Notes to Accounts of Empower India Ltd.

Mar 31, 2018

32 First-time adoption

Transition to Ind AS

These are the Company''s first separate financial statements prepared in accordance with Ind AS.

The accounting policies set out in Note 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) Ind AS optional exemptions 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.

i) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after ma king necessary adjustments for de-commissioning liabilities.

Accordingly, the company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value. No fair valuation will be done for any assets

B) Ind AS mandatory exceptions

i) Estimates

An entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 a re consistent with the estimates as at the same date made in conformity with previous GAAP.

ii) Classification and measurement of financial assets and financial liabilities

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

C. 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.

Reconciliation of equity as at March 31, 2017 and as at the date of transition

[in Rs.]

	Previous GAAP*	Adjustments	IND AS	Previous GAAP*	Adjustments	IND AS
Assets
Non Current Assets
Property, plant and equipment	11,99,993.00		11,99,993.00	23,99,985.00		23,99,985.00
Other intangible assets	-	-			-	-
Financial assets
i. Investments	2,73,49,27,421.00		2,73,49,27,421.00	2,68,99,63,121.00		2,68,99,63,121.00
ii. Loans	12,38,24,868.00	-	12,38,24,868.00	11,77,55,668.00	-	11,77,55,668.00
Other non-current assets	85,05,58,315.00		85,05,58,315.00	78,29,29,107.00		78,29,29,107.00
Total non-current assets	3,71,05,10,597.00		3,71,05,10,597.00	3,59,30,47,881.00		3,59,30,47,881.00
Current assets
Inventories	4,66,75,302.00		4,66,75,302.00	3,82,47,591.00		3,82,47,591.00
Financial assets
i. Trade receivables	54,13,882.00		54,13,882.00	54,13,882.00		54,13,882.00
ii. Cash and cash equivalents	6,74,561.00		6,74,561.00	7,24,434.00		7,24,434.00
iii. Loans	-		-	-		-
Other current assets	9,01,414.00		9,01,414.00	9,05,563.00		9,05,563.00
Total current assets	5,36,65,159.00	-	5,36,65,159.00	4,52,91,470.00	-	4,52,91,470.00
Total Assets	3,76,41,75,756.00	-	3,76,41,75,756.00	3,63,83,39,351.00	-	3,63,83,39,351.00
EQUITY AND LIABILITIES
Equity
Equity share capital	1,16,37,98,560.00		1,16,37,98,560.00	1,16,37,98,560.00		1,16,37,98,560.00
Other equity
Reserves and surplus	2,22,40,18,894.00		2,22,40,18,894.00	2,22,26,29,930.00		2,22,26,29,930.00
Total equity	3,38,78,17,454.00	-	3,38,78,17,454.00	3,38,64,28,490.00	-	3,38,64,28,490.00
						I
LIABILITIES						I
Non-current liabilities
Financial Liabilities
Deferred tax liabilities (Net)	3,04,702.00		3,04,702.00	1,78,185.00		1,78,185.00
Total non-current liabilities	3,04,702.00		3,04,702.00	1,78,185.00	-	1,78,185.00
Current liabilities
Financial liabilities
Borrowings
Trade payables	37,41,59,293.00	-	37,41,59,293.00	24,97,59,660.00	-	24,97,59,660.00
Provisions	18,94,307.00		18,94,307.00	19,73,016.00	-	19,73,016.00_
Total current liabilities	37,60,53,600.00		37,60,53,600.00	25,17,32,676.00	-	25,17,32,676.00
Total liabilities	37,63,58,302.00		37,63,58,302.00	25,19,10,861.00		25,19,10,861.00
Total equity and liabilities	3,76,41,75,756.00	-	3,76,41,75,756.00	3,63,83,39,351.00	-	3,63,83,39,351.00

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.

			[in Rs.]
D. Reconciliation of total comprehensive income for the year ended March 31, 2017	Previous GAAP*	Adjustments	IN DAS
Revenue from operations	90,36,25,872.00	-	90,36,25,872.00
Other income	-	-	-
Total income	90,36,25,872.00	-	90,36,25,872.00
Expenses
Purchases of stock-in-trade	90,55,17,622.00	-	90,55,17,622.00
Changes in inventories of work-in-progress, stock-in-trade and finished goods	(84,27,711.00)	~	(84,27,711.00)
Employee benefit expense	9,07,690.00		9,07,690.00
Depreciation and amortization expense	11,99,992.00	-	11,99,992.00
Other expenses	21,42,946.00	-	21,42,946.00
Finance costs	17,390.00		17,390.00
Total expenses	90,13,57,929.00	-	90,13,57,929.00
Profit before tax	22,67,943.00	-	22,67,943.00
Income tax expense
Current tax	7,52,462.00	-	7,52,462.00
Deferred Tax	1,26,517.00	-	1,26,517.00
Total tax expense	8,78,979.00	-	8,78,979.00
Profit for the year	13,88,964.00	-	13,88,964.00
Other comprehensive income	-	-	-
Other comprehensive income for the year, net of tax	-	-	-
Total comprehensive income for the year	13,88,964.00	-	13,88,964.00

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.

G. Impact of Ind AS adoption on the statements of the cash flow

For the year ended March 31, 2017	Previous Adjustments GAAP		Ind AS
Net cash flow from operating activities	3,64,54,628.00	-	3,64,54,628.00
Net cash flow from investing activities	(3,65,04,500.00)	-	(3,65,04,500.00)
Net cash flow from financing activities	-	-	-
Net increase/fdecrease) in cash and cash equivalents	(49,872.00)	-	(49,872.00)
Cash and cash equivalents as at April 01, 2016	7,24,433.00	-	7,24,433.00
Cash and cash equivalents as at March 31, 2017	6,74,561.00 ''		6,74,561.00

For Deepak C Agarwal & Associates
Chartered Accountants	For and on behalf of the Board of Directors
Firm Registration No: 140967W
sd/-		sd/-	sd/-
Deepak Agarwal		Director	Director
Partner/ Proprietor		Zulfeqar Khan	Rajgopalan lyengar
Membership No : 165938		DIN:00020477	DIN:00016496
Place: Mumbai
Date: May 29, 2018

		[in Rs.]
E. Reconciliation of total equity as at March 31, 2017 and April 01, 2016	March 31, 2017	April 01, 2016
Total equity (Shareholder''s funds) as per previous GAAP	3,38,78,17,454.00	3,38,64,28,490.00
Adjustments:	.
Total Equity as per IND AS	3,38,78,17,454.00	3,38,64,28,490.00
F. Reconciliation of total comprehensive income as at March 31, 2017		March 31, 2017
Profit after tax as per previous GAAP		13,88,964.00
Adjustments:		-
Profit after tax as per Ind AS Other comprehensive income		13,88,964.00
Total Other comprehensive income as per Ind AS		13,88,964.00

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Mar 31, 2014

1.1 Contingent Liabilities & Comments:

a) Guarantee Given by the Company''s banker as at March 31, 2014 is Rs.NIL (previous year : Rs. NIL )

1.2 Related Party Transaction a) Key Managerial Person:-

Mangesh Gurav - Director

Kiran Thakore - Director

Kiran Jethalal Soni - Director

Nikhil Pednekar - Director

Ninad Deshmukh - Director

Rajgopalan Iyenger - Director

Rajesh Lavekar - Director

Vinod Shinde - Director

Prakash Naik - Director

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Mar 31, 2012

* The Company has not received any memorandum (as required to be filed by the Supplier with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March 2012 as Micro, Small or Medium Enterprises. Consequently the amount paid / payable to these parties during the year is NIL.

(a) * The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) Current liabilities do not include any amount to be credited to investor education and protection fund.

1.1: Contingent Liabilities & Comments

a ) Guarantee Given by the Company''s Banker as at March 31, 2012 is Rs.NIL ( previous year : Rs. NIL )

1.2 : Quantitative Particulars a ) Capacities : -

License Capacity -- Not Applicable

Install Capacity -- Not Applicable

1.3 Related Party Transaction

a) Key Managerial Person

Devang Master - Director

Mangesh Gurav- Director

Suhas Ganpule- Director

1.4 The previous year figures have been regrouped, rearranged wherever necessary.

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Mar 31, 2009

1) The various balances (Debit and Credit) appearing in the Balance sheet are unconfirmed and are stated as certified by the Management and as recorded in the Books. This includes balances of few banks.

2) Sundry Debtors, Creditors, Loans & Advances are stated at the ordinary course of business. In case of irrecoverable, un-reconciled, inter party transfer, debit note, credit note of sundry debtors, creditors, loans & advances, are stated as per managements judgments/decision, final settlement of accounts with the parties are subject to confirmation.

3) As per information and explanation given by the Management, Advances given to various parties are in nature of interest free advances, hence no interest has been provided during the year. We are further informed that during the year no loans and advance have been given to any director/s, relatives and under the same management concerns directly or indirectly.

4) Expenditure in respect of which third party evidences were not produced for our verification, are verified from vouchers prepared and certified by the management and as recorded in the books.

5) The company has not raised any money by public issue during the year. During the year, the Company raised US$2002160.58 by issuing 493143 Global Depository Receipts (GDR) 1 GDR=10 Equity Shares ) by allotting 4931430 Nos equity shares each of Re.l/- at a premium of Rs. 16.50/- per equity share. Hence paid up share capital has increased by Rs.4931430/- and share premium account by Rs.81368595/- A sum of USD$2002160.58 is lying in FD Account with, European American Investment Bank AG Vienna ( Austria ). The same has been accounted at prevailing currency rate.

6) GDR issue expenses has been written off over a period of five years.

7) Details of Opening & closing stocks of goods along with Purchases & sales of goods traded in by the Company.

8) Remuneration Paid to the Directors is Rs. 762038/- (Previous Year -Rs. 708600/-)

9) The Company did not have any transactions with small scale industrial (SSI) undertaking during the year ended march 31s, 2009 and hence there are no amount due to such undertaking the identification of SSI undertaking is based on the managements knowledge of their status.

The Company has not received any information from the suppliers regarding their status under the Micro, Small and Medium Enterprises development Act 2006 and hence disclosures if any, relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

10) Previous year figures are rearranged and regrouped wherever necessary.