Mas Financial Services Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The unaudited standalone financial results of the Company have been prepared in accordance with Indian Accounting Standards ('Ind AS') prescribed under section 133 of the Companies Act 2013 (the 'Act'). The Company has adopted Ind AS from 1 April 2018 with effective transition date of 1 April 2017 and accordingly, these financial results together with the results for the comparative reporting period have been prepared in accordance with the recognition and measurement principles as laid down in Ind AS 34 - Interim Financial Reporting, prescribed under section 133 of the Act and the other accounting principles generally accepted in India.

This transition to Ind AS has been carried out from the erstwhile Accounting Standards notified under the Act, read with rule 7 of Companies (Accounts) Rules 2014 (as amended), guidelines issued by Reserve Bank of India ('RBI') and other generally accepted accounting principles in India (collectively referred to as the 'Previous GAAP'). Accordingly, the impact of transition has been recorded in the opening reserves as at 1 April 2017 and the corresponding adjustments pertaining to comparative previous quarter as presented in these financial results have been restated / reclassified in order to conform to current period presentation.

These unaudited standalone financial results have been drawn up on the basis of Ind AS that are applicable to the Company effective from 1 April 2018 based on the Press Release issued by the Ministry of Corporate Affairs ('MCA') on 18 January 2016. Any application guidance / clarifications / directions issued by RBI or other regulators are implemented as and when they are issued / applicable.

2. In compliance with Regulation 33 of the Securities Exchange Board of India (the 'SEBI') (Listing Obligations and Disclosure Requirements) Regulations, 2015, a limited review of the financial results for the quarter and nine months ended 31 December 2018 has been carried out by the Statutory Auditors.

As permitted under circular no. CIR/CFD/FAC/62/2016 dated 5 July 2016 issued by the SEBI, the Company has opted to avail exemption for submission of Ind AS compliant financial results for the previous year ended 31 March 2018.

3. As required by Ind AS 101, the profit reconciliation between the figures previously reported under Previous GAAP and restated as per Ind AS has been provided in the PDF Format of financial result uploaded on the website of Stock Exchanges respectively.

4. The Board of Directors in its meeting held on 1 November 2018 declared an interim dividend of Rs.1.50 per equity share of face value of Rs 10 each. Dividend was subsequently paid on 27 November 2018.

5. Pursuant to Initial Public Offer ('IPO'), 10,039,277 equity shares (comprising of fresh issue of 5,092,829 equity shares and Offer for Sale ('OFS') of 4,946,448 equity shares) were allotted and transferred at an offer price of Rs. 459 per equity share (Rs.414 per equity share for eligible employees) on 16 October 2017.

6. The Company has incurred various expenditure of Rs. 1,591.16 lakhs and Rs. 1,909.62 lakhs (net of recovery from selling shareholders Rs. 832.50 lakhs) during the nine months and as at 31 December 2017 respectively towards private placement of equity shares, IPO and OFS. For certain services, the Company has provided the amount based upon the information available and current best estimate pending receipt of final invoices. The Company has adjusted the expenses incurred to the Securities Premium account.

7. The unaudited standalone financial results for the quarter and nine months ended 31 December 2018 along with restated comparative period have been reviewed by the Audit Committee and subsequently approved by the Board of Directors of the Company at its meeting held on 30 January 2019.

8. The Company is engaged primarily in the business of financing and all its operations are in India only. Accordingly, there is no separate reportable segment as per Ind AS 108 on 'Operating Segments' in respect of the Company.

9. All the figures except face value and paid up capital are in lakhs.