Notes to Accounts of SORIL Infra Resources Ltd.

Mar 31, 2018

1. CORPORATE OVERVIEW

SORIL Infra Resources Limited (formerly known as Store One Retail India Limited) (“the Company”) is a Public Limited Company incorporated in India with its registered office in Delhi, India. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

SORIL Infra Resources Limited was incorporated as Pyramid Retail Limited on March 18, 2005. The name of the company was subsequently changed to Indiabulls Retail Services Limited on May 22, 2008 and then changed to Store One Retail India Limited on September 30, 2009 and now further changed to SORIL Infra Resources Limited on December 21, 2016. The company received fresh certificate of incorporation consequent upon the change of name, from the Registrar of Companies, National Capital Territory of Delhi and Haryana.

The Company is in the main business of Equipment renting services, Management and maintenance services, LED Lighting and Construction, advisory and other related activities.

SORIL Holding and Ventures Limited (formerly known as Indiabulls Wholesale Services Limited), Holding Company of the Company, erstwhile Subsidiary of Indiabulls Real Estate Limited, completed the acquisition of 63.92% of the outstanding Equity Share Capital of the Company from the then existing promoters in terms of the Share Purchase Agreement dated December 08, 2007 and Public Announcement dated December 09, 2007. In the open offer, which concluded on April 10, 2008, IBWSL purchased 310 shares from the general public.

The Company had invested Rs. 5 Lakhs in Store One Infra Resources Limited, a wholly owned subsidiary on November 20, 2015.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENT

a) General information and statement of compliance with Ind AS

These financial statements (‘financial statements’) of the Company have been prepared and presented in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended by the Companies (Indian Accounting Standards)(Amendment) Rules, 2016, notified under Section 133 of the Companies Act, 2013, the relevant provisions of the Companies Act, 2013 (“the Act”) The Company has uniformly applied the accounting policies during the periods presented.

For all periods up to and including the year ended March 31, 2017, the Company has prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP). These financial statements for the year ended March 31, 2018 are the first which the Company has prepared in accordance with Ind AS. For the purpose of corresponding figures, set of financial statements for the year ended March 31, 2017 and opening balance sheet as at April 01, 2016 are also prepared under Ind AS.

As these are the first financial statements prepared in accordance with Indian Accounting Standards (Ind AS), Ind AS 101, First-time Adoption of Indian Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows of the Company is provided in Note 35.

The financial statements for the year ended March 31, 2018 were authorized and approved for issue by the Board of Directors on May 02, 2018.

b) Basis of accounting

The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain financial assets and financial liabilities and share based payments which are measured at fair values as explained in relevant accounting policies. Fair valuations related to financial assets and financial liabilities are categorised into level 1, level 2 and level 3 based on the degree to which the inputs to the fair value measurements are observable.

c) Recent accounting pronouncement

In March, 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying amendments to Ind AS 12 ‘Income taxes’, Ind AS 21 ‘The effects of changes in foreign exchange rates’ and also introduced new revenue recognition standard Ind AS 115 ‘Revenue from contracts with customers’. These amendments rules are applicable to the Company from April 01, 2018.

Ind AS 115 ‘Revenue from contracts with customers’

Ministry of Corporate Affairs (‘MCA’) has notified new standard for revenue recognition which overhauls the existing revenue recognition standards including Ind AS 18 - Revenue and Ind AS 11 - Construction contracts. The new standard provides a control-based revenue recognition model and provides a five step application principle to be followed for revenue recognition:

1. Identification of the contracts with the customer

2. Identification of the performance obligations in the contract

3. Determination of the transaction price

4. Allocation of transaction price to the performance obligations in the contract (as identified in step 2)

5. Recognition of revenue when performance obligation is satisfied.

Amendment to Ind AS 12 ‘Income taxes’

The amendment to Ind AS 12 requires the entities to consider restriction in tax laws in sources of taxable profit against which entity may make deductions on reversal of deductible temporary difference (may or may not have arisen from same source) and also consider probable future taxable profit.

Amendment to Ind AS 21 ‘The effects of changes in foreign exchange rates’

The amendment to Ind AS 21 requires the entities to consider exchange rate on the date of initial recognition of advance consideration (asset/liability), for recognising related expense/income on the settlement of said asset/ liability.

The Company is evaluating the requirements of the amendments and their impact on the financial statements.

Note:-

Discarded fixed assets:-

During the year ended March 31, 2018, the Company has discarded unusable fixed assets at gross book value of Rs. 1,587.12 Lakhs. Property, plant and equipment pledge as security:-

Property, plant and equipment and other intangible assets has been pledge as security for bank borrowings.

Capitalisation of borrowing cost:-

No borrowing cost has been capitalised in property, plant and equipment and other intangible assets.

v Rights, preferences and restrictions attached to equity

The holders of equity shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at meetings of the Company. In the event of liquidation of the Company, the remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date. All shares rank equally with regard to the Company’s residual assets, except that holders of preference shares participate only to the extent of the face value of the shares.

vi 9% Redeemable non -cumulative, non-convertible preference share of face value of Rs. 10 each fully paid up issued at premium of Rs. 870 each is presented as unsecured borrowings.

vii Dividend on preference share @ 9% per annum has to be accrued and paid on approval by the Board of Directors. Preference dividend is presented as finance cost in congruence with the presentation of preference share as unsecured borrowings.

Nature and purpose of other reserves Securities premium reserve

Security premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of Companies Act, 2013

Deferred employee compensation reserve

The reserve is used to recognize the expenses related to stock options issued to employees under the Company’s employee stock option scheme.

ii Rights, preferences and restrictions attached to preference shares

All shares rank equally with regard to the Company’s residual assets, except that holders of preference shares participate only to the extent of the face value of the shares.

iv 9% Redeemable non-cumulative, non-convertible preference share presented as unsecured borrowings as per Ind AS accounting standard.

v The Company has working capital facility with RBL Bank Limited. Cash Credit Facility of Rs. 1,083.71 (March 31, 2017: Rs. 1,996.09, April 01, 2016: Nil) Lakhs having an interest rate of 9.6% (March 31, 2017: 10%) per annum and foreign currency term loan of Rs. 1,000.00 (March 31, 2017: Nil, April 01, 2016: Nil) Lakhs at interest rate of 8.45% per annum. The cash credit facility is of Rs. 3,000.00 lakhs and is secured against (i) first charge on all current assets includes book debts, inventory and others assets (both present and future) of the Company other than those assets exclusively charged to other lenders. (ii) Further Secured by corporate guarantee given by holding company SORIL Holding and Ventures Limited (formerly known as Indiabulls Wholesale Services Limited).

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

(ii) Corporate social responsibility expenses

(a) Gross amount required to be spent by the company during the year ended March 31, 2018 : Rs. 74.25 lakhs (March 31, 2017 : Rs. 79.36 lakhs).

(b) Amount spent during the year on:

NOTE - 3

Earnings per equity share

Earnings per share (‘EPS’) is determined based on the net profit attributable to the shareholders’ of the Company. Basic earnings per share is computed using the weighted average number of shares outstanding during the year. Diluted earnings per share is computed by using the weighted average number of dilutive common equivalent shares outstanding during the year including share options, except where the result would be anti-dilutive.

Option granted to employees under the Schemes, SORIL Infra ESOS-2009 and SORIL Infra ESOS-2009(II), are considered to be potential equity shares. They have been included in the determination of diluted earning per share to the extent they are dilutive. Details relating to the option are set out in Note -41.

B Fair value hierarchy of financial assets and liabilities measured at fair value:

The fair values of the financial assets and liabilities are 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 Company uses the following hierarchy for determining and disclosing the fair value of financial instruments based on the input that is significant to the fair value measurement as a whole:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all Equity Shares which are traded on the stock exchanges, is valued using the closing price at the reporting date.

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 company 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.

The management assessed that cash and bank balances, trade receivables, loans, trade payables, borrowings (cash credits, foreign currency loans, working capital loans) and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

During the reporting period ending March 31, 2018 and March 31, 2017, there was no transfer between level 1 and level 2 fair value measurement.

NOTE - 4

Financial risk management objectives

The Company’s principal financial liabilities comprise of borrowings, trade and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade receivables, investments, cash and cash equivalents, other bank balances and other financial assets that arise directly from its operations.

The Company’s activities expose it to market risk, liquidity risk and credit risk.

A Credit risk:

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily trade receivables and from its financing/investing activities, including deposits with banks, mutual fund investments and foreign exchange transactions. The Company has no significant concentration of credit risk with any counterparty.

The customer profile largely includes renowned private corporates and industries houses, accordingly company’s customer credit risk is very low. In case of equipment renting business the project cycle is around 9 to 24 Months. General payment terms provide for mobilisation advance, security deposit with a credit period of 30-90 days; for LED lighting business the company collects earnest money deposits and has a credit rating mechanism.

The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. The Company has credit evaluation policy for each customer and, based on the evaluation, credit limit of each customer is defined.

As per simplified approach, the Company will makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Provision for expected credit losses

The Company provides for 12 month expected credit losses for following financial assets:-

B Liquidity risk

The Company manages liquidity risk by maintaining sufficient cash and investment in mutual funds and loan given to fellow subsidiaries and by having access to funding through an adequate amount of committed credit line. Given the need to fund diverse businesses, the Company maintains flexibility in funding by maintaining availability under committed credit line to meet obligations when due. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

C Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive instruments.

(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 prevailing market interest rates. The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. Equipment loans are on fixed rate basis and hence not subject to interest rate risk. The cash credit facility is on floating rate basis.

(ii) Equity price risk:

The Company is not exposed to equity price risk arising from Equity Investments (other than Subsidiary, carried at cost).

(iii) Foreign exchange risk:

Foreign exchange risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates to import of LED leghiting, capital equipment and spare parts.

The Company regularly evaluates exchange rate exposure arising from foreign currency transactions. The Company follows the established risk management policies and standard operating procedures.

NOTE - 5

First time adoption of Ind AS:

The Company has prepared financial statements for the year ended March 31, 2018, in accordance with Ind AS for the first time. For the periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP).

The accounting policies set out in Note 2 have been applied in preparing these financial statements for the year ended March 31, 2018 including the comparative information for the year ended March 31, 2017 and the opening Ind AS balance sheet on the date of transition i.e. April 01, 2016.

In preparing its Ind AS balance sheet as at April 01, 2016 and in presenting the comparative information for the year ended March 31, 2017, the Company has adjusted amounts reported previously in the financial statements prepared in accordance with previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows.

Optional exemptions availed and mandatory exceptions

In preparing these financial statements, the Company has applied below mentioned optional exemptions and mandatory exceptions:

A. Optional exemptions availed Property, plant and equipments

As per Ind AS 101 an entity may elect to:

(i) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost at that date.

(ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at the date of the revaluation, provided the revaluation was, at the date of the revaluation, broadly comparable to (a) fair value or (b) cost or depreciated cost under Ind AS adjusted to reflect, for example, changes in a general or specific price index.

(iii) use carrying values of property, plant and equipment as on the date of transition to Ind AS (which are measured in accordance with previous GAAP and after making adjustments relating to decommissioning liabilities prescribed under Ind AS 101) if there has been no change in its functional currency on the date of transition.

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment.

Classification and measurement of financial assets

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

B. Mandatory exceptions Estimates

As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies. As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

- Impairment of financial assets based on expected credit loss model.

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

E 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.

** Actuarial gain and loss

Under Ind AS, all actuarial gains and losses are recognised in other comprehensive income. Under previous GAAP the Company recognised actuarial gains and losses in profit or loss. Accordingly, actuarial loss of Rs. 13.42 lakhs recognised in the Statement of profit and loss has been recognised under other comprehensive income under Ind AS. However, this has no impact on total comprehensive income and total equity as on April 01, 2016 and as on March 31, 2017.

3 There is no Impact of Ind AS adoption on the statements of cash flows for the year ended March 31, 2017.

NOTE - 6 Capital management

The Company’s objectives when managing capital are to (a) maximise shareholder value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital. For the purposes of the Company’s capital management, capital includes issued capital, share premium and all other equity reserves attributable to the equity holders.

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.

Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances (including non-current earmarked balances) and current investments.

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

In addition, the Company has financial covenants relating to the borrowing facilities that it has taken from the lenders like interest coverage service ratio, Debt to EBITDA, etc. which is maintained by the Company.

NOTE - 7 Operating lease

The Company has taken premises on operating leases and lease rent of Rs. 679.92 Lakhs (March 31, 2017: Rs. 419.30 Lakhs) in respect of the same has been charged to statement of profit and loss for the year ended March 31, 2018. The minimum lease rentals payable in respect of such operating leases, are as under:

NOTE - 8

Contingent liabilities and commitment

Contingent liabilities, not acknowledged as debt, include:

a) Bank Guarantees*:

Bank Guarantees of Rs. 21.93 lakhs (March 31, 2017: Rs. 1.25 lakhs, April 01, 2016: Rs. 1.25 lakhs) issued in favour of VAT Authorities.

b) Claims (excluding interest) against the Company not acknowledged as debts: Rs. 2,780.00 lakhs (March 31, 2017: Rs. 1,406.03 lakhs, April 01, 2016: Rs. 148.03 lakhs).

c) Open status of letter of credit issued is of Rs. 382.62 lakhs (March 31, 2017: Rs. Nil, April 01, 2016: Rs. Nil).

d) Contingent liabilities in respect of income-tax demands for which appeals have been filed Rs. Nil (March 31, 2017: Rs. 16.89 lakhs, April 01, 2016: Rs. 165.15 lakhs) and of VAT for which appeals have been filed Rs. Nil (March 31, 2017: Rs. Nil, April 01, 2016: Rs. 111.64 lakhs).

e) There are certain others claims and legal cases against the Company in the ordinary course of business. Management has evaluated the same and depending upon the facts and after due evaluation of legal aspects of each case, no amount has been provided in respect of the claims made against the Company under these cases. Company does not expect any liability and these litigations/lawsuits and claims may, individually or in aggregate, will not have any material adverse effect on the financial position of the Company.

Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 1,292.57 lakhs (March 31, 2017: Rs. 107.69 lakhs, April 01, 2016: Rs. 79.82 lakhs).

NOTE - 9

Share Based Payments

Employees’ Stock Option Schemes of the Company:

1. SORIL Infra Resources Limited Employee Stock Option Scheme - 2009

The Shareholders vide postal ballot passed a special resolution on February 9, 2009 for issue of 15,00,000 (fifteen lakhs) shares towards issue of Employee Stock Option Scheme -2009 in supersession of resolution passed on May 12, 2008 for ESOP -2008.

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on November 03, 2017, granted, under the SORIL Infra Resources Limited Employee Stock Option Scheme - 2009 (“SORIL Infra ESOS-2009” or “Scheme”), 15,00,000 (fifteen lakhs) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 168.30 per option, being the latest available closing market price on the National Stock Exchange of India Limited, on the date of grant. The stock options so granted, shall vest in the eligible employees within 5 years beginning from first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of 5 years from the relevant vesting date.

The Scheme had earlier granted option at Rs. 30.45 per option and no option were exercised and allotted till March 31, 2017.

The title of the Scheme was changed from Store One Retail India Limited Employees Stock Option Scheme - 2009 to SORIL Infra Resources Limited Employee Stock Option Scheme - 2009 as per the revised certificate of incorporation dated December 21, 2016.

Following is a summary of options granted under the Scheme:

Weighted average share price of exercised option on the date of exercise was for the year ended March 31, 2018: Rs. Nil (March 31 2017: Rs. Nil).

The fair value of the option under Scheme using the black scholes model, based on the following parameters is Rs. 18.77 per option, as certified by an independent valuer.

The expected volatility was determined based on historical volatility data of the Company’s shares listed on the National Stock Exchange of India Limited.

2. SORIL Infra Resources Limited Employee Stock Option Scheme - 2009(II)

Shareholder’s of the Company in their Annual General Meeting held on September 30, 2009 have approved by way of special resolution the SORIL Infra Resources Limited Employee Stock Option Scheme - 2009(II) (“SORIL Infra ESOS-2009(II)” or “Scheme-II”), covering 30,00,000 (thirty lakhs) equity settled options for eligible employees of the Company, its subsidiaries, its fellow subsidiaries and the holding company.

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on November 03, 2017, granted, under the SORIL Infra Resources Limited Employee Stock Option Scheme - 2009(II) (“SORIL Infra ESOS-2009(II)” or “Scheme-II”), 30,00,000 (thirty lakhs) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 168.30 per option, being the latest available closing market price on the National Stock Exchange of India Limited, on the date of grant. The stock options so granted, shall vest in the eligible employees within 5 years beginning from first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of 5 years from the relevant vesting date.

The title of the Scheme-II was changed from Store One Retail India Limited Employees Stock Option Scheme - 2009(II) to SORIL Infra Resources Limited Employee Stock Option Scheme - 2009(II) as per the revised certificate of incorporation dated December 21, 2016.

Following is a summary of options granted under the Scheme-II

Weighted average share price of exercised option on the date of exercise was for the year ended March 31, 2018: Rs. Nil (March 31, 2017: Rs. Nil).

The fair value of the option under Scheme-II using the black scholes model, based on the following parameters is Rs. 18.77 per option, as certified by an independent valuer.

The expected volatility was determined based on historical volatility data of the Company’s shares listed on the National Stock Exchange of India Limited.

During the year, the Company has recognised Share based payment expenses of Rs. 191.36 Lakhs (March 31, 2017: Rs. Nil).

NOTE - 10 Employee benefits

Defined contribution plan

The Company has made Rs. 4.84 lakhs (March 31, 2017 - Rs. 2.41 lakhs) contribution in respect of provident fund. Defined benefit plan

The Company has the following Defined Benefit Plans:

- Gratuity (Unfunded)

- Compensated absences (Unfunded)

Compensated absences

The leave obligations cover the Company’s liability for permitted leaves. The amount of provision of Rs. 78.73 lakhs (March 31, 2017 - Rs. 44.84 lakhs, April 01, 2016 - Rs. 31.84 lakhs) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months, therefore based on the independent actuarial report, only a certain amount of provision has been presented as current and remaining as non-current. The weighted average duration of the defined benefit obligation is 18.96 years (March 31, 2017: 19.13 years).

As the Company does not have any plan assets, the movement of present value of defined benefit obligation and fair value of plan assets has not been presented.

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience.

Sensitivities due to mortality and withdrawal are not material and hence impact of change not calculated.

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employee’s last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. Gratuity plan is a non-funded plan. The weighted average duration of the defined benefit obligation is 19.13 years (March 31, 2017: 18.96 years).

As the Company does not have any plan assets, the movement of present value of defined benefit obligation and fair value of plan assets has not been presented.

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience

Sensitivities due to mortality and withdrawal are not material and hence impact of change not calculated.

NOTE - 11

Dividend on preference shares

Under Indian GAAP, Till March 31, 2016, proposed dividends including dividend distribution tax (DDT) are recognised as a liability in the period to which they relate, irrespective of when they are declared. In accordance with the amendment in Accounting Standard 4 vide notification dated March 30, 2016, applicable to accounting period beginning from April 01, 2016, the proposed dividend is recognised as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.

Accordingly, preference dividend for Rs. 26.76 lakhs which was declared and approved on May 26, 2017 and dividend distribution tax of Rs. 5.45 lakhs, have been recognised in FY 2017-18.

NOTE - 12 Other information

a) There are no dues payable under section 125 of Companies Act, 2013 as at March 31, 2018.

b) In the opinion of the Board of Directors, all current and non-current assets including non-current loans, appearing in the balance sheet as at March 31, 2018, have a value on realization, in the ordinary course of the Company’s business, at least equal to the amount at which they are stated in the financial statements and no provision is required to be made against the recoverability of these balances.

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Mar 31, 2016

(1) Income Tax Current Tax

The current tax for the year ended March 31, 2016 includes current year tax charge of Rs. Nil (Previous year Rs. 199,353). Deferred Tax Asset In compliance with Accounting Standard 22 (AS 22) - ''Accounting for taxes on income'', as specified under section 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended), the Deferred Tax Assets on brought forward losses and unabsorbed depreciation has not been recognized as there is no virtual certainty supported by convincing evidence of the subsequent realization of such deferred tax assets in future.

(2) Earnings Per Equity Share

The basic earnings per equity share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of Employee Stock Option Plan as appropriate.

(3) Contingent Liabilities and Commitments Contingent liabilities:

a) Bank Guarantees: Bank Guarantees of Rs. 125,000 (Previous Year Rs. 125,000) issued in favour of VAT Authorities.

b) Claims (Excluding interest) against the Company not acknowledged as debts: Rs. 14,802,793 (Previous Year: Rs. 5,353,400).

c) Contingent liabilities in respect of income-tax demands for which appeals have been filed Rs. 1,65,14,989 (previous year : Rs. 1,55,06,058) and VAT for which appeals have been filed Rs. 11,164,268 (previous year : Rs. 11,164,268)

d) There are legal cases against the Company in the ordinary course of business. Management has evaluated the same and depending upon the facts and after due evaluation of legal aspects of each case, adequate amounts have been provided in respect of the claims made against the Company under these cases. Company does not expect any further liability and these litigations /lawsuits and claims may, individually or in aggregate, will not have any material adverse effect on the financial position of the Company.

Commitments:

e) Estimated amount of Contracts remaining to be executed on capital account (net of advances) Rs. 7,982,136 (Previous Year Rs. 8,690,608).

(4) Employee Benefits (Non Funded)

Gratuity

In accordance with "The Payment of Gratuity Act, 1972", the Company provides for gratuity a defined benefit retirement plan (the "Gratuity Plan") covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment. The amount of payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation and this plan is unfunded. The Company had charged Rs. 11,40,688 (previous year Charge Rs. 2,837,851) during the year ended March 31, 2016 and the amount outstanding as at March 31, 2016 is Rs. 57,71,467 (previous year Rs. 5,003,216).

Compensated Absences

Eligible employees are entitled to accumulate compensated absences up to prescribed limits in accordance with the Company''s policy and receive cash in lieu thereof. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date. Such measurement is based on actuarial valuation as at balance sheet date carried out by a qualified actuary. The Company had charged Rs. 10,46,027 (previous year charge Rs. 997,714) during the year ended March 31, 2016 and the amount outstanding as at March 31, 2016 is Rs. 31,84,222 (previous year Rs. 2,159,911).

(5) Employees Stock Options Schemes(ESOS)

Employees'' Stock Option Schemes of the Company:

i. Store One Retail India Limited Employees Stock Option Scheme - 2009

The Shareholders vide postal ballot passed a special resolution on February 9,2009 for issue of 1,500,000(0ne Million five hundred thousands) shares towards issue of Employee Stock Option Scheme -2009 in supersession of Resolution passed on May 12,2008 for ESOP -2008 .

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on June 05, 2009, granted, under the "India bulls Retail Services Limited Employees Stock Option Scheme - 2009", 1,500,000 (One Million five hundred thousands ) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 30.45 per option, being the latest available closing market price on the National Stock Exchange of India Limited, as on June 04, 2009. The stock options so granted, shall vest in the eligible employees within 10 years beginning from June 06, 2010, the first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

Pursuant to the shareholders'' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from India bulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from India bulls Retail Services Limited Employees Stock Option Scheme - 2009 to ''Store One Retail India Limited Employees Stock Option Scheme - 2009.

The Company follows the intrinsic value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share Based Payments ("Guidance Note") issued by the Institute of Chartered Accountants of India.

iii. Store One Retail India Limited Employees'' Stock Options Scheme - 2009 (II) Members of the Company in their annual general meeting held on September 30, 2009 have approved by way of special resolution the "India bulls Retail Services Employees Stock Option Scheme - 2009 (II) ("IBRSL ESOS - 2009") covering 3,000,000 (Three Millions ) equity settled options for eligible employees of the Company, its subsidiaries, its fellow subsidiaries and Holding Company.

The options to be granted, under the above scheme representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, will be granted at an exercise price which will be equal to latest available closing market price on the National Stock Exchange of India Limited, on the date of grant . The stock options so granted, shall vest in the eligible employees within 10 years beginning from their respective dates of grants . The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

Pursuant to the shareholders'' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from India bulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from India bulls Retail Services Limited Employees Stock Option Scheme - 2009(II) to ''Store One Retail India Limited Employees Stock Option Scheme - 2009(II).

The Company follows the intrinsic value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share based Payments ("Guidance Note") issued by the Institute of Chartered Accountants of India. Since no options have been granted therefore there is no compensation expense which need to be recognized by the Company.

Other disclosures as to proforma effect had the fair value method been followed and other related disclosure is not applicable as no options have been granted.

(6) In the opinion of the Board of Directors, all current assets, loans and advances appearing in the balance sheet as at March 31, 2016 have a value on realization in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet after appropriate provision. Certain balances shown under loans and advances, sundry creditors and balances with banks are subject to confirmation/reconciliation. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of such balances, other than as already provided in the financial statements.

(7) The company has not entered into any foreign exchange derivative instruments during the year. There are no outstanding foreign currency exposures as at March 31, 2016.

(8) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2015

1. Company Overview

i) Store One Retail India Limited ("the Company") was incorporated as Pyramid Retail Limited on March 18, 2005. The name of the company was subsequently changed to Indiabulls Retail Services Limited on 22nd May, 2008 and further changed to Store One Retail India Limited on 30th September, 2009 . The company received fresh certificate of incorporation consequent upon the change of name, from the Registrar of Companies, National Capital Territory of Delhi and Haryana on October 6, 2009.

Indiabulls Wholesale Services Limited (IBWSL) Holding Company of the Company , erstwhile Subsidiary of Indiabulls Real Estate Limited, completed the acquisition of 63.92% of the outstanding Equity Share Capital of the Company from the then existing promoters in terms of the Share Purchase Agreement dated December 08, 2007 and Public Announcement dated December 09, 2007. In the open offer, which concluded on April 10, 2008, IBWSL purchased 310 shares from the general public.

2. Basis of Preparation of financial statement

i) Statement of compliance

The financial statements have been prepared on going concern basis under the historical cost basis, in accordance with the generally accepted accounting principles in India and in compliance with the applicable accounting standards as specified under section 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). All assets and liabilities have been classified as current or non-current as per the normal operating cycle and other criteria set out in the Companies Act 2013.

ii) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities, if any, on the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management's knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

b. Equity Shares Issued during the year

During the current year, the Company has issued and allotted of 44,00,000 equity share of face value '10 each of the Company to Indiabulls Wholesale Services Limited, the Holding Company, on preferential allotment basis at an issue price of '30.50 per equity share.

c. Rights, preferences and restrictions attached to Equity/Preference Shares

The company has only one class of equity shares having a face value of ' 10 (Rupees Ten) per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. In the event of distributing dividends by the company and winding up, the preference shareholders will be preferred over the equity shareholders. The holders of preference shares are entitled to receive dividends, but they do not have any voting rights except for in the conditions mentioned in the Companies Act 2013 to the extent applicable. All shares rank equally with regard to the Company's residual assets, except that holders of preference shares participate only to the extent of the face value of the shares.

(iii) Shares reserved for issue under options

There are no shares reserved under options as at 31st March,2015 (Refer note-29)

Exercise of Shares Warrants

During the year , the Company has issued and allotted 44,00,000 (Forty Four Lac) Equity Shares of face value Rs. 10/- each, upon excercise of equivalent number of warrants at an excercise price of Rs.30.50 per share by Indiabulls Wholesale Services Limited (Holding Company). The 25% advance received towards subscription of Share warrants has been adjusted on excercise of the referred warrants.

3. Contingent liabilities and Commitments:

Contingent liabilities:

a) Bank Guarantees:

*Bank Guarantees of Rs. 200,000 (Previous Year Rs. 125,000) issued in favour of VAT Authorities, Secured by way of pledge of Fixed Deposits for Rs. 200,000 (Previous Year Rs. 125,000).

b) Claims (Excluding interest) against the Company not acknowledged as debts: Rs. 5,353,400 (Previous Year: Rs. 4,515,200).

c) Contingent liabilities in respect of income-tax demands for which appeals have been filed Rs. 23,324,915 (previous year : Rs. 8,280,195)

d) There are legal cases against the Company in the ordinary course of business. Management has evaluated the same and depending upon the facts and after due evaluation of legal aspects of each case, adequate amounts have been provided in respect of the claims made against the Company under these cases. Company does not expect any further liability and these litigations /lawsuits and claims may, individually or in aggregate, will not have any material adverse effect on the financial position of the Company.

Commitments:

e) Estimated amount of Contracts remaining to be executed on capital account (net of advances) Rs. 8,690,608 (Previous Year Rs. 27,197,289).

4. Employee benefits ( non funded)

Gratuity

In accordance with "The Payment of Gratuity Act, 1972", the Company provides for gratuity a defined benefit retirement plan (the "Gratuity Plan") covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment. The amount of payment is based on the respective employee's last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation and this plan is unfunded. The Company had charged Rs. 2,837,851 (previous year Charge Rs. 1,067, 363) during the year ended March 31, 2015 and the amount outstanding as at March 31, 2015 is Rs. 5,003,216 (previous year Rs. 2,338,220).

Compensated Absences

Eligible employees are entitled to accumulate compensated absences up to prescribed limits in accordance with the Company's policy and receive cash in lieu thereof. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date. Such measurement is based on actuarial valuation as at balance sheet date carried out by a qualified actuary. The Company had charged Rs. 997,714 (previous year charge Rs. 655,161) during the year ended March 31, 2015 and the amount outstanding as at March 31, 2015 is Rs. 2,159,911 (previous year Rs.1,182,102).

5. Employees Stock Options Schemes(ESOS):

Employees' Stock Option Schemes of the Company:

i. Store One Retail India Limited Employees Stock Option Scheme - 2009

The Shareholders vide postal ballot passed a special resolution on February 9,2009 for issue of 1,500,000(One Million five hundred thousands) shares towards issue of Employee Stock Option Scheme -2009 in supersession of Resolution passed on May 12, 2008 for ESOP -2008 .

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on June 05, 2009, granted, under the "Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009", 1,500,000 (One Million five hundred thousands ) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 30.45 per option, being the latest available closing market price on the National Stock Exchange of India Limited, as on June 04, 2009. The stock options so granted, shall vest in the eligible employees within 10 years beginning from June 06, 2010, the first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

Pursuant to the shareholders' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from Indiabulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009 to 'Store One Retail India Limited Employees Stock Option Scheme - 2009.

The Company follows the intrinsic value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share based Payments ("Guidance Note") issued by the Institute of Chartered Accountants of India. Since, on the date of grant, the intrinsic value of the options granted was equal to the exercise price, no compensation expense in respect of the options granted was recorded by the Company.

iii. Store One Retail India Limited Employees' Stock Options Scheme - 2009 (II)

Members of the Company in their annual general meeting held on September 30, 2009 have approved by way of special resolution the "Indiabulls Retail Services Employees Stock Option Scheme - 2009 (II) ("IBRSL ESOS - 2009") covering 3,000,000 (Three Millions ) equity settled options for eligible employees of the Company, its subsidiaries, its fellow subsidiaries and Holding Company.

The options to be granted, under the above scheme representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, will be granted at an exercise price which will be equal to latest available closing market price on the National Stock Exchange of India Limited, on the date of grant . The stock options so granted, shall vest in the eligible employees within 10 years beginning from their respective dates of grants . The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

Pursuant to the shareholders' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from Indiabulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009(II) to 'Store One Retail India Limited Employees Stock Option Scheme - 2009(II).

The Company follows the intrinsic value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share based Payments ("Guidance Note") issued by the Institute of Chartered Accountants of India. Since no options have been granted therefore there is no compensation expense which need to be recognised by the Company.

Other disclosures as to proforma effect had the fair value method been followed and other related disclosure is not applicable as no options have been granted.

6. Segment Reporting:

Segment information for the Year ended March 31, 2015:, as per Accounting Standard AS-17, Segment Reporting. (a) Primary segment information (by business segments)

b) The group's primary business segments are reflected based on principal business activities carried on by the Company. The Company operates in two reportable business segments i.e. Facility Maintenance Services and other related parties and Equipment Hiring Services. Other non-reportable segments including wholesale trading, construction related materials & services and tour & travel services have been shown under unallocated.

c) The Company operates solely in one Geographic segment namely "Within India" and hence no separate information for Geographic segment wise disclosure is required.

d) Revenues and expenses directly attributable to segments are reported under each reportable segment. All other revenue and expenses which are not attributable or allocable to segments have been disclosed as unallocable revenue and expenses respectively. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

7. Disclosures in respect of Related Parties as per Accounting Standard, AS-18, 'Related Parties Disclosures' as notified by the Companies (Accounting Standards) Rules, 2006, as amended: a) Name and Nature of Relationship with related parties:

Relationship Name of Related parties

i) Related Party where control exist

Holding Company Indiabulls Wholesale Services Limited

ii) Other related parties:

Fellow Subsidiary Company* Albasta Wholesale Services Limited (formerly known as Albasta Power Limited)

Indiabulls Technology Solutions Limited (till July 18, 2014)

Airmid Aviation Services Limited (from December 23, 2014)

* With whom transactions entered during the year

8. Income Tax

Current Tax

The current tax for the year ended March 31, 2015 includes current year tax charge of Rs. 199,353 (Previous year Rs. 438,109).

Deferred Tax Asset

In compliance with Accounting Standard 22 (AS 22) - 'Accounting for taxes on income', as specified under section 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended), the Deferred Tax Assets on brought forward losses and unabsorbed depreciation has not been recognized as there is no virtual certainty supported by convincing evidence of the subsequent realization of such deferred tax assets in future.

9. Earnings Per Equity Share (EPS):

The basic earnings per equity share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of Employee Stock Option Plan as appropriate.

10. In the opinion of the Board of Directors, all current assets, loans and advances appearing in the balance sheet as at March 31, 2015 have a value on realization in the ordinary course of the Company's business at least equal to the amount at which they are stated in the balance sheet after appropriate provision. Certain balances shown under loans and advances, sundry creditors and balances with banks are subject to confirmation/reconciliation. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of such balances, other than as already provided in the financial statements.

11. The company has not entered into any foreign exchange derivative instruments during the year. There are no outstanding foreign currency exposures as at March 31, 2015.

12. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2014

(1) Company Overview:

i) Store One Retail India Limited ("the Company") was incorporated as Pyramid Retail Limited on March 18, 2005. The name of the company was subsequently changed to Indiabulls Retail Services Limited on 22nd May, 2008 and further changed to Store One Retail India Limited on 30th September, 2009 as per the provisions of the Companies Act, 1956. The company received fresh certificate of incorporation consequent upon the change of name, from the Registrar of Companies, National Capital Territory of Delhi and Haryana on October 6, 2009.

Indiabulls Wholesale Services Limited (IBWSL) Holding Company of the Company, erstwhile Subsidiary of Indiabulls Real Estate Limited, completed the acquisition of 63.92% of the outstanding Equity Share Capital of the Company from the then existing promoters in terms of the Share Purchase Agreement dated December 08, 2007 and Public Announcement dated December 09, 2007. In the open offer, which concluded on April 10, 2008, IBWSL purchased 310 shares from the general public. Indiabulls Wholesale Limited demerged from Indiabulls Real estate Limited with effect from the appointed date 1st April, 2010 vide a scheme of arrangement sanctioned by the Hon''ble High Court of Delhi at New Delhi on March 03, 2011 upon coming into effect of the IBWSL scheme of arrangement on March 31, 2011 and got listed in National Stock Exchange and Bombay Stock Exchange.

(2) Basis of Preparation of financial statement

i) Statement of compliance

The financial statements are prepared under the historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and in compliance with the applicable accounting standards as notified under the Companies (Accounting Standards) Rules, 2006, as amended and as per Revised Schedule VI to the Companies Act, 1956 ("the 1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of commencement notification of Companies Act, 2013, dated 12 September, 2013 of Ministry of Corporate Affairs) and the relevant provision of the 1956 Act and 2013 Act, to the extent applicable. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956.

ii) Use of estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known or materialized.

(4) a. Authorised Share Capital

During the previous year ended March 31, 2013, the authorized share capital of the Company has been increased from Rs. 290,000,000 (Rupees Two hundred Ninety millions) to Rs. 320,000,000 (Rupees Three hundred twenty millions) with distribution as 28,000,000 (Twenty Eight millions) equity shares of Rs. 10 (Rupees Ten) each and 4,000,000 (Four millions) Preference Shares of Rs. 10 (Rupees Ten) each, through shareholders'' authorisation by the postal ballot, result where of was declared on November 22, 2012.

b. Issuance of Fresh Equity Shares

During the previous year, the Company has pursuant to and in terms of shareholders'' authorisation through Postal Ballot, result whereof was declared on November 22, 2012 and in the meeting of board of director of the company held on December 04, 2012 issued and allotted of 3,200,000 (Three million two hundred thousands) equity share of face value Rs. 10 each of the Company to Indiabulls Wholesale Services Limited, the promoter of the Company on preferential allotment basis at an issued price of Rs. 30.50 per equity share.

c. Terms/rights attached to Equity/Preference Shares

The company has only one class of equity shares having a face value of Rs. 10 (Rupees Ten) per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. In the event of distributing dividends by the company and winding up, the preference shareholders will be preferred over the equity shareholders. The holders of preference shares are entitled to receive dividends, but they do not have any voting rights except for in the conditions mentioned in the Companies Act, 1956 and 2013 Act, to the extent applicable. All shares rank equally with regard to the Company''s residual assets, except that holders of preference shares participate only to the extent of the face value of the shares.

d. Redemption of Preference Shares

During the previous year, the Company had redeemed its 149,000 non-convertible redeemable preference shares of Rs. 10 each at a premium of Rs. 870/- per share. Post redemption 2,973,450 non-convertible redeemable preference shares are outstanding as on March 31, 2014.

(5) Money received against Share Warrants

Issuance of Shares Warrant

During the previous year ended March 31, 2013, the company had issued 4,400,000 (four million four hundred thousands) share warrant on preferential allotment basis, at a exercise price of Rs. 30.50 each, Convertible into the 4,400,000 (four million four hundred thousands) equivalent number of equity share of face value Rs. 10 each, to Indiabulls Wholesale Services Limited, the holding company, among which 25% of exercise price has been paid by the holder of warrant as upfront money. The said warrants will be exercisable upto June 5, 2014.

(6) Inventories

The Company dealt in large number of products, the inventory has been furnished only in respect of major items namely Store & Spares; Raw materials and other items. Other items are grouped together, as inventory in respect of each product is not practical, in view of the nature of operations of the Company.

During the year ending March 31, 2014, the Company has written off stock amounting Rs. 37,832,458.

Figures in respect of previous year are stated in Italics and have been regrouped wherever necessary.

(7) Contingent liabilities and Commitments:

Contingent liabilities:

a) Bank Guarantees:

i. of Rs. 100,000 (Previous Year Rs. 100,000) issued in favour of Assessing Authority, Haryana Sales Tax, Gurgaon, Secured by way of pledge of Fixed Deposits for Rs. 100,000 (Previous Year Rs. 100,000).

ii. of Rs. 25, 000 (Previous Year Rs. Nil) issued in favour of Assessing Authority- UP, Secured by way of pledge of Fixed Deposits for Rs. 25,000 (Previous Year Rs. Nil).

iii. of Rs. Nil (Previous Year Rs. 4,250,500) issued in favour of High Court of Delhi, secured by way of pledge of Fixed Deposits for Rs. Nil (Previous Year Rs. 4,250,500).

b) Claims (Excluding interest) against the Company not acknowledged as debts: Rs. 4,515,200 (Previous Year: Rs. 10,218,890).

Commitments:

Estimated amount of Contracts remaining to be executed on capital account (net of advances) Rs. 27,197,289 (Previous Year Rs. 53,105,650).

As per the best estimate of the management, no provision is required to be made in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, which would be required to settle the obligation.

(8) Employee benefits

Gratuity

In accordance with "The Payment of Gratuity Act, 1972", the Company provides for gratuity a defined benefit retirement plan (the "Gratuity Plan") covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment. The amount of payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation and this plan is unfunded. The Company had charged Rs. 1,067,363 (previous year Charge Rs. 1,164,452) during the year ended March 31, 2014 and the amount outstanding as at March 31, 2014 is Rs. 2,338,220 (previous year Rs. 2,041,762).

Compensated Absences

Eligible employees are entitled to accumulate compensated absences up to prescribed limits in accordance with the Company''s policy and receive cash in lieu thereof. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date. Such measurement is based on actuarial valuation as at balance sheet date carried out by a qualified actuary. The Company had charged Rs. 655,161 (previous year charge Rs. 680,857) during the year ended March 31, 2014 and the amount outstanding as at March 31, 2014 is Rs. 1,182,102 (previous year Rs. 1,022,023).

(9) Employees Stock Options Schemes(ESOS):

Employees'' Stock Option Schemes of the Holding Company:

During the year ended March 31, 2012, the Board of Directors and Shareholders of the Holding Company (Indiabulls wholesale Services Limited) have given their consent to create, issue, offer and allot, to the eligible employees of the Holding Company and its Subsidiary Companies, stock options not exceeding 5,000,000 in number, representing 5,000,000 Equity shares of face value of Rs. 2 each of the Company, accordingly the Indiabulls Wholesale Services Limited Employee Stock Option Scheme - 2011 ("IBWSL ESOP - 2011") has been formed. As per the scheme Exercise Price will be the market price of the equity shares of the Holding Company, being the latest available closing price, prior to the date of grant or as may be decided by the Board or Compensation Committee. These options vest uniformly over a period of 10 years, commencing one year after the date of grant. The stock option under each of the slabs, are exercisable by the option holder within a period of five years from the relevant vesting date.

The Compensation Committee of the Board of Directors of the Company granted 1,257,000 (One million Two hundred & Fifty Seven Thousands only) stock options in its meeting held on February 28, 2012, 650,000 (Six hundred & Fifty Thousands only) stock options in its meeting held on March 29, 2012, 150,000 (One hundred & Fifty Thousands only) stock options in its meeting held on July 10, 2012, 850,000 (Eight hundred & Fifty Thousands only) stock options in its meeting held on September 17, 2012, 160,000 (One hundred & Sixty Thousands only) stock options in its meeting held on held on February 2, 2013 and 150,000 (One hundred & Fifty Thousands only) stock options, in its meeting held on February 22, 2013, in terms of the IBWSL ESOP-2011. These options represent as equal number of Equity shares of face value Rs. 2 each in the Company and shall vest within ten years beginning from March 1, 2013, March 30, 2013, July 11, 2013, September 18, 2013, February 3, 2014, February 23, 2014, May 10, 2014, October 2, 2014 and November 1, 2014, being the first vesting date(s), respectively. Further the options granted under each slab, can be exercised within a period of five years from the relevant vesting date(s).

Employees'' Stock Option Schemes of the Company:

(i) Indiabulls Retail Services Limited Employees'' Stock Options Scheme - 2008

During the year ended March 31, 2009, pursuant to the Resolution passed on May 12, 2008 the Company had established the "Indiabulls Retail Services Limited Employees'' Stock Options Scheme-2008" under ("IBRSL ESOS 2008"), the Company issued equity settled options to its eligible employees to subscribe upto 1,000,000 stock options. However, this scheme was subsequently superseded by Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009'' ("IBRSL ESOS 2009"), as approved by the share holders by way of postal ballot on February 9, 2009.

(ii) Store One Retail India Limited Employees Stock Option Scheme - 2009

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on June 05, 2009, granted, under the "Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009", 1,500,000 (One million five hundred thousands) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 30.45 per option, being the latest available closing market price on the National Stock Exchange of India Limited, as on June 04, 2009. The stock options so granted, shall vest in the eligible employees within 10 years beginning from June 06, 2010, the first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

Pursuant to the shareholders'' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from Indiabulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009 to ''Store One Retail India Limited Employees Stock Option Scheme - 2009.

The Company follows the intrinsic value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share based Payments ("Guidance Note") issued by the Institute of Chartered Accountants of India. Since, on the date of grant, the intrinsic value of the options granted was equal to the exercise price, no compensation expense in respect of the options granted was recorded by the Company.

The Fair value of the options under the plan using the Black-Scholes model based on the following parameters is Rs. 24.06 per option, as calculated by an independent firm of Chartered Accountants:

(iii) Store One Retail India Limited Employees'' Stock Options Scheme - 2009 (II)

Members of the Company in their annual general meeting held on September 30, 2009 have approved by way of special resolution the "Indiabulls Retail Services Employees Stock Option Scheme - 2009 (II) ("IBRSL ESOS - 2009") covering 3,000,000 (Three Millions) equity settled options for eligible employees of the Company, its subsidiaries, its fellow subsidiaries and Holding Company.

Pursuant to the shareholders'' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from Indiabulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009(II) to ''Store One Retail India Limited Employees Stock Option Scheme - 2009(II). No shares have been granted under the scheme till date.

(10) Segment Reporting:

Segment information for the Year ended March 31, 2014:, as per Accounting Standard AS-17, Segment Reporting, as notified by the Companies (Accounting Standards) Rules, 2006, as amended.

(a) Primary segment information (by business segments)

b) The Company operates solely in one Geographic segment namely "Within India" and hence no separate information for Geographic segment wise disclosure is required.

c) The group''s primary business segments are reflected based on principal business activities carried on by the Company. The Company operates in two reportable business segments i.e. Facility Maintenance Services and Equipment Hiring Services. Other non-reportable segments including wholesale trading, construction related materials & services and tour & travel services have been shown under unallocated.

d) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis.

(11) Disclosures in respect of Related Parties as per Accounting Standard, AS-18, ''Related Parties Disclosures'' as notified by the Companies (Accounting Standards) Rules, 2006, as amended:

(a) Name and Nature of Relationship with related parties:

Relationship Name of Related parties

i) Related Party where control exist Holding Company Indiabulls Wholesale Services Limited

ii) Other related parties: Fellow Subsidiary Company* Indiabulls Technology Solutions Limited Albasta Wholesale Services Limited (formerly known as Albasta Power Limited) Key Management Personnel Mr. Abhimanyu Mehlawat, Whole- Time Director

Mr. Mehul Johnson, Director

Mr. Rajiv Rattan, Promoter of Holding Company

Mr. Sameer Gehlaut, Promoter of Holding Company

Mr. Saurabh Kumar Mittal, Promoter of Holding Company

* With whom transactions entered during the year

(12) Income Tax Current Tax

The current tax for the year ended March 31, 2014 includes current year tax charge of Rs. 438,109 (previous year: Rs. Nil).

Deferred Tax Asset

In compliance with Accounting Standard 22 (AS 22) - "Accounting for Taxes on Income", as notified under the Companies (Accounting Standards) Rules, 2006, as amended the Deferred Tax Assets has not been recognized as there is no virtual certainty supported by convincing evidence of the subsequent realization of such deferred tax assets in future.

(13) Earnings Per Equity Share (EPS):

The basic earnings per Equity Share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of Employee Stock Option Plan as appropriate.

(14) Operating lease

The Company has taken premises on operating leases and lease rent of Rs. 6,908,923 (Previous year Rs. Nil ) in respect of the same has been charged to Statement of Profit and Loss for the year ended March 31, 2014.

(15) In the opinion of the Board of Directors, all current assets, loans and advances appearing in the balance sheet as at March 31, 2014 have a value on realization in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet after appropriate provision. Certain balances shown under loans and advances, sundry creditors and balances with banks are subject to confirmation/reconciliation. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of such balances, other than as already provided in the financial statements.

(16) In respect of amounts as mentioned under Section 205C of the Companies Act, 1956, there were no dues required to be credited to the Investor Education and Protection Fund as on March 31, 2014.

(17) The company has not entered into any foreign exchange derivative instruments during the year. There are no outstanding foreign currency exposures as at March 31, 2014.

(18) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

(1) Company Overview

i) Store One Retail India Limited ("the Company") was incorporated as Pyramid Retail Limited on March 18, 2005 with an authorized capital ofRs. 21,00,00,000 divided into 2,10,00,000 equity shares of Rs.10 each. In April 2008, Indiabulls Wholesale Services Limited (IBWSL), erstwhile subsidiary of Indiabulls Real Estate Limited, completed the acquisition of 63.92% of the outstanding Equity Share Capital of the Company from the then existing promoters in terms of the Share Purchase Agreement dated December 08, 2007 and Public Announcement dated December 09, 2007 and in accordance with the provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. Pursuant to this, IBWSL and Indiabulls Real Estate Limited had made an open offer to acquire up to 20% of the voting capital of the Company at an offer price of Rs. 74.73 per share. In the open offer, which concluded on April 10, 2008, IBWSL purchased 310 shares from the general public. In accordance with the provisions of Section 21 and other applicable provisions of the Companies Act, 1956, the members of the Company passed a special resolution through Postal Ballot, on May 12,2008, and accorded their approval to change the name of the Company. The Company received fresh certificate of incorporation consequent upon change of name, from the Registrar of Companies, Maharashtra, Mumbai dated May 22, 2008 in respect of the said change. Accordingly, the name of the Company was changed to ''Indiabulls Retail Services Limited''. Further and in accordance with the provisions of Section 21 and as per applicable provisions of the Companies Act, 1956, members of the company in their annual general meeting held on September 30, 2009, accorded their approval to change the name of the Company to''Store One Retail India Limited''. The Company has since received fresh certificate of incorporation consequent upon change of name, from the Registrar of Companies, National Capital Territory of Delhi and Haryana on October 06, 2009. Accordingly, the name of the Company was changed to "Store One Retail India Limited" from "Indiabulls Retail Services Limited".

ii) During the year, the Company has entered into new line of Business of providing Construction related material & services and travel & tour operators along with its ongoing businesses.

iii) The Board of Directors of the Company at its meeting held on April 24, 2013, has declared dividend @ 9% on preference share capital of the company.

iv) The Scheme of Arrangement ("IBWSL Scheme of Arrangement") between erstwhile Ultimate Holding Company, Indiabulls Real Estate Limited ("Demerged Company", "IBREL") and the Holding Company, ("IBWSL", "Resulting Company") and their respective shareholders and creditors under Sections 391 - 394 of the Companies Act, 1956, was sanctioned by the Hon''ble High Court of Delhi at New Delhi on March 31, 2011. Upon coming into effect of the Scheme of Arrangement on March 31, 2011 and with effect from the Appointed Date on April 01, 2010, the Wholesale trading business stand demerged from IBREL and transferred to and vested in IBWSL on a going concern basis. In terms of the Scheme, with effect from the appointed date on April 01, 2010:

a) Certain Assets comprising of Fixed Assets and Loans and Advances in IBREL aggregating to Rs. 4,10,63,96,502 have been transferred to IBWSL, at their book values;

b) The Equity Share Capital of the Resulting Company amounting to Rs. 1,00,00,00,000 was cancelled;

c) The net adjustment for such transfer of assets, liabilities and cancellation and issue of Equity Share Capital amounting to Rs. 5,00,58,26,316 has been shown in the General Reserve Account of the Resulting Company;

d) In terms of the Scheme, all business activities of the IBREL carried out by IBREL in trust for IBWSL, carried out on or after the Appointed Date are deemed to have been carried out by the IBREL on behalf of the IBWSL on a going concern basis;

e) The transfer of proportionate Share warrant has been made as per the net worth ratio between net worth of the IBREL transferred to IBWSL pursuant to Scheme and the net worth of the IBREL immediately before demerger as on appointed date i.e. April 01, 2010. Proportionate liability in respect of Share Warrants representing 25% of the application money amounting to Rs. 9,42,48,700 has also been transferred to the Resulting Company;

f) Pursuant to the Scheme being given effect to, by the Resulting Company, IBWSL has allotted one (1) Equity Share of face value of Rs. 2 each credited as fully paid-up for every eight (8) Equity share of Rs. 2 each held by such shareholders in the IBREL.

In terms of the Scheme, on April 27, 2011, IBWSL has issued and allotted 5,02,85,093 Equity shares of face value of Rs. 2 each aggregating to Rs. 10,05,70,186 to the respective shareholders of IBREL as on the record date i.e. April 25, 2011.

Pursuant to the Scheme, the Authorised Share Capital of the Holding Company has been reorganised to Rs. 1,10,00,00,000 divided into 55,00,00,000 Equity shares of Rs. 2 each.

(2) Basis of Preparation of financial statement

i) Statement of compliance

The financial statements are prepared under the historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and in compliance with the applicable accounting standards as notified under the Companies (Accounting Standards) Rules, 2006, as amended and as per Revised Schedule VI to the Companies Act, 1956. All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956.

ii) Use of estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known or materialized.

(3) Contingent liabilities and Commitments: Contingent liabilities:

a) Bank Guarantees:

i. of Rs. 1,00,000 (Previous Year Rs. 1,00,000) issued in favour of Assessing Authority, Haryana Sales Tax, Gurgaon, Secured by way of pledge of Fixed Deposits for Rs. 1,00,000 (Previous Year Rs. 1,00,000).

ii. of Rs. 42,50,500 (Previous Year Rs. 42,50,500) issued in favour of High Court of Delhi, secured by way of pledge of Fixed Deposits for Rs. 42,50,500 (Previous Year Rs. 42,50,500).

b) Claims (Excluding interest) against the Company not acknowledged as debts: ^1,02,18,890 (Previous Year: Rs. 1,82,70,114).

Commitments:

Estimated amount of Contracts remaining to be executed on capital account (net of advances) ^5,31,05,650 (Previous Year Rs. 2,51,96,947).

As per the best estimate of the management, no provision is required to be made in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, which would be required to settle the obligation.

(4) Employee benefits Gratuity

In accordance with "The Payment of Gratuity Act, 1972", the Company provides for gratuity a defined benefit retirement plan (the "Gratuity Plan") covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment. The amount of payment is based on the respective employee''s last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation and this plan is unfunded. The Company had charged Rs. 11,64,452 (previous year Charge Rs. 8,21,617) during the year ended March 31, 2013 and the amount outstanding as at March 31, 2013 is Rs.20,41,762 (previous year ^ 9,07,800).

Compensated Absences

Eligible employees are entitled to accumulate compensated absences up to prescribed limits in accordance with the Company''s policy and receive cash in lieu thereof. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date. Such measurement is based on actuarial valuation as at balance sheet date carried out by a qualified actuary. The Company had charged Rs.6,80,857 (previous year charge Rs.3,49,765) during the year ended March 31,2013 and the amount outstanding as at March 31,2013 is Rs. 10,22,023 (previous year Rs.4,43,449).

The components of gratuity & compensated absences cost recognized, in accordance with AS-15 (Revised) on "Employee benefits", for the years ended March 31, 2013 and March 31, 2012 are enumerated as below:

(5) Employees Stock Options Schemes(ESOS):

Employees'' Stock Option Schemes of the Holding Company:

During the year ended March 31, 2012, the Board of Directors and Shareholders of the Holding Company! Indiabulls wholesale Services Limited) have given their consent to create, issue, offer and allot, to the eligible employees of the Holding Company and its Subsidiary Companies, stock options not exceeding 50,00,000 in number, representing 50,00,000 Equity shares of face value of Rs. 2 each of the Company, accordingly the Indiabulls Wholesale Services Limited Employee Stock Option Scheme - 2011 ("IBWSL ESOP - 2011") has been formed. As per the scheme Exercise Price will be the market price of the equity shares of the Holding Company, being the latest available closing price, prior to the date of grant or as may be decided by the Board or Compensation Committee. These options vest uniformly over a period of 10 years, commencing one year after the date of grant. The stock option under each of the slabs, are exercisable by the option holder within a period of five years from the relevant vesting date.

The Compensation Committee of the Board of Directors of the Company granted 12,57,000 (Twelve Lac Fifty Seven Thousand only) stock options in its meeting held on February 28, 2012, 6,50,000 (Six Lac Fifty Thousand only) stock options in its meeting held on March 29, 2012, 1,50,000 (One Lakh Fifty Thousand only) stock options in its meeting held on July 10, 2012, 8,50,000 (Eight Lakhs Fifty Thousand only) stock options in its meeting held on September 17, 2012, 1,60,000 (One Lakhs Sixty Thousand only) stock options in its meeting held on held on February 2, 2013 and 1,50,000 (One Lakhs Fifty Thousand only) stock options, in its meeting held on February 22, 2013, in terms of the IBWSL ESOP- 2011.

Employees'' Stock Option Schemes of the Company:

(i) Indiabulls Retail Services Limited Employees'' Stock Options Scheme - 2008

During the year ended March 31, 2009, pursuant to the Resolution passed on May 12, 2008 the Company had established the "Indiabulls Retail Services Limited Employees'' Stock Options Scheme - 2008" under ("IBRSL ESOS 2008"), the Company issued equity settled options to its eligible employees to subscribe upto 10,00,000 stock options. However, this scheme was subsequently superseded by Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009'' ("IBRSL ESOS 2009"), as approved by the share holders by way of postal ballot on February 9, 2009.

(ii) Store One Retail India Limited Employees Stock Option Scheme - 2009

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on June 05,2009, granted, under the "Indiabulls Retail Services Limited Employees Stock Option Scheme- 2009", 15,00,000 (Fifteen lacs) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 30.45 per option, being the latest available closing market price on the National Stock Exchange of India Limited, as on June 04, 2009. The stock options so granted, shall vest in the eligible employees within 10 years beginning from June 06, 2010, the first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

Pursuant to the shareholders'' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from Indiabulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009 to ''Store One Retail India Limited Employees Stock Option Scheme - 2009.

(6) Income Tax Deferred Tax Asset

In compliance with Accounting Standard 22 (AS 22) - "Accounting for Taxes on Income", as notified under the Companies (Accounting Standards) Rules, 2006, as amended the Deferred Tax Assets has not been recognized as there is no virtual certainty supported by convincing evidence of the subsequent realization of such deferred tax assets in future.

(7) Earnings Per Equity Share (EPS):

The basic earnings per equity share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of Employee Stock Option Plan as appropriate.

(8) In the opinion of the Board of Directors, all current assets, loans and advances appearing in the balance sheet as at March 31, 2013 have a value on realization in the ordinary course of the Company''s business at least equal to the amount at which they are stated in the balance sheet after appropriate provision. Certain balances shown under loans and advances, sundry creditors and balances with banks are subject to confirmation/reconciliation. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of such balances, other than as already provided in the financial statements.

(9) In respect of amounts as mentioned under Section 205C of the Companies Act, 1956, there were no dues required to be credited to the Investor Education and Protection Fund as on March 31, 2013.

(10) The company has not entered into any foreign exchange derivative instruments during the year. There are no outstanding foreign currency exposures as at March 31, 2013.

(11) Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

(1) Contingent liabilities and Commitments:

Contingent liabilities:

a) Bank Guarantees:

i. of Rs. 100,000 (Previous Year Rs. 100,000) issued in favour of Assessing Authority- Gurgaon, Secured by way of pledge of Fixed Deposits for Rs. 100,000 (Previous Year Rs. 100,000).

ii. of Rs. 4,250,500 (Previous Year Rs. 4,250,500) issued in favour of High Court of Delhi, secured by way of pledge of Fixed Deposits for Rs. 4,250,500 (Previous Year Rs. 4,250,500).

b) Claims against the Company not acknowledged as debts: Rs.18,270,114 (Previous Year: Rs. 9,709,503).

Commitments:

Estimated amount of Contracts remaining to beexecuted on capital account (net of advances) Rs. 25,196,947(Previous Year Rs. Nil).

As per the best estimate of the management, no provision is required to be made in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, which would be required to settle the obligation.

(2) Employee benefits

Gratuity

In accordance with "The Payment of Gratuity Act, 1972", the Company provides for gratuity a defined benefit retirement plan (the "Gratuity Plan") covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement or termination of employment. The amount of payment is based on the respective employee's last drawn salary and the years of employment with the Company. Liabilities in respect of the Gratuity Plan are determined by an actuarial valuation and this plan is unfunded. The Company had charged Rs. 821,617 (previous year credit Rs. 711,186) during the year ended March 31,2012 and the amount outstanding as at March 31,2012 is Rs. 907,800 (previous year Rs. 86,183).

Compensated Absences

Eligible employees are entitled to accumulate compensated absences up to prescribed limits in accordance with the Company's policy and receive cash in lieu thereof. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date. Such measurement is based on actuarial valuation as at balance sheet date carried out by a qualified actuary. The Company had charged Rs.349,765 (previous year credit Rs.377,447) during the year ended March 31,2012 and the amount outstanding as at March 31,2012 is Rs. 443,449 (previous year Rs.93,684).

3. Employees Stock Options Schemes(ESOS):

Employees' Stock Option Schemes of the Holding Company:

During the year ended March 31, 2012, the Board of Directors and Shareholders of the Holding Company have given their consent to create, issue, offer and allot, to the eligible employees of the Holding Company and its Subsidiary Companies, stock options not exceeding 5,000,000 in number, representing 5,000,000 Equity shares of face value of Rs. 2 each of the Company, accordingly the Indiabulls Wholesale Services Limited Employee Stock Option Scheme - 2011 ("IBWSL ESOP - 2011") has been formed. As per the scheme Exercise Price will be the market price of the equity shares of the Holding Company, being the latest available closing price, prior to the date of grant or as may be decided by the Board or Compensation Committee.These options vest uniformly over a period of 10 years, commencing one year after the date of grant. The stock option under each of the slabs, are exercisable by the option holder within a period of five years from the relevant vesting date

The Compensation Committee of the Board has in its meeting held on February 28,2012, granted 1,257,000 (Twelve Lac Fifty Seven Thousand only) stock options at an exercise price of Rs 8.28 per option in terms of the IBWSL ESOP- 2011. These options shall vest within ten years beginning from March 1,2013 the first vesting date.

The Compensation Committee of the Board has in its meeting held on March 29, 2012, granted 650,000 (Six Lac Fifty Thousand only) stock options at an exercise price of Rs 7.80 per option in terms of the IBWSL ESOP-2011. These options shall vest within ten years beginning from March 30,2013 the first vesting date.

IBWSL Employees'Welfare Trust has been formed on September 08, 2011 with an initial corpus of Rs.50,000, to administer and implement current ungranted options under Employee Stock Option Scheme ("ESOP Schemes") and any further ESOP/Employee Stock Purchase Schemes to all eligible employees of the company.

Employees' Stock Option Schemes of the Company:

(i) Indiabulls Retail Services Limited Employees'Stock Options Scheme - 2008

During the year ended March 31, 2009, pursuant to the the Resolution passed on May 12, 2008 the Company had established the "Indiabulls Retail Services Limited Employees' Stock Options Scheme - 2008" under ("IBRSL ESOS 2008"), the Company issued equity settled options to its eligible employees to subscribe upto 1,000,000 stock options. However, this scheme was subsequently superseded by Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009' ("IBRSL ESOS 2009"), as approved by the share holders by way of postal ballot on February 9,2009.

ii. Store One Retail India Limited Employees Stock Option Scheme - 2009

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on June 05,2009, granted, under the "Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009", 1,500,000 (Fifteen lacs) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 30.45 per option, being the latest available closing market price - on the National Stock Exchange of India Limited, as on June 04,2009. The stock options so granted, shall vest in the eligible employees within 10 years beginning from June 06,2010, the first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

Pursuant to the shareholders'authorization dated September 30,2009 and receipt of fresh certificate of incorporation dated October 6, 2009, the name of the Company has been changed from Indiabulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009 to'Store One Retail India Limited Employees Stock Option Scheme - 2009.

The Company follows the intrinsic value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share based Payments ("Guidance Note") issued by the Institute of Chartered Accountants of India. Since, on the date of grant, the intrinsic value of the options granted was equal to the exercise price, no compensation expense in respect of the options granted was recorded by the Company.

iii. Store One Retail India Limited Employees'Stock Options Scheme - 2009(H)

Members of the Company in their annual general meeting held on September 30,2009 have approved by way of special resolution the "Indiabulls Retail Services Employees Stock Option Scheme - 2009 (II) ("IBRSL ESOS - 2009") covering 3,000,000 (Thirty lacs) equity settled options for eligible employees of the Company, its subsidiaries, its fellow subsidiaries and Holding Company.

Pursuant to the shareholders' authorization dated September 30, 2009 and receipt of fresh certificate of incorporation dated October 6,2009, the name of the Company has been changed from Indiabulls Retail Services Limited to Store One Retail India Limited. Accordingly, the title of the Scheme stands changed from Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009(11) to 'Store One Retail India Limited Employees Stock Option Scheme - 2009(11).

4. Segment Reporting:

Segment information for the Year ended March 31,2012 as per Accounting Standard AS-17, Segment Reporting, as notified by the Companies (Accounting Standards) Rules, 2006, as amended.

b) The Company operates solely in one Geographic segment namely "Within India" and hence no separate information for Geographic segment wise disclosure is required.

c) The group's primary business segments are reflected based on principal business activities carried on by the Company. The Company operates in two reportable business segments i.e. Wholesale Trading and Facility Maintenance Services and other related ancillary services.

Others business segment constitutes equipment hiring business.

d) Segment revenue, results, assets and liabilities include amounts identifiable to each segment and amounts allocated on a reasonable basis.

e) During the current year, the Company has entered into a new line of business. Since this is the first year of operation for the same, corresponding previous year figures have not been disclosed.

5. Earnings Per Equity Share (EPS):

The basic earnings per equity share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date. The number of equity shares and potential diluted equity shares are adjusted for stock split, bonus shares, Convertible Preference Shares, Share Warrants and the potential dilutive effect of

6. Deferred Tax Asset

In compliance with Accounting Standard 22 (AS 22) - "Accounting for Taxes on Income", as notified under the Companies (Accounting Standards) Rules, 2006, as amended the Deferred Tax Assets has not been recognized as there is no virtual certainty supported by convincing evidence of the subsequent realization of such deferred tax assets in future.

7. Value of Import of fixed assets during the year ended March 31,2012 is Rs.22,397,760 (Previous Year Rs. Nil).

8. In the opinion of the Board of Directors, all current assets, loans and advances appearing in the balance sheet as at March 31, 2012 have a value on realization in the ordinary course of the Company's business at least equal to the amount at which they are stated in the balance sheet after appropriate provision. Certain balances shown under loans and advances, sundry creditors and balances with banks are subject to confirmation/reconciliation. In the opinion of the Board of Directors, no provision is required to be made against the recoverability of such balances, other than as already provided in the financial statements.

9. In respect of amounts as mentioned under Section 205C of the Companies Act, 1956, there were no dues required to be credited to the Investor Education and Protection Fund as on March 31,2012.

10. The company has not entered into any foreign exchange derivative instruments during the year. There are no outstanding foreign currency exposures as at March 31,2012.

11. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2009

1. a) Overview

The Company was incorporated as Piramyd Retail Limited on March 18,2005 with an authorized capital of Rs. 210,000,000 divided into 21,000,000 equity shares of Rs.10 each. In April 2008, Indiabulls Wholesale Services Limited (IWSL), a 100% subsidiary of Indiabulls Real Estate Limited completed the acquisition of 63.92% of the outstanding equity share capital of the Company from the then existing promoters in terms of the Share Purchase Agreement dated December 08,2007 and Public Announcement dated December 09,2007 and in accordance with the provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. Pursuant to this, IWSL and Indiabulls Real Estate Limited had made an open offer to acquire up to 20% of the voting capital of the Company at an offer price of Rs 74.73 per share. In the open offer, which concluded on April 10, 2008, IWSL purchased 310 shares from the general public. In accordance with the provisions of Section 21 and other applicable provisions of the Companies Act, 1956, the members of the Company passed a special resolution through Postal Ballot, on May 12, 2009, and accorded their approval to change the name of the Company. The Company has since received fresh certificate of incorporation consequent upon change of name, from the Registrar of Companies, Maharashtra, Mumbai dated May 22, 2008 in respect of the said change. Accordingly, the name of the Company was changed toIndiabulls Retail Services Limited.

b) During the year ended March 31, 2009, the Company has incurred a net loss of Rs. 902,902,497 and as of that date its net worth has been eroded and its current liabilities exceed its total assets by Rs. 1,482,996,945. As part of its restructuring initiatives during the year ended March 31,2009, the Company has closed certain stores as a means to reduce and control costs/operating losses. The Company is also in the process of re-negotiating lease terms for multiple locations with the intent of reducing operating costs. The Company is in the process of re-launching certain stores and opening new stores in the near future, with a new brand identity and is confident that, with the new stores to be launched and due to its restructuring and re-branding initiatives, it will be able to turn profitable and generate positive operating cash flows in future. Having regard to the Companys future business plans and projections and the synergies expected from its restructuring initiatives, the financial statements for the year ended March 31,2009 have been prepared on the basis that the Company is a going concern and that no adjustments are required to the carrying value of assets and liabilities.

2 On February 27, 2009, the Company repaid Rs.67,967,886 in respect of the outstanding balance of cash credit facility from HDFC Bank Limited, which was secured against the hypothecation of current assets, fixed assets and book debts of the Company. The Company is in the process of obtaining necessary documentation from HDFC Bank Limited in respect of satisfaction of the charge on its assets, registered with the Registrar of Companies, Maharashtra, Mumbai. Once such documentation is received from HDFC Bank Limited the Company will complete necessary requirements to vacate the charge in the records of the Registrar of Companies, Maharashtra, Mumbai.

3. Contingent Liabilities

a) Bank guarantees:

(i) Of Rs. 4,250,500 (Previous Year Rs. Nil) issued in favour of The High Court of Delhi in respect of litigation with Jeena & Co Pvt. Ltd., secured by way of pledge of Fixed Deposits for Rs.4,250,500 (Previous Year Rs. Nil)

(ii) OfRs. 100,000 (Previous Year Rs. Nil) issued in favour of HaryanaSales Tax Department, secured by way of pledge of Fixed Deposits for Rs. 100,000 (Previous Year Rs. Nil)

(iii) OfRs. Nil (Previous Year Rs. 1,200,000) issued in favour of Colorplus Fashions Limited, secured by way of pledge of Fixed Deposits for Rs. Nil (Previous Year Rs. 1,200,000)

b) Estimated amount of Contracts remaining to be executed on capital account (net of advances) Rs. 641,270 (Previous Year Rs. 79,605,784).

4. EmployeesStock Option Schemes (ESOS)

I Employees Stock Option Schemes of the Company

i. Piramyd Retail Limited -Stock Option Plan 2005

During the period ended March 31, 2006, the Company had established the " Piramyd Retail Limited Stock Option Plan - 2005". The Company issued equity settled options to its eligible employees to subscribe upto 202,350 stock options at an exercise price of Rs.62 per option. The intrinsic value of the option was Rs.58 per option which was the difference between the issue price of the Initial Public Offering concluded prior to the date of grant of options of Rs. 120 per share and exercise price of Rs.62 per option.

iii. Indiabulls Retail Services Limited Employees Stock Options Scheme - 2008

During the period ended March 31, 2009, pursuant to the the Resolution passed on May 12, 2008 the Company had established the "Indiabulls Retail Services Limited Employees" Stock Options Scheme - 2008". Under ("IBRSLESOS 2008"), the Company issued equity settled options to its eligible employees to subscribe upto 1,000,000 stock options. However, this scheme was subsequently superseded by Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009 ("IBRSL ESOS 2009"), as approved by the share holders by way of postal ballot on February 9, 2009. (Also refer Note 8 i) of Schedule 20.

II Stock Option Scheme of the Holding Company

Indiabulls Wholesale Services Limited

Indiabulls Wholesale Services Limited ("IWSL"), the holding company, announced the Indiabulls Wholesale Services Limited Employee Stock Option Plan 2007 ("IWSL ESOP 2007") for its employees and of its subsidiary companies, existing then or in future, and employees of its holding company Indiabulls Real Estate Limited ("IBREL"). The eligible employees covered under IWSL ESOP 2007 were granted an option to purchase equity shares of IWSL subject to the requirements of vesting. These options vest uniformly over a period of 10 years, with effect from November 01, 2008, whereby 10% of the options vest on each vesting date. A Compensation Committee constituted by the Board of Directors of IWSL administered the IWSL ESOP 2007.

III Stock Option Schemes of the Ultimate Holding Company ("IBREL")

i. Indiabulls Real Estate Limited Employees Stock Options Scheme - 2006

During the period ended March 31, 2007, 1BREL established the Indiabulls Real Estate Limited Employees Stock Options Scheme ("IBREL ESOS-i" or "Plan-I"). Under the Plan-1, IBREL issued 9,000,000 equity, settled options to eligible employees which gave them a-right to subscribe upto 9,000,000 stock options representing an equal number of equity shares of face value of Rs. 2 each of IBREL at an exercise price of Rs. 60 per option, subject to the requirements of vesting. These options vest uniformly over a period of 10 years, commencing one year after from the date of grant. A Compensation Committee constituted by the Board of Directors of IBREL administers the Plan-1.

IBREL follows the Intrinsic Value method of accounting as prescribed under the Guidance Note on "Accounting for Employees Share based Payments" issued by the Institute of Chartered Accountants of India. No Deferred Employee Stock Compensation Cost was initially recorded on the grant of options as the Intrinsic Value calculated by an independent valuer was lower than the exercise price. Had IBREL followed the Fair value method, there would not had been any impact on the Profit After Tax of IBREL and on the Basic and Diluted Earnings per Share of IBREL as the fair value on the date of grant calculated by an independent valuer following binomial option pricing model was less than the exercise price.

There is no impact on the Companys net profit after taxes and basic and diluted earnings per share, as a result of the above.

ii. Indiabulls Real Estate Limited Employees Stock Options Scheme - 2008

During the year, IBREL established the Indiabulls Real Estate Limited Employees Stock Options Scheme - 2008 ("IBREL ESOS 2008"). Under IBREL ESOS 2008, IBREL issued equity settled options to its eligible employees and of its subsidiary companies to subscribe upto 1,500,000 stock options representing an equal number of equity shares of face value of Rs. 2 each in IBREL, at an exercise price of Rs. 495.70 per option, being the closing market price on the National Stock Exchange of India Limited, as at April 21,2008.The stock options so granted, were to vest in the eligible employees in equal slabs of 10% per year, over a period of 10 years beginning from April 23, 2009, the first vesting date. The options granted under each of the slabs, were to be exercised by the grantees within a period of ninety days from the relevant vesting date.

During the year ended March 31,2009, all eligible employees voluntarily surrendered the options granted to them under IBREL ESOS 2008 and the Compensation Committee decided not to re-grant these options. Pursuant to the shareholders approval by way of Postal Ballot on December 12, 2008, IBREL cancelled and withdrew IBREL ESOS 2008.

iii. Indiabulls Real Estate Limited Employees Stock Options Scheme 2008 (ID:

During the year ended March 31,2009, IBREL established the Indiabulls Real Estate Limited Employees Stock Options Scheme - 2008 (II) ("IBREL ESOS-II" or "Plan-II"). Under Plan II, IBREL issued equity settled options to its eligible employees and of its subsidiary companies to subscribe upto 2,000,000 stock options representing an equal number of equity shares of face value of Rs. 2 each in IBREL, at an exercise price of Rs. 110.50 per option, being the closing market price on the National Stock Exchange of India Limited, as at January 29,2009.

The stock options so granted, shall vest in the eligible employees within 10 years beginning from January 31, 2010, the first vesting date. The stock options granted under each of the slabs, are exercisable by the option holders within a period of five years from the relevant vesting date.

IBREL follows the Intrinsic Value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share based Payments ("Guidance Note"), issued by the Institute of Chartered Accountants of India. Since, on the date of grant, the intrinsic value of the options granted was equal to the exercise price, no deferred employee stock compensation cost has been recorded in the financial statements. The fair value of the options under Plan II using the Black-Scholes model, based on the following parameters, is Rs.62.79 per. option, as certified by an independent firm of chartered accountants.

5. Significant Events after the Balance Sheet date:

i) Indiabulls Retail Services Limited Employees Stock Options Scheme - 2009

The Compensation Committee, constituted by the Board of Directors of the Company, at its meeting held on June 05, 2009, granted, under the "Indiabulls Retail Services Limited Employees Stock Option Scheme - 2009", 1,500,000 (Fifteen lacs) stock options representing an equal number of Equity shares of face value Rs. 10 each in the Company, to the eligible employees, at an exercise price of Rs. 30.45 per option, being the latest available closing market price on the National Stock Exchange of India Limited, as on June 04, 2009. The stock options so granted, shall vest in the eligible employees within 10 years beginning from June 06,2010, the first vesting date. The stock options granted under each of the slabs, can be exercised by the grantees within a period of five years from the relevant vesting date.

The Company follows the intrinsic value method of accounting as prescribed in the Guidance Note on Accounting for Employees Share based Payments ("Guidance Note") issued by the Institute of Chartered Accountants of India. Since, on the date of grant, the intrinsic value of the options granted was equal to the exercise price, no compensation expense in respect of the options granted was recorded by the Company.

6. Earnings per Share

The Basic Earnings Per share is computed by dividing the net loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per Share is computed using the weighted average number of equity shares and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value.

Dilutive potential equity shares are deemed converted as of the beginning of the year, unless they have been issued at a later date.

7. Deferred Tax Asset

In compliance with Accounting Standard 22 (AS 22) - "Accounting for Taxes on Income", as notified under the Companies (Accounting Standards) Rules, 2006, as amended, deferred tax assets of Rs. 8,578,269 recoginised in the previous year due to temporary differences arising on account of Provision for Gratuity and Compensated Absences and Preliminary Expenses have been reversed during the year ended March 31, 2009, as there is no virtual certainity supported by convincing evidence of the subsequent realisation of such deferred tax assets in future. Accordingly, the Company has recorded deferred tax credit of Rs. 8,578,269 to the Profit and Loss Account for the year ended March 31,2009.

8. Impairment

In accordance with the provisions of Accounting Standard 28 (AS 28) "Impairment of Assets" as notified under the Companies (Accounting Standards) Rules, 2006, as amended, the Company, during the year ended March 31,2009, has recorded impairment loss of Rs.6,106,358 (Previous year Nil) (included under the head Depreciation in the Profit and Loss account), relating to various items of Tangible and Intangible Assets, which have been brought down to their recoverable values upon evaluation of future economic benefits from their use.

9. Employee Benefits

Contributions are made to Provident Fund and Family Pension Fund, Employees State Insurance Corporation and other statutory funds which covers all eligible employees. Both the employees and the Company make predetermined contributions to the Provident Fund and Employees State Insurance Corporation. The contributions are normally based on a certain proportion of the employees salary. The Company has charged Rs. 5,885,751 (Previous Year Rs. 15,940,584) as employer conrributionforthe above mentioned funds, to the Profit and Loss Account.

(b) Other related parties:

Nature of relationship Name of Party

Key Management Sameer Gehlaut, Director (Till August 22, 2008) Personnel Rajiv Rattan, Director Anil Lepps, Whole- Time Director (From January 06,2009) Udesh Jha, Director (Till June 30, 2009) Mehul CC Johnson, Director (From March 18, 2009) Ikroop Singh Kehal, Director (Till January 06, 2009)

10. No Disclosures are required under Clause 32 of the Listing Agreements with Stock Exchanges as the company has no subsidiary companies.

11. Segment Reporting

The Company is engaged in the retail business in India. Considering the nature of the Companys business and operations and based on the information available with the management, there is/are no reportable segments (business and/or geographical) in accordance with the requirements of Accounting Standard 17 (AS 17) - "Segment Reporting". Hence, no further disclosures are required in respect of reportable segments, under AS. 17, other than those already provided in the financial statements.

12. As per the best estimate of the Management, no provision is required to be made as per Accounting Standard 29 (AS 29) - "Provisions, Contingent Liabilities and Contingent Assets", as notified under the Companies (Accounting Standard Rules), 2006, as amended, in respect of any present obligation as a result of a past event that could lead to a probable outflow of resources, which would be required to settle the obligation.

13. In the opinion of the Board of Directors, all current assets, loans and advances appearing in the balance sheet as at March 31, 2009 have a value on realization in the ordinary course of the Companys business at least equal to the amount at which they are stated in the balance sheet. Certain balances shown under loans and advances, sundry creditors and balances with banks are subject to confirmation/reconciliation. In the opinion of the Board of Directors, no provision is • required to be made against the recoverability of such balances, other than as already provided in the financial statements.

14. In respect of amounts mentioned under Section 205 C of the Companies Act, 1956, there were no dues required to be credited to the Investor Education and Protection Fund as on March 31,2009.

15. Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006

(i) An amount of Rs. 4,836,762 (Previous Year 12,815,776) was due and outstanding to suppliers as at the end of the accounting year.

(ii) No interest was paid during the year in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, and payments of Rs.172,375,07 were made to suppliers beyond the appointed day during the accounting year.

(iii) Nointerestisdueandpayableattheendoftheyeartosuchsuppliers. (ReferNote(vi)below)

(iv) No amount of interest was accrued and unpaid at the end of the accounting year. (Refer Note (vi) below)

(v) No amount of further interest was remaining due and payable in the succeeding years.

(vi) The above information and that given in Schedule 11 - "Current Liabilities " regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors. Certain balances shown under Current Liabilities are subject to confirmation / reconciliation. Pending such confirmation / reconciliation, the Company has not accrued interest of Rs. 4,171,755 that may be payable under the Micro, Small and Medium Enterprises Development Act, 2006.

16. No borrowing cost has been capitalized during the year.

17. The company has not entered into any foreign exchange derivative instruments during the year. There are no outstanding foreign currency exposures as at March 31,2009.

18. Previous years figures have been regrouped and / or re-arranged wherever necessary to confirm to current years groupings and classifications.