jhawar MANTRI & ASSOCIATES

Transcription

1 jhawar MANTR & ASSOCATES CHARTERED ACCOUNTANTS 217, Great Eastern Galleria, Plot No. 20, Sector 4, Nerul, Navi Mumbai, Maharashtra Tel. Telefax ~ebsite: advisor@jhawarmantri.com jhawarmantrlcom NDEPENDENT AUDTOR'S REPORT To the Members of Mis Avenue Food Plaza Private Limited Report on the nd AS Financial Statements We have audited the accompanying nd AS financial statements of Ms Avenue Food Plaza Private Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive ncome) and Cash Flow statement and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements The Company's Board of Directors is responsible for the matters stated in Section '134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these nd AS financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the accounting principles generally accepted in ndia, including the ndian Accounting Standards (nd AS) specified in the Companies (indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibitity also inciudes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the nd AS financial statements that give a true and fair view and are free from material misstatement. whether due TO fraud or error. Auditor'S Responsibility Our responsibility is to express an opinion on these nd AS financial statements based on our audit. We have taken into accour.t tne provisions of the Act ana the rules made there under induding, the accounting and auditing standards and matters whic~, are required to be included ir, the audl: report under the provisions of the Ac'i. and t.he Rules made thereunder. We conducted our audit in accordance with the Standards on Auditinq under section 143(10) of t~e' Ptet and other appticable authoritative pronouncements issued by the institute of Chartered Accountants of ndia. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the nd AS financial statements are free from material misstatements.

2 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the nd AS financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material m.isstatement of the nd AS financial statements, whether due to fraud or error. n making those risk assessments, the auditor considers intemal financial control relevant to the Company's preparation of the nd AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion whether the Company has in place, an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's directors, as well as evaluating the overall presentation of the nd AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion n our opinion and to the best of our information and according to the explanations given to us, the aforesaid nd AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles g~nerally accepted in ndia of the state of affairs of the Company as at 31st March 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flow and! the changes in equity for the year ended on that date. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditors' Report) Order, 2016 (the "Order"), issued by the Central Government of ndia in terms of sub-section (11) of Section 143 of the Act, we give in the "Annexure N a statement on the matters specified in paragraphs 3 and 1'1 of the Order, to the extent applicable. 2. As req:uired by Section 143 (3) of the Act, we report that: a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit; b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books, c. the Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account, d. n our opinion, the aforesaid nd AS financial statements comply with the ndian Accounting Standards specified under Section 133 of the Act. e. On the basis of the written repres~ntations received fr0rl! the dir~t~rs as.on!march 31, 2018 taken on record by the Board of Directors, none of the directors S dlsquallfidi as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of th~ Act; ' f. With respect to the adequacy of the internal financial controls over financia reporting of the Company and the operating effectiveness of such controls, refers to our s parate report in "Annexure B. and

3 g. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinio and to the best of-our information and accordiing to the explanations given to us; i. The Company does not have any pending litigations which would i pact its financial position in its nd AS financiall statements.,, ii. iii. The Company did not have any long-term contracts including deriva ive contracts for which there were any material foreseeable' losses ;and There has not been an occasion in case of the company during the ear under report to transfer any sums to the nvestor Education and Protection Fun in accordance 'with the relevant provision of the Companies Act, The que tion of delay in transferring such sums does not arise.,, For Jhawar Mantri & Associates Chartered Accountants Firm Reg,istration Number: W '~walr Partner Membership No Place: Mumbai Dated: btrl~sl ~g 217, Great Eastern Galleria, Sector 4, Nert!.J Navi Mumbai-t i

4 Ms Avenue Food Plaza Private Limited ANNEXURE "A" TO THE NDEPENDENT AUDTOR'S REPORT The Annexure referred to in our ndependent Auditor's Report to the m. ember~lof the Company on the nd AS financial statements for the year ended 31st March 2018, we repirt that: i. (a) According to information and explanations given to us, company is maintaining proper records showing full particulars, including quantitative details and situation oflfixed assets. (b) Fixed assets have been physically verified by the management at rea~onable intervals and no material discrepancies were noticed on such verification. ( c) Company does not own immovable property and therefore clauses 3 (i) ~) regarding title deeds of immovable properties is not applicable to the Company for the yrar ended. ii. Physical verification of inventory has been conducted at reasonable intervals by the management. As explained to us no material discrepancies were noticed on physical verification. ' f iii. According to information and explanation given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. iv. n our opinion and according to the explanation given to us, the Company hrs complied with the provisions of the Section 185 and 186 of the Act, with respect to the 10f3n, investments, guarantees, and security provided. v. The Company has not accepted any deposits during the year from the public covered under Sections 73 to 76 of the Companies Act vi. n our opinion and according to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under Section Sub-section (1) of Section 148 of the Act. vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, i come tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess anb other material statutory dues have been regularly deposited during the year by the c9mpany with the appropriate authoriti_es. As explained to us, t~e Company did not have any rues on account of employees' state nsurance and duty of excise. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, se~ice tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable. viii.

5 ix. The Company did not raise any money by way of initial public offer or futther public offer (including debt instrument) and term loan during the year. Accordingly, para raph 3 (ix) of the Order is not applicable. x. According to the information and explanations given to us, no material fraud by the Company or on the Company by its offlcers or employees has been noticed or re lorted during the course of the Audit; xi. xii. xiii. xiv. According to the information and explanations given to us and based on 0 r examination of the records of the Company, no managerial remuneration has been paid of provided during the year. Accordingly, the Paragraph 3 (xi) of the Order is not applicable to t e Company n our opinion and according to the information and explanations given to us the Company is not a nidhi company. Accordingly, the Paragraph 3 (xii) of the Order is not applicable to the Company According to the information and explanations given to us and based on 0 r examination of the records of the Company, transaction with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such trans etion have been disclosed in the Note to the financial statement as required by the appli ble Accounting Standards. According to the information and explanations given to us and based on o~r examination of the records of the Company, The Company has not made any preferential allotment or private placement of the persons connected with him and hence provision of Clause 3 (xv) of the aforesaid order are not applicable to the Company. xv. According to the information and explanations given to us and based on 0 the records of the Company, The Company has not entered into any nonwith its Director or the persons connected with them in Compliance with Act and hence provisions of clause 3 (xv) of the aforesaid Order are not Company, r examination of sh transactions ction 192 of the pplicable to the xvi. The Company is not required to be registered under section 45-A of the Reserve bank of ndia 4-ct, For Jhawar Mantri & Associates Firm Registration NO W Chartered Accountants Nj~co ~shjhawar Partner Membership NO Dated: 4th May 2018 Place: Mumbai

6 AVENUE FOOD PLAZA PRVATE LMTED ANNEXURE-8 TO NDEPENDENT AUDTOR'S REPORT Report on the nternal Financial Controls under Clause (i) of Sub-Section 3 of fection 143 of the Companies Act, 2013 ('the Act'), We have audited internal financial controls ever financial reperting of AVENUe FOOD PLAZA P'RVATE LMTED ("the Company") as of March 31, 2018 in cenjunctien with our all dit of the nd AS financial statements of the Cempany fer the year then ended en that date. Management's Responsibility for the nternal Financial Controls The Company's management is responsible fer establishing and maintaining irternal financial controls based en the internal control ever financial reperting criteria established ~y the Cempany censidering the essential components of internal control stated in Guidance Ni te en Audit of nternal Financial Controls ever Financial Reperting issued by the nstitute of Chart ed Accountants of ndia (leal), These respensibilities includes design, implementatien and aintenance of adequate internal financial controls that were eperating effectively fer ensuring he orderly and efficient conduct of business, including adherence to' Company's policies, the saf guarding of the assets, the prevention and detection of frauds and errors, the accuracy and corn leteness of the acceunting records, and the timely preparation of reliable financial infermatien, a required under ~M, Auditor's Responsibility Our responsibility is to' express an opinion en Cempany's internal financial contr s ever financial reperting based en our audit. We cenducted our audit in accordance with the G idance Note en Audit of nternal Financial Controls ever Financial Reperting (,the Guidance Note') and the Standards en Auditing deemed to' be prescribed under Sectien 143(10) of the ct to' the extent applicable to' an audit ef internal financial controls, both applicable to' an audit of nternal financial controls and beth issued by the CA. These Standards and Guidance note requir~ that we cemply with ethi~1 requirement~ and plan and perform,audit to' ~btain reasena~'e assurange,abo,ut whether adequate internal financial controls ever flnancial reporting was established and 1amtamed and f such controls operated effectively in all material respects. Our audit involves perferming procedure to obtain audit evidence about the adequa~1 y of the internal financial controls system ever financial reporting and their eperating effectivene s, Our audit of internal financial centrals ever financial. reporting included ebtaining an understa.ding ef internal financial controls over financial reperting, assessing the risk that a material weak ess exists, and testing and evaiuatinq the design and eperating effectiveness of internal centr~e. s based on the assessed risk. The procedures selected depend en the auditor's judgeme, including the assessment of the risks of material misstatement of the financial statements, whe her due to fraud er error, We bel.ieve that the audit evidence we have obtained is sufficient and appropriate t provide a basis for our audit opinion on the Cempany's internal financial controls system ever finan ial reportinq.

7 Meaning of nternal Financial Controls over Financial Reporting A Company's internal financial control over financial reporting is a process desig1ed to provide a reasonable assurance regarding the reliability of financial reporting and prepar~fion of financial statements for external purpose in accordance with generally accepted accounti 9 principles. A Company's internal financial control over financial reporting includes those policies and procedures that: 1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; 2. Provide reasonable assurance that the transactions are recorded as ne sary to permit preparation of financial statements in accordance with the generally acce ted accounting principles, and that receipts and expenditures of the Company are bein made only in accordance with authorisations of management and directors of the Company; nd 3. Provide reasonable assurance regarding prevention or timely detection f unauthorised! acquisition, use, or cisposition of the Company's assets that could have a mat ial effect on the financial statements. nherent Lim~tations of nternal Financisll Controls over Financial Reporting Because of the inherent limitations of internal financial controls over financial reporti g, including the possibi.lity of collusion or improper management override of controls, material miss;. tements due to error or fraud may occur and not be detected. Also, projections of any evaluatio of the internal financial control over financial reporting to future periods are subject to the risk hat the internal financial control over financial reporting may become inadequate because of ChanTS in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion n our opinion, the Company has, in all material aspects, an adequate internal financial control system over financial reoortinq and such internal financial controls over financi reporting were operating effecti'vely as at March 31, 2018, based on the internal control over fi andal reporting criteria established by the Company considering the essential components of inter al control stated in Guidance Note on Audit of nternal Finanoial Controls over Financial Reporti g issued by the nstitute of Chartered Accountants of ndia. For Jhawar Mantri & Associates Chartered Accountants Firm Registrabon Number: W ~~ Naresh Jhawar Partner Membership No Place: Mumbai Dated: 4th May , Great Eastern Galleria, Sector 4, Ner~1 Navi Mumbai

8 AVENUE FOODPLAZA PRVATE LMTED Balance Sheet (~ in Lakhs) Note 31st March, st March, 2017 ASSETS 1 Non-current assets (a) Property, plant and equipment (b) Other intangible assets (c) Deferred tax assets (net) (d) Current tax assets (net) Current assets (a) nventories (b) Financial assets (i) nvestments (ii) Cash and cash equivalents (c) Other current assets TOTAL ASSETS 1, EQUTY AND LABLTES 1 Equity a) Equity share capital b) Other equity (i) Retained earnings 1, Current liabilities (a) Financial liabilities (i) Trade payables (ii) Other financial liabilities (b) Liability for current tax (net) (c) Other current liabilities TOTAL EQUTY AND LABLTES 1, GENERAL NFORMATON & SGNFCANT ACCOUNTNG POLCES 1 The accompanying notes are an integral part of these financial statements As per our report of even date For Jhawar Mantri & Associates Chartered Accountants Firm Registration No W ~ Naresh Partner Jhawar Membership Number: For and on behalf of Borad of Directors _ // p\'e~:;~;s;, -).VinCh"d" Nerurkar Director l "~:rector DN: DN: Place: Mumbai Dated: 4th MaY,2018

9 AVENUE FOODPLAZA PRVATE LMTED STATEMENT OF PROFT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018 (0;' n L a kh s ) Note Year ended March 31, Year ended March 31, REVENUE Revenue from Operations 12 1, , Other ncome , , EXPENSES Purchase of Stock-in-trade Change in nventory of Stock-in-trade 14 (42.7$) (79.09) Employment Benefit Expense Depreciation and Amortisation Expense Other Expenses ,260.8$ 1, Profit / (loss) before exceptional tems and tax V Exceptional tems - - V Profit before extraordinary items and tax Extraordinary tems - - Add/(Less): Prior period adjustments (net) - - V Profit (loss) before tax Si'l.06 V Tax Expense Current tax Deferred tax charge/(credit) (1.16) 3.17 tax in respect of earlier years V Profit/{Loss) for the period from continuing operations X Other Comprehensive ncome (i) tems that will not be reclassified to profit or loss Mutual Fund -Profit - - X Total Comprehensive ncome for the year X Earnings per equity share of Rs. 10 each (for continuing operation): Basic & Diluted 4, , As per our report of even date For Jhawar Mantri & Associates Chartered Accountants Firm Registration No W ~~~ Naresh Jhawar Partner Membership Number: / For and on behalf of Borad of Directors Prakash Pachisia ;;Navinchandra Director DN: \.. ~lrector DN: Nerurkar Place: Mumbai Dated: 4th May,2018

10 AVENUE FOODPLAZA PRVATE LMTED Statement of Cash Flows (All amounts are in Rs. lacs, except per share data and unless stated otherwise) {~ in Lakhs) Year ended Year ended 31st March st March 2017 CASH FLOW FROM OPERATNG ACTVTES: Profit before exceptional items & tax from continuing operations Adjustments for: Depreciation and amortization expenses Profit on sale of investments {3982} {25.95} Operating profit before working capital changes Adjustments for: ncrease/(decrease} in trade & other payables (121.44) ncrease/{decrease) in other current financial liabilities ncrease/(decrease) in other current liabilities (9.68) 4.72 (ncrease}/decrease in inventories (42.78) (79.09) (ncrease)/decrease in other non current financial assets ncrease/(decrease) in other current assets (34.39) ncrease/{decrease) in other current financial assets (429.82) (230.94) ( (272.44) Cash (used in) / from operations Direct taxes paid {net of refunds} Net cash (used in) / from operating activities (47.33) Net cash (used in) / from discontinued activities - - Net cash (used in) / from continuing & discontinued activities ( CASH FLOW FROM NVESTNG ACTVTES: Add: nflows from investing activities Sale of current investments / Market Value of Mutual fund at NAV Less: outflows from investing activities Purchase of property, plant and equipment/ intangible assets (130.20) (132.01) Purchase of current investments (390.00) (295.00) Net cash (used in) / from investing activities (520.20) {427.01} Net cash {used in} / from discontinued activities - - Net cash {used in} / from continuing and discontinued activities (90.38) {106.06} CASH FLOW FROM FNANCNG ACTVTES: Add: nflows from financing activities less: outflows from financing activities Cash {used in} / from financing activities. Net cash (used in) / from discontinued activities Net cash (used in) / from continuing & discontinued activities.. NET NCREASE/(DECREASE} N CASH AND BANK BALANCES {137.71} Cash and bank balances at beginning of the year Cash and bank balances at end of the year Cash and cash equivalents from continuing operations Cash and cash equivalents from discontinued operations - Cash and cash equivalents from continuing and discontinued operations The accompanying notes are an integral part of these financial statements Notes: 1 The cash flow statement has been prepared under the indirect method as set out in ndian Accounting Standard (nd AS 7) statement of cash flows. As per our report of even date For Jhawar Mantri & Associates Chartered Accountants Firm Registration No W p~ Naresh Jhawar Partner Membership Number: For and on behalf of Borad of Directors ~. v.?'/" ra~~~::ia - Director \."" ~irector --~NaVinChandra Nerurkar DN: DN: Place: Mumbai Dated: 4th May,2018

11 AVENUE FOODPLAZA PRVATE LMTED Statement of Changes in Equity A. Equity S h are Capita Amount in Lakhs Equity Share of Rs 10 each issued subscribed and fully paid At 1 April At 31 March ssue of Share Capital. At 31 March Other Equity. (~ in t.akhs) Reserves and Surplus Total Retained Earnines Balance as at 1st April, Profit for the year Other Comprehensive ncome for the year. Total Comprehensive ncome for the year Additional Depreciation Dividends. Balance as at 31st March, ~6.21 Profit for the year Other Comprehensive ncome for the year - Total Comprehensive ncome for the year 1, , Balance as at 31st March,2018 1, ,324.06

12 AVENUE FOODPLAZA PRVATE LMTED Notes to the financia statements 2- Property, Plant and Equipment (~in Lakhs) Plant & equipment Furniture & fixtures Electrical nstallations Cost or valuation Balance as at 1st April, Additions Q1 Disposals/adjustment - Balance as at 31st March, Additions Disposals/adjustment - - Balance as at 31st March, Depreciation and impairment Balance as at 1st April, Depreciation charge for the year Disposals/adjustment - - Balance as at 31st March, Depreciation charge for the year Disposals/adjustment - - Balance as at 31st March, Net book value Balance as at 1st April, Balance as at 31st March, Bal.ance as at 31st March, Total r: ~

13 AVENUE FOODPLAZA PRVATE LMTED Notes to the financial statements 3 Other ntangible assets Computer Software Total (~in Lakhs) Cost or valuation Balance as at 1st April, Additions - Di sposa 15/ ad j ustme nt - - Balance as at 31st March, Additions - - Disposa s/ ad j u stm ent - - Balance as at 31st March, Depreciation and impairment Balance as at 1st April, Depreciation charge for the year Disposa s/ ad j u stment - - Balance as at 31st March, Depreciation charge for the year Disposa s/ad j u stm ent - - Balance as at 31st March, Net carrying amount Balance as at 1st April, Balance as at 31st March, Balance as at 31st March,

14 AVENUE FOOD PLAZA PRVATE LMTED Notes to the financial statements 4 nventories ('i!; in Lakhs) 31.st March st March 2017 Stock-in-trade Total Current investments (~ in Lakhs) A. nvestment in Mutual Funds Unquoted 31st March st March 2017 HDFC Liquid Fund - Growth Total (A) Aggregate amount of unquoted investments Aggregate amount of impairment in the value of investment Cash and cash equivalents (~ in Lakhs) 31st March st March 2017 Cash on hand Balances with Banks - n current accounts Total Other current assets (~ in Lakhs) 31st March st March 2017 Prepaid Expenses Advances to Suppliers Balance with Government Authorities Advances recoverable in kind for value to be received Total Share capital (~ in Lakhs) 31st March st March 2017 A. Authorised 10,000 [31st March, 2018: 10,000 and 31st March, 2017:10,000J Equity Shares of RS each ssued, subscribed and fully paid up 10,000 [31st March, 2018: 10,000 and 31st March, 2017: 10,000J Equity Shares of Rs 10 each Notes: a) Reconciliation of number of shares Balance at the beginning of the year No. of shares Amount in '{ Lacs ssued, subscribed and paid up during the year No. of shares Amount in ~ Lacs Balance at the end of the year No. of shares Amount in ~ Lacs b) Details of equity shares held by shareholders holding more than 5% of the aggregate shares n the Campany Avenue Supermarts Ltd % holding of shares % %

15 AVENUE FOODPLAZA PRVATE LMTED Notes to the financial statements 9 Trade payables (~in Lakhs) 31st March st March 2017 Trade payables Amounts due to related parties Total Other current financial liabilities (-: in Lakhs) 31st March st March 2017 Capital Creditors Other~ables Total Other Current liabilities (~ in Lakhs) 31st March st March 2017 Statutory Dues Total

16 AVENUE FOODPLAZA PRVATE LMTED NOTES FORMNG PART OF THE FNANCAL STATEMENTS NOTE 12 - REVENUE FROM OPERATONS (~ in lakhs) Year ended March 31, Year ended March 31, Sales 1, , Less: Tax (8.09) (115.50) Total 1, , NOTE 13 - OTHER NCOME (~ in Lakhs) Year ended March 31, Year ended March 31, Profit on Sale of Current nvestments Miscellaneous ncome Total NOTE 14 - CHANGE N NVENTORY OF STOCK-N-TRADE (~ in Lakhs) Year ended March 31, Year ended March 31, Closing Stock Opening Stock Total {42.78} (79.09) NOTE 15 - EMPLOYMENT BENEFT EXPENSE Year ended March 31, Year ended March 31, Employee Welfare Expenses 0.09 Total NOTE 16 - DEPRECATON AND AMORTSATON EXPENSE (~ in Lakhs) Year ended March 31, Year ended March 31, Depreciation/ Amortisation on: - Tangible assets ntangible assets Total NOTE 17 - OTHER EXPEN6ES Contract Labour Charges Rent Rates and Taxes Repairs and Maintenance: - Plant and Machinery - Others Administrative Expenses Legal and Professional Fees Travelling and Conveyance Payment to Auditors - Audit Fees - Other Services Expenditure towards Corporate Social Responsibility (CSR) activities Miscellaneous Expenses Selling and Distribution Expenses Bank Charges v Total Year ended March 31, (~ in Lakhs Yea~ ended March 31,

17 Avenue Food Plaza Private Limited. 1. Significant Accounting Policies and Practices (a) Basis of Preparation of Accounts The financial statements of the Company have been prepared in accordance with ndia Accounting Standards (nd AS) notified under the Companies (ndian Accounting Standards) Rules, The Financial Statements have been prepared under the historical cost convention and on accrual basis, except for certain financial assets and liabilities (including derivative instruments) measured at fair value; defined benefit plan assets measured at fair value and share based payments. (b) Use of estimates The preparation of financial statements in conformity with the Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and differences between actual results and estimates are recognized in the periods in which the results are known / materialize. (c) Revenue Recognition Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. The financial statements are prepared under the historical cost convention and after taking into consideration prudential norms of income recognition accounting standard. Accounts are prepared on going concern basis. Sales / Turnover for the year includes sales value of goods. (d) Taxation ncome-tax expense comprises current and deferred tax. Provision for current tax which is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year and in accordance with ncome Tax Laws. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or subsequently enacted by the Balance Sheet date. v

18 Avenue Food Plaza Private Limited. (e) Property, plant and equipment All item of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of items. Subsequent cost are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Transition to nd AS On transition to nd As, the Company has elected to continue with the carrying value of all its property plant and equipment recognized as at 1 April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment. Depreciation on property, plant and equipment Depreciation is charged from the date it is put to use. Company has adopted useful lives of the assets method as provided in Part C of schedule" of the Companies Act 2013 and depreciated the assets on pro-rata basis over the useful lives of the assets. (f) ntangible assets ntangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Transition to nd AS On transition to nd As, the Company has elected to continue with the carrying value of all its property plant and equipment recognized as at 1 April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the ntangible assets.

19 Avenue Food Plaza Private Limited. (g) lnventories tems of inventories are measured at lower of cost at weighted average and net realizable value after providing for obsolescence, if any. (h) Provision for Current and Deferred Tax Provision for current tax is made after taking into consideration benefit admissible under the provisions of the ncome Tax Act Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using he tax rates and laws that are enacted as on the balance sheet date.

20 Avenue Food Plaza Private Limited. 18. NOTES FORMNG PART OF THE FNANCAL STATEMENTS 1. Estimated amounts of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs.NL (Previous Year Rs. NL). 2. Based on information received from vendors, there is no delay in payment to vendors registered under the Micro, Small and Medium Enterprises Development Act, a) There is no principal amount and interest due thereon remaining unpaid to any supplier as at the end of each accounting year; b) There is no interest paid to the buyer in terms of section 16 of the Micro, Small and Medium Enterprises development Act,2006,along with the amount of the payment made to the supplier beyond the appointed day during each accounting year; c) There is no interest due and payable for the period of delay in making payment but without adding the interest specified under the Micro, Small and Medium Enterprises development Act,2006; d) There is no amount of interest accrued and remaining unpaid at the end of each accounting year; and e) There is no amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually not paid to the small enterprise, for the purpose of disallowance as deductible expenditure under section 23 of the Micro, Small and Medium Enterprises development Act, st March 2018, the Company did not have any contingent liabilities. 4. Segment Reporting: The Company regards the business of fast food centers as a single reportable segment. Further, the Company operates within single geographical segment. Accordingly, disclosures required under Accounting Standard - 17 "Segment Reporting" are not applicable.

21 Avenue Food Plaza Private Limited. 5. Related Party Disclosure: (a) Relationships Ownership nterest (i) Country of 31st March, st March,17 Relationshies incoreoration Holdinq Company: Avenue Supermarts Limited ndia (ii) (iii) Key' Management Personnel Mr. Prakash Pachisia Mr. Navinchandra Nerurkar Other Related Parties Mis. Align Retail Trade Private Ltd. Mis. Avenue E-Commerce Ltd. -- Note: Related Party Relationship is as defined by company and relied upon by the auditors. (b) Transaction with related parties ~ n Lakhs Particulars Referred in (a) Referred in (a) (i) above (ii) above Rent Paid (29.57) ( - ) Reimbursement of Expenses - - (42.73) ( - ) Payables (9.54) ( - ) Figures in bracket represent previous year's ftgures. 6. Computation of Earnings Per Share ~ n Lakhs Year ended Year ended 31st March, st March, 2017 Profit after tax Profits for the purpose of EPS Weighed average Numbers of Equity Shares 10,000 10,000 EPS (Rs.) - Basic and Diluted Face value per share (Rs.)

22 Avenue Food Plaza Private Limited. 7. Financial Risk Management a) Credit risk Company has fully invested in Bank deposit thus Company does not foresee any credit risk. b) Liquidity Risk Company has no borrowings thus Company does not foresee and liquidity risk. e) Market Risk Company has no foreign currency exposure and does not have hedge position in currency market, thus Company does foresee any market risk. 8. Previous year figures have been reclassifled in accordance with current year requirements. For Jhawar Mantri & Associates Chartered Accountants Firm Registration No W For and on behalf of Board of Directors Naresh Jhawar Partner Membership NO Dated: 4th May,2018 Prakash Pachisia Navinchandra Nerurkar Director Director DN: DN: Place: Mumbai