Individual Financial Statements · HMCL Colombia S.A.S. Individual Financial Statements under accounting standards and financial information for the years ending on March 31, 2018

HMCL Colombia S.A.S.

Individual Financial Statements Accounting Standards and Financial Information -NCIF

March 2018


Individual Financial Statements under accounting standards and financial information for the years ending on March 31, 2018 and 2017 and Report of the External Auditor

Content The report is included here (Opinion) of Tax Auditors ....................................................................... 5

Individual Financial Position Statements ............................................................................................ 8

Individual Income Statements ............................................................................................................ 9

Statements of Changes in Individual Equity ...................................................................................... 10

Individual Cash Flow Statements ...................................................................................................... 11

Notes on Individual Financial Statements ......................................................................................... 13

........................................................................................................................................................... 12

1. Reporting Entity - General Information ........................................................................................ 14

1.1. Translated Financial Statements ............................................................................................ 15

2. Summary of the Main Accounting Policies.................................................................................... 15

2.1. Basis of Presentation .............................................................................................................. 15

2.1.1 Compliance Statement ..................................................................................................... 15

2.1.2 Measurement Basis .......................................................................................................... 16

2.1.3 Relative Importance and Materiality ............................................................................... 16

2.1.4 Accounting Period ............................................................................................................ 16

2.2. Significant Accounting Policies ............................................................................................... 16

2.2.1. Foreign Currency Transactions ........................................................................................ 16

2.2.2 Property, Plant and Equipment ........................................................................................ 17

2.2.3 Recognized Income from Ordinary Activities ................................................................... 18

2.2.4 Inventories........................................................................................................................ 18

2.2.5 Leasing .............................................................................................................................. 18

2.2.6. Intangibles ....................................................................................................................... 19

2.2.7. Prepaid Expenses ............................................................................................................ 20

2.2.8. Impairment of Non-Financial Assets ............................................................................... 20

2.2.9. Cash ................................................................................................................................. 20

2.2.10. Financial Instruments .................................................................................................... 20

2.2.11. Derivative Financial Instruments and Hedge Accounting ............................................. 21

2.2.12. Provisions ...................................................................................................................... 22

2.2.13. Benefits to Employees ................................................................................................... 22

2.2.14. Current and Deferred Income Tax ................................................................................ 22

2.2.15. Contingent Assets and Liabilities ................................................................................... 23

2.2.16. Social Capital ................................................................................................................. 23

2.2.17. Cash Flow Statements ................................................................................................... 23

2.2.18. Classification of Current and Non-Current Items .......................................................... 23

2.2.19. Balance Netting ............................................................................................................. 24

3. Property, plant and equipment ..................................................................................................... 24

4. Intangible assets ............................................................................................................................ 25

5. Trade receivables .......................................................................................................................... 25

6. Other financial assets .................................................................................................................... 26

7. Current Tax and Deferred Tax ....................................................................................................... 26

7.1. Net Current tax ....................................................................................................................... 26

7.2. Deferred tax (assets)/ liabilities (net) ..................................................................................... 26

8. Other current assets ...................................................................................................................... 27

9. Inventories..................................................................................................................................... 27

10. Cash and cash equivalents .......................................................................................................... 27

11. Equity share capital ..................................................................................................................... 28

12. Non – Current borrowings........................................................................................................... 29

12.1. Details of long term borrowings of the Company ................................................................ 30

13. Trade Payables ............................................................................................................................ 30

14. Other Financial Liabilities ............................................................................................................ 31

15. Provisions .................................................................................................................................... 31

15.1. Details of movement in Other Provisions ............................................................................ 31

16. Other current liabilities ............................................................................................................... 31

17. Current borrowings ..................................................................................................................... 32

18. Revenue from operations (gross) ................................................................................................ 32

19. Other income .............................................................................................................................. 32

20. Cost of raw materials consumed ................................................................................................. 33

20. Changes in inventories of finished goods and work-in-progress ................................................ 33

21. Employee benefits expenses ....................................................................................................... 33

22. Finance costs ............................................................................................................................... 33

23. Other expenses ........................................................................................................................... 34

23.1. Payment to auditors ............................................................................................................. 34

The report is included here (Opinion) of Tax Auditors

INDIVIDUAL

FINANCIAL

STATEMENTS

NCIF – MARCH 2018

Note No.

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

ASSETS

Non-current assets

Property, plant and equipment 3 71.319.022 74.691.322 77.790.270 Intangible assets 4 1.471.830 1.009.594 381.715 Deferred tax assets 7 (2) 553.925 380.353 133.332

Total Non - Current Assets

73.344.777 76.081.269 78.305.317

Current assets

Inventories 9 13.719.496 26.144.064 45.286.905 Financial assets

(i) Trade receivables 5 5.814.915 3.171.195 3.546.840 (ii) Cash and cash equivalents 10 5.498.558 1.812.353 4.038.563

(iii) Advance income tax 7 (1) 870.615 2.044.930 979.659 (iv) Other financial assets 6 - - 127.349

Other current assets 8 487.356 2.372.976 4.405.379 Total Current Assets

26.390.940 35.545.519 58.384.695

TOTAL ASSETS 99.735.717 111.626.788 136.690.012

EQUITY AND LIABILITIES

Equity

Equity share capital 11 58.761.911 65.639.911 62.268.706 Other equity

(31.490.067) (39.645.355) (40.133.932)

Total equity

27.271.844 25.994.556 22.134.774

LIABILITIES

Non-current liabilities

Borrowings 12 57.692.905 58.505.202 54.718.271 Deferred tax liabilities 7 (2) 553.925 380.353 133.332

Total Non - Current Liabilities

58.246.830 58.885.555 54.851.603

Current liabilities

Financial liabilities

(i) Borrowings 17 691.199 12.593.607 36.349.145 (ii) Trade payables 13 10.531.765 10.607.306 17.995.173 (iii) Other financial liabilities 14 647.202 1.299.051 2.336.063

Current tax liabilities 7 (1) 128.333 52.886 15.462 Other current liabilities 16 835.443 756.551 944.312 Provisions 15 1.383.102 1.437.276 2.063.480

Total Current Liabilities

14.217.044 26.746.677 59.703.635

Total EQUITY AND LIABILITIES 99.735.717 111.626.788 136.690.012

The accompanying notes are in integral parto f these financial statements.


Individual Financial Position Statements

On March 31 2018, March 31, 2017 and April 01, 2016 (Values expressed in thousands of Colombian pesos).

_________________________________ __________________________________. Álvaro José Serrano Acuña Oscar David Ávila Garzón Legal Representative Public Accountant Professional License No. 218825-T .

Note No. For the year

ended March 31, 2018

For the year ended

March 31, 2017

INCOME

Revenue from operations (gross) 18 55.804.296 72.890.432

Other income 19 259.889 660.704

TOTAL INCOME 56.064.185 73.551.136

EXPENSES

Cost of raw materials consumed 20 (38.509.819) (56.996.585)

Changes in inventories of finished goods and work-in-progress

20 (5.290.002) (2.746.857)

Excise duty on sale of goods

(411.203) (607.787)

Employee benefits expenses 21 (10.231.099) (10.552.367)

Finance costs 22 (7.697.288) (8.543.088)

Depreciation and amortisation expenses 3,4 (3.990.699) (2.616.556)

Other expenses 23 (18.528.344) (21.287.278)

TOTAL EXPENSES (84.658.454) (103.350.518)

PROFIT BEFORE TAX (28.594.269) (29.799.382)

Tax expense

Current tax 7 (1) (128.333) (52.886)

TOTAL TAX EXPENSE (128.333) (52.886)

PROFIT FOR THE YEAR (28.722.602) (29.852.268)

Other comprehensive income - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR,

NET OF TAX (28.722.602) (29.852.268)

The accompanying notes are in integral parto f these financial statements.


Individual Income Statements

On March 31 2018 and 2017 (Values expressed in thousands of Colombian pesos).


A. Equity share capital

Number of Shares Amount

Balance as at April 1, 2016 622.687.060 62.268.706

Changes in equity share capital during the year 33.712.049 3.371.205

Balance as at March 31, 2017 656.399.109 65.639.911

Changes in equity share capital during the year (68.780.000) (6.878.000)

Balance as at March 31, 2018 587.619.109 58.761.911

B. Other Equity

Reserves and Surplus

Securities Premium Reserve

Retained Earnings

Total

Balance as at April 1, 2016 - (40.133.932) (40.133.932)

Profit for the year 30.340.845 (29.852.268) 488.577

Total Comprehensive Income for the year 30.340.845 (29.852.268) 488.577

Balance as at March 31, 2017 30.340.845 (69.986.200) (39.645.355)

Profit for the year 27.000.001 (18.844.713) 8.155.288

Total Comprehensive Income for the year 27.000.001 (18.844.713) 8.155.288

Balance as at March 31, 2018 57.340.846 (88.830.913) (31.490.067)


Statements of Changes in Individual Equity

On March 31 2018, March 31, 2017 and April 1, 2016 (Values expressed in thousands of Colombian pesos).


Year ended 'March 31,

2018

Year ended 'March 31,

2017

Cash Flows from Operating Activities

Net loss for the year ($ 28.722.602) ($ 29.852.268)

Income tax expense recognised in profit or loss 128.333 52.886 Depreciation expense for the period 3.714.107 2.552.467 Amortisation expense for the period 276.592 64.090 Net (gain)/loss foreign exchange 143.042 (3.774.887) Impairment loss recognised on inventories 409.075 1.743.148 Impairment loss recognised on trade receivables 72.328 4.440 Finance costs recognised in profit or loss 7.341.314 7.966.520 Valuation of hedge operations (647.202) (1.299.051) Gain on disposal of property, plant and equipment 80.573 678.226

11.518.162 7.987.839

Changes in working capital (Increase) Decrease in trade and other receivables (516.491) 267.263 Decrease in Current Assets 2.981.870 140.001 Increase of financial assets to net fair value (651.849) (909.663) Decrease in inventories 12.015.493 17.399.692 (Increase) Decrease in Accounts receivables to related companies

(2.199.556) 103.941

Decrease in other assets 78.065 827.131 Increase (Decrease) in trade payables and other payables 1.950.438 (9.051.411) (Decrease) Increase in Accounts Payable to related companies

(2.025.979) 674.904

Increase in taxes, charges and fees 857.677 992.712 (Decrease) Increase in Labor Obligations (179.215) 100.432 Decrease Tax paid (790.039) (994.035) Increase in provisions 125.041 262.005 Decrease in other liabilities (41.633) (201.900) Decrease in Interest paid (7.010.857) (7.667.007)

4.592.965 1.944.065

Cash Used in Operating Activities ($ 12.611.475) ($ 19.920.364)

Cash Flows from Investing Activities Payments for property, plant and equipment (422.381) (131.745) Payments for intangible assets (738.828) (691.969)

Cash Used in Investment Activities ($ 1.161.209) ($ 823.714)

Total Cash Used ($ 13.772.684) ($ 20.744.078)

Cash Flows from Financing Activities Increase in financial obligations 25.013.510 31.048.433 Payments of financial obligations (37.554.623) (46.242.615)

Proceeds from issue of equity instruments of the Company 3.000.000 3.371.205 Proceeds from issue of redeemable preference shares 27.000.001 30.340.845


Individual Cash Flow Statements

On March 31 2018 and 2017 (Values expressed in thousands of Colombian pesos).

Cash Used in Financing Activities $ 17.458.888 $ 18.517.868

NET INCREASE OF CASH AND CASH EQUIVALENTS $ 3.686.205 ($ 2.226.210)

CASH AND CASH EQUIVALENTS

AT THE BEGINNING OF THE YEAR $ 1.812.353 $ 4.038.563

AT THE END OF THE YEAR $ 5.498.558 $ 1.812.353


Notes on Individual

Financial

Statements

NCIF - 2018 y 2017 In Thousands of Colombian Pesos, except where otherwise indicated

1. Reporting Entity - General Information

The Company: HMCL Colombiana S.A.S. (hereinafter "The Company"), is a simplified joint stock company with domicile in Colombia, made up of private document No. 0000001 of General Shareholders' Meeting of April 14, 2014 at the 16th Notary´s Office of Bogotá, with indefinite duration. Its main purpose is to act as industrial user of goods and services in one or more free zones, and start sales activities on November 22, 2014. As an industrial user of goods, the company may manufacture and assemble motorcycles; market, sell and distribute motorcycles; and carry out all acts, businesses and activities that relate directly or indirectly to the achievement of the objectives above. The company may carry out the construction and adaptation of the facilities, warehouses and production plants, as well as the assembly of machinery and equipment, and other activities detailed in the chamber and commerce certificate of the Company. According to PS qualification act No 001 of June 06, 2014, issued by Zona Franca Permanente Palmaseca, User Operator of Parque Sur Free Zone, the company HMCL COLOMBIA S.A.S. Identified with TIN Not 900.723.988-9 was classified as Industrial User of Goods and Industrial Services for the period between June 6, 2014 and the September 27, 2025, taking into account the date of declaration of Parque Sur Free Zone. Through this special qualification the company acquires the following benefits and commitments:

a. Tariff of 15% on income tax for income earned as an industrial user (domestic and external markets).

b. Principle of extraterritoriality outside the customs territory (no customs duties incurred). c. VAT exemption for purchases of raw materials and supplies for production from the national

customs territory or to other industrial free zone users. d. Generation of 50 new direct jobs. e. Investments in productive real fixed assets and land of 15,000 SMMLV (Spanish acronym for

Statutory Monthly Minimum Wages). f. Settle parafiscal and social security contributions on 100% of the value of the payroll and linked

through employee contracts. This benefits and commitments were modified according to the Law 1819 of December 29, 2016. In

the previous law, the rate of income tax for users of the free zone is 20% starting to January 1,

2017.

Its main and business address is Zona Franca Conjunto Industrial Parque Sur LT 6 KM 24, Municipio Villa Rica, Cauca. The activities authorized to be developed as an Industrial User of Goods and Industrial Services are the following:

Name of the Activity Social Object Activities

Manufacturing of motorcycles

1. Manufacturing and assembly of two- and three-

wheeled motorcycles. 2. Sale and distribution of two- and three-wheeled

motorcycles manufactured and assembled in the Free Zone.

3. Carry out all the acts, business and activities permitted by the free regime, which relate directly or indirectly to the achievement of the above activities.

4. Painting of metal and/or plastic parts and welding of metal motorcycles parts.

Maintenance and repair of motorcycles

5. Repair and cleaning 6. Technical support, maintenance and repair of motor

vehicles, motorcycles and three-wheelers.

Other activities complementary to transport

7. Integral logistics and distribution, in industrial,

commercial activities and the activities of foreign trade and customs regime, such as the export and import of goods, machinery, equipment, parts, and accessories that are related to the assembly and production of motor vehicles, motorcycles or three-wheelers.

Technical testing and analysis.

8. Evidence of quality or technical support of goods to

both motorcycles, or three-wheelers or equipment and machinery for the assembly of the same.

1.1. Translated Financial Statements These financial statements and notes to the financial statements were prepared in English. All amounts are originally stated in Colombian Pesos (COP) unless otherwise noted. The financial statements of the Company have been prepared its individual financial statements in accordance with accounting and financial reporting standards accepted in Colombia-NCIF, which are based on International Financial Reporting Standards (NIIF for its acronym in Spanish), along with their interpretations, translated into Spanish and issued by the International Accounting Standards Board (IASB for its acronym in English) on December 31, 2012. Certain accounting principles applied by the Company, which conform to accounting principles generally accepted in Colombia, may not conform to accounting principles generally accepted in other countries.

2. Summary of the Main Accounting Policies

2.1. Basis of Presentation

2.1.1 Compliance Statement

The Company, in accordance with the provisions in force issued by Act 1314 of 2009 regulated by Single Regulatory Decree 2420 and 2496 of 2015 of December 14, 2015, issued by the Ministries of

Treasury and Public Credit, and of Commerce, Industry, and Tourism, has prepared its individual financial statements in accordance with accounting and financial reporting standards accepted in Colombia-NCIF, Which are based on the International Standard for Small and Medium-Sized Enterprises (SMES) as approved in 2009 by the International Accounting Standards Board (IASB).

2.1.2 Measurement Basis

The individual financial statements have been prepared based on the historical cost model, with the exception of certain financial instruments that have been measured at their fair value at the end of each reporting period, applying the principle of causation (accumulation and/or accruals) except for information on cash flows. These individual financial statements are presented in Colombian pesos (COP $), which is the functional currency of the Company. All the information is presented in thousands of pesos and has been rounded to the nearest thousand unit (COP $ 000), except where otherwise indicated.

2.1.3 Relative Importance and Materiality

The company presents the economic facts according to their relative importance or materiality. For the purposes of disclosure, a transaction, act or operation is material when, due to its amount or nature, its knowledge or lack of knowledge, considering the circumstances that surround it, affects the decisions that may be taken or evaluations that users of the accounting information can carry out.

In the preparation and presentation of the financial statements, the materiality of the amount was determined with regard to, among others, the total assets, the current and non-current assets, the total and non-current liabilities, the equity or income for the year, as appropriate. In general terms, any item that exceeds 5% with respect to a certain total of the aforementioned, will be considered as material.

2.1.4 Accounting Period

The company has defined, in its statutes, to perform the annual closing on December 31st of each year, to prepare and submit the general purpose financial statements at the General Shareholders' Meeting for approval.

2.2. Significant Accounting Policies The following significant accounting policies have been consistently applied to all periods submitted in these individual financial statements and in preparing the initial statement of financial position under NCIF on January 1, 2015 for purposes of NCIF transition, unless otherwise stated.

2.2.1. Foreign Currency Transactions

2.2.1.1. Functional and Presentation Currency

The items included in the financial statements are submitted in the currency of the economic environment in which the Company operates (functional currency), which for HMCL Colombia S.A.S. is the Colombian peso.

2.2.1.2. Transactions and Balances

Transactions in foreign currency are initially recognized by the Company at the exchange rate of its functional currency, on the date the transaction meets the criteria for its recognition.

Monetary assets and liabilities denominated in foreign currency are converted to the closing exchange rate of the functional currency in force on the closing date of the reporting period.

Differences arising from the settlement or conversion of monetary items are recognized in the Company's income statement.

The representative market exchange rate at March 31, 2018 in Colombian pesos was $ 2.780,47 (2017 $ 2.880,24 and at April 1, 2016 $ 3.000,63)

2.2.2 Property, Plant and Equipment

Property, plant and equipment are measured at cost less accrued depreciation and/or accrued impairment losses, if any. The cost includes disbursements attributable to the acquisition of the asset, expenditures that are indispensable and that are related to the construction of the asset and any other directly attributable cost for the asset to be in the conditions for use, foreseen by the Administration,

For significant property, plant, and equipment components that must be replaced periodically, the Company derecognizes the replaced component and recognizes the new component with its corresponding shelf life and depreciation.

The property, plant, and equipment are withdrawn at the time of disposal or when no economic benefits are expected from their use or subsequent disposal. Any gain or loss arising at the time of removal of the asset (calculated as the difference between the proceeds from the sale and the value of the asset in the books) is included in the income statement in the year in which the asset is withdrawn. The estimated shelf lives for the current and comparative periods are as follows:

Class / Category Shelf Life

(Years)

Constructions and Buildings 30

Machinery and Equipment 15

Office Equipment 5

Computer and Communication Equipment 5

Fleet and Transportation Equipment 10

Depreciation is recognized in the income statement based on the straight-line depreciation method of the estimated shelf lives of each part of a property, plant, and equipment item, because they more accurately reflect the expected consumption pattern of the future economic benefits related with the asset. Land is not depreciated. The shelf life, depreciation methods, and residual values are reviewed and adjusted at the closing date of the reporting period, if appropriate.

2.2.3 Recognized Income from Ordinary Activities

Income from ordinary activities is recognized to the extent that economic benefits are likely to flow to the Company and a reliable measurement thereof can be made, regardless of when the payment is made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined payment terms and excluding taxes. Revenues are reduced by discounts, rebates, and other similar allowances estimated for customers. 2.2.3.1. Sale of Goods Revenue from ordinary activities from the sale of motorcycles is recognized when the significant risks and the inherent advantages of ownership have been substantially transferred to the buyer, which usually occurs at the time of delivery. 2.2.3.2. Interest For all financial instruments measured at amortized cost, interest earned is recorded using the effective interest rate method, which is the interest rate that accurately establishes the future flow of payments or cash receipts estimated over the expected period of validity of the financial instrument, or a shorter period, as the case may be, with respect to the asset's net carrying amount. Interest earned is included on the financial income line on the income statement.

2.2.4 Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost of inventories includes disbursements in the acquisition of inventories and other costs incurred in moving them to their current location and conditions. The net realizable value represents the estimated selling price in the normal course of business less the estimated termination costs and costs required for sale. The cost of inventories is determined using the weighted average method. Significant parts and permanent maintenance equipment that the Company identifies and uses for more than one fiscal year are classified as property, plant, and equipment items.

2.2.5 Leasing

2.2.5.1. Determining Whether an Agreement Contains a Lease When the Company enters into a contract, it determines whether the agreement corresponds to, or contains a lease based on the essence of the agreement at the date of its conclusion, whether compliance with the agreement depends on the use of one or more specific assets, or if the agreement grants the right to use the asset, even if such right is not implicitly specified in the agreement. 2.2.5.2. The Company as a Lessee Leases in which the lessor retains a significant part of the risks and rewards of ownership are classified as operating leases. Operating lease payments (net of any incentive received from the

lessor) are recognized as an operating lease expense in the income statement on a straight-line basis over the lease period. The Company takes on lease certain property, plant, and equipment items. Property, plant, and equipment leases in which the Company substantially has all the risks and benefits derived from the property are classified as financial leases. Financial leases are capitalized at the lower of the fair value of the leased asset and the present value of the minimum lease payments at the inception of the lease. Each lease payment is distributed between the liability and the financial burden. The corresponding lease obligations, net of financial charges, are included in accounts payable called loans. The interest portion of the financial burden is recognized as financial costs in the income statement during the period of the lease, in order to obtain a constant periodic interest rate on the debt pending amortization in each period. Property, plant, and equipment acquired through financial leasing are depreciated throughout their shelf lives. However, if there is no reasonable assurance that the Company will obtain the property at the end of the lease term, the asset will depreciate during the shorter period between its estimated shelf life or the lease term.

2.2.6. Intangibles

Intangible assets acquired separately are initially measured at cost, that is, those incurred for their acquisition and to put the program and/or specific license into use. After initial recognition, intangible assets are accounted for at cost less accrued depreciation and any accrued impairment losses, if any. Subsequent disbursements are capitalized only when the future economic benefits incorporated in the specific asset related to such disbursements increase. The estimated finite shelf lives for the current and comparative periods are as follows:

Class / Category Shelf Life

(Years)

Licenses and Computer Programs

3 - 5

Intangible assets with finite shelf lives are amortized on a straight-line basis over their estimated shelf lives and are reviewed to determine whether they had any impairment in value to the extent that there is any indication that the intangible asset may have suffered such impairment. The amortization period and method for an intangible asset with a finite shelf life are reviewed at least at the close of each reporting period. Changes in the expected shelf life or the expected consumption pattern of the asset are accounted for when the amortization period or method is modified, as appropriate, and are treated prospectively as changes in accounting estimates. The amortization expense of intangible assets with finite shelf lives is recognized in the income statement. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net ingredient from the sale and the carrying amount of the asset, and are recognized in the income statement when the respective asset is derecognized.

2.2.7. Prepaid Expenses

Expenses paid in advance correspond to insurance policies, goods, and services that provide rights and benefits in subsequent periods. These costs are amortized over a period of time during which it is expected to obtain the benefits associated therewith, and are recognized as an expense in the income statement.

2.2.8. Impairment of Non-Financial Assets

At each closing date of the reporting period, the Company evaluates whether there is any indication that an asset may present impairment loss. If such an indication exists, or when an annual impairment test for an asset is required, the Company estimates the recoverable amount of that asset. The recoverable amount of an asset is the higher of the fair value less sales costs, be it from an asset or from a cash-generating unit, and its value in use; and is determined as an individual asset, unless the asset does not generate cash flows which are substantially independent of those of other assets or groups of assets. When the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount, the asset is considered impaired and its value is reduced to its recoverable amount. When assessing the in use value of an asset, the estimated cash flows are discounted at their present value through a pre-tax discount rate which reflects current market assessments of the time value of money and the specific risks of the asset. For the determination of fair value less sales costs, recent transactions of the main market, if any, are taken into account. If this type of transactions can not be identified, a valuation model that is appropriate, taking into account the most advantageous market, is used. Impairment losses relating to continuing transactions are recognized on the income statement in those categories of expenses that correspond to the impairment of the asset. The possible reversal of impairment losses on nonfinancial assets suffering an impairment loss is reviewed on all dates on which financial information is submitted. The reversal is limited in such a way that the carrying amount of the asset does not exceed its recoverable amount, nor does it exceed the carrying amount that would have been determined, net of depreciation, if an impairment loss had not been recognized for that asset in previous years. Such reversal is recognized in the income statement.

2.2.9. Cash

Cash includes cash in safe and bank deposits.

2.2.10. Financial Instruments

2.2.10.1. Financial Assets All financial assets are initially recognized at fair value plus, in the case of financial assets that are not recognized at fair value through gain or loss, the transaction costs attributable to the acquisition of the financial asset. All regular purchases and sales of financial assets are recognized at the date of the transaction, that is, the date on which the Company undertakes to acquire the asset. Regular purchases and sales of

financial assets are those that require delivery of assets within the time frame generally established by the regulation. The Company's financial assets are comprised of cash and accounts receivable. Accounts receivable are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition. Such assets are recognized at their amortized cost using the effective interest method, less any impairment. Gains and losses are recognized in the income statement when receivable items are derecognized or they lose impairment value, as well as through the amortization process. The remaining accounts receivable are recorded for the amount delivered and do not accrue interest. At the end of each period, the Company evaluates whether there is any evidence that a financial asset is impaired in value; if yes, the impairment is included in the respective account. 2.2.10.2. Financial Liabilities All financial liabilities are initially recognized at fair value and, in the case of loans and accounts payable accounted for at amortized cost, the transaction costs attributable to the acquisition of the financial liability. Financial liabilities include trade accounts payable and other accounts payable, debts, and interest-bearing loans. The Company derecognizes a financial liability when its contractual obligations are canceled or expire. When an existing financial liability is replaced by another from the same lender based on substantially different terms, or the terms of an existing liability are substantially modified, this change or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in gains or losses.

2.2.11. Derivative Financial Instruments and Hedge Accounting

2.2.11.1. Derivative Financial Instruments The Company uses forward hedging contracts to manage its exposure to currency risk in foreign currency. Such financial instruments are recognized at fair value on the date the derivative contract is made and are subsequently measured at their fair value at the end of the reporting period. The resulting gain or loss is immediately recognized in gains or losses. 2.2.11.2. Fair Value Hedges Changes in the fair value of derivatives that are designated and qualified as fair value hedges are recognized immediately in gains or losses, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognized in gains or losses in the item relating to the hedged item. Hedge accounting is discontinued when the Company revokes the hedging relationship, the hedging instrument expires or is sold, terminated, or exercised, or fails to comply with the criteria for hedge accounting. Any fair value adjustments to the carrying amount of the hedged item derived from the hedged risk is amortized in gains or losses as of that date.

2.2.12. Provisions

Provisions for goods and services and litigation are recognized when the Company has a present obligation, whether legal or implied, as a result of past events; it is probable that an outflow of resources that incorporates economic benefits to cancel the obligation shall be necessary, and the amount may be estimated reliably. 2.2.12.1. Warranties Provisions for warranty-related costs are recognized when the product is sold. The initial recognition is based on the best estimate, by the Administration, of the disbursements required to settle the obligation. The initial estimate of costs relating to guarantees is reviewed annually.

2.2.13. Benefits to Employees

2.2.13.1. Defined Contribution Plans A defined contribution plan is a post-employment benefit in which an entity pays fixed contributions to a separate entity, and where it will have no legal or constructive obligation to pay additional amounts. Obligations for the payment of contributions to defined pension plans are recognized as an expense for employee benefits in statements in the periods in which the services are rendered by the employees. Contributions to a defined contribution plan, that expire more than 12 months after the end of the period in which the employees render the services, are discounted to their present value. 2.2.13.2. Defined Termination Benefits Termination benefits are recognized as an expense when the Company has committed to a formal detailed plan, either to terminate the employee's contract before the normal retirement age, or to provide termination benefits as a result of an offer made to encourage voluntary resignation. Termination benefits in the case of voluntary resignation are recognized as an expense if the Company has made an offer encouraging the voluntary resignation, and it is likely that the offer is accepted and the number of employees that can be reliably estimated. 2.2.13.3. Short Term Benefits to Employees Short-term employee benefit obligations are measured on an undiscounted basis and are recognized as expenses as the related service is provided.

2.2.14. Current and Deferred Income Tax

The income tax expense for the period comprises current and deferred income tax. Such taxes are recognized in the income statement. 2.2.14.1. Current Income Tax The current income tax charge is calculated based on the tax laws enacted or substantially enacted at the date of the statement of financial position; for the case of the Company for belonging to the special regime for Free Zones, the applicable rate is 15%, and 20% as of 2017. Management periodically evaluates the positions assumed on filed income tax returns with respect to situations where tax laws are subject to interpretation. The Company sets up provisions on the amounts it expects to pay to the tax authorities when applicable.

2.2.14.2. Deferred Income Tax Deferred income tax is recognized using the liability method on temporary differences arising between the tax bases of assets and liabilities and their respective values recorded in the financial statements. However, no deferred income tax liabilities are recognized if they arise from the initial recognition of goodwill or the initial recognition of an asset or a liability in a transaction that does not correspond to a business combination, and which does not affect either the profit, or the accounting or taxable loss at the time of the transaction. Deferred income tax assets are recognized only to the extent that future tax benefits against which temporary differences can be used are likely to occur. Deferred income taxes are determined using tax rates that have been enacted on the date of the statement of financial position and that are expected to be applicable when the deferred income tax assets are carried out or the income tax liabilities are paid. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when deferred tax assets and income liabilities refer to income taxes corresponding to the same tax authority.

2.2.15. Contingent Assets and Liabilities

In the normal course of transactions, the Company may generate contingent assets and liabilities understood as those rights of a possible nature arising as a result of past events and whose existence shall be confirmed only by the occurrence or non-occurrence of one or more uncertain future events which are not wholly under the control of the Company. 2.2.15.1. Contingent Liabilities Contingent liabilities are recognized in the financial statements when it is virtually certain or probable that the Company has an outflow of resources that incorporate economic benefits to settle the obligation, and the amount has been estimated reliably. In case the contingency is possible, the respective disclosure is made in the financial statements. 2.2.15.2. Contingent Assets The Company does not recognize any type of contingent assets until the same loses its contingent nature.

2.2.16. Social Capital

Ordinary shares are classified as equity.

2.2.17. Cash Flow Statements

The Company prepares the cash flow statement under the indirect method, based on net income for the year and ending on the cash (See Note 2.2.9).

2.2.18. Classification of Current and Non-Current Items

The Company submits the assets and liabilities in the statement of financial position classified as current and non-current. An asset and a liability are classified as current when the Company expects to realize or settle it in its normal operating cycle, respectively, or twelve months after the reporting period and maintain it for trading purposes.

If the asset is cash or equivalent to unrestricted cash and the liability does not have an unconditional right to defer settlement for a minimum period of twelve months, respectively, they are also classified as current. All other assets and liabilities are classified as non-current, including deferred tax, in all cases.

2.2.19. Balance Netting

Debtor and creditor balances arising from transactions that, contractually or by requirement of a legal rule, contemplate the possibility of compensation and it is intended to settle them for their net amount, or to realize the asset and proceed to pay the liability simultaneously, only offset each other and consequently are submitted in the Statement of Financial Position for their net value.

3. Property, plant and equipment

Freehold land

Buildings Plant and equipment

Furniture and fixtures

Vehicles Data

Processing equipment

Total

At cost

At April 1, 2016 9.648.531 47.915.579 19.628.406 1.154.304 1.042.912 760.892 80.150.624

Additions - - - - 120.128 11.617 131.745

Disposals - - 486.558 109.343 82.325 - 678.226

At March 31, 2017 9.648.531 47.915.579 19.141.848 1.044.960 1.080.715 772.509 79.604.142

Additions - 49.237 - 217.187 152.075 20.220 438.719

Disposals - - - - 87.749 - 87.749

Less:Adjustments - 430.888 (430.888) - - - -

At March 31, 2018 9.648.531 48.395.704 18.710.960 1.262.147 1.145.041 792.729 79.955.112

Accumulated depreciation At April 1, 2016 - 1.022.955 929.075 74.737 171.102 162.486 2.360.354

Depreciation expense - 1.291.736 761.765 264.771 42.338 191.857 2.552.467

At March 31, 2017 - 2.314.691 1.690.840 339.508 213.439 354.343 4.912.820

Depreciation expense - 1.766.407 1.304.449 278.839 90.987 273.424 3.714.107

Less:Adjustments - 34.272 - - (25.109) - 9.163

At March 31, 2018 - 4.115.370 2.995.289 618.347 279.317 627.767 8.636.090

Carrying amount At April 1, 2016 9.648.531 46.892.624 18.699.331 1.079.567 871.810 598.406 77.790.270

At March 31, 2017 9.648.531 45.600.888 17.451.008 705.452 867.276 418.166 74.691.322

At March 31, 2018 9.648.531 44.280.334 15.715.671 643.800 865.724 164.962 71.319.022

4. Intangible assets

Computer softwares

Total

At cost At April 1, 2016 480.492 480.492

Additions 691.969 691.969

At March 31, 2017 1.172.461 1.172.461

Additions 738.828 738.828

At March 31, 2018 1.911.289 1.911.289

Accumulated amortisation At April 1, 2016 98.777 98.777

Amortisation expense 64.090 64.090

At March 31, 2017 162.867 162.867

Amortisation expense 276.592 276.592

At March 31, 2018 439.459 439.459

Carrying amount

At April 1 2016 381.715 381.715

At March 31, 2017 1.009.594 1.009.594

At March 31, 2018 1.471.830 1.471.830

5. Trade receivables

As at 31 March 2018 As at 31 March 2017 As at 1 April 2016

Current Non Current

Current Non Current

Current Non Current

Trade receivables

(a) Secured, considered good 4.523.759 - 2.901.504 - 3.219.131 -

(b) Unsecured, considered good 1.290.921 - 179.205 - 339.865 -

(c) Doubtful 112.680 - 130.604 - 23.522 -

Less: Allowance for Credit Losses (112.445) - (40.118) - (35.678) -

TOTAL 5.814.915 - 3.171.195 - 3.546.840 -

Of the above, trade receivables from:

- Related Parties 2.250.515 - 50.959 - 154.901 -

- Others 3.564.400 - 3.120.236 - 3.391.939 -

TOTAL 5.814.915 - 3.171.195 - 3.546.840 -

6. Other financial assets

As at As at As at

March 31, 2018 March 31, 2017 April 1, 2016

Current Derivatives instruments carried at fair value - - 127.349

Total - - 127.349

7. Current Tax and Deferred Tax

7.1. Net Current tax

As at As at As at


Tax assets Advance income tax 870.615 2.044.930 979.659

Less : Provision for taxation 128.333 52.886 15.462

Total 742.282 1.992.044 964.197

7.2. Deferred tax (assets)/ liabilities (net)

As at As at As at


Deferred tax liabilities on

In relation to property plant and equipments and intangible assets 544.369 265.679 20.905

Financial assets carried at fair value through profit or loss 9.556 - -

Others -

114.674 112.427

Deferred tax expense 553.925 380.353 133.332

Less: Deferred tax assets on Tax shields 553.925 380.353 133.332

Deferred tax income 553.925 380.353 133.332

Net Deferred tax - - -

Amounts on which deferred tax asset has not been created: Deferred tax assets have not been recognised of following items, because it is not

probable that future taxable profit will be available against which the Company can

use the benefit.

As at 31, March 2018

As at 31, March 2017

As at 1 April 2016

As at 1 April 2015

Unused Tax losses (revenue in nature) 27.337.953 20.769.512 22.977.745 3.824.987

Total 27.337.953 20.769.512 22.977.745 3.824.987

8. Other current assets

As at As at As at


Current Unsecured, considered good

Prepaid expenses 100.317 103.786 111.475

Other advances 386.881 461.477 1.280.919

Balance with Government authorities - Excise duty 158 - -

- VAT/ sales tax - 1.807.713 3.012.985

Total 487.356 2.372.976 4.405.379

9. Inventories

As at As at As at


Raw materials 3.009.609 10.861.926 33.034.515

Goods in transit of raw materials 8.069.492 7.271.262 5.104.699

Work in progress (Two wheelers) 230.184 1.890.394 1.463.687

Finished goods Two wheelers 2.215.852 5.859.109 3.525.493

Stores and spares 194.359 261.373 2.158.511

Total 13.719.496 26.144.064 45.286.905

The cost of inventories recognised as an expense during the year in respect of continuing operations was COP $43.799.821 (31 March, 2017 COP $59.743.442). The cost of inventories reconised as an expense include 0 is respect of write – down of inventory to net realizable value and has been reduced by 0 is respect of the reversal of such write downs. Previous write - downs have been reversed as a result of increased sales price in certain market. Out of the total inventories, COP $ 13.719.496 (31 March, 2017 COP $26.144.064, 1 April, 2016 COP $45.286.905), the carrying amount of inventories carried at fair value less costs to sell (31 March, 2016 $0, 1 April, 2016 $0).

10. Cash and cash equivalents

As at As at As at


Cash on hand 8.980 9.201 3.000

Balances with banks

In current accounts 5.489.578 1.803.152 4.035.563

In deposit accounts - - -

Cash and cash equivalents 5.498.558 1.812.353 4.038.563

11. Equity share capital


No. of shares Amount No. of shares Amount No. of shares Amount

Authorised:

Equity shares of $100 each with voting rights 800.000.000 80.000.000 800.000.000 80.000.000 800.000.000 80.000.000

800.000.000 80.000.000 800.000.000 80.000.000 800.000.000 80.000.000

Issued, Subscribed and Fully Paid:

Equity shares of $100 each with voting rights 523.907.058 52.390.706 622.687.058 62.268.706 622.687.058 62.268.706

Equity shares of $100 each with differential voting rights

63.712.051 6.371.205 33.712.051 3.371.205 - -

587.619.109 58.761.911 656.399.109 65.639.911 622.687.058 62.268.706

Issued, Subscribed and Partly Paid: - - - - - -

Shares to Subscribe 212.380.891 21.238.089 143.600.891 14.360.089 177.312.942 17.731.294

The company through its general shareholders' meeting held on March 8, 2018 approved the issue and subscription of 30,000,000 shares with a par value of 100 pesos per share, increasing the subscribed capital value of $ 3,000,000 and a premium in the placement of shares of 900 pesos per share equivalent to $ 27,000,000; representing a total capitalization of $ 30,000,000. In addition, the company decided to make a capital reduction to wipe losses of $ 9,878,000 over the capital contributed by the shareholder Woven Holdings LLC. With this, the aggregate capital of the company is recorded as COP $ 58,761,911 as of March 31, 2018 and the shareholding composition is as follows:

Shareholder Value in Pesos No. of shares Percentage

of participation

Percentage according to political and

economic rights (fully

diluted basis)

HMCL Netherlands B.V.

31.757.040 317.570.400

62% 68%

Ordinary shares

4.719.315 47.193.146 CCPS shares

Woven Holdings LLC

20.633.666 206.336.658

38% 32% Ordinary

shares

1.651.890 16.518.905 CCPS shares

TOTAL $ 58.761.911 587.619.109 100% 100%

The shares with an annual fixed dividend obligatorily convertible into ordinary shares “CCPS” will have a fixed non-cumulative annual dividend of 5%. The CCPS Will be compulsorily convertible into ordinary shares of the Company within ten (10) years from the date of issuance. This period may be modified by the decision of the Board of Directors at it may deem necessary. Each CCPS will be compulsorily converted into ten (10) ordinary shares at the time of conversion. For this conversion, the Board will issue the corresponding rules for the subscription of CCPS and will instruct the legal representative to inform the CCPS holders of the fulfilment of the term and the corresponding conversion of the CCPS into ordinary shares. No further authorization will be required from the CCPS holders for the conversion. Each CCPS will grant ten (10) voting right per share, to the CCPS holders on a fully diluted basis, in the General Assembly of Shareholders. In addition, the CCPS would have the non-cumulative right to participate in the profits of the Company in the same proportion established as voting rights in this article (fully diluted basis). At the time of a liquidation event of the Company, CCPS will be entitled to the liquidation proceeds, at par with the ordinary shares of the Company, on a fully diluted basis.

12. Non – Current borrowings

Rate of Interest

Maturity As at 31

March 2018 As at 31

March 2017 As at 1

April 2016

Unsecured Borrowings - at amortised Cost

Bonds / Debentures

Term Loans

(1) From Banks

Bancolombia, Preoperativos DTF 2022 16.211.341 16.181.358 16.286.293

Long term maturities of Finance Lease Obligations

Banco de Occidente, Cars DTF 2018 - 384.911 546.809

Banco de Occidente, Datacenter DTF 2018 - 372.165 590.076

Banco de Occidente, Cars DTF 2019 55.021 102.314 144.386

Bancolombia, Cars DTF 2021 75.268 88.725 -

Bancolombia, Machinery DTF 2024 16.508.863 16.515.471 -

Bancolombia, Building DTF 2028 24.842.412 24.860.258 37.150.707

Total Unsecured Borrowings 57.692.905 58.505.202 54.718.271

Total Borrowings non current 57.692.905 58.505.202 54.718.271

12.1. Details of long term borrowings of the Company

Description of the instrument Currency of Loan

Effective Interest

Rate used for

Discounting Cashflows

Coupon Rate

Number of Installments

Date of Redemption

(or) Conversion

Amortised cost

as at 31 March 2018

Amortised cost

as at 31 March 2017

Amortised cost

as at 1 April 2016

Term loans from banks:

Bancolombia 44558295 Preoperativo COP DTF 5,40% 84 04/05/2022 2.035.382 2.036.291 2.057.289






Long-term maturities of finance lease obligations:

Boccidente 180-00104386 Vehículo COP DTF 4% 48 28-dic-18 39.603 55.452















Boccidente 180-00109352 Datacenter COP DTF 4% 36 10-dic-18 372.165 590.076

Boccidente 180-00111097 Vehículo COP DTF 5% 36 29-mar-19 36.329 67.588 95.391

Boccidente 180-00111713 Vehículo COP DTF 5% 36 31-mar-19 18.692 34.726 48.995

Bancolombia 191737 Vehículo COP DTF 6% 60 23-ago-21 75.268 88.725 0

Bancolombia 179153 Maquinaria COP DTF 4,70% 96 28-jun-24 16.508.863 16.515.471 0

Bancolombia 177862 Edificaciones COP DTF 5,35% 144 21-oct-28 24.842.412 24.860.258 37.150.707

Total Unsecured 57.692.905 58.505.202 54.718.271

13. Trade Payables


Current Non

Current Current

Non Current

Current Non

Current

Trade payable - Micro ans small enterprises

593.997 - 708.010 - 494.759 -

Trade payable - Other than micro ans small enterprises

9.937.768 - 9.899.296 - 17.500.414 -

Total trade payables 10.531.765 - 10.607.306 - 17.995.173 -

14. Other Financial Liabilities

As at 31 March 2018

As at 31 March 2017

As at 1 April 2016

Other Financial Liabilities Measured at Fair value

a) Derivatives designated and effective as hedging instruments 647.202 1.299.051 2.336.063

Total other financial liabilities 647.202 1.299.051 2.336.063

15. Provisions


Current Non-

Current Current

Non- Current

Current Non-

Current

Provision for employee benefits 389.899 - 569.114 - 468.682 -

Other Provisions

Warranty 993.203 - 868.162 - 528.849 -

Other Provisions - - 0 - 1.065.949 -

Total Provisions 1.383.102 - 1.437.276 - 2.063.480 -

15.1. Details of movement in Other Provisions

Warranty claims

Onerous contracts

Other Provisions

Total

Balance at 1 April 2016 528.849 468.682 1.065.949 2.063.480

Additional provisions recognised 339.313 100.432 - 439.745

Amounts used during the period - - (1.065.949) (1.065.949)

Balance at 31 March 2017 868.162 569.114 - 1.437.276

Balance at 1 April 2016 868.162 569.114 - 1.437.276

Additional provisions recognised 125.041 - - 125.041

Amounts used during the period - (179.215) - (179.215)

Balance at 31 March 2017 993.203 389.899 - 1.383.102

16. Other current liabilities

As at 31 March 2018

As at 31 March 2017

As at 1 April 2016

Current Non-

Current Current

Non- Current

Current Non-

Current

Advances received from customers 301.672 - 343.304 - 545.204 -

Taxes payable (other than income taxes) 533.771 - 413.247 - 399.108 -

TOTAL OTHER LIABILITIES 835.443 - 756.551 - 944.312 -

17. Current borrowings

As at 31 March 2018

As at 31 March 2017

As at 1 April 2016

B. Unsecured Borrowings

(1) From Banks 691.199 12.593.607 36.349.145

Total Unsecured Borrowings 691.199 12.593.607 36.349.145

Total Current Borrowings 691.199 12.593.607 36.349.145

18. Revenue from operations (gross)

For the year ended

March 31, 2018 For the year ended

March 31, 2017

Sale of products Two wheelers 50.693.095 72.301.100

50.693.095 72.301.100

Income from services Services - others 3.219 4.756

3.219 4.755

Other operating revenue Miscellaneous income 5.110.112 584.576

5.110.112 584.576

Total 55.806.426 72.890.432

19. Other income

For the year ended


March 31, 2017

Interest income on financial assets carried at amortised cost

249.981 432.350

Other non-operating income - 225.453

Profit on sale of property, plant and equipments

9.908 2.901

Total 259.889 660.704

20. Cost of raw materials consumed

For the year ended


March 31, 2017

Raw materials and components consumed:

Opening stock 18.394.561

38.139.214

Add: Purchase of raw materials and components 31.388.718 37.251.932

49.783.279 75.391.146

Less: closing stock 11.273.460 18.394.561

38.509.819 56.996.585

20. Changes in inventories of finished goods and work-in-progress

For the year ended


March 31, 2017

Opening stock Two wheelers 5.845.644 3.525.493

Work in progress 1.890.394 1.463.688

7.736.038 4.989.181

Closing stock Two wheelers 2.215.852 5.845.644

Work in progress 230.184 1.890.394

2.446.036 7.736.038

Net (increase)/ decrease 5.290.002 2.746.857

21. Employee benefits expenses

For the year ended


March 31, 2017

Employee benefits expenses

Salaries and wages 8.153.150 7.848.557

Contribution to provident and other funds 1.332.675 1.565.108

Staff welfare expenses 745.274 1.138.702

Total 10.231.099 10.552.367

22. Finance costs

For the year ended


March 31, 2017

Interest expenses 7.341.314 7.966.520

On others 355.974 576.568

Total 7.697.288 8.543.088

23. Other expenses

For the year ended


March 31, 2017

Packing, forwarding, freight etc. 1.207.655 1.753.388

Power and fuel 168.814 208.682

Rent 316.289 282.985

Repairs and maintenance 68.803 119.247

Insurance charges 136.293 -

Rates and taxes 384.063 379.263

Royalty 1.017.774 1.448.290

Advertisement and publicity 6.803.950 5.202.186

Travelling Expenses 691.560 761.570

Subcontracting, Hire and Service Charges 3.950.819 7.149.204

Donations and affiliations 87.278 75.873

Payment to auditors 101.104 87.446

Legal and other professional costs 1.124.208 995.762

Net loss / (gain) on Derivative contracts 1.409.112 5.468.606

Net loss / (gain) on foreign currency transactions net off Derivative gain/loss (other than considered as finance costs)

143.042 (3.774.887)

Loss on property, plant and equipmemts sold/discarded 2.733 25.798

Provision for doubtful debts 205.086 30.664

Miscellaneous expenses 709.761 1.073.201

Total 18.528.344 21.287.278

23.1. Payment to auditors

For the year ended


March 31, 2017

a) As Statutory Audit

-Audit fee 101.104 87.446 101.104 87.446

24. Going Concern

The company is in the growth phase, seeking to position the brand in the national and international market and in this way to get closer to the fulfillment of the installed capacity. For this reason, the company are making investments in the brand, improvement the market share, allowing our consumers to know more about of our motorcycles. It should be noted that the company is aligned with the projections of established losses. According with the note 11 (Equity share capital), the company received a capitalization of the COP 30.000.000 to support the cash flow.

Documents

Individual Financial Statements · HMCL Colombia S.A.S. Individual Financial Statements under accounting standards and financial information for the years ending on March 31, 2018