1 CORPORATE INFORMATION

8K Miles Software Services Limited (“8K Miles” or “the Company”) was incorporated in the year 1985 in the name of Rosebud Commercials Limited and the Company’s name was changed to P M Strips Limited in 1998 and subsequently to 8K Miles Software Services Limited in October 201 0. The Company is a distributed platform that blends a global talent market place with collaboration tools and cloud infrastructure, helping small and medium enterprises (SMB’s) and large enterprise customers to integrate Cloud computing and Identity Security into their Information and Technology (“IT”) and business strategies.

2 APPLICATION OF NEW AND REVISED IND AS

All the Indian Accounting Standards issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 201 5 (as amended) till the financial statements are authorised have been considered in preparing these financial statements.

Recent Accounting Pronouncements:

Recent Standards notified but not effective:

Ind AS 115 - “Revenue from Contracts with Customers”:

On March 28, 2018, the Ministry of Corporate Affairs (MCA), notified Ind AS 115, Revenue from Contracts with Customers, as part of the Companies (Indian Accounting Standards) Amendment Rules, 2018. The new standard is based on IFRS 15, Revenue from Contracts with Customers. The standard is effective for the accounting periods commencing on or after 1 April 2018.

Ind AS 115 replaces Ind AS 11 Construction contracts and Ind AS 18 Revenue. The core principle of Ind AS 115 is that an entity recognises revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This core principle is delivered in a five-step model framework:

(a) Identify the contract(s) with a customer -assess whether the contract is within the scope of Ind AS 115. ‘Customer’ has now been defined.

(b) Identify the performance obligations in the contract - determine whether the goods and services in a contract are distinct.

(c) Determine the transaction price - transaction price will include fixed, variable and non cash considerations.

(d) Allocate the transaction price to the performance obligations in the contract -allocation based on a stand-alone selling price basis using acceptable methods.

(e) Recognise revenue when (or as) the entity satisfies a performance obligation - i.e. recognise revenue at a point in time or over a period of time based on performance obligations.

The Company is evaluating the requirements of the standards, and the transition effects on the financial statements.

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from 1 April 2018. The Company is evaluating the effect of this on the financial statements.

Standards yet to be notified:

Ind AS 116 - “Leases”:

On July 18, 2017, the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) issued an Exposure Draft (ED) of Ind AS 116, Leases. Ind AS 116 is largely converged with IFRS 16. When notified, Ind AS 116 will replace Ind AS 17 Leases.

I nd AS 116 sets out a comprehensive model for identification of lease arrangements and their treatment in the financial statements of the lessor and lessee. Ind AS 116 applies a control model for the identification of leases, distinguishing between leases and service contracts on the basis of whether there is an identified asset controlled by the customer. The Company is evaluating the requirement of the standard and the effect on the financial statements.

3 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

“ In the application of the Company’s accounting policies, which are described in note 3, the directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if revision affects both current and future periods.”

“The following are the significant areas of estimation, uncertainty and critical judgements in applying accounting policies:

- Useful lives of Property, plant and equipment and intangible assets (Refer Note 3.6)

- Provision for taxation (Refer Note 3.15)

- Provision for disputed matters (Refer Note 3.16)

- Provision for Employee benefits (Refer Note 3.12)

Determination of functional currency:

Currency of the primary economic environment in which the Company operates (“the functional currency”) is Indian Rupee (INR) in which the company primarily generates and expends cash. Accordingly, the Management has assessed its functional currency to be Indian Rupee (INR).

4.1 Credit period and risk

The average credit period for the services rendered:

(a) Trade receivables (Domestic) are non-interest bearing and are generally on terms of upto 30 days.

(b) Trade receivables (International & Related Party) are non-interest bearing and are generally on terms of upto 3 - 9 months.

No trade receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

4.2 Expected credit loss allowance

The Company has used a practical expedient by computing the expected loss allowance for trade receivables based on provision matrix. The provision matrix takes into account the historical credit loss experience and adjustments for forward looking information.

Based on the assessment of the Company, there is no risk associated with the dues from the related parties both from a credit risk or time value of money as these are managed through the group’s cash management process and can be recovered on demand by the Company. Accordingly, no provisions has been considered necessary.

With regard to other parties, the company had, based on past experience, wherein collections are done within a year of it being due and expectation in the future Credit loss, has made necessary provisions.

(ii) Terms/rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.5/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(iv) There are no shares which are reserved for issuance and there are no securities issued/ outstanding which are convertible into equity shares.

(v) Issue of Bonus Shares during immediately preceding 5 years.

Notes:

(i) The details of Security provided against the Term Loans & Loans Repayable on Demand are as follows:

(a) Indian Bank Term Loan and working capital loan are Secured against Hypothecation of Book Debts (Accounts receivable), Fixed Assets and personal guarantee of Managing Director and Whole Time Director.

(b) Collateral security provided is the property situated at 168, Eldams Road, Chennai -18 owned by Managing Director.

(c) The loan is also further secured by pledge of 300,000 shares of 8K Miles Software Services Limited held by Managing Director.

(d) Collateral security provided is the property situated at 44, Anna Salai Lane, Saidapet, Chennai - 15 owned by Ms. T.P. Saira (Former Director)

(ii) The loan is secured by hypothecation of respective vehicle financed by the Bank.

(iii) The details of Security provided against the IFCI Term Loan are as follows:

(a) Secured against pledge of 8K Miles Software Services Limited shares at least 2.5 times of outstanding loan amount and personal guarantee of Managing Director and Whole Time Director.

(b) Lien marked Fixed Deposit in favour of IFCI equivalent to 3 months interest due and PDCs for Interest and principal repayments

(iv) During the current year ended March 31, 2018, the Company has obtained an unsecured loan of Rs.3,750 lakhs from R.S. Ramani, Whole Time Director. The Company has obtained a declaration from the Director that the loan has not been given out of funds borrowed or deposits accepted from others.

5 EARNINGS PER SHARE

The earnings and weighted average number of ordinary equity shares used in the calculation of basic and diluted earnings per share are as follows:

6 LEASE ARRANGEMENTS

(a) Operating Leases

The Company has entered into operating lease agreements primarily for Office premises. An amount of Rs.226.74 lakhs (Previous Year - Rs.167.63 lakhs) has been debited to the Statement of Profit and Loss towards lease rentals and other charges for the current year. The leases are non cancellable for periods of 3 to 9 years and may be renewed based on mutual agreement of the parties.

The future minimum lease payments for office premises under operating lease contracted are as follows:

Note:

The amounts shown above as Contingent Liabilities and other disputed claims represent the best possible estimates arrived at on the basis of the available information. The uncertainties and possible reimbursement are dependent on the outcome of the various legal proceedings which have been initiated by the Company or the claimants, as the case may be and, therefore, cannot be predicted accurately. The Company expects a favourable decision with respect to all the above disputed demands / claims based on professional advice and, accordingly, believes that no specific adjustment/provision is required in respect of these matters at this stage.

7 EMPLOYEE BENEFITS

(I) Defined Contribution Plan

The Company makes provident fund contribution which is defined contribution plan, for qualifying employees. Under the scheme, the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to the plan by the Company are at rates specified in the rules of the scheme.

(II) Defined Benefit Plans:

The Company offers ‘Gratuity’ (Refer Note 23 - Employees Benefits Expense) as a post employment benefit for qualifying employees and operates a gratuity plan. The benefit payable is calculated as per the Payment of Gratuity Act, 1972 and the benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company’s obligation towards its gratuity liability is a defined benefit plan.

Description of Risk Exposures

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:

A) 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).

B) 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.

C) 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.

D) 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 availabilty of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

I n respect of the plan, the most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31 March 2018 by Sapna Malhotra, Fellow of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and paid service cost, were measured using the projected unit credit method.

(i) The current service cost and interest expense for the year are included in the “Employee Benefit Expense” in the statement of profit & loss under the line item “Gratuity Expenses”

(ii) The remeasurement of the net defined benefit liability is included in other comprehensive income.

Significant actuarial assumptions for the determination of defined obligation are discount rate, expected salary increase and withdrawal rate. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period while holding all other assumptions constant. The results of sensitivity analysis is given below:

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore 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 the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There is no change in the methods and assumptions used in preparing the sensitivity analysis from the prior years. The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(III) Compensated Absences

Provision for Short Term Compensated Absences is made at current encashable salary rates for the unavailed leave balance standing to the credit of the employees as at the date of the Balance Sheet in accordance with the rules of the Company.

8 FINANCIAL INSTRUMENTS

(I) Capital Management

The Company’s capital management is intended to maximise the return to shareholders for meeting the long-term and short-term goals of the Company through the optimization of the debt and equity balance. The Company determines the amount of capital required on the basis of annual and longterm operating plans and strategic investment plans. The funding requirements are met through equity and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. The Company ensures that it will be able to continue as a going concern while maximising its returns to its shareholders by managing its capital by optimisation of the debt and equity balance. The following table summarises the capital of the Company:

(II) Categories of Financial Instruments

The carrying value of financial instruments by categories as at 31 March 2018, 31 March 2017 and 1 April 2016 is as follows:

The Management assessed that the fair value of cash and cash equivalents, trade receivables, loans, borrowings, trade payables and other financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments

The fair value of the financial assets and labilities 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 value/ amortised cost:

a) Long-term fixed-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, 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.

b) Fair values of the Company’s interest-bearing borrowings and loans are determined by using discounted cash flow (DCF) method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non- performance risk as at 31 March 2018 was assessed to be insignificant.

(III) Financial Risk Management Framework

The Company’s activities expose it to a variety of financial risks: liquidity risk, credit risk and market risk (including currency, interest rate and other market related risks). The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Chief Financial Officer is responsible for overseeing the Company’s risk assessment and management policies and processes.

(a) Liquidity Risk Management :

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company believes that the working capital and its cash and cash equivalent are sufficient to meet its short and medium term requirements.

The following tables detail the Company’s remaining contractual maturity for its financial liabilities with agreed repayment periods and the maturity periods of its financial assets. The contractual maturity is based on the earliest date on which the Company may be required to pay.

The following table details the Company’s expected maturity for its financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company’s liquidity risk management as the liquidity is managed on a net asset and liability basis.

(b) Credit Risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Trade receivables: The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company uses financial information and past experience to evaluate credit quality of majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding receivables and the credit worthiness of its counter parties are periodically monitored and taken up on case to case basis.

Credit risk on current investments, cash & cash equivalent and derivatives is limited as the Company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

(c) Market Risk :

Market risk is the risk of loss of any future earnings, in realizable fair values or in future cash flows that may result from adverse changes in market rates and prices (such as interest rates and foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short-term debt. The Company is exposed to market risk primarily related to foreign exchange currency risk and interest rate risk. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

i. Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates. The Company manages this by considering only short-term borrowings.

ii. Foreign exchange rate risk:

The Company’s foreign currency risk arises from its foreign currency revenues and expenses, (primarily in USD). A significant portion of the Company’s revenues is in USD, while a significant portion of its costs are in Indian rupees. As a result, if the value of the Indian rupee appreciates relative to this foreign currency, the Company’s revenues measured in Indian rupees may decrease and vice versa. The exchange rate between the Indian

rupee and US Dollar has not been subjected to significant changes in recent periods. The Company has a forex policy in place whose objective is to reduce foreign exchange risk by maintaining reasonable open exposures within approved parameters depending on the future outlook on currencies.

The Company does not enter into or trade financial instruments including derivative financial instruments for speculative purpose.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of each reporting period are as follows :

Out of the above foreign currency exposures, none of the monetary assets and liabilities are hedged by derivative instruments or otherwise.

Foreign Currency sensitivity analysis:

The following table details the Company’s sensitivity to a 5% increase and decrease in INR against the relevant foreign currencies. 5% is the rate used in order to determine the sensitivity analysis considering the past trends and expectation of the management for changes in the foreign currency exchange rate. The sensitivity analysis includes the outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number below indicates a increase in profit / decrease in loss and increase in equity where the INR strengthens 5% against the relevant currency. For a 5% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or loss and equity and balance below would be negative.

The Company is mainly exposed to the following foreign currencies.

(ii) Excludes gratuity and compensated absences which cannot be separately identifiable from the composite amount advised by the actuary.

(iii) The remuneration payable to key management personnel is determined by the nomination and remuneration committee having regard to the performance of individuals and market trends.

(iv) The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. There have been no instances of amounts due to or due from related parties that have been written back or written off or otherwise provided for during the year.

9 SEGMENT REPORTING

The Company is engaged in Information and Technology Services. Based on the “management approach” as defined in Ind-AS 108 - Operating Segments, the Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by the overall business / operating segment.

As the allocation of resources and profitability of the business is evaluated by the CODM on an overall basis, with evaluation into individual categories to understand the reasons for variations, no separate segments have been identified. Accordingly, the amounts appearing in these financial statements relate to this operating segment.

9.1 Geographical Information:

The Company has operations within India as well as in other countries. The operations in United States of America constitute the major part of the operations. Management has reviewed the geographical areas vis-a-vis the risks and returns that encompass them. While arriving at this, management has reviewed the similarity of the economic and political conditions, relationships between operations in these geographical areas, proximity of operations, and special risks if any associated with operations in these areas.

10 ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

33.1 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

Based on and to the extent of information received by the Company from the suppliers during the year regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), which has been relied upon by the Auditors, the relevant particulars are furnished below.

11.1.1 Reconciliation of income tax

A reconciliation of income tax expense applicable to accounting profit / (loss) before tax at the statutory income tax rate to recognised income tax expense for the year indicated are as follows :

The actual tax rates under Indian Income Tax Act, for the tax years ended 31 March 2018 and 31 March 2017 were 33.063%.

11.2 Deferred Tax Balances

The following is the analysis of the net deferred tax asset/(liability) position as presented in the financial statements

12 TRANSITION TO INDIAN ACCOUNTING STANDARDS (IND AS)

12.1 First-time adoption - mandatory exceptions, optional exemptions

The Company’s financial statements for the year ended 31 March 2018 are prepared in accordance with the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015. The adoption of Ind AS was carried out in accordance with Ind AS 101, using 1 April 2016 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that are effective for the Ind AS financial statements for the year ended 31 March 2018, be applied consistently and retrospectively for all fiscal years presented. All applicable Ind AS have been applied consistently and retrospectively wherever required. The resulting difference between the carrying amounts of the assets and liabilities in the financial statements under both Ind AS and previous GAAP as at the transition date have been recognized directly in equity at the transition date.

Mandatory Exceptions and Optional Exemptions

(a) Deemed Cost for Property, plant and equipment and intangible assets

The Company has elected to continue with the carrying value of all of its property, plant and equipment and intangible assets recognized as at 1 April 2016 (transition date) measured as per the previous Indian GAAP (‘I GAAAP’) and use that carrying value as its deemed cost as of the transition date.

(b) Classification and measurement of financial assets

The company has opted not to apply EIR principles retrospectively and thus opted to consider the carrying cost of financial asset as its amortised cost as at transition date.

Key Sources of estimation uncertainity

The estimates at 1 April 2016 and at 31 March 2017 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies). The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2016, the date of transition to Ind AS and as of 31 March 2017.

First time IND AS Adoption Reconciliation :

The following reconciliations provide the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101:

1. Equity as at 1 April 2016 and 31 March 2017

2. Net profit and total comprehensive income for the year ended 31 March 2017 and

3. Cash flows for the year ended 31 March 2017.

Note 13.1 Notes on Reconciliation

(a) Previous GAAP balances have been regrouped to comply with the Companies ( Accounting Standard) Rules, 2006 , certain account balances have been regrouped as per the format prescribed under Division II of Schedule III to the Companies Act 2013.

(b) The company had not recognised the provision for employee benefits and rent equalistion for the year ended 31 March 2017 and 31 March 2016, and the same has been recognised in the respective financial years.

(c) Under previous GAAP, the interest free security deposits, with fixed terms, were considered at historical cost. Under Ind AS these financial assets have been adjusted to be carried at amortized cost. The notional cost of interest on deposits under Ind AS has been recognised as rental expense and the interest accrual has been recognised as interest income earned on financial assets that are not designated as at fair value through profit or loss.

The effect of this change is decrease in financial assets by Rs.60.20 lakhs as at 31 March 2017 (decrease by Rs.13.51 lakhs as at 1 April 2016) and increase in other current assets by Rs.59.02 lakhs as at 31 March 2017 (increase by Rs.13.03 lakhs as at 1 April 2016) and decrease in total equity by Rs.0.70 Lakhs (decrease by Rs.0.48 lakhs as at 1 April 2016). There had been increase in other income by Rs.5.00 lakhs and other expenses by Rs.5.70 lakhs for the year ended 31 March 2017 and consequently increase in deferred tax asset by Rs.0.33 lakhs as at 31 March 2017 (Rs.0.16 Lakhs as at 1 April 2016).

(d) Under previous GAAP, Borrowing cost and processing fees related to loans and financial liabilities were charged off to the statement of profit and loss. Under Ind AS, the Company needs to measure the borrowings at fair value using Effective interest rate (EIR) also considering the Upfront fees and Processing fees paid and any interest free loan at the time of obtaining the borrowings.

The net effect of change is decrease in borrowings under non current liabilities by Rs.18.54 lakhs as at 31 March 2017 (Rs. NIL as at 1 April 2016) and increase in total equity by Rs.18.54 lakhs as at 31 March 2017 (Rs. NIL lakhs as at 1 April 2016). There had been decrease in finance cost by Rs.18.54 lakhs and decrease in deferred tax asset by Rs.5.10 lakhs as at 31 March 2017 (Rs. NIL as at 1 April 2016).

(e) Under previous GAAP, the Company made provision for doubtful debts for Trade Receivables based on the ageing analysis and individual debtor assessment of recoverability. Under IND AS the impairment model of financial asset is based on Expected Credit Loss model. Accordingly, the Company has provided loss allowance based on Expected credit loss and as a result trade receivables and other receivables has decreased by Rs.658.96 lakhs as at 31 March 2017 (decreased by Rs.649.33 lakhs as at 1 April 2016). Retained earnings under other Equity decreased by Rs.649.33 lakhs as at 1 April 2016. Consequently, allowance for expected credit losses under other expenses decreased by Rs.9.63 lakhs for the year ended 31 March 2017.

(f) Based on the evaluation made by the management, the entire balance of goodwill as at 1 April 2016 has been impaired. Accordingly, the goodwill amounting to Rs.25.55 lakhs which was amortised under previous GAAP has been reversed during the financial year ended 31 March 2017.

(g) Under previous GAAP, actuarial gains and losses were recognised in profit and loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of net defined liability/asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income. The actuarial loss for the year ended 31 March 2017 was Rs.2.24 lakhs and tax effect was Rs.0.74 lakhs (tax reversal) and deferred tax asset increased by Rs.0.74 lakhs as at 31 March 2017.

(h) Under previous GAAP the deferred tax was accounted based on timing differences impacting the Statement of Profit and Loss for the period. Deferred tax under Ind AS has been recognised for temporary differences between tax base and the book base of the relevant assets and liabilities. As a result thereof, the deferred tax asset has increased by Rs.176.79 lakhs as at 31 March 2017 (increased by Rs.223.29 lakhs as at 1 April 2016).

(i) The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this date.

14 PREVIOUS YEAR FIGURES

As stated in Note 3.1, the Company has adopted Indian Accounting Standards with effect from 1 April 2017 with date of transition to Ind AS being 1 April 2016. Accordingly, previous year figures in the financial statements have been restated to Ind AS.

The standalone financial statements pertaining to the corresponding year ended 31 March 2017 and the equity balance as at 01 April 2016 have been complied under Ind AS after adjusting the previously issued standalone financial statements prepared in accordance with IGAAP which were audited by the predecessor auditors, on which they issued an unmodified opinion. The adjustments made to the previously issued IGAAP standalone financial statements to comply with Ind AS have been audited by the statutory auditors of the Company.

15 APPROVAL OF FINANCIAL STATEMENTS

The Board of Directors of the Company has reviewed the realisable value of all the current assets and has confirmed that the value of such assets in the ordinary course of business will not be less that the value at which these are recognized in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in the meeting in accordance with the provisions of Companies Act, 2013.