1 CORPORATE INFORMATION

Max Ventures and Industries Limited (the Company) is a company registered under Companies Act, 2013 and incorporated on January 20, 2015. The Company is primarily engaged in the business of making business investments and providing shared services to the group companies. The Company's shares got listed on National Stock Exchange and Bombay Stock Exchange as on June 22, 2016. Registered office of the Company is located at 419, Bhai Mohan Singh Nagar, Village Railmajra, Tehsil Balachaur, Nawanshehar, Punjab - 144533

The standalone financial statements were authorised for issue in accordance with a resolution by the Board of directors of the Company on May 17, 2018.

c) Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

e) Aggregate number of Shares issued for consideration other than cash during the period of five years immediately preceding the reporting date

During the Financial year 2015-16, existing shareholders of Max Financial Services Limited (erstwhile Max India Limited) were allotted shares in the ratio of 1:5 in Max Ventures and industries Limited i.e. 53,300,555 equity shares under the scheme of demerger without any consideration in cash. The Company issued 96,245 Equity shares on exercise of options granted under the Employee Stock Option Plan 2006 of Max Financial Services Limited under the Corporate Restructuring plan.

The Company has issued 221,333 equity shares during the year ended March 31, 2018 and 57,208 Equity shares during the year ended March 31, 2017 on exercise of options granted under the Employee Stock Option Plan 2016 of Max Ventures and Industries Limited, for details refer note 30.3.

f) Increase in Authorised Share Capital

Pursant to shareholders approval in December 2017, the company has increased its authorised share capital from Rs. 11,000 lakhs to Rs. 15,000 lakhs

Vehicle loan :-

Vehicle loans amounting to Rs. 8.71 lakhs (March 31, 2017 - Rs. 8.78 lakhs; , April 1, 2016 - Nil) are secured by way of hypothecation of vehicle. The loans are repayable in 3 years. Interest rate 8.75%-9.40%

# Trade payables include due to related parties Rs. 127.30 lakhs ( March 31, 2017 - Rs. 69.59 lakhs; , April 1, 2016 -Rs. 170.82 lakhs). Refer note 34(b)

Trade payables are non interest bearing and generally have credit term of 60-90 days.

* Details of dues to micro and small enterprises as per MSMED Act, 2006

As per the Act, the Company is required to identify the micro and small suppliers and pay them interest on overdue beyond the specified period irrespective of the terms agreed with such suppliers. Based on the information available with the Company, none of the creditors have confirmed the applicability of act on them. Hence, the liability of the interest and disclosure are not required to be disclosed in the financial statements.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

The Company has business losses in March 31, 2017 of INR 193 lacs (March 31, 2016 : Nil) that are available for offsetting against future taxable profits of the Company which will expire in March 2025. The permanent and temporary differences for the year ended March 31, 2018 are based on the draft tax computation for the said year

Guarantee of 100% of bank loan of Wise Zone Builders Private Limited, step down subsidiary to the maximum amount of Rs. 25,000 lakhs (March 31, 2017 - Nil , April 1, 2016 - Nil) from IDFC Bank Limited and Rs. 15,000 lakhs ( March 31, 2017 - Nil , April 1, 2016 - Nil) from Axis Bank Limited . Carrying amount of the related corporate guarantee is Rs. 25,000 lakhs (March 31, 2017 - Nil , April 1, 2016 - Nil) from IDFC Bank Limited and Rs. 1,600 lakhs (March 31, 2017 - Nil , April 1, 2016 - Nil) from Axis Bank Limited

b Operating lease commitments - Company as lessee

The Company has entered into operating leases for its office spaces under operating lease agreements. The lease rental expense recognised in the statement of profit and loss for the year is Rs. 170.69 Lakhs ( March 31, 2017 - Rs. 159.59 Lakhs). The Company has not entered into sublease agreements in respect of these leases and there are no restrictions placed upon the Company by entering into these leases.

Guarantee of 100% of bank loan of Wise Zone Builders Private Limited, step down subsidiary to the maximum amount of Rs. 25,000 lakhs (March 31, 2017 - Nil , April 1, 2016 - Nil) from IDFC Bank Limited and Rs. 15,000 lakhs ( March 31, 2017 - Nil , April 1, 2016 - Nil) from Axis Bank Limited . Carrying amount of the related corporate guarantee is Rs. 25,000 lakhs (March 31, 2017 - Nil , April 1, 2016 - Nil) from IDFC Bank Limited and Rs. 1,600 lakhs (March 31, 2017 - Nil , April 1, 2016 - Nil) from Axis Bank Limited

b Operating lease commitments - Company as lessee

The Company has entered into operating leases for its office spaces under operating lease agreements. The lease rental expense recognised in the statement of profit and loss for the year is Rs. 170.69 Lakhs ( March 31, 2017 - Rs. 159.59 Lakhs). The Company has not entered into sublease agreements in respect of these leases and there are no restrictions placed upon the Company by entering into these leases.

2. INVESTMENT IN SUBSIDIARIES

(a) These financial statement are separate financial statements prepared in accordance with Ind AS-27" Separate Financial Statements".

3. GRATUITY (UNFUNDED)

The Company has a defined benefit gratuity plan. Under Gratuity Plan, every employee who has completed five years or more of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age.

Description of Risk Exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow:

i) Salary Increases- Actual salary increases will increase the Plan's liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

ii) Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan's liability.

iii) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

h) The average duration of the defined benefit plan obligation at the end of the reporting period is 22 Years (March 31, 2017 : 20 years; March 31, 2016 : 15 years)

i) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

j) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations. k) The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Risk Exposure

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements)

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

4. LEAVE ENCASHMENT (UNFUNDED)

The Company recognises the leave encashment expenses in the Statement of Profit and loss based on actuarial valuation

5. EMPLOYEE STOCK OPTION PLAN

Employee Stock Option Plan - 2006 ("the 2006 Plan"):

1) Pursuant to the Scheme of Demerger, with respect to the employee's stock options granted by the DeMerged company i.e. Max Financial Services Limited (MFS) to its employees (irrespective of whether they continue to be employees of MFS or become employees of the Company) shall be allotted one stock option by the Company under the new ESOP scheme for every five stock option held in MFS. Accordingly, ESOP outstanding as on the effective date in MFS shall be allocated between the demerged company and resulting companies. Accordingly, 500,712 stock options were granted to the employees of MFSL and outstanding as on Effective date i.e. January 15, 2016 are eligible for stock options under new ESOP scheme on similar terms and conditions.

2) The Company has constituted an Employee Stock Option Plan - 2016 which have been approved by the Board in the meeting held on 9th August 2016 and by shareholders of the Company in its annual general meeting held on September 27, 2016 based on similar terms and conditions to the relevant ESOP plan of MFSL. During the year ended March 31, 2018, 221,333 ( March 31, 2017 - 57,208) nos of stock options were allotted to the aforesaid option holders by the Company. The 2016 Plan provides for grant of stock options aggregating not more than 5% of number of issued equity shares of the Company to eligible employees of the Company. The 2016 Plan is administered by the Nomination and Remuneration Committee constituted by the Board of Directors.

The 2016 Plan gives an option to the employee to purchase the share at a price determined by Nomination and Remuneration committee (NRC) subject to minimum par value of shares (Rs. 10/-). The Company has valued Employee Stock Option outstanding as at year end presuming all the employees will exercise their option in favor ofcashsettlementorequitysettlementbasedontrend.Nooptionsweregranted/vested/exercisedduringtheyear.

6. PHANTOM STOCK POLICY ( CASH SETTLED)

During the year, Nomination & Remuneration Committee has approved the Phantom stock policy (PSP) where during the year, company has granted 172,761 units to its employees that entitle them to a cash payment after exercise of option on its vesting date. The amount of cash payment is determined based on the increase in the share price of the company between grant date and the time of exercise.

NRC has approved conversion of unvested phantom stock option of its employees into ESOP w.e.f April 1, 2018 where unvested Phantom stock options (cash settled) i.e. 144,333 units will get converted into Employee stock option (equity settled) and employees will be entitled for 193,570 employee stock options under Employee Stock Option Plan - 2016. Total ESOP grant value is determined based on estimated benefit value for unvested PSPs as originally anticipated at time of PSP grant, plus a top up benefit to compensate for delayed vesting. However, the liability recognised under this PSP plan of Rs. 23.12 lakhs doesn't have any material impact on conversion of plan.

7. PROVIDENT FUND

The Company is participating in a provident fund trust "Max Financial Services Limited Employees Provident Trust Fund" which is a common fund for Max India Limited and its affiliates, which is managed by Max Financial Services Limited. The provident fund trust requires that interest shortfall shall be met by the employer, accordingly it has been considered as a defined benefit plan as per Ind AS-19.

The interest rate payable to the members of the Trust shall not be lower than the statutory rate of interest declared by the Central government under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and shortfall, if any, shall be made good by the Company.

The Actuarial Society of India has issued the final guidance for measurement of provident fund liabilities. The actuary has accordingly provided a valuation for "Max Financial Services Limited Employees Provident Trust Fund" which is a common fund for Max Financial Services Limited and its affiliates based on assumptions provided below.

8. SEGMENT INFORMATION

As the Company's business activity primarily falls within a single business and geographical segment, thus there are no additional disclosures to be provided under Ind AS 108 - " Operating Segment'. The management considers that having investments in various subsidiaries and providing shared services to group companies constitutes single business segment, since the risk and reward from these services are not different from one another. The Company has 3 major customers contributing to 10% or more of total amount of revenue.

Non - current operating assets

The company has non- current operating assets within India. Hence, separate figures for domestic as well as overseas market are not required to be furnished.

The management assessed that trade receivables, cash and cash equivalents, other bank balances, loans and advances to related parties, interest receivable, trade payables, capital creditors are considered to be the same as their fair values, due to their short term nature.

The fair value of the financial assets and liabilities is 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 methods and assumptions were used to estimate the fair values:

Long Term Fixed-rate borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

The Company has investment in quoted mutual funds being valued at quoted market price in active markets. The fair value of non - current investment, loans taken, other financial assets and other financial liabilities are estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities. The valuation requires management to use observable inputs in the model, of which the significant observable inputs is the market rate of interest of 11%. Management regularly assesses a range of reasonably possible alternatives for those significant observable inputs and determines their impact on the total fair value.

9. A. FAIR VALUE HIERARCHY

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data

10. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company has instituted an overall risk management programme which also focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company's financial performance. The Corporate Finance department, evaluates financial risks in close co-operation with the various stakeholders. The Company is exposed to capital risk, market risk, credit risk and liquidity risk. These risks are managed pro-actively by the Senior Management of the Company, duly supported by various Groups and Committees.

a) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company employees prudent liquidity risk management practices which inter alia means maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities. Given the nature of the underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability under committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future commitments. Cash flow forecasts are prepared not only for the entities but the Group as a whole and the utilized borrowing facilities are monitored on a daily basis and there is adequate focus on good management practices whereby the collections are managed efficiently. The Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner that these match with the generation of cash on such investment.

b) 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 including deposits with banks, foreign exchange transactions and other financial assets.

(i) Trade receivables

Customer credit risk is managed subject to the Company's established policy, procedures and control relating to customer credit risk management. Management evaluate credit risk relating to customers on an ongoing basis. Receivable control management team assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Outstanding customer receivables are regularly monitored . An impairment analysis is performed at each reporting date on group\category basis. The calculation is based on exchange losses historical data and available facts as on date of evaluation. The Company evaluates the concentration of risk with respect to trade receivables as low, as its receivables are from its related parties, therefore it is not exposed to any risk.

(ii) Financial instruments and cash deposit

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments of surplus funds are made in bank deposits and other risk free securities. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party's potential failure to make payments. Credit limits of all authorities are reviewed by the management on regular basis. All balances with banks and financial institutions is subject to low credit risk due to good credit ratings assigned to the Company.

The Company's maximum exposure to credit risk for the components of the balance sheet at March 31, 2018, March 31, 2017 and April 1, 2016 is the carrying amounts as illustrated in note 5,6 and 9.

c) 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 risks comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at March 31, 2018, March 31, 2017 and April 1, 2016. The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2018 & March 31, 2017.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue, expense or capital expenditure is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods in foreign currency. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Foreign currency risk sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD and GBP exchange rates, with all other variables held constant. The impact on the company profit before tax is due to changes in the fair value of monetary assets and liabilities.

a) The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.

b) The Company has given corporate guarantee for Wise Zone Builders Private Limited, step down subsidiary amounting to Rs. 40,000 lakhs (March 31, 2017: Nil, April 1, 2016 : Nil). Refer note 28

c) The income/expense from sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

d) For the year ended 31 March 2018, the Group has recorded provision for receivables relating to amounts owed by one of its subsidiary company Rs. 859.42 lakhs (31 March 2017: Rs. Nil, 1 April 2016: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

11. FOOTNOTES TO THE RECONCILIATION OF EQUITY AS AT MARCH 31, 2017, MARCH 31, 2016 AND PROFIT OR LOSS FOR THE YEAR ENDED MARCH 31, 2017

1) Security deposits

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, all financial assets are required to be recognized at fair value. Accordingly, the company has fair valued these security deposits under IND AS. Difference between the fair value and transaction value of the security deposit has been recognized as prepaid expenses. Amortization of prepaid expenses has been recognized in other expenses which is partially set off with notional interest income in statement of profit & loss.

2) Remeasurements of post-employment benefit obligations

Both under previous GAAP and IND AS, the Company recognized costs related to its post employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to statement of profit or loss. Under IND AS, measurements (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined liability) are recognized in balance sheet through other comprehensive income.

3) Other comprehensive Income

UnderINDAS,allitemsofincomeandexpenserecognisedinaperiodshouldbeincludedinprofitorlossfortheperiod, unless a standard requires orpermits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as 'other comprehensive income' and includes remeasurement of defined benefit plans. The concept of other comprehensive income did not exist under Indian GAAP.

4) Statement of cash flows

The transition from Indian GAAP to IND AS has no material impact on the statement of cash flows

5) Mutual Fund investments

Under Indian GAAP, All current investments including mutual funds are measured at lower of cost or market value. As per IND AS 109, Investments in mutual funds are required to be recognized at their fair value, for which changes in fair value being recognized in profit & loss.

6) Zero Coupon non-convertible debentures

In the financial statements prepared under previous GAAP, the carrying value of zero coupon non convertible debentures was recognised at the principal amount payable by the borrower. Under IND AS, interest free non convertible debentures being a financial asset is required to be recognised intially at fair value and subsequently measured at amortised cost using the effective interest method. The difference between such fair value and the carrying value is recognised as investment in equity disclosed under investments

7) Straight lining of lease escalation

Indian GAAP mandated straight lining of lease escalation in case of non cancellable leases. IND AS 17 does not mandate straight lining of lease escalation, it they are in line with the expected general inflation compensating the lessor for expected inflationary cost. Accordingly, the Company has reversed Lease equalisation reserve created in books

8) Deferred tax

IND AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. In addition, the various transitional and restatement adjustments lead to temporary differences.

9) Share issue expenses

Under the Indian GAAP, share issues expense is to be charged to the statement of profit and loss. Under IND AS, share issue expenses will deducted from the securities premium account

10) Retained earnings

Retained earnings as at March 31, 2017 has been adjusted consequent to the IND AS transition adjustments mentioned herewith

12. FIRST TIME ADOPTION OF IND AS (EXCEPTION AND EXEMPTION AVAILED)

These financial statements, for the year ended March 31, 2018, have been prepared in accordance with IND AS notified under the Companies Indian Accounting Standard Rules, 2015.

Accordingly, the Company has prepared financial statements which comply with IND AS for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company's opening balance sheet was prepared as at April 1, 2016, the Company's date of transition to IND AS. This note explains the IND- AS mandatory exceptions and exemptions by the Company in restating its Indian GAAP financial statements, including the financial statements as at and for the year ended March 31, 2017 and balance sheet as at March 31,2016.

Exemption Applied

I) IND-AS optional exemption

IND AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under IND AS. The Company has applied the following exemptions:

Deemed cost

IND AS 101 permits a first time adopter to elect to fair value of its property, plant and equipment as recognized 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 recognized 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 its property, plant and equipment as its deemed cost on the date of transition to IND AS.

Share based payment transactions

IND AS 101 permits a first time adopter to elect not to apply principles of IND AS 102 to liabilities arising from share based payment transactions that were settled before the date of transition.

The Company has elected not to apply IND AS 102- "Share based payment" on stock options that vested before date of transition.

Investments in subsidiaries

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 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".

Business Combinations

The Company has used the exemption under IND AS 101 at the date of transition to Ind- AS i.e. carrying amounts of assets and liabilities, that are required to be recognized under Ind - AS, is their deemed cost at the date of acquisition. After the date of acquisition, measurement is in accordance with the respective IND AS. The Company recognizes all assets and liabilities assumed in a past business combination.

II) IND AS mandatory exceptions 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.

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.

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.

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 were initially recognized and compare it to the credit risk at the date of transition to IND AS. The Company has applied this exception prospectively.

13. a) During the year ended March 31, 2017, the Company has issued 15,523,870 equity shares of Rs. 10/each at security premium of Rs. 68/- per share determined in accordance with SEBI (issue of Capital and Disclosure Requirements) Regulations, 2009, as amended ("ICDR Regulations); to New York Life International Holdings Limited (the "Investor") for the consideration of Rs. 12,108.62 Lakhs on preferential basis.

b) Further, during the year ended March 31, 2017, the Company received Rs.672.53 Lakhs (25% of total value of consideration) against the issue of 3,448,894 share warrants ("Warrants") to Siva Enterprises Private Limited, forming part of the Promoter Group at a price of Rs.78 per share determined in accordance with ICDR regulations. The Company has received Rs.2,017.60 Lakhs against the balance 75% outstanding of total value on conversion of share warrants ("Warrants") into equity shares.

14. a) On April 03, 2017, the Company has purchased 338,350 equity shares of Max Speciality Films Limited face value of Rs.10/- each from Pharmax Corporation Limited at a premium of Rs.94.27 per share aggregating to a total consideration of Rs.352.80 Lakhs.

b) On April 06, 2017, the Company divested 35.84% (on fully diluted basis of equity shares as at March 31, 2017) stake in Max Speciality Films Limited (MSF) by transferring 13,945,659 equity shares of Rs.10/-each at a premium of Rs.94.27 per share to Toppan Printing Co. Ltd. (Toppan) for a consideration of Rs.14,541.14 Lakhs. Further, MSF also issued and allotted 5,118,407 equity shares (representing 13.16% on fully diluted basis of equity shares as at March 31, 2017) of face value of Rs.10/- each at a premium of Rs. 94.27 per share to Toppan, for an aggregate consideration of Rs.5,336.96 Lakhs on a private placement basis, free of all liens or other encumbrances or rights of third parties. Post share issuance by MSF, Toppan holding is 49% and the Company holding is 51% in MSF. This has resulted into gain of Rs.7,500.32 Lakhs.

15. During the current year, the Board of the Company has approved raising of funds by way of offer and issue of equity shares to the existing members of the Company on rights basis (Rights Issue), at such price and right entitlement ratio as may be decided by the Board, for an amount aggregating up to Rs. 45,000 lakhs, subject to necessary approvals and consent as may be necessary / required for compliance of applicable laws, including the provisions of the SEBI (ICDR) Regulations, 2009, as amended, the SEBI (LODR) Regulations, 2015, as amended, and the Companies Act, 2013,as amended and Company has filed the Draft letter of offer with SEBI and stock exchanges.

16. CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital attributable to the equity shareholders of the Company, securities premium and all other equity reserves. The primary objective of the Company's capital management is that it maintain an efficient capital structure and maximize the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep the gearing ratio between 20% to 40%. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

17. The figures have been rounded off to the nearest Lakhs of rupees up to two decimal places. The figure 0.00 wherever stated represents value less than Rs. 50,000/-.