1. Corporate information:

GPT Infraprojects Limited (the ‘Company’) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on two recognized stock exchanges in India. The registered office of the company is located at GPT Centre, JC 25, Sector III, Salt Lake, Kolkata - 700 098, India.

The Company is principally engaged in construction activities for infrastructure projects. Besides, the Company is also engaged in concrete sleeper manufacturing business. The standalone financial statements were authorized for issue in accordance with a resolution of the directors on June 01, 2018.

2. Significant accounting policies:

2.1 Basis of preparation:

The standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time).

For all periods up to and including with the year end March 31, 2017, the Company prepared its financial statements in accordance accounting standards notified under the Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the year ended March 31, 2018 are the first Financial Statement prepared by the Company in accordance with Ind AS. Refer to note 49 for information on how the Company adopted Ind AS.

The standalone financial statements have been prepared on a historical cost basis except certain exemptions availed by the Company under Ind AS 101 - First time adoption of Indian Accounting Standards, as detailed in note no 48 and 49. These financial statements are presented in H and all values are rounded to the nearest lacs (RS. 00,000), except where otherwise indicated.

2.2 Significant Accounting judgments, estimates and assumptions:

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods

In the process of applying the Company’s accounting policies, management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

The areas involving critical estimates or judgment are:

a) Measurement of defined benefit obligations - (Note 42);

b) Estimated useful life of intangible assets, property, plant and equipment - (Note 3);

c) Recognition of revenue - Contract Revenue is recognized under Percentage of Completion method. When the outcome of a construction contract can be estimated reliably contract revenue and contract costs associated with the construction contracts are recognized as Revenue and Expenses respectively by reference to the stage of completion of the Contract activity. (Note 41):

d) Provision for expected credit losses - (Note 7 and note no 49)

These critical estimates are explained in detail in note no 2.2 - Summary of significant accounting policies.

(a) Nil (March 31, 2017 : Nil ; April 01, 2016 : 2,295,000) Shares Pledged with State Bank of India as security for loan sanctioned in earlier year (but not disbursed as on the balance sheet date) by them to the Subsidiary Company. [also refer note no 33B)].

(b) The non cumulative redeemable preference shares are redeemable after the expiry of 13 years from the date of issue / allotment or earlier subject to the approval / consent of the board, preference shareholders and lenders of the Investee Subsidiary Company [also refer note no 33 B)].

(c) The above Investments made are proposed to be utilised by the investees for general business purpose.

(d) Terms/ rights attached to equity shares

i. The Company has only one class of equity shares having par value of RS.10/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the general meeting.

ii. The Company has paid two interim dividends during the year aggregating to RS.2.00 per equity share (March 31, 2017 : RS.2.50 per equity share).

iii. In the event of winding-up of the Company, the equity shareholders shall be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note:

3.1 Term loans in Indian Rupees from Bank was secured by equitable mortgage of commercial property owned by GPT Estate Private Limited. The loan was repayable in 33 monthly equal installments of RS.60.61 lacs each starting after 3 months from the date of disbursement in June 2014. The loan carried interest @ 11.70 - 12.25% and has been repaid during previous year.

3.2 Deferred Payment Credits are secured by first charge of equipments purchased from proceeds of such loans and personal guarantee of two Directors. The outstanding loan amount is repayable in monthly installments and the amount repayable within one year being RS.375.93 lacs, between 1 - 2 years RS.235.92 lacs, 2 - 3 years RS.244.12 lacs, 3 - 4 years RS.80.79 lacs, 4 - 5 years RS.6.19 lacs . The loan carries interest @ 8.75% - 13.15% p.a.

3.3 Unsecured loan in Indian rupee from a related party carried interest @ 14.00% p.a. and has been repaid during the year.

Changes in liabilities arising from financing activities.

The MCA amended Ind AS 7 which becomes effective from annual period beginning on or after April 01, 2017. The amendment requires entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. The Company has disclosed information about its borrowings (both current & non - current). On initial application of the amendment, entities are not required to provide comparative information for preceeding period, hence no comparatives have been provided.

* As per information available with the Company, there are no Micro and Small suppliers covered as per the Micro, Small & Medium Enterprise Development Act, 2006. As a result, no interest provision/payment has been made by the Company to such creditors, if any, and no disclosure thereof is made in these financial statements.

Trade payables are non-interest bearing except certain steel suppliers where interest rate is 15% p.a.

Note:

4.1 Cash credit and short term loans for working capital are secured by (a) First hypothecation charge on current assets of the Company (excluding current assets financed out of term loan for any specific projects) on pari pasu basis under consortium banking arrangement.

(b) First hypothecation charge on all movable fixed assets (excluding those assets financed out of term loan and deferred payment credits) of the Company on pari pasu basis under consortium banking arrangement. (c) Personal guarantee of five promoter shareholders (including four promoter directors) of the Company, (d) Pledge of 55,45,628 (March 31, 2017 : 55,45,628, April 01, 2016: 55,45,628) nos of shares held by promoters and (e) Equitable mortgage of a property owned by one promoter director. All the charges created in favour of the Lenders for Cash Credit and Working Capital loan rank pari passu inter se.

4.2 Cash Credit borrowings carry interest @ 9.35% to 13.25% p.a. and are repayable on demand.

4.3 Short term loans for working capital carries interest @ 9.00% to 12.00% p.a. and are repayable till July 14, 2018.

4.4 Buyers Credit in Indian Ruppes is secured against comfort letter of a vendor with recourse backed by bank guarantee issued by the Company in favour of that vendor. The Bank Guarantee is secured by the same securities as are available to bank with respect to cash credit / working capital facilities. The said buyers credit facility carries interest @ 9.95% p.a. and is repayable till July 2018.

Revenue from operations includes excise duty collected from customers of RS.49.90 lacs (March 31, 2017: RS.208.69 lacs). Revenue from Operations net of excise duty is RS.45,317.16 lacs (March 31, 2017: RS.46,935.98 lacs). Revenue from operations for periods up to June 30, 2017 includes excise duty. From July 01, 2017 onwards the excise duty and most indirect taxes in India have been replaced by Goods and Service Tax (GST). The Company collects GST on behalf of the Government. Hence, GST is not included in Revenue from operations from July 01, 2017 onwards. In view of the aforesaid change in indirect taxes, Revenue from operations for the year ended March 31, 2018 is not comparable with March 31, 2017.

The Company is contesting the demands and based on discussion with experts / favorable decisions in similar case, the Company has good chance of success in above mentioned cases and hence no, provisions there against is considered necessary.

(B) In an earlier year, the Company had incorporated a subsidiary (Jogbani Highway Private Limited) for execution of a BOT contract awarded by a customer. The subsidiary had subcontracted such construction work to the Company. Subsequently, the subsidiary had terminated the concessional agreement with the customer due to the required land not made available by the customer and referred the matter to arbitration. During the year, the Arbitration Tribunal has awarded a sum of RS.6,120.32 lacs in favor of the subsidiary. The impact of the aforesaid award will be recognized when receipt of the arbitration award becomes reasonably certain.

(C) In earlier years, the Company had significantly completed execution of certain construction contracts under the terms of agreements with government departments. Unbilled revenue, accrued price escalations and trade receivables (including impact of unwinding) aggregating RS.2,692.82 lacs (March 31, 2017 : RS.2,372.53 lacs; April 01, 2016 : RS.2,090.33 lacs), are yet to be received by the Company in respect of such contracts due to paucity of funds available with those government departments. However, the management expects to realize the above sum within a period of next three years. Based on regular follow ups with those customers, management is confident that the aforesaid amount is fully recoverable. (refer also note no 49).

(D) During the year, the Company has significantly completed execution of a construction contract. Unbilled revenue aggregating RS.1,860.25 lacs is yet to be billed by the Company in respect of such contract pending final joint measurement of work by the Company and the customer. Based on regular follow ups with the customer, management is confident that the aforesaid amount is fully recoverable within a year.

(E) The Company had invested in two joint operations in earlier years for execution of construction contracts. In view of the disputes with respective customers regarding underlying unbilled revenue, trade and other receivables, the joint operation have initiated arbitration proceedings. The management believes that the outcome of arbitration will be favorable to the Company and hence no provision is considered necessary for the Company’s share of unbilled revenue, trade receivables and other receivables aggregating RS.1,727.95 in these joint operation.

(F) The Company’s subsidiary in South Africa, GPT Concrete Products South Africa (Pty.) Ltd., is solely engaged in the business of manufacture of sleepers for supply to a single customer under the terms of an agreement which is scheduled to expire in 2020. Management believes that in view of renewal of contracts in prior year and the Subsidiary’s market share in that geography, the aforesaid contract will be renewed and the Subsidiary will continue to operate as a Going Concern. Consequently, no adjustment to the Company’s carrying value of direct / indirect investment in the aforesaid subsidiary, aggregating RS.936.91 lacs has been considered necessary.

5. (a) The Company had introduced an Employee Stock Option Plan (ESOP) “GPT Employee Stock Option Plan-2009” (ESOP scheme) in the year 2009 - 10. On the basis of such scheme, 2,00,000 equity shares of the Company were allotted to an Employees’ Welfare Trust namely GPT Employees’ Welfare Trust (“the trust”) on 2nd January 2010. In an earlier year, the Nomination and Remuneration Committee approved the proposal for grant of options under the aforesaid scheme to the eligible employees of the Company for the 2,00,000 shares. None of the grantees / eligible employees accepted the grant within the prescribed acceptance period. Under such circumstances, the Board, as recommended by the Nomination and Remuneration Committee dissolved the said ESOP Scheme during that financial year.

(b) Further, the Company had also given RS.200.00 lacs during 2009 - 10 by way of interest free loan to M/s. GPT Employees Welfare Trust. During the year ended March 31, 2017 the Trust had refunded RS.184.70 lacs to the Company which had been considered as an adjustment to securities premium account to the extent of RS.164.70 lacs and balance RS.20.00 lacs against equity share capital.

6. Segment information

As per the internal reporting to Chief Operating Decision Maker, the Company is organized into business units based on its product and services and there are two segments namely:

a. Concrete Sleepers Consists of manufacturing concrete sleepers,

b. Infrastructure consists of execution of construction contracts and other infrastructure activities,

c. Others consist of miscellaneous business comprising of less than 10% revenue on individual basis.

* The remuneration to the key managerial personnel does not include provisions towards gratuity and leave benefits as they are determined on an actuarial basis for the Company as a whole. Amount of such provision pertaining to the key managerial personnel are not ascertainable and therefore, not included in above.

# represents aggregate amount of fund and non fund based borrowing limits available to the Company that are secured by assets and these personal guarantees as set out in note no 15 and 21.

Note: Figures in (bracket) relates to transaction / balances for the year ended / as at March 31, 2017 and figures in [bracket] relates to balances as at April 01, 2016.

D. Other Transaction:-

In the earlier year, the following related parties have pledged the below mentioned shares in favor of the consortium bankers as an additional security towards credit facilities including non fund based credit facilities sanctioned to the Company by such consortium bankers.

7. The Company has operating leases for office and other premises that are renewable on a periodic basis and are cancelable by giving a notice period ranging from one month to three months. The amount of rent expenses included in statement of profit and loss towards operating leases aggregate to RS.241.09 lacs (March 31, 2017 : RS.232.96 lacs).

a) Consequent to revision in cost to complete of certain ongoing projects during the year, unbilled revenue aggregating RS.1,780.65 lacs (March 31, 2017: RS.1,533.51 lacs) has to be reversed in these financial statements.

b) Based on final measurement of a significantly completed project jointly carried out during the year by the Company and the customer, it has been considered prudent to reverse unbilled revenue aggregating RS.793.44 lacs (March 31, 2017: RS.2,833.51 lacs) in these financial statements.

8. (a) Gratuity and other post - employment benefit plans.

The Company has a defined benefit gratuity plan. The gratuity plan is governed by The Payment of Gratuity Act, 1972. Under the Act, an employee who has completed five years of service is entitled to specific benefit. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following table summarizes the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

Net employee benefits expense recognized in the employee cost.

The Company expects to contribute RS.117.81 lacs (March 31, 2017 H 76.91 lacs) to the gratuity in the next year. The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on asset is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

Description of risk exposure:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory frame work which may very over time. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest rate risk:

The plan exposes the company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefits and will thus result in an increase in the value of the liability (as shown in financial statements).

Liquidity risk:

This is the risk that the Company is not able to meet the short-term gratuity pay outs. This may arise due to non-availability of enough cash/ cash equivalent to meet the liabilities or holding illiquid assets not being sold in time.

Salary escalation risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Regulatory risk:

Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts.

Asset liability mismatching or market risk:

The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities/fall in interest rate. Investment risk:

The probability or likelihood of occurrence of losses relating to the expected return on any particular investment.

9. Details of Loans given, Investments made and guarantee given covered under section 186(4) of the Companies Act, 2013.

Notes:

i. Necessary disclosure as required under section 186(4) of the Companies Act, 2013 in respect of Investments are given in note no 4 & 5.

ii. All the Loan / Guarantees given to the Companies are for their general business purpose.

10. Financial risk management objective and policies.

The Company’s financial liabilities comprise loans and borrowing and other payables. The main purpose of these financial liabilities is to finance the Company’s operation. The Company’s financial assets include loans, trade & other receivables and cash & cash equivalents.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s financial risk management framework and developing and monitoring the Company’s financial risk management policies. The Company’s financial risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate controls.

Market Risk:

Market risk is the fair value of the future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risk i.e. currency risk, interest rate risk and other price risk such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payable, trade receivables, borrowings etc.

Interest rate risk:

The Company has taken debt to finance its working capital , which exposes it to interest rate risk. Borrowings issued at variable rates expose the Company to interest rate risk.

Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of change in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates are as detailed below:

* The assumed movement in basis point for the Sensitivity analysis is based on the currently observable market environment.

Credit Risk:

Credit risk is the risk that counterparty will not meet its obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, bank balances, loans, investments and other financial assets. At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical trend, industry practices and the business environment in which the Company operates.

Credit risk with respect to trade receivables are limited, due to the Company’s customer profiles are well balanced in Government and Non Government customers and diversified amongst in various construction verticals and geographics. All trade receivables are reviewed and assessed on a quarterly basis.

Credit risk arising from investments, financial instruments and balances with banks is limited because the counterparties are banks and recognised financial institutions with high credit worthiness.

The ageing analysis of trade receivables considered from the date of invoice as follows:

Liquidity Risk:

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

Maturities of Financial Liabilities:

The table below analyzes the Company’s Financial Liabilities into relevant maturity groupings based on their contractual maturities.

11. Standards issued but not effective.

Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2018 has notified the following new and amendments to Ind AS’s which the Company has not applied as they are effective for annual periods beginning on or after April 01, 2018:

Ind AS 115 - Revenue from Contracts with Customers

The Company is currently evaluating the impact of implementation of Ind AS 115 “Revenue from Contracts with Customers” which is applicable to it w.e.f. April 01, 2018. However, based on the evaluation done so far and based on the arrangement that the Company has with its customers, the implementation of Ind AS 115 will not have any significant recognition and measurement impact. However, there will be additional presentation and disclosure requirement, which will be provided in the next year’s financial statements.

Ind AS 21 - The effect of changes in Foreign Exchange rates

The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. The Company has assessed that the impact of such amendment shall not be significant.

Ind AS 12 - Income Taxes

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognized in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or after April 01, 2018. These amendments are not expected to have any impact on the Company as the Company has no deductible temporary differences or assets that are in the scope of the amendments.

Ind AS 28 - Investments in Associates and Joint ventures

Clarification that measuring investees at fair value through profit or loss is an investment-by investment choice:

i) An entity that is a venture capital organization, or other qualifying entity, may elect, at initial recognition on an investment-by-investment basis, to measure its investments in associates and joint ventures at fair value through profit or loss

ii) If an entity, that is not itself an investment entity, has an interest in an associate or joint venture that is an investment entity, the entity may, when applying the equity method, elect to retain the fair value measurement applied by that investment entity associate or joint venture to the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made separately for each investment entity associate or joint venture, at the later of the date on which: (a) the investment entity associate or joint venture is initially recognized; (b) the associate or joint venture becomes an investment entity; and (c) the investment entity associate or joint venture first becomes a parent. The Company has assessed that the impact of such amendment shall not be significant.

Ind AS 112 - Interest in Other Entities

The amendments clarify that the disclosure requirements in Ind AS 112, other than those in paragraphs B10-B16, apply to an entity’s interest in a subsidiary, a joint venture or an associate (or a portion of its interest in a joint venture or an associate) that is classified (or included in a disposal group that is classified) as held for sale. The Company has assessed that the impact of such amendment shall not be significant.

12. Capital Management.

For the purpose of the Company’s capital management, capital includes issued equity capital, security premium and all other equity reserves attributable to the equity holders of the Company.

The Company’s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of equity, internal fund generation and borrowed funds. The Company’s policy is to use short term and long term borrowings to meet anticipated funding requirements. The Company monitors capital on the basis of the net debt to equity ratio. Net debts are long term and short term debts as reduced by cash and cash equivalents (including restricted cash and cash equivalents). Equity comprises share capital and free reserves (total reserves excluding OCI). The following table summarizes the capital of the Company:

*Carrying Value of assets / liabilities carried at amortized cost are reasonable approximation of its fair values.

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

13. First - Time adoption of Ind AS:

These financial statements for the year ended March 31, 2018 are the first financial statements of the Company prepared in accordance with Ind AS.

Exemption applied:

Ind AS 101 allows certain exemptions from the retrospective application of certain requirements under Ind AS.

a. Deemed Cost:

Ind AS 101 allows a first time adopter to continue with the carrying value for all its Property, Plant and equipment (Except Land) and Intangible assets as recognized in its previous GAAP financials on the date of transition. Accordingly, the Company has opted for this exemption and decided to carry its Property, Plant and equipment and Intangible assets at carrying value as per Indian GAAP on the date of transition i.e. April 01, 2016 after making necessary adjustments. Investment in a joint venture has been fair valued on the date of transition and the same has been considered as deemed cost of such investment.

b. Estimates:

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions as described below that affect the reported amounts and the accompanying disclosures. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

- Cost of Defined Benefit Plan and the Present Value of the defined benefit obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future.

- Impairment of financial assets based on Expected Credit Model.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017.

c. Classification and measurement of Financial Assets:

The Company has assessed the classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS in accordance with Ind AS 101.

Note:

a. Provision as per Expected Credit loss model is recognized in accordance with Ind AS 109, Financial Instruments. This is related to old Unbilled revenues, Accrued price escalation and Trade receivables, that were outstanding for more than three years as on the transition date. Due to delay in receipts from customers, the management now believes that these will take significant time to recover as against the earlier assessment of one year.

b. In the financial statements under the previous GAAP, investments of the Company were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary diminution in carrying amount of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, the Company has recognized such investments as follows:

i. Investments in subsidiaries: at cost,

ii. Investment in joint venture: Fair valued at transition date which has been considered as deemed cost.

The resulting fair value change in above investment has been recognized in retained earnings as at the date of transition.

14. The Company has evaluated the future impact of GST on its existing construction contracts in the light of ongoing negotiations with its customers. Based on such evaluation, the likely future impact of GST has been recognized in these results. Management believes that there will be no adverse impact in this regard.