GUIDE TO MINIMUM ALTERNATE TAX (MAT) FOR IND AS

COMPLIANT COMPANIES
AUTHOR :AFJAHANGIR

https://taxguru.in/income-tax/guide-minimum-alternate-tax-mat-ind-as-compliant-companies.html

CA Ahmad Faraz*

CA Ahmad Faraz Jahangir has examined the amended provisions of MAT under 115JB of Income Tax
Act, 1961, as applicable to Companies following Ind AS for preparation of their Financial Statements.
Illustrations have been given for a better clarity on practical application the provisions.

Introduction:

The Finance Act 2017 amended section 115JB of Income Tax Act, 1961 to rationalise the calculation of Book
Profits for Companies that prepare their financial statements in accordance with Companies (Indian Accounting
Standards) Rules, 2015 (hereinafter referred to as “Ind AS Compliant Companies”). Further, CBDT vide
Circular No. 24/2017 dated 25/07/2017 [F. No 133/23/2015-TPL] issued a FAQ titled Clarifications on
computation of book profit for the purposes of levy of Minimum Alternate Tax (MAT) under section 115JB of the
Income-tax Act, 1961 for Indian Accounting Standards (Ind AS) compliant companies where it answered 14
questions.

Provisions from Bare Act:

Sub section 2A, 2B and 2C of section 115JB highlight the extra exercise to be undertaken by an Ind AS
Compliant Company while calculating its book profits for the purpose of MAT. These provisions have been
reproduced below –

(2A) For a company whose financial statements are drawn up in compliance to the Indian Accounting Standards
specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015, the book profit as
computed in accordance with Explanation 1 to sub-section (2) shall be further—

a) increased by all amounts credited to other comprehensive income in the statement of profit and loss
under the head “Items that will not be re-classified to profit or loss”;

b) decreased by all amounts debited to other comprehensive income in the statement of profit and loss
under the head “Items that will not be re-classified to profit or loss”;
 c) increased by amounts or aggregate of the amounts debited to the statement of profit and loss on
distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian
Accounting Standards 10;

d) decreased by all amounts or aggregate of the amounts credited to the statement of profit and loss on
distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian
Accounting Standards 10:

Provided that nothing contained in clause (a) or clause (b) shall apply to the amount credited or debited to other
comprehensive income under the head “Items that will not be re-classified to profit or loss” in respect of—

i. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian
Accounting Standards 38; or

ii. gains or losses from investments in equity instruments designated at fair value through other
comprehensive income in accordance with the Indian Accounting Standards 109:

Provided further that the book profit of the previous year in which the asset or investment referred to in the first
proviso is retired, disposed, realised or otherwise transferred shall be increased or decreased, as the case may
be, by the amount or the aggregate of the amounts referred to in the first proviso for the previous year or any of
the preceding previous years and relatable to such asset or investment.

(2B) In the case of a resulting company, where the property and the liabilities of the undertaking or
undertakings being received by it are recorded at values different from values appearing in the books of account
of the demerged company immediately before the demerger, any change in such value shall be ignored for the
purpose of computation of book profit of the resulting company under this section.

(2C) For a company referred to in sub-section (2A), the book profit of the year of convergence and each of the
following four previous years, shall be further increased or decreased, as the case may be, by one-fifth of the
transition amount:

Provided that the book profit of the previous year in which the asset or investment referred to in sub-clauses (B)
to (E) of clause (iii) of the Explanation is retired, disposed, realised or otherwise transferred, shall be increased
or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-
clauses relatable to such asset or investment:

Provided further that the book profit of the previous year in which the foreign operation referred to in sub-
clause (F) of clause (iii) of the Explanation is disposed or otherwise transferred, shall be increased or
decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clause
relatable to such foreign operations.

Explanation —For the purposes of this sub-section, the expression—

i. “year of convergence” means the previous year within which the convergence date falls;

ii. “convergence date” means the first day of the first Indian Accounting Standards reporting period as
defined in the Indian Accounting Standards 101;

iii. “transition amount” means the amount or the aggregate of the amounts adjusted in the other equity
(excluding capital reserve and securities premium reserve) on the convergence date but not including the
following—
 A. amount or aggregate of the amounts adjusted in the other comprehensive income on the
convergence date which shall be subsequently re-classified to the profit or loss;

B. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian
Accounting Standards 38 adjusted on the convergence date;

C. gains or losses from investments in equity instruments designated at fair value through other
comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the
convergence date;

D. adjustments relating to items of property, plant and equipment and intangible assets recorded at
fair value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting
Standards 101 on the convergence date;

E. adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair
value as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101
on the convergence date; and

F. adjustments relating to cumulative translation differences of a foreign operation in accordance

with paragraph D13 of the Indian Accounting Standards 101 on the convergence date.

Format of Statement of Profit & Loss of Ind AS Compliant Companies:

To understand the computation of MAT for Ind AS Complaint Companies, one must know what a Statement of
Profit & Loss of Ind AS Compliant Company looks like. The format has been taken from Division II of Schedule
III to Companies Act 2013.

Figures for the Figures for the

Particulars Note No. current previous
reporting period reporting period
I Revenue From operations
II Other Income
III Total Income (I + II)
EXPENSES
IV
Cost of materials consumed

Purchases of Stock-in-Trade
Changes in inventories of finished goods, Stock-in -
Trade and work-in-progress
Employee benefits expense
Finance costs
Depreciation and amortization expenses
Other expenses
Total Expenses (IV)
V Profit/(loss) before exceptional items and tax (I – IV)
VI Exceptional Items
VII Profit/ (loss) before exceptions items and tax (V – VI)
Tax expense:

(1) Current tax

VIII
(2) Deferred tax

Profit (Loss) for the period from continuing

IX
operations (VII-VIII)
X Profit/(loss) from discontinued operations
XI Tax expenses of discontinued operations
Profit/(loss) from Discontinued operations (after tax)
XII
(X-XI)
XIII Profit/(loss) for the period (IX+XII)
Other Comprehensive Income
A: (i) Items that will not be reclassified to profit or
loss

(ii) Income tax relating to items that will not be

XIV reclassified to profit or loss

B: (i) Items that will be reclassified to profit or loss

(ii) Income tax relating to items that will be

reclassified to profit or loss

Total Comprehensive Income for the period (XIII +

XV XIV) (Comprising Profit (Loss) and Other
Comprehensive Income for the period)
Earnings per equity share (for continuing operation):

(1) Basic
XVI
(2) Diluted

Earnings per equity share (for discontinued

operation):

XVII (1) Basic

(2) Diluted
 Earning per equity share (for discontinued &
continuing operation)

XVIII (1) Basic

(2) Diluted
Other Comprehensive Income (OCI) shall be classified into –

(A) Items that will not be reclassified to profit or loss

i. Changes in revaluation surplus;

ii. Remeasurements of the defined benefit plans;

iii. Equity Instruments through Other Comprehensive Income;

iv. Fair value changes relating to own credit risk of financial liabilities designated at fair value through
profit or loss;

v. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be
classified into profit or loss; and

vi. Others (nature to be specified).

(B) Items that will be reclassified to profit or loss;

i. Exchange differences in translating the financial statements of a foreign operation;

ii. Debt instruments through Other Comprehensive Income;

iii. The effective portion of gains and loss on hedging instruments in a cash flow hedge;

iv. Share of other comprehensive lncome in Associates and Joint Ventures, to the extent to be classified
into profit or loss; and

v. Others (nature to be specified)

Explanation of Provisions:

The starting point for computation of book profits shall be the Profit/Loss for the period [Item VIII of Statement
of Profit & Loss] and not Total Comprehensive Income for the period [Item XV of Statement of Profit & Loss].
There was a lot of confusion regarding this since the provisions remain silent on this issue. This has now been
clarified by CBDT via the FAQ released.

Explanation 1 to Section 115JB(2) states the adjustment to be made to book profits for all companies. Once these
adjustments are made, extra adjustments are to be made to book profits of Ind AS Compliant Companies in
accordance with sub-section 2A, 2B and 2C of section 115JB:

Item No. Particulars Amount

I Profit/(loss) for the period [Item VIII of Statement of Profit & Loss] xxx
Adjustments under Explanation 1 to Section 115JB(2):

Add: Item (a) to (k) of Explanation 1 xxx

II
Less: Item (i) to (viii) of Explanation 1 xxx

III Book Profits before adjustment for Ind AS xxx

IV Adjustment for Ind AS in accordance with Section 115JB(2A):
Add: Amounts credited to other comprehensive income in P&L under the head “Items
IV (a) xxx
that will not be reclassified to profit or loss” – Refer Note 1
Less: Amounts debited to other comprehensive income in P&L under the head “Items that
IV (b) xxx
will not be reclassified to profit or loss” – Refer Note 1
Add: Amounts debited to P&L on distribution of non-cash assets to shareholders in a
IV (c) xxx
demerger in accordance with Appendix A of the Ind AS-10 – Refer Note 2
Less: Amounts credited to P&L on distribution of non-cash assets to shareholders in a
IV (d) xxx
demerger in accordance with Appendix A of the Ind AS-10 – Refer Note 2
Adjustment for “Transition Amount” for Ind AS in accordance with Section 115JB(2C) –
V xxx
Refer Note 3
Book Profits for Ind AS Compliant Company xxx

Note 1:

For MAT calculation, items of Other Comprehensive Income (OCI) under heading “Items that will not be
reclassified to profit or loss” have only been considered since these are permanently recorded in reserves and
will never be transferred to regular profit & loss.

Items under heading “Items that will be reclassified to profit or loss” will automatically be included for MAT
calculation as and when they are reclassified as profit & loss in accordance with relevant Ind AS since they will
not meet the condition of clause (i) of Explanation 1 of 115JB(2).

Treatment of Components of Other Comprehensive Income (OCI) for Book Profits

Sr No Component of OCI Treatment for Book Profit
Classified under “Items that will not be reclassif
Changes in revaluation surplus of Property, Plant and
to profit or loss”. Hence included in book profits
Equipment & Intangibles. Refer para 41 of Ind AS 16 –
1 the time of retirement/ realisation/disposal or
Property, Plant and Equipment and para 87 of Ind AS 38
otherwise transfer of asset [second proviso to
– Intangible Assets
115JB(2A)].
Classified under “Items that will not be reclassif
to profit or loss” as per para 122 of Ind AS 19.
Remeasurements of defined benefit plans as mentioned
2 Hence included in book profits every year at the
in Ind AS 19 – Employee Benefits.
time of remeasurement leading to actuarial gains
losses.
Gains and losses arising from translating the financial
Classified under “Items that will be reclassified
statements of a foreign operation as mentioned in Ind
3 profit or loss” as per para 48 of Ind AS 21, henc
AS 21 – The Effects of Changes in Foreign Exchange
outside purview of 115JB(2A).
Rates.
Classified under “Items that will not be reclassif
Gains and losses from investments in equity instruments
to profit or loss” as per para B5.7.1 of Ind AS 10
designated at fair value through other comprehensive
4 Hence included in book profits at the time of
income in accordance with paragraph 5.7.5 of Ind AS
retirement/ realisation/disposal or otherwise tran
109 – Financial Instruments
of asset [second proviso to 115JB(2A)].
Gains and losses on financial assets measured at fair
Classified under “Items that will be reclassified
value through other comprehensive income in
5 profit or loss” as per para 5.6.7 of Ind AS 109, h
accordance with paragraph 4.1.2A of Ind AS 109 –
outside purview of 115JB(2A).
Financial Instruments
The effective portion of gains and losses on hedging
instruments in a cash flow hedge and the gains and Classified under “Items that will not be reclassif
losses on hedging instruments that hedge investments in to profit or loss” as per para 96 of Ind AS 1, hen
6
equity instruments measured at fair value through other included in book profits every year as and when
comprehensive income in accordance with paragraph gain or loss arises.
5.7.5 of Ind AS 109 – Financial Instruments
For particular liabilities designated as at fair value Classified under “Items that will not be reclassif
through profit or loss, the amount of the change in fair to profit or loss” as per para B5.7.9 of Ind AS 10
7
value that is attributable to changes in the liability’s Hence included in book profits Every year as an
credit risk (see paragraph 5.7.7 of Ind AS 109) when the gain or loss arises.
Changes in the value of the time value of options when
Classified under “Items that will not be reclassif
separating the intrinsic value and time value of an option
to profit or loss” as per para 96 of Ind AS 1, hen
8 contract and designating as the hedging instrument only
included in book profits every year as and when
the changes in the intrinsic value (see Chapter 6 of Ind
gain or loss arises.
AS 109 – Financial Instruments)
 Changes in the value of the forward elements of forward
contracts when separating the forward element and spot
element of a forward contract and designating as the
Classified under “Items that will not be reclassif
hedging instrument only the changes in the spot element,
to profit or loss” as per para 96 of Ind AS 1, hen
9 and changes in the value of the foreign currency basis
included in book profits every year as and when
spread of a financial instrument when excluding it from
gain or loss arises.
the designation of that financial instrument as the
hedging instrument (see Chapter 6 of Ind AS 109 –
Financial Instruments)
Share of Other Comprehensive Income in Associates
Included in book profits every year as and when
10 and Joint Ventures, to the extent not to be classified into
share in gain or loss arises.
profit or loss
Note 2:

Clause (c) and (d) of section 115(2A) and section 115(2B) have to be read in conjunction to understand the
calculation of MAT in a scheme of demerger of companies that are following Ind AS. Para 11 of Appendix A to
Ind AS 10 provides that any distributions of non-cash assets to shareholders (for example, in case of a demerger)
shall be accounted for at fair value of the assets. As per para 14, difference between the carrying amount of the
assets in books and the fair value of the assets to be distributed, is recorded in the profit and loss account.
Correspondingly, the reserves are debited at fair value to record the distribution as a ‘deemed dividend’ to the
shareholders. As there is a corresponding adjustment in retained earnings, this difference arising on demerger
shall be excluded from the book profits.

As per 115(2B), in the case of a resulting company, where the property and the liabilities of the undertaking or
undertakings being received by it are recorded at values different from values appearing in the books of account
of the demerged company immediately before the demerger, any change in such value shall be ignored for the
purpose of computing of book profit of the resulting company.

Example: Company X Ltd. is undergoing a scheme of demerge. As per the scheme, X Ltd. will transfer Assets to
resultant co. R Ltd. The carrying value of assets is Rs. 500 while the fair value is Rs. 800. Book profit is
assumed to be 2000 before adjustment of 115(2A).

X Ltd. will pass the following journal entries:

1. Asset a/c dr. 300

To Fair value markup 300
(Being asset marked up to its fair value as per para 14)
2. Profit & Loss Appropriation a/c dr. 800
To Proposed Dividend 800
(Being dividend proposed at fair value of asset as per para 11)

Calculation of MAT:
Book profit before adjustment of 115(2A) 2000
Add: Proposed dividend [clause e to Explanation 1 of 115JB(2)] 800
Less: Amounts credited to P&L on distribution of non-cash assets to shareholders in a
300
demerger in accordance with Appendix A of the Ind AS-10
Book Profit 2500

300 being a notional mark-up is allowed to be reduced from calculation of book profits. Hence, dividend is
effective included at book value of asset distributed (800 – 300).

As per 115(2B), in the books of Resultant Co. R ltd., this notional gain of 300 will be ignored for calculation of
book profits.

Note 3:

When a Company adopts Ind AS for the first time, it is required to recognise, reclassify and measure all its
existing assets and liabilities as required by Ind AS. Effect of such recognition, reclassification and measurement
is adjusted in Other Equity.

Transition amount includes all such amount (except amounts in capital reserve and security premium reserve).
The transition amount is to be adjusted in book profits (add to book profit is credit balance, reduce from book
profit if debit balance) equally over a period of 5 years. However, items 1 – 6 given below are to be excluded
from transition amount and they have a specific treatment:

Sr No Items Treatment for Book Profit

Amount or aggregate of the amounts adjusted in the
other comprehensive income on the convergence date
1
which shall be subsequently re-classified to the profit
or loss.
Revaluation surplus for assets in accordance with the
Indian Accounting Standards 16 and Indian
2
Accounting Standards 38 adjusted on the convergence
date.
On the principle that such items will be included in b
profit as and when they are reclassified from OCI to
or loss, these are ignored for the purpose of treatmen
“Transition Amount” as per 115JB(2C).
Included in book profit at the time of retirement/
realisation/disposal or other transfer of asset [Provis
115JB(2C)].
Note: Provision of 1/5th is not applicable here.
 Included in book profit at the time of retirement/
Gains or losses from investments in equity instruments realisation/disposal or other transfer of asset [Provis
designated at fair value through other comprehensive 115JB(2C)].
3
income in accordance with the Indian Accounting
Standards 109 adjusted on the convergence date. Note: Provision of 1/5th is not applicable here.

Adjustments relating to items of property, plant and
equipment and intangible assets recorded at fair value
4 as deemed cost in accordance with paragraphs D5 and
D7 of the Indian Accounting Standards 101 on the
convergence date
Included in book profit at the time of retirement/
realisation/disposal or other transfer of asset [Provis
115JB(2C)].
Note: Provision of 1/5th is not applicable here.

Adjustments relating to investments in subsidiaries,
joint ventures and associates recorded at fair value as
5 deemed cost in accordance with paragraph D15 of the
Indian Accounting Standards 101 on the convergence
date
Included in book profit at the time of retirement/
realisation/disposal or other transfer of asset [Provis
115JB(2C)].
Note: Provision of 1/5th is not applicable here.

Adjustments relating to cumulative translation Included in book profit when foreign operation is dis
differences of a foreign operation in accordance with or other transferred [Second proviso to 115JB(2C)].
6
paragraph D13 of the Indian Accounting Standards
Note: Provision of 1/5th is not applicable here.
101 on the convergence date
For companies which have adopted Ind AS from Financial Year 2016-17, the relevant Assessment Years for
adjustment of Transition Amount in Book Profits under 115JB(2C) in 5 equal instalments will be:

A. Y. 2017-18
A. Y. 2018-19
A. Y. 2019-20
A. Y. 2020-21
A. Y. 2021-22

Illustration:

Solution to Question from CA-Final Direct Tax Compulsory Question – Nov 2018:
Solution:

Kindly note that ICAI has not released the answer to this question.

Update: ICAI has released the answer but missed out one adjustment (working note 1)

Calculation of Book Profits in accordance with Section 115JB

Particulars Working Note Amount (in Lakh)

Book profits u/s 115JB(2) 52.26
Less: Adjustment under clause (iih) to Explanation 1 1 7.1
Adjustments u/s 115JB(2A), (2B), (2C)
1. OCI that may be re-classified into Profit & Loss 2 0
2. OCI that will not be re-classified into Profit & Loss

Changes in fair value of equity instruments 3 0

Deferred gain on cash flow hedges (Add since credit) 4 7.25

Deferred cost of hedging (Less since debit) 4 (4.1)

Share of OCI of other associates (Add since credit) 4 3.2

Remeasurement of Post-Employment Benefit (Add) 4 4.45

Revaluation surplus for assets 3 0

3. Adjustment for “Transition Amount” u/s 115JB(2C) 5 8

Book Profits 63.96
Tax @ 18.5% 11.8326
Add: Surcharge 0% (Since income less than 1 Crore) 0
Add: Cess 4% 0.4733
Tax Payable under MAT (A) 12.306
Tax Payable under Normal Provisions (B) 9.20
MAT Credit (A – B) To be carried forward for 15 AY (amendment) 3.106
Working Notes:

1. Clause (iih) as introduced by Finance Act, 2018.

Book profit shall be reduced by the aggregate amount of unabsorbed depreciation and loss brought forward in
case of a company against whom an application for corporate insolvency resolution process has been admitted
by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code,
2016

Assessment Years Business Loss Depreciation

A.Y 2015-16 (F.Y 2014-15) 4.6 4.9
A.Y 2016-17 (F.Y 2015-16) 1.75 2.2
Total Available for set off 6.35 7.1
Set off A.Y 2016-17 4.6 0
Set off A.Y 2017-18 1.75 0
Amount remaining for A.Y 2018-19 0 7.1

Aggregate of unabsorbed depreciation and business loss = 0 + 7.1 = 7.1

2. 115JB(2A) talks only about items of Other Comprehensive Income (OCI) under heading “Items that will not
be reclassified to profit or loss”. Items under heading “Items that will be reclassified to profit or loss” are
ignored. Hence no adjustments.

3. “Changes in fair value of equity instruments” and “Revaluation surplus for assets” are to be included in book
profits only onretirement/ realisation/disposal or otherwise transfer of asset. Since the question is silent, it is
assumed that assets have not been retired, realised, disposed or transferred. Refer second proviso to 115JB(2A)
given below.

Provided further that the book profit of the previous year in which the asset or investment referred to in the first
proviso is retired, disposed, realised or otherwise transferred shall be increased or decreased, as the case may
be, by the amount or the aggregate of the amounts referred to in the first proviso for the previous year or any of
the preceding previous years and relatable to such asset or investment.

Assets referred in first proviso:

i. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian
Accounting Standards 38.

ii. gains or losses from investments in equity instruments designated at fair value through other
comprehensive income in accordance with the Indian Accounting Standards 109

4. All other items of OCI under heading “Items that will not be reclassified to profit or loss” will be included in
book profits. Refer 115JB(2A) given below:

(2A) For a company whose financial statements are drawn up in compliance to the Indian Accounting Standards
specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015, the book profit as computed
in accordance with Explanation 1 to sub-section (2) shall be further—
 a) increased by all amounts credited to other comprehensive income in the statement of profit and loss
under the head “Items that will not be re-classified to profit or loss”

b) decreased by all amounts debited to other comprehensive income in the statement of profit and loss
under the head “Items that will not be re-classified to profit or loss”

5. Computation of Transition Amount under Clause (iii) of Explanation to Section 115JB(2C)

Credit balance Transition Amount as given 52.50

Less: Capital Reserve balance included in above 8
Less: Transition difference in a foreign operation ** 4.50
Total 40
One fifth of above (40/5) 8

** In the absence of information, it is assumed that foreign operation is not disposed-off.

(2C) For a company referred to in sub-section (2A), the book profit of the year of convergence and each of the
following four previous years, shall be further increased or decreased, as the case may be, by one-fifth of the
transition amount:

Provided that the book profit of the previous year in which the asset or investment referred to in sub-clauses (B)
to (E) of clause (iii) of the Explanation is retired, disposed, realised or otherwise transferred, shall be increased
or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-
clauses relatable to such asset or investment:

Provided further that the book profit of the previous year in which the foreign operation referred to in sub-
clause (F) of clause (iii) of the Explanation is disposed or otherwise transferred, shall be increased or
decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clause
relatable to such foreign operations.

Explanation —For the purposes of this sub-section, the expression—

(iii) “transition amount” means the amount or the aggregate of the amounts adjusted in the other equity
(excluding capital reserve and securities premium reserve) on the convergence date but not including the
following—

A. amount or aggregate of the amounts adjusted in the other comprehensive income on the convergence
date which shall be subsequently re-classified to the profit or loss;
 B. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian
Accounting Standards 38 adjusted on the convergence date;

C. gains or losses from investments in equity instruments designated at fair value through other
comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the
convergence date;

D. adjustments relating to items of property, plant and equipment and intangible assets recorded at fair
value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting Standards 101
on the convergence date;

E. adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair value
as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101 on the
convergence date; and

F. adjustments relating to cumulative translation differences of a foreign operation in accordance with

paragraph D13 of the Indian Accounting Standards 101 on the convergence date.

Author can be reached at faraz.ahmadj@gmail.com