Notes to Accounts of Imagicaaworld Entertainment Ltd.

Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligation that is
reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. Provisions are determined based on the best
estimate required to settle the obligation at the balance sheet date.

A contingent liability is disclosed unless the possibility of an outflow of resources embodying economics benefits is
remote. Contingent assets are not recognised in standalone financial statements since this may result in the recognition
of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset
is not a contingent asset and its recognition is appropriate.

A contingent asset is not recognized in the financial statements but is disclosed, where an inflow of economic benefits is
probable.

2.13 Foreign Currency Transactions:

Functional currency

The functional currency of the company is Indian Rupees (''INR''/''?''/''Rs''). These standalone financial statements are
presented in Indian Rupees and the all values are rounded to the nearest Lakh, except otherwise indicated.

Transactions and translations

Foreign-currency denominated monetary assets and liabilities are translated into the relevant functional currency at
exchange rates in effect at the balance sheet date. Gains and losses, if any, at the year-end in respect of monetary
assets and monetary liabilities not covered by the forward contracts are transferred to Profit & Loss Account except for
Long Term Foreign Currency Monetary Items. Transaction gains or losses realized upon settlement of foreign currency
transactions are included in determining net profit for the period in which the transaction is settled.

Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are
translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and
nonmonetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange
rate prevalent at the date of the transaction.

Revenue, expense and cash-flow items denominated in foreign currencies are translated into the relevant functional
currencies using the exchange rate in effect on the date of the transaction.

2.14 Borrowing Cost:

Borrowing costs that are attributable to acquisition and construction of qualifying assets are capitalized till the asset is
ready for its intended use, based on borrowings incurred specifically for financing the asset or the weighted average
rate of all other borrowings, if no specific borrowings have been incurred for the asset. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use. The Company has not capitalized any
borrowing costs during the year.

All other borrowing costs are recognized as expenditure in the year in which they are incurred.

2.15 Earnings per Equity Share:

Basic earnings per share

Basic earnings per share are calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements
in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion
of all dilutive potential equity shares.

The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued
at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed
converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented
for any share splits and bonus shares issues including for changes effected.

2.16 Employee Benefit:

All employee benefits payable wholly within twelve months rendering services are classified as short term employee
benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the
expected cost of bonus, ex-gratia are recognised during the period in which the employee renders related service.

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered
the service entitling them to the contribution.

The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method with
actuarial valuations being carried out at each balance sheet date, which recognises each period of service as giving rise
to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in
net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit
to retained earnings through other comprehensive income in the period in which they occur. Remeasurements are not
reclassified to the statement of profit and loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.

The Company recognises the following changes in the net defined benefit obligation under employee benefit expenses in
the statement of profit and loss.

• Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements,

• Net interest expense or income.

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the
employee renders the related services are recognised as a liability at the present value of the defined benefit obligation
at the balance sheet date.

Termination benefits

Termination benefits are recognised as an expense in the period in which they are incurred.

Employee Stock Option Scheme (ESOS)

The Company recognizes compensation expense relating to share-based payments in net profit based on estimated fair
values of the stock options on the grant date. The estimated fair value of stock options is recognized as an expense in the
Statement of Profit and Loss on a straight-line basis over the requisite service period for each separately vesting portion
of the stock options as if the stock option was in substance multiple stock options with a corresponding increase to share
options outstanding account.

In case, the fair value of the stock options granted at the grant date cannot be estimated reliably, the options are measured
at their intrinsic value, initially at the date the entity obtains the service and subsequently at the end of each reporting
period and at the date of final settlement, with any change in intrinsic value recognised in profit or loss. For a grant of
share options, the share-based payment arrangement is finally settled when the options are exercised, are forfeited
(upon cessation of employment) or lapse (at the end of the option''s life).

2.17 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income
or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.

2.18 Cash and Cash Equivalents:

Cash and cash equivalents comprise cash on hand and demand deposits with banks which are short-term, highly liquid
investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes
in value.

2.19 Lease:

Operating lease

The company has applied Ind AS 116 using the modified retrospective approach and therefore the comparative
information has not been restated. The adoption of Ind AS 116 as on April 1, 2019 did not require any adjustments to the
assets and liabilities as on that date.

As a lessee

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease
incentives received. Certain lease arrangements include the option to extend or terminate the lease before the end of
the lease term. The right-of-use assets and lease liabilities include these options when it is reasonably certain that the
option will be exercised.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the
end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of
property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and
adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Company''s
incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprises of fixed payments, including in-substance

fixed payments, amounts expected to be payable under a residual value guarantee and the exercise price under a
purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the
Company is reasonably certain to exercise an extension option.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is
a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s
estimate of the amount expected to be payable under a residual value guarantee, or if Company changes its assessment
of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right of use assets and lease liabilities for short term leases that have a
lease term of less than or equal to 12 months with no purchase option and assets with low value leases. The Company
recognises the lease payments associated with these leases as an expense in statement of profit and loss over the lease
term.The related cash flows are classified as operating activities.

As a lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over
the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for
the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their
nature.

2.20 Exceptional Items:

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of
the Company is such that its disclosure improves the understanding of the performance of the Company, such income
or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the standalone
financial statements.

2.21 Current and Non-Current Classification:

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is current when it is:

• Expected to be realised or intended to sold or consumed in normal operating cycle,

• Held primarily for the purpose of trading,

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle,

• It is held primarily for the purpose of trading,

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

Deferred tax assets/liabilities are classified as non-current.

All other liabilities are classified as non-current.

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Mar 31, 2018

1) CORPORATE INFORMATION:

Adlabs Entertainment Limited (the Company) is a public limited company incorporated and domiciled in India whose shares are publicly traded. The registered office is located at 30/31, Sangdewadi, Off Mumbai- Pune Express Highway, Khopoli Pali Road ,Khalapur, Pin- 410203.

The Company is engaged in the business of development and operations of theme based entertainment destinations in India, including theme parks, water parks, snow park and associated activities including retail merchandising and food and beverages. The flagship project of the company is located at Khalapur, on Mumbai Pune Expressway and is branded ''''Imagica - Theme Park" for the theme park component, "Imagica - Water Park" for the water park component and "Imagica - Snow Park" for the snow park component. During the F.Y 2015 2016 the company has launched Hotel at the same location by the name " Novotel Imagica" with 116 room out of 287 rooms in the first phase.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 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 receive 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.

Estimated amount remaining to be executed on capital account and not provided for is Rs. 428.39 Lakhs as on 31st March, 2018.

The timing differences result in a net deferred asset, relating mainly to unabsorbed depreciation and carried forward losses under the Income Tax Act, 1961.

The management of the company expects following business changes

- 171 hotels rooms (balance 60% of Total rooms) shall be operational in FY 2018-19 and will result in higher revenues in the coming years and ahead.

- The aggressive cost reduction efforts by the Company have resulted in lower fixed costs compared to previous year.

- The Company has chalked out a comprehensive plan to ramp up footfalls for FY 2018-19 onwards, which is expected to result in a revenue growth.

NOTE 2: DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS PER MSMED ACT, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) which came into force from 2nd October, 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises (MSME). On the basis of the information and records available with the Company, the following disclosures are made for the amounts due to the Micro and Small enterprises.

NOTE 3: LEASE

(a) Where the Company is a Lessee:

The Company has taken certain assets like Land, Office premises, furniture and fixtures and apartments on lease. They are on rental lease term which range between 10 months to 5 years. The lease rentals expense during the year amount to Rs. 140.74 Lakhs.

The above lease payments are exclusive of service tax / GST.

(b) Where the company is a Lessor:

The Company has given on lease three premises / place for period of 5 years to 15 years. The lease rentals income during the reporting year amount to Rs. 13.66 Lakhs.

NOTE 4: POST RETIREMENT BENEFIT PLANS

Defined Benefits Plan:

Gratuity:

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. The gratuity plan is funded through an ''Approved Trust''. The Trust has taken a Policy from the HDFC Life Insurance and the management / investment of the fund is undertaken by the insurer.

The Company Contributes all ascertained liabilities towards gratuity to the " Adlabs Entertainment Limited Employee''s Gratuity Trust " Trustee Administer contributions made to the trust as of 31st March, 2018 and 31st March, 2017, the plan assets have been primarily invested in insurer -managed funds.

As per Actuarial Valuation as on 31st March, 2018 and 31st March, 2017 and recognised in the financial statements in respect of Employee Defined Benefit Schemes:

Note

1. Figures in the bracket represent previous year figures

2. The Company has paid the Consultancy fees to Ms. Aarti Shetty Rs. 35.18 Lakhs (P.Y. Rs. 60.32 Lakhs), and Ms. Pooja Deora Rs. 11.58 Lakhs (P.Y. Rs. 60.33 Lakhs).

3. The Company has paid the Remuneration to Mr. Kapil Bagla Rs. 91.08 Lakhs (P.Y. Rs. 134.32 Lakhs), Mr Harjeet Chhabra Rs. Nil (P.Y. Rs. 52.99 Lakhs), Mr Ashutosh Kale Rs. 52.57 Lakhs (P.Y. Rs. 36.53 Lakhs), Mr Rakesh Khurmi Rs. Nil (P.Y. Rs. 35.74 Lakhs), Mr. Dhimant Bakshi Rs. 71.36 Lakhs (P.Y. Rs. 33.15 Lakhs )and Mr. Mayuresh Kore Rs. 53.06 Lakhs (P.Y. Rs. 26.12 Lakhs)

4. The Company has paid Rent for use of office premises located at 9th floor, Lotus Business Park, New Link Road, Andheri-West, Mumbai-400053. to Mr.Manmohan Shetty amounted to Rs. 105.53 Lakhs (P.Y. Rs. 116.29 Lakhs) and rent paid towards use of furniture and fixtures to Walkwater Properties Pvt. Ltd. amounted to Rs. 10.53 Lakhs (P.Y. Rs. 21.80 Lakhs).

5. The Company has paid royalty of Rs. 1.18 Lakhs (P.Y. Rs. 1.15 Lakhs) to Mr. Manmohan Shetty.

6. The Company has paid Interest of Rs. 515.54 Lakhs (P.Y. Rs. 878.68 Lakhs) on Loan taken from Mr. Manmohan Shetty .

7. The Company during the year made 100% investment in M/s Blue Haven Entertainment Pvt. Ltd. with total consideration of Rs. 1.00 Lakh.

8. The leasehold Assets purchased from Walkwater Properties Pvt. Ltd for the total Consideration of Rs. 54.00 Lakhs , and adjusted against Security Deposit.

NOTE 5: FAIR VALUE MEASUREMENT

Financial Instrument by category and hierarchy

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 following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for Non-Current borrowings, loans and security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

NOTE 6: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Management Board.

Market Risk is the risk of loss of future earning, fair values or future cash flow 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, equity prices and other market changes that affect market risk sensitive instruments. Market Risk is attributable to all market risk sensitive financial instruments including investment and deposits , foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through its finance department, which evaluate and exercises independent control over the entire process of market risk management. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest Rate Risk:

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Foreign Currency Risk:

The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Liquidity Risk:

Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity through rolling forecasts on the basis of expected cash flows.

Credit Risk:

Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking in to account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limit are set accordingly.

NOTE 7: CAPITAL RISK MANAGEMENT

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

NOTE 8: SEGMENTAL REPORTING

DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 108 OPERATING SEGMENTS

Operating Segments:

Tickets : Theme Park, Water Park and Snow Park

Food and Beverage : Park Restaurant and Hotel Restaurant

Merchandise : Park Merchandise and Hotel Merchandise

Rooms : Hotel Accommodation

Other Operations : Parking, Lockers, Sponsorship, SPA, Revenue Sharing agreements

& Lease Rentals

Identifications of Segments :

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure & income. Segment assets and liabilities:

Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, Inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.

NOTE 9:

The Term Loan facility availed by the Company is secured by pari passu first charge on movable and immovable fixed assets of the Company including mortgage of 298 acres of land (137 acres of land held by Walkwater Properties Pvt. Ltd., wholly owned subsidiary of the Company) to consortium lead by Union Bank of India in favour of IDBI Trusteeship Services Ltd.

The said loan is also secured by first pari passu charge on Current assets of the Company.

Term Loan availed from Banks will be repaid over period of 5 to 10 years in unequal monthly installments starting from April 2017.

Term Loan availed from Financial Institutions will be repaid over period of 10 years in unequal monthly installments starting from April 2015.

Interest rate on term loan taken from Banks and Financial institutions varies from one year MCLR plus 2.25 to 2.50.

NOTE 10:

The Company equity shares are in dematerialized form with the Central Depository Services (India) Limited (CDSL) and with National Securities Depository Limited (NSDL) having ISIN No. INE172N01012.

NOTE 11:

The Company has entered into settlement agreement with I.E Park, whereby the Company has settled dispute for EURO 4,50,000 being EURO 1,50,000 as compensation and EURO 3,00,000 in the form of discount on future purchase of rides/equipment.

The Compensation received (net of expenses incurred) is grouped under the head Other Income.

NOTE 12:

With a view to reduce debt, the Company has decided to off load its non core assets as under:

a) The Company has entered into a term sheet with Shaan Agro and Realty Private Limited (SARPL) for sale of 65 acres Surplus land and 100% investment in wholly owned subsidiary M/s Walkwater Properties Private Limited (WPPL) for '' 15,000 Lakhs. However, the closure of the said transaction depends upon the No Objection Certificate from Lenders. Therefore, the Company has not yet classified the Land and investment in subsidiary as "held for sale" in terms of para 6 of Ind AS 105 as "Non Current Assets held for sale and discontinued operations"

b) Further, the company has entered into a term sheet with Bright Star Investments Private Limited for sale of its Hotel Segment. However, the closure of the said transaction depends upon the No Objection Certificate from Lenders and consent to operate for of 171 rooms from Maharashtra Pollution Control Board. Consequently, the asset along with liabilities, revenue and expenses related thereto have not been classified as assets "held for sale" in terms of para 6 of Ind AS 105 as "Non Current Assets held for sale and discontinued operations"

Upon effective completion of the said transaction, the Company anticipates a positive impact on the overall financial position.

NOTE 13:

The Company has entered into a Share cum Warrant Subscription Agreement dated 19th June, 2017 with BENNETT COLEMAN AND COMPANY LIMITED ( BCCL ) to subscribe to,

- 12,48,684 equity shares for Rs. 95/- per share for an aggregate consideration of Rs.1,186.25 Lakhs.

- 5 ( Five ) Warrants for Rs.2,37,25,000/- per Warrant.

On 20th June, 2017, Company has allotted 12,48,684 equity shares at Rs.95/- per share (Premium '' 85/- per share) and 5 ( Five ) Warrants for Rs.2,37,25,000/- per Warrant (Premium Rs.2,37,24,990/- per warrant).

Utilisation of funds received through preferential issue of Equity Shares and Warrants in the following table:

NOTE 14:

On 15th December, 2017, Company has allotted 69,15,629 equity shares of FV Rs.10 each at a price of Rs.72.30/- per share (Premium Rs.62.30/- per share) to Shaan Agro and Realty India Private limited for an aggregate consideration of Rs.5,000.00 Lakhs

NOTE 15:

Thrill Park Limited has filed a suit bearing no. 270/2013 against Dr. Bhakti Kumar Dave and 77 other defendants (land owners) in the Court of Civil Judge, Senior Division, Panvel for specific performance of contract. Thrill Park Limited had entered into a letter of commitment and memorandum of understanding (as amended from time to time) with Dr. Bhakti Kumar Dave whereby Dr. Bhakti Kumar Dave agreed to buy certain parcels of land on behalf of Thrill Park Limited from the other defendants. However, Dr. Bhakti Kumar Dave did not fulfill his obligations under the letter of commitment and the memorandum of understanding. Therefore, Thrill Park Limited filed a suit for specific performance.

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Mar 31, 2017

NOTE 1: CAPITAL COMMITMENT

Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs, 714.84 Lakhs as on 31st March, 2017.

The timing differences result in a net deferred asset, relating mainly to unabsorbed depreciation and carried forward losses under the Income Tax Act, 1961.

The management of the company expects following business changes

- A substantial decrease in interest rates from consortium lenders from the present 12.5% to 11.00%, will result in lower interest payout. The majority of lenders have already approved of this ROI reduction.

- 171 hotels rooms (balance 60% of Total rooms) shall be operational in FY 18 and will result in higher revenues in the coming years and ahead.

- The aggressive cost reduction efforts by the Company have resulted in lower fixed costs compared to previous year.

- The Company has chalked out a comprehensive plan to ramp up footfalls for FY 18 onwards, which is expected to result in a revenue growth.

Note

1. Figures in the Bracket represent Previous Year (P.Y.)

2. The Company has subscribed Equity Share in the Previous Year of Walkwater Properties Pvt. Ltd. Rs, NIL (P.Y. Rs, 10,575.66 Lakhs).

3. The Company has paid the Consultancy fees to Ms. Aarti Shetty Rs, 60.32 Lakhs (P.Y.? 68.40 Lakhs), and Mrs. Pooja Deora Rs, 60.33 Lakhs (P.Y. Rs, 68.40 Lakhs).

4. The Company has paid the Remuneration to Mr. Kapil Bagla Rs, 134.32 Lakhs (P.Y. Rs, 134.30 Lakhs), Mr Harjeet Chhabra Rs, 52.99 Lakhs (P.Y. Rs, 106.10 Lakhs), Mr Ashutosh Kale Rs, 36.53 Lakhs, Mr Rakesh Khurmi Rs, 35.74 Lakhs (P.Y. Rs, 75.60 Lakhs), Mr. Dhimant Bakshi Rs, 33.15 Lakhs and Mr. Mayuresh Kore Rs, 26.12 Lakhs.

5. The Company has paid Rent for use of office premises located at 9th floor, Lotus Business Park, New Link Road, Andheri-West, Mumbai-400053. to Mr. Manmohan Shetty amounted to Rs, 116.29 Lakhs (P.Y. Rs, 60.08 Lakhs) and rent paid towards use of furniture and fixtures to M/s Walkwater Properties Pvt. Ltd. amounted to Rs, 21.80 Lakhs (P.Y. Rs, 20.60 Lakhs).

6. The Company has paid royalty of Rs, 1.15 Lakhs (P.Y. Rs, 1.14 Lakhs) to Mr. Manmohan Shetty.

7. The Company has paid Interest of Rs, 878.68 Lakhs on Loan taken from Mr. Manmohan Shetty .

NOTE 2: FAIR VALUE MEASUREMENT

Financial Instrument by category and hierarchy

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 following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for loans, security deposits and investment in preference shares were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carriying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

NOTE 3 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Management Board.

Market Risk is the risk of loss of future earning, fair values or future cash flow 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 rate, equity prices and other market changes that effect market risk sensitive instruments. Market Risk is attributable to all market risk sensitive financial instruments including investment and deposits , foreign currency receivables, payables and loans and borrowings.

The Company manage market risk through its treasury department, which evaluate and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Foreign Currency Risk

The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Liquidity Risk

Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity through rolling forecasts on the basis of expected cash flows.

Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking in to account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limit are set accordingly.

The company considers the possibility of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

NOTE 4: CAPITAL RISK MANAGEMENT

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders.

The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

NOTE 5: FIRST TIME ADOPTION OF IND AS

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

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2016, with a transition date of 1st April, 2015. Ind AS 101-First-time Adoption of Indian Accounting Standards requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31st March, 2017 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).

Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Optional Exemptions availed

(a) Deemed Cost

The Company has opted paragraph D7 AA and accordingly considered the carrying value of property, plant and equipments and Intangible assets as deemed cost as at the transition date.

(b) Investments in subsidiaries

The Company has opted para D14 and D15 and accordingly considered the Previous GAAP carrying amount of Investments as deemed cost as at the transition date.

(c) The Company has opted for exemption given under para D13AA of Appendix D to Ind AS 101 - First time adoption of Indian Accounting Standards. In accordance with this exemption opted, the Group has continued the policy of adding to/ deleting from the cost of Property, Plant and Equipment, all foreign exchange fluctuations arising on translating of Long Term Foreign Currency Monetary Item utilized for acquiring the said Property, Plant and Equipment.

B. Applicable Mandatory Exceptions

(a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at 1 April, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

Impairment of financial assets based on expected credit loss model.

(b) Classification and measurement of financial assets

As required under Ind AS 101 the company has assessed the classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

I. Reconciliation of Balance sheet as at 1st April, 2015 (Transition Date).

II. A. Reconciliation of Balance sheet as at 31st March, 2016.

B. Reconciliation of Total Comprehensive Income for the year ended 31st March, 2016.

III. Reconciliation of Equity as at 1st April, 2015 and as at 31st March, 2016.

Explanation for reconciliation of Standalone Statement of Profit and Loss & Statement of Equity as previously reported under IGAAP to Ind-AS

6 The Loan taken from Promoter was interest free for the 1st quarter of FY 2015-16 and thereafter interest was charged by the promoter. The loan is measured at amortized cost using Effective Interest Rate (EIR) method as per Ind As 109 - Financial Instruments. Therefore, interest cost as per EIR method for the interest free period i.e. Apr 2015 to Jun 2015 amounting to '' 135.00 Lakhs has been charged to the statement of profit and loss and corresponding credit is given to other equity by considering it as capital contribution by the promoter.

7 In accordance with Ind As 109 - Financial Instruments, the loan processing fees of Rs, 101.92 Lakhs which is already charged to the statement of profit and loss under IGAAP is reversed and netted of with the respective loans under Ind -As as per the amortized cost method.

8 In accordance with Ind As 109 - Financial Instruments, all term loans (net of loan processing fees) are carried at amortized cost and the interest cost is charged to the statement of profit and loss as per Effective interest rate (EIR) method.

9 As per Ind-AS 19 Employee Benefits, the changes on account of re-measurements of employee''s defined benefit plans is charged to other comprehensive income and is reversed from the statement of profit and loss as recognized earlier under IGAAP.

10 Investment in Mutual Fund units is measured at Fair value through Profit & loss (FVTPL) under Ind-As and revaluation adjustments are charged to the statement of profit and loss prepared under IGAAP.

11 The Company has given interest free security deposits for properties taken on lease from third parties. These security deposits are measured at amortized cost under Ind-As 109 - Financial Instruments. The interest income on security deposit is recognized in the statement of profit and loss as per the EIR method and the pre-paid rent expense is recognized in the statement of profit and loss under straight line method.

12 In accordance with Ind-As 109 - Financial Instruments, the company has provided provision for doubtful debts using expected credit loss method.

13 As per Ind-AS 38 - Intangible Assets, the expenses incurred, before the intangible asset first meets the recognition criteria in paragraphs 21, 22 and 57 of Ind AS 38, cannot be capitalized to intangible assets. Further, the expenses on research shall be recognized as an expense when it is incurred and cannot be shown under the head Intangibles under development. Therefore, the expenditure recognized as Intangible Asset under IGAAP is reversed since it does not meet the criterion specified under Ind AS 38.

14 Under Indian GAAP, discount was recognized as part of other expenses which has been adjusted against the revenue under Ind AS during the year ended 31st March, 2016.

15 The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2016 as compared with the previous GAAP.

NOTE 16: OPERATING SEGMENTS

DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 108 OPERATING SEGMENTS Operating Segments:

Ticket : Theme Park, Water Park and Snow Park Tickets

Food and Beverage : Park Restaurant and Hotel Restaurant

Merchandise : Park Merchandise and Hotel Merchandise

Rooms : Hotel Accommodation

Other Operations : Parking, Lockers, Sponsorship, SPA, Revenue Sharing agreements & Lease Rentals

Identifications of Segments :

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as unallowable expenditure and income.

NOTE 17:

The Current assets, Loans & Advances (including capital advances) have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the balance sheet. Current assets, Loans & Advances (including capital advances) are subject to Confirmation and Reconciliation. Other known liabilities are adequate and not in excess of what are required.

NOTE 18 :

The Term Loan facility availed by the Company is secured by pari passu first charge on movable and immovable fixed assets of the Company & Subsidiary including mortgage of 298 acres of land to consortium lead by Union Bank of India in favour of IDBI Trusteeship Services Ltd.

The said loan is also secured by first pari passu charge on Current assets of the Company.

The corporate loan facility availed by the Company during the year is secured by first change on 25 acres of land and second charge on Fixed Assets.

Term Loan availed from Banks will be repaid over period of 5 to 10 years in unequal monthly installments starting from April 2017.

Term Loan availed from Financial Institutions will be repaid over period of 10 years in unequal monthly installments starting from April 2015.

Interest rate on term loan taken from Banks and Financial institutions varies from base rate plus 2.60 to 3.10.

Interest rate on Loan taken in form of Buyers Credit varies from 0.48 to 3.00.

NOTE 19:

The Company equity shares are in dematerialized form with the Central Depository Services (India) Limited (CDSL) and with National Securities Depository Limited (NSDL) having ISIN No. INE172N01012.

For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.

NOTE 20:

The Company has executed an agreement to sale on 7th November, 2014 to sell 32.58 acres of land for a total consideration of '' 2,737.10 Lakhs to its 100% subsidiary Walkwater Properties Pvt. Ltd., subject to receipt of approval from the Directorate of Industries / Government of Maharashtra ("DIC") and a no objection (NOCs) from the lenders.

NOTE 21:

The company has suspended operation of Bandit of Robinhood ride on account of malfunctioning and it has filed with the vendor for damages including compensation for loss of business. The company has separately disclosed it as retired asset under fixed asset schedule and is carried at lower of Net Book Value or Net Realizable value.

NOTE 51:

Thrill Park Limited ( the Holding Company ) has filed a suit bearing no. 270/2013 against Dr. Bhakti Kumar Dave and 77 other defendants (land owners) in the Court of Civil Judge, Senior Division, Panvel for specific performance of contract. Thrill Park Limited had entered into a letter of commitment and memorandum of understanding (as amended from time to time) with Dr. Bhakti Kumar Dave whereby Dr. Bhakti Kumar Dave agreed to buy certain parcels of land on behalf of Thrill Park Limited from the other defendants. However, Dr. Bhakti Kumar Dave did not fulfil his obligations under the letter of commitment and the memorandum of understanding. Therefore, Thrill Park Limited filed this suit for specific performance. Summons have been issued to all defendants, the notice of lis pendency has been duly registered, and the case is pending before the court.

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Mar 31, 2016

1) Related party disclosures (as identified by the management).

a) Related Party Relationship

i) Holding Company

- Thrill Park Ltd.

ii) Subsidiary Company

- Walkwater Properties Private Limited

iii) Key Managerial Personnel

- Manmohan Shetty

- Kapil Bagla

- Harjeet Chhabra

- Vincent Pijnenburg ( up to 15th November 2015 )

- Rakesh Khurmi

iv) Relatives

- Pooja Deora

- Aarti Shetty

v Entities controlled by Relatives of Director

- Walkwater Properties Private Limited (up to 10th September 2014 )(WPPL)

b) Transaction with Related Parties (Excluding Reimbursements).

2) The Current assets, Loans & Advances (including capital advances) have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the balance sheet. Current assets, Loans & Advances (including capital advances) are subject to Confirmation and Reconciliation. Other known liabilities are adequate and not in excess of what are required.

3) The Term Loan facility availed by the Company is secured by pari passu first charge on movable and immovable fixed assets of the Company including mortgage of 298 acres of land to consortium lead by Union Bank of India in favour of IDBI Trusteeship Services Ltd. However, during the year the Company has transferred 137.33 acres of mortgaged land to wholly owned subsidiary with mortgage to continue in favour of lenders.

The said loan is also secured by first pari passu charge on Current assets of the Company.

Term Loan availed from Banks will be repaid over period of 7 to 10 years in unequal monthly installments starting from April 2017 to July 2018.

Term Loan availed from Financial Institutions will be repaid over period of 10 years in unequal monthly installments starting from April 2015.

Interest rate on term loan taken from Banks and Financial institutions varies from base rate plus 2.60 to 3.10.

Interest rate on Loan taken in form of Buyers Credit varies from 0.48 to 3.00.

4) The Company equity shares are in dematerialized form with the Central Depository Services (India) Limited (CDSL) and with National Securities Depository Limited (NSDL) having ISIN No. INE172N01012.

5) The previous year figures have been reworked, regrouped, rearranged and re-classified, wherever necessary. Amount and other disclosure for the preceding year are included as an integral part of the current year financial statement and are to be read in relation to the amounts and other disclosures relating to that year.

6) During the year the Company has transferred the 137.33 acres of land to its 100% subsidiary Company on 10th March, 2016 for which the deed of conveyance is executed on 29th September, 2014 for a total consideration of Rs. 1,057.57 million.

7) The Company has executed an agreement to sale on 7th November, 2014 to sell 32.58 acres of land for a total consideration of Rs. 273.71 million to its 100% subsidiary Walkwater Properties Pvt. Ltd., subject to receipt of approval from the Directorate of Industries / Government of Maharashtra ("DIC") and a no objection (NOCs) from the lenders.

8) The company has suspended operation of Bandit of Robinhood ride on account of malfunctioning and it has filed with the vendor for damages including compensation for loss of business. The company has separately disclosed it as retired asset under fixed asset schedule and is carried at lower of Net Book Value or Net Realizable value.

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Mar 31, 2015

1. GENERAL NOTE ON BUSINESS:

The Company is engaged in the business of development and operations of theme based entertainment destinations in India, including theme parks, water parks and associated activities including retail merchandising and food and beverages. The flagship project of the company is located at Khalapur, on Mumbai Pune Expressway and is branded "Adlabs Imagica" for the theme park component and "Adlabs Aquamagica" for the water park component. The Company is developing a 287 room hotel at the same location by the name "Novotel Imagica" which is expected to commence operation in the financial year 2015-2016.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 344.62 Million as on March 31,2015.

3. RELATED PARTY DISCLOSURES (AS IDENTIFIED BY THE MANAGEMENT).

a) Related Party Relationship

i) Holding Company

Thrill Park Limited

ii) Subsidiary Company

- Walkwater Properties Private Limited (w.e.f. September 11,2014)(WPPL)

iii) Key Managerial Personnel

- Mr. Manmohan Shetty

- Mr. Kapil Bagla

- Mr. Harjeet Chhabra Mr. Vincent Pijnenburg Mr. Rakesh Khurmi

iv) Relatives

- Mrs. Pooja Deora

- Ms. Aarti Shetty

v) Entities controlled by Relatives of Director

- Walkwater Properties Private Limited (up to September 10, 2014)(WPPL)

4. a) Earnings in Foreign Currency: Rs. Nil

5. The Current assets, Loans & Advances (including capital advances) have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the balance sheet. Current assets, Loans & Advances (including capital advances) are subject to Confirmation and Reconciliation. Other known liabilities are adequate and not in excess of what are required.

7. The company has mortgaged 298 acres of land with IDBI Trusteeship Services Ltd. as security for the sanctioned term loan from financial consortium with Union Bank of India as the lead banker with pari passu charge.

Term loan by the Company will be repaid over period of 10 years in unequal monthly instalments starting from April 2015. The loan is secured by first pari passu charge on the fixed assets and current assets of the Company

Interest rate on term loan taken from Banks and Financial institutions varies from base rate plus 2.60 to 3.00.

Interest rate on Loan taken in form of Buyers Credit varies from 0.48 to 3.25.

8. The Company equity shares are in dematerialized form with the Central Depository Services (India) Limited (CDSL) and with National Securities Depository Limited (NSDL) having ISIN No. INE172N01012.

9. The previous year figures have been reworked, regrouped, rearranged and re-classified, wherever necessary. Amount and other disclosure for the preceding year are included as an integral part of the current year financial statement and are to be read in relation to the amounts and other disclosures relating to that year.

10. During the year the Company has acquired 100% Shareholding of Walkwater Properties Private Limited.

11. The Company has executed a deed of conveyance on 29th September, 2014 to sell 137.33 acres of land for a total consideration of Rs. 1,057.56 Million to its 100% subsidiary Walkwater Properties Pvt. Ltd. The said conveyance shall be effective and subject to various approvals and no-objection from the consortium of lenders, and fulfillment of other conditions as per conveyance deed.

12. The Company has executed an agreement to sale on 7th November, 2014 to sell 32.58 acres of land for a total consideration of Rs. 273.71 Million to its 100% subsidiary Walkwater Properties Pvt. Ltd., subject to receipt of approval from the Directorate of Industries / Government of Maharashtra ("DIC") and a no objection (NOCs) from the lenders.

13. Share Issue Expenses

Share issue expenses as at March 31, 2015 comprised of expenses incurred in connection with issue of equity shares and there listing on stock exchanges. The total expenses in connection with the IPO where share between the Company and the Holding Company M/s Thrill Park Limited in the proportion of the amount received from the IPO proceeds. The Company share of issue expenses were adjusted against securities premium account u/s 52(2)(c) of the Companies act 2013.

14. The company has made an Initial Public Offering (IPO) during the year of 20,326,227 equity shares of face value of Rs. 10 each. The issue comprised of a fresh issue of equity shares to public of 18,326,227 and an Offer for Sale of 2,000,000 equity shares by the holding company of Adlabs Entertainment Limited, which is M/S Thrill Park Limited. The equity shares were issued at a price of Rs. 180 per share (including premium of Rs. 170 thereon) subject to a discount of Rs. 12 per share to retail investor and at a price of Rs. 221 per share to anchor investors(including premium of Rs. 211 thereon).

15. The fresh equity shares were allotted by the Company on March 27, 2015 and the equity shares were listed on National Stock Exchange of India Limited and BSE Limited on April 6, 2015.

16. The company has mortgaged 25 acres of land for Short Term facilities taken with Union Bank of India at interest rate at Base Rate plus 4%. The facility will be repaid in six months.

17. The company has suspended operation of Bandit of Robinhood ride on account of malfunctioning and it has filed with the vendor for damages including compensation for loss of business. The company has separately disclosed it as retired asset under fixed asset schedule and is carried at lower of Net Book Value or Net Realisable value.