1 BACKGROUND / CORPORATE INFORMATION

Nicco Parks & Resorts Limited (“the Company”) is a listed entity incorporated in India in i99i having its Registered Office at “Jheel Meel”, Sector V, Saltlake City, Kolkata -700106. The Company is associated with the only wholesome family entertainment cum amusement destination in East India. The company is engaged in the business and operations of theme based entertainment including theme park, water park and associated activities including retail merchandising and food and beverages

1 BASIS OF ACCOUNTING

1.1 Statement of Compliance

The financial statement are prepared in accordance with Indian Accounting Standards (“IND- AS”) as prescribed under Section i33 of the Companies Act, 20i3 (“the Act”), as notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by Companies (Indian Accounting Standard ) Amendment Rules, 2016 and other accounting principles generally accepted in India.

The financial Statements for all periods up to and including the year ended 3i March 2017, were prepared in accordance with the accounting standards notified under Section i33 of the Companies Act 20i3, read with Rule 7 of The Companies (Accounts) Rules, 20i4, the Companies Act, 20i3 and in accordance with the Generally Accounting Principal in India.

These financial statements for the year ended 3i March 2018 are the first the Company has prepared in accordance with Indian Accounting Standards (“Ind-AS”). Further, in accordance with the Rules, the Company has restated its Balance Sheet as at ist April 2016 also as per Ind-AS. For preparation of opening balance sheet under Ind-AS as at April i, 2016, the Company has availed exemptions and first time adoption policies in accordance with Ind-AS 10i “First-time Adoption of Indian Accounting Standards”, the details of which have been explained thereof in Note 49 to the financial statements.

The financial statements for the year ended 31st March, 2018 has been approved by the company’s Board of Director’s at their meeting held on 17th May, 2018.

2.2 Basis of Measurement

The financial statements have been prepared on historical cost convention on accrual basis except for following assets and liabilities which have been measured at fair value or revalued amount:

(i) Financial assets and liabilities that is measured at Fair value/ Amortised cost;

(ii) Plan assets under defined benefit plans - Measured at fair value.

2.3 Functional and Presentation Currency

The Financial Statements have been presented in Indian Rupees (INR), which is also the Company’s functional currency. All financial information presented in INR has been rounded off to the nearest lakhs as per the requirements of Schedule III, unless otherwise stated.

2.4 Use of Estimates and Judgements

The preparation of financial statements require judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period prospectively in which the results are known/ materialized.

2.5 Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 20i3 and Ind AS i “Presentation of Financial Statements”. The Company has ascertained its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities.

3 Operating Segment

(Refer Note 40 to Annual Accounts)

a) An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components, and for which discrete financial information is available. All operating segments’ operating results are reviewed regularly by the Board of Directors as the Company’s Chief Operating Decision Maker (CODM) to make decisions about resources to be allocated to the segments and assess their performance. The Company runs a Theme and Amusement park rendering services in the nature of education and cultural recreation facilities mainly by way of sale of Entry and Ride tickets, taken together considered as “Park Operations”. The Company also has income from consultancy contracts, technical know-how fees,sale of ride components, venues and food & beverages. Indirect costs are allocated to park operations only as such amount to be attributed to the other segments are not readily available. There are no Inter-Segment Revenues during the year.

Reconciliation of Reportable Segments with the Financial Statements

* Excluding Total Equity

b) The Company operates predominantly within the geographical limits of India. Accordingly, Secondary Segment has not been considered.

4 First Time Adoption

(Refer Note 49 to Annual Accounts)

These financial statements, for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with generally accepted accounting principles in India (Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on or after 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening statement of financial position was prepared as at 1 April 2016, 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 as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

Exceptions and Exemptions Applied

IND AS 101 “First-time adoption of Indian Accounting Standards” (hereinafter referred to as Ind AS 101) allows first time adopters certain mandatory exceptions and optional exemptions from the retrospective application of certain IND AS, effective for 1st April, 2016 opening balance sheet. In preparing these Standalone financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

I. Applicable Mandatory Exceptions

(i) Estimates

As per para 14 of Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

(ii) Classification and measurement of financial assets

Para B8 - B8C of Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

II. Optional Exemptions Availed

(i) Property Plant and Equipment and Intangible Assets

As permitted by para D5-D8B of Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of intangible assets.

(ii) Determining whether an arrangement contains a Lease

Para D9-D9AA of Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind AS 17 “Leases” for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement). The Company has applied the above transitional provision and has assessed all the arrangements at the date of transition.

(iii) Investments in Associates

As permitted by para D14 & D15 of Ind AS 101, the Company has elected to measure the investments in equity shares of associates at Deemed Cost calculated at the previous GAAP carrying amount as on the date of transition, as the company has elected to measure such investments at Cost under Ind AS 27 “Separate Financial Statements.

5 Transition to IND AS - Reconciliations

(Refer Note 50 to Annual Accounts)

5(i) Reconciliation of Balance Sheet as on March 31, 2017 and April 1, 2016

5 (ii) Reconciliation of Total Equity as at April 1, 2016 and March 31, 2017

5 (iii) Reconciliation of Profit and Loss Account and total comprehensive income for the year ended March 31, 2017.

5 (iv) Reconciliation on Effect of Ind AS adoption on the Statement of Cash Flow for the year ended March 31,2017 .

I) Long term borrowings

Under IGAAP, the Company accounted for long term borrowings measured at transaction value. Under Ind AS, the Company has recognised the long term borrowings at amortised cost using effective interest rate (EIR).

II) Financial Instruments

(a) Equity investments measured at FVOCI

Under IGAAP, investments in long term equity instruments were carried at cost less provision for other than temporary decline in the value of such investments. Under IND AS, the same has been accounted as Fair value through Other Comprehensive income.

(b) Investment in Mutual Funds measured at FVTPL

Under IGAAP, current investments were carried at lower of cost or net realisable value. Under IND AS, the same has been measured at fair value through Profit and Loss

(c ) Security Deposit

Under IGAAP, Security deposit received from licensee were accounted at their carrying value. Under IND AS, the Company has initially recognised security deposit at fair value and subsequently at amortised cost as per IND AS 109.

III) Dividend

Under IGAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid. Therefore liability recorded for Proposed dividend including DDT has been derecognised against retained earnings as at 0i.04.2016

IV) Deferred Revenue

Under IGAAP, grants received from government agencies against Property, Plant and Equipment was accounted as “Capital Reserve” under Reserve and Surplus. Under IND AS, the same has been presented as deferred revenue grant under Other liabilities and is being amortised in the statement of profit & loss on a systematic basis.

V) Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS i2 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

VI) Leases

Under IGAAP, the Company had capitalised site development expenses as leasehold land under Property, Plant and Equipment and the same was being amortised over the lease period of 33 years from 2nd March, i990. Under INDAS, the lease has been classified as operating lease as per IND AS-17, and the balance amount as on transition date has been reclassified as Prepaid Lease rentals which shall be subsequently charged to the Statement of Profit and loss over the remaining lease period

VII) Re-classifications

a) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

b) Remeasurement gain/loss on long term employee defined benefit plans are re-classified from statement of profit and loss to OCI.

6. Previous GAAP figures have been reclassified / regrouped to conform to the presentation requirements under IND AS and the requirements laid down in Schedule-III (Division -II) of the Companies Act, 2013. (Refer Note 51 to Annual Accounts).