Notes to Accounts of Nalwa Sons Investments Ltd.

Mar 31, 2025

e) Provisions and Contingent Liabilities

Provision is recognized when the Company has a present obligation as a result of past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its present value and are determined based on
best estimate of the expenditure required to settle the obligation at the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot
be made.

f) Tax Expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax and deferred
tax is recognized in the Profit and Loss except when it relates to items that are recognized in Other Comprehensive
Income.

Current tax

Current tax is the amount of expected tax payable based on the taxable profit for the year as determined in
accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961.

Deferred tax

Deferred tax is recognized using the Balance Sheet approach. It represents temporary differences between the
carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences.
Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference
arises from the initial recognition of goodwill. The carrying amount of deferred tax assets is reviewed at the end
of each reporting year and reduced to the extent that it is no longer probable that sufficient taxable profits will
be available to allow all or part of the asset to be recovered.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as a Deferred tax asset if there is convincing
evidence that the Company will pay normal income tax in future years. Accordingly, MAT is recognized as an asset
in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting year.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

g) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.

(i) Financial Assets

The Company classifies its financial assets in the following measurement categories:

> Those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss).

> Those measured at amortized cost.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow
characteristics and the Company''s business model for managing them.

Initial recognition and measurement

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to
give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial
assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective
of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order
to generate cash flows. The business model determines whether cash flows will result from collecting contractual
cash flows, selling the financial assets, or both.

Financial assets classified and measured at amortized cost are held within a business model with the objective to
hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair
value through OCI are held within a business model with the objective of both holding to collect contractual cash
flows and selling.

Subsequent measurement

For purposes of subsequent measurement financial assets are classified in following categories:

> Financial assets at amortized cost

> Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains
and losses (debt instruments)

> Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)

> Financial assets at fair value through profit or loss

Financial assets at amortized cost

A ''financial asset'' is measured at the amortized cost if both the following conditions are met:

Business Model Test: The objective is to hold the financial asset to collect the contractual cash flows (rather than
to sell the instrument prior to its contractual maturity to realize its fair value changes) and;

Cash flow characteristics test: The contractual terms of the financial asset give rise on specific dates to cash flows
that are solely payments of principal and interest on principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial assets are subsequently
measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the
rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or
a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the
effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms
of the financial instrument but does not consider the expected credit losses. The EIR amortization is included in
other income in profit or loss. The losses arising from impairment are recognized in the profit or loss. This category
general applies to trade and other receivables.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes
in fair value recognized in the statement of profit and loss.

Financial assets designated at fair value through Other Comprehensive Income (OCI)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial
Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by¬
instrument basis. Equity instruments which are held for trading and contingent consideration recognized by an
acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other
income in the statement of profit and loss when the right of payment has been established, except when the
Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such
gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment
assessment.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets)
is primarily derecognized (i.e. removed from the Company''s statement of financial position) when:

> The rights to receive cash flows from the asset have expired, or

> the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to
pay the received cash flows in full without material delay to a third party under a "pass through" arrangement
and either;

¦ the Company has transferred substantially all the risks and rewards of the asset, or

¦ the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When
it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control
of the asset, the Company continues to recognize the transferred asset to the extent of the Company''s continuing
involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the right and obligations that the Company has retained.

Impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses (ECL) model for measurement and
recognition of impairment loss on the following financial asset and credit risk exposure

> Financial assets measured at amortized cost;

> Financial assets measured at fair value through other comprehensive income (FVTOCI);

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all
the cash flows that the Company expects to receive, discounted at an approximation of the original effective
interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible
within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the
remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

The Company follows "simplified approach" for recognition of impairment loss allowance on:

> Trade receivables or contract revenue receivables without significant financial element;

> All lease receivables resulting from the transactions within the scope of Ind AS 116 -Leases

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The
Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables.
The provision matrix is based on its historically observed default rates over the expected life of trade receivable
and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are
updated and changes in the forward looking estimates are analyzed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the
statement of profit and loss. This amount is reflected under the head ''other expenses'' in the statement of profit
and loss.

(ii) Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans
and borrowings, and payables, net of directly attributable transaction costs. All financial liabilities are recognized
initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction
costs. The Company financial liabilities include trade payables, liabilities towards services, and other payables.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

> Financial liabilities at fair value through profit or loss

> Financial liabilities at amortized cost (loans and borrowings)

Financial liabilities at Fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified
as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes
derivative financial instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in IND AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not
subsequently transferred to profit and loss. All other changes in fair value of such liability are recognized in the
statement of profit or loss. The Company has not designated any financial liability as at fair value through profit
and loss.

Financial liabilities at Amortized cost

After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost using the
Effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the Effective interest rate amortization process. Amortized cost is calculated by
taking into account any discount or premium on acquisition and fees or costs that are an integral part of the
Effective interest rate. The Effective interest rate amortization is included as finance costs in the statement of
profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

Financials assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is
a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net
basis, to realize the assets and settle the liabilities simultaneously.

h) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus
element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effect of all potentially dilutive equity shares.

3. Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025.
MCA has not notified any new standard or amendment to the existing standards applicable to the company.

Notes:

(i) During the year the face value of Equity Shares of Jindal Saw Limited was split from face value of Rs 2 to face
value of Rs 1 per share.

(ii) # The Company holds Non-Convertible Preference Shares (NCPRS) that were originally scheduled for redemption
in the financial year 2024-25 & 2025-26. Pursuant to a revision in the terms of these instruments, the NCPRS are
now redeemable after 20 years from their respective dates of allotment. In accordance with the applicable
requirements of Indian Accounting Standards (Ind AS), the Company has remeasured the carrying value of these
investments. The resultant difference arising from the remeasurement has been recognised in the Statement of
Profit and Loss for the year.

Notes :

(i) Capital reserves:- The Company has created capital reserve on account of scheme of amalgamation and demerger.

(ii) Securities premium:- Securities premium reserve is used to record the premium on issue of shares. The reserve is
utilised in accordance with the provisions of the Companies Act, 2013.

(iii) General reserve:- General Reserves are free reserves of the Company which are kept aside out of Company''s
profits to meet the future requirements as and when they arise. The Company had transferred a portion of the
profit after tax (PAT) to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory
transfer to general reserve is not required under the Companies Act, 2013.

(iv) Retained earnings:- Retained earnings are the accumulated profits earned by the Company till date, less transfer
to general reserves, dividend (including dividend distribution tax) and other distributions made to the
shareholders.

(v) Reserve u/s 45 IC of the Reserve Bank of India Act, 1934: The Company created a reserve pursuant to section 45
IC the Reserve Bank of India Act, 1934 by transferring amount not less than twenty per cent of its net profit every
year as disclosed in the Statement of Profit and Loss and before any dividend is declared.

(vi) Equity instruments through Other Comprehensive Income: - The Company has elected to recognise changes in
the fair value of certain investements in financial instruments in other comprehensive income.

38 Provision on standard assets and doubtful debts

"(a) Provision for standard assets has been made at a 0.40% of the outstanding standard assets as per internal
estimates, based on past experience, realisation of security, and other relevant factors, which is higher than
the minimum provisioning requirements specified by the Reserve Bank of India (RBI).

(b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly,
provision for Sub-Standard and Doubtful assets is made with the guidelines issued by The Reserve Bank of
India."

The carrying amount of cash and cash equivalents, other financial assets, Trade & other receivable and trade payable
are considered to be the same as their fair values due to their short term nature. The management consider that the
carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their
fair values.

(iii) Capital Management & Risk Management Strategy
I. Capital risk management

The Company''s objective is to maintain a strong & healthy capital ratios and establish a capital structure that
would maximise the return to stakeholders through optimum utilisation of its funds. The Company is having
strong capital ratio and minimum capital risk. The Company''s capital requirement is mainly to fund its strategic
acquisitions. The principal source of funding of the Company has been, and is expected to continue to be, cash
generated from its operations. The Company monitors its capital using gearing ratio, which is net debt divided
to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, Bank
balances other than cash and cash equivalents and current investments. The Company does not have any debt
and also any sub-ordinated liabilities:

III. Financial risk management

The Company has formulated and implemented a Risk Management Policy for evaluating business risks. The
risk management policies are established to ensure timely identification and evaluation of risks, setting
acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their
limits, improve risk awareness and transparency. Risk management policies and systems are reviewed
regularly to reflect changes in the market conditions and the Company''s activities to provide reliable
information to the Management and the Board to evaluate the adequacy of the risk management framework
in relation to the risk faced by the Company. The risk management policies aim to mitigate the following risks
arising from the financial instruments:

(a) Credit risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration
of creditworthiness as well as concentration risks. Pledge obligation risk is the risk that may occur in case of
default on part of Pledgee company which may immediately amount to loss of assets of Company. The
Company has adopted a policy of only dealing with creditworthy counterparties to mitigating the risk of
financial loss from defaults. Company''s credit risk arises principally from loans, Trade receivable and cash &
cash equivalents.

Loans

The Company has adopted loan policy duly approved by the Company''s Board. The objective of said policy is
to manage the financial risks relating to the business, focusses on capital protection, liquidity and yield
maximisation. Investments of surplus funds are made only in approved counterparties within credit limits
approved by the board. The limits are set to minimise the risks and therefore mitigate the financial loss
through counter party''s potential failure to make payments.

Trade and other receivables

The trade & other receivable of the Company generally spread over limited numbers of parties. The Company
evaluates the credit worthiness of the parties on an ongoing basis. Further, and the history of trade receivable
shows negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material
risk account of non-performance from these parties.

Cash and cash equivalents

Credit risks from balances with banks are managed in accordance with the Company policy. The Company''s
maximum exposure to the credit risk for the components of balance sheet as March 31, 2025 and March 31,
2024 is the carrying amounts. Credit risk arises from balances with banks is limited and there is no collateral
held against these.

(b) Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage
of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The
Company requires funds both for short term operational needs as well as for long term strategic investments.
The Company generates sufficient cash flow for operations, which together with the available cash and cash
equivalents provide liquidity in the short-term and long-term. The Company has established an appropriate
liquidity risk management framework for the management of the Company''s short, medium and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate reserves and by continuously monitoring forecast and actual cash flows, and by matching the
maturity profiles of financial assets and liabilities.

(c) Market risk

The Company''s activities expose it primarily to the financial risks of changes equity price risk as explained
below:

Price Sensitivity analysis: Equity price risk is related to the change in market reference price of the instruments
in quoted and unquoted securities. The fair value of some of the Company''s investments exposes to company
to equity price risks. In general, these securities are not held for trading purposes. The fair value of equity
instruments other than investment in subsidaries and associates (including covertible preference) as at March
31, 2025 and March 31, 2024 was Rs 18,10,056.19 Lakhs and Rs. 13,63,687.33 Lakhs respectively. A 5% change
in price of equity instruments held as at March 31, 2025 and March 31, 2024 would result in:

Note:-

(i) As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve
Bank) Directions, 1998 .

(ii) Provisioning norms shall be applicable as prescribed in Systemically Important Non-Banking Financial (Non-Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015.

(iii) All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments
and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted
investments and break up / fair value / NAV in respect of unquoted investments has been disclosed irrespective of
whether they are classified as long term or current in (4) above."

43 Exposure to real estate sector, both direct and indirect;

The company has no exposure to real estate sector.

48 Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)

The company does not have any joint venture or subsidiary abroad, hence not applicable.

49 Loans and advances

(i) "The Company being an non-banking finance company, as part of its normal business, grants loans and
advances to its customers and other entities ensuring adherence to all regulatory requirements. Other than
the transactions described above, no funds have been advanced or loaned or invested (either from borrowed
funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or
entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries).

The Company has also not received any fund from any parties (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries."

(iii) Loans and advances repayable on demand (other than those considered as non-performing assets) includes ^
13,917.37 lakhs (Previous year ^ 13,317.76 lakhs) due from various Group companies which currently have
accumulated losses in their books as per latest available audited balance sheet. However, these companies
also have investments in quoted securities and other marketable securities to cover their loan exposure. The
Company has mechanism for review and monitoring of all such loans and is confident of recovering these
amounts, which are considered good in nature, as and when called for payment. The Company would take
necessary action for recovery of these amounts, if required.

Reason for variation

* Due to increase in operating income and other receivables.

"Tier i capital", "Tier ii capital", "Owned fund" and capital adequacy ratio are calculated as defined in Master
direction - Non-Banking Financial Company - Systemically important non-deposit taking company and deposit
taking company (Reserve Bank) directions, 2016 and Notification RBI/2019-20/170 DOR
(NBFC).CC.PD.No.109/22.10.106/2019-20 "implementation of Indian accounting Standards" issued by RBI on
March 13, 2020.

51 Other additional regulatory information required by Schedule III of Companies Act, 2013

The disclosure on the following matters required under Schedule III as amended not being relevant or
applicable in case of the Company, same are not covered:

(a) The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(b) No proceedings have been initiated or are pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(c) The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authorities.

(d) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(e) No registration and/or satisfaction of charges are pending to be filed with ROC.

(f) There are no transactions which are not recorded in the books of account which have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(g) The Company does not have any relationship with struck off companies.

52 The figures for the previous year have been regrouped/ rearranged wherever necessary to conform to current
year''s classification.

Significant accounting policies and notes to the financial statements 1 to 52

As per our report of even date

For N.C. Aggarwal & Co. For and on behalf of the Board of Directors

Chartered Accountants
Firm''s Reg. No. 003273N

G. K. Aggarwal Mahender Kumar Goel Ajay Goyal

Partner Whole Time Director Director

M. No.086622 DIN:00041866 DIN:10448282

Place : Hisar Deepak Garg Ajay Mittal

Dated: 28th May, 2025 Chief Financial Officer Company Secretary

M.No. FCS-11573

---

Mar 31, 2024

e) Provisions and Contingent Liabilities

Provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate of the expenditure required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

f) Tax Expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax and deferred tax is recognized in the Profit and Loss except when it relates to items that are recognized in Other Comprehensive Income.

Current tax

Current tax is the amount of expected tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961.

Deferred tax

Deferred tax is recognized using the Balance Sheet approach. It represents temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill. The carrying amount of deferred tax assets is reviewed at the end of each reporting year and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as a Deferred tax asset if there is convincing evidence that the Company will pay normal income tax in future years. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting year.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

g) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial Assets

The Company classifies its financial assets in the following measurement categories:

> Those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss).

> Those measured at amortized cost.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them.

Initial recognition and measurement

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Financial assets classified and measured at amortized cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement financial assets are classified in following categories:

> Financial assets at amortized cost

> Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)

> Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

> Financial assets at fair value through profit or loss

Financial assets at amortized cost

A ''financial asset'' is measured at the amortized cost if both the following conditions are met:

Business Model Test: The objective is to hold the financial asset to collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realize its fair value changes) and;

Cash flow characteristics test: The contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The EIR amortization is included in other income in profit or loss. The losses arising from impairment are recognized in the profit or loss. This category general applies to trade and other receivables.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognized in the statement of profit and loss.

Financial assets designated at fair value through Other Comprehensive Income (OCI)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-byinstrument basis. Equity instruments which are held for trading and contingent consideration recognized by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement of profit and loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company''s statement of financial position) when:

> The rights to receive cash flows from the asset have expired, or

> the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass through" arrangement and either;

¦ the Company has transferred substantially all the risks and rewards of the asset, or

¦ the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the right and obligations that the Company has retained.

Impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses (ECL) model for measurement and recognition of impairment loss on the following financial asset and credit risk exposure

> Financial assets measured at amortized cost;

> Financial assets measured at fair value through other comprehensive income(FVTOCI);

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

The Company follows "simplified approach" for recognition of impairment loss allowance on:

> Trade receivables or contract revenue receivables without significant financial element;

> All lease receivables resulting from the transactions within the scope of Ind AS 116 -Leases

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward looking estimates are analyzed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the statement of profit and loss. This amount is reflected under the head ''other expenses'' in the statement of profit and loss.

(ii) Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans and borrowings, and payables, net of directly attributable transaction costs. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company financial liabilities include trade payables, liabilities towards services, and other payables.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

> Financial liabilities at fair value through profit or loss

> Financial liabilities at amortized cost (loans and borrowings)

Financial liabilities at Fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in IND AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to profit and loss. All other changes in fair value of such liability are recognized in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at Amortized cost

After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost using the Effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the Effective interest rate amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the Effective interest rate. The Effective interest rate amortization is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

Financials assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

h) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all potentially dilutive equity shares.

3. Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024. MCA has not notified any new standard or amendment to the existing standards applicable to the company.

36. Provision on standard assets and doubtful debts

"(a) Provision for standard assets has been made at a 0.40% of the outstanding standard assets as per internal estimates, based on past experience, realisation of security, and other relevant factors, which is higher than the minimum provisioning requirements specified by the Reserve Bank of India (RBI).

(b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly, provision for Sub-Standard and Doubtful assets is made with the guidelines issued by The Reserve Bank of India."

I. Capital risk management

The Company''s objective is to maintain a strong & healthy capital ratios and establish a capital structure that would maximise the return to stakeholders through optimum utilisation of its funds. The Company is having strong capital ratio and minimum capital risk. The Company''s capital requirement is mainly to fund its strategic acquisitions. The principal source of funding of the Company has been, and is expected to continue to be, cash generated from its operations. The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, Bank balances other than cash and cash equivalents and current investments. The Company does not have any debt and also any sub-ordinated liabilities:

II. Risk management framework

Board of Directors of the Company has developed and monitoring the Company''s risk management policies. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company.

III. Financial risk management

The Company has formulated and implemented a Risk Management Policy for evaluating business risks. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company''s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relation to the risk faced by the Company. The risk management policies aim to mitigate the following risks arising from the financial instruments:

(a) Credit risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. Pledge obligation risk is the risk that may occur in case of default on part of Pledgee company which may immediately amount to loss of assets of Company. The Company has adopted a policy of only dealing with creditworthy counterparties to mitigating the risk of financial loss from defaults. Company''s credit risk arises principally from loans, Trade receivable and cash & cash equivalents.

Loans

The Company has adopted loan policy duly approved by the Company''s Board. The objective of said policy is to manage the financial risks relating to the business, focusses on capital protection, liquidity and yield maximisation. Investments of surplus funds are made only in approved counterparties within credit limits approved by the board. The limits are set to minimise the risks and therefore mitigate the financial loss through counter party''s potential failure to make payments.

Trade and other receivables

The trade & other receivable of the Company generally spread over limited numbers of parties. The Company evaluates the credit worthiness of the parties on an ongoing basis. Further, and the history of trade receivable shows negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk account of non-performance from these parties.

Cash and cash equivalents

Credit risks from balances with banks are managed in accordance with the Company policy. The Company''s maximum exposure to the credit risk for the components of balance sheet as March 31,2024 and March 31,2023 is the carrying amounts. Credit risk arises from balances with banks is limited and there is no collateral held against these.

(b) Liquidity risk management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term strategic investments. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents provide liquidity in the short-term and long-term. The Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(c) Market risk

The Company''s activities expose it primarily to the financial risks of changes equity price risk as explained below:

Price Sensitivity analysis: Equity price risk is related to the change in market reference price of the instruments in quoted and unquoted securities. The fair value of some of the Company''s investments exposes to company to equity price risks. In general, these securities are not held for trading purposes. The fair value of equity instruments other than investment in subsidaries and associates (including covertible preference) as at March 31, 2024 and March 31, 2023 was Rs 13,63,687.33 Lakhs and Rs. 8,78,877.54 Lakhs respectively. A 5% change in price of equity instruments held as at March 31, 2024 and March 31, 2023 would result in:

(d) Dividend Income risk management

Dividend income risk refers to the risk of changes in the Dividend income to dip in the performance of the investee companies.

(e) Foreign currency risk management

The Company''s functional currency is Indian Rupees (INR). The Company does not have any foreign currency exposures.

46 Overseas Assets (for those with Joint Ventures and Subsidiaries abroad)

The company does not have any joint venture or subsidiary abroad, hence not applicable.

47 Loans and advances

(i) "The Company being an non-banking finance company, as part of its normal business, grants loans and advances to its customers and other entities ensuring adherence to all regulatory requirements. Other than the transactions described above, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including

49. Other additional regulatory information required by Schedule III of Companies Act, 2013

The disclosure on the following matters required under Schedule III as amended not being relevant or applicable in case of the Company, same are not covered:

(a) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(b) No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(c) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authorities.

(d) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(e) No registration and/or satisfaction of charges are pending to be filed with ROC.

(f) There are no transactions which are not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(g) The Company does not have any relationship with struck off companies.

50. The figures for the previous year have been regrouped/ rearranged wherever necessary to conform to current year''s classification.

Significant accounting policies and notes to the financial statements 1 to 50 As per our report of even date

For B S D & Co. For and on behalf of the Board of Directors

Chartered Accountants Firm''s Reg. No. 000312S

Sujata Sharma Mahender Kumar Goel Nrender Garg

Partner Whole Time Director Director

M. No.087919 DIN: 00041866 DIN:08486246

Place: New Delhi Deepak Garg Ajay Mittal

Dated: 28th May, 2024 Chief Financial Officer Company Secretary

M.No. FCS-11573

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Mar 31, 2023

Provisions and Contingent Liabilities

Provision is recognized when the Company has a present obligation as a result of past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best
estimate of the expenditure required to settle the obligation at the Balance Sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly
within the control of the Company or a present obligation that arises from past events where it is either not probable
that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

k) Tax Expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax and deferred tax
is recognized in the Profit and Loss except when it relates to items that are recognized in Other Comprehensive
Income.

Current tax

Current tax is the amount of expected tax payable based on the taxable profit for the year as determined in
accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961.

Deferred tax

Deferred tax is recognized using the Balance Sheet approach. It represents temporary differences between the
carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred
tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profits
will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition
of goodwill. The carrying amount of deferred tax assets is reviewed at the end of each reporting year and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as a Deferred tax asset if there is convincing evidence
that the Company will pay normal income tax in future years. Accordingly, MAT is recognized as an asset in the
Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting year.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

l) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

(i) Financial Assets

The Company classifies its financial assets in the following measurement categories:

> Those to be measured subsequently at fair value (either through other comprehensive income, or through profit
or loss).

> Those measured at amortized cost.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow
characteristics and the Company''s business model for managing them.

Initial recognition and measurement

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs
to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial
assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss,
irrespective of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.

Financial assets classified and measured at amortized cost are held within a business model with the objective
to hold financial assets in order to collect contractual cash flows while financial assets classified and measured
at fair value through OCI are held within a business model with the objective of both holding to collect
contractual cash flows and selling.

Subsequent measurement

For purposes of subsequent measurement financial assets are classified in following categories:

> Financial assets at amortized cost

> Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains
and losses (debt instruments)

> Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)

> Financial assets at fair value through profit or loss

Financial assets at amortized cost

A ''financial asset'' is measured at the amortized cost if both the following conditions are met:

Business Model Test: The objective is to hold the financial asset to collect the contractual cash flows (rather
than to sell the instrument prior to its contractual maturity to realize its fair value changes) and;

Cash flow characteristics test: The contractual terms of the financial asset give rise on specific dates to cash
flows that are solely payments of principal and interest on principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial assets are subsequently
measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the
rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument
or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating
the effective interest rate, the Company estimates the expected cash flows by considering all the contractual
terms of the financial instrument but does not consider the expected credit losses. The EIR amortization is
included in other income in profit or loss. The losses arising from impairment are recognized in the profit or loss.
This category general applies to trade and other receivables.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes
in fair value recognized in the statement of profit and loss.

Financial assets designated at fair value through Other Comprehensive Income (OCI)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32
Financial Instruments: Presentation and are not held for trading. The classification is determined on an
instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration
recognized by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other
income in the statement of profit and loss when the right of payment has been established, except when the
Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such
gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment
assessment.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets)
is primarily derecognized (i.e. removed from the Company''s statement of financial position) when:

> The rights to receive cash flows from the asset have expired, or

> the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a “pass through"
arrangement and either;

¦ the Company has transferred substantially all the risks and rewards of the asset, or

¦ the Company has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognize the transferred asset to the extent of the
Company''s continuing involvement. In that case, the Company also recognizes an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the right and obligations that
the Company has retained.

Impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses (ECL) model for measurement and
recognition of impairment loss on the following financial asset and credit risk exposure

> Financial assets measured at amortized cost;

> Financial assets measured at fair value through other comprehensive income(FVTOCI);

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Company expects to receive, discounted at an approximation of the original effective
interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a
significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

The Company follows “simplified approach" for recognition of impairment loss allowance on:

> Trade receivables or contract revenue receivables without significant financial element;

> All lease receivables resulting from the transactions within the scope of Ind AS 116 -Leases

Under the simplified approach, the Company does not track changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The
Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables.
The provision matrix is based on its historically observed default rates over the expected life of trade receivable
and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are
updated and changes in the forward looking estimates are analyzed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in
the statement of profit and loss. This amount is reflected under the head ''other expenses'' in the statement of
profit and loss.

(ii) Financial liabilities:Initial recognition and measurement

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss,
loans and borrowings, and payables, net of directly attributable transaction costs. All financial liabilities are
recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. The Company financial liabilities include trade payables, liabilities towards
services, and other payables.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

> Financial liabilities at fair value through profit or loss

> Financial liabilities at amortized cost (loans and borrowings)

Financial liabilities at Fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category
also includes derivative financial instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria in IND AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss
are not subsequently transferred to profit and loss. All other changes in fair value of such liability are recognized
in the statement of profit or loss. The Company has not designated any financial liability as at fair value through
profit and loss.

Financial liabilities at Amortized cost

After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost using the
Effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the Effective interest rate amortization process. Amortized cost is calculated
by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the
Effective interest rate. The Effective interest rate amortization is included as finance costs in the statement of
profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

Financials assets and financial liabilities are offset and the net amount is reported in the balance sheet if there
is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a
net basis, to realize the assets and settle the liabilities simultaneously.

m) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus
element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted for
the effect of all potentially dilutive equity shares.

n) Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary
transaction between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:

(i) In the principal market for asset or liability, or

(ii) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

A fair value measurement of a non- financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement

is directly or indirectly observable

Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization
(based on the lowest level input that is significant to fair value measurement as a whole ) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

3. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended
the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below.

Ind AS- 1- Presentation of Financials Statements-

This amendment requires the entities to disclose their material accounting policies rather than their significant
accounting policies.

Ind AS-8 Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of “accounting estimates" and included amendments to Ind AS-8
to help entities distinguish changes in the accounting policies from change in accounting policies.

Ind AS- 12 Income taxes

This amendment has narrowed the scope of initial recognition exemption so that it does not apply to transaction
that give rise to equal and offsetting temporary differences.

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Mar 31, 2018

1. Company Overview

Nalwa Sons Investments Limited was incorporated on November 18, 1970 under the erstwhile Companies Act i.e. Companies Act, 1956 and is registered as Non-deposit taking Non-Banking Financial Company (''NBFC'') under the provisions of Section 45-IA of the Reserve Bank of India Act, 1934.

Notes

1 3,47,945 (Previous Year 3,47,945) shares of Jindal Stainless Limited have been pledged to the lender of third party.

2 During the year, the Company has written-off the cost of investment in Jindal Overseas PTE Limited ("JOPL") in the books of accounts as JOPL has voluntarily filed an application for winding up and consequently, its name has been struck off w.e.f. 5th April 2018.

3 During the year the Company has received bonus Compulsory Convertible Preference Shares in the ratio of 1:100 of Sahyog Holdings Private Limited.

* Appeals in respect of certain assessments of Income-Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

2. Long-term investments

(a) Although the fair value of unquoted investments (amount not ascertained) is lower than the cost, considering the strategic and the long-term nature of the investments and the asset base of the investee companies such decline, in the opinion of the management has been considered to be of temporary nature and hence not considered while valuing the same.

(b) The Company has made long term investment in subsidiary companies of '' 8269.45 Lacs and in certain other companies of '' 1840.22 Lacs where there is diminution in value of investment. The amount of diminution is not readily ascertainable because of layer effect of accretion/diminution of investment held by those companies. Such diminution in the opinion of the management, being long term strategic investment and future cash flows, is temporary in nature and as such no provision is considered necessary.

3. Loans and advances repayable on demand (other than those considered as non-performing assets) includes '' 826.37 lakhs (Previous year '' 930.50 lakhs) due from various OP Jindal Group companies which currently have accumulated losses in their books as per latest available audited balance sheet. The Company has mechanism for review and monitoring of all such loans and is confident of recovering these amounts, which are considered good in nature, as and when called for payment. The Company would take necessary action for recovery of these amounts, if required.

4. The Company has given loans to various companies, which are repayable on demand. During the year, interest on such loans has been serviced by converting into principal, and the same has also been acknowledged by the borrowers.

5. In the opinion of the Board, value of all assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

6. Segment Reporting

The Company is primarily engaged In investment and financing activities. Therefore, considered a single business segment. The Company operates in a single geographic segment i.e within India. In the absence of separate reportable business or geographic segments the disclosures required under the Accounting Standard (AS) 17 on "Segment Reporting" has not been made.

7. Disclosures in respect of Micro, Small and Medium Enterprises

(i) According to the records available with the Company, dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is '' Nil (previous year '' Nil). Further no interest has been paid or was payable to such parties under the said Act during the year.

(ii) Due to Micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company. This has been relied upon by the auditors.

8. Earnings Per Share (EPS)

Earnings per share as given below has been computed in accordance with Accounting Standard 20 ''Earnings Per Share (AS-20): -

9. Provision on standard assets and doubtful debts

(a) Provision for standard assets has been made at a 0.30% of the outstanding standard assets as per internal estimates, based on past experience, realisation of security, and other relevant factors, which is higher than the minimum provisioning requirements specified by the Reserve Bank of India (RBI).

(b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly, provision for Sub-Standard and Doubtful assets is made with the guidelines issued by The Reserve Bank of India.

Note:-

1. As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998 .

2. Provisioning norms shall be applicable as prescribed in Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015.

3. All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments has been disclosed irrespective of whether they are classified as long term or current in (4) above.

10. Prior Year Comparatives

The figures for the previous year have been regrouped/ rearranged wherever necessary to conform to current year''s classification.

---

Mar 31, 2016

1. Appeals in respect of certain assessments of Income-Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

2. Although the fair value of unquoted investments (amount not ascertained) is lower than the cost, considering the strategic and the long term nature of the investments and the asset base of the investee companies such decline, in the opinion of the management has been considered to be of temporary nature and hence not considered while valuing the same.

3. Loans and advances repayable on demand (other than those considered as non performing assets) includes '' 2511.51 lacs (Previous year '' 8271.09 lacs) due from various OP Jindal Group companies which currently have accumulated losses in their books as per latest available audited balance sheet. The Company has mechanism for review and monitoring of all such loans and is confident of recovering these amounts, which are considered good in nature, as and when called for payment. The Company would take necessary action for recovery of these amounts, if required.

4. In the opinion of the Board, Value of all assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. a) Provision for standard assets amounting to Rs. 2.08 lacs has been made at a higher percentage of 0.30% of the outstanding standard assets as at 31st March, 2016 then 0.25% mentioned in Notification No. DNBR.008/CGM (CDS)-2015 dated 27-03-2015 issued by Reserve Bank of India.

b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly provision for Sub-Standard and Doubtful assets is made with the guidelines issued by The Reserve Bank of India.

6. The company operates in single primary segment (i.e. investment and finance.)

7. (i) Provision for Non-Performing Loans and Advances amounting to Rs. Nil (previous year Rs.1612 lacs) on doubtful loans has been decided by the management considering prudential norms prescribed by the Reserve Bank of India as also financial health of the borrower was not good. The borrower has also approached the company to waive the interest due to the liquidity crisis. However, the borrower promises to pay principal amount of the loan after the outcome of Arbitration Proceeding, which is most likely to be in the favour of the borrower.

(ii) Details of provision for Non -Performing Assets and Movement of provision of Sub-Standard and Doubtful Asset is as under:

8. The Company has given loans to various companies, which are repayable on demand. During the year, interest on such loans has been serviced by converting into principal, and the same has also been acknowledged by the borrowers.

9. As per Notification No. DNBR.008/CGM (CDS) - 2015 dated March 27, 2015 issued by Reserve Bank of India, Company is a Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Company because asset size of the Company is less than Rs. 500 Crores.

Concentration of single/group exposure norms is not applicable to the Company since the Company is a non-systemic NBFC Company.

10. As per Accounting Standard 15, "Employees Benefits” the disclosure as defined in the Accounting Standard are given below:

i) Defined Benefit Plan

11. The company has made long term investment in a subsidiary company of Rs 6100.66 Lacs and in certain other companies of Rs. 2611 Lacs where there is diminution in value of investment. The amount of diminution is not readily ascertainable because of layer effect of accretion/diminution of investment held by those companies. Such diminution in the opinion of the management, being long term strategic investment and future cash flows, is temporary in nature and as such no provision is considered necessary.

Notes:

12 As defined in Paragraph 2(1 )(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998 .

13 Provisioning norms shall be applicable as prescribed in Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015.

14 All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

---

Mar 31, 2015

1. Contingent Liabilities not provided for:

(Rs. in Lacs) (Rs. in Lacs) Current Year Previous Year

(i) For Income Tax matters against which company has preferred appeal 1288.92 1474.33

(ii) Liability towards Corporate Guarantee to Bank against credit facilities availed by 1487.29 2122.50 other Body Corporate

2. Appeals in respect of certain assessments of Income-Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

3. Although the Fair Value of unquoted investments (amount not ascertained) is lower than the cost, considering the strategic and the long term nature of the investments and the asset base of the investee companies such decline, in the opinion of the management has been considered to be of temporary nature and hence not considered while valuing the same.

4. Loans and advances repayable on demand (other than those considered as non performing assets) includes Rs.8271.09 lacs (Previous year Rs. 9353.54 lacs) due from various O.P. Jindal Group companies which currently have accumulated losses in their books as per latest available audited balance sheet. The Company has mechanism for review and monitoring of all such loans and is confident of recovering these amounts, which are considered good in nature, as and when called for payment. The Company would take necessary action for recovery of these amounts, if required.

5. In the opinion of the Board, Value of all assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

6. a) Provision for standard assets amounting to Rs. Nil has been made at 0.25% of the outstanding standard assets as at 31st March, 2015 in terms of Notification No. DNBS.222/CGM (US)-2011 dated 17-01-2011 issued by Reserve Bank of India.

b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly provision for Sub-Standard and Doubtful assets is made with the guidelines issued by The Reserve Bank of India.

7. The company operates in single primary segment (i.e. investment and finance.)

8. (i) Provision for Non Performing Loans and Advances amounting to Rs. 1612.00 lacs (previous yearRs. Nil) on doubtful loans has been decided by the management considering prudential norms prescribed by the Reserve Bank of India as also financial health of the borrower was not good. The borrower has also approached the company to waive the interest due to the liquidity crisis. However, the borrower promises to pay principal amount of the loan after the outcome of Arbitration Proceeding, which is most likely to be in the favour of the borrower.

9. The Company has given loans to various companies, which are repayable on demand. During the year, interest on such loans has been serviced by converting into principal, and the same has also been acknowledged by the borrowers.

10. As per Notification No. DNBR.008/CGM (CDS) - 2015 dated March 27, 2015 issued by Reserve Bank of India, Company is a Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Company because asset size of the Company is less than Rs. 500 Crore.

Concentration of single/group exposure norms is not applicable to the Company since the Company is a non- systemic NBFC Company.

11. The Board of Directors of the Company on 11th February, 2013 has decided to convert the company in Core Investment Company (CIC). The Necessary Correspondence is being pursued to the Reserve Bank of India (RBI).

12. The useful life of the fixed assets has been revised in accordance with Schedule -II of the Companies Act, 2013 with effect from 1st April, 2014. Hitherto, in the previous year ended 31st March, 2014 the depreciation was charged at the rates prescribed under Schedule-XIV of the Companies Act, 1956. As a result the depreciation charge for the year ended 31st march, 2015 as per Schedule II of the Companies Act,2013 is higher by Rs. 0.07 Lacs. Also depreciation ofRs. 0.36 Lacs (net of deferred tax ofRs. 0.19 Lacs) where useful life of assets is nil is adjusted against opening balance of retained earnings.

13 Related Parties Transactions

A List of Related Parties & Relationship (As identified by the Management)(As per AS-18)

a) Parties where control exists :

Subsidiaries :

Jindal Holdings Limited Jindal Steel & Alloys Limited Jindal Stainless (Mauritius) Limited Brahmputra Capital & Financial Services Limited Massillon Stainless Inc. U.S.A.

b) Associates :

Jindal Equipment Leasing & Consultancy Services Limited (w.e.f. 30th March, 2015)

Notes:

1 As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998 .

2 Provisioning norms shall be applicable as prescribed in Non-Systemically Important Non -Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015.

3 All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets acquired in satisfaction of debt. However, market value in respect of quoted investments and break up / fair value / NAV in respect of unquoted investments should be disclosed irrespective of whether they are classified as long term or current in (4) above.

1. Previous year's figures have been regrouped wherever necessary

---

Mar 31, 2014

1. Contingent Liabilities not provided for:

(Rs. In Lacs) (Rs. In Lacs) Current Year Previous Year

(i) For Income Tax matters against which 1474.33 731.85 company has preferred appeal

(ii) Liability towards Corporate Guarantee 2122.50 2420.00 to Bank against credit facilities availed by other Body Corporate

2. Appeals in respect of certain assessments of Income-Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

3. Although the Fair Value of unquoted investments (amount not ascertained) is lower than the cost, considering the strategic and the long term nature of the investments and the asset base of the investee companies such decline, in the opinion of the management has been considered to be of temporary nature and hence not considered while valuing the same.

4 Loans and advances repayable on demand (other than those considered as non performing assets) includes Rs 9353.54 lacs (Previous year Rs 8174.71 lacs ) due from various OP Jindal Group companies which currently have accumulated losses in their books. The Company has mechanism for review and monitoring of all such loans and is confident of recovering these amounts, which are considered good in nature, as and when called for payment. The Company would take necessary action for recovery of these amounts, if required.

5 In the opinion of the Board, Value of all assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

6. a) Provision for standard assets amounting to ^Nil lacs has been made at 0.25% of the outstanding standard assets as at 31st March, 2014 in terms of Notification No. DNBS.222/CGM (US)-2011 dated 17-01-2011 issued by Reserve Bank of India.

b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly provision for Sub-Standard and Doubtful assets is made with the guidelines issued by The Reserve Bank of India.

7. The company operates in single primary segment (i.e. investment and finance.)

8. (i) Provision for Non Performing Loans and Advances amounting to Rs.Nil (previous year Rs.179.11) on sub-Standard loans has been decided by the management considering prudential norms prescribed by the Reserve Bank of India as also financial health of the borrower was not good. The borrower has also approached the company to waive the interest due to the liquidity crisis. However, the borrower promises to pay principal amount of the loan after the outcome of Arbitration Proceeding, which is most likely to be in the favour of the borrower.

(ii) Detail of provision for Non Performing Assets

10. The Company has given loans to various companies, which are repayable on demand. During the year, interest on such loans has been serviced by converting into principal, and the same has also been acknowledged by the borrowers.

11. Investments as long term strategic investment in subsidiary companies in equity shares given as detailed below are exceeding the single exposure norms of 15% of owned fund of the Company as prescribed in terms of para 18 of "Non-Banking Financial (Non-deposit Accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, for which the Company has taken steps for appropriate exemption/dispensation from Reserve Bank of India consistent with the spirit of the exposure norms. For the purpose of exposure norm, the meaning of the group is taken as per erstwhile section 370(1B) of the Companies Act,1956.

12. The Board of Directors of the Company on 11th February, 2013 has decided to convert the company in Core Investment Company (CIC). The Necessary Correspondence is being pursued to the Reserve Bank of India (RBI).

13. Based on the information available with the Company regarding the status of the supplier under the Micro, Small and Medium Enterprises Development Act, 2006, no amount is due to Micro, Small and Medium Enterprises.

14 Related Parties Transactions

A List of Related Parties & Relationship (As identified by the Management)

a) Parties where control exists :

Subsidiaries

Jindal Holdings Limited

Jindal Steel & Alloys Limited

Jindal Stainlelss ( Mauritius) Limited

Brahmputra Capital & Financial Services Ltd. (w.e.f 26th February 2014) Massillon Stainless Inc. U.S.A.

b) Associates

Brahmputra Capital & Financial Services Ltd. (upto 25th February 2014)

c) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

15 As per the requirement of clause 32 of the listing agreement, the following are the details of Loans and advances of the Company outstanding at the year end and maximum amount outstanding.

---

Mar 31, 2013

1. Appeals in respect of certain assessments of Income-Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

2. Loans to body corporate Rs. 13152.11 lacs other than those considered as Non-Performing (including Rs. Nil of subsidiary companies) (previous year Rs. 12890.77 lacs (including Rs. Nil of subsidiary companies)) are repayable on demand. Aforesaid loans include Rs. 8174.71 lacs to companies which are having accumulated losses. The management is confident of recovering the same as and when recalled and hence amount outstanding have been considered good and recoverable.

3 In the opinion of the Board, Value of all assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4. a) Provision for standard assets amounting to Rs. 0.65 lacs has been made at 0.25% of the outstanding standard assets as at 31st March, 2013 in terms of Notification No. DNBS.222/CGM (US)-2011 dated 17-01-2011 issued by Reserve Bank of India.

b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly provision for Sub-Standard and Doubtful Assets is made with the guidelines issued by the Reserve Bank of India.

5. The company operates in single primary segment (i.e. investment and finance.)

6. (i) Provision for Non Performing Loans and Advances amounting to Rs. 179.11 (previous year Rs. Nil) on sub-Standard loans has been decided by the management considering prudential norms prescribed by the Reserve Bank of India as also financial health of the borrower was not good. The borrower has also approached the company to waive the interest due to the liquidity crisis. However, the borrower promises to pay principal amount of the loan after the outcome of Arbitration Proceeding, which is most likely to be in the favour of the borrower.

7. The Company has given loans to various companies, which are repayable on demand. During the year, interest on such loans has been serviced by converting into principal, and the same has also been acknowledged by the borrowers.

8. Investments as long term strategic investment in subsidiary companies in equity shares given as detailed below are exceeding the single exposure norms of 15% of owned fund of the Company as prescribed in terms of para 18 of "Non-Banking Financial (Non-deposit Accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, for which the Company has take steps for appropriate exemption/dispensation from Reserve Bank of India consistent with the spirit of the exposure norms. For the purpose of exposure norm, the meaning of the group is taken as per erstwhile section 370(1B) of the Companies Act,1956.

9 . The Board of Directors of the Company on 11th February, 2013 has decided to convert the company in Core Investment Company (CIC). The Necessary Correspondence is being pursued to the Reserve Bank of India (RBI).

10. Based on the information available with the Company regarding the status of the supplier under the Micro, Small and Medium Enterprises Development Act, 2006, no amount is due to Micro, Small and Medium Enterprises.

11 Related Parties Transactions

A List of Related Parties & Relationship (As identified by the Management)

a) Parties where control exists : Subsidiaries

Jindal Holdings Limited Jindal Steel & Alloys Limited Jindal Stainlelss ( Mauritius) Limited Massillon Stainless Inc. U.S.A.

b) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.

---

Mar 31, 2012

1. Contingent Liabilities not provided for:

(Rs. in Lacs) (Rs.in Lacs ) Current Year Previous Year

(i) For Income Tax matters against which company has preferred appeal 687.94 511.36

(ii) Liability towards Corporate Guarantee given to Bank — 2612.86 against credit facilities availed by other Body Corporate

2. Appeals in respect of certain assessments of Income-Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

3. Loans to Body corporate Rs. 12890.77 lacs (including Rs. Nil of subsidiary companies) (previous year Rs. 11760.28 lacs (including Rs. Nil of subsidiary companies)) are repayable on demand. Aforesaid loans include Rs. 8703.27 lacs to companies which are having accumulated losses. The management is confident of recovering the same as and when recalled and hence amount outstanding have been considered good and recoverable.

4. In the opinion of the Board, Value of all assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5. Provision for standard assets is made at 0.25% of the outstanding standard assets as at 31st March, 2012 in terms of Notification No. DNBS.222/CGM (US)-2011 dated 11/01/2011 issued by Reserve Bank of India.

6. The company operates in single primary segment i.e. investment and finance.

7. (i) Provision for Non Performing Loans and Advances amounting to Rs. Nil (previous year Nil) on doubtful loans have been decided by the management considering prudential norms prescribed by the Reserve Bank of India.

8. Based on the information available with the Company regarding the status of the supplier under the Micro, Small and Medium Enterprises Development Act, 2006, no amount is due to Micro, Small and Medium Enterprises.

9. Related Parties Transactions

(A) List of Related Parties & Relationship (As identified by the Management)

a) Parties where control exists :

Subsidiaries

Jindal Holdings Limited Jindal Steel & Alloys Limited Jindal Stainlelss ( Mauritius) Limited Massillon Stainless Inc. U.S.A.

b) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.

---

Mar 31, 2011

1. Contingent Liabilities not provided:

(Rs.in Lacs) (Rs. in Lacs)

Current Previous

Year Year



(i) For Income Tax 511.36 461.73

matters against which company has preferred appeal

(ii) Liability towards 2612.86 3177.63 Corporate Guarantee given to Bank against credit facilities availed by other Body Corporate

2. Appeals in respect of certain assessments of Income Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

3. Loans to Body corporate Rs. 11760.28 lacs (including Rs. Nil of subsidiary companies) (previous year Rs. 10157.20 lacs (including Rs. Nil of subsidiary companies)) are repayable on demand. Some of these companies are having accumulated losses. The management is confident of recovering the same as and when recalled and hence amount outstanding have been considered good and recoverable.

4. In opinion of the board, Loans & Advances have a realisable value, in the ordinary course of business at least equal to the amount at which they are stated.

5. The company operates in single primary segment i.e. investment and finance.

6. (i) Provision for Non Performing Loans and Advances amounting to Rs. Nil (previous year Rs. 6.06 lacs) on doubtful loans have been decided by the management considering prudential norms prescribed by the Reserve Bank of India.

7. Based on the information available with the Company regarding the status of the supplier under the Micro, Small and Medium Enterprises Development Act, 2006, no amount is due to Micro, Small and Medium Enterprises.

8 Related Parties Transactions

A List of Related Parties & Relationship (As identified by the Management)

a) Parties where control exists : Subsidiaries

Jindal Holdings Limited Jindal Steel & Alloys Limited Jindal Stainlelss ( Mauritius) Limited Massillon Stainless Inc. U.S.A.

b) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director & C.E.O.

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.

9 As per the requirement of clause 32 of the listing agreement, the following are the details of Loans and advances of the Company outstanding at the year end and maximum amount outstanding.

2. No commission is being payable to the Directors and hence,the computation of Net Profit under Section 349 of the Company Act,1956 is not given.

10 Other information pursuant to Part II of schedule VI to the Companies Act, 1956 are either Nil or not applicable

11) Previous year's figures have been re-arranged and regrouped wherever considered necessary.

12) Schedule 1 to 12 are annexed to and form integral part of the Balance Sheet and Profit & Loss Account.

---

Mar 31, 2010

1. Contingent Liabilities not provided: (Rs. in Lacs) (Rs. in Lacs)

Current Year Previous Year

(i) For Income Tax matters against which 461.73 186.59

company has preferred appeal

(ii) Liability towards Corporate Guarantee given . 3177.63 -

to Bank against credit facilities availed by other

Body Corporate

2. Appeals in respect of certain assessments of Income-Tax are pending and additional tax liabilities/refunds, if any, is not determinable at this stage. Adjustments for the same will be made after the same is finally determined.

3. Loans to Body corporate Rs. 10157.20 lacs (including Rs. Nil of subsidiary companies) (previous year Rs. 9301.29 lacs (including Rs. 6.06 lacs of subsidiary companies)) are repayable on demand. The management is confident of recovering the same as and when recalled and hence amount outstanding have been considered good and recoverable.

4. In opinion of the board, Loans & Advances have a realisable value, in the ordinary course of business at least equal to the amount at which they are stated.

5. The company operates in single primary segment i.e. investment and finance.

6 Related Parties Transactions

A List of Related Parties & Relationship (As identified by the Management)

Subsidiaries

Jindal Holdings Limited

Jindal Steel & Alloys Limited

Jindal Stainlelss ( Mauritius) Limited

Massillon Stainless Inc. U.S.A.

b) Key Management Personnel:

1. Sh. Mahender Kumar Goel Executive Director 2. Sh. Bhartendu Harit Company Secretary



c) Associate

1. Jindal Saw Limited

2. Brahmputra Capital & Financial Services Ltd.

7) Previous years figures have been re-arranged and regrouped wherever considered necessary.

8) Schedule 1 to 12 are annexed to and form integral part of the Balance Sheet and Profit & Loss Account.