1. Corporate Information :

Eon Electric Limited is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Registered Office of the company is situated at House No. 1048, Sector 14, Sonepat, Haryana. The shares of the company are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The company is engaged in the manufacturing and selling of Cables and Wires, Energy Efficient LED Based Lighting, Wiring accessories, Fans, Geysers, Lithium-ion Batteries, Mobile phone accessories and other electrical products. The Company's manufacturing facilities are located at Haridwar in Uttarakhand. The financial statements were authorized by the Board of Directors for issue in accordance with resolution passed on 30th May, 2018.

2. Inventories are valued as under :-

Raw Material : At lower of cost determined on FIFO basis and net realisable value.

Work-in-Progress : At lower of cost and net realisable value.

Finished Goods : At lower of cost including excise duty and net realisable value.

Stock-in-Trade : At cost.

During the year ended March 31, 2018 the Company has converted 8,45,000 Zero Coupon Equity Warrants issued by it on preferential basis by private placement to the promoters of the Company into 8,45,000 fully paid Equity Shares of the face value of Rs. 5/- each at a price of Rs.66.50 per share. The difference between the conversion price and the face value of equity shares has been credited to Securities Premium Reserve.

3. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.5/- per share. Each holder of equity shares is entitiled to one vote per share. The Company declares and pays dividends in Indian rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Notes:

3.1 Vehicle Loans from Banks and others are secured by way of Hypothecation of Vehicles acquired out of such loans.

3.2 Vehicle Loans are repayable in 60 Equated Monthly Installments commencing from the date of sanction of the Loan.

3.3 Deferred payment liability was due to Haryana State Industrial & Infrastructure Development Corporation Limited against land purchased from them and is payable in 8 equal half yearly installments alongwith interest thereon.

4.1 Cash Credit Facility from State Bank of India / Patiala is secured primarily by first charge by way of hypothecation of entire current assets and collaterally by equitable mortgage (first charge) of Plot No. 10, Sector-4, IIE, SIDCUL, Haridwar and first charge on Plant and Machinery situated thereon and personally guaranteed by three directors of the company. The said facility is re-payable on demand.

4.2 Cash Credit Facility from RBL Bank Limited is secured by subservient charge by way of hypothecation on entire current assets and movable fixed assets of the company both present and future, pledge of 800,000 shares of the company held by the promoters and collaterally by way of exclusive charge on Land and Building located at Plot No. 1C, Sector 7, IIE, SIDCUL, Haridwar and personally guaranteed by three directors of the company. The said facility is re-payable on demand.

4.3 Overdraft from Standard Chartered Bank is secured by pledge of first fixed charge on Investments in Mutual Funds and Bonds liened in favour of the Bank. The said loan is vaild for one day or repayable on demand.

4.4 Overdraft from RBL Bank Limited is secured by pledge of Debt Mutual Funds and Bonds held in the name of the company and 900,000 shares of the company held by the promoters. The said loan is repayable on demand.

4.5 Overdraft from Deutsche Bank A.G. since settled in full during the year 2016-17 was secured against pledge of approved Investments in Mutual Funds and Bonds held in the name of the company.

5. Information on Operating Segments of the Company for the year ended 31st March 2018 operating Segments

In accordance with the Ind AS-108 “Operating Segment” (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015 the Company's operations have been categorized into the following Operating segments :-

Cable and Wires includes Wires and Cables etc.

Lighting includes Compact Fluorescent Lamps, Fluorescent TubeLights, LEDs, Solar and Luminaires etc.

Electrical Consumer Durables includes Fans, Water Heaters etc.

Others includes Lithium Ion Batteries, Mobile Phone Accessories etc.

No operating segments have been aggregated to form above reporatable operating segments.

Segment Revenue relating to each of the above business segments includes Other Income, where applicable.

The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the organization structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the company's existing Business Segments take place indigenously.

Notes:-

i. Segment results represent Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to fixed assets during the year including capital work in progress.

iii. Segment Assets include Fixed Assets, Current Assets & Loans and Advances directly attributable to respective business segments.

iv. Segment Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting policies used to derive reportable segment results are consistent with those described in the “Significant Accounting Policies” note to the financial statements.

* FVTPL - Fair Value Through Profit and Loss

# FVTOCI - Fair Value Through Other Comprehensive Income (i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following table provides the fair value measurement hierarchy of Company’s asset and liabilities, grouped into Level 1 to Level 3 as described below

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

(ii) Valuation techniques used to determine Fair value

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount 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.

Specific valuation techniques used to value financial instrument includes:

- the use of quoted market prices or dealer quotes for similar financial instruments.

- the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis.

The following method and assumptions are used to estimate fair values:

The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term deposits etc. are considered to be their fair value, due to their short term nature.

6. Financial Risk Management - Objectives and Policies

The Company's financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's financial assets comprise mainly of investments, trade receivables, cash and cash equivalents, other bank balances and other financial assets.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors oversee the management of these financial risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company's senior management that the Company's financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

The Board of Directors reviews and agrees policies for managing each of these risks which are summarized as below :

1) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, trade receivables and trade payables.

a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's Investments in Debt based Mutual Funds and Company's borrowings from Banks at floating interest rates. Any increase or decrease in the rate of interest would directly affect the return on these investments. Similarly any increase or decrease in the rate of interest on borrowings would have an adverse or favourable impact on the profitability of the Company.

b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company does not enter into any derivative instruments for trading or speculative purposes.

The carrying amounts of the Company's Unhedged foreign currency denominated monetary items are as follows:

c) Other Price Risk

Other price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded price.

The Company is exposed to price risk arising from investments in bonds recognised at FVTOCI. As at 31st March, 2018, the carrying value of such instruments recognised at FVTOCI amounts to Rs.103,264,503/- (Rs.103,871,752/as at 31st March, 2017 and Rs.101,483,566/- as at 1st April, 2016). These being debt instruments, the exposure to risk of changes in market rates is minimal. The details of such investments in bonds are given in Note No. 5.

2) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments in mutual funds, deposits with banks and other financial instruments.

a) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an analysis of its credit worthiness and accordingly individual credit limits are defined / modified. Outstanding customer receivables are regularly monitored and any sales to new customers are generally covered by letters of credit and other forms of security.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The concentration of credit risk is limited due to the fact that the customer base is large and located in several jurisdictions.

The following table summarizes the movement in expected credit loss allowance measured using the Life Time Expected Credit Loss model:

b) Investments in Mutual Funds and Other Financial Assets

Credit risk arising from investment in mutual funds and other balances with banks is limited and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the international credit rating agencies.

3) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining funds in cash and cash equivalents. The Company also has credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner. Management monitors the Company's liquidity position through rolling forecasts on the basis of expected cash flows.

Maturity profile of financial liabilities

The table below provides the details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undiscounted payments.

7. Capital Management

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

As at 31st March, 2018, the Company has only one class of equity shares. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans.

8. Disclosures as required by Indian Accounting Standard (Ind AS 101) First Time Adoption of Indian Accounting Standards

These are Company's first financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet as at April 1, 2016 (The Company's date of transition).

For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP').

This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP for the following

a) Balance Sheet as at 1st April, 2016 (Transition date);

b) Balance Sheet as at 31st March, 2017;

c) Statement of Profit and Loss for the year ended 31st March, 2017; and

d) Statement of Cash flows for the year ended 31st March, 2017.

1) EXEMPTIONS AVAILED:

Ind AS 101- First-time adoption of Indian Accounting Standards, allows first-time adopters, exemptions from the retrospective application and exemption from application of certain requirements of other Ind AS. The Company has availed the following exemptions as per Ind AS 101:

a) Business Combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Company has availed the said exemption and elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Accordingly business combinations occurring prior to the transition date have not been restated.

b) Deemed Cost

Ind AS 101 permits a first time adopter to elect to fair value of its property, plant and equipment as recognised in financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively. Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS. This exemption can be also used for intangible assets covered by Ind-AS 38.

The Company has elected to consider carrying value of all its Property, Plant and Equipment and Intangible Assets as its deemed cost on the date of transition to Ind AS.

c) Leases

Appendix C to Ind AS 17-” Leases” requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind-AS except where the effect is expected to be not material.

The Company has elected to apply this exemption for such contracts/arrangements.

d) Investments in Subsidiaries, Associates and Joint ventures

Ind AS 101 permits the first time adopter to measure investment in Subsidiaries, Joint ventures and Associates in accordance with Ind AS 27 at one of the following:

a) cost determined in accordance with Ind AS 27 or

b) Deemed cost:

(i) fair value at date of transition

(ii) previous GAAP carrying amount at that date.

The Company has elected to consider previous GAAP carrying amount of its investments in subsidiaries, Joint ventures and associates on the date of transition to Ind AS as its deemed cost for the purpose of determining cost in accordance with principles of Ind AS 27- “Separate Financial Statements”.

2) Ind AS Mandatory Exceptions

a) Estimates

An entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

b) Derecognition of Financial Assets and Financial Liabilities

Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. Accordingly, the Company has applied the derecognition requirement for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS.

c) Classification of Financial Assets and Liabilities

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances that exist on the date of transition to Ind AS. Accordingly, the Company has applied the above requirement prospectively.

d) Impairment of Financial Assets

Ind AS 101 requires an entity to assess and determine the impairment allowance on financial assets as per Ind AS 109 using the reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments which were initially recognised and compare that to the credit risk at the date of transition to Ind AS. The Company has applied this exception prospectively.

Notes to the reconciliation of Balance Sheet as at 1st April, 2016 and 31st March, 2017 and the Total Comprehensive Income for the year ended 31st March, 2017

A Non-Current Assets

1. Non-Current Investments:

In the financial statements prepared under the Previous GAAP, Non-current Investments of the Company were measured at cost less provision for diminution (other than temporary). Under Ind AS, the Company has recognised such investments as follows:

- Investment in Joint Venture - At Cost

- Investment in Bonds - At fair value through other comprehensive income (FVTOCI)

- Investment in Others- - At fair value through profit and loss (FVTPL)

Ind AS requires the above investments to be recognised at fair value (except investments in equity shares of Joint Venture and associate companies).

On the date of transition to Ind AS, the difference between the fair value of Non-Current Investments as per Ind AS and their corresponding carrying amount as per financial statements prepared under Previous GAAP, has resulted in an increase in the carrying amount of these investments by Rs 85,84,566/- which has been recognised directly in retained earnings (Equity). Deferred tax liability amounting to Rs 17,68,421/- has been recognised on such fair valuation gain.

As at 31st March, 2017, the difference between the fair value of Non-Current Investments as per Ind AS and their corresponding carrying amount as per financial statements prepared under the Previous GAAP, has resulted in an increase in the carrying amount of these investments by Rs. 10,972,752.The difference in the fair value of these investments as on 31st March 2017 and the transition date amounting to Rs 23,88,186/- has been recognised in OCI. Correspondingly, deferred tax expense amounting to Rs 4,91,965/- on this has been recognised in OCI .

The above transition has resulted in increase in equity by Rs 85,84,566/- as at date of transition to Ind AS and by Rs 109,72,752/- as at 31st March, 2017. Also, deferred tax on the same has resulted in decrease in equity by Rs 17,68,421/- as at date of transition to Ind AS and by Rs 22,60,386/- as at 31st March, 2017.

2. Loans :

In the financial statements prepared under the Previous GAAP, interest free security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, Interest free Security Deposits being a financial assets are required to be recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. The difference between the transaction value and fair value is recognised as prepaid rent as on the date of transition.

Due to this Security deposit is decreased and prepaid rent is increased by Rs 2,61,017/- and Rs 1,16,091/- as on 1st April , 2016 and 31st March, 2017 respectively. Profit for the year ended 31st March, 2017 is decreased by Rs 1, 44,926/- due to amortisation of prepaid rent which is set off with the notional interest income of Rs 1,44,926/-.

The above changes do not affect Equity as at date of transition to Ind AS and as at 31st March, 2017.

3. Amortised Cost of Financial Assets

In the financial statements prepared under the previous GAAP, interest accrued on Fixed Deposits and Margin Money Deposits was shown as interest receivable on Fixed Deposits with Banks under Other Current Assets. Under Ind AS such fixed deposits are financial assets and are qualified to be recognized at amortised cost at reporting date as per Ind AS 109. Accordingly the Company has measured them at amortised cost at reporting date. Accordingly amortised cost of fixed deposits is increased by Rs 20,24,930/-and Rs 75,96,102/- as at the date of transition and March 31, 2017 respectively with the corresponding decrease in interest receivable on fixed deposits. There is no impact on total equity and profit.

B. Current Assets:

1. Current Investments:

In the financial statements prepared under the Previous GAAP, Current Investments of the Company were measured at lower of cost or fair value. Under Ind AS, these investments have been recognised at FVTPL on the date of transition.

The fair value changes are recognised in the Statement of Profit and Loss.

On the date of transition to Ind AS, the difference between the fair value of Current Investments as per Ind AS and their corresponding carrying amount as per financial statements prepared under the Previous GAAP, has resulted in an increase in the carrying amount of these investments by Rs 2,75,69,749/- which has been recognised directly in retained earnings (Equity). Deferred tax liability amounting to Rs 85,19,052/- has been recognised on such fair valuation gain.

As at 31st March, 2017, the difference between the fair value of Current Investments as per Ind AS and their corresponding carrying amount as per financial statements prepared under the Previous GAAP, has resulted in an increase in the carrying amount of these investments by Rs 2,73,73,790/-.

Fair valuation loss for the year ended 31st March, 2017, amounted to Rs 1,95,959/- and the same has been recognized in Other income in Statement of Profit and Loss. Correspondingly, deferred tax benefit amounting to Rs 60,551/- has been recognised in Statement of Profit and Loss. The above transition has impacted an increase in equity by Rs 2,75,69,749/- as at transition date and by Rs 2,73,73,790/- as at 31st March, 2017. Also, deferred tax on the same has resulted in decrease in equity by Rs 85,19,052/- as at date of transition to Ind AS and decrease in equity by Rs 84,58,501/- as at 31st March, 2017.

2. Impairment Allowance for Trade Receivables :

In the financial statements prepared under the Previous GAAP, Trade Receivables of the Company were stated after making provision for doubtful debts. Under Ind AS , the company has applied the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

Due to this the difference between the impairment allowance on Trade Receivables as per IndAS and the provision made as per the financial statements prepared under the previous GAAP has resulted in a decrease in the carrying amount of Trade Receivables by Rs 61,18,687/- as at transition date and by Rs 1,32,91,337/- as at 31st March, 2017. This has also resulted in a decrease in the amount of Equity by Rs 61,18,687/- as at transition date and a reduction of Rs 71,72,650/- in the profit of the company for the year ended 31st March, 2017.

3. Amortised Cost of Financial Assets

In the financial statements prepared under the previous GAAP, interest accrued on Fixed Deposits and Margin Money Deposits was shown as interest receivable on Fixed Deposits with Banks under Other Current Assets. Under Ind AS such fixed deposits are financial assets and are qualified to be recognized at amortised cost at reporting date as per Ind AS 109. Accordingly the Company has measured them at amortised cost at reporting date. Accordingly amortised cost of fixed deposits is increased by Rs 6,04,111/-and Rs 3,62,788/- as at the date of transition and March 31, 2017 respectively with the corresponding decrease in interest receivable on fixed deposits. There is no impact on total equity and profit.

C. Money received against Share Warrants

In the financial statements prepared under the Previous GAAP, Money received against Share Warrants was shown as a separate line item which did not form part of the Equity Share Capital or Reserves and Surplus. Under Ind AS, Money received against Share Warrants is classified under the head Other Equity. The re-classification of the Money received against Share Warrants has resulted in an increase in the Other Equity by Rs 1,40,48,125/as at 31st March, 2017.

D. Amortised Cost of Financial Liabilities

In the financial statements prepared under the previous GAAP, interest accrued on Security Deposits was shown as interest payable under Other Current Liabilities. Under Ind AS all financial liabilities are to be recognized at Fair Value i.e. amortised cost at reporting date as per Ind AS 109. Accordingly the Company has measured them at amortised cost at reporting date. Accordingly amortised cost of Security deposits is increased by Rs 5,80,279/and Rs 5,80,291/- as at the date of transition and March 31, 2017 respectively with the corresponding decrease in interest payable on security deposits. There is no impact on total equity and profit.

Further the value of Vehicle Loans is increased by Rs. 12,038/- on account of valuation of such borrowing at amortised cost with a corresponding reduction in the profit for the year ended 31st March, 2017.

E. Deferred tax:

In the financial statements prepared under the Previous GAAP, deferred tax was accounted as per the income statement approach which required creation of deferred tax asset/liability on temporary differences between taxable profit and accounting profit. Under Ind AS, deferred tax is accounted as per the Balance Sheet approach which requires creation of deferred tax asset/liability on temporary differences between the carrying amount of an asset/liability in the Balance Sheet and its corresponding tax base.

The application of Ind AS has resulted in recognition of deferred tax on new temporary differences which were not required to be recognized In the financial statements prepared under the Previous GAAP. In addition, the above mentioned transitional adjustments relating to current/non-current investments have also led to temporary differences and creation of deferred tax thereon.

The above changes have resulted in creation of deferred tax liabilities amounting to Rs 83,96,799/- as at date of transition to Ind AS and Rs 66,11,864/- as at 31st March, 2017. For the year ended 31st March, 2017, it has resulted in recognition of deferred tax benefit by Rs 22,76,901/- in the Statement of Profit and Loss and an increase in deferred tax expense by Rs 4,91,966/- in OCI.

F. Revenue from Sale of products/ Excise Duty:

In the financial statements prepared under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS revenue from sales of goods is presented inclusive of excise duty. Excise duty paid is presented on face of Statement of Profit and Loss as a part of expense. This change has resulted in increase in total revenue and total expense for the year ended 31st March 2017 by Rs 4,78,95,280/- There is no impact on total equity and profit.

G. Sales Discount

In the financial statements prepared under the previous GAAP, Sales discount was presented under other expenses. Under Ind AS revenue from sales of products is recognised at fair value of consideration expected to be received. Accordingly revenue for the year ended 31st March 2017 is presented net of Sales Discount. This change has resulted in decrease in total revenue and total expense for the year ended 31st March 2017 by Rs 3,48, 64,833/-. There is no impact on total equity and profit.

H. Re-measurement benefit of Defined Benefit Plans:

In the financial statements prepared under the Previous GAAP, re-measurement benefit of defined plans (Gratuity and Leave Encashment), arising primarily due to change in actuarial assumptions was recognised as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such re-measurement benefits relating to defined benefit plans is recognised in OCI as per the requirements of Ind AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognised in OCI.

For the year ended 31st March, 2017, re-measurement of gratuity liability and leave encashment liability resulted in an actuarial loss of Rs 7,60,027/-. The loss of Rs 7,60,027/- on account of change in actuarial assumptions has now been removed from employee benefits expense in the Statement of Profit and Loss and recognised separately in OCI.

This has resulted in reduction in employee benefits expense by Rs 7,60,027/- and decrease in OCI by Rs 7,60,027/- for the year ended 31st March, 2017.

The above changes do not affect Equity as at date of transition to Ind AS and as at 31st March, 2017.

However, Profit before tax and profit for the year ended 31st March, 2017 increased by Rs 7,60,027/

I. Other Comprehensive Income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately.

Hence, it has reconciled Indian GAAP profit to profit as per Ind AS. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind AS.

J. Statement of Cash Flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows

9. The provision in regard to Section 135 of the Companies Act, 2013 in regard to Corporate Social Responsibility is not applicable to the Company.

10. Figures for the previous year have been reclassified / regrouped / re-stated wherever necessary to make them comparable.