Notes to Accounts of Coral India Finance and Housing Ltd.

Mar 31, 2018

Company Overview:

Coral India Finance & Housing Limited is a public company domiciled in India and incorporated under the provisions of Companies Act applicable in India. Its shares are listed with BSE and NSE. The registered office of the company is located at Dalamal House, 4th Floor, Nariman Point, Mumbai 400021. The Company is primarily engaged in two segments:

I. Business of construction, development & maintenance of properties.

ii. Investment

1. Earnings Per Share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

Split of shares adjustment: Pursuant to the approval of members through postal ballot dated 18th July, 2017, 9975800 equity shares of face value of Rs. 10/- each were sub-divided into 49879000 equity shares of face value of 2/- each.

The earning per shares (EPS) in respect of all the reported periods has been restated considering the aforesaid sub-division of shares.

2. Cash dividends of Rs. 99,75,800/- paid during the year which were proposed in F.Y 2016-17 have already been booked in Profit and Loss a/c in F.Y 2016-17. Therefore no effects pertaining to the same is given in financial statements of F.Y 2017-18.

3. Disclosures as required by Indian Accounting standard (Ind AS) 101 First time adoption of Indian accounting standard The Company has adopted Ind AS with effect from 1stApril 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1stApril 2016 and all the periods presented have been restated accordingly.

I. Exemptions availed on first time adoption of Ind AS101:

On first time adoption of Ind AS, Ind AS 101 allows certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:

a. Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrumentation other comprehensive income. Ind AS 101 allows such designation of previously recognized financial assets, as ‘fair value through other comprehensive income’ on the basis of the facts and circumstances that existed at the date of transition to Ind AS. Accordingly, the company has designated its investments in certain equity instruments at fair value through other comprehensive income on the basis of the facts and circumstances that existed at the date of transition to Ind AS.

b. Since, there is no change in the functional currency of the Company, it has opted to continue with the carrying values measured under the previous GAAP and use that carrying value as the deemed cost for Property, Plant and Equipment and intangible assets on the date of transition.

c. Fair value measurement of financial assets or liabilities at initial recognition: The company has not applied the provision of Ind AS 109,FinancialInstruments, upon the initial recognition of the financial instruments where there is no active market.

II. Exceptions

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements:

a. Estimates

The estimates as at 1stApril 2016 and 31stMarch 2017 are consistent with those made for the same dates in accordance with previous GAAP ( after adjustment to reflect and differences if any, in accounting policies) apart from the following items where the application of previous GAAP did not require estimation:

(i) Investments in equity instruments carried as FVPL or FVOCI.

The estimates used by the company to present the amounts in accordance with the Ind AS refect conditions that existed at the date on transition to Ind AS.

b. Classification and movement of financial assets and liabilities

The Company has classified the financial assets and liabilities in accordance with Ind AS 109 on the basis of facts and circumstances that existed at the date on transition to Ind AS

Explanation for reconciliation Investment

Under Ind AS, investments in certain equity instruments and mutual fund are carried at fair value through OCI as compared to being carried at cost under previous GAAP The adjustment represents the difference in the fair value and the cost of investments in equity instruments and mutual funds.

Provisions

Under the previous GAAP discounting of provisions was not permitted. Under Ind AS, provisions are measured atdiscounted amounts if the effect of time value is material. As the effect of time value is not material, provisions have not been discounted.

Income tax

Current income tax

Tax component, if any on the gain/ (loss) on fair value of investment have been transferred to the OCI under Ind AS.

Other comprehensive income

Under the previous GAAP the companywas not required to present OCI. Hence, it has reconciled previousGAAP profit or loss to profit or loss as per Ind AS. Further, previous GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

Other equity

Adjustments to retained earnings and OCI have been made in accordance with Ind AS, for the above mentionedtransition items. Recognition of investment property

The company has investment in a property reported under Investments which is held either to earn rental income or for capital appreciation or for both, but not for sale in ordinary course of business. On transition to IND AS, the company has opted to continue with carrying values measured under the previous GAAP

V. Statement of cash flows

There were no significant reconciliation items between cash flows prepared under previous GAAP and those preparedunder Ind AS.

4. Financial Instruments

(A) Financial instruments by category

The carrying value and fair value of financial instruments by categories as at 31 March 2018 The carrying value and fair value of financial instruments by categories as at 31 March 2018

(B) Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of 31st March 2018

5. Related party Disclosure

The following table provides the list of related parties and total amount of transactions that have been entered into withrelated parties for the relevant financial year:

List of Related Parties

A. Key Managerial Personnel

Mr. Navin B. Doshi, Managing Director

Mr. Sachin N. Doshi, CFO & Director (upto5thJune, 2017)

Mr. Kishor Mehta, CFO & Director (w.e.f. 5th June, 2017)

Mrs. Riya Shah, Company Secretory

B. Non-whole-time directors Mrs. Sheela R. Kamdar

Dr. Sharad R. Mehta

C. Relative of key managerial personnel

Mrs. Kundan N Doshi, w/o Managing Director Mrs. Meeta S Sheth, d/o Managing Director

D. Enterprises over which key managerial personnel are able to exercise significant influence.

Vora Trading Co.

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Mar 31, 2016

NOTE 1

Subsequent to the cancellation of the certificate of registration, granted to the company to carry business as Non-Banking Financial Institution (NBFC), has during the year surrendered the original certificate to Reserve Bank of India on 30^th July 2015.

NOTE 2 - Taxation

a) Provision of Current Income Tax is made on after considering the effect of deduction under section 80IB of the Income Tax Act, 1961.

b) Deferred Taxation:

The deferred tax liabilities comprises of tax effect of timing differences mainly on account of depreciation. Deferred tax is recognized, subject to the consideration of prudence, on time differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

NOTE 3 - RELATED PARTY DISCLOSURE List of Related Parties

Vora Trading Co. Associate Concern

DWD Pharmaceuticals Limited Associate Company

Adore Pharmaceuticals Limited Associate Company

Coral Laboratories Limited Associate Company

Mr. Navin B. Doshi Director of the Company

Mrs. Meeta S. Sheth Daughter of Director

Mr. Sachin N. Doshi Director of Company

Ms. Ami M. Shah Director of Company

Dr. Sharad R. Mehta Director of Company

Mrs. Kundan N. Doshi Wife of Director

Mr. Chetan N. Doshi Son of Director

Transactions with Related Parties ( Rs. In lacs)

Adore Pharmaceuticals Ltd. CSR Activity 10.47

Mr. Navin B Doshi Director Remuneration 24.00

Mr. Sachin N. Doshi Directors / CFO Remuneration 30.00

Ms. Ami M. Shah Director Sitting Fees 0.12

Dr. Sharad R. Mehta Directors Sitting Fees 0.12

Mrs. Meeta Sheth Maintenance Charges Received 0.38

Mrs. Kundan N Doshi Maintenance Charges Received 0.50

. Coral Laboratories Ltd. Dividend Received 17.88

Vora Trading Co. Rent Paid 6.00

NOTE 4 - Previous year’s figures have been recast / re-stated wherever necessary.

Mrs. Ami Shah resigned from the Board on 14th September, 2015.

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Mar 31, 2015

Company Overview:

Coral India Finance & Housing Limited is a public company incorporated in India. Company is engaged in business of construction, development & maintenance of properties.

NOTE 1

Loans and advances are subject to confirmation from respective parties. In case where repayment of loans is not forthcoming, the Company has taken action in the matter and as per the management, no part of principal amount is considered doubtful.

NOTE 2

During the year under review, the certificate of registration, granted to the company to carry business as Non-Banking Financial Institution (NBFC), has been cancelled by the Reserve Bank of India w.e.f. 26th August 2014.

NOTE 3 - Taxation

a) Provision of Current Income Tax is made on after considering the effect of deduction under section 80IB of the Income TaxAct, 1961.

b) Deferred Taxation:

The deferred tax liabilities comprises of tax effect of timing differences mainly on account of depreciation. Deferred tax is recognized, subject to the consideration of prudence, on time differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

NOTE 4 - Previous year's figures have been recast / re-stated wherever necessary.

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Mar 31, 2014

1. Loans and advances are subject to confirmation from respective parties. In case where repayment of loans is not forthcoming, the Company has taken action in the matter and as per the management, no part of principal amount is considered doubtful.

2. During the year under review auditor has observed that company is not full-filling eligibility criteria of NBFC

3. Taxation

a) Provision of Current Income Tax is made on after considering the effect of deduction under section 80IB of the Income Tax Act, 1961.

b) Deferred Taxation:

The deferred tax liabilities comprises of tax effect of timing differences mainly on account of depreciation. Deferred tax is recognized, subject to the consideration of prudence, on time differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

4. Related Party Disclosure

List of Related Parties

Vora Trading Co. Associate Concern

DWD Pharmaceuticals Ltd. Associate Company

Adore Pharmaceuticals Ltd. Associate Company

Coral Laboratories Ltd. Associate Company

Mr. Navin B. Doshi Director of Company

Mrs. Kundan N. Doshi Wife of Director

Mr. Sachin N. Doshi Director of Company

Dr. Sharad R. Mehta Director of Company

Ms. Ami M. Shah Director of Company

Mr. Chetan N. Doshi Son of Director

Mrs. Meeta S. Sheth Daughter of Director

5. Previous year''s figures have been recast / re-stated wherever necessary.

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Mar 31, 2013

1. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

2. Loans and advances are subject to confirmation from respective parties. In case where repayment of loans is not forthcoming, the Company has taken action in the matter and as per the management, no part of principal amount is considered doubtful.

3. The details of amounts outstanding to Micro, Small and Medium Enterprises are based on the information available with the Company.

4. Taxation

a) Provision of Current Income Tax is made on after considering the effect of deduction under section 80IB of the Income Tax Act, 1961.

b) Deferred Taxation:

The deferred tax liabilities comprises of tax effect of timing differences mainly on account of depreciation. Deferred tax is recognized, subject to the consideration of prudence, on time differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

5. Previous year''s figures have been recast / re-stated wherever necessary.

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Mar 31, 2012

1 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Claims not acknowledge as debts amounting to Rs. 17,89,625/- in respect of Sales Tax / VAT Liabilities.

2. Loans and advances are subject to confirmation from respective parties. In case where repayment of loans is not forthcoming, the Company has taken action in the matter and as per the management, no part of principal amount is considered doubtful.

3. The details of amounts outstanding to Micro, Small and Medium Enterprises are based on the information available with the company

4. Taxation

a) Provision of Current Income Tax is made on after considering the effect of deduction under section 80IB of the Income Tax Act, 1961.

b) Deferred Taxation:

The deferred tax liabilities comprises of tax effect of timing differences mainly on account of depreciation. Deferred tax is recognized, subject to the consideration of prudence, on time differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

5. Previous year's figures have been recast / re-stated wherever necessary.

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Mar 31, 2010

1. The information pursuant to Part II of Schedule VI to the Companies Act, 1956 relating to materials consumed is not possible since the Company is engaged in the business of construction activities, Investment and finance activities.

2. Contingencies

Claims against the company not acknowledged as debts are NIL.

3. Loans and advances are subject to confirmation from respective parties. In case where repayment of loans is not forthcoming, the Company has taken action in the matter and as per the management, no part of principal amount is considered doubtful.

4. Taxation

a) Provision of Current Income Tax is made on Taxes Payable Method after considering the effect of deduction under section 80IB of the Income Tax Act, 1961.

b) Deferred Taxation:

The Company has computed the deferred tax Assets/Liability on the following basis.

During the year the company has accounted for deferred tax in accordance with the Accounting Standard-22 "Accounting for taxes on Income" by the Council of the Institute of Chartered Accountants of India. Deferred tax asset (net) for the current year amounting Rs. 2,12,901 has been recognized in the Profit & Loss Account under "Provision for Taxation". The deferred tax liabilities comprises of tax effect of timing differences mainly on account of depreciation.

Deferred tax is recognized, subject to the consideration of prudence, on time differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

5. RELATED PARTY DISCLOSURE

A) Related parties with whom transactions have been taken place during the year;



M/s. Vora Trading Co. - Associate Concern

M/s. DWD Pharmaceuticals Ltd. - Associated Company

M/s. Adore Pharmaceuticals Ltd. - Associated Company M/s. Coral Laboratories Ltd. - Associated Company

Mr. Navin B Doshi - Director of Company

Mrs. Meeta S Sheth - Daughter of Director

Mr. S. Ramamurthy - Director of Company

Mr. Sachin N. Doshi - Director of Company

Ms. Ami M. Shah - Director of Company

Dr. Sharad R. Mehta - Director of Company

Mrs. Kundan N. Doshi - Wife of Director

Mr. Chetna N. Doshi - Son of Director