2. RECENT ACCOUNTING PRONOUNCEMENTS:

Ind AS 115: Revenue from contracts with Customers

On 28th March, 2018, Ministry of Corporate Affairs (MCA), has notified the Ind AS 115, Revenue from contracts with Customers. The core principal of new standard is that an Entity should recognize the revenue to depict the transfer of promised 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 and services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flow arising from the entity’s contracts with customers. The effective date for adoption of Ind AS 115 is financial period beginning on or after 1st April, 2018. The Company will adopt the standard on 1st April, 2018 using cumulative catch up transition method and accordingly comparative for the year ending or ended 31st March, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 on the operation of the Company is being assessed by the Company.

1 The Company has adopted Previous GAAP as the deemed cost as per the exemption under Ind AS 101. Accordingly, the company has set the Net Block as per Previous GAAP as on April 1, 2016 as the Gross Block under Ind AS.

2 The Company has paid Lease Hold land premium of Rs. 5,24,249/- on 06.07.1984. The total lease period ended on 05.05.2030. In view of Indian Accounting Standard 38, issued by ICAI, the Company has written of proportionate amount of Rs. 11,396/- during the year under review.

3 Depreciation and Amortization :

The terms of repayment of long term loans are as under

(i) HDFC BANK LTD - Repayable in 36 EMI of Rs. 48.38 Lacs and remaining 84 EMI of Rs.65.79 Lacs each at the rate of Interest @ 8.75%, commencing from month May-2017, till month April-2027. The said Term Loan had been taken over from Bank Of Maharashtra on and from 31.03.2017

Security Provided:

Term Loan from HDFC BANK LIMITED is secured by Exclusive Charge by way of Registered Mortgage over company’s Lease Hold Land bearing City Survey No.202 to 208, Free Hold land bearing City Survey no 193 to 195 and property situated on city Survey No, 199 & 196, paiki, of the Company and personal guarantee of Director of the Company and also that of Lease Hold Land owners.

(ii) Vehicle Loan:

Kotak Mahindra Prime Ltd : Various vehicle loan repayable in differential EMI, which commenced from April 2013, till month April’18 at the interest rate ranging from 8.80% to 11.25% p.a.

State Bank of India : vehicle loan repayable in 72 EMI of Rs. 22,880/-, which commenced from January 2016, till month December 2021 at the interest rate 9.85% p.a.

BMW Finance Services : Various vehicle loans repayable in 84 EMI of Rs. 33,301/-, which commenced from April 2011, till month April 2018 at the interest rate 10% p.a.

ICICI Bank Ltd : vehicle loan repayable in 60 EMI of in different EMI, which commenced from Aug 2017, till month July 2022 at the interest rate 8.36% p.a.

Security Provided:

Vehicle Loan are secured against Hypothecation of specific vehicles and personal guarantee of two Directors.

(iii) SIDBI : Subordinated debt - Repayable after 3 years of moratorium from month October,2016, in 47 monthly installments of Rs. 6,05,000/- each and last installment of Rs. 5,65,000/- at fixed rate of interest @ 15.25 % p.a. with monthly rests. The Company had repaid the loan to SIDBI during the year 2016-17.

There is no default in repayment of Loan Installment and interest thereon of all types of Loans.

(iv) Unsecured loan from director and intercorporate

Unsecured loan from direcor are repayabale within 1-2 years and Intercorporate Loans are carring interest ranging from @ 09.50% to 12.25% p.a.

a) Name of the related party and nature of relationship: -

Sr No Particulars Relationship

I Key Managerial Personnel / Directors:

Ambalal Chhitabhai Patel Chairman (Non-Executive Independent Director)

Shri Piyush D Shah Managing Director

Ms. Shagun Mehra Whole time Director

Mr. S C Patel Chief Finanace Officer

Ms. Karuna Advani Company Secretory

Satvik P Agrawal Non Executive Non Independent Director

Chanda P Agrawal Non-Executive Director

Jatil Gordhanbhai Patel Non Executive Independent Director

Mukund Prahlad Bakshi Non Executive Independent Director

Nilesh D Shah Non Executive (Upto 18th March, 2017)

II Relatives of Key Managerial Personnel

Nilesh D Shah Yamini N Jalan Shantaben D Shah Piyush D Shah HUF Prachi S Agrawal Munira N Agrawal Munish D Shah Hardik Agrawal

III Entities controlled by Directors/Relatives of Directors

Jamunadevi Educational Trust Global Gourmet Private Limited Om Hospitality Private Limited Nand Kishore Enterprises Private Limited Synergy Stock Holdings Private Limited Nazar Art Gallery

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2 : The fair value of financial instruments that are not traded in an active market 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.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

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

- the fair value of the remaining financial instruments is determined using discounted analysis.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

(A) Credit risk

Credit risk is the risk that counter party will not meet its obligation under a financial instrument leading to a financial loss. The company is exposed to credit risk from investments, trade receivables, cash and cash equivalents, loans and other financial assets. The Company’s credit risk is minimized as the Company’s financial assets are carefully allocated to counter parties reflecting the credit worthiness.

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(c) Market Risk

(i) Price Risk

The company is mainly exposed to the price risk due to its investments in equity instruments. The price risk arises due to uncertainties about the future market values of these investments. The above instruments risk are arises due to uncertainties about the future market values of these investments.

Management Policy

The company maintains its portfolio in accordance with the framework set by the Risk management Policies. Any new investment or divestment must be approved by the board of directors, chief financial officer and Risk Management committee.

(ii) Currency Risk

The company has no significant Exposure for Export’s revenue and import of raw material and Property, Plant and Equipment so the company is not subject to risk that changes in foreign currency value impact.

CAPITAL MANAGEMENT Note: 39

Risk management

For the purpose of the company’s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimize returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company’s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximize the shareholders’ value. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Note: 40 Transition to Ind AS:

These are the Company’s first Standalone Financial Statements prepared in accordance with Ind AS.

The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 1.2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 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 by the Company in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized 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 after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its PPE ,Intangible assets at their previous GAAP carrying value.

A.1.2 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS Mandatory Exceptions

A.2.1 Estimates

An entity’s estimates in accordance with Ind ASs 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 April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI.

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B Reconciliations between previous GAAP and Ind AS

The following tables represent the reconciliations of Balance Sheet, Total Equity, Total Comprehensive Income, and Cash Flows from previous GAAP to Ind AS.

C Notes to reconciliations:-

1 Investments at Fair value through Other Comprehensive Income

Under the previous GAAP, the application of the relevant accounting standard resulted in all these investments being carried at cost less diminution in the value which is other then temporary. In accordance with Ind AS, financial assets representing investment in equity shares of entities have been fair valued. The company has designated investments as at fair value through other comprehensive income as permitted by Ind AS 109 resulting in increase in carrying amount by ' 2.77 lakhs as at 31 March 2017 and by ' 1.91 lakhs as at 1 April 2016.

2 Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

3 Provision for Dividend

Under previous GAAP, dividends proposed by the board of directors along reporting date but before the approval of financial statements were considered to be adjusting event and accordingly recognized (along with related dividend distribution tax) as liabilities at the reporting date. Under Ind AS, dividends proposed by the board are considered to be non-adjusting event. Accordingly, provision for proposed dividend and dividend distribution tax recognized under previous GAAP has been reversed.

4 Retained Earnings

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

5 Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as “Other Comprehensive Income”, includes remeasurement of Employee Benefit obligation and fair valuation of Equity Instruments through OCI and Income tax relating to these items. The concept did not exist under the previous GAAP.

6 Actuarial Gain/ Loss

Under the previous GAAP, actuarial gains and losses were recognized in Statement of Profit and Loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit of liability / asset which is recognized in Other Comprehensive Income. Consequently, the tax effect of the same has also been recognized in Other Comprehensive Income under Ind AS instead of Profit and Loss. The actuarial gain for the year ended 31 March 2017, were ' 3.98 Lakhs and the tax effect thereon ' 1.31 Lakhs.

Note: 7

The Company declares and pays dividend in Indian Rupees. The dividend has not been recommended by the Board of Directors for the year ended 31st March, 2018. (Dividend recommended as on 31st March, 2017: Rs. 0.80 per equity share)

Note: 8

The standalone financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 29th May, 2018. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.

Note: 9

The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.