12. Loans, borrowings and bank overdrafts

Short-term loans, borrowings and bank overdrafts

The Company had loans, borrowings and bank overdrafts amounting to ₹ 79,598 and ₹ 68,085, as at March 31, 2018 and 2019, respectively. The principal source of borrowings from banks as at March 31, 2019 primarily consists of lines of credit of approximately ₹ 7,979 million, U.S. Dollar (U.S.$) 1,410 million, Canadian Dollar (CAD) 57 million, EURO 20 million and Indonesian Rupiah (IDR) 13,000 million from bankers for working capital requirements and other short-term needs. As at March 31, 2019, the Company has unutilized lines of credit aggregating U.S.$ 440 million, EURO 20 million, CAD 38 million, ₹ 7,957 million and IDR 13,000 million. To utilize these unused lines of credit, the Company requires consent of the lender and compliance with certain financial covenants. Significant portion of these lines of credit are revolving credit facilities and floating rate foreign currency loans, renewable on a periodic basis. Significant portion of these facilities bear floating rates of interest, referenced to LIBOR and a spread, determined based on market conditions.

The Company has non-fund based revolving credit facilities in various currencies equivalent to ₹ 44,022 and ₹ 40,470, as at March 31, 2018 and 2019, respectively, towards operational requirements that can be used for the issuance of letters of credit and bank guarantees. As at March 31, 2018, and 2019, an amount of ₹ 22,476, and ₹ 22,014, respectively, was unutilized out of these non-fund based facilities.

Long-term loans and borrowings


	As at March 31, 2018					As at March 31, 2019
Currency	Foreign currency in millions		Indian Rupee			Foreign currency in millions		Indian Rupee		Interest rate			Final maturity
Unsecured external commercial borrowing
U.S. Dollar		150		9,777			—		—		—			—
Unsecured loans
U.S. Dollar		625		40,715			382		26,395		3.01% - 3.81	%		July 2021
Canadian Dollar (CAD)		72		3,660			52		2,701		1.48% - 3.26	%		July 2021
Indian Rupee		—		366			—		162		8.29% - 9.35	%		December 2021
Australian Dollar (AUD)		2		92			1		70		4.65	%		January 2022
Great British Pound (GBP)		^		42			^		31		2.93	%		February 2022
Euro		^		24			^		19		2.98	%		December 2020
Brazilian Real (BRL)		1		12			^		2		14.04	%		May 2019

			₹	54,688				₹	29,380

Obligations under finance leases				5,442					2,002
Liabilities directly associated with assets held for sale				(1,469	)				—

				3,973					2,002

			₹	58,661				₹	31,382

Non-current portion of long term loans and borrowings				45,268					28,368
Current portion of long term loans and borrowings				13,393					3,014
^ Value is less than 1

Changes in financing liabilities arising from cash and non-cash changes:


						Non-cash changes
	April 1, 2017		Cash flow			Assets taken on financial lease			Foreign exchange movements		Less: Liabilities directly associated with assets held for sale			March 31, 2018
Borrowings from banks	₹	120,911	₹	(6,661	)	₹	—		₹	5,439		—		₹	119,689
Bank overdrafts		1,992		2,007			—			—		—			3,999
External commercial borrowings		9,728		—			—			49		—			9,777
Obligations under finance leases		8,280		(3,627	)		766			23		(1,469	)		3,973
Loans from other than bank		1,501		(695	)		—			15		—			821

	₹	142,412	₹	(8,976	)	₹	766		₹	5,526	₹	(1,469	)	₹	138,259


									Non-cash changes
			April 1, 2018			Cash flow			Assets taken on financial lease		Foreign exchange movements			March 31, 2019
Borrowings from banks			₹	119,689		₹	(26,228	)	₹	—	₹	3,518		₹	96,979
Bank overdrafts				3,999			(3,995	)		—		—			4
External commercial borrowings				9,777			(10,064	)		—		287			—
Obligations under finance leases				3,973			(2,234	)		14		249			2,002
Loans from other than bank				821			(352	)		—		13			482

			₹	138,259		₹	(42,873	)	₹	14	₹	4,067		₹	99,467

The terms of the other secured and unsecured loans and borrowings also contain certain restrictive covenants primarily requiring the Company to maintain certain financial ratios. As at March 31, 2018 and 2019, the Company has met all the covenants under these arrangements.

Obligations under finance leases amounting to ₹ 5,442 and ₹ 2,002 as at March 31, 2018 and 2019, respectively, are secured by underlying property, plant and equipment.

Interest expense on borrowings was ₹ 1,916, ₹ 3,045 and ₹ 4,058 for the year ended March 31, 2017, 2018 and 2019, respectively.

Finance lease payables consist of liabilities that are taken on lease for a contract term ranging from 1 to 5 years, with lease payments due in monthly or quarterly installments. Details of finance lease payables are given below:


	Minimum lease payments						Present value of minimum lease payment
	As at March 31,
	2018			2019			2018			2019
Not later than one year	₹	3,838		₹	1,555		₹	3,720		₹	1,506
Later than one year but not later than five years		1,784			506			1,722			496
Later than five years		—						—

Total minimum lease payments		5,622			2,061			5,442			2,002
Less: Amounts representing interest		(180	)		(59	)		—			—

Present value of minimum lease payment payables	₹	5,442		₹	2,002		₹	5,442		₹	2,002
Liabilities directly associated with assets held for sale		(1,469	)		—			(1,469	)		—

Obligation under finance lease	₹	3,973		₹	2,002		₹	3,973		₹	2,002

Non-current finance lease payables								1,722			496
Current finance lease payables								2,251			1,506