ROYAL ENFIELD NORTH AMERICA LIMITED [ALL AMOUNTS ARE IN USD UNLESS OTHERWISE STATED In terms of our report attached For SR. Batibo & Co. UP Chartered Accountants FAW: 302003E/E300005 per Soniay Vi "Membership No: 035268 Pace: Gursgram Date: May 08,2018 Forand on Baha of Board of Directors tat Matic Director Royal Enfield North America Limited lace: Gurvgram Date: May 09, 2018 bartictars Note No, neat Aeat March 31,2018 March 31,2017 Jassers ion-curentassts (a) Property plant and equipment 3 3912 sa371 (Chintange assets ‘ 236 2968 (6 Investmentin subsiciany 5 13,280 13,280 (9) Othernomcurent assets 6 i 35 rota Hom current assets 453978 332.708 current assets {2} leventories 7 231,480 3299232 (6) Financial assets (i) Trade recovabies 8 2370281 569412 {i Cash and cash equivalents 8 134,850 234081 [hip tans 20 15,352 - is) Othe franca assets u 3550, 7502 (0 other curren assets 6 1.54,707 73497 [otal current assets 729,70,000, a9. [Tovar asset DE Same JEQUTY AND UABILES leuony (0) Equty shore capital, 2 522,601 272601 (by other equity B (2.105.400 (36.15.69) [rota Equity (57,62,883] (25 73,095) luscusmes hon-current UsbiRies (2) Financial tabites (i) Other inanciat abies “ 375,08 otal won-current abies 375.188 Jcurcene ibities (a) Financial abies (i Borrowings 8 65,00,000, 6850000 (iy Trade payee 6 435,108, 235,497 (i) Other inci nities “ 828,496 220026 (6) Other current ables ” 8007 otal Currant tabities we1,697 Tass [Total nbttes Dea Tass [rota Eau and bes BE Brae [bee accompanying notes forming part of the franea/aatemente TeaROYAL ENFIELD NORTH AMERICA LIMITED [STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018 [ALL AMOUNTS ARE IN USD UNLESS OTHERWISE STATED Franicuare Tmanena) For the Year endeal For the Year ended] March 33, 201 March 31, 2017] fncome Revenue from operations 18 30,58,602 2338735 ther ince 3 1,647 35,250 |rotalncome 6.209 2.985 exoenses Purchases of traded goods 2 1943,368 sm4602 (increase}/decreasein inventories of waded goods 2 9:38353 0282378] Employee benefit expenses 2 30.83,162 7226134 Finance costs 2 2.81913 1361s Depreciation and amortisation expense 2 138240 ‘5,903 (ther expenses 25 2148765, 35153.050 [otal expenses 135.0597 503,616 oes before tx (53,89,748] (2507433 [ax expense Current tax 26 “ Deferred tax 26 = 52810 rota tax expense = 6.82.80 toss forthe year (55,89,748] («250240 lother comprehensive income: - - [rool comprehensive income forthe year, net of tax (53,89,743] (4290223) earning per share (a) Base 23 (53.0) (@2s0) (o)biutes 22 (s3.90] (a2s0) (Wo Face valu of shares defined as such) See accompanying notes forming part of the fanll eatements Toe In terms of our eepor attached ForS.R. Batibo! & Co. UP CCharered Accountants FR : 3010036/£300005 per Sanjay i Partner "Membership No: 085169 Place: Gurugram Date: May 08,2018 For and on Behalf of Board of Directors Late mali Royal Enfield North America ited Pace: Gurugram Date: May 09, 2038ROYAL ENFIELD NORTH AMERICA LIMITED [STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31,2018, [ALL AMOUNTS ARE IN USD UNLESS OTHERWISE STATED ‘Equity share cai areata (Number of shares ‘mont islance at March 3, 2007 7400,000| 2a [changes in uly share capital during the year 25,00,000 [Balance at March 3, 2038 400,000 52.42.01] bother Equlty Particulars Retained earnings iaslance at March 33,2017 (555 595) lossforthe year (53.29 748) [naance ot March 3, 2018 (3.1005 44a In terms of our report attached For Balbo! & Co, LP For and on Baha of Board of Directors Chartered Accountants Ra: 301003e/300005 per Sanjay Vi Lae Met Partner Director Membership No: 085169 Royal field North Ameries Limited Place: Gurgrarn Date: May 09, 2018 Date: May 09,2018Men [ALLAMOUNTS AREIN USD UNLESS OTHERWISE STATED Fenca Tortie Year ended Farha Yer eh March 3.201 Mach 33, 205 ose forthe year (sxa57a] ezon2eal ‘Adhstment fo: Depraiton and ametsation expenses sas20| 5.08 | Gain on disposal of propery pant and equipment ss] 2 Find set carded a0 Deter tox charge/oene) xz intrest expence zeus axes ‘Operating profits) before changes in working capital Toon aes) Changes in workin capt ‘Adjustment fr increase decease In current assets Inverts gsr7se 296. Trae recehabes 2a ates tans (essa ther oan assets 13852 fasscal Other assets suo] (eo ‘Adjusumens fr inceas/{Serease In noncurtent fabs: Other franc abies 75a Aejuctment for increace/(decreae) in carrentals ‘ade pyabies| 79608 eaaaors (Other franca abies 50873 oasis apie ‘007 20.86] Net cash flow rom operating activites (8) waz] Tarim] Payments for Property, plant and equipment | nung Capt Advances) esi730] ezasra Proceeds rom disposal of property tant and equipment 75 a8 Inveriment in share opt of sbisary company 03280] Net ea flow rom investing activities (8) Basa Taos] Inerest pad exon] (ore Proceeds rom shor tem borowings 50.000] 859.000 Proceeds rom sve of eau shae cata 25.00.00 ‘3000 Net ash ow fom fnancing aes (C) aca TEE Net Increase crete) in cash ad cash equivalent (A) +(8)+(C) (eos 20918] Coshand ash equnlens athe beginning of he year 2sqoe8 eansss ‘ash and cash equivalents atthe end ofthe year aso ea March 34,2018 aren 3, 2017 Jcomponents of ath and cash equivalents ssh on hand 165] mm nce with berks: Incorren aceunts as3,s| zaxzss| ott cath and each eqtvalerts par alance sheet refer rate) 130] 23108 sce acompanving note forming part ofthe nancial statements a037 sn tes of out report attached Fors Batibo 8 co, UP Charter Accountants RN: 2020037300005 per Saniy i Date: May 05,2018, Forandon Behalf of oar of Directors att a Royal Enfield North Americ UnitesUe Royal Enfield North America Limited Notes forming part of financial statements All amounts are in USD unless otherwise stated 1. Corporate Information RENA was incorporated on March 23, 2015 as Wisconsin Stock For Profit Corporation under chapter 180 of the Wisconsin Statutes. The Company is into trading of two wheelers, spares and accessories in the United States of America. ‘The accompanying financial statements have been prepared for providing audited financial statements of the company for the year ended 31° March, 2018 to the AD Category I Banks in terms of Notification No. FEMA 120/RB-2004 dated July 7, 2004 and for enabling Eicher Motors Limited, Holding Company, to prepare its consolidated financial statements. 2. Significant Accounting Policies 2.1 Basis of Preparation The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015, ‘The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. The financial statements are presented in USD. 2.2 Summary of Significant Accounting Poli a. Revenue Recognition is reduced Revenue is measured at the fair value of the consideration received or receivable. Revenu for rebates and other Sale of goods Revenue from the sale of goods is recognised when the goods are dispatched and titles have passed, at which time all the following conditions are satisfied: + the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; + the amount of revenue can be measured reliably: the transaction will flow to the Company; + it is probable that the economic benefits associated and + the costs incurred or to be incurred in respect of the transaction can be measured reliably, b. Leasing Rental expense from operating leases is generally recognised on a straight line basis over the term of relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increase, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.he Royal Enfield North America Limited Notes forming part of financial statements All amounts are in USD unless otherwise stated ¢. Foreign currencies In preparing the financial statements of the Company transactions in currencies other than the Company's functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date ‘when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated Exchange differences on monetary items are recognised in profit or loss in the period in which they arise. 4d. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. ¢. Employee benefits Employee benefits include social security and medicare contribution, All employee benefits payable/available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages, short-term compensated absences and bonus etc., are recognised in the Statement of Profit and Loss in the period in which the employee renders the related service. f. Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax The tax currently payable is based on taxable profit for the year. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period: Deferred tax Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax is recognised, subject to the consideration of prudence on timing differences, being the Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.Royal Enfield North America Limited Notes forming part of financial statements All amounts are in USD unless otherwise stated Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. g. Property, plant and equipment Property, ‘plant and equipment and Furniture are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives, using the straight-line method, The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes, in estimate accounted for on a prospective basis. mated useful lives of the assets are as follows: Asset Useful life Leasehold improvements 5 years Equipment and Electrical Fittings 5 years Office Equipment Syears Computers-End user devices 3 years Fumiture & fixtures - 5 years Vehicles 5 years ‘An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss. hh Intangible assets Intangible assets acquired separately Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. Estimated useful lives of intangible assets Intangible assets, comprising of software, are amortised on a straight line method over a period of 3 years. i. Inventories Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a moving weighted average. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. i. Provisions Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.Royal Enfield North America Limited Notes forming part of financial statements All amounts are in USD unless otherwise stated The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting, period, taking into account the risks and uncertainties surrounding the obligation. When a provision is. measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). k, Financial instruments Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments. Initial Recognition and Measurement Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss. Financial assets All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets. Impairment of financial assets ‘The Company applies the expected credit loss model for recognising impairment loss on financial assets. Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights, Derecognition of financial assets The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. Financial liabilities and equity instruments Classification as debt or equity Debt and equity instruments issued by Company are classified as either financial liabil equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity i An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognised at the proceeds received, net of direct issue costs. trumentsRoyal Enfield North America Limited Notes forming part of financial statements All amounts are in USD unless otherwise stated Financial liabilities Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the "Finance costs’ Line item. All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL. De recognition of financial liabilities The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or have expired. 1. Cash and cash equivalents In the Statement of cash flow, cash and cash equivalents include cash in hand and demand deposits with banks. m, Current and non-current classification Alll assets and liabilities are classified into current and non-current. Assets An asset is classified as current when it satisfies any of the following criteria: a. it is expected to be realised in, or is intended for sale or consumption in, the company’s normal operating cycle; b. it is held primarily for the purpose of being traded: «. it is expected to be realised within 12 months after the reporting date; or 4. itis cash or cash equivalent unless itis restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current portion of non-current financial assets. All other assets are classified as non-current, Liabilities A liability is classified as current when it satisfies any of the following criteria: a. it is expected to be settled in the company's normal operating cycle; b. it is held primarily for the purpose of being traded; ¢. it is due to be settled within 12 months after the reporting date; or d. the company does not have an unconditional right to defer settlement of the liability for at least 12 ‘months after the reporting date. Current liabilities include the current portion of non-current financial liabilities. All other liabi are classified as non-current.ROYAL ENFIELD NORTH AMERICA UMITED [NOTES FORWAING PART OF THE FINANCIAL STATEMENTS [ALLAMOUNTS AREIN USD UNLESS OTHERWISE STATED 3. Property, plant and equipment Particulars cost [At 31 March 2017 Adaitions Disposals [At 31 March 2018 ‘as 31 March 2017 Charge forthe year Disposals ‘At31 March 2018, Net book Value ‘At 31 March 2017, ‘at 31 March 2018 4. Intangible Assets: cost ‘A831 March 2017 Additions Disposals ‘At 31 March 2018 ‘Accumulated amortisation ‘At 34 March 2017 Charge forthe year Disposals ‘at 1 March 2018 Netbook Value ‘kv 31 March 2017 ‘At 31 March 2018 essehold Tools and electrical Furniture and Improvements ‘tings fistures Office equpments __Vehiles Total was 85633 23,503 4ean2 20853383937 - 75ass 31685 308171372732 84,760 354, 2327 az taya____ 35,68 mae Tsiese 2291 3.005 534,585 623529 asn 20208 asst 1osoz 34652 70,566 3335 3670 6394 Ws S488 ——1,26,989 116, ‘77 168 3038, 3,798 a6 35263 358 27s0e #502 4g3,717 oa ema 37330 is __3a3371 32320 05,170 30055249483 439,812 computer softwares 3.962 161 2u6 2,007 998 291 264 a2 2.968 286Investmentin equity Wstument of subs company oo uy shares nays Enfant afar) 3200 22m somerset para ae ae Marh 34,2098 yee 3.2017 ‘Coptal advances aus ‘Other advanees| Prepadenperses| 7 reser so Tse07 797 (attower festa net reaabe ate) ah, 2018 arc 33,7057, ates grote ‘Theo Wheelers agsia0s rssisz Spares es roe 7a a3530 fncusesgoosin ant of USO 78,395 March 32017 USD 10985) of wit down of etary tnt ealsable value trade recebie 30 4610s Ye frricnare ach 31,2018 vac 31,2037, [raterecenabies tom lated pares oo refer note 3) loner reshbles aan ass 223395 a2. ‘Trae receivables ae noninterest Beating and are geeralyon tens 9: Cashand ash equals Wo trade ecehabls are fom drctrs or ther offcrs of the company ether severly roe wth any other — = =ae 7a a March 38,2018 arch 98 2037 eons to ders [ae eer ete 30) 52 “ soa Sir 11, other rant asets prane rs Te ar 38,2018 tase 3.2017, Others 34402 12 Equity Share capital ar 33,2018 sen 34,2017, Prstorer 10,00 Fay hares ofa ve) aes ararsox rosa ao Taw sued Subserted and fly pal up ‘tthe begining of te yer nase. ax501 s8.0therasity ‘oustanding at the end ofthe yoe =a Zao Not: 10% Equity Shere Capt ill by Eicher Meters Lined the ling Company = ro Ta arch 9,208 fae 38.200, beta ihe natant ot pana Te faerie ttznce (ss:506] (aszsass] fen forthe yar (sss) fesa2ea] et defi inthe satrent of profiad les Eas EEoy 14 other fini Ebi re Ta Te ESOP pyable (ee te 30) apse pees 29510 22602 ‘Statutory eines (ede Tx pyable Parl state tad - ssaai ‘aise Salers) =) others SOP poyabie eer Note 30) essai rou Bree saa poe cr a March, 2038 Mar 32037 scouted Shr tem tan rom banks 50,00 «430.000 Unsere Shor Tesmaan at agaist Caporate Guarantee gen he Hoiing Company, her Motos ited and cares intro @ UBOR + 9% ti eptrber 2017 yg UBOR “1.79% rom Ontaber 2017Ne aren. 2018 | ___ Maren 3.2017, ‘rae payaso related partes fer net 30) m2a2as0 Trade peas toathers 126s 228007 $7.0ther current bites a Te me aren 33,2018 | __ Maren 3.2017, ao Torts Yearerded] Tortie Yeo Maveh31,201e] Moreh 3, 2017 Twohedee ra2s.27 2223390 Spare ports another aed pros 221025 ass ther Operating Revenue ‘seapsle 250 Toul TERT BRET prane a Mareh3s,2018] Moreh 34,2017] oft on sl of ead ets 2ssr 20 Purchases of traded goods a a Marchsi, 20:8] March 31,2057] |owhedes saa.as 2520363 frre prs nd cher aed products 1399.83] ra3a2 sora FE See 2. crease decrease mavens of trades goods March 3, 20 March 3,200 "Wade goods Two Wheelers Spars & other Aled produc) 2as0709 masse ‘suber BOs SLs fovenois atthe beginning ofthe yer “Traded gos (Two Wheater, pues & tbe lle prods) sess 209.764 ‘ubtota() es BODE ctcharge pn Baa ara Tar Year onde] Tart Ya oe kaieswagesandbonus 2oszsau| rosean fay races, 149.13 assay nore tases peymentsto employees 305s fa were pense ane 20s total ss EEEWh ‘on socomigs asia sot (Onis Cocating Save: bia 24, Depreciation snd amertatin expense eras Tortie Yeorended] Torts ew oe] Jbeprecison on propery, lant nd cqupment rassce sus imetsaton tara ose 3283 28 Maeh3, 2014 ah 3, 2037) Stores and spre consumed os ne Powers m7 5.00 Inewce anu Boe fares and taxes 34087 27382] Daverzeren 707.950 ass Fgh and handing cages 1538 199.227 (ther seine and dstrbuon expanses 20098 229558 rent suas roars gaa rte cares ‘a.a92 cree ‘Traveling expenses 429,300 3.27086 Testing &mepetioncharge 3760 ‘5a Communication expenses sas sss eal TAT SS 26. come tx reogniced in Statement of prot anos - a ee Mar, 20 Marth 3,200 Invapec ofthe cucer yer “Te income tx expense forthe yr an be ecole tothe scouring ra flows: Pericnars Torta Yoarandad] Tortie Yer ened March, 2039 arch, 200 fess betoresax tssssres] 13507433] Jaco cerenee lee a 8% tusszsna] 226s] ecto unseat ner nd ix oft ot eco defered fae ats mas25 900336 never ‘anai0 Jocome acexpnse recognized ingot loss 2830[AL AMOUNTS AREIN USD UNLESS OTHERWISE STATED Te Company has commitments for purchase/saies orders which are nsee after considering requirements per operating cycle for purchase (sale of goods bed services empaye's Beni inaing agreement it roma couse of business. The Company does rot have ay lang term cammtments o material non cancelale contacualcommitments/conrects, which might Rave materalmpacton the franca statements, fui earnings per share ave clelated by dlding the net profit forthe year atibutable to equity shareholders by the weighted average numberof eauty shares outstanding uring the yar. The Company has not issued any potent equity shares and according the hos earnings per share and dived earings Panis For the Year ended] — Forte Year onde] March 31,2018] March 31,201 ia} os Yor the year as par satement of pra ang oss (53.89,78) (230,283 lb) Weighted average umber fect shares Nos) "400,000 1.00000 clearings per sare: ase/Dovted (3.90) 290] 25. segment reporting ‘tm Company prarly operates in the automotive segment. The automotive segment Includes all activites elated to sale of two-wheelers as wells sale of felted parts and acessories, ‘As defined In ind AS 108, the ci operatingdecsion maker (COON), evaluates the Company's performance locate resources based onthe analysis ofthe ‘arlous performance nicator of the Company as ine unt Therefore, thee sno cepantable segment forthe Company a per the requiement of IND AS 106 “Operating Segments. 30. Related panty dscosures 2) Names of elated parts and thee relationship Name of related party Nature of Relationship [Geher oto United (eV Holing Comeary. [royal Enfield Canada uted RECA) Ts subidarycomaany Key Management Personna fie Rodney Taos Capes Decor ale Male Director €)Wansaclons wh the rlated parties Fanieaars ia ray Tortha Yearended] orth Year ends] forthe Year ended) Forthe Year ended Mareh 31,2018] March 31.2017] Maren 33,2008 March 31,2017 Give of shore aol 25,0000) 4.10009 ‘i | [subscription o share Copia z : | = feurcnase of trades gods, pacing materia ase Taea| z eof waded goods z a5) aaa] urease of fixes asco : z z : [rayment on beta of EMC rl Extn : lxpensesrecoveres oss 35093 wai To3id [Expenses reimbursed 338,703, z INetamount receives on Bahai tL z EOE Tara [Aggregate bolonces ovstonding ox tthe yer end [sare capital Sao Ta a aa Payables 3263607 132.234) 300 063 [Recevabior 21162 EI a 5598 [ESOP Payable 30,55 | : 7 ‘Guarantee ata FECETII TgaoDoD 5 64) Transactions wth key managerial personnel Pranic Ti Roy James Capes Forthe Year endea) ror the Year ended arch 31,2018, March 31,2017 Sia, wanes and bonus 24835) FEET] oars even. esas [eslance oustanding a at the yearend 552a ROYAL ENFIELD NORTH AMERICA NATED [NOTES FORMING PART OF THE FINANCIAL STATEMENTS. AL AMOUNTS BREN USD UNLESS OTHERWISE STATED 31. tcl Accounting Judgements and key resources of estimation uncertainty Use of estimates ‘The preparation ofthe Branca statements In confmity with IND AS requires the Management to make estimates and assumptions ‘considered inthe reported amount of ets 4nd ables (along contingent tabs) and the reported income ar expenses dng the period. The Management bekeves thatthe eximates used In preparation of te fnanca statements are prudent and reasonable Future esas coul fer due to these estimates andthe aiferences between the actual resus and the estimates are recogised inthe pericds in which the resus are krown / mater Useful ves of depreciable assets [Management reviews useful les of depreciable assets a each reporting. As at Merch 31,2028 management assessed that the useful es represent the expected tity ofthe assets tothe company Further, there is no signfant change i useful Ives as compare tothe previous yer Investment in equity instrument of subsidiary company ‘During the year, the company assessed the investment equity instruments of subsidary company carted at cost for impaiment testing. Subsidiary company s expected to generate poste cashlows inthe future years. Detaled analysis hasbeen carried out onthe future brojctions and the company isconfident thatthe investment do rat equite any impart 232. The Company 6d not have ay longterm contracts including derivative contracts for which there were any mater foreseeable oss 133. The company das not have any tigation during the yaar oan tgation paring atthe yearend 234. Capt Management “Ihe Company manages ie captal to ensure tat the Company willbe able to continue 35 going concer while maximising the return to stakeholder though the optimisation of the debt and equity balance. The Captal structure of the Company consists of net debt (Corrowings as detailed in notes ad offset by cash and bank balances) and total equity of he Company. ‘The Company isnot subject to any extemal impose capital equrements, ‘tha management ofthe Company reviews the capital structure of the Company on regulir bas. As part of this review, the Company conser the costo capital and the rhe azoiseg with each as of capt ‘The folowing table sunmaraes the capt of te Company Paral a cS Mareh 31,2018 March 31,2017 Equity Share Capital S221 27A2601 ther equity (4,005,448) ($525,696) Total Eauity —— a) 235. Finanll netrumente Categories of financial insturens Particulars a cr TS March 33,2018 March 3, 2017 nancial assets at amortsed cost ‘current Trae reshabee aman sean Cath and cath equvalenss 434,880 2agoat tans ‘582 ther financial assess 3550 7502 teal ays a nancial bites et amortined cost Non-Curent Other fancatlabites aysaae : ‘cortent Borrowings 500,000 6850000 ‘rade payables 14315,108 235497 (Other fancies 526,496 320.25 tort ssaROYAL ENFIELD NORTH AMERICA UMATED [ALL AMOUNTS AREIN USD UNLESS OTHERWISE STATED 136. Financial sk management objectives and Poles ‘The Company's ancl risk management san integral part of how to plan and execute its business strategies. The Company's ancl isk ‘management policy fet by the maragerent af the Company. [Market rk eth rk of ose of future earings, far valoes o future cath flows hat may reel from a change inthe pice of 2 ancl instrument. The value of ranch instrument may change a a esl of changes in the interes rates and other market changes that affect ‘market vik sentive instruments Market rik ateibutablet all market rk senetve financial netrument including loan i borowins. Interest ate sk Interest ate rk ther that the ar value or fare cashflows ofa fnancal instrument wil fucuate because of changes in market interest rates. In order to optimize the company's postion with rego tointerest income end interest expenses and to manage the interes ‘ate rh the Company performs a comprehensive corporate interest rata rk management by balancing the proportion of fied rate and Aloating rate financial netrument st ot port, xposuee to interest rate isk Portals Torte year ended Forth year ended (Moreh 33, 2018 March 31,2017 Foatng rate borownes (500,000 50000 Interest rate sensitivity ‘A change of 25 bass its in intrest rates would have following ingacon orf before a. Particulars Tor the year ended For the year ended Moreh 32,2038 March 3,017 Bopnceare Decase nv 19436 ‘207 25 bp decease ncreasein profit 39438 6207 Foreign even a The Company does not undertake transasons in currencies other than USO, hence there n0 foreign eueency Fk ented during the ver. ait rk ‘The Company manages liquidity risk through sankng snd Borrowing felts, by continuously monitoring forecast and actual cash lows, and by matching the matory proiles of fant! assets an abies, Maturity profile of franca abies: Heat wore, TOS Parties Tee than year to $year See atl iors 50000 p60 rade payables 14315308 as.04 Other financial ables 455301 a7ease ‘2304ss eat ware IH, OTT Partiars Texethon Tyear to S year See “aul (forawinge 850000 Ene rage payables 2.35497 . 23547 Other Financ abies 3.20026 : s2n025 ret sk management Croat sk efersto he rk hat» counterparty wll default on ts contractual obligation rezuing in anal loss to the Comp Financial instruments that are subject to concentrations of cred rk, principally const f balance with banks, vestments In debt instuments/ bonds, trade vecevables, loans and advances. None of the frandal instruments of the Company result in mater ‘concentrations of cet ss. alances with banks were not past due or Impaired as at the yer end. In ther financial assets tat are not stds and nat ipsited there were no inston of faut ia repayment a atthe year enNOTES FORMING PART OFTHE FINANCIAL [ALL AMOUNTS ARE IN USO UNLESS OTHER STATEMENTS, Wise STATED he age analyss of trade recevables sof the balance sheet date have been considered from the due date and dosed below: roars Teal Tea ¥ March 31,2018 Maren 31,2017) iin the crea paved 2a8at 55646 {veto 6 months ns 2596 IMore than 6 months 4s ‘otal 2707 saa 137. Previous year’s igres have been regrouped and recasfied where necessary to confirm to the curent yrs dastfication Interns of our report attached For SR. Batibo & Co. LP Chartered Accountants FR: 301003/6300005 per Sanjay Vy Membership No: 055168 Pace: Guragram Date: ay 08,2018, For and on Bet of Board of Directors tate Mae Director Royal fed North Amercs Umea Pace: Gurugram ote: May 03,2018