Professional Documents
Culture Documents
Notes
forming part of the Consolidated Financial Statements for the year ended 31st March, 2019
F) Acquisition of Controlling stake in Aditya Birla Renewables Limited (ABREL) and Aditya Birla
Solar Limited (ABSL) w.e.f. 15th May 2018 (Ind AS 103)
During the year, ABREL and ABSL has become subsidiary of the Company w.e.f. 15th May 2018 pursuant to the
acquisition of controlling stake in the said companies for a cash consideration of ` 34.37 Crore. ABREL and ABSL
were joint ventures between the Company and AEIF Mauritius SPV 2 Limited until 14th May 2018. Accordingly,
the Company has undertaken fair valuation of assets and liabilities of ABREL and ABSL on the acquisition date
as per Ind AS 103 - business combination for its consolidation in the Company books as disclosed below.
For the period ended 31st March 2019, the said business has contributed revenue of ` 69.11 Crore and profit before
tax of ` 11.56 Crore to the Group results. If the said arrangement had occurred on 1st April 2018, the consolidated
revenue and profit before tax for the year ended would have been, ` 75.50 Crore and ` 16.20 Crore, respectively
based on the amounts extrapolated by the management. In determining these amounts, the management has
assumed that the fair value adjustments, that arose on the date of arrangement have been the same as if the
arrangement occurred on 1st April 2018.
G) Acquisition of Grasim Premium Fabrics Private Limited (GPFPL) {earlier known as Soktas
(India) Private Limited} w.e.f. 29th March 2019 (Ind AS 103)
During the year, the Company has acquired 100% equity shareholding of GPFPL from its current promoters
SOKTAS Tekstil Sanayi Ve Ticaret A.S., Turkey for cash consideration of ` 135.40 Crore. Consequent to acquisition,
SIPL has become a wholly owned Subsidiary of the Company, w.e.f. 29th March’19. SIPL is in the business of
manufacturing and distribution of premium cotton fabrics with its manufacturing capacity located at Kolhapur,
Maharashtra having capacity of about 10 Million meters per annum of finished fabrics.