1. Contingent Liabilities:

(a) Claims against the Company not acknowledged as debts

(i) Claims against the company not acknowledged as debts represent demands from the Indian Income Tax Authorities for the payment of additional tax including interest of Rs, 14.10 Mn (March 31, 2017 Rs, 14.10 Mn), net of taxes paid to an extent of Rs, 48.82 Mn (March 31, 2017 Rs, 48.82 Mn) upon completion of their tax review for Assessment Year 2005-06, AY 2006-07, AY 2007-08, AY 2010-11, AY 2011-12, AY 2012-13, AY 2013-14, AY 2014-15 & AY 2015-16.

The income tax demands for the above referred AY 2005-06 to AY 2007-08 and from AY 2010-11 to AY 2012-13 are mainly on account of disallowance of in-house product development expenses and disallowance U/s. 14A.

For the AY 2006-07 to AY 2012-13, the appeal is pending before Honorable High Court of Judicature at Madras. For the AY 2014-15 & AY 2015-16, the appeal is pending before Commissioner of Income Tax (Appeals), Chennai.

(ii) The Company has received a revised order for the AYs 2002-03 and 2003-04 from Assistant Commissioner of Income Tax disallowing the software product expenses claimed by the Company as revenue expenditure and instead allowing the same as a capital expenditure and thereby reducing the benefit of carrying forward of losses by Rs, 23.69 Mn to the subsequent assessment years. However, no demand has been raised for the said assessment year.

The Company has filed an appeal with the Honorable High Court of Judicature at Madras against the order of ACIT. The Management believes that the ultimate outcome of the proceeding will not have a material adverse effect on the Company's financial position and results of operation and hence, no adjustment has been made to the financial statements for the year ended March 31, 2018 and March 31, 2017.

(b) Outstanding bank guarantee * as at March 31, 2018 is Rs, 235 Mn (March 31, 2017 Rs, 235 Mn)

* Outstanding bank guarantee includes a sum of Rs, 225 Mn (March 31, 2017 Rs, 225 Mn) given on the basis of the pronouncement of Honorable High Court of Delhi on the BSNL Legal Case. The Management does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. When there is a deep market Investment risk for such bonds; if the return on plan asset is below this rate, it will create a plan deficit. Currently, for these plans,

investments are made in government securities, debt instruments, Short term debt instruments, Equity instruments and Asset Backed, Trust Structured securities as per notification of Ministry of Finance.

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan's investments.

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality Longevity risk of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salar risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan

participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

In respect of the above plans, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31, 2018 by a member firm of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Related Party Disclosure

Related Party Disclosure for the year ended March 31, 2018 List of Related Parties Holding Company

TAKE Solutions Pte Ltd, Singapore

Subsidiaries (held directly)

1. APA Engineering Private Limited, India

2. Ecron Acunova Limited, India

3. TAKE Solutions Global Holdings Pte Ltd, Singapore

4. TAKE Solutions Limited ESOP Trust, India

5. Navitas LLP, India Subsidiaries (held indirectly)

6. APA Engineering Pte Ltd, Singapore

7. APA Engineering Inc., USA

8. Towell TAKE Investments LLC, Muscat (Ceased w.e.f. March 28, 2018)

9. Towell TAKE Solutions LLC, Muscat (Ceased w.e.f. March 28, 2018)

10. TAKE Solutions MEA Limited, UAE (Ceased w.e.f. March 28, 2018)

11. Mirnah Technology Systems Limited, Saudi Arabia (Ceased w.e.f. March 28, 2018)

12. TAKE Enterprise Services Inc., USA

13. TAKE Solutions Information Systems Pte Ltd, Singapore

14. Navitas, Inc., USA

15. Navitas Lifesciences S.A.S., Colombia (Added during the year)

16. TAKE Supply Chain De Mexico S De RI Cv, Mexico

17. Navitas Life Sciences Holdings Limited, UK

18. Navitas Life Sciences Limited, UK

19. Navitas Life Sciences, Inc., USA

20. TAKE Synergies Inc., USA

21. TAKE Dataworks Inc., USA

22. Intelent Inc., USA

23. Astus Technologies Inc., USA

24. Million Star Technologies Limited, Mauritius

25. TAKE Innovations Inc., USA

26. Acunova Life Science Inc., USA

27. Acunova Life Sciences Limited, UK

28. Navitas Life Sciences Gmbh, Germany (Formerly known as Ecron Acunova Gmbh)

29. Ecron Acunova Sdn. Bhd., Malaysia

30. Navitas Life Sciences Company Limited, Thailand (Formerly known as Ecron Acunova Company Limited)

31. Ecron Acunova Sp.Z.O.O. Poland

32. Ecron Acunova Limited, UK

33. Ecron LLC, Ukraine

34. Ecron Acunova LLC, Russia

35. Navitas Life Sciences A/S, Denmark (Formerly known as Ecron Acunova A/S)

36. Navitas Life Sciences Pte Ltd, Singapore (Formerly known as Ecron Acunova Pte Ltd)

Key Management Personnel

1. Mr. Srinivasan H.R. - Vice Chairman and Managing Director

2. Mr. D.V. Ravi - Non - Executive Director

3. Mr. Ram Yeleswarapu - Non - Executive Director

4. Ms. N.S. Shobana - Executive Director

5. Ms. Subhasri Sriram - Executive Director & Chief Financial Officer

6. Mr. Avaneesh Singh - Company Secretary Other Related Party

Asia Global Trading Chennai Private Limited, India - Enterprise over which KMP has significant influence

2. Leases

The Company's significant leasing agreements are in respect of operating lease for computers and premises (office, godown, etc.) and the aggregate lease rentals payable are charged as rent. The total lease payments (including cancellable lease) accounted for the year ended March 31, 2018 is '11.00 Mn (March 31, 2017 is '11.36 Mn).

3. Subsequent Events

There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the Balance Sheet date.

4. Financial Instruments

(a) Capital Management

The Company's capital management is intended to maximise the return to shareholders for meeting the long-term and short-term goals of the Company through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual and long-term operating plans and strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of the capital management, capital include issued equity capital, securities premium, all other reserves attributable to the equity shareholders and non-controlling interest of the Company. Net debt includes all the long-term and short-term borrowings as reduced by cash and cash equivalents.

v) Adjustments to Statement of Cash Flows for the year ended March 31, 2017

There were no material differences between the Statement of Cash Flows presented under IGAAP and those prepared under Ind AS.

5.Segment Reporting

The Company operates in the business segment of offering supply chain management and hence there is only one business segment. The Company is primarily operating in India, which is considered as single geographical segment.