INDEX

SR.N

TOPIC

PG.NO

O
1
2
3
4
5
6
9

Chapter
Chapter
Chapter
Chapter
Chapter
Chapter
Chapter

I
II
III
IV
V
VI
IX

Objectives
Introduction
Segment Report Policies
Chief Operating Decision Maker
Application TATA Group
Application RELIANCE Group
Conclusion

OBJECTIVES

6
7
16
20
23
29
31

The aim behind preparing and studying the topic ACCOUNTING STANDARDS
17: ITS APPLICATION IN CORPORATE SECTOR is to get known about the AS
17 in detail and to get known its application in corporate sector. To read and
analyze the segment reporting with reference to a corporate
image.INTRODUCTION

INDIAN ACCOUNTING STANDARDS

Indian Accounting Standards (abbreviated as India AS) are a set of accounting standards
notified by the Ministry of Corporate Affairs which are converged with International Financial
Reporting Standards (IFRS). These accounting standards are formulated by Accounting
Standards Board of Institute of Chartered Accountants of India. Now India will have two sets of
accounting standards viz. existing accounting standards under Companies (Accounting Standard)
Rules, 2006 and IFRS converged Indian Accounting Standards(Ind AS). The Ind AS are named
and numbered in the same way as the corresponding IFRS. NACAS recommend these standards
to the Ministry of Corporate Affairs. The Ministry of Corporate Affairs has to spell out the
accounting standards applicable for companies in India. As on date the Ministry of Corporate
Affairs notified 35 Indian Accounting Standards(Ind AS).This shall be applied to the companies
of financial year 2015-16 voluntarily and from 2016-17 on a mandatory basis. Based on the
international consensus, the regulators will separately notify the date of implementation of AS
Ind for the banks, insurance companies etc. Standards for the computation of Tax would be
notified separately.[1]
OBJECTIVE The basic objective of Accounting Standards is to remove variations in the
treatment of several accounting aspects and to bring about standardization in presentation. They
intent to harmonize the diverse accounting policies followed in the preparation and presentation
of financial statements by different reporting enterprises so as to facilitate intra-firm and interfirm comparison.

ACCOUNTING STANDARD (AS) 17

REPORTING

SEGMENT

Segment reporting is the reporting of the operating segments of a company in the disclosures
accompanying its financial statements. Segment reporting is required for publicly-held entities,
and is not required for privately held ones. Segment reporting is intended to give information to
investors and creditors regarding the financial results and position of the most important
operating units of a company, which they can use as the basis for decisions related to the
company.

Usual for reporting entities to be involved in a number of different activities and to be

located in widely dispersed locations

Consolidated financial statements provide aggregated results with resulting loss of

information consolidated financial statements combine the results of a multitude of
subsidiaries that could be operating in widely different industries and locations

Requirement to consolidate all entities that a company controls means there is a need for
segment data

AASB 8 Operating Segments requires the disclosure of segment information within the
notes of a companys financial statements

Under Generally Accepted Accounting Principles (GAAP), an operating segment engages in

business activities from which it may earn revenue and incur expenses, has discrete financial
information available, and whose results are regularly reviewed by the entity's chief operating
decision maker for performance assessment and resource allocation decisions. Follow these rules
to determine which segments need to be reported:

Aggregate the results of two or more segments if they have similar products, services,
processes, customers, distribution methods, and regulatory environments.

Report a segment if it has at least 10% of the revenues, 10% of the profit or loss, or 10%
of the combined assets of the entity.

If the total revenue of the segments you have selected under the preceding criteria
comprise less than 75% of the entities total revenue, then add more segments until you
reach that threshold.

You can add more segments beyond the minimum just noted, but consider a reduction if
the total exceeds ten segments.

The information you should include in segment reporting includes:

The factors used to identify reportable segments

The types of products and services sold by each segment

The basis of organization (such as being organized around a geographic region, product
line, and so forth)

Revenues

Interest expense

Depreciation and amortization

Material expense items

Equity method interests in other entities

Income tax expense or income

Extraordinary items

Other material non-cash items

Profit or loss

The segment reporting requirements under International Financial Reporting Standards are
essentially identical to the requirements just noted under GAAP.
This Accounting Standard is not mandatory for Small and Medium Sized Companies, as defined
in the Notification. Such companies are however encouraged to comply with the Standard.
The following terms are used in this Standard with the meanings specified:
A business segment is a distinguishable component of an enterprise that is engaged in providing
an individual product or service or a group of related products or services and that is subject to
risks and returns that are different from those of other business segments. Factors
That should be considered in determining whether products or services are related include:
(a) The nature of the products or services;
(b) The nature of the production processes;
(c) The type or class of customers for the products or services;
(d) The methods used to distribute the products or provide the services; and
(e) If applicable, the nature of the regulatory environment, for example, banking, insurance, or
public utilities.
A geographical segment is a distinguishable component of an enterprise that is engaged in
providing products or services within a particular economic environment and that is subject to
risks and returns that are different from those of components operating in Segment Reporting
other economic environments. Factors that should be considered in identifying geographical
segments include:
(a) Similarity of economic and political conditions;
(b) Relationships between operations in different geographical areas;
(c) Proximity of operations;
(d) Special risks associated with operations in a particular area;
(e) Exchange control regulations; and
(f) The underlying currency risks.
A reportable segment is a business segment or a geographical segment identified on the basis of
foregoing definitions for which segment information is required to be disclosed by this Standard.

Enterprise revenue is revenue from sales to external customers as reported in the statement of
profit and loss.
Segment revenue is the aggregate of
(I) the portion of enterprise revenue that is directly attributable to a segment,
(ii) The relevant portion of enterprise revenue that can be allocated on a reasonable basis to a
segment, and
(iii) Revenue from transactions with other segments of the enterprise.
Segment revenue does not include:
(a) Extraordinary items as defined in AS 5, Net Profit or Loss
For the Period, Prior Period Items and Changes in Accounting Policies;
(b) Interest or dividend income, including interest earned on advances or loans to other segments
unless the operations of the segment are primarily of a financial nature; and
(c) Gains on sales of investments or on extinguishment of debt unless the operations of the
segment are primarily of a financial nature.
Segment expense is the aggregate of
(I) the expense resulting from the operating activities of a segment that is directly attributable to
the segment, and
(ii) The relevant portion of enterprise expense that can be allocated on a reasonable basis to the
segment, including expense relating to transactions with other segments of the enterprise.
Segment expense does not include:
(a) Extraordinary items as defined in AS 5, Net Profit or Loss for the Period, Prior Period Items
and Changes in Accounting Policies;
(b) Interest expense, including interest incurred on advances or loans from other segments,
unless the operations of the segment are primarily of a financial nature;
Explanation:
The interest expense relating to overdrafts and other operating liabilities identified to a particular
segment are not included as a part of the segment expense unless the operations of the segment
are primarily of a financial nature or unless the interest is included as a part of the cost of

inventories. In case interest is included as a part of the cost of inventories where it is so required
as per AS 16, Borrowing Costs, read with AS 2, Valuation of Inventories, and those inventories
are part of segment assets of a particular segment, such interest is considered as a segment
expense. In this case, the amount of such interest and the fact that the segment result has been
arrived at after considering such interest is disclosed by way of a note to the segment result.
(c) Losses on sales of investments or losses on extinguishment of debt unless the operations of
the segment are primarily of a financial nature;
(d) Income tax expense; and
(e) General administrative expenses, head-office expenses, and other expenses that arise at the
enterprise level and relate to the enterprise as a whole. However, costs are sometimes incurred at
the enterprise level on behalf of a segment. Such costs are part of segment expense if they relate
to the operating activities of the segment and if they can be directly attributed or allocated to the
segment on a reasonable basis.
Segment result is segment revenue less segment expense.
Segment assets are those operating assets that are employed by a segment in its operating
activities and that either are directly attributable to the segment or can be allocated to the
segment on a reasonable basis. If the segment result of a segment includes interest or
Dividend income, its segment assets include the related receivables, loans, investments, or other
interest or dividend generating assets. Segment assets do not include income tax assets.
Segment assets are determined after deducting related allowances/ provisions that are reported as
direct offsets in the balance sheet of the enterprise.
Segment liabilities are those operating liabilities that result from the operating activities of a
segment and that either are directly attributable to the segment or can be allocated to the segment
on a reasonable basis. If the segment result of a segment includes interest expense, its
Segment liabilities include the related interest-bearing liabilities. Segment liabilities do not
include income tax liabilities.
Segment accounting policies are the accounting policies adopted for preparing and presenting
the financial statements of the enterprise as well as those accounting policies that relate
specifically to as 17
The factors in paragraph 5 for identifying business segments and geographical segments are not
listed in any particular order.

A single business segment does not include products and services with significantly differing
risks and returns. While there may be dissimilarities with respect to one or several of the factors
listed in the definition of business segment, the products and services included in a single
business segment are expected to be similar with respect to a majority of the factors.
Similarly, a single geographical segment does not include operations in economic environments
with significantly differing risks and returns. A geographical segment may be a single country, a
group of two or more countries, or a region within a country.
The risks and returns of an enterprise are influenced both by the geographical location of its
operations (where its products are produced or where its service rendering activities are based)
and also by the location of its customers (where its products are sold or services are rendered).
The definition allows geographical segments to be based on either:
(a) The location of production or service facilities and other assets of
An enterprise; or
(b) The location of its customers.
The organizational and internal reporting structure of an enterprise will normally provide
evidence of whether its dominant source of geographical risks results from the location of its
assets (the origin of its sales) or the location of its customers (the destination of its sales).
Accordingly, an enterprise looks to this structure to determine whether its geographical
Segments should be based on the location of its assets or on the location of its customers.
Determining the composition of a business or geographical segment involves a certain amount
of judgment. In making that judgment, enterprise management takes into account the objective of
reporting financial information by segment as set forth in this Standard and the qualitative
characteristics of financial statements as identified in the Framework for the Preparation and
Presentation of Financial Statements issued by the Institute of Chartered Accountants of India.
The qualitative characteristics include the relevance, reliability, and comparability over time
Segment Reporting of financial information that is reported about the different groups of
products and services of an enterprise and about its operations in particular geographical areas,
and the usefulness of that information for assessing the risks and returns of the enterprise as a
whole.

The predominant sources of risks affect how most enterprises are organized and managed.
Therefore, the organizational structure of an enterprise and its internal financial reporting system
are normally the basis for identifying its segments.
The definitions of segment revenue, segment expense, segment assets and segment liabilities
include amounts of such items that are directly attributable to a segment and amounts of such
items that can be allocated to a segment on a reasonable basis. An enterprise looks to its internal
financial reporting system as the starting point for identifying those items that can be directly
attributed, or reasonably allocated, to segments. There is thus a presumption that amounts that
have been identified with segments for internal financial reporting purposes are directly
attributable or reasonably allocable to segments for the purpose of measuring the segment
revenue, segment
In some cases, however, a revenue, expense, asset or liability may have been allocated to
segments for internal financial reporting purposes on a basis that is understood by enterprise
management but that could be deemed arbitrary in the perception of external users of financial
statements. Such an allocation would not constitute a reasonable basis under the definitions
Of segment revenue, segment expense, segment assets, and segment liabilities in this Standard.
Conversely, an enterprise may choose not to allocate some item of revenue, expense, asset or
liability for internal financial reporting purposes, even though a reasonable basis for doing so
exists. Such an item is allocated pursuant to the definitions of segment revenue, segment
expense, segment assets, and segment liabilities in this Standard.
Examples of segment assets include current assets that are used in the operating activities of the
segment and tangible and intangible fixed assets. If a particular item of depreciation or
amortization is included in segment expense, the related asset is also included in segment assets.
Segment assets do not include assets used for general enterprise or head-office purposes.
Segment assets include operating assets shared by two or more segments if a reasonable basis for
allocation exists. Segment assets include goodwill that is directly attributable to a segment or that
can be allocated to a segment AS 17. On a reasonable basis, and segment expense includes
related amortization of goodwill. If segment assets have been revalued subsequent to acquisition,
Then the measurement of segment assets reflects those revaluations.
Examples of segment liabilities include trade and other payables, accrued liabilities, customer
advances, product warranty provisions, and other claims relating to the provision of goods and

services. Segment liabilities do not include borrowings and other liabilities that are incurred for
financing rather than operating purposes. The liabilities of segments whose operations are not
primarily of a financial nature doing not include borrowings and similar liabilities because
segment result represents an operating, rather than a net-of-financing, profit or loss. Further,
because debt is often issued at the head-office level on an enterprise-wide basis, it is often not
possible to directly attribute, or reasonably allocate, the interest-bearing liabilities to segments.
Segment revenue, segment expense, segment assets and segment liabilities are determined
before intra-enterprise balances and intra-enterprise transactions are eliminated as part of the
process of preparation of enterprise financial statements, except to the extent that such intraenterprise balances and transactions are within a single segment.
While the accounting policies used in preparing and presenting the financial statements of the
enterprise as a whole are also the fundamental segment accounting policies, segment accounting
policies include, in addition, policies that relate specifically to segment reporting, such as
Identification of segments, method of pricing inter-segment transfers, and basis for allocating
revenues and expenses to segments.

OBJECTIVE
The objective of this Standard is to establish principles for reporting financial information, about
the different types of products and services an enterprise produces and the different geographical
areas in which it operates. Such information helps users of financial statements:
(a) Better understand the performance of the enterprise;
(b) Better assess the risks and returns of the enterprise; and
(c) Make more informed judgments about the enterprise as a whole.
Many enterprises provide groups of products and services or operate in geographical areas that
are subject to differing rates of profitability, opportunities for growth, future prospects, and risks.
Information about different types of products and services of an enterprise and its operations
In different geographical areas - often called segment information - is relevant to assessing the
risks and returns of a diversified or multi-locational enterprise but may not be determinable from
the aggregated data. Therefore, reporting of segment information is widely regarded as necessary
for meeting the needs of users of financial statements.

SCOPE
1. This Standard should be applied in presenting general purpose financial statements.
238 AS 17
2. The requirements of this Standard are also applicable in case of consolidated financial
statements.
3. An enterprise should comply with the requirements of this Standard fully and not selectively.
4. If a single financial report contains both consolidated financial statements and the separate
financial statements of the parent, segment information need be presented only on the basis of
the consolidated financial statements. In the context of reporting of segment information
In consolidated financial statements, the references in this Standard to any financial statement
items should construed to be the relevant item as appearing in the consolidated financial
statements.

SEGMENT ACCOUNTING POLICIES

Segment information should be prepared in conformity with the accounting policies
adopted for preparing and presenting the financial statements of the enterprise as a whole.
There is a presumption that the accounting policies that the directors and management of an
enterprise have chosen to use in preparing the financial statements of the enterprise as a whole
are those that the directors and management believe are the most appropriate for external
reporting purposes. Since the purpose of segment information is to help users of financial
Statements better understand and make more informed judgments about the enterprise as a
whole, this Standard requires the use, in preparing segment information, of the accounting
policies adopted for preparing and presenting the financial statements of the enterprise as a
whole. That does not mean, however, that the enterprise accounting policies are to be applied to
reportable segments as if the segments were separate stand-alone reporting entities. A detailed
calculation done in applying a particular accounting policy at the enterprise-wide level may be
allocated to segments if there is a reasonable basis for doing so. Pension calculations, for
example, often are done for an enterprise as a whole, but the enterprise-wide figures may be
allocated to segments based on salary and demographic data for the segments.

This Standard does not prohibit the disclosure of additional segment information that is prepared
on a basis other than the accounting policies AS 17 adopted for the enterprise financial
statements provided that (a) the information is reported internally to the board of directors and
the chief executive officer for purposes of making decisions about allocating resources to the
segment and assessing its performance and (b) the basis of measurement
For this additional information is clearly described.
Assets and liabilities that relate jointly to two or more segment should be allocated to
segments if, and only if, their related revenues and expenses also are allocated to those
segments.
The way in which asset, liability, revenue, and expense items are allocated to segments depends
on such factors as the nature of those items, the activities conducted by the segment, and the
relative autonomy of that segment. It is not possible or appropriate to specify a single basis of
allocation that should be adopted by all enterprises; nor is it appropriate to force allocation of
enterprise asset, liability, revenue, and expense items that relate jointly to two or more segments,
if the only basis for making those allocations is arbitrary. At the same time, the definitions of
segment revenue, segment expense, segment assets, and segment liabilities are interrelated, and
the resulting allocations should be consistent. Therefore, jointly used assets and liabilities are
Allocated to segments if, and only if, their related revenues and expenses also are allocated to
those segments. For example, an asset is included in segment assets if, and only if, the related
depreciation or amortization is included in segment expense.

DICLOSURES IN SEGMENT REPORTING

Transparency is the cornerstone of corporate financial reporting. Analysts and other stakeholders
need complete information to evaluate the sustainability and growth of a company and to
monitor the performance of its management. Complete disclosure of information results in
appropriate valuation of companies and thus improves the efficiency of the capital market.
Theoretically, the risk for investment in equity of a company that discloses complete information
is lower than that of investment in equity of a company that withholds information. Greater
disclosure should therefore bring down the cost of capital for a firm. No one, including
managers, dispute this. Yet, in practice, managers often seek to limit transparency as much as
they can without violating the letter of the law.

A case in point is the reporting of segment information. For long, accounting standards have
sought to ensure that corporations that serve customers or have assets located in more than one
country or carry out more than one business should report the financial performance of each
separately
Since the performance of each business is likely to be affected by quite distinct factors, such
disaggregated information would allow users of financial statements to more reliably predict the
future prospects of the firm. The US GAAP mandated disclosure of segment information for the
first time in 1976. Subsequently the rules have been modified in 1997.
The new rules require greater disclosure of disaggregated information. In India, the requirement
for the disclosure of segment information came in force from accounting periods commencing on
or after April 1, 2001, in respect of publicly traded companies and also in respect of all other
commercial, industrial and business reporting entities whose turnover for the accounting period
exceeds Rs 50 crore.
Accounting standards require companies to disclose segment revenue, segment expenses,
segment results, segment assets and segment liabilities. In absence of a reasonable basis,
common expenses and common assets and liabilities are not allocated to different segments.
Accounting standards require companies to disclose information based on the internal
management information system (MIS) that the CEO and the board of directors use to manage
and oversee the strategy and operations of different segments. They do not require companies to
redefine segments for external reporting. The objective is to allow investors to see the company
through the eyes of the management. This also helps to predict management actions that can
significantly affect future cash flows.
Disclosure of segment information provides an insight into how business segments are creating
or destroying value. It also helps to understand the strategy and risk exposure of the company.
Companies are not required to provide information on all segments. A segment is a reportable
segment if: its revenue from sales, including revenue from internal transfers, is 10 per cent or
more of total revenue, external and internal, of all segments; its segment result, whether profit or
loss, is 10 per cent or more of: the combined result of all segments in profit, or the combined
result of all segments in loss, whichever is greater in absolute amount; or its segment assets are
10 per cent or more of the total assets of all segments. If total external revenue attributable to
reportable segments constitutes less than 75 per cent of the total enterprise revenue, additional

segments are identified as reportable segments, even if they do not meet the 10 per cent threshold
tests, until at least 75 per cent of the total enterprise revenue is included in reportable segments.
More often than not the efforts by regulatory bodies to ensure greater transparency through
segment reporting have been thwarted by the actions of managers who have sought to evade
accountability from stakeholders by limiting the amount of information provided in financial
statements.
In their defense, managers argue that disclosure of proprietary information adversely affects the
entity's competitive advantage and thus adversely affects the interest of shareholders. If this is
true then companies that operate in a single business segment cannot create sustainable
competitive advantage. We can pick up large number of successful companies that are operating
in a single segment. Maruti, Tata Steel, ACC, DLF, Tata Tea, Bhatia Televenture and Hero Honda
are some of the companies which have maintained leadership position in their respective
industries for a long period
We may examine the issue from another angle. Does a company that discloses segment
information actually lose in the competition? Many will agree that in India, Infosys Technologies
Limited discloses disaggregated information about different business and geographical segments
in which it operates in accordance with the spirit of the accounting rules for segment reporting.
But it has been able to maintain a leadership position for quite a long period. Therefore, the
argument put forward by managers is not tenable. Research in the US reveals that adoption of
new rules stipulated in SFAS-131 has not hurt the competitive position of companies. However,
it has improved external monitoring. Thus, disclosure of disaggregated information on different
segments in which the company operates threatens the manager's job if the resource allocation
between different segments is suboptimal or if the company pursues poor diversification strategy.
In fact, managers have strong incentives to aggregate segment information to avoid external
scrutiny by the market for corporate control. They want to avoid accountability. However, in
some situations it is just the mindset of managers. Take the example of Tata Motors. Tata Motors,
which manufactures both commercial vehicles and passenger cars, does not treat the passenger
car business separately from the commercial vehicles business for the purpose of segment
reporting. Rather, it lumps them together into a single automobile business. The Centre for
Monitoring Indian Industries' (CMIE) company database PROWSS considers passenger car
manufacturing and commercial vehicles manufacturing as two separate sub-groups of the

automobile industry. These two industries do not exhibit similar long-term financial
performance. It is also difficult to assume that the board of directors and CEO carry on their
function of overseeing the strategy and the operation of the company effectively by looking only
at aggregated information for passenger cars and commercial vehicles.
Even if, for argument sake, we agree that it is debatable whether the two industries are different
in terms of risk and return, perhaps Tata Motors would have done better to disclose the
disaggregated information for the sake of investors and stakeholders who are interested to have
the disaggregated information. The question of information overload does not arise because the
company operates only in two business segments: manufacturing of passenger car and
manufacturing of commercial vehicles. US GAAP indicates that the question of information
overload begins when the number of segments goes beyond ten. It is hard to believe that
managers of Tata Motors, which belongs to the highly respected Tata Group, are reluctant to
submit their decisions to the scrutiny by the capital market.
In view of the managers' inherent reluctance to disclose information that strengthens external
monitoring, the board of directors, particularly the audit committee of the board, should assume
the responsibility of deciding what is to be disclosed and how much is to be disclosed. The board
should strengthen the external monitoring by inducing managers to disclose all relevant
information voluntarily and to implement accounting rules in spirit.
This, in turn, will strengthen monitoring by the board of directors. The auditor has to play an
important role in ensuring this. For example, the auditor is privy to the board records and the
internal MIS and therefore she is in the best position to assess the adequacy or otherwise of the
disclosure of segment information in external financial report. It would be really unfortunate if
she instead uses her expertise to justify the inadequate disclosure by the company.
ADVANTAGES OF SEGMENT REPORTING

Highlights performance of the various parts of an organisation

Enables users of financial statements to be better able to predict the future profitability of
an organisation, particularly where segments are involved in diverse activities

DISADVANTAGES OF SEGMENT REPORTING

Will lead to some costs being imposed on an organisation

 management less likely to take business risks in particular segments if each

segments results available
competitors will have access to information concerning segment profitability
may also provide encouragement for further entrants into the industry
Risk of takeover bids if losses made in particular segments and other parties
consider that they can manage the particular segment more effectively.

CHIEF OPERATING DECISION MAKER

As we now know, an operating segment is a component of an entity about which separate
financial information is available and which is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing performance. The term
chief operating decision maker identifies a function, not necessarily a manager with a specific
title. That function is to allocate resources to and assess the performance of the operating
segments of an entity. Often the chief operating decision maker of an entity is its chief executive
officer or chief operating officer but, for example, it may be a group of executive directors or
others. The focus of the chief operating decision maker (whether an individual or a group of
individuals) therefore dictates which components of an entity are deemed to be operating
segments for the purposes of AASB 8.

INTER-FIRM COMPARABILITY

Allowing management to determine what components of their operation will constitute

operating segments leads to concerns about comparing the results of operating segments
of different organisations operating across similar industries

However, the standard setters decided that the increased relevance of the information
outweighs this concern pertaining to comparability.

QUANTITATIVE THRESHOLDS FOR DISCLOSING

OPERATING SEGMENTS
An entity shall report separately information about an operating segment that meets any of the
following quantitative thresholds:

(a) Its reported revenue, including both sales to external customers and inter-segment sales or
transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating
segments;
(b) the absolute amount of its reported profit or loss is 10 per cent or more of the greater, in
absolute amount, of (i) the combined reported profit of all operating segments that did not
report a loss and (ii) the combined reported loss of all operating segments that reported a loss;
(c) Its assets are 10 per cent or more of the combined assets of all operating segments.
Operating segments that do not meet any of the quantitative thresholds may be considered
reportable, and separately disclosed, if management believes that information about the segment
would be useful to users of the financial statements.

APPLICATION IN CORPORATE SECTOR

TATA GROUP
Tata Group is an Indian Multinational conglomerate company headquartered in Mumbai,
Maharashtra, India. It encompasses seven business sectors: communications and information
technology, engineering, materials, services, energy, consumer products and chemicals. Tata
Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more
than 80 countries across six continents. Tata Group has over 100 operating companies with each
of them operating independently. Out of them 32 are publicly listed. The major Tata companies
are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata
Global Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. The
combined market capitalization of all the 32 listed Tata companies was INR 8.4 Trillion ($141.27
billion) as of July 2014. Tata receives more than 58% of its revenue from outside India.
Products : Airline, Automotive, steel, IT, Electricity generation, Chemicals, Beverages,
Telecom, Hospitality, Retail, Consumer goods, Engineering, Construction, Financial services.
Founded: 1868.
Slogan: "Improving the quality of life of the communities we serve".
This section lists the Tata companies and details their business and products:

Chemicals

Tata Chemicals

Rallis India

Tata Pigments Limited

General Chemical Industrial Products

Brunner Mond

Advinus Therapeutics

Magadi Soda Company

Consumer products

Tata Salt

I-shakti

Casa Dcor

Tata Swach

Tata Global Beverages

Tata Tea Limited is the world's second largest manufacturer of packaged tea and tea
products.

Tata Starbucks, is a 50:50 joint venture company, owned by Starbucks Corporation and
Tata Global Beverages

Eight O'Clock Coffee

Tetley

Tata Coffee

Himalayan, Mount Everest Mineral Waters natural mineral water brand

Tata Ceramics

Infiniti Retail (Crom)

Tata Industries

Titan Industries

Trent (Westside)

Landmark Bookstores

Tata Sky

Crossword

Voltas, consumer electronics company

Tata International Ltd.

Tanishq

Fastrack, Largest & Trendiest Youth Fashion Brand in India

Titan Eye+, World class Optical Stores from Titan Industries

Tata Refractories

Westland

Energy

Tata Power is one of the largest private sector power companies.

Tata Power Solar, a joint venture between Tata Power and BP Solar

Hooghly Met Coke and Power Company

Jamshedpur Utilities and Services Company

Tata Power Delhi Distribution Ltd (Formerly Known as North Delhi Power Ltd)

Powerlinks Transmission

Tata Power Trading

Tata Projects

Engineering

TAL Manufacturing Solutions

Tata AutoComp Systems Limited (TACO)

Hispano Carrocera

Tata Motors, manufacturer of commercial vehicles (largest in India) and passenger cars
o Jaguar Land Rover (Manager of Tata's British brands Jaguar cars and Land Rover)
o Tata Daewoo Commercial Vehicle

Tata Projects

Tata Technologies Limited

Tata Marcopolo

Tata Consulting Engineers Limited

Tata Cummins

Telco Construction Equipment

TRF

Voltas Global Engineering Centre

Tata Advanced Materials

Tata Advanced Systems

Tata Motors European Technical Centre

Tata Petrodyne

Tata Precision Industries

Telcon Construction Equipment

Information systems and communications

Computational Research Laboratories

INCAT

Nelco

Nelito Systems

Tata Business Support Services

Tata Consultancy Services Ltd. (TCS) is one of the world's largest IT Services
companies.

Tata Elxsi

Neotel

Tata Interactive Systems

Tata Teleservices

Tata Teleservices (Maharashtra)

Virgin Mobile India

Tata Communications

CMC Limited

VSNL International Canada

Tatanet, Managed connectivity and VSAT service provider

Services

Tata Sons

TajAir

AirAsia India

Air Asia India joint venture with Air Asia

The Indian Hotels Company

Taj Hotels

Vivanta By Taj

The Gateway Hotels & Resorts

Ginger Hotels

Roots Corporation

Tata Housing Development Company Ltd. (THDC)

Tata Limited

TATA AIG General Insurance

TATA AIA Life Insurance

e-Nxt Financials ltd.

TKM Global, Logistics and Supply Chain

Tata AG

Tata Asset Management

Tata Financial Services

Tata Capital Financial Services Limited

Tata International AG

Tata Investment Corporation

Tata Advanced Systems Limited

Drive India Enterprise Solutions

Mjunction services

Tata Quality Management Services

Tata Realty and Infrastructure Limited

Tata Interactive Systems

Tata Africa Holdings

Tata AutoComp Systems

Tata Industrial Services

Tata NYK

Tata Services

Tata Strategic Management Group

Steel

Tata Steel

Tata Steel Europe

Tata Steel KZN

Tata Steel Processing and Distribution

JAMIPOL

NatSteel Holdings

Tata BlueScope Steel

Tata Metaliks

Tata Sponge Iron

Tayo Rolls

The Tinplate Company of India

Tata Bearings

TM International Logistics

Core sciences

Tata Institute of Fundamental Research

Tata Institute of Social Sciences

The above are the various products in which the TATA group deals.The above mentioned
list are the examples of the segment reporting i.e., the company deals with lots of different
products and in that the segment reporting reflect.

RELIANCE GROUP
Reliance Anil Dhirubhai Ambani Group (now referred as Reliance Group and legally Anil
Dhirubhai Ambani Ventures Limited) is an Indian conglomerate, headquartered in Navi Mumbai,
India. The company, which was formed after Amanas business empire was divided up, is headed
by his younger son Anil Ambani. It has a market capitalization of 890 billion (US$14 billion)
and net assets worth 1800 billion (US$28 billion). The Reliance Group has a business presence
that extends to over 20,000 towns and 450,000 villages in India, and around the globe.
The shareholder base is over 12 million, among the largest in the world. The group is present in
many business sectors across India including technology, financial services, construction,
entertainment, media, real estate, energy, health care, manufacturing, aviation, natural resources,
food and beverages, hospitality, transportation and logistics.

Products : technology, financial services, construction, entertainment, media, real estate, energy,
health care, manufacturing, aviation, natural resources, food and beverages, hospitality,
transportation, logistics, BPO.
Founded: 1966
Slogan: "Think Bigger, Think Better".
This section lists the Reliance companies and details their business and products:
Communications

Reliance Globalcom

Reliance Ingrate

Vance

Reliance World

Reliance Globalcall

Reliance Icall

Reliance Digicom

Reliance BPO

Capital

Reliance Life Insurance

Reliance General Insurance

Reliance Venture

Reliance Mutual Fund

Reliance Money

Reliance Securities

Reliance Commercial Finance

Reliance Venture Capitalist

Reliance Asset Reconstruction

Reliance PMS

ICEX Stock exchange

Reliance Entertainment

Movies and television

DreamWorks SKG Studios (Co-Partnership)

Reliance Pictures

Reliance Media Works Ltd (formerly Adlabs)

Reliance Media World (formerly Lowry Digital)

Reliance Synergy

Reliance Animation

BIGFlix Movies on rent

BIG Cinemas

BIG Music & Video

Reliance Home Video

Reliance ND Studio

RMW Studio

Broadcasting

BIG FM 92.7 Radio stations operating in more than 50 cities.

Reliance Broadcasting (RBNL)

Reliance Digicom

Reliance Digital TV BIG TV DTH service

Imagine Showbiz

BIG Magic

BIG CBS channels

Big CBS Prime

Big CBS Spark

Big CBS Love

Gaming

Zapak

Codemasters

Jump Games

Internet

BIGADDA.com social networking site

BIGOYE.com

The Plot Blog BIG Cinemas

Zapak.com

Others

BIG Street

BIG Maps

BIG Live

BIG Digital

BIG Reach

BIG Events
CONCLUSION
I have studied and analyzed the whole project,ACCOUNTING STANDARD 17: ITS
APPLICATION IN CORPORATE SECTOR. From the study of the project I hereby
conclude that the AS-17 the SEGMENT REPORTING is been explained in detail. And its
application in Corporate Sector With reference to examples is been studied and put-on in the
project.