Essar Bulk Terminal Paradip Limited

Balance Sheet as at March 31, 2017

(Rs. in lakhs)
As at As at As at
Particulars Notes
March 31, 2017 March 31, 2016 April 01, 2015

I ASSETS

Non-current assets
(a) Property, plant and equipment 6 46,742.12 48,853.75 50,944.54
(b) Capital work-in-progress 7 - - 15.58
(c) Investment in subsidiary 8 5.00 5.00 -
(d) Financial assets
(i) Trade receivables 10 19,345.53 8,139.26 -
(ii) Other financial assets 9 466.12 972.56 532.66
(e) Other non-current assets 11 - 7.49 25.51
(f) Non current tax assets 12 1,017.00 396.43 49.40
(g) Deferred tax assets (net) 23 465.31 - -

Total non-current assets 68,041.08 58,374.49 51,567.69

Current assets
(a) Inventories 13 84.78 89.69 79.77
(b) Financial assets
(i) Trade receivables 14 9,845.79 20,792.00 21,007.15
(ii) Cash and cash equivalents 15 79.59 67.50 122.94
(iii) Bank balances other than cash and cash equivalents 16 13.67 12.62 311.68
(iv) Other financial assets 17 153.53 4.62 33.93
(c) Other current assets 18 593.86 476.80 618.31

Total current assets 10,771.22 21,443.23 22,173.78

Total Assets 78,812.30 79,817.72 73,741.47

II EQUITY AND LIABILITIES

Equity
(a) Share capital 19 5.00 5.00 5.00
(b) Other equity 20 16,459.54 18,806.54 19,000.23

Total equity 16,464.54 18,811.54 19,005.23

Liabilities

Non-current liabilities
(a) Financial liabilities
(i) Borrowings 21 28,271.31 36,409.91 30,524.03
(ii) Other financial liabilities 22 1,490.43 1,005.57 4,388.50
(b) Deferred tax liabilities (net) 23 - 766.49 892.90

Total non-current liabilities 29,761.74 38,181.97 35,805.43

Current liabilities
(a) Financial liabilities
(i) Borrowings 24 5,900.00 5,900.00 5,850.00
(ii) Trade payables 25 1,973.69 1,377.70 1,484.12
(iii) Other financial liabilities 26 22,439.72 13,948.69 9,392.40
(b) Other current liabilities 27 1,417.01 741.92 1,342.05
(c) Provisions 28 855.60 855.90 862.24

Total current liabilities 32,586.02 22,824.21 18,930.81

Total Liabilities 62,347.76 61,006.18 54,736.24
Total equity and liabilities 78,812.30 79,817.72 73,741.47

See accompanying notes to the financial statements

In terms of our report attached For and on behalf of the Board of Directors
For MSKA & Associates (Formerly known as MZSK & Associates)
Chartered Accountants

U. Venkat Rao Rajiv Agarwal

Anita Somani Whole time Director Director
Partner DIN:05112625 DIN:02666332
Mumbai,_____ November 2017
Prasanta Behera
Chief Financial Officer Company Secretary
Mumbai, 15 November 2017
Essar Bulk Terminal Paradip Limited
Statement of Profit and Loss for the year ended March 31, 2017
(Rs. in lakhs)
Notes For the year ended For the year ended
Particulars
March 31, 2017 March 31, 2016

I Revenue from operations 29 11,901.87 14,879.28

II Other income 30 1.29 59.85

III Total Income (I + II) 11,903.16 14,939.13

IV Expenses:
(a) Operating expenses 31 2,720.33 3,079.83
(b) Employee benefits expense 32 244.77 270.10
(c) Other expenses 33 2,551.90 1,889.84
(d) Depreciation and amortisation expense 6 2,117.19 2,124.79
(e) Finance costs 34 7,846.03 7,813.30

V Total expenses 15,480.22 15,177.86

VI Loss before tax (III-V) (3,577.06) (238.73)

VII Tax expense/(benefit): 43

(a) Current tax - 86.64
(b) Deferred tax (1,231.80) (126.42)
(1,231.80) (39.78)

VIII Loss for the year (VI-VII) (2,345.26) (198.95)

Other comprehensive income

(i) Items that will not be reclassified to profit or loss

(a) Remeasurement of the defined benefit plans (1.74) 5.26
(b) Income tax relating to items that will not be reclassified
to profit or loss 0.60 (1.82)

IX Total other comprehensive income (i+ii) (1.14) 3.44

X Total comprehensive loss for the year (X+XI) (2,346.40) (195.51)

XI Earnings per equity share (face value of Rs. 10 each)

(1) Basic (in Rs) 39 (4,690.52) (397.89)
(2) Diluted (in Rs) (4,690.52) (397.89)

See accompanying notes to the financial statements

In terms of our report attached For and on behalf of the Board of Directors
For MSKA & Associates (Formerly known as MZSK & Associates)
Chartered Accountants
U. Venkat Rao Rajiv Agarwal
Whole time Director Director
Anita Somani DIN:05112625 DIN:02666332
Partner
Mumbai, ____ November 2017 Prasanta Behera
Chief Financial Officer Company Secretary
Mumbai, 15 November 2017
ESSAR BULK TERMINAL PARADIP LIMITED
Cash Flow Statement for the year ended 31st March 2017

Particulars For the year ended For the year ended

31 March 2017 31 March 2016
Rs. in lakhs Rs. in lakhs

CASH FLOW FROM OPERATING ACTIVITIES

Profit before tax for the year (3,577.06) (238.73)

Adjustments for:
Provision for bad & doubtful debt (expected credit loss) 22.03 689.05
Interest income from bank deposits (1.06) (13.61)
Finance costs 7,846.03 7,813.31
Depreciation expense 2,117.19 2,124.80
Cash flow from operations before working capital changes 6,407.13 10,374.82
Adjustment for (increase) / decrease in operating assets :
Inventories 4.92 (9.87)
Trade receivables (282.09) (4,529.73)
Loans and advances and other current assets 248.05 (4,380.45)
Adjustment for increase in operating liabilities :
Trade payables 595.99 (106.42)
Current liabilities and provisions 678.23 (600.23)
Cash flow from operations 7,652.23 748.12
Income taxes paid, (net) (625.74) (434.66)

Net cash flow generated from / (used in) operating activities (I) 7,026.49 313.45

CASH FLOW FROM INVESTING ACTIVITIES

Capital expenditure on fixed assets including capital advances (84.97) (1,718.67)
Bank deposits placed for a period of more than three months (1.05) (12.62)
Proceeds from maturity of bank deposits - 311.68
Investment in Subsidiary - (5.00)
Interest received from bank deposits 0.96 38.83

Net cash used in investing activities (II) (85.06) (1,385.78)

CASH FLOW FROM FINANCING ACTIVITIES

Share application money received - 267.00
Share application money refunded - (267.00)
Finance costs paid (5,563.29) (5,761.53)
Proceeds from long-term borrowings 3,523.15 11,621.88
Repayment of long-term borrowings (4,889.19) (4,893.46)
Proceeds from short-term borrowings - 50.00

Net cash flow generated from / (used in) financing activities (III) (6,929.33) 1,016.89

Net increase in cash and cash equivalents during the year (I+II+III) 12.09 (55.44)
Cash and cash equivalents at the beginning of the year 67.50 122.94
Cash and cash equivalents at the end of the year (refer note no.14) 79.59 67.50

Notes:

1 During the year ended 31 march 2016, the Company has converted share application money received of Rs, 4388.50 lakhs to inter
corporate deposits.

See accompanying notes forming part of the financial statements

In terms of our report attached
For MSKA & Associates (Formerly known as MZSK & Associates) For and on behalf of the Board of Directors
Chartered Accountants

U. Venkat Rao Rajiv Agarwal

Anita Somani Whole time Director Director
Partner DIN:05112625 DIN:02666332

Mumbai, _____ November 2017

Prasanta Behera
Chief Financial Officer Company Secretary

Mumbai, 15 November 2017

Essar Bulk Terminal Paradip Limited
Statement of Changes in Equity for the year ended March 31, 2017

A. Equity share capital (Rs in lakhs)

Particulars Amount
Balance as at April 01, 2015 5.00
Changes in equity share capital during the year -
Balance as at March 31, 2016 5.00
Changes in equity share capital during the year -
Balance as at March 31, 2017 5.00

B. Other equity
(Rs. In lakhs)

Other Comprehensive
Reserves and surplus
Equity component of income
Particulars compound financial Total
instruments Remeasurement of
Retained earnings
defined benefit plans

Balance as at April 01, 2015 12,995.00 6,005.23 19,000.23

Profit/(Loss) for the year (198.95) (198.95)

Other comprehensive income for the year, net of income tax 5.26 5.26

Total comprehensive income/ (loss) for the year - (198.95) 5.26 (193.69)

Other adjustments - - - -
Balance as at March 31, 2016 12,995.00 5,806.28 5.26 18,806.54

Profit/(Loss) for the year (2,345.26) (2,345.26)

Other comprehensive income for the year, net of income tax (1.74) (1.74)

Total comprehensive income/ (loss) for the year - (2,345.26) (1.74) (2,347.00)

Other adjustments - - - -
Balance as at March 31, 2017 12,995.00 3,461.02 3.52 16,459.54
See accompanying notes to the financial statements

In terms of our report attached For and on behalf of the Board of Directors
For MSKA & Associates (Formerly known as MZSK & Associates)
Chartered Accountants
U. Venkat Rao Rajiv Agarwal
Whole time Director Director
Anita Somani DIN:05112625 DIN:02666332
Partner
Mumbai, ____ November 2017 Prasanta Behera
Chief Financial Officer Company Secretary

Mumbai, 15 November 2017

Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

6 Property, plant and equipment (Rs. in lakhs)

Particulars Freehold land Plant and equipment Furniture and fixtures Buildings Vehicles Total
Gross carrying amount
Deemed cost at April 01, 2015 267.85 50,621.54 37.81 16.88 0.46 50,944.54
Additions 15.15 13.03 5.82 - 0.00 34.00
At March 31, 2016 283.00 50,634.57 43.63 16.88 0.46 50,978.54

Additions 3.00 0.48 2.08 - - 5.56

At March 31, 2017 286.00 50,635.05 45.71 16.88 0.46 50,984.10

Accumulated depreciation and impairment

At April 01, 2015 - - - - - -
Depreciation expense - 2,100.86 16.02 7.82 0.09 2,124.79
At March 31, 2016 - 2,100.86 16.02 7.82 0.09 2,124.79

Depreciation expense - 2,102.53 6.81 7.83 0.02 2,117.19

At March 31, 2017 - 4,203.39 22.83 15.65 0.11 4,241.98
Net Carrying amount
At April 01, 2015 267.85 50,621.54 37.81 16.88 0.46 50,944.54
At March 31, 2016 283.00 48,533.71 27.61 9.06 0.37 48,853.75
As at March 31, 2017 286.00 46,431.66 22.88 1.23 0.35 46,742.12

6.1 P&M (Conveyor belts) with the carrying amount of Rs. 43,323.65 lakhs (as at March 31, 2016: Rs. 43,323.65 lakhs; as at April 01, 2015: Rs. 43,323.65 lakhs) has been partly erected on the land owned by Paradip Port
Trust and allotted to the Company under concession arrangement for the period until April 2020.
6.2 All the property, plant and equipment of the Company have been pledged to secure borrowings of the Company. (refer note no. 21).

7 Capital work in progress

(Rs. in lakhs)
Particulars As at March 31, 2017 At March 31, 2016 At April 01, 2015
Capital work in progress - - 15.58
Total - - 15.58
Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

8 Investment in subsidiary
(Rs. in lakhs)
Particulars
As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Non trade investments,Unquoted

Investments in equity instruments of Subsidiary - (at cost)

50,000 number of (as at March 31, 2016: 50,000; as at April 1st, 2015: Nil) equity shares of
5.00 5.00 -
Rs.10/- each of Petro Tankages India Limited

Total 5.00 5.00 -

9 Other financial assets (non-current)

(Rs. in lakhs)
Particulars
As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Unsecured and considered good unless otherwise stated

a) Security deposits
- to a related party (refer note no. 45) 421.80 421.80 421.80
- to others 44.32 550.76 110.86

Total 466.12 972.56 532.66

10 Trade receivables
(Rs. in lakhs)
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Trade receivables* (Refer Note 45)

Unsecured, considered good 19,345.53 8,139.26 -
Unsecured, considered doubtful 1,682.22 707.76 -
Less: Allowance for bad and doubtful receivables. (expected credit loss) (1,682.22) (707.76) -

Total 19,345.53 8,139.26 -

(a) The credit period on sale of services is 30 days. No interest is charged on trade receivables for the first 30 days from the date of invoice. Thereafter,
interest is charged at 12% per annum on the outstanding balances. The above trade receivables include interest receivable of Rs. 7954.57 lakhs (March 2016:
Rs. 6687.22 lakhs ; 1 April 2015: Rs. 2603.79 lakhs).

In determining the allowance for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss based on a
provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. At every reporting
date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. The expected credit loss allowance is based
on an ageing of the receivables that are due and rates used in the provision matrix. Accordingly, the Company has recognized 8% as the average expected
credit loss rate on all of its trade receivables including interest thereon outstanding as at the year end.
(b) There have been delays in recovery of dues from Essar Steel India Limited (ESIL), one of the major customer of the Company due to liquidity issues
consequent to poor steel market conditions. Further the National Company Law Tribunal (NCLT) has ordered the commencement of a corporate insolvency
resolution process against ESIL on August 2, 2017 under regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for
Corporate Persons) Regulations, 2016.

Based on positive net worth of ESIL as per latest audited financial statements, fair values of its net assets, improvement in operational performance and
expected improvement in liquidity and net worth of ESIL at the end of the NCLT process, and considering the fact that the Company controls cargo flow for
ESIL steel plant, management is confidend that they will be able to negotiate strict terms for recoverability of its trade receivables from ESIL. Accordingly,
these receivables are considered good and recoverable and no further provision is considered necessary.
Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements
11 Other non-current assets
(Rs. in lakhs)
Particulars
As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Prepaid expenses - 7.49 25.51

Total - 7.49 25.51

12 Non current tax assets (net)

(Rs. in lakhs)
Particulars
As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

(a) Advance income tax / Tax deducted at source (net of provision for taxation of Rs. 1040.54
lakhs (as at March 31, 2016 of Rs. 1021.90 lakhs, as at April 01, 2015 of Rs. 935.26 lakhs)
1,017.00 396.43 49.40

1,017.00 396.43 49.40

13 Inventories
(Rs. in lakhs)
Particulars
As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Stores and spares (Valued at lower of cost and net realisable value) 84.78 89.69 79.77

Total 84.78 89.69 79.77

14 Trade receivables
(Rs. in lakhs)
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015
Trade receivables (Refer Note No. 45)*
Unsecured, considered good 9,845.79 20,792.00 21,007.15
Unsecured, considered doubtful 856.16 1,808.00 1,826.71
Less: Allowance for bad and doubtful receivables. (expected credit loss) (856.16) (1,808.00) (1,826.71)

Total 9,845.79 20,792.00 21,007.15

(a) The credit period on sale of services is 30 days. No interest is charged on trade receivables for the first 30 days from the date of invoice. Thereafter,
interest is charged at 12% per annum on the outstanding balances. The above trade receivables include interest receivable of Rs. 7954.57 lakhs (March 2016:
Rs. 6687.22 lakhs ; 1 April 2015: Rs. 2603.79 lakhs).

In determining the allowance for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss based on a
provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. At every reporting
date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. The expected credit loss allowance is based
on an ageing of the receivables that are due and rates used in the provision matrix. Accordingly, the Company has recognized 8% as the average expected
credit loss rate on all of its trade receivables including interest thereon outstanding at the year end.

(b) There have been delays in recovery of dues from Essar Steel India Limited (ESIL), one of the major customer of the Company due to liquidity issues
consequent to poor steel market conditions. Further the National Company Law Tribunal (NCLT) has ordered the commencement of a corporate insolvency
resolution process against ESIL on August 2, 2017 under regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for
Corporate Persons) Regulations, 2016.

Based on positive net worth of ESIL as per latest audited financial statements, fair values of its net assets, improvement in operational performance and
expected improvement in liquidity and net worth of ESIL at the end of the NCLT process, and considering the fact that the Company controls cargo flow for
ESIL steel plant, management is confident that they will be able to negotiate strict terms for recoverability of its trade receivables from ESIL. Accordingly,
these receivables are considered good and recoverable and no further provision is considered necessary.
Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

15 Cash and cash equivalents

(Rs. in lakhs)
Particulars
As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Balances with banks in current accounts 79.59 67.50 122.94

79.59 67.50 122.94

16 Bank balances other than cash and cash equivalents

(Rs. in lakhs)
Particulars
As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Bank deposits held as margin money (lien against bank guarantee) 13.67 12.62 311.68

Total 13.67 12.62 311.68

17 Other financial assets

(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015
Unsecured and Considered good unless otherwise stated
a) Security deposits
- to Others 153.51 4.50 8.59
b) Interest accrued on bank deposits 0.02 0.12 25.34

Total 153.53 4.62 33.93

18 Other current assets

(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

Unsecured and Considered good unless otherwise stated

a) Prepaid expenses 38.45 37.97 40.69
b) Balances with government authorities
- Cenvat credit receivable 15.42 26.30 45.72
- Service tax receivable 128.63 224.52 163.58
c) Advance to suppliers 411.36 188.01 368.32

Total 593.86 476.80 618.31

 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

19 Equity Share Capital

(Rs. in lakhs)
a) As at As at As at
Particulars
March 31, 2017 March 31, 2016 April 01, 2015

Authorised
50,000 (as at March 31, 2016: 50,000; as at April 01, 2015: 50,000) Equity Shares of Rs. 10/- each 5.00 5.00 5.00
17,99,50,000 (as at March 31, 2016: 17,99,50,000; as at April 01, 2015: 17,99,50,000) Compulsory 17,995.00 17,995.00 17,995.00
Convertible Cumulative Participating Preference shares ("CCCPPS") of Rs. 10/- each

18,000.00 18,000.00 18,000.00

Issued, subscribed and fully paid up

50,000 (as at March 31, 2016: 50,000; as at April 01, 2015: 50,000) Equity Shares of Rs. 10 each 5.00 5.00 5.00

5.00 5.00 5.00

Notes:-

(b) Reconciliation of the number of equity shares and amount outstanding at the beginning and at the end of the reporting period

As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015
Amount (Rs. Amount (Rs. Amount (Rs.
Number in lakhs) Number in lakhs) Number in lakhs)

Equity shares of Rs. 10/- each

At the beginning of the year 50,000.00 5.00 50,000.00 5.00 50,000.00 5.00
Add: Issue of shares during the year - - - - - -
Outstanding at the end of the year 50,000.00 5.00 50,000.00 5.00 50,000.00 5.00

(c) Terms of / rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders along with CCCPPS holders (refer
note e (iv) below) are eligible to receive the remaining assets of the Company after distribution of all preferential amounts and preference share capital, in proportion to their shareholding.

(d) Reconciliation of the number of CCCPPS and amount outstanding at the beginning and at the end of the reporting period
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015
Number Number Number
0.01% CCCPPS of Rs. 10/- each
At the beginning of the year 12,99,50,000.00 12,99,50,000.00 12,99,50,000.00
Add: Issue of shares during the year - - -
Outstanding at the end of the year 12,99,50,000.00 12,99,50,000.00 12,99,50,000.00

(e) Terms of / rights attached to CCCPPS

(i) Fixed dividend on preference shares : the CCCPPS holders have right to get fixed dividend of 0.01% p.a. from the date of allotment on cumulative basis.

(ii) Participating Dividend : CCCPPS holders have the same rights to dividend as that of the equity share holders over and above the fixed dividend.

(iii) Each CCCPPS is compulsorily convertible into one equity share of Rs.10/- each at par at the end of twenty years from 28 March 2012 (date of allotment). The CCCPPS holders have the option to convert the CCCPPS into
equity shares any time after the expiry of one year from the date of allotment of the CCCPPS.

(iv) CCCPPS holders are eligible to receive over and above the preferential share capital the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding in the event of
liquidation, at par with the equity shareholders.

(v) Equity shares to be issued upon conversion of the CCCPPS shall rank pari passu with the existing equity shares.

(f) Details of shares held by holding / ultimate holding company and / or their subsidiaries / associates and holders holding more than 5% share in the company

Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015
Number % Number % Number %
i) Equity shares of Rs. 10/- each
Essar Steel India Limited (subsidiary of the ultimate holding 2,000.00 4% 2,000.00 4% 2,000.00 4%
company)
Essar Bulk Terminal Limited (holding company) 47,500.00 95% 47,500.00 95% 47,500.00 95%
Arkay Logistics Limited (subsidiary of the ultimate holding 500.00 1% 500.00 1% 500.00 1%
company)
50,000.00 100% 50,000.00 100% 50,000.00 100%
ii) CCCPPS of Rs. 10/- each
Essar Bulk Terminal Limited (holding company) 12,99,50,000.00 100% 12,99,50,000.00 100% 12,99,50,000.00 100%

12,99,50,000.00 100% 12,99,50,000.00 100% 12,99,50,000.00 100%

(g) Share issued for consideration other than cash

Shares allotted for consideration other than cash and brought back in last 5 year: nil
Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

20 Other Equity
(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015
a) Retained Earnings 3,461.02 5,806.28 6,005.23
b) Equity Component of CCCPPS 12,995.00 12,995.00 12,995.00
c) Remeasurement of defined benefit plans 3.52 5.26 -
Total 16,459.54 18,806.54 19,000.23

21 Borrowings (Non current)

(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

Secured borrowings at amortised cost

(a) Term loans from banks 19,755.17 22,819.48 24,366.18
(b) Term loan from others 9,259.83 11,003.18 12,142.81
(c) Unamortised portion of ancillary borrowing cost (533.47) (666.84) (800.24)
Less: current maturities (refer note 26) (7,223.88) (6,355.25) (5,612.95)
Less: Interest accrued borrowings (refer note 26) (1,381.47) (1,300.44) (974.30)
Unsecured borrowings at amortised cost
(a) Inter corporate deposits from related parties (refer note no. 45 ) 23,681.75 18,090.77 2,389.85
Less: current maturities (refer note 26) (11,528.20) (5,490.91) (868.76)
Less: Interest accrued on Inter corporate deposits (refer note 22 & 26) (3,758.42) (1,690.08) (118.56)
Total 28,271.31 36,409.91 30,524.03

Security details, repayment terms and interest rate, breach of loan agreement (if any)

a) Secured rupee term loans from banks and others are secured by first charge on Company's movable and immovable properties, pledge of certain shares of the
Company held by promoters and backed jointly and severally by corporate guarantee of Rs. 48,000 lakhs (As at March 31, 2016 Rs. 48,000 lakhs, as at April 01,
2015 Rs. 48,000 lakhs) from Essar Ports Limited.

b) Secured rupee term loans from banks and others are part of consortium loan agreement carry interest rate @ 12%-14.50% p.a. with repayment starting from
June 2012 and ending on March 2021 in equal quarterly instalments.

c) Inter corporate deposit from a related party carry interest rate of 13.50% per annum and is repayable in two quarterly instalments due on December 31, 2017
and March 31, 2020.

d) During the year the Company was had delays in payment of interest and principal to the lenders. As at 31 March 2017, the Company had delays in payment of
interest and principal instalments of Rs 2,874.05 lakhs ( As at March 31, 2016 Rs. 2,535.39 lakhs, as at April 01, 2015 Rs. 2,101.30 lakhs) which were subsequently
paid.The company also did not comply with certain loan covenants. The lender did not accelerated repayment of loan and the terms of the loan were not
changed. The classification of loans between current financial liability and non-current financial liability continues based on repayment schedule under
respective agreements as no loans have been recalled by the lenders due to non compliance of conditions under any of the loan agreement. Also lenders have
Structured the repayment schedule of term loan upto December 2031 under 5/25 flexible structuring scheme of RBI

22 Other financial liabilities (Non Current)

(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

Interest accrued on Inter corporate deposits 1,490.43 1,005.57 -

Share application money pending allotment* - - 4,388.50

Total 1490.43 1005.57 4,388.50

*During financial year 2014-15 the Company has received Rs. 4,388.50 lakhs towards share application money. The Company settled this share application
money by refunding it prior to 30 June 2015.
Essar Bulk Terminal
*During Paradip
financial year 2014-15 Limited
the Company has received Rs. 4,388.50 lakhs towards share application money. The Company settled this share application
money
Notes by refunding
forming part of theitfinancial
prior to statements
30 June 2015.

23 Deferred tax (assets) / liabilities (net)

The components of net deferred tax (assets)/ liabilities are as follows:-
(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015
Tax effect of items constituting deferred tax liabilities
On difference between book balance and tax balance of fixed assets 6,636.97 5,704.65 4,481.32
Borrowings - -
(A) 6,636.97 5,704.65 4,481.32
Tax effect of items constituting deferred tax assets
Unabsorbed depreciation carried forward (3,826.70) (1,670.42) (645.78)
MAT credit entitlement* (2,408.38) (2,408.38) (2,321.74)
ECL (867.20) (859.36) (620.90)
(B) (7,102.28) (4,938.16) (3,588.42)

(A-B) (465.31) 766.49 892.90

The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding reversible deferred tax liability on the difference
between the book balance and the written down value of fixed assets under Income Tax.

*The Company has a long term arrangement in nature of ‘take-or-pay’ with Essar Steel India Limited, ("ESTL") a related party, which is one of the major
customers. The Company has, acceded to ESTL’s request to charge the cargo handling charges on an actual basis instead of as per minimum guarantee quantity
as per the agreement temporarily from 1 October, 2015 to 31 March, 2017, and reinstate minimum guarantee terms with effect from 1 April, 2017. Having
regard to above and revenue from handling third party cargo, the Company has assessed recoverability of MAT balance of Rs. 2408.38 lakhs as at 31 March,
2017, and concluded that sufficient taxable income would be available in future years to realise the MAT.

24 Short Term Borrowings

(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

Secured - at amortised cost

(a) Working capital loan from bank (Secured by first pari passu charge on all the present and 5,900.00 5,900.00 5,850.00
future movable / immovable assets / properties, insurance contracts, accounts, receivables
and all other assets of the Company including but not limited to goodwill, trademarks and
patents, pledge of certain shares of the Company held by promoters and backed jointly and
severally by corporate guarantee of Rs. 6500 lakhs (As at March 31, 2016 Rs. 6500 lakhs, as at
April 01, 2015 Rs. 6500 lakhs) from Essar Ports Limited.)
Total 5,900.00 5,900.00 5,850.00

25 Trade payables
(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

Trade payables 1,973.69 1,377.70 1,484.12

Total 1,973.69 1,377.70 1,484.12

There is no amount due to micro, small and medium Enterprises as defined under " The Micro, Small and Medium Enterprise Development Act, 2006". The
information has been determined to the extent such parties have been identified on the basis of information available with the Company.

26 Other financial liabilities (Current)

(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

a) Current maturities of long term debt (Refer Note 21(d) 7,223.88 6,355.25 5,612.95
b) Inter corporate deposits from related parties (refer note no. 45) 11,528.20 5,490.91 868.76
c) Interest accrued borrowings 1,381.47 1,300.44 974.30
d) Interest accrued on Inter corporate deposits 2,267.99 684.51 118.56
e) Payable for capital expenses 38.18 117.58 1,817.83

Total 22,439.72 13,948.69 9,392.40

Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements
27 Other current liabilities
(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

Advance from customer 220.00 - 357.00

Statutory dues (service tax, tax deducted at source, provident fund and other dues) 1,197.01 741.92 985.05

Total 1,417.01 741.92 1,342.05

28 Short-term provisions
(Rs. in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

(a) Provision for employee benefits

- Gratuity (refer note no. 44) 7.78 4.60 4.79
- Compensated absences (refer note no. 44) 8.75 8.79 13.95

(b) Others
Provisions for taxation (net of advance tax of Rs.547.36 lakhs (as at March 31, 2016 Rs.
562.59 lakhs, as at April 01, 2015 of Rs. 561.61 lakhs)) 839.07 842.51 843.50
Total 855.60 855.90 862.24
Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements
29 Revenue from operations
(Rs. in lakhs)
For the year ended For the year ended
Particulars
March 31, 2017 March 31, 2016

Sale of services
Port and terminal services 6,859.59 9,519.02
Wharfage charges 1,419.20 1,407.00
Berth hire charges 251.36 250.00
Other operating income (Interest on overdue trade receivables from related parties ) (refer
note no 45) 3,371.72 3,703.26

Total 11901.87 14879.28

30 Other income
(Rs. in lakhs)
For the year ended For the year ended
Particulars
March 31, 2017 March 31, 2016

Interest income from bank deposits 1.06 13.61

Miscellaneous income 0.23 46.24

Total 1.29 59.85

31 Operating expenses
(Rs. in lakhs)
For the year ended For the year ended
Particulars
March 31, 2017 March 31, 2016

Consumption of stores and spares 159.52 40.25

Manning management expenses 256.95 868.78
Power and fuel 507.33 403.67
Port charges 90.50 79.74
Wharfage charges 1,426.30 1,408.66
Berth hire charges 252.61 250.00
Insurance 27.12 28.73

Total 2720.33 3079.83

32 Employee benefits expense

(Rs. in lakhs)

For the year ended For the year ended

Particulars
March 31, 2017 March 31, 2016

Salaries, wages and bonus 212.41 219.51

Contribution to staff provident and other funds (refer note no 44) 20.63 13.81
Staff welfare expenses 11.73 36.78

Total 244.77 270.10

Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

33 Other expenses
(Rs. in lakhs)
For the year ended For the year ended
Particulars
March 31, 2017 March 31, 2016

Auditors' remuneration (refer note below) 12.00 8.77

Rent 7.20 74.01
Rates and taxes 1.92 18.44
Legal and professional fees 207.89 904.20
Travelling and conveyance 29.72 71.73
Vehicle hire and maintenance charges 27.88 24.41
Corporate social expenses (refer note no. 37) 19.71 75.66
Political contribution* 177.00 -
Expected credit loss provision 22.61 689.05
Write off of receivable 2,023.94 -
Others 22.03 23.57

Total 2551.90 1,889.84

* Contribution made to Satya Electoral Trust

For the year ended For the year ended

Payments to the statutory auditors comprise (net of service tax):
March 31, 2017 March 31, 2016

As auditor 7.00 8.65

For other services 5.00 0.12
Total 12.00 8.77

34 Finance costs
(Rs. in lakhs)
For the year ended For the year ended
Particulars
March 31, 2017 March 31, 2016

Interest expense on:

- Bank loans 3,656.29 3,966.93
- Loans from others 1,497.15 1,888.70
- Loan from related parties (refer note no. 45) 2,345.27 1,754.90
Other finance costs 347.32 202.77
Total 7,846.03 7,813.30
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements
35 Leases

i) Operating lease

The Company as lessee

The Company had entered into a non-cancellable operating lease agreement for office premises for a period of 5 years from 1 October, 2012 with monthly lease rental of Rs. 2.36 Lakhs which has been
terminated mutually by both the parties with effect from 16 April, 2015. The minimum lease payment recognised in the statement of profit & loss for the year Rs. Nil (previous year Rs. 1.18 Lakhs)

Non-cancellable operating lease commitments

(Rs. in lakhs)
As at As at As at
Particulars March 31, March 31, 2016 April 01, 2015
2017

Payable not later than 1 year - - 28.27

Payable later than 1 year and not later than 5 years - - 42.41

Total - - 70.68

36 Financial instruments and risk management

1 Capital management
The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity
balance.

The capital structure of the Company consists of net debt (non-current borrowings, current borrowings, current maturities of long term borrowings as detailed in notes 21, 24 and 26, respectively, offset
by cash and bank balances) and total equity. The Company is not subject to any externally imposed capital requirements. The Company’s board of directors reviews the capital structure on an annual
basis. The financial tie up for the company are long term in nature as it is in infrastructure business. Therefore all new capital requirements are duly discussed by the board of directors. The Company
monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes borrowings less cash and cash equivalents and other bank balances.
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements
1.1 Gearing ratio
The gearing ratio at the end of the reporting period was as follows.
(Rs in lakhs)
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015

Debt (i) 41,395.19 48,665.16 41,986.98

Less: Cash and cash equivalents (refer note 15) (79.59) (67.50) (122.94)
Less: Bank balance other than cash and cash equivalents (refer note 16) (13.67) (12.62) (311.68)

Net debt 41,301.93 48,585.04 41,552.36

Total equity (equity and other equity) 16,464.54 18,811.54 19,005.23
Net debt to equity ratio 2.51 2.58 2.19

2 Categories of financial instruments (Rs in lakhs)

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015
Carrying amount Fair values Carrying Fair values Carrying Fair values
amount amount

Financial assets
Measured at amortised cost
Other financial assets 619.65 619.65 977.18 977.18 566.59 566.59
Trade receivables 29,191.32 29,191.32 28,931.26 28,931.26 21,007.15 21,007.15
Cash and cash equivalents 79.59 79.59 67.50 67.50 122.94 122.94
Bank balances other than above cash and cash equivalents 13.67 13.67 12.62 12.62 311.68 311.68
Total financial assets carried at amortised cost (A) 29,904.23 29,904.23 29,988.56 29,988.56 22,008.36 22,008.36

Measured at cost (B)

Investment in subsidiary 5.00 5.00 5.00 5.00 - -

Total financial assets (A+B) 29,909.23 29,909.23 29,993.56 29,993.56 22,008.36 22,008.36

Financial liabilities
Measured at amortised cost
Long-term borrowings # 35,495.19 35,495.19 42,765.16 42,765.16 36,136.98 36,136.98
Short-term borrowings 5,900.00 5,900.00 5,900.00 5,900.00 5,850.00 5,850.00
Other financial liabilities 16,706.27 16,706.27 8,599.02 8,599.02 8,167.95 8,167.95
Trade payables 1,973.69 1,973.69 1,377.70 1,377.70 1,484.12 1,484.12
Financial liabilities measured at amortised cost 60,075.15 60,075.15 58,641.88 58,641.88 51,639.05 51,639.05
# including current maturities of long-term borrowings
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

3 Financial risk management objectives

The Company’s Corporate finance department monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyse the exposures by degree and
magnitude of risks. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.

The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identification and mapping controls against these risks, monitor the
risk and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and Company's activities to
provide reliable information to the management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company. The Company’s finance function
reports quarterly to the Company’s Board of Directors that monitors risks and policies implemented to mitigate risk exposures. The Board of Directors reviews and agrees policies for managing each of
these risks which are summarized below:

3.1 Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for both fixed and floating rate borrowings at the end of the reporting period. For floating rate liabilities, the
analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting
interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.
The following table provides a break-up of the Company’s fixed and floating rate borrowings and interest rate sensitivity analysis.
(Rs in lakhs)
As at March 31, 2017 As at March 31, 2016 As at April 01, 2015
Gross amount (Rs in Interest rate Gross Interest rate Gross amount Interest rate
Particulars lakhs) sensitivity amount sensitivity (Rs in lakhs) sensitivity
@0.50% (Rs in lakhs) @0.50% @0.50%
(Rs in lakhs) (Rs in lakhs) (Rs in lakhs)

Fixed Loan 23,681.75 NA 18,090.77 NA 2,389.85 NA

Variable Loan 29,015.00 145.08 33,822.66 169.11 36,508.98 182.54
Total 52,696.75 145.08 51,913.43 169.11 38,898.83 182.54
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements
3.2 Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Company's credit risk arises principally from the trade receivables, loans, cash and cash equivalents and other financial assets.

Trade receivables
Trade receivables consists of a single customer, Essar Steel India Limited (a related party). The operations of the customer are limited to single industry . The outstanding trade receivables are regularly
monitored and appropriate action is taken for collection of overdue trade receivables.

Cash and bank balances

The credit risk on liquid funds and other bank deposits is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Loans, Deposits and advances

The Company's corporate treasury function manages the financial risks related to the business. The treasury function focuses on capital protection, liquidity and yield maximisation.

Loans, Deposits and advances are extended to counterparties after assessing their financial capabilities. Counterparty credit limits are reviewed and approved by Board/Audit Committee of the Company.
These limits are set to minimise the concentration of risks and therefore mitigates the financial loss through counterparty's potential failure to make payments. Expected credit losses are provided based
on the credit risk of the counterparties.

Collateral held as security and other credit enhancements

The Company does not hold any collateral or other credit enhancements to cover its credit risk associated with its financial assets.

3.3 Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and
requiring financing. Ultimate responsibility for liquidity risk management rests with the board of directors. The Company manages liquidity risk by maintaining reserves and banking facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following tables detail the Company’s remaining contractual maturity for its financial liabilities with agreed repayment periods and its financial assets. The tables have been drawn up based on the
undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on the earliest date on
which the Company may be required to pay.
Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements
(Rs in lakhs)

Particulars As at March 31, 2017 As at March 31, 2016 As at April 01, 2015
< 1year 1-5 years > 5 years Total < 1year 1-5 years > 5 years Total < 1year 1-5 years > 5 years Total

Financial liabilities

Long-term borrowings 7,223.88 28,271.31 35,495.19 6,355.25 36,409.91 - 42,765.16 5,612.95 30,524.03 - 36,136.98
Short-term borrowings 5,900.00 - - 5,900.00 5,900.00 5,900.00 5,850.00 - - 5,850.00
Trade payables 1,973.69 - 1,973.69 1,377.70 - - 1,377.70 1,484.12 - - 1,484.12
Other financial liabilities 15,215.84 1,490.43 - 16,706.27 7,593.45 1,005.57 - 8,599.02 3,779.45 4,388.50 - 8,167.95
Total financial liabilities 30,313.41 29,761.74 - 60,075.15 21,226.40 37,415.48 - 58,641.88 16,726.52 34,912.53 - 51,639.05

Future interest obligations:-

As at March 31, 2017 As at March 31, 2016 As at April 01, 2015

Particulars < 1year 1-5 years > 5 years Total < 1year 1-5 years > 5 years Total < 1year 1-5 years > 5 years Total
Long Term Borrowings 3,406.81 4,747.27 - 8,154.08 4,122.22 8,035.38 - 12,157.60 4,585.75 10,814.07 447.45 15,847.27
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

37 The company has spent Rs. 19.71 lakhs (previous year Rs. 75.65 lakhs) towards scheme of Corporate Social Responsibility as prescribed under section 135 of the Companies
Act, 2013, as summarised hereunder

(Rs in lakhs)
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016

i) Education - 50.00
ii) Rural development 9.71 14.66
iii) Livelihood enhancement projects 10.00 11.00

Total 19.71 75.66

38 Contingent liabilities
(Rs in lakhs)
Particulars As on 31-03-2017 As on 31-03-2016
Cumulative dividend on CCCPPS (including dividend distribution tax) 8.19 6.68
Disputed claims in respect of Service tax 546.52 -

Total 554.71 6.68

39 Earnings per share

Particulars For the year ended For the year ended

March 31, 2017 March 31, 2016

Basic Earnings per share (in Rs.) (4,690.52) (397.89)

Diluted Earnings per share (in Rs.) (4,690.52) (397.89)

Earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share are as follows:

Particulars For the year ended For the year ended

March 31, 2017 March 31, 2016

Loss for the year attributable to owners of the Company (Rs in lakhs) (2,345.26) (198.95)

Weighted average number of equity shares (Nos) 50,000 50,000

Compulsorily convertible cumulative participating preference shares (Nos)* 12,99,50,000 12,99,50,000
Weighted average number of equity shares for basic & diluted EPS (Nos) 13,00,00,000 13,00,00,000
Basic earnings per share (in Rs.) (4,690.52) (397.89)
Diluted earnings per share (in Rs.) (4,690.52) (397.89)

* The compulsorily convertible cumulative participating preference shares are to be converted mandatorily; there is no cash settlement option either with the Company or
with the holder.
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

40 Segment information
Services from which reportable segments derive their revenues
The Company is in the business of providing services relating to port and terminal at Paradip, Odisha and regularly reviewed by Chief Operating Decision Maker for
assessment of Company’s performance and resources allocation.

Revenue from the operations of the Company is mainly from a customer (related party) located in India and all the non-current assets other than financial
instruments are also located in India.

41 The Company did not have any holdings or dealings in Specified bank notes or other denomination notes as defined in MCA notification G.S.R 308 (E) dated 30 March 2017
during the period from 08 November 2016 to 30 December 2016.

42 As on March 31, 2017, the Company's current liabilities exceeded its current assets by Rs. 21814.82 lakhs. Considering cash flows from additional borrowings and future
operations, for which no material uncertainty exists, the financial statements have been prepared on a going concern basis.
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

43 Income Taxes
The Company is subject to Indian income tax on a standalone basis. Entity is assessed to tax on taxable profits determined for each fiscal year
beginning on April 1 and ending on March 31. For each fiscal year, the entity profit or loss is subject to the higher of the regular income tax
payable or the Minimum Alternative Tax (“MAT”).

Provision for tax is determined based on book profits prepared under generally accepted accounting principles and adjusted for, inter alia, the
Company’s assessment of allowable expenditure (as applicable), including exceptional items, set off of tax losses and unabsorbed
deprecation. Statutory income tax is charged at 30% plus a Surcharge and Cess. MAT for the fiscal year 2016-17 is payable at 18.5% as
increased by Surcharge and Cess. MAT paid in excess of regular income tax payable during a year can be carried forward and set off against
regular income taxes payable within a period of fifteen years succeeding the fiscal year in which MAT credit arises.

a) Income taxes recognised in statement of profit and loss

(Rs in lakhs)
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016
(Rs in lakhs) (Rs in lakhs)
Recognised in statement of profit and loss

Current tax
In respect of the current year - 86.64
Deferred tax
In respect of the current year (1,231.80) (126.42)
Total (A) (1,231.80) (39.78)
Recognised in other comprehensive income
Deferred tax 0.60 (1.82)
Total (B) 0.60 (1.82)

Total (A + B) (1,231.20) (41.60)

A reconciliation of income tax expense applicable to accounting profit / (loss) before tax at the statutory income tax rate to recognise income
tax expense for the year indicated are as follows :
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016
(Rs in lakhs) (Rs in lakhs)
Income / (loss) before taxes (3,577.06) (238.73)

Enacted tax rate in India 34.61% 34.61%

Expected income tax (benefit) expense at statutory tax rate (1,238.02) (82.62)
Effect of:
Tax effect of non deductible expenses 6.23 36.78
Impact due to increase in statutory tax rate from 33.99% to 34.608% - 6.06

Income taxes recognised in the statement of income (1,231.79) (39.78)

Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

Deferred tax assets and liabilities

Deferred tax balances in relation to As at March 31, 2016 Recognised / reversed As at March 31, 2017
during the year
(Rs in lakhs) (Rs in lakhs) (Rs in lakhs)
Property, plant and equipment 5,704.65 932.32 6,636.97
Unabsorbed depreciation (1,670.42) (2,156.28) (3,826.70)
Allowance for doubtful debts (859.36) (7.84) (867.20)
MAT credit entitlement (refer note no. 23) (2,408.38) - (2,408.38)

Total deferred tax for the year 766.49 (1,231.80) (465.31)

Components of deferred tax assets and liabilities

Deferred tax balances in relation to As at April 01, 2015 Recognised / reversed As at March 31, 2016
during the year

(Rs in lakhs) (Rs in lakhs) (Rs in lakhs)

Property, plant and equipment 4,481.32 1,223.33 5,704.65
Unabsorbed depreciation (645.78) (1,024.64) (1,670.42)
Allowance for doubtful debts (620.90) (238.46) (859.36)
MAT credit entitlement (2,321.74) (86.64) (2,408.38)

Total deferred tax for the year 892.90 (126.41) 766.49

The Company expects to utilise the MAT within a period of 12 years

Management has recognised deferred tax assets on carry forward business loss / unabsorbed depreciation as there is convincing evidence
that sufficient taxable profit will be available against which the unused tax losses or unused tax credits can be utilised by the entity.
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

44 Employee benefits

Defined contribution plans

Company has recognised the following amounts in the Statement of Profit and Loss :
Rs. in lakhs
For the year For the year
Particulars ended ended
31 March 2017 31 March 2016

a) Employer’s contribution to provident fund 11.42 10.16

Total 11.42 10.16

The above amounts are included in contribution to staff provident and other funds (refer note no.32)

Defined benefit plans

A Gratuity: (funded)
The Company sponsors funded defined benefit plans for qualifying employees. The defined benefit plans are administered by Life Insurance Corporation
of India (LIC) and every year the required contribution amount is paid to LIC.

Under the Gratuity plan, the eligible employees are entitled to post-retirement benefit at the rate of 15 days salary for each year of service until the
retirement age of 58 with the payment ceiling of Rs 1,000,000. The vesting period for Gratuity as payable under The Payment of Gratuity Act is 5 years.

The plans in India typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk The present value of the defined benefit plan liability is calculated using a
discount rate determined by reference to market yields at the end of the
reporting period on government bond; if the return on plan asset is below this
rate, it will create a plan deficit. Currently the plan has a relatively balanced
Interest risk A decrease in the bond interest rate will increase the plan liability; however, this
will be partially offset by an increase in the return on the plan’s debt investments.

Longevity risk The present value of the defined benefit plan liability is calculated by reference to
the best estimate of the mortality of plan participants both during and after their
employment. An increase in the life expectancy of the plan participants will
increase the plan’s liability.
Salary risk The present value of the defined benefit plan liability is calculated by reference to
the future salaries of plan participants. As such, an increase in the salary of the
plan participants will increase the plan’s liability.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at March 31, 2017 by an
independent actuary. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured
using the projected unit credit method.

The principal assumptions used for the purposes of actuarial valuation were as follows:

Valuation as at
Particulars
March 31, 2017 March 31, 2016 April 01, 2015

Discount rate (p.a) 6.90% 7.70% 7.80%

Expected rate(s) of salary increase (p.a) 7.00% 9.00% 9.00%
Expected return on plan assets (p.a) 8.50% 8.50% 8.50%
Attrition rate (p.a) 10.00% 10.00% 10.00%

In assessing the Company's post retirement liabilities, the Company monitors mortality assumptions and uses up-to-date mortality tables, the base being
the Indian assured lives mortality (2006-08) ultimate.
Expected return on plan assets is based on expectation of the average long term rate of return expected on investments of the fund during the
estimated term of the obligations after considering several applicable factors such as the composition of plan assets, investment strategy, market
scenario, etc.
The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such
as supply and demand in the employment market.
The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the
obligations.
Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

Amount recognised in Statement of profit and loss in respect of these defined benefit plans are as follows:
(Rs in lakhs)
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016

Current service cost 2.12 3.56

Net interest expense 0.32 1.23
Expected Return on Plan Assets (1.13)
Component of defined benefit costs recognised in Statement of 2.44 3.66
Profit and Loss

Remeasurement of net defined benefit liability:

Actuarial gain on defined benefit obligation 1.74 (5.26)
Components of defined benefit costs recognised in other 1.74 (5.26)
comprehensive income

Total 4.18 (1.60)

The current service cost and net interest expense for the year are included in the 'Employee benefit expense' line item in the Statement of Profit and
Loss.
The remeasurement of the net defined benefit liability is included in other comprehensive income.

The amount included in balance sheet arising from the entity's obligation in respect of its defined benefit plans are as follows:
(Rs in lakhs)
As at As at As at
Particulars March 31, 2017 March 31, 2016 April 01, 2015

Present value of funded defined benefit obligation 23.28 20.48 17.07

Fair value of plan assets 15.50 15.87 12.28
Net liability/(asset) arising from defined benefit obligation 7.78 4.61 4.79

Movement in the present value of the defined benefit obligation are as follows:
(Rs in lakhs)
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016

Balance at the beginning of the year 20.48 17.07

Current service cost 2.12 3.56
Interest cost 1.48 1.23
Remeasurement (gains)/losses:
Actuarial (gains)/losses 1.64 (4.72)
Benefits paid (2.44) (2.65)
Acquisitions/ Transfer In / (Transfer out) - 5.99
Balance at the end of the year 23.28 20.48

Movement in the fair value of the plan assets are as follows:

(Rs in lakhs)
Particulars For the year ended For the year ended
March 31, 2017 March 31, 2016

Balance at the beginning of the year 15.87 12.28

Acquisition adjustment -
Interest income on plan assets 1.17
Remeasurement gain (loss):
Return on plan assets (excluding amounts included in net interest (0.10) 1.13
expense)
Contribution from the employer 1.00 4.57
Benefits paid (2.44) (2.65)
Actuarial Gain/(loss) 0.54
Balance at the end of the year 15.50 15.87

Composition of the plan assets:

Particulars As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015
Scheme of insurance - conventional products 100% 100% 100%

The fair value of the instruments are determined based on quoted market prices in active markets.

The actual return on plan assets for the year ended March 31, 2017 was Rs. 0.10 lakhs (for the year ended March 31, 2016: Rs. 0.64 lakhs).

(Rs in lakhs)
Particulars As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015
Estimate of amount of contribution in the immediate next year 2.39 2.20 1.17
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

Sensitivity analysis:
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The
sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the
reporting period, while holding all other assumptions constant.
(Rs in lakhs)
Particulars As at March 31, 2017 As at March 31, 2016
Increase Decrease Increase Decrease

Discount rate (0.5% movement) (0.72) 0.76 (0.67) 0.71

Future salary growth (0.5% movement) 0.42 (0.40) 0.40 (0.38)
Attrition rate (5% movement) 1.31 (1.98) 0.87 (1.37)

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change
in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Each year an Asset-Liability-Matching study is performed in which the consequences of the strategic investment policies are analyzed in terms of risk-

The weighted average duration of the benefit obligation at March 31, 2017 is 6 years (as at March 31, 2016: 6 years).

The expected benefits payments analysis of projected benefit obligation is as follows:

(Rs in lakhs)
Between 1 to 5
Particulars Less than a year years Over 5 years Total
As at March 31, 2017
Defined benefit obligation 2.97 12.36 14.95 30.29

As at March 31, 2016

Defined benefit obligation 2.19 11.50 14.72 28.41

As at April 01, 2015

Defined benefit obligation 1.17 10.60 17.65 29.42

B Compensated absences: (unfunded)

Under the Compensated absences plan, leave encashment is payable to all eligible employees on separation from the Company due to death,
retirement, superannuation or resignation. Leave balance as on December 31, 2015 to the extent not availed by the employees is available for
encashment on separation from the company upto a maximum of 120 days, at the rate of daily salary as at December 31, 2015.

Compensated Absences

As at March 31, As at March 31,

As at April 01, 2015
Particulars 2017 2016

Present value of unfunded obligation (Rs in lakhs) 8.75 8.79 13.95

Expense recognised in Statement of Profit and Loss (Rs in lakhs) 0.35 - 11.80
Discount rate (p.a) 6.90% 7.70% 2.58
Salary escalation rate (p.a) 9.00% 9.00% 7.80%
Attrition rate (p.a) 10.00% 9.00%
 ESSAR BULK TERMINAL PARADIP LIMITED
Notes forming part of the financial statements

45 Related party relationships, transactions and balances:

a. Name of the related parties and description of relationship

Sr. No. Nature of relationship Name of Related Parties

1 Holding Essar Global Fund Limited, Cayman Island, (ultimate holding company)
Essar Ports & Shipping HoldCo Limited, Mauritius (intermediate holding company)
Essar Ports & Terminals Limited (intermediate holding company)
Essar Ports Limited (intermediate holding company) (till 1st July 2016)
Hazira Cargo Terminals Limited (intermediate holding company)(from July 2, 2016)
Essar Bulk Terminal Limited (immediate holding company)
2 Subsidiary where there have been transactions Petro Tankages India Limited
3 Key management personnel U. Venkat Rao - Whole time Director
Mr. P.K. Srivastava - Director
Mr. Rajiv Agarwal - Director
Mr. K.K. Sinha - Director
Mr. B.S. Kumar - Director
Mr. V.G. Raghavan - Director
Ms. Jaskinder Shingwekar - Director
4 Fellow subsidiaries where there have been transactions Vadinar Oil Terminal Limited
Essar Bulk Terminal (Salaya) Limited
Essar Steel India Limited
Aegis Limited
Essar Projects (India) Limited
Vadinar Ports & Terminals Limited (amalgamated with Vadinar Oil Terminal Limited w.e.f. 2nd July 2016)
Essar Pellete marketing Limited
Vadinar Power Company Limited
Arkay Logistic Limited
Ibrox Aviation and Trading Private Limited
Essar Steel Jharkhand Limited
Essar Paradip Terminals Limited
ESSAR BULK TERMINAL PARADIP LIMITED
Notes forming part of the financial statements

b. Details of transactions with related parties during the year are as under:

Holding companies and subsidiary Fellow subsidiaries Key management personnel Total
Nature of transactions As at March 31, As at March 31, As at March 31, As at March 31, As at March 31, As at March 31, As at March 31, As at March 31,
2017 2016 2017 2016 2017 2016 2017 2016
Share application money received
Essar Ports Limited - 267.00 - - - - - 267.00
Essar Bulk Terminal Limited - - - - - - - -
Vadinar Ports & Terminals Limited - - - - - - - -
Total - 267.00 - - - - - 267.00

Refund of share application money

Essar Ports Limited - 267.00 - - - - - 267.00
Essar Bulk Terminal Limited - - - - - - - -
Vadinar Ports & Terminals Limited - - - - - - - -
Total - 267.00 - - - - - 267.00

Share application money converted into inter corporate deposits

Essar Bulk Terminal Limited - 3,896.00 - - - - - 3,896.00
Vadinar Ports & Terminals Limited - - - 492.50 - - - 492.50
Total - 3,896.00 - 492.50 - - - 4,388.50

Investment in a subsidiary
Petro Tankages India Limited - 5.00 - - - - - 5.00

Revenue from operations

Essar Steel India Limited - - 8,530.15 11,176.02 - - 8,530.15 11,176.02

Other operating income

Essar Steel India Limited - - 3,371.72 3,703.26 - - 3,371.72 3,703.26

Operating expenses - -
Essar Steel India Limited - - 507.33 403.67 - - 507.33 403.67
Essar Projects (India) Limited - - - - - - - -
Total - - 507.33 403.67 - - 507.33 403.67

Administrative, establishment and other expenses

Rent
Essar Ports Limited - 4.79 - - - - - 4.79

Professional fees
Essar Ports Limited - 195.16 - - - - - 195.16
Aegis Ltd - - 4.87 43.74 - - 4.87 43.74
Essar Projects (India) Limited - - - 5.00 - - - 5.00
Total - 195.16 4.87 48.74 - - 4.87 243.90

Remuneration
U. Venkat Rao - - - - 66.51 63.50 66.51 63.50
ESSAR BULK TERMINAL PARADIP LIMITED
Notes forming part of the financial statements

c. Transactions with related parties

Holding companies and subsidiary Fellow subsidiaries Key management personnel Total
Nature of transactions As at March 31, As at March 31, As at March 31, As at March 31, As at March 31, As at March 31, As at March 31, As at March 31,
2017 2016 2017 2016 2017 2016 2017 2016
Finance costs
Vadinar Ports & Terminals Limited - - 910.74 625.74 - - 910.74 625.74
Vadinar Oil Terminal Limited - - 631.98 556.31 - - 631.98 556.31
Essar Bulk Terminal Limited 707.61 563.24 - - - - 707.61 563.24
Essar Bulk Terminal (Salaya) Limited - - 21.22 9.61 - - 21.22 9.61
Essar Pellete marketing Limited 27.55 - 27.55 -
Vadinar Power Company Limited 46.17 - 46.17 -
Total 707.61 563.24 1,637.66 1,191.66 - - 2,345.27 1,754.90

Inter corporate deposits taken from related parties

Vadinar Ports & Terminals Limited - - 46.00 5,335.25 - - 46.00 5,335.25
Vadinar Oil Terminal Limited - - 83.00 3,742.75 - - 83.00 3,742.75
Essar Bulk Terminal Limited 2,430.00 1,004.00 - - - - 2,430.00 1,004.00
Essar Bulk Terminal Salaya Limited - - - 157.20 - - - 157.20
Essar Pellete marketing Limited 260.00 260.00 -
Vadinar Power Company Limited 700.00 700.00 -
Total 2,430.00 1,004.00 1,089.00 9,235.20 - - 3,519.00 10,239.20

Inter corporate deposits repaid related parties

Vadinar Ports & Terminals Limited - - 0.50 50.00 - - 0.50 50.00
Vadinar Oil Terminal Limited - - - 207.00 - - - 207.00
Essar Bulk Terminal Limited - 245.00 - - - - - 245.00
Total - 245.00 0.50 257.00 - - 0.50 502.00

Advance received
Essar Bulk Terminal Limited - 6.00 - - - - - 6.00

Reimbursement of expenses
Essar Steel India Limited - - 122.95 231.14 - - 122.95 231.14
Total - - 122.95 231.14 - - 122.95 231.14
 ESSAR BULK TERMINAL PARADIP LIMITED
Notes forming part of the financial statements

d. Balances with related parties at the year end:

Holding companies Fellow subsidiaries Key management personnel Total

Nature of balances As at March As at March As at April As at March As at March As at April As at March As at March As at April As at March As at March As at April
31, 2017 31, 2016 1, 2015 31, 2017 31, 2016 1, 2015 31, 2017 31, 2016 1, 2015 31, 2017 31, 2016 1, 2015
Share application money pending allotment
Essar Bulk Terminal Limited - - 3,896.00 - - - - - - - - 3,896.00
Vadinar Ports & Terminals Limited - - - - - 492.50 - - - - - 492.50
Total - - 3,896.00 - - 492.50 - - - - - 4,388.50

Inter corporate deposits from related parties

Vadinar Ports & Terminals Limited - - - - 6,852.72 1,071.29 - - - - 6,852.72 1,071.29
Vadinar Oil Terminal Limited* - - - - 4,735.76 1,200.00 - - - - 4,735.76 1,200.00
Essar Bulk Terminal Limited 7,085.00 4,655.00 - - - - - - - 7,085.00 4,655.00 -
Essar Bulk Terminal (Salaya) Limited - - - 157.20 157.20 - - - - 157.20 157.20 -
Essar Pellete marketing Limited - - - 260.00 - - - - - 260.00 - -
Essar Jharkhand Steel Limited - - - 700.00 - - - - - 700.00 - -
Ibrox Aviation and Trading Private Limited* - - - 11,721.13 - - - - - 11,721.13 - -
Total 7,085.00 4,655.00 - 12,838.33 11,745.68 2,271.29 - - - 19,923.33 16,400.68 2,271.29

Interest accrued but not due on Inter corporate deposits from

related parties
Vadinar Ports & Terminals Limited - - - - 641.26 118.17 - - - - 641.26 118.17
Vadinar Oil Terminal Limited* - - - - 533.26 0.39 - - - - 533.26 0.39
Essar Bulk Terminal Limited 1,140.84 506.91 - - - - - - - 1,140.84 506.91 -
Essar Bulk Terminal (Salaya) Limited - - - 27.75 8.65 - - - - 27.75 8.65 -
Essar Pellete marketing Limited - - - 24.79 - - - - - 24.79 - -
Essar Steel Jharkhand Limited# - - - 41.55 - - - - - 41.55 - -
Ibrox Aviation and Trading Private Limited* - - - 2,523.50 - - - - - 2,523.50 - -
Total 1,140.84 506.91 - 2,617.59 1,183.17 118.56 - - - 3,758.43 1,690.08 118.56

Investment in a Subsidiary
Petro Tankages India Limited 5.00 5.00 - - - - - - - 5.00 5.00 -

Payable for capital expenses

Essar Projects (India) Limited - - - 23.86 26.03 1,726.03 - - - 23.86 26.03 1,726.03

Trade payables
Essar Ports Limited 597.59 157.11 198.41 - - - - - - 597.59 157.11 198.41
Aegis Limited - - - 11.29 14.14 72.69 - - - 11.29 14.14 72.69
Essar Projects (India) Limited - - - 12.28 10.12 - - - - 12.28 10.12 -
Essar Bulk Terminal Limited 6.00 6.00 - - - - - - - 6.00 6.00 -
Arkay Logistic Limited - - 220.00 - - - 220.00 - -
Total 603.59 163.11 198.41 243.57 24.26 72.69 - - - 847.16 187.37 271.10

Trade receivable
Essar Steel India Limited - - - 31,729.70 31,447.02 22,833.86 - - - 31,729.70 31,447.02 22,833.86

Other receivables
Essar Pradip Terminals Limited - - - 2.00 - - - - - 2.00 - -

Security deposit given

Essar Steel India Limited - - - 421.80 421.80 421.80 - - - 421.80 421.80 421.80

Guarantee received
Essar Ports Limited 54,500.00 54,500.00 54,500.00 - - - - - - 54,500.00 54,500.00 54,500.00

* Vadinar Oil Terminal Limited has assigned the inter corporate deposits outstanding as on March 31, 2017 of Rs.14,244.63 lakhs (including interest of Rs. 2,523.50 lakhs) to Ibrox Aviation and Trading Private Limited.

# Vadinar Power Company Limited has assigned the inter corporate deposits outstanding as on March 31, 2017 of Rs. 741.55 lakhs (including interest of Rs. 41.55 lakhs) to Essar Steel Jharkhand Limited.
 ESSAR BULK TERMINAL PARADIP LIMITED
Notes forming part of the financial statements

46 Disclosure made under Ind AS 101- first time Ind AS adoption of Ind AS

These financial statements, for the year ended 31 March 2017, are the first financial statement the Company has prepared in accordance with Ind
AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting
standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014
(Previous GAAP or IGAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together
with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In
preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2015, the Company’s date of transition to
Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP financial statements, including the
balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016.

Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from IGAAP to Ind AS:

1. Ind AS optional exemptions

a. Business Combination
Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This
provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations
occurring prior to the transition date have not been restated.

b. Investment in subsidiary, joint venture or associate

Ind AS 101 allows a first-time adopter to record the carrying value of investment in subsidiary, joint venture or associate as per IGAAP or fair value
of investment in subsidiary, joint venture or associate at transition date as deemed cost under Ind AS.

Accordingly, the Company has elected to carry its investment subsidiary, joint venture or associate at IGAAP carrying value on transition date.

c. Deemed Cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the
financial statements as at the date of transition to Ind AS, measured as per the IGAAP and use that as its deemed cost as at the date of transition
after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38
Intangible Assets and investment property covered by Ind AS 40 Investment Properties.

Accordingly, the company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their GAAP
carrying value.

d. Arrangement containing a lease

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this
assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and
assessed all arrangements based for embedded leases based on conditions in place as at the date of transition.

e. Compound financial instruments

When the liability component of a compound financial instrument is no longer outstanding at the date of transition to Ind AS, a first-time adopter
may elect not to apply Ind AS 32 retrospectively to split the liability and equity components of the instrument. The Company has used this
exemption for convertible instruments issued by the Company.

f. Unquoted equity instruments

The Company has designated unquoted equity instruments held at 1 April 2015 as fair value through OCI investments.
2. Ind AS mandatory exceptions

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), unless there is objective evidence that those
estimates were in error.
Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with Previous GAAP, except the
following items where application of Previous GAAP did not require estimation.
• FVTOCI - Unquoted equity shares
• Impairment of financial assets based on expected credit loss model
Ind AS 101 requires an entity to reconcile equity and total comprehensive income for prior periods. The following tables represent the
reconciliations from IGAAP to Ind AS.

Reconciliation of total equity as at March 31,2016 and April 01, 2015

(Rs in lakhs)
Particulars Notes As at March 31, As at April 01,
2016 2015
Total equity (shareholders' funds) under previous GAAP 20,467.90 24,630.17
Impact on account of Ind AS adjustments
Provisions recognised for expected credit losses under Ind AS b (2,515.73) (1,826.71)
Recognition of deferred taxes using the balance sheet approach under Ind AS a 859.36 620.90
Adjustment of unamortised share issue expenses f (30.63)
Regrouping of share application money pending allotment g (4,388.50)
Total 18,811.53 19,005.23
1,963.00 -
Reconciliation of total comprehensive income for the year ended March 31, 2016
(Rs in lakhs)
Particulars Notes For the year
ended March 31,
2016
Profit for the period (as per Indian GAAP) 226.23

Ind-AS adjustments
Benefit/(Charge):
Recognition of expected credit losses b (689.03)
Actuarial gain/loss on employee benefits classified to OCI c (5.26)
Deferred tax on Ind-AS adjustment a 238.47
Amortisation of share issue expenses f 30.63
Others
Net Profit for the period (as per Ind-AS) (198.96)

Other Comprehensive Income (OCI) (after tax)

Actuarial gain/loss on employee benefits classified to OCI c 5.26
Deferred tax on OCI adjustment a (1.82)

Total Comprehensive Income for the period (as per Ind-AS) (195.52)

Note: Under previous GAAP, total comprehensive income was not reported. Therefore, the above reconciliation starts with profit under the
previous GAAP.
Effect of Ind As adoption on the statement of cash flows for the year ended March 31, 2016
(Rs in lakhs)
For the year ended M arch 31, 2016
Effect of
Particulars Previous transition to
Ind AS
GAAP Ind AS (refer
note j )

Net cash flows from operating activities 313.45 - 313.45

Net cash flows from investing activities (1,385.78) - (1,385.78)
Net cash flows from financing activities 1,016.89 - 1,016.89
Net increase (decrease) in cash and cash equivalents (55.44) - (55.44)
Cash and cash equivalents at the beginning of the period 122.94 - 122.94
Cash and cash equivalents at the end of the period 67.50 - 67.50
 Essar Bulk Terminal Paradip Limited
Notes forming part of the financial statements

47 Notes to the reconciliation

a Deferred Tax
Under previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profits and accounting profits
for the period. Under Ind AS deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or
liability in the balance sheet and its tax base. In addition, various transitional adjustments has also led to recognition of deferred taxes on new temporary differences.

b Allowance for expected credit loss on financial assets

Under Ind AS, the Company is required to apply expected credit loss model for recognising the allowances for expected credit losses on financial assets. Accordingly,
the Company has calculated and recognized such credit loss allowances which has resulted in an increase in loss and decrease in equity. Under IGAAP, such credit losses
were provided based on incurred model.

c Defined benefit liabilities

Under Ind AS, remeasurement i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined
liability, are recognised in other comprehensive income instead of Statement of Profit and Loss in previous GAAP.

d Reclassification
To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of
Schedule III to the Companies Act, 2013.

e Other comprehensive income

Under Ind AS, all items of income and expense recognized in the period should be included in profit or loss for the period, unless a standard requires or permits
otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the Statement of Profit and Loss and “Other comprehensive income”
includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

f Share issue Expenses

To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of
Schedule III to the Companies Act, 2013.
g Share aplication money
This has been classified under financial liabilities as per requirement of Ind As 32

In terms of our report attached For and on behalf of the Board of Directors
For MSKA & Associates (Formerly known as MZSK & Associates)
Chartered Accountants
U. Venkat Rao Rajiv Agarwal
Whole time Director Director
Anita Somani DIN:05112625 DIN:02666332
Partner
Mumbai, ____ November 2017
Prasanta Behera
Chief Financial Officer Company Secretary

Mumbai, 15 November 2017