Notes:

1) Freehold Land includes Rs. 9,735.11 Lakh situated at Nagpur, which is under possession of a lender as per the Order of Hon'ble High Court of Bombay dated 9 th May, 2013.

2) Land measuring 42.59 Acres amounting to Rs. 7,499.35 Lakh is used for Domestic warehousing purpose located at Khurja, Bulandshahr, Uttar Pradesh.

3) In accordance with the Indian Accounting Standard (IND AS -36) on "Impairment of Assets", the management during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said IND AS. On the basis of this review carried out by the management, there was no impairment loss on property, plant and equipment during the year ended 31st March, 2018.

4) The carrying value (Gross Block less accumulated depreciation and amortisation) as on 1st April, 2016 of the Property, plant and equipment is considered as a deemed cost on the date of transition.

(All the above equity shares are fully paid up)

@ As per debt covenents the Company is required to pledge 100% of the shareholding in favor lenders however the Comapny has pledged following number equity shares only:

i) 31st March, 2018 - 79,46,624 (31st March 2017 - 79,46,624, 1st April, 2016 - 79,46,624) equity shares in Arshiya Northern FTWZ Limited,

ii) 31st March, 2018 - 1,35,86,659 (31st March, 2017 - 1,35,86,659, 1st April, 2016 - 1,35,86,659) equity shares in Arshiya Industrial

& Distribution Hub Limited,

iii) 31st March, 2018 - 3,87,32,491 (31st March, 2017 - 3,87,32,491, 1st April, 2016 - 3,87,32,491) equity shares in Arshiya Rail Infrastructure Limited and

iv) 31st March, 2018 - Nil (31st March, 2017 - Nil, 1st April, 2016 - 1,10,50,000) equity shares in Arshiya Central FTWZ Limited

(a) Terms and rights

(i) Terms and rights attached to equity shares

The Company has one class of equity share having a par value of Rs. 2 per share. Each holder of equity share is entitled to one vote per share. The shareholders who held shares on the record date are entitled to dividend as may be proposed by the Board of Directors and is subject to approval of the Shareholders at the ensuing 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 the proportion to the number of equity shares held by the shareholders.

(ii) Terms and rights attached to 0% Optionally Convertible Redeemable Preference Shares (OCRPS)

The Company has five class of optionally convertible redeemable preference shares (OCRPS I / II / III / IV / V) having a par value of Rs. 10 per share. Each holder of OCRPS has right / entitled to convert into equity shares within 18 months from the date of issue or redemption on or after 20 years in terms of special resolution passed on 29th April, 2017 and 29th January, 2018 as per applicable provisions of Companies Act, 1956/Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulation.

(b) Reconciliation of equity shares and optionally convertible preference shares

(d) During the year the Company had allotted to the Promoter Directors 1,00,00,000 equity shares and 1,00,00,000 share warrants of Rs. 2/- each at a premium of Rs.58.35 per share on preferential basis pursuant to the Restructuring Agreement dated 31st March, 2017 and in terms of special resolution passed on 29th April, 2017 as per applicable provisions of Companies Act, 1956/ Companies Act, 2013 and SEBI (Issue of Capital and Disclosure Requirements) Regulation. 85,00,000 share warrants out of1,00,00,000 share warrants have been converted into Equity shares on 8th November, 2017.

Subsequent to the year end, in the Board Meeting held on 20th April, 2018 the Company has allotted 15,00,000 Equity Shares of face value of Rs.2 each to the Promoter upon conversion of equal number of warrants.

Nature and purpose of Reserve and Surplus: (a) Securities Premium Account:

Securities premium account is created to record premium received on issue of equity shares. The reserve is utilized in accordance with the provision of the Companies Act, 2013.

(b) General Reserve:

General Reserve is used for time to time to transfer of profits from Retained Earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.

(c) Amalgamation Reserve:

Amalgamation reserve is created on account of scheme of amalgamation of erstwhile BDP (India) Private Limited with the Company approved by the Hon'ble High Court of Judicature at Bombay in earlier years.

d) Retained Earnings:

Retained Earnings are the profit/(loss) of the Company earned till date net of appropriations.

The details of security, terms of repayment and interest on non-current borrowings (which includes current maturities) obtained by the Company are given below: 18.1 Rupee Term loan from Bank

(1) Details of security

(a) Rupee term loan of Rs. Nil (31st March, 2017 - Rs. 2,771.93 Lakh, 1st April, 2016 - Rs. 55,575.17 Lakh) are secured by

(i) First charge on all the present and future movable and immovable property, plant and equipment including intangible assets, assignment of rights and benefits but excluding project assets for Khurja FTWZ project, Khurja Distripark Project, Nagpur project and Rail Project on pari passu basis.

(ii) Second charge on Current Assets of the Parent Company but excluding current assets for Khurja FTWZ project, Khurja Distripark Project, Nagpur project and Rail Project on pari passu basis.

(iii) The above loans are secured by personal guarantees of two Promoter Directors of the Company.

(iv) The loans are secured by pledged of shares held by the two Promoter Directors of the Company.

(2) Terms of Interest rate

(i) Rate of Interest is @ 13% p.a. for the 2016-17.

18.2 Rupee Term loans from Other Parties (1) Rupee term loan of Rs. 59,359.23 Lakh (31st March, 2017 - Rs. 70,863.53 Lakh, 1st April, 2016 - Rs. 46,782.87 Lakh): (a) Security provided:

(i) First charge in all the present and future movable and immovable property, plant and equipment including intangible assets, assignment of rights and benefits but excluding project assets for khurja FTWZ project, Khurja Distiripark Project, Nagpur project and Rail project on pari passu basis.

(ii) Second charge on current assets of the Company but excluding current assets for khurja FTWZ project, Khurja Distripark Project, Nagpur project and Rail project on pari passu basis.

(iii) first pari passu charge by way of hypothecation on the Panvel Receivables both existing and future of whatsoever nature.

(iv) The above loans are secured by personal guarantees of two Promoter Directors of the Company.

(v) The loans are secured by pledged of shares held by the two Promoter Directors of the Company.

(b) Terms of Interest rate

(i) Rate of Interest is @ 10% p.a. (2016-17 - 10% p.a.)

(d) The Company has been in default for the repayment of principal amount of Rs. 5,671.09 Lakh. (31st March, 2017 - Rs. Nil and 1st April, 2016 - Rs. Nil).

(e) The amortised cost disclosed above is net off incidental cost of borrowings aggregating of Rs. 717.82 Lakh (31st March, 2017

- Rs. 871.85 Lakh, 1st April, 2016 - Rs. Nil).

(2) Rupee term loan of Rs. 2,672.34 Lakh (31st March, 2017 - Rs. 2,443.49 Lakh, 1st April, 2016 - Rs. 4,935 Lakh)

(a) Securities provided

(i) Second charge by way of equitable mortgage/hypothecation on the entire immovable and movable property, plant and equipment of the Company on pari-passu basis.

(ii) The above loans are secured by personal guarantees of two Promoter Directors of the Company.

(b) Terms of Repayment:-

Rupee term loan is repayable in 13 structured quarterly instalments commencing from 31st January, 2018.

(c) The Company has been in default for the repayment of principal amount of Rs. 428 Lakh. (31st March, 2017 - Rs. Nil and 1st April, 2016 - Rs. Nil)

(d) The amortised cost disclosed above is net off incidental cost of borrowings aggregating of Rs. 405.66 Lakh (31st March, 2017

- Rs. 631.51 Lakh, 1st April, 2016 - Rs. Nil).

(3) Rupee loan of Rs. 3,189.79 Lakh (31st March, 2017 - Rs. Nil, 1st April, 2016 - Rs. Nil)

(a) Securities provided

(i) Second charge on movable and immovable Panvel assets of the Company except for the excluded properties under Lease Agreement dated 3rd February, 2018

(ii) Second charge on present and future receivables of the Company.

(iii) The above loans are secured by personal guarantees of two Promoter Directors of the Company.

(b) Terms of Interest rate

(i) Rate of Interest is @ 14.50% p.a.

(c) Terms of Repayment:-

Rupee term loan is repayable in Bullet payment at the end of the tenure of loan i.e. 36 months.

(d) The amortised cost disclosed above is net off incidental cost of borrowings aggregating of Rs. 10.21 Lakh (31st March, 2017 - Rs. Nil, 1st April, 2016 - Rs. Nil).

(22.1) Working capital facility (Cash Credit) from banks: Rs. Nil (31st March, 2017 - Rs. 3,996.91 Lakh, 1st April, 2016 - Rs. 5,996.91 Lakh)

(i) Securities provided :

- First charge on entire Current Assets of the Company but excluding current assets for Khurja FTWZ project, Khurja Distripark Project, Nagpur project and Rail Project.

- Second charge on all the present and future movable and immovable property, plant and equipment assignment of rights and benefits but excluding project assets for Khurja FTWZ project, Khurja Distripark Project, Nagpur project and Rail Project.

(ii) The above loans are secured by personal guarantees of two Promoter Directors of the Company.

(iii) The loans are secured by pledged of shares held by the two Promoter Directors of the Company.

(iv) Terms of interest:

Rate of interest on working capital is @ 13% p.a.(31st March, 2017 - 13% p.a.)

(22.2) Loan from Other Parties

(1) Loan of Rs. 8,474.04 Lakh (31st March, 2017 - Rs. Nil, 1st April 2016 - Rs. Nil)

(1) Securities provided

- First Ranking charges on all present and future cash flows, all assets and movable collateral available to the existing lenders of the Company as per the Deed of Hypothecation.

- The above loans are secured by personal guarantees of two Promoter Directors of the Company.

(ii) Terms of interest: @ 18% p.a.

(2) Loan of Rs. Nil, (31st March, 2017 - Rs. Nil, 1st April, 2016 -Rs. 4,935 Lakh) had been restructured into term loan as per consent term. (Refer Note No. 18.1.2)

(22.3) Loans from promoter directors are interest free and repayable on demand.

(22.4) Unsecured Loan from Inter Corporate Deposits:

(i) Interoperate Deposit of Rs. 77 Lakh (31st March, 2017 - 77 Lakh, 1st April, 2016 - 187 Lakh) is interest free and repayable on demand.

(ii) Interoperate Deposit of Rs. Nil (31st March, 2017 - Rs. 800 Lakh, 1st April, 2016 - Rs. Nil) : interest @ 20% p.a.

(iii) Loan of Rs. Nil (31st March, 2017 - Rs. Nil, 1st April, 2016 - Rs. 500 Lakh)

(a) The above loans are secured by personal guarantees of two Promoter Directors of the Company.

(b) Rate of interest on said loan is 12% p.a.

(A) Term loans from Bank - Rs. 1,491.67 Lakh (31st March, 2017 - Rs. Nil, 1st April, 2016 - Rs. Nil) - (Refer Note No. 46.1)

(i) Securities provided

- Second charge on movable and immovable property, plant and equipment’s of the Company, present and future on pari-passu.

(ii) The above loan is secured by personal guarantees of two Promoter Directors of the Company.

(iii) Terms of Interest rate:

Rate of interest is @ 12% p.a.

(iv) Terms of Repayment & Default

During the year bank has been recalled loan of Rs. 1,491.67 Lakh and interest (including penal interest) of Rs. 32.15 Lakh.

(B) Term loans from Other Parties

(1) Loan of Rs. 5,000 Lakh (31st March, 2017 - Rs. 6,900 Lakh, 1st April, 2016 - Rs. 6,900 Lakh) (Refer Note No. 37)

Secured by first and exclusive charge on land situated at Village Butibori at Nagpur, Maharashtra. The said loan carries interest @ 15.25% p.a.

(2) Loan of Rs. 1,951.52 Lakh (31st March, 2017 - Rs. 2,465.72 Lakh, 1st April, 2016 - Rs. 2,666.67 Lakh) (Refer Note No. 43)

(i) 'Secured by first and exclusive charge on land situated at Khurja, Bulandshahr, Uttar Pradesh.

(ii) The Company has been in default for the repayment of principal amount of Rs. 975 Lakh. (31st March, 2017 - Rs. Nil and 1st April, 2016 - Rs. Nil)

(iii) The amortised cost disclosed above is net off incidental cost of borrowings aggregating of Rs. 23.48 Lakh (31st March, 2017

- Rs. 200.95 Lakh, 1st April, 2016 - Rs. Nil).

1 Contingent Liabilities and Commitments

2 Contingent Liabilities (to the extent not provided for in respect of):

3. Capital commitments

Estimated amount of contracts remaining to be executed on capital and other accounts and not provided for (net of advances paid) are Rs. Nil (31st March, 2017 - Rs. Nil, 1st April, 2016 - Rs. 1,493.04 Lakh)

36 Certain lenders and creditors have filed winding up petitions/cases/other legal proceedings against the Company and its Directors for recovery of the amounts due to them which are at different stages before the respective judicial forums/authorities. Claims by the said lenders and creditors have been contested by the Company in those proceedings and not acknowledged as debts. The financial implication of such claims will be recognized as and when finality in the matter is reached.

37 A Public Financial Institution (PFI) agreed to settle their outstanding loan constituting principle and interest of Rs. 16,700 Lakh. Settlement terms and conditions involves payment of Rs. 5,000 Lakh which is secured by land at Nagpur and for balance amount of Rs. 11,700 Lakh, allotment of Optionally Convertible Redeemable Preference Shares - V (OCRPS - V), convertible up to 15.50.000 equity shares at the option of the PFI. Considering the same, necessary effect has been given in the books of accounts during the year. As per shareholder approval in the EOGM dated 29th January 2018, the company has approved allotment of 11.70.000 OCRPS - V and the same was converted into 15,50,000 Equity shares on 22nd February, 2018 as per settlement terms agreed. Subsequently in the Honourable High Court of Bombay, the company has made the representation that post allotment of the equity shares as exercised by the PFI, the total outstanding debt remains at Rs. 5,000 lakhs and the same would be paid on or before 30th June, 2018 which is yet to be confirmed by the PFI. The matter is still to be concluded by the Honourable High Court of Bombay.

4. Employee Benefits

5. Disclosure pursuant to Indian Accounting Standard (IND AS) 19 - Employee Benefits

(a) Defined Contribution Plan:

Contribution to Defined Contribution Plan, recognised as expenses for the years are as under:

(b) Brief descriptions of the plans

The Company's defined contribution plans are Provident Fund and Employees State Insurance where the Company has no further obligation beyond making the contributions. The Company’s defined benefit plans include gratuity. The employees are also entitled to leave encashment as per the Company's policy.

(d) Defined benefit plan - Gratuity:

The employee's Gratuity fund is managed by the Life Insurance Corporation of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognised each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up to final obligation.

(e) Salary escalation assumption has been set in discussions with the enterprise based on their estimates of overall long-term salary growth rates after taking into consideration expected earnings inflation as well as performance and seniority related increases.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined obligation liability recognised in the balance sheet.

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

(a) Interest risk - A decrease in the discount rate will increase the plan provision.

(b) Longevity risk - The present value of the defined benefit plan provision is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants. As such, an increase the plan's provision.

(c) Salary risk - The present value of the defined plan provision is calculated by reference to the future salaries of plan participants. As such, as increase in the salary of the plan participants will increase the plan's provision.

6. The weighted average duration of the defined benefit obligation at the end of the reporting period is 6 years (31st March, 2017 - 6.6 years).

7. Preparation of financial statements on “ Going Concern” basis

The Company has accumulated losses and certain creditors have initiated legal proceeding against the Company and its Directors for recovery of the amounts due. However in these cases, the Company has executed consent terms or is in the process of finalizing consent terms with the creditors.

The Company has given its warehouses on long term lease and received upfront lease payments. The management has also initiated various other steps such as construction and future development within the FTWZ, restructuring the Company and if s subsidiaries business operations. Considering the strength of Company’s locational advantages, future outlook as assessed by the management and business plan, the Company is confident to continue as a going concern. The long term prospects of the Company, however, are dependent on various factors and financial statements have accordingly been continued to be prepared on going concern basis.

8. Loans from various lenders have been assigned by banks to Edelweiss Assets Reconstruction Company Limited (EARC). EARC had restructured the loan and executed the Restructuring Agreement (RA) dated 31st March, 2017. In accordance with RA, EARC has converted part debt into restructured debt, balance assigned loan is to be converted into 3,21,62,304 equity shares and 64,23,329 zero percent optionally convertible redeemable preference shares (OCRPS - Series I) of face value of Rs.10 each at a price of Rs.1,000 each (including premium of Rs.990) of the Company, as per extant SEBI rules and regulations.

Certain lenders of wholly owned subsidiaries viz, Arshiya Rail Infrastructure Limited (ARIL), Arshiya Northern FTWZ Limited (ANFL) and Arshiya Industrial and Distribution Hub Limited (AIDHL) have also assigned their loan to EARC pursuant to Restructuring Agreement executed by respective subsidiaries dated 31st March 2017. Loan amounting to Rs. 43,200 Lakh have been restructured by allotment of 43,20,000 zero percent optionally convertible redeemable preference shares (OCRPS Series

II / Series III / Series IV) of face value of Rs. 10 each at a price of Rs. 1000 each (including premium of Rs. 990) of the Company. These OCRPS are allotted to EARC in exchange of OCRPS of subsidiaries issued to EARC. These OCRPS have right of conversion into equity shares of Company at the option of EARC. On conversion the entire amount of OCRPS Series II / Series III / Series IV shall be adjusted against allotment of 1,19,11,962 equity shares of Company to EARC.

During the year ended 31st March, 2018:-

(i) In aggregate 4,56,62,304 equity shares of 2 each (including equity shares on conversion of OCRPS Series I, II, III and IV) have been allotted to EARC.

(ii) Pursuant to RA, the promoters of the Company have also been allotted 1,85,00,000 equity shares, including 85,00,000 equity shares allotted on conversion of 85,00,000 warrants out of 1,00,00,000 warrants issued.

(iii) Allotted 25,00,000 equity shares on conversion of warrants to non-promoters.

9. The Company has made substantial repayment as agreed in amortisation schedule of Restructuring Agreement (RA) during the year ended 31st March, 2018. As per debt covenant, the Company is required to adhere to repayment schedule and any short payment gives Edelweiss Asset Reconstruction Company (EARC) the right to convert whole of the outstanding amount of restructured rupee loan and/or part of the default amount into fully paid up equity shares of the Company. No such notice of conversion in writing has been given by EARC and the Company continues to disclose the amount as non-current and current borrowings as per repayment schedule, in the Balance Sheet.

The Company is liable to pay penal interest of Rs. 1,065.91 Lakh on the unpaid and delayed amounts for the year ended 31st March, 2018 which has not been provided. Had the Company provided the above interest, the finance cost would have been higher to that extent for the year ended and total comprehensive income would have been lower to that extent having consequential impact on other equity and financials liabilities.

10. In respect of consent terms with a Non-Banking Finance Company (NBFC), the Company had signed Supplementary Consent Terms (SCT) with the NBFC in respect of settlement of borrowing. The SCT mainly stipulates revised "Schedule of Payments" and penal interest. The Company has defaulted in making payments as per the SCT. As per provisions of the SCT, if schedule of payment is not complied with, the entire debt prior to date of settlement of dues shall become payable along with interest as per transaction documents till the realisation of entire debt. However the Company has not reversed amount written back on settlement of first consent terms of Rs. 1719.59 Lakh and not accrued interest amounting to Rs. 237.50 Lakh. Had the Company reversed the amount written back and made provision for interest, finance cost and other income would have been higher by amount as mentioned above, having consequential impact on total comprehensive income, other equity and financial liabilities.

11 Corporate Guarantees

The Company has given corporate financial guarantees to the lead bank on behalf of one of the wholly owned subsidiary. This subsidiary has defaulted in repayment of its loan obligations and two lenders of the consortium have initiated legal recovery proceeding including invocation of corporate guarantees given by the Company for recovery of outstanding dues of Rs 23,563.38 Lakh. The Company has made its representation to the banks offering compromise settlement, which is under consideration and till date no adverse order has been received by the Company.

The Company is yet to assess the changes in risk/expected cash shortfall to determine any credit loss to be recognised in respect of these financial guarantees. No accounting impact of the same is recognised in the books of account at this stage pending settlement of the matter.

12. Investments

13. The Company has elected to apply previous GAAP carrying amount as deemed cost on the date of transition to Ind AS for its equity investments in subsidiaries. These subsidiaries are implementing their respective business restructuring and revival plans, hence based on the assessment carried out by the management of the Company, no impairment loss on investment in subsidiaries is considered necessary.

14. The Company has divested its entire investment in a subsidiary company namely Arshiya Supply Chain Management Private Limited (ASCM). As a result, the company has accounted net loss of Rs. 4,338.19 lakhs for the year ended 31st March, 2018 and this loss is grouped under exceptional item.

15. Mark to Market Losses (MTM)

16. Axis Bank

(i) The Company had terminated the cross currency swap derivative contract with Axis Bank Limited on 30th September, 2015 for an agreed value of Rs. 4,200 Lakh of which the balance as on 31st March, 2017 is Rs. 2,659.79 Lakh.

(ii) The Bank had restructured above liabilities are as under:

(a) Term Loan of Rs. 1,500 Lakh

(b) Investment in Equity shares of the Company for a balance amount of Rs. 1,159.79 Lakh as per SEBI (ICDR) Guidelines on Preferential Issue.

Shareholders in the Extra Ordinary General Meeting (EOGM) held on 29th January, 2018 approved the allotment of upto 10,50,000 Equity shares which have been issued on 22nd February, 2018.

17 Kotak Mahindra Bank Limited

In respect of derivative contracts entered into by the company with ING Vysya Bank (now amalgamated with Kotak Mahindra Bank Limited w.e.f. 1st April, 2015), the bank had prematurely terminated the contracts and had demanded termination and liquidation fees aggregating to Rs. 2,875 Lakh, which are disputed by the Company. However the Company had provided Rs. 1,621.93 Lakh.

The Company has entered into the consent terms with a Bank during the year ended 31st March, 2018. Pursuant to consent term, additional liability (net) amounting to Rs. 1,378.06 Lakh in respect of termination and liquidation fees of derivative contracts is accounted in the books of account. The Company has paid the amount as per the Consent Term during the year.

18 Cash Seized by Income Tax

The amount of Rs. 100 Lakh cash seized by the Income Tax department at the time of search on 13th June, 2014 is yet held with the department.

19 Remuneration of Rs. 114.82 Lakh paid/provided to the Executive Director for F.Y. 2013-14:

The Company had applied for waiver of recovery of excess remuneration of Rs. 83.52 Lakh paid to its Whole Time Director (Director) in the earlier year which was rejected by the Ministry of Corporate Affairs vide their letter dated 2nd June, 2016. In view of the same, as on 31st March, 2018 the Company has fully recovered the said amount.

20 Scheme of arrangement and amalgamation u/s 230 to 232 and other applicable provisions of the Companies Act, 2013 has been filed before the National Company Law Tribunal ("NCLT") between Arshiya Rail Infrastructure Limited (Transferee Company), Arshiya Industrial & Distribution Hub Limited (First Transferor Company) and Arshiya Transport & Handling Limited (Second Transferor Company) and their respective shareholders. The scheme is conditional on various approval / sanctions and is effective thereafter; accordingly no effect of the said Scheme is given in the consolidated financial results. Directions of NCLT are awaited for holding the creditor's meeting in respective companies. No accounting impact and disclosures is considered and necessary at this stage pending requisite regulatory approvals.

21 The Board of Directors of the company in their meeting held on 24th May, 2018, has approved a scheme to further reorganize its corporate structure spread across various group companies, in order to integrate/consolidate its operations by reorganizing different businesses into two entities.

This Scheme is presented under Sections 230 to 232 read with Sections 66 and 52 and other applicable provisions of the Companies Act, 2013 for demerger of "Domestic warehousing business" of the company into Arshiya Rail Infrastructure Limited. This proposed scheme of arrangement is conditional upon approval of an on-going scheme of group companies i.e. merger of Arshiya Rail Infrastructure Limited, Arshiya Industrial and Distribution Hub Limited and Arshiya Transport & Handling Limited, which is pending with NCLT. No accounting impact and disclosures is considered and necessary at this stage pending requisite regulatory approvals.

22 Maharashtra VAT Refund Receivable

As per the Notification dated 16th May, 2013, issued by the government of Maharashtra, MVAT exemption/refund is available to SEZ Developer after 15th October, 2011 (record date). However, the Company has claimed refund of Rs. 1,684.56 Lakh in respect of transactions prior to record date, as the Company is of the view that the state government has exempted it from local taxes, levies and duties on goods required for authorized operations by a Developer vide GR dated 12th October, 2001 passed by Industries, Energy and Labour Department, Government of Maharashtra. The Company has filed a writ petition in the High Court of Bombay challenging the constitutional validity of MVAT on various grounds and has claimed refund of Rs. 1,684.56 Lakh. The petition has been admitted and issues are framed and further hearing and final disposal is pending. Accordingly, these financial statements reflect a sum of Rs. 1,684.56 Lakh as refund receivable on account of MVAT. In case the refund is not granted, the necessary adjustment entries shall be recorded in the year in which finality is reached.

23 As per Ind-AS 108 “Operating Segment”, information has been provided along with the consolidated financial statements of the Group.

24 During the year, the Company has entered into Business Conducting and Services Agreement with Arshiya Lifestyle Limited (ALL) (wholly owned subsidiary) in relation to operation of Six Warehouses taken on sub-lease from Arshiya Rail Siding and Infrastructure Limited (ARSIL) and operation of Container Yard and Open Yard owned by the Company. The aforesaid Business Conducting and Services Agreement is to be read in the overall context of Lease Deed dated 3rd February, 2018, Sub-Lease Deed dated 3rd February, 2018 and other agreements and documents entered into in connection with lease of Six Warehouses by the Company, being owner, to ARSIL and Sub-Lease of the said Six Warehouses by ARSIL to ALL and transfer of all rights and obligations under the Existing Unit Holder Agreements entered into by the Company to and in favour of ALL. The Company for the administration and operational expediency entrusted ALL to carry out operating and managing the open yard, the container yard and warehouses whereby ALL agreed to undertake and conduct the business of operating and managing the open yard and the container yard and warehouses and provide other services by utilizing the infrastructure facilities provided by the Company. ALL shall also received all the incomes generated from the warehouses and storage yard, bearing the cost and expenses to operate and maintain the warehouses and storage yard. Pursuant to the aforesaid Business Conducting and Services Agreement, the ALL will pay 99% of Excess Revenue / Total Income over all the expenses / charges / provisions to the Company as Business Conducting Fees. Accordingly, the Company has recognised as Business Conducting fees Rs. 972.91 Lakh during the year ended 31st March, 2018.

25 During the year, on 23 November 2017, the company, interalia, its subsidiaries and promoters had executed Share Purchase Agreement of Arshiya Rail Siding and Infrastructure Limited ( 'ARSIL", i.e. a step-down subsidiary/"SPV"), with Ascendas Property Fund (India) Pte Ltd ('Ascendas') for sale of 100% of its equity holding, having Rs. 5 Lakh paid up equity capital, to Ascendas. This SPV holds the status of a co-developer.

During the year, the Company, interalia, if s subsidiaries and promoters has executed Lease Deed on 3rd February 2018, in favour of a SPV of Ascendas Property Fund (India) Pte. Limited ('Ascendas" - part of the Ascendas-Singbridge Group, Singapore) for grant of leasehold rights of six warehouses at FTWZ Panvel, along with underlying land of those warehouses, identified assets and infrastructure facilities on an initial lease term of 30 (thirty) years. The said transaction is for a total consideration of Rs. 53,400 Lakh (or Rupees Five hundred and thirty four crore), with an upfront lease payment/lump sum rent of Rs. 43,400 Lakh (or Rupees Four hundred and thirty four crore). The balance of Rs. 10,000 Lakh (or Rupees One hundred crore) will be received over four years from transaction closing based on certain performance milestones. The transaction also envisages the terms for construction funding by Ascendas for future growth of the company's business. The company already possesses the requisite land for the future development.

On transaction closing date of 3rd February 2018, the SPV has acquired long-term leasehold rights from the Company and the same are leased back under an operating lease arrangement pursuant to execution of sub-lease deed dated 3rd February 2018 to Arshiya Lifestyle Limited ("ALL"), a wholly owned subsidiary of the Company, for a sub-lease term of 6 (six) years, renewable as per mutually agreed terms, in consideration of pre-agreed rentals.

Accordingly during the year ended 31st March, 2018 the Company has reduced the value of assets, granted on leasehold rights to ARSIL, from its fixed assets. The gain on grant of leasehold rights to ARSIL amounting to Rs. 15,633.29 lakhs has been credited to profit and loss account of the company and is disclosed as an exceptional item.

Based on the above, ALL would operate and manage these six warehouses and pay the lease rentals to ARSIL as defined in the sublease agreement. Hence from 3rd February, 2018 onwards all revenue from these assets will be accounted by ALL. However the company will recognise the net revenue in terms of a business conducting agreement entered into between the company and ALL.

In view of above the set of transaction during the year, the financial statement for the year ended 31st March, 2018 are not comparable with corresponding year to the extent.

26 Related party disclosures, as required by Indian Accounting Standard 24 “Related Party Disclosures” (IND AS-24) as given below:

Note:

@ Nil (31st March, 2017 - Nil, 1st April, 2016 - 5.27%) held through Arshiya Hong Kong Limited

$ Nil (31st March, 2017- Nil, 1st April, 2016 - 9.38 %) held through Cyberlog Technologies (UAE) FZE

$$ Nil (31st March, 2017 - 12.64%, 1st April, 2016 - 12.64%) held through Arshiya Northern FTWZ Limited

$$$ Nil (31st March, 2017 - 48.33%, 1st April, 2016 - 48.33%) held through Arshiya Hong Kong Limited

*Nil (31st March, 2017 - Nil, 1st April, 2016 - 90.11%) held through Cyberlog Technologies International Pte. Limited

(I) Person having significant influence over the Company

Mr. Ajay S Mittal - Chairman and Managing Director Mrs. Archana A Mittal - Joint Managing Director

(II) Key Management Personnel

Mr. Ashish Bairagra - Independent Director Mr. Mukesh Kacker - Independent Director Prof. G. Raghuram - Independent Director (till 15th May, 2017)

Mr. Rishabh Shah - Independent Director

Mrs. Savita Dalal - Company Secretary and Compliance Officer

Mr. S. Maheshwari - Chief Financial Officer (w.e.f. 8th February, 2017)

(III) Relative of Person having significant influence over the Company

Mr. Ananya Mittal - Corporate Strategy Officer (Arshiya Group)

(IV) Enterprise owned or significantly influenced by key management personnel or their relatives

Rudradev Properties Private Limited

The nature and amount of transactions with the above related parties are as follows

* During the year, the Company has adjusted amount of Rs. 1,269.42 Lakh and Rs. 2,026.74 Lakh with receivable from Arshiya Rail Infrastructure Limited, which are payble by Arshiya Indusrial & Distribution Hub Ltd. (AIDHL) and Arshiya Northern FTWZ Ltd. (ANFL) to Arshiya Rail Infrastructure Limited.

During the year, the Company has adjusted amount of Rs. 90.18 Lakh with receivable from Arshiya Northern FTWZ Limited, which are payble by Arshiya Indusrial & Distribution Hub Ltd. to Arshiya Northern FTWZ Limited.

During the year, the Company has adjusted amount of Rs. 4.45 Lakh with receivable from Arshiya Rail Infrastructure Limited, which are payble by Arshiya Supply Chain Management Private Limited to Arshiya Rail Infrastructure Limited.

The Company has received Rs. 47.87 Lakh from Arshiya Industrial & Distribution Hub Limited for sales consideration of equity shares on behalf of Arshiya Northern FTWZ Limited.

# During the year, the Company has adjusted amount of Rs. 262.38 Lakh with receivable from Arshiya Supply Chain Management Private Limited, which are payble by Arshiya Northern FTWZ Limited to Arshiya Supply Chain Management Private Limited.

56 Loans and Advances in the nature of Loans to Subsidiaries (Pursuant to the SEBI (Listing Obligation and Disclosure Requirement) Regulations, 2015):

0% OCRPS and share warrants had an anti-diluting effect on earnings per share hence have not been consider for the purpose of computing dilutive earning per share during the year.

27 Taxation

28 In view of loss for the year, no provision for current tax has been made.

29 The Company has not recognised any deferred tax assets on deductible temporary differences, unused tax losses as it is not probable that the Company will have sufficient future taxable profit which can be available against the available tax losses.

Deferred tax assets as at 31st March, 2018 Rs.18,584.87 Lakh (31st March, 2017 - Rs. 26,264.24 Lakh, 1st April, 2016 - Rs. 19,961.03 Lakh) has not been recognised, as there is no convincing evidence that sufficient taxable profits will be available against which the unadjusted tax losses will be utilized by the Company. Details of deferred tax assets are mentioned below:

30 During the year, the Company has allocated certain common costs and expenses incurred by it, being the Holding Company, to its subsidiaries aggregating to Rs.1,403.20 Lakh (31st March, 2017 - Rs. 1,403.22 Lakh,) based on management's estimates of such costs and expenses attributable to them. Hence, Employee benefit expenses (Refer Note No. 30) and certain expenses stated under Other expenses (Refer Note No. 33) are presented as net of allocation of certain common costs and expenses.

31 Financial Risk Management

The Company's principal financial liabilities comprises of borrowings, trade and other payables and financial guarantees contracts. The main purpose of these financial liabilities is to manage for the Company’s and subsidiaries’ operations. The Company's financial assets comprises of investment, loans, trade and other receivables, cash and deposits that arises directly from its operations.

The Company's activities expose it to variety of financial risks including credit risk, liquidity risk and market risk. The Company's risks management assessment, management and processes are established to identify and analyze the risks faced by the Company to set up appropriate risks limits and controls, and to monitor such risks and compliances with the same. Risks assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Company's risk management is carried out by a corporate finance team under the policies approved by the Board of Directors. The Board provides written principles for overall risk management as well as policies covering specific areas, such as credit risk, interest rate risk.

(a) Credit Risk

The Company is exposed to credit risk, which is risk that counterparty will default on its contractual obligation resulting in a financial loss to the Company. Credit risk arises from cash and cash equivalents as well as credit exposures to trade customers including outstanding receivables.

Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. Outstanding customer receivables are regularly monitored. Credit risk is high as only few customers’ account for majority of the revenue in the year presented. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

(b) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its financial obligations without incurring unacceptable losses. The Company's objective is to, at all times; maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company limits its liquidity risk by ensuring regular monitoring of funds from trade and other receivables. The Company relies on assets light business model through monetization of assets and tie-up of construction funding and operating cash flows to meet its needs for funds.

The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

(c) Market Risk

Market Risk is the risk that the fair value of future cash flow of a financial instruments will fluctuate because of volatility of prices in the financial markets. Market risk can be further segregated as: 1) Foreign currency risk and 2) Interest rate risk

1 Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flow or an exposure 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.

2 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. Majority of the Company's borrowings is fixed rate borrowings carried at amortised cost, therefore not subject to interest rate risk as defined in IND AS - 107, since neither carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. The Company’s interest rate risk arises from long term borrowings with variable rates, which expose the Company to cash flow interest rate risk. The Company's borrowings at the variable rate were mainly denominated in Rupees.

(ii) Fair Valuation techniques used to determine fair value

The Company maintains 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.

The following methods and assumptions were used to estimate the fair values:

(a) The Company assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

(b) The fair values for loans to subsidiaries, security deposits and other financial liabilities were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

(c) The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

(d) Equity Investments in subsidiaries are stated at cost.

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in deterring fair value, the

Company has classified its financial instruments into three levels prescribed under the accounting standard.

(a) Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices.

(b) Level 2 - The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

(c) Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity shares, contingent consideration and indemnification assets included in level 3.

32 Capital Management

For the Company's objective when managing capital is to safeguard the Company’s ability to continue going concern in order to provide the return to shareholders and benefit to other stakeholders and to maintain an optional capital structure to reduce the cost of capital, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

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 (if permitted). The Company monitors capital using a gearing ratio, which is debts divided by total equity.

Notes:-

(i) Debt is defined as long term and short term borrowings including current maturities of borrowings and interest accrued.

(ii) Total equity (as shown in balance sheet) includes issued capital and all other equity.

Debt Covenants

Under the terms of Restructuring Agreement (RA), the Company is required to comply with following financial covenants: Without prior approval of lender, the Company shall not:

(a) Loans, debenture & charge - Issue or subscribe to any debentures, shares, raise any loans, deposit from public, issue equity or preference share capital, change its capital structure or create any charge on its assets including its cash flow or give any guarantees.

(b) Dividend on equity shares - declare/pay dividend on equity shares unless otherwise approved by the Lender/Business Monitoring Committee in accordance with the provisions of RA.

In order to achie

achieve this overall objective, the capital management, amongst other thing, aims to ensure that it meets financial covenants attached to the interest bearing Loans and borrowings that define capital structure requirements, there have been breaches in the financial covenants of Interest bearing loans and borrowing in the current period and previous period.

The Company has not proposed any dividend in last three year in view of losses incurred.

33. Standards issued but not effective

On 28th March, 2018, the Ministry of Corporate Affairs (MCA) has notified IND AS 115 - Revenue from contract with customers and certain amendment to existing IND AS. These amendments shall be applicable to the Company from 1st April, 2018.

(a) Issue of IND AS 115 - Revenue from contract with customers

IND AS 115 will supersede the current revenue recognition guidance including IND AS 18 Revenue, IND AS 11 Construction Contracts and the related interpretation. IND AS 115 provides a single model of accounting for revenue arising from contracts with customers based on the identification and satisfaction of performance obligations.

(b) Amendment to Existing issued IND AS

The MCA has also carried out amendments of the following accounting standards:

(i) IND AS 21 - The Effect of Changes in foreign Exchange Rate

(ii) IND AS 40 - Investment Property

(iii) IND AS 12 - Income Tax

(iv) IND AS 28 - Investment in Associates and Joint ventures and

(v) IND AS 112 - Disclosure of interests in other entities

Applications of above standards are not expected to have any significant impact on the Company's financial statements.

34 First Time Adoption of Ind As

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note no. 3 have been applied in preparing the financial statements for the year ended 31st March, 2018, the comparative information presented in these financial statements for the year ended 31st March, 2017 and in the preparation of an opening Ind AS balance sheet at 1st April, 2016 (the Company's date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Ind AS optional exemptions (i) Deemed cost of property, plant and equipment and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets covered by Ind AS 38 - Intangible Assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value as deemed cost.

(ii) Investments in subsidiaries

The Company has elected to apply Previous GAAP carrying amount as deemed cost on the date of transition to IND AS for its equity investment in subsidiaries.

(iii) Business combinations

Ind AS 101 provides an exemption for all transactions qualifying as business combinations, not to restate any business combinations under Ind AS 103, occurring before the transition date. The Company has elected to apply this exemption and accordingly the Company has not restated business combinations occurring before 1st April, 2016.

Mandatory exceptions applied

The following mandatory exception have been applied in accordance with IND AS 101 in preparing the financial statements.

(i) Estimates

The Company 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 as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with the previous GAAP except where IND AS required a difference basis for estimates as compared to the previous GAAP.

(ii) Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 "Financial Instruments" on the basis of facts and circumstances that exist at the date of transition to Ind AS.

B. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

C. Notes to first-time adoption:

1 Loan to Subsidiaries

Under the Previous GAAP, interest free loan to subsidiaries are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the company has fair valued loan to subsidiaries under Ind AS. Difference between the fair value and transaction value of the loan to subsidiaries has been increased in investment at the first time adoption. subsequently amortised as an interest income from loan to subsidiaries to the Statement of Profit and Loss. Consequent to this change, the amount of loan to subsidiaries decreased by Rs.558.93 Lakh as at 1st April, 2016 and investment increased by Rs. 558.93 Lakh as at 1st April, 2016. The profit for the year ended 31st March, 2017 increased by Rs. 165.64 Lakh.

2 Financial guarantee obligations

Under Ind AS, financial guarantee given by the Company for its subsidiaries are initially recognised as a financial liability at fair value which is subsequently amortised as a financial guarantees income to the Statement of Profit and Loss. This transaction was not recorded under the previous GAAP.

Accordingly, the Company has recognised financial guarantee obligations of Rs. 3,172.39 Lakh and increased by investment Rs. 3,172.39 Lakh as at 1st April, 2016. On account of the aforesaid adjustment, the Company has recognised other income of Rs. 759.54 Lakh in the Statement of profit and loss for the year ended 31st March, 2017.

Further the Company has recognised additional financial guarantee obligations of Rs. 525.67 Lakh and increased by investment Rs. 525.67 Lakh as at 31st March, 2017 due to movement in financial guarantee given by the Company for its subsidiaries.

3 Borrowings

Under the Previous GAAP, transaction costs were charged to profit or loss as and when incurred. Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Accordingly, Non-current borrowing and current maturities decreased by Rs. 1,704.31 Lakh as at 31st March 2017 (1st April, 2016 - Rs. Nil).

4 Security deposits

Under the Previous GAAP, interest free refundable security deposits from unit holders are recorded at their transaction value. Under Ind AS, all financial liabilities are required to be recognised 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 recognised as advance rent. Consequent to this change, the amount of security deposits decreased by Rs. 1,705.89 Lakh as at 31st March, 2017 (1st April, 2016 - Rs. 2,117.81 Lakh ). The advance rent increased by Rs. 1,631.48 Lakh as at 31st March, 2017 (1st April, 2016 - Rs. 2,117.81 Lakh). The profit for the year ended 31st March, 2017 increased by Rs. 74.41 Lakh due to amortisation of the advance rent of Rs. 492.36 Lakh which is partially off-set by the unwinding interest expenses of Rs.417.95 Lakh recognised on security deposits.

5 Fair value of financial instruments

Under the previous GAAP, settlement on account of derivatives contracts is recorded at its transaction value. Under Ind AS, all financial liabilities are required to be recognised at fair value which is subsequently amortised as an unwinding interest on financial instruments to the Statement of Profit and Loss over the tenure of financial liability. Accordingly, the company has fair valued this liability under Ind AS. Accordingly, the amount of settlement of account of derivatives contracts decreased by Rs. 513.57 Lakh as at 1st April, 2016. The profit for the year ended 31st March, 2017 decreased by Rs. 317.64 Lakh.

6 Expected credit loss on financial assets

Under the Previous GAAP, the company has created provision for impairment of trade receivables consists only in respect of specific amount for incurred losses. Under Ind AS, impairment allowance has been determined based on Expected Loss model (ECL). The Company is also required to account for loss allowance on trade receivables based on the Expected Credit Loss model. Total equity and trade receivables as at 1st April, 2016 decreased by Rs. 9.00 Lakh. The profit for the year ended 31st March, 2017 decreased by Rs. 0.36 Lakh.

7 Debt convertible into Equity classified as other equity

Debt convertible into Equity of Rs. 18,766.71 Lakh is classified as other equity under IND AS. Incidential expenses of Rs. 227.25 Lakh incurred towards restructuring of origination of debt deducted from the security premium account on initial recognition i.e. 31st March, 2017.

8 0% Optionally convertible redeemable preference shares (OCRPS)

The company has issued 0% optionally convertible redeemable preference shares (OCRPS). Under Ind AS, The fair value of the liability component is separated from the compound instrument and the residual value is recognised as equity component of other financial instrument. Interest on liability component is recognised using the effective interest method. Accordingly, the Company recoginsed as liability component of Rs. 17,511.54 Lakh as at 31st March, 2017 (1st April, 2016 - Rs. Nil) and as equity component of Rs. 88,620.84 Lakh as at 31st March, 2017 (1st April, 2016 - Rs. Nil). Transaction costs of Rs. 214.64 Lakh incurred on liability component deducted from the liability component and Rs. 1,086.26 Lakh incurred on equity component deducted from the equity component on initial recognition.

9 Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31st March, 2017 decreased by Rs. 9.02 Lakh.

10 Prior Period Adjustments

During the year life of internal roads was changed retrospectively from 60 years to 10 years and accordingly depreciation amount and book value of internal roads have been changed.

11 Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits 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' includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP

12 Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

13 Cash Flow Statement

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flow from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous GAAP.