounting policies [Abstract]  
Disclosure of significant accounting policies [text block]
3.
Significant accounting policies
 
The accounting policies set out below have been applied consistently to all periods presented in these Consolidated Financial Statements
 
a.
Basis of consolidation
 
The financial statements of the Group companies are consolidated on a line-by-line basis. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated. These financial statements are prepared by applying uniform accounting policies in use at the Group.
 
Subsidiaries are entities controlled by the Company. Control exists when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Thus, the Company controls an investee if and only if the Company has all the following: 
- power over the investee;
- exposure, or rights, to variable returns from its involvement with the investee; and
- the ability to use its power over the investee to affect the amount of the Company’s returns.
 
Generally, there is a presumption that majority of voting rights results in control. To support this presumption and when the Group has less than a majority of voting of similar rights of an investee, the group considers all relevant facts and circumstances in assessing whether it has power over an investee.
 
The financial statements of subsidiaries are consolidated from the date that control commences until the date that control ceases. The accounting policies of subsidiaries have been changed where necessary to align them with the policies adopted by the Group.
 
b.
Foreign currency
 
(i) Foreign currency transactions and balances
 
Transactions in foreign currencies are initially recognized in the financial statements using exchange rates prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the relevant functional currency at the exchange rates prevailing at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Foreign currency differences arising on translation are recognized in the income statement for determination of net profit or loss during the period.
 
 
(ii) Foreign operations
 
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to the functional currency at exchange rates at the reporting date. The income and expenses of foreign operations and cash flows are translated to Indian Rupees using average exchange rates during the period. Any differences arising on such translation are recognized in other comprehensive income. Such differences are included in the foreign currency translation reserve “FCTR” within other components of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the FCTR is transferred to profit or loss.
 
c.
Financial instruments
 
(i) Financial Assets
 
Financial assets comprise of investments in equity and debt securities, trade and other receivables, cash and cash equivalents and other financial assets.
 
Initial recognition:
 
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
 
Subsequent measurement:
 
Financial assets measured at amortized cost:
Financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are measured at amortised cost using effective interest rate (EIR) method. The EIR amortisation is recognized as finance income in the Statement of Income.
 
The Group while applying above criteria has classified the following financial assets at amortised cost 
- Trade receivables
- Other financial assets.
- Investment in debt securities
 
Financial assets at fair value through other comprehensive income (FVTOCI):
Financial assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding are subsequently measured at FVTOCI. Fair value movements in financial assets at FVTOCI are recognized in other comprehensive income.
 
Equity instruments held for trading are classified as at fair value through profit or loss (FVTPL). For other equity instruments the Group classifies the same as at FVTOCI. The classification is made on initial recognition and is irrevocable. Fair value changes on equity investments at FVTOCI, excluding dividends, are recognized in other comprehensive income (OCI).
 
Financial assets at fair value through profit or loss (FVTPL):
Financial asset are measured at fair value through profit or loss if it does not meet the criteria for classification as measured at amortised cost or at fair value through other comprehensive income. All fair value changes are recognized in the Statement of Income.
 
Derecognition of financial assets:
Financial assets are derecognized when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred and the transfer qualifies for derecognition. On derecognition of a financial asset in its entirety, the difference between the carrying amount (measured at the date of derecognition) and the consideration received (including any new asset obtained less any new liability assumed) shall be recognized in the Statement of Income.
 
 
Impairment of financial assets:
 
Trade receivables, contract assets, lease receivables under IFRS 9, investments in debt instruments that are carried at amortised cost, investments in debt instruments that are carried at FVTOCI are tested for impairment based on the expected credit losses for the respective financial asset.
 
Trade receivables
An impairment analysis is performed at each reporting date. The expected credit losses over lifetime of the asset are estimated by adopting the simplified approach using a provision matrix which is based on historical loss rates reflecting current condition and forecasts of future economic conditions. In this approach assets are grouped on the basis of similar credit characteristics such as industry, customer segment and other factors which are relevant to estimate the expected cash loss from these assets.
 
Other financial assets
Other financial assets are tested for impairment based on significant change in credit risk since initial recognition and impairment is measured based on probability of default over the lifetime when there is significant increase in credit risk.
 
(ii) Financial liabilities
 
Financial liabilities are initially recognized at fair value and any transaction cost that are attributable to the acquisition of the financial liabilities except financial liabilities at fair value through profit or loss which are initially measured at fair value.
 
Subsequent measurement:
 
The financial liabilities are classified for subsequent measurement into following categories:
- at amortised cost
- at fair value through profit or loss
 
Financial liabilities at amortised cost
The Group is classifying the following financial liabilities at amortised cost;
a) Borrowings
b) Finance lease obligations
c) Trade and other payables
d) Other financial liabilities
 
Amortised cost for financial liabilities represents amount at which financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount.
 
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading are measured at FVTPL.
 
Derecognition of financial liabilities:
 
A financial liability shall be derecognized when, and only when, it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or expires.
 
(iii) Derivative financial instruments
 
Foreign exchange forward contracts and options are entered into by the Group to mitigate the risk of changes in foreign exchange rates associated with certain payables, receivables and forecasted transactions denominated in certain foreign currencies. The group also enters into cross currency interest rate swaps for hedging the risk against variability in cash flows of its term loan.
 
These derivative contracts do not qualify for hedge accounting under IFRS 9 and are initially recognized at fair value on the date the contract is entered into and subsequently re-measured at their fair value. Gains or losses arising from changes in the fair value of the derivative contracts are recognized immediately in profit or loss.
 
(iv) Offsetting of Financial Assets and Financial Liabilities
 
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.
 
(v) Reclassification of financial assets
 
The Group determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are categorised as equity instruments at FVTOCI and financial assets or liabilities that are specifically designated as FVTPL. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be very infrequent. The management determines change in the business model as a result of external or internal changes which are significant to the Group’s operations. A change in the business model occurs when the Group either begins or ceases to perform an activity that is significant to its operations. If the Group reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Group does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.
 
d.
Share capital
 
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or share options are recognized as a deduction from equity, net of any tax effects.
 
e.
Property, plant and equipment
 
Property, plant and equipment is stated at cost less accumulated depreciation and where applicable accumulated impairment losses. Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchases taxes, after deducting trade discounts and rebates and includes expenditure directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials, direct labor and any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment.
 
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
 
Interest cost incurred for constructed assets is capitalized up to the date the asset is ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average rate of all other borrowings, if no specific borrowings have been incurred for the asset.
 
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within “other income / other expenses” in statement of income.
 
The cost of assets not put to use as on balance sheet date are disclosed under Construction-in-progress.
 
(i) Subsequent costs
 
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of the replaced part is de-recognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in statement of income during the period in which it is incurred.
 
(ii) Depreciation
 
Depreciation is recognized in the consolidated statement of income on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Management’s estimated useful lives for the years ended March 31, 2020, 2019 and 2018 were as follows:
 
 Estimate of  useful life
in years
Buildings28
Plant and machinery comprising computers, servers etc.3 – 5
Plant and machinery comprising other items8
Furniture and fittings5
Office equipment5
Motor vehicles3
 
Depreciation is not recorded on construction-in-progress until construction and installation are complete and the asset is ready for its intended use.
 
The depreciation method, useful lives and residual value are reviewed at each of the reporting date
 
f.
Business combinations
 
(i) Business combinations
 
Business combinations are accounted for using IFRS 3 (Revised), Business Combinations. IFRS 3 requires the identifiable intangible assets and contingent consideration to be fair valued in order to ascertain the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. Significant estimates are required to be made in determining the value of contingent consideration and intangible assets. These valuations are conducted by independent valuation experts.
 
Business combinations have been accounted for using the acquisition method under the provisions of IFRS 3(Revised). The cost of acquisition is measured at the fair value of the assets transferred, equity instruments issued and liabilities incurred or assumed at the date of acquisition. The cost of acquisition also includes the fair value of any contingent consideration. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition.
 
Transactions costs that the group incurs in connection with a business combination such as finder’s fees, legal fees, due diligence fees, and other professional and consulting fees are expensed as incurred.
 
The acquisition of an asset or a group of assets that does not constitute a ‘business’ as per IFRS 3 is accounted for by identifying and recognizing the individual identifiable assets acquired and liabilities assumed. The cost of the group is allocated to such individual identifiable assets and liabilities on the basis of their relative fair values on the date of purchase.
 
(ii) Goodwill
 
Goodwill represents the cost of a business acquisition in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. When the excess is negative (negative goodwill), the Group reassesses the identification and measurement of identifiable assets, liabilities and contingent liabilities, and the measurement of the cost of acquisition, and recognizes any remaining excess in profit or loss immediately on acquisition.
 
 
Subsequent measurement
 
Goodwill is measured at cost less accumulated impairment losses.
 
g. Other intangible assets
 
Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the intangible asset.
 
(i) Subsequent expenditure
 
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, are recognized in profit or loss as incurred.
 
(ii) Amortization of intangible assets with finite useful lives
 
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and previous year are as follows:
 
 Estimate of useful life in
years
Software1 – 3
Undersea cable capacity12
Other Intangibles3  -  5
 
Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
 
h.
Leases
 
The Group as a lessee
 
The Group’s lease asset classes primarily consist of leases for land and buildings. The group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the group assesses whether: (1) the contract involves the use of an identified asset (2) the group has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the group has the right to direct the use of the asset.
 
At the date of commencement of the lease, the Group recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
 
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
 
The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.
 
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets.
  
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the group changes its assessment if whether it will exercise an extension or a termination option.
 
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
 
The Group as a lessor
 
Leases for which the group is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
 
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.
 
For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.
 
i.
Inventories
 
Inventories comprising traded hardware and software are measured at the lower of cost (determined using first-in first-out method) and net realizable value. Cost comprises cost of purchase and all directly attributable costs incurred in bringing the inventories to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
 
j. Contract assets/liability
 
Contract Assets (Unbilled revenue) represents revenue in excess of billing. Contract Liability (Deferred income) represents unserviced portion of billed contracts.
 
k. Impairment of non-financial assets
 
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill, the recoverable amount is estimated each year at December 31.
 
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).
 
The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-generating units that are expected to benefit from the synergies of the combination. Corporate assets for the purpose of impairment testing are allocated to the cash generating units on a reasonable and consistent basis.
 
An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit or group of units on a
pro rata basis.
 
Reversal of impairment loss
 
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized directly in other comprehensive income and presented within equity.
 
l. Employee benefits
 
Employee benefits are accrued in the period in which the associated services are rendered by employees of the Group, as detailed below:
 
(a)
Defined contribution plan (Provident fund)
 
Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods. The Group makes specified monthly contribution towards Government administered provident fund scheme. The Group also contributes to 401(K) plan on behalf of eligible employees. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in profit and loss in the periods during which the related services are rendered by employees.
 
(b)
Defined benefit plans (Gratuity)
 
In accordance with applicable Indian laws, the Group provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Group. The gratuity fund is managed by the Life Insurance Corporation of India (LIC). The Group's net obligation in respect of defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting any unrecognized past service cost and the fair value of any plan assets.
 
The discount rate is the yield at the reporting date on risk free government bonds that have maturity dates approximating the terms of the Group’s obligations. The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Group, the recognized asset is limited to the total of any unrecognized past service costs and the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan.
 
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest), are recognized in other comprehensive income and presented within equity. Remeasurements are not reclassified to profit or loss in subsequent periods. Service costs, net interest expenses and other expenses related to defined benefit plans are recognized in profit or loss.
 
(c)
Short term benefits
 
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
 
(d)
Compensated leave of absence
 
The employees of the Group are entitled to compensated absence. The employees can carry forward a portion of the unutilized accrued absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The Group recognizes an obligation for compensated absences in the period in which the employee renders the services. The Group provides for the expected cost of compensated absence in the Statement of Income as the additional amount that the Group expects to pay as a result of the unused entitlement that has accumulated based on actuarial valuations carried out by an independent actuary at the balance sheet date.
 
m.
Share-based payment transactions
 
The fair value of options on grant date, (equity-settled share based payments) granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period in which the options are vested. The increase in equity recognized in connection with a share based payment transaction is presented as a separate component in equity. The amount recognized as an expense is adjusted to reflect the actual number of share options that vest. In respect of options whose terms and conditions are modified, the Group includes the incremental fair value of the options in the measurement of the amounts recognized for services received from the employees. The incremental fair value is the difference between the fair value of the modified option and that of the original option both estimated as at the date of the modification. If the modification occurs during the vesting period, the incremental fair value granted is included in the measurement of the amount recognized for services received over the period from the modification date until the date when the modified equity instruments vest, in addition to the amount based on the grant date fair value of the original equity instruments, which is recognized over the remainder of the original vesting period. If the modification occurs after vesting date, the incremental fair value granted is recognized immediately, or over the vesting period if the employee is required to complete an additional period of service before becoming unconditionally entitled to those modified equity instruments.
 
n.
Provisions
 
Provisions are recognized if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
 
A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognizes any impairment loss on the assets associated with that contract.
 
o.
Revenue Recognition
 
The Group derives revenue from converged ICT solutions comprising Network-centric services, Data Center-centric IT services which includes Data Center services, cloud and managed services, applications integration services and technology integration services.
 
The Group has adopted IFRS 15 Revenue from Contracts with Customers with effect from April 1, 2018 by using the cumulative effect transition method and accordingly comparatives have not been retrospectively adjusted. The effect on adoption of IFRS 15 on initial application of Rs. 38,215 has been adjusted in the opening retained earnings.
 
The Group recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services excluding the amount collected on behalf of third parties. Refer note 3(o) Significant accounting policies in the 2018 Annual Report in Form 20F for the previous revenue recognition policies.
The revenue recognition in respect of the various streams of revenue is described as follows
 
(i)
Network services
*
 
Revenue from Network services includes Data network services and Voice services. Network services primarily include revenue from connectivity services, NLD/ILD services and to a lesser extent, revenues from the setup and installation of connectivity links. The group provides connectivity for a fixed period of time at a fixed rate regardless of usage. Revenue from Network services are series of distinct services. The performance obligations are satisfied overtime.
 
Service revenue is recognized when services are provided, based upon period of time. The setup and installation of connectivity links are deferred and recognized over the associated contract period.
 
Sale of equipment are accounted as separate performance obligations if they are distinct and its related revenues are recognized at a point in time when the control is passed on to the customer.
 
The Group provides NLD (National Long Distance) and ILD (International Long Distance) services through Group’s network. The Group carries voice traffic, both national and international, using the network back-bone and delivers voice traffic to Inter-connect
 
Operators. Revenue is recognized when the services are provided based upon the usage (eg: metered call units of voice traffic terminated on the Group’s network).
* The word telecom was largely understood as providing telecommunication services to consumers and also mobility services. Since the company services were not relating to either consumer services or mobility services and that company services were limited to enterprise data network, and services on the data network that spawns multiple services relating to Network Connectivity, the said Telecom services will henceforth be referred for appropriate representation of the substance, as Network services and all businesses dependent on the Network infrastructure will be collectively referred to as Network Centric Services
 
(ii)
Data Center Services:
 
Revenue from DC services consists co-location of racks and power charges. The contracts are mainly for a fixed rate for a period of time. Revenue from co-location of racks, power charges and cross connect charges are series of distinct services. The performance obligations are satisfied overtime. Service revenue is recognized as the related services are performed. Sale of equipment such as
 
servers, switches, networking equipment, cable infrastructure and racks etc are accounted as separate performance obligations if they are distinct and its related revenues are recognized at a point in time when the control is passed on to the customer.
 
(iii)
Cloud and Managed Services:
 
Revenue from Cloud and managed services include revenue from Cloud and storage solutions, managed services, value added services, domestic and International managed services.
 
Revenues from Cloud and on demand compute and storage, are primarily fixed for a period of time. Revenue from Cloud and managed services are series of distinct services. The performance obligations are satisfied overtime. The group recognize service revenue as the related services are performed.
 
Revenues from domestic and international managed services, comprise of value added services, operations and maintenance of projects and from remote infrastructure management. Contracts from this segment are fixed and could also be based on time and material contracts.
 
In the case of time and material contracts, the group recognizes service revenue as the related services are performed.
 
In the case of fixed price contract, the group recognize revenue over a period of time based on progress towards completion of performance obligation using efforts or cost to cost measure of progress (percentage completion method of accounting).
 
The stage of completion is measured by efforts spent to estimated total efforts over the term of the contract.
 
(iv)
Technology Integration Services:
 
Revenue from Technology Integration Services include system integration Services, revenue from construction of Data Centers, network services, security solutions and to a lesser extent, revenue from sale of hardware and software.
 
Revenue from construction contract includes revenue from construction of Data Centers to the specific needs and design of the customer. The Group recognize revenue at point in time, when the customer does not take control of work-in-progress or over a period of time when the customer controls the work-in-progress. In the case where revenue is recognized over a period of time and progress is measured based on the costs incurred to date as a percentage of the total estimated costs to fulfill the contract.
 
If the Group does not have a sufficient basis to measure the progress of completion or to estimate the total contract revenues and costs, revenue is recognized only to the extent of contract cost incurred for which recoverability is probable.
  
When total cost estimates exceed revenues in an arrangement, the estimated losses are recognized in the statement of Income in the period in which such losses become probable based on the current contract estimates.
 
(v)
Applications Integration Services:
 
Revenue from Applications Integration services include online assessment, document management services, web development, digital certificate based authentication services, supply chain software and eLearning software development services. eLearning software development services consist of structuring of content, developing modules, delivery and training users in the modules developed.
 
Revenue from Applications Integration Services is recognized over a period of time. The progress is measured based on the amount of time/effort spent on a project. Revenue in relation to ‘time’ is measured as the agreed rate per unit of time multiplied by the units of time expended. The element of revenue related to materials is measured in accordance with the terms of the contract.
 
The Group enters into contracts with customers to serve advertisements in the portal and the Group is paid on the basis of impressions, click-throughs or leads and in each case the revenue is recognized ratably over the period of the contract based upon the usage (i.e on actual impressions/click throughs / leads delivered.)
 
Revenue from commissions earned on electronic commerce transactions are recognized when the transactions are completed.
 
Digital Certification revenues include income received on account of Web certification. Generally the Group does not hold after sale service commitments after the activation of the Digital Certificates sold and accordingly, revenue is recognized fully on the date of activation of the respective certificate.
 
Multiple deliverable arrangements
 
In certain cases, some elements belonging to the services mentioned above are sold as a package consisting of all or some of the elements.
 
The Group accounts for goods or services of the package separately if they are distinct. i.e if a good or service is separately identifiable from other promises in the contract and if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer.
 
The Group allocate the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis. Standalone selling price is the price at which group would sell a promised good or service separately to the customer.
 
If the relative stand-alone selling prices are not available, the group estimates the same. In doing so, the group maximise the use of observable inputs and apply estimation methods consistently in similar circumstances.
 
Contract Cost
 
Costs to fulfil customer contracts i.e the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify or the costs generate/ enhance resources of the group that will be used in satisfying (or in continuing to satisfy) performance obligations in the future or the costs that are expected to be recovered are recognized as asset and amortized over the contract period.
 
Incremental costs of obtaining a contract are recognized as assets and amortized over the contract period if entity expects to recover those costs. The Group recognize incremental cost of obtaining a contract as an expense when incurred if the amortisation period of the asset that the entity otherwise would have recognized is one year or less.
 
Costs to obtain a contract that is incurred regardless of whether the contract is obtained are recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.
 
 
Significant judgments on applying IFRS 15
 
The group contracts with customer include promises or arrangements to transfer multiple goods or services to a customer. The group assess whether such arrangements in the contract has distinct goods or services (performance obligation). Identification of distinct performance obligation involves judgment to determine ability of customer to benefit independently from other promises in the contract.
 
The judgment is required to measure the transaction price for the contract. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration could be fixed amount or variable amount or could be both. Transaction price could also be adjusted for time value of money if contract includes a significant financing component.
 
In the case of multiple arrangements in a contract, the group allocate transaction price to each performance obligation based on standalone transaction price. The determination of standalone transaction price involves judgment.
 
The group uses judgment in determining timing of satisfaction of performance obligation. The group considers how customer benefits from goods or services as the services are rendered, who controls as the assets is created or enhanced, whether asset has an alternate use and the entity has an enforceable right to payment for performance completed to date, transfer of significant risk and reward to the customer, acceptance or sign off from the customer etc.,
 
The group uses judgement when capitalising the contract cost as to whether it generates or enhances resources of the entity that will be used in satisfying performance obligation in the future.
 
p.
Finance income
 
Finance income comprises interest income on funds invested, dividend income and gains on the disposal of financial assets at fair value through profit or loss. Interest income is recognized as it accrues in profit or loss, using the effective interest method. Dividend income is recognized in profit or loss on the date when the Group’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.
 
q.
Finance expense
 
Finance expense comprises borrowing costs, bank charges, unwinding of discount on provision, fair value losses on financial assets at fair value through profit or loss that are recognized in Statement of Income. Fair value changes attributable to hedged risk are recognized in the Statement of Income.
 
Borrowing costs
Borrowing costs are interest and other costs (including exchange difference relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Interest expense is recognized using effective interest method.
 
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. Other borrowing costs are recognized as expenses in the period in which they are incurred. To the extent the Group borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowings costs eligible for capitalization by applying a capitalization rate to the expenditure incurred on such asset. The capitalization rate is determined based on the weighted average of borrowing costs applicable to the borrowings of the Group which are outstanding during the period, other than borrowings made specifically towards purchase of the qualifying asset. The amount of borrowing costs that the Group capitalizes during a period does not exceed the amount of borrowing costs incurred during that period.
 
r.
Income taxes
 
Income tax expense comprises current and deferred tax. Income tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in equity or in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date. Minimum Alternate Tax (MAT) is accounted as current tax when the Company is subjected to such provisions of the Income Tax Act. However, credit of such MAT paid is available when the Company is subjected to tax as per normal provisions in the future. Credit on account of MAT is recognized as a deferred tax asset based on the management’s estimate of its recoverability in the future.
 
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss and differences relating to investments in subsidiaries and associates to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill, as the same is not deductible for tax purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
 
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
 
Deferred taxation arising on investments in subsidiaries and associates is recognized except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred taxation arising on the temporary differences arising out of undistributed earnings of the equity method accounted investee is recorded based on the management's intention. If the intention is to realize the undistributed earnings through sale, deferred tax is measured at the capital gains tax rates that are expected to be applied to temporary differences when they reverse. However, when the intention is to realize the undistributed earnings through dividend, the Group’s share of the income and expenses of the equity method accounted investee is recorded in the statement of income, after considering any taxes on dividend payable by the equity method accounted investee.
 
s.
Earnings per share
 
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Where ordinary shares are issued but not fully paid, they are treated in the calculation of basic earnings per share as a fraction of an ordinary share to the extent that they were entitled to participate in dividends during the period relative to a fully paid ordinary share. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which includes share options granted to employees. To the extent that partly paid shares are not entitled to participate in dividends during the period they are treated as the equivalent of warrants or options in the calculation of diluted earnings per share.
 
t.
Dividend distribution to equity shareholders
 
Dividend distributed to Equity shareholders is recognized as distribution to owners of capital in the Statement of Changes in Equity, in the period in which it is paid.
 
u
.
Current/ non-current classification
 
An asset is classified as current if:
(a) it is expected to be realized or sold or consumed in the Group's normal operating cycle;
(b) it is held primarily for the purpose of trading;
(c) it is expected to be realized within twelve months after the reporting period; or
(d) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
 
All other assets are classified as non-current.
  
A liability is classified as current if:
(a) it is expected to be settled in normal operating cycle;
(b) it is held primarily for the purpose of trading;
(c) it is expected to be settled within twelve months after the reporting period;
(d) it has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
 
The operating cycle is the time between acquisition of assets for processing and their realisation in cash and cash equivalents. The Group's normal operating cycle is twelve months.
 
v
.
Recent accounting pronouncements
 
(i)
New and amended Standards adopted by the Group
 
Except for the changes mentioned below, the Group has consistently applied the accounting policies to all the periods
 
a) IFRS 16 – Leases
 
Effective April 1, 2019, the Group adopted IFRS 16 “Leases” and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method. Consequently, the group recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the right of use asset at an amount equal to the lease liability adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the balance sheet immediately before the date of Initial application. Comparatives as at and for the year ended March 31, 2019 have not been retrospectively adjusted and therefore will continue to be reported under the accounting policies included as part of our Annual Report for year ended March 31, 2019
 
On transition, the adoption of the new standard resulted in recognition of “Right of Use” asset of ₹3,997 Million, and a lease liability of ₹1,787 Million. The effect of this adoption is insignificant on the operating profit, net profit for the period and earnings per share. IFRS 16 will result in an increase in cash inflows from operating activities and an increase in cash outflows from financing activities on account of lease payments.
 
The weighted average incremental borrowing rate applied to lease liabilities as at April 1, 2019 is 9.5%
 
The following is the summary of practical expedients elected on initial application:
1. Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date
2. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application
3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
4. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, IFRS 16 is applied only to contracts that were previously identified as leases under IAS 17.
 
The company recognized depreciation on "Right of Use" assets of ₹468.7 Million and interest from lease liabilities of ₹171.8 Million during the period
 
Detailed information given in Right of Use Assets Note.
 
The difference between the lease obligation disclosed as of March 31, 2019 under IAS 17 and the value of the lease liabilities as of April 1, 2019 is primarily on account of practical expedients exercised for low value assets and short term leases, inclusion of extension and termination options reasonably certain to be exercised, in measuring the lease liability in accordance with IFRS 16 and discounting the lease liabilities to the present value under IFRS 16
 
 
b)
IAS 12 - Income Taxes
 
IFRIC 23 on Uncertainty over Income tax treatments is effective from April 1, 2019. IFRIC 23 to Income Taxes clarifies the accounting for uncertainties in income taxes. The appendix is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. The adoption of this appendix did not have any material impact on the consolidated financial statement of the company.
 
Additionally, there were amendment to IAS 12. The amendments clarify that an entity shall recognize the income tax consequences of dividends on financial instruments classified as equity should be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits were recognized. The adoption of amendment to IAS 12 did not have any impact on consolidated financial statements of the Company
 
c)
IAS 19 - Employee Benefits
 
Amendments to IAS 19, ‘Employee Benefits’ we issued, in connection with accounting for plan amendments, curtailments and settlements requiring an entity to determine the current service costs and the net interest for the period after the remeasurement using the assumptions used for the remeasurement; and determine the net interest for the remaining period based on the remeasured net defined benefit liability or asset. The adoption of amendment to IAS 19 did not have any material impact on consolidated financial statements of the Company.
 
(ii)
New and amended Standards issued but not yet effective
 
Amendment to IFRS 3 - Business combination
 
On October 22, 2018, the IASB issued amendments to IFRS 3, ‘Business Combinations’, in connection with clarification of business definition, which help in determining whether an acquisition made is of a business or a group of assets. The amendment added a test that makes it easier to conclude that a company has acquired a group of assets, rather than a business, if the value of the assets acquired is substantially all concentrated in a single asset or a group of similar assets. These amendments are effective for annual reporting periods beginning on or after January 1, 2020, with earlier application permitted. The adoption of amendment to IFRS 3 is not expected to have any impact on the consolidated financial statements of the Company.
 
Amendment to IFRS 9, IAS 39 and IFRS 7 – Interest Rate Benchmark Reform
 
On September 26, 2019, the IASB amended some of its requirements for hedge accounting. The amendments provide relief from potential effects of the uncertainty caused by the IBOR reform. In addition, the amendments require companies to provide additional information to investors about their hedging relationships that are directly affected by these uncertainties. These amendments are effective for annual reporting periods beginning on or after January 1, 2020, with earlier application permitted. The Company does not expect the amendment to have any significant impact on its consolidated financial statements.
 
Amendment to IAS 1 and IAS 8 – Definition of Material
 
On October 30, 2018, the IASB issued Amendment to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to update a new definition of material in IAS 1. The amendments clarify the definition of “material” and how it should be applied by including in the definition guidance that until now has featured elsewhere in IFRS Standards. The new definition clarifies that, information is considered material if omitting, misstating, or obscuring such information, could reasonably be expected to influence the decisions that the primary users of general-purpose financial statements make on the basis of those financial statements. The definition of material in IAS 8 has been replaced by a reference to the definition of material in IAS 1. In addition, the IASB amended other Standards and the Conceptual Framework that contain a definition of material or refer to the term ‘material’ to ensure consistency. These amendments are effective prospectively for annual reporting periods beginning on or after January 1, 2020, with earlier application permitted. The Company does not expect the amendment to have any material impact on its evaluation of materiality in relation to its consolidated financial statements.
 
Amendment to IAS 1 – Presentation of Financial Statements
 
On January 23, 2020, the IASB has issued “Classification of liabilities as Current or Non-Current (Amendments to IAS 1)” providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangement in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies to determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments also clarified the classification requirements for debt a company might settle by converting it into equity. These amendments are effective for annual reporting periods beginning on or after January 1, 2022 and are to be applied retrospectively, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 1 on its consolidated financial statements.
  
Amendment to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract
 
On May 14, 2020, the IASB issued “Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37)”, amending the standard regarding costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous. The amendment specifies that the “cost of fulfilling” a contract comprises the “costs that relate directly to the contract”. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. These amendments are effective for annual reporting periods beginning on or after January 1, 2022, with earlier application is permitted. The Company is currently evaluating the impact of amendment to IAS 37 on its consolidated financial statements.
 
Amendment to IFRS 16 – Leases
 
On May 15, 2020, the IASB issued amendments to IFRS 16, “Leases”, provide lessees with an exemption from assessing whether a Covid-19-related rent concession is a lease modification. The amendments allowed the expedient to be applied to Covid-19-related rent concessions to payments originally due on or before 30 June 2021 and also require disclosure of the amount recognized in profit or loss to reflect changes in lease payments that arise from Covid-19-related rent concessions. The reporting period in which a lessee first applies the amendment, it is not required to disclose certain quantitative information required under IAS 8. These amendments are effective for periods beginning on or after June 1, 2020, with earlier application is permitted. The Company is currently evaluating the impact of amendment to IFRS 16 on its consolidated financial statements.
v3.20.2
Determination of fair values
12 Months Ended
Mar. 31, 2020
Disclosure of Determination of fair values [Abstract]  
Disclosure of fair value measurement [text block]
4.
Determination of fair values
 
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal market or the most advantageous market must be accessible to the Group.
 
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
 
A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
 
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
 
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as below:
 
Level 1 - unadjusted quoted prices in active markets for identical assets and liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 - unobservable inputs for the asset or liability.
 
For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation at the end of each reporting period.
 
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of fair value hierarchy.
 
Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
 
(i)
Property, plant and equipment
The fair value of property, plant and equipment recognized as a result of a business combination is an estimated amount for which a property could be exchanged on the date of acquisition in an orderly transaction between market participants. The fair value of items of plant, equipment, fixtures and fittings is based on the market approach and cost approach using quoted market prices for similar items when available and replacements costs when appropriate.
 
(ii)
Inventories
The fair value of inventories acquired in a business combination is determined based on the estimated selling price in the ordinary course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories.
 
(iii)
Intangible assets
The fair value of intangible assets acquired in the business combinations is based on discounted cash flows expected to be derived from the use and eventual sale of assets (terminal value).
 
(iv)
Investments in equity and debt securities
The fair value is determined by reference to their quoted price at the reporting date. In the absence of quoted price, the fair value of the financial asset is measured using valuation techniques.
 
(v)
Trade and other receivables
The fair value of trade and other receivables expected to be realized beyond twelve months, excluding construction contracts in progress, is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date. However in respect of such financial instruments, fair value generally approximates the carrying amount due to the short term nature of such assets. This fair value is determined for disclosure purposes or when acquired in a business combination.
 
(vi)
Derivatives
The fair value of forward exchange contracts is based on their quoted price, if available. If a quoted price is not available, the fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk free interest rate (based on government bonds). The fair value of foreign currency option contracts is determined based on the appropriate valuation techniques, considering the terms of the contract. Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group entity and the counter party when appropriate. The fair value of the cross currency swaps (principal only swaps) and interest rate swaps is determined based on the discounting of the future cash flows at the market rates existing on the reporting date.
 
(vii)
Non derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases, the market rate of interest is determined by reference to similar lease agreements.
 
(viii)
Share-based payment transactions
The fair value of employee stock options is measured using the Black-Scholes method. Measurement inputs include share price on grant date, exercise price of the instrument, expected volatility (based on weighted average historic volatility adjusted for changes expected due to publicly available information), expected term of the instrument (based on historical experience and general option holder behavior), expected dividends, and the risk free interest rate (based on government bonds).
v3.20.2
Property, plant and equipment
12 Months Ended
Mar. 31, 2020
Disclosure of property, plant and equipments [Abstract]  
Disclosure of property, plant and equipment [text block]
5.
Property, plant and equipment
 
The following table presents the changes in property, plant and equipment during the year ended March 31, 2020
 
 
 
Cost
 
 
Accumulated depreciation
 
 
Carrying
amount as at
March 31,
2020
 
Particulars
 
As at April
1, 2019
 
 
Adjustment
on
adoption
of IFRS
16
 
 
Additions
 
 
Disposals
 
 
As at Mar
31, 2020
 
 
As at April 1,
2019
 
 
Adjustment
on
adoption
of IFRS
16
 
 
Depreciation
for the
year
 
 
Deletions
 
 
As at Mar
31, 2020
 
 
 
 
Freehold Land
 
 
-
 
 
 
-
 
 
 
147,176
 
 
 
-
 
 
 
147,176
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
147,176
 
Building
 
 
2,437,687
 
 
 
291,146
 
 
 
2,249,209
 
 
 
-
 
 
 
4,395,750
 
 
 
723,160
 
 
 
128,759
 
 
 
96,544
 
 
 
-
 
 
 
690,945
 
 
 
3,704,805
 
Plant and machinery
 
 
13,944,419
 
 
 
2,538,826
 
 
 
2,111,324
 
 
 
90,315
 
 
 
13,426,602
 
 
 
9,817,005
 
 
 
2,244,694
 
 
 
961,273
 
 
 
68,950
 
 
 
8,464,634
 
 
 
4,961,967
 
Computer equipment
 
 
1,517,322
 
 
 
-
 
 
 
89,817
 
 
 
5,498
 
 
 
1,601,641
 
 
 
1,185,171
 
 
 
 
 
 
 
171,555
 
 
 
5,438
 
 
 
1,351,288
 
 
 
250,353
 
Office equipment
 
 
684,295
 
 
 
-
 
 
 
370,171
 
 
 
34
 
 
 
1,054,432
 
 
 
424,921
 
 
 
 
 
 
 
128,365
 
 
 
34
 
 
 
553,252
 
 
 
501,180
 
Furniture and fittings
 
 
1,388,063
 
 
 
-
 
 
 
1,151,198
 
 
 
73
 
 
 
2,539,188
 
 
 
983,366
 
 
 
 
 
 
 
225,414
 
 
 
73
 
 
 
1,208,707
 
 
 
1,330,481
 
Vehicles
 
 
9,656
 
 
 
-
 
 
 
65
 
 
 
-
 
 
 
9,721
 
 
 
8,456
 
 
 
 
 
 
 
1,219
 
 
 
-
 
 
 
9,675
 
 
 
46
 
Total
 
 
19,981,442
 
 
 
2,829,972
 
 
 
6,118,960
 
 
 
95,920
 
 
 
23,174,510
 
 
 
13,142,079
 
 
 
2,373,453
 
 
 
1,584,370
 
 
 
74,495
 
 
 
12,278,501
 
 
 
10,896,008
 
Add: Construction in progress
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
905,522
 
Total
 
 
19,981,442
 
 
 
2,829,972
 
 
 
6,118,960
 
 
 
95,920
 
 
 
23,174,510
 
 
 
13,142,079
 
 
 
2,373,453
 
 
 
1,584,370
 
 
 
74,495
 
 
 
12,278,501
 
 
 
11,801,530
 
 
The following table presents the changes in property, plant and equipment during the year ended March 31, 2019
 
 
 
Cost
 
 
Accumulated depreciation
 
 
Carrying
 
Particulars
 
As at
April 1,
2018
 
 
Additions
 
 
Disposals
 
 
As at
March 31,
2019
 
 
As at
April 1,
2018
 
 
Depreciation
for the year
 
 
Deletions
 
 
As at
March 31,
2019
 
 
amount as
at March
31, 2019
 
Building
 
 
2,301,987
 
 
 
135,700
 
 
 
-
 
 
 
2,437,687
 
 
 
639,622
 
 
 
83,538
 
 
 
-
 
 
 
723,160
 
 
 
1,714,527
 
Plant and machinery
 
 
12,293,776
 
 
 
1,723,910
 
 
 
73,267
 
 
 
13,944,419
 
 
 
9,017,370
 
 
 
872,318
 
 
 
72,683
 
 
 
9,817,005
 
 
 
4,127,414
 
Computer equipment
 
 
1,407,816
 
 
 
120,371
 
 
 
10,865
 
 
 
1,517,322
 
 
 
1,006,370
 
 
 
189,606
 
 
 
10,805
 
 
 
1,185,171
 
 
 
332,151
 
Office equipment
 
 
601,793
 
 
 
82,636
 
 
 
134
 
 
 
684,295
 
 
 
346,024
 
 
 
79,031
 
 
 
134
 
 
 
424,921
 
 
 
259,374
 
Furniture and fittings
 
 
1,250,834
 
 
 
146,401
 
 
 
9,172
 
 
 
1,388,063
 
 
 
864,935
 
 
 
127,603
 
 
 
9,172
 
 
 
983,366
 
 
 
404,697
 
Vehicles
 
 
9,656
 
 
 
-
 
 
 
-
 
 
 
9,656
 
 
 
6,056
 
 
 
2,400
 
 
 
-
 
 
 
8,456
 
 
 
1,200
 
Total
 
 
17,865,862
 
 
 
2,209,018
 
 
 
93,438
 
 
 
19,981,442
 
 
 
11,880,377
 
 
 
1,354,496
 
 
 
92,794
 
 
 
13,142,079
 
 
 
6,839,363
 
Add: Construction in progress
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,796,649
 
Total
 
 
17,865,862
 
 
 
2,209,018
 
 
 
93,438
 
 
 
19,981,442
 
 
 
11,880,377
 
 
 
1,354,496
 
 
 
92,794
 
 
 
13,142,079
 
 
 
8,636,012
 
 
The following table presents the changes in property, plant and equipment during the year ended March 31, 2018
 
 
 
Cost
 
 
Accumulated depreciation
 
 
 
 
Particulars
 
As at
April 1,
2017
 
 
Additions
 
 
Disposals
 
 
As at
March 31,
2018
 
 
As at
April 1,
2017
 
 
Depreciation
for the year
 
 
Deletions
 
 
As at
March 31,
2018
 
 
Carrying
amount as
at March
31, 2018
 
Building
 
 
2,301,987
 
 
 
-
 
 
 
-
 
 
 
2,301,987
 
 
 
557,439
 
 
 
82,183
 
 
 
-
 
 
 
639,622
 
 
 
1,662,365
 
Plant and machinery
 
 
11,585,120
 
 
 
795,351
 
 
 
86,695
 
 
 
12,293,776
 
 
 
7,864,346
 
 
 
1,174,083
 
 
 
21,059
 
 
 
9,017,370
 
 
 
3,276,406
 
Computer equipment
 
 
1,162,259
 
 
 
251,022
 
 
 
5,465
 
 
 
1,407,816
 
 
 
834,398
 
 
 
177,345
 
 
 
5,373
 
 
 
1,006,370
 
 
 
401,446
 
Office equipment
 
 
496,015
 
 
 
106,953
 
 
 
1,175
 
 
 
601,793
 
 
 
281,432
 
 
 
65,808
 
 
 
1,216
 
 
 
346,024
 
 
 
255,769
 
Furniture and fittings
 
 
1,093,544
 
 
 
157,940
 
 
 
650
 
 
 
1,250,834
 
 
 
753,209
 
 
 
112,623
 
 
 
897
 
 
 
864,935
 
 
 
385,899
 
Vehicles
 
 
9,656
 
 
 
-
 
 
 
-
 
 
 
9,656
 
 
 
3,656
 
 
 
2,400
 
 
 
-
 
 
 
6,056
 
 
 
3,600
 
Total
 
 
16,648,581
 
 
 
1,311,266
 
 
 
93,985
 
 
 
17,865,862
 
 
 
10,294,480
 
 
 
1,614,442
 
 
 
28,545
 
 
 
11,880,377
 
 
 
5,985,485
 
Add: Construction in progress
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,227,936
 
Total
 
 
16,648,581
 
 
 
1,311,266
 
 
 
93,985
 
 
 
17,865,862
 
 
 
10,294,480
 
 
 
1,614,442
 
 
 
28,545
 
 
 
11,880,377
 
 
 
7,213,421
 
 
Capital Commitments
As of March 31, 2020 and March 31, 2019, the Company had committed to spend approximately ₹ 6,140,770 and ₹ 3,157,693 respectively, under agreements to purchase property, plant and equipment.
 
Construction in progress
Amounts paid towards acquisition of property, plant and equipment outstanding at each balance sheet date and the cost of property, plant and equipment that are not ready to be put into use are disclosed under construction-in-progress.
 
Security
As at March 31, 2020 property, plant and equipment with a carrying amount of ₹ 10,888,446 (March 31, 2019: ₹ 6,375,273) are subject to a registered charge to secure bank borrowings.
v3.20.2
Intangible assets
12 Months Ended
Mar. 31, 2020
Disclosure Of Intangible Assets And Goodwill Explanatory [Abstract]  
Disclosure of intangible assets and goodwill [text block]
6.
Intangible assets
 
Intangible assets comprise the following:
 
 
 
March 31, 2020
 
 
March 31, 2019
 
 
March 31, 2018
 
Goodwill  14,595   14,595   14,595 
Other intangible assets  665,097   561,924   567,917 
 
 
 
679,692
 
 
 
576,519
 
 
 
582,512
 
 
(i) Goodwill
The following table presents the changes in goodwill during the years ended March 31, 2020 and 2019
 
 
 
March 31, 2020
 
 
March 31, 2019
 
Balance at the beginning of the year  14,595   14,595 
Effect of movement in exchange rates  -   - 
Impairment loss recognized during the year  -   - 
Net carrying amount of goodwill
 
 
14,595
 
 
 
14,595
 
 
 
The amount of goodwill as at March 31, 2020 and March 31, 2019 has been allocated to the Applications Integration Services segment.
 
(ii) Other intangibles
The following table presents the changes in intangible assets during the years ended March 31, 2020, 2019 and 2018.
 
 
 
Bandwidth
Capacity
 
 
Software
 
 
License fees
 
 
Total
 
(A) Cost
                
Balance as at March 31, 2017
 
 
642,391
 
 
 
691,898
 
 
 
73,000
 
 
 
1,407,289
 
Acquisitions during the year  -   163,505   -   163,505 
Disposals during the year
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Balance as at March 31, 2018
 
 
642,391
 
 
 
855,403
 
 
 
73,000
 
 
 
1,570,794
 
Acquisitions during the year  41,943   131,481   -   173,424 
Disposals during the year
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Balance as at March 31, 2019
 
 
684,334
 
 
 
986,884
 
 
 
73,000
 
 
 
1,744,218
 
Acquisitions during the year  52,054   283,844   5,000 
 
 
340,898
 
Disposals during the year
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Balance as at March 31, 2020
 
 
736,388
 
 
 
1,270,728
 
 
 
78,000
 
 
 
2,085,116