Notes to Accounts of Nirlon Ltd.

Mar 31, 2025

(m) Provisions & contingent liabilities
Provisions

A provision is recognised when the Company has a
present obligation (legal or constructive) as a result of
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and the amount can be reliably estimated.
These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a
finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognised because it is not
probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount
cannot be made. The Company does not recognize a
contingent liability but discloses its existence in the
financial statements unless the probability of outflow of
resources is remote.

(n) Leases
Company as a lessor

At inception of contract, the Company assesses whether
the Contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of
time in exchange for consideration. At inception or
on reassessment of a contract that contains a lease
component, the Company allocates consideration in the
contract to each lease component on the basis of their
relative standalone price.

Leases in which the Company does not transfer
substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income
from operating lease is recognised on a straight-line
basis over the term of the relevant lease.

Initial direct costs incurred in negotiating and arranging
an operating lease are added to the carrying amount of
the leased asset and recognised over the lease term on
the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are
earned.

Leases are classified as finance leases when substantially
all of the risks and rewards of ownership transfer from
the Company to the lessee. Amounts due from lessees
under finance leases are recorded as receivables at the
Company''s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect
a constant periodic rate of return on the net investment
outstanding in respect of the lease.

(o) Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

(p) Revenue recognition

Revenue from contract with customers

Revenue from contracts with customers is recognised
when control of the goods or services are transferred to
the customer at an amount that reflects the consideration
to which the Company expects to be entitled in exchange
for those goods or services.

Revenue from operations also consist of the revenue
received/ receivable from tenants for the Common Area
Maintenance (CAM) services provided as per the terms
of agreement with the tenants and third parties, if any.

Contract assets are transferred to receivables when
the rights become unconditional. Contract asset is the
right to consideration in exchange for goods or services
transferred to the customer. Contract liabilities are
recognised as revenue as and when the performance
obligation is satisfied. Contract liability is the entity''s
obligation to transfer goods or services to a customer
for which the entity has received consideration from the
customer in advance.

Leasing Income

License fee / lease income and income incidental to it,
arising from operating leases on investment properties
is accounted for on a straight-line basis over the lease
terms, unless there is another systematic basis which is
more representative of the time pattern of the lease.

Other operating revenue comprises of car parking
charges which are recognised as income as per the
terms and conditions of the agreement with lessees.

Interest income

Interest income from debt instruments is recognised
using the effective interest rate method.

Insurance claims and scrap sales are accounted for in
the books on an accrual basis.

(q) Dividend distribution to equity shareholders

The Company recognises a liability to pay dividend to
equity holders when the distribution is authorised, and the
distribution is no longer at the discretion of the Company.
A corresponding amount is recognised directly in equity.

(r) Critical estimates and judgements

The preparation of financial statements requires the use
of accounting estimates which, by definition, will seldom
equal the actual results. This note provides an overview
of the areas that involved a higher degree of judgment
or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions
turning out to be different than those originally assessed.
Detailed information about each of these estimates
and judgments is included in relevant notes together
with information about the basis of calculation for each
affected line item in the financial statements.

The areas involving critical estimates or judgments are:

- Estimation of Useful life of Property, plant and
equipment and Investment property (Note 2 and 3)

- Estimation of taxes (Note 16 and 26)

- Estimation of provision and assessment of the likely
outcome of contingent liabilities (Note 28)

- Estimation of fair value measurement of financial
assets and liabilities (Note 33)

Estimates and judgments are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events that may
have a financial impact on the Company and that are
believed to be reasonable under the circumstances.

(s) New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

• Ind AS 117 Insurance Contracts

The Ministry of corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated 12 August 2024, under the Companies (Indian
Accounting Standards) Amendment Rules, 2024,
which is effective from annual reporting periods
beginning on or after 1 April 2024.

Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement,

presentation and disclosure. Ind AS 117 replaces
Ind AS 104 Insurance Contracts. Ind AS 117 applies
to all types of insurance contracts, regardless of
the type of entities that issue them as well as to
certain guarantees and financial instruments with
discretionary participation features.

The application of Ind AS 117 had no impact on the
Company''s financial statements as the Company
has not entered any contracts in the nature of
insurance contracts covered under Ind AS 117.

• Ind AS 116 Leases - Lease Liability in a sale and
leaseback

The MCA notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024, which
amend Ind AS 116, Leases, with respect to Lease
Liability in a Sale and Leaseback.

The amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to
ensure the seller-lessee does not recognise any
amount of the gain or loss that relates to the right of
use it retains.

The amendment is effective for annual reporting
periods beginning on or after 1 April 2024 and must
be applied retrospectively to sale and leaseback
transactions entered into after the date of initial
application of Ind AS 116.

The amendment had no impact on the Company''s
financial statements.

(t) Standards notified but not yet effective

There are no standards that are notified and not yet
effective as on the date

(iv) Contractual Obligations

Refer to Note 29 for disclosure of contractual commitments for the purchase, construction or development of investment
property or its enhancements.

(v) Investment properties pledged as security

Refer to Note 13 for information on investment properties and property, plant and equipments pledged as security by the
Company.

(vi) Fair value

As at March 31,2025 and March 31,2024, the fair values of the investment properties excluding capital work in progress
is '' 6,56,958.50 lakhs and '' 4,55,827.04 lakhs respectively. These valuations are based on valuations performed by an
independent valuer who is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation)
Rules, 2017. The main inputs used are the lease rentals, rent escalations, benchmark lease rentals, running costs and
lease management charges. Fair valuation is based on discounted cash flow method. The fair value measurement is
categorised within level 3 fair value hierarchy.

Note (iii): Terms and rights attached to equity shares

The company has only one class of equity shares having par value of '' 1 per share. Each holder of equity shares is entitled
to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held
by the shareholders.

Note (iv): The Company has not issued any equity shares as bonus or for consideration other than cash and has not bought
back any shares during the period of five years immediately preceding March 31,2025.

30. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (“CODM”) of the Company. Executive Director and Chief Executive Officer of the Company has been identified as
CODM who is responsible for allocating resources and assessing performance of the operating segments.

The Company has determined "licensing of investment properties" as a reportable segment as evaluated by the CODM for
allocation of resources and assessing the performance. There are no other reportable segment as per Ind AS 108 - Operating
Segments. All the assets of the Company and source of revenue of the Company is within India and hence, no separate
geographical segment is identified. Revenue from four customers, for the year ended March 31,2025 amounting to '' 42,366.26
lakhs (March 31,2024: '' 44,391.16 lakhs) with whom the Company has entered into leasing arrangements accounts for more
than 10% of the total revenue for the year then ended.

B. Measurement of fair value

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and cash equivalents, other bank balances, trade receivables, other current financial assets,
trade payables, security deposits from licensees and other current financial liabilities approximate their carrying
amounts largely due to short term maturities of these instruments.

2. The fair values of the Company''s interest-bearing borrowings are determined by using discounted cash flow method
using discount rate that reflects the borrowing rate as at the end of the reporting period. The own non-performance
risk as at March 31, 2025 and March 31, 2024 was assessed to be insignificant.

C. Fair value hierarchy

The fair value of financial instruments as referred to above have been classified into three categories depending on the
inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

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

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

During the year there were no transfer between level 1 & level 2 and no transfer into & out of level 3 fair value
measurements.

34. Financial risk management

The Company''s Board of Directors have overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Board of Directors have established the Risk Management Committee, which is responsible
for developing and monitoring the Company''s risk management policies. The Committee reports regularly to the Board
of Directors on its activities. The Company''s financial risk management is an integral part of how to plan and execute its
business strategies.

i. Trade receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However credit risk with regards to trade receivable is not significant for the Company as the Company has 3
to 12 months of rentals as deposit from the licensees.

ii. Cash and bank balances

The Company held cash and cash equivalent and other bank balance of '' 17,393.60 lakhs as at March 31,
2025 (March 31, 2024: 6,095.22 lakhs). The same are held with banks and financial institutions with good
credit rating. Also, the Company invests its short term surplus funds in bank fixed deposit which carry no mark
to market risks for short duration, therefore does not expose the Company to credit risk.

iii. Other financial assets

The Company has held other financial assets which majorly comprise of the security deposits, margin money
held with banks and recoverable from related parties. The margin money held is with the banks and and
financial institution with good credit rating. The security deposits are held with reputed power distribution
company and municipal corporation for water supply, therefore does not expose the Company to credit risk.

B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.
Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis
of expected cash flows.

(C) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates
(interest rate risk), will affect the Company''s income. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates is
very minimal. There are no foreign currency payables or receivable as at the end of each reporting period for which
Company is exposed to foreign currency risk.

The Company closely tracks and observes the movement of foreign currency with regards to '' and also forward
cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

(ii) Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates
primarily to the Company''s long term debt obligation at floating interest rates.

35. Capital management
a. Risk Management

For the purpose of Company''s capital management, capital includes issued equity share capital, securities
premium, all other equity reserves attributable to the equity shareholders of the Company and borrowings. The
primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure
and maximises shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions,
annual operating plans and long term and other strategic investment plans. In order to maintain or adjust the capital
structure, the Company may adjust the amount of dividends paid to shareholders or issue new shares. No changes
were made in the objectives, policies or processes for managing capital during the year ended March 31, 2025 and
March 31,2024.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''equity''. For this purpose, adjusted net debt is
defined as interest-bearing loans and accrued interest thereon less cash and bank balances. Equity comprises all
components of equity including share premium and all other equity reserves attributable to the equity share holders.

37. Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(ii) The Company did not have any transactions with struck off companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(viii) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or
related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are
repayable on demand, or without specifying any terms or period of repayment.

(ix) The Company is not required to file quarterly returns or statements of current assets with banks.

(x) The Company has used the borrowings for the purpose for which it was taken.

38. Maintenance of audit trail and back-up of books of accounts

The Company has used Microsoft SQL, an accounting software, for maintaining its books of account which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software, except that audit trail feature is not enabled at the database level, viz. fa_current, which is a
non SaaS application hosted inhouse, insofar as it relates to the said accounting software. Further no instance of audit
trail feature being tampered with was noted in respect of the said software. Additionally, the Company has recorded and
preserved the audit trail to the extent it was enabled and recorded for respective years.

The Company is maintaining proper books of accounts as required by the law and the back-up of books of accounts is
performed on a daily basis on server located in India.

39. Significant events after the reporting period

There were no significant adjusting events that occurred subsequent to the reporting period.

40. Approval of Ind AS financial statements

The financial statements were approved for issue by the Board of Directors on May 21, 2025.

For and on behalf of the Board of Directors of
NIRLON LIMITED

CIN: L17120MH1958PLC011045

As per our report of even date attached RAHUL V. SAGAR ANJALI K. SETH

For S R B C & CO LLP Executive Director and Chief Executive Officer Director

Firm Registration No : 324982E/E300003 DIN : 00388980 DIN : 05234352

Hemal D Shah MANISH B. PARIKH JASMIN K. BHAVSAR

Partner Chief Financial Officer & Vice President Company Secretary & Vice President

(Finance) (Legal)

Membership No. : 110829 FCS: 4178

Place: Mumbai Place: Mumbai Place: Mumbai

Date: May 21,2025 Date: May 21,2025 Date: May 21,2025

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Mar 31, 2024

(m) Provisions & contingent liabilities Provisions

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. The Company does not recognize a contingent liability but discloses its existence in the financial statements unless the probability of outflow of resources is remote.

(n) Leases

Company as a lessor

At inception of contract, the Company assesses whether the Contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At inception or on reassessment of a contract that contains a lease component, the Company allocates consideration in the contract to each lease component on the basis of their relative standalone price.

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease.

Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company''s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

(o) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

(p) Revenue recognition

Revenue from contract with customers

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Contract assets are transferred to receivables when the rights become unconditional. Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liabilities are recognised as revenue as and when the performance obligation is satisfied. Contract liability is the entity''s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance.

Rental Income

License fee/Lease income and income incidental to it, arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms, unless there is another systematic basis which is more representative of the time pattern of the lease.

Other operating revenue comprises of car parking charges which are recognised as income as per the terms and conditions of the agreement with lessees.

Interest income

Interest income from debt instruments is recognised using the effective interest rate method.

Insurance claims and scrap sales are accounted for in the books on an accrual basis.

(q) Dividend distribution to equity shareholders

The Company recognises a liability to pay dividend to equity holders when the distribution is authorised, and the distribution is no longer at the discretion of the Company. A corresponding amount is recognised directly in equity.

(r) Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgments are:

- Estimation of defined benefit obligation (Note 35)

- Estimation of Useful life of Property, plant and equipment and Investment property (Note 2 and 3)

- Estimation of taxes (Note 6, 17 and 29)

- Estimation of provision and assessment of the likely outcome of contingent liabilities (Note 16 and 31)

- Estimation of fair value measurement of financial assets and liabilities (Note 36)

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the group and that are believed to be reasonable under the circumstances.

(s) Changes in Ind AS and related pronouncements effective at a future date

Ministry of Corporate Affairs (“MCA”) notifies new standard 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, applicable from April 1, 2023, as below:

Ind AS 1 - Disclosure of material accounting policies:

The amendments related to shifting of disclosure of erstwhile “significant accounting policies” to “material accounting policies” in the notes to the financial statements requiring companies to reframe their accounting policies to make them more “entity specific”. This amendment aligns with the “material” concept already required under International Financial Reporting Standards (IFRS).

Ind AS 8 - Definition of accounting estimates:

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a “change in accounting estimates” has been replaced with a definition of “accounting estimates.” Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty.” Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.

Ind AS 12 - Income Taxes

The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12. At the date of transition to Ind ASs, a first-time adopter shall recognize a deferred tax asset to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. Similarly, a deferred tax liability be recognised for all deductible and taxable temporary differences associated with:

a) right-of-use assets and lease liabilities

b) decommissioning, restoration and similar liabilities

and the corresponding amounts recognized as part of the cost of the related asset.

Therefore, if a company has not yet recognised deferred tax on right-of-use assets and lease liabilities or has recognised deferred tax on net basis, the same need to be recognized on gross basis based on the carrying amount of right-of-use assets and lease liabilities

Ind AS 103 - Common control Business Combination

The amendments modify the disclosure requirement for business combination under common control in the first financial statement following the business combination. It requires to disclose the date on which the transferee obtains control of the transferor is required to be disclosed.

The amendments are extensive and the Company is in the process of evaluating the impact of the above amendments on the financial statements.

(v) Contractual Obligations

Refer to Note 29 for disclosure of contractual commitments for the purchase, construction or development of investment property or its enhancements.

(vi) Investment properties pledged as security

Refer to Note 13 for information on investment properties and property, plant and equipments pledged as security by the Company.

(vii) Fair value

As at March 31,2024 and March 31,2023, the fair values of the investment properties excluding capital work in progress is ''4,55,827.04 lakhs and ''434,460.54 lakhs respectively. These valuations are based on valuations performed by an independent valuer who is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The main inputs used are the location, demand, marketability and age of building based on comparable transactions adjusted for functional differences. Fair valuation is based on market method (for land) and replacement cost (for assets other than land). The fair value measurement is categorised within level 3 fair value hierarchy.

30. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. Executive Director and Chief Executive Officer of the Company have been identified as CODM who is responsible for allocating resources and assessing performance of the operating segments.

The Company has determined "licensing of investment properties" as a reportable segment as evaluated by the CODM for allocation of resources and assessing the performance. There are no other reportable segment as per Ind AS 108 -Operating Segments. All the assets of the Company and source of revenue of the Company is within India and hence, no separate geographical segment is identified. Revenue from four customers, for the year ended March 31, 2024, amounting to ''44,391.16 lakhs (March 31, 2023: ''41,124.64 lakhs) with whom the Company has entered into leasing arrangements accounts for more than 10% of the total revenue for the year then ended

B. Measurement of fair value

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and cash equivalents, other bank balances, trade receivables, other current financial assets, trade payables, security deposits from licensees and other current financial liabilities approximate their carrying amounts largely due to short term maturities of these instruments.

2. The fair values of the Company''s interest-bearing borrowings are determined by using discounted cash flow method using discount rate that reflects the borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2024 and March 31, 2023 was assessed to be insignificant.

C. Fair value hierarchy

The fair value of financial instruments as referred to above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

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

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

i. Trade receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is not significant for the Company as the Company has 3 to 12 months of rentals as deposit from the licensees.

ii. Cash and bank balances

The Company held cash and cash equivalent and other bank balance of ''6,095.22 lakh as at March 31, 2024 (March 31, 2023: ?2,299.66 lakh). The same are held with banks and financial institutions with good credit rating. Also, the Company invests its short term surplus funds in bank fixed deposit which carry no mark to market risks for short duration, therefore does not expose the Company to credit risk.

iii. Other financial assets

The Company has held other financial assets which majorly comprise of the security deposits, margin money held with banks and recoverable from related parties. The margin money is held with the banks and and financial institution with good credit rating. The security deposits are held with reputed power distribution company and municipal corporation for water supply, therefore does not expose the Company to credit risk.

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows.

(C) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the Company''s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates is very minimal. There are no foreign currency payables or receivable as at the end of each reporting period for which Company is exposed to foreign currency risk.

The Company closely tracks and observes the movement of foreign currency with regards to INR and also forward cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

(ii) Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligation at floating interest rates.

35. Capital management a. Risk Management

For the purpose of Company''s capital management, capital includes issued equity share capital, securities premium, all other equity reserves attributable to the equity shareholders of the Company and borrowings. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximises shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions, annual operating plans and long term and other strategic investment plans. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue new shares. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,2024 and March 31,2023.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''equity''. For this purpose, adjusted net debt is defined as interest-bearing loans and accrued interest thereon less cash and bank balances. Equity comprises all components of equity including share premium and all other equity reserves attributable to the equity share holders.

37. Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company did not have any transactions with struck off companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961, such as, search or survey or any other relevant provisions of the Income Tax Act, 1961

(viii) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand, or without specifying any terms or period of repayment.

(ix) The Company is not required to file quarterly returns or statements of current assets with banks or financial institutions.

(x) The Company has used the borrowings for the purpose for which it was taken.

38. Maintenance of audit trail

The Company has used Microsoft SQL, an accounting software, for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level, viz. fa_current, which is a non SaaS application hosted inhouse, insofar as it relates to the said accounting software. Further no instance of audit trail feature being tampered with was noted in respect of the said software.

39. Significant events after the reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

40. Other Statutory Information

1. The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand, or without specifying any terms or period of repayment.

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

3. The Company does not have any charges or satisfaction of charges which are yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

4. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

5. The Company has not been declared as willful defaulter by any bank or financial institution or other lender.

6. The Company does not have any transactions with companies struck off under section 248 of the Companies Act,

2013 (as amended) or section 560 of the Companies Act, 1956.

7. The Company has neither traded nor it holds any investment in Crypto currency or Virtual Currency.

8. The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign

entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

9. The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries), or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

10. The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

11. The Company is not required to file quarterly returns or statements of current assets with banks or financial institutions.

12. The Company has used the borrowings for the purpose for which it was taken.

41. Significant Events after the reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

42. Approval of Ind AS financial statements

The financial statements were approved for issue by the Board of Directors on May 15, 2024.

For and on behalf of the Board of NIRLON LIMITED

As per our report of even date RAHUL V. SAGAR ANJALI K. SETH

For S R B C & CO LLP Executive Director and Chief Director

Firm Registration No : 324982E/ Executive Officer DIN : 05234352

E300003 DIN :00388980

ABHISHEK K. AGARWAL MANISH B. PARIKH JASMIN K. BHAVSAR

P_artn_er Chief Financial Officer Company Secretary & Vice President (Legal)

Membership No. : 112773 ^{FCS: 4178}

Date: May 15, 2024 Date: May 15, 2024 Date: May 15, 2024

Place: Mumbai Place: Mumbai Place: Mumbai

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Mar 31, 2023

(i) Buildings include building purchased at Worli, Mumbai having a written down value of '' Nil lakhs as at March 31, 2023 (March 31,2022 : '' Nil), being the 75% share of the Company in the property which is jointly owned with Nirlon Foundation Trust.

(ii) The Company has changed its method of depreciation from written down value method to straight-line method w.e.f.

October 1, 2022. Accordingly, depreciation is lower and net profit before tax is higher by '' 4817.03 lakhs for year ended March 31, 2023 respectively.

(iv) Contractual Obligations

Refer to Note 32 for disclosure of contractual commitments for the purchase, construction or development of investment property or its enhancements.

(v) Investment properties pledged as security

Refer to Note 14 and Note 19 (Non current borrowings and short term borrowings) for information on investment properties and property, plant and equipments pledged as security by the Company.

(vi) Fair value

As at March 31, 2023 and March 31,2022, the fair values of the investment properties excluding (capital work in progress) are '' 434,460.54 lakhs and '' 435,764.99 lakhs respectively. These valuations are based on valuations performed by an independent valuer who is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The main inputs used are the location, demand, marketability and age of building based on comparable transactions adjusted for functional differences. Fair valuation is based on market method (for land) and replacement cost (for assets other than land). The fair value measurement is categorised within level 3 fair value hierarchy.

Note (iii): Terms and rights attached to equity shares

Equity shares have a par value of '' 10. They entitle the holder to participate in dividends and to share in the proceeds of winding up of the Company in proportion to the number of and amounts paid on the shares held. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

1. During the year ended March 31, 2023, the Company has entered into a term loan agreement with the Hongkong and Shanghai Banking Corporation Limited (HSBC) for an aggregate sum of up to '' 1,23,000.00 lakhs. The proceeds from the said loan has been used to repay the existing loan of '' 1,17,986.57 lakhs availed by the Company from HDFC Limited along with prepayment and other related charges amounting to '' 2,507.23 lakhs which has been recognized as finance cost in the financial statements.

2. The loan from HSBC has a term of 10 years (including 5 years of principal moratorium). Repayment will start from 61st month from the date of disbursement of loan.

3. The loans from HSBC has been secured by way of first and exclusive charge over immovable properties (including land and buildings), lease receivable, escrow account and debt service reserve account of Nirlon Knowledge Park (NKP). The loan from HDFC Limited was secured by a charge in the nature of an equitable mortgage by deposit of title deeds of land situated at Goregaon, Mumbai together with buildings and structures standing thereon, both present and future, and right, title and interest in the license fee receivables.

4. Rate of floating interest rate at each reporting date :

March 31,2023 8.80%

March 31,2022 6.70%

1. The Company recognizes revenue over time based on satisfaction of its performance obligation pertaining to common area maintenance of properties given on lease and recovery of administrative costs. Customers are billed on a monthly basis.

2. Revenue pertaining to maintenance of common area of properties given on lease and recovery of administrative costs has been separately disclosed above. There are no other sources of revenue from contracts with customers and accordingly, no further disaggregation of revenue is disclosed.

3. There are no performance obligations that are partially unsatisfied as at March 31, 2023 or as at March 31,2022.

In accordance with the Income Tax Act, 1961, domestic companies have the option to pay income tax at 22% plus applicable surcharge and cess (''new tax regime'') subject to certain conditions. In the earlier year, the Company had estimated transition to the new tax regime in financial year 2021-22 based on the potential impact evaluation done then. However, the Company expects to continue in the old tax regime. Accordingly, during the year ended March 31, 2022, the Company has recognized tax expense on account of remeasurement of tax balances pertaining to earlier years. .

The Central Excise and Service Tax Appellate Tribunal (CESTAT) has decided the matter in favour of the Company. However, the service tax authorities has preferred appeals in High Court which is pending for disposal.

Future cash flow in respect of the above, if any, is determinable only on receipt of judgements / decisions pending with the relevant authorities.

Code on Social Security, 2020

The Code on Social Security, 2020 (''Code'') has been notified in the Official Gazette on 29th September, 2020.The Code is not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which said Code becomes effective and the rules framed thereunder are notified.

33. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. Executive Director and Chief Executive Officer of the Company has been identified as CODM who is responsible for allocating resources and assessing performance of the operating segments.

The Company has determined "licensing of investment properties" as a reportable segment as evaluated by the CODM for allocation of resources and assessing the performance. There are no other reportable segment as per Ind AS 108 - Operating Segments. All the assets of the Company and source of revenue of the Company is within India and hence, no separate geographical segment is identified. Revenue from four group customers (March 31, 2022: four group customers) amounting to '' 41,124.64 lakhs (March 31, 2022: '' 24,617.55 lakhs) accounts for more than 10% of the total revenue with whom the Company has entered into leasing arrangements.

The Company''s material related party transactions and outstanding balances are with related parties with whom the Company routinely enters into transactions in the ordinary course of business. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. Transactions relating to dividends were on the same terms and conditions as applied to other shareholders.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the Balance Sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. The fair values of the Company''s interest-bearing borrowings and loans are determined by using discounted cash flow method using discount rate that reflects the borrowing rate as at the end of the reporting period. The own nonperformance risk as at March 31, 2023 and March 31, 2022 was assessed to be insignificant.

3. The fair values of security deposit were calculated based on cash flows discounted using a lending rate.

C. Fair value hierarchy

The fair value of financial instruments as referred to above have been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

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

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The following table provides the fair value measurement hierarchy of the Company''s assets and liabilities

37. Financial Risk Management

The Company''s Board of Directors have overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors have established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Committee reports regularly to the Board of Directors on its activities. The Company''s financial risk management is an integral part of how to plan and execute its business strategies.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk

• Liquidity risk and

• Market risk

i. Trade and Other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However credit risk with regards to trade receivable is not significant for the Company as the Company has 3 to 12 months of rentals as deposit from the licensees.

ii. Cash and bank balances

The Company held cash and cash equivalent and other bank balance of '' 2,299.66 lakhs as at March 31,2023 (March 31,2022: 10,018.63 lakhs) . The same are held with banks and financial institution counterparties with good credit rating. Also, company invests its short term surplus funds in bank fixed deposit which carry no mark to market risks for short duration, therefore does not expose the Company to credit risk.

iii. Other financial assets

The Company has held other financial assets which majorily comprise of the security deposits, margin money held with banks and recoverable from related parties. The margin money held is with the banks and financial institution counterparties with good credit rating. The security deposits are held with reputed power distribution company and municipal corporation for water supply, therefore does not expose the Company to credit risk.

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected Cash Flows.

(i) The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments.

# where due date of payment is not available, date of transaction has been considered (C) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the Company''s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates is very minimal. There are no foreign currency payables or receivable as at the end of each reporting period for which Company is exposed to foreign currency risk.

The Company closely tracks and observes the movement of foreign currency with regards to '' and also forward cover rate. The Company decides to cover or keep the foreign currency exposure open based on the above.

(ii) Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligation at floating interest rates.

a. Risk Management

For the purpose of Company''s capital management, capital includes issued equity share capital, securities premium, all other equity reserves attributable to the equity shareholders of the Company and borrowings. The primary objective of the Company''s capital management is to ensure that it maintains an efficient capital structure and maximises shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions, annual operating plans and long term and other strategic investment plans. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders or issue new shares. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023 and March 31, 2022.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''equity''. For this purpose, adjusted net debt is defined as interest-bearing loans and accrued interest thereon less cash and bank balances. Equity comprises all components of equity including share premium and all other equity reserves attributable to the equity share holders.

The Company''s adjusted net debt to equity ratio is as follows.

40. Other Statutory Information

1. The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand, or without specifying any terms or period of repayment.

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

3. The Company does not have any charges or satisfaction of charges which are yet to be registered with the Registrar of Companies (ROC) beyond the statutory period.

4. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

5. The Company has not been declared as willful defaulter by any bank or financial institution or other lender.

6. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 (as amended) or section 560 of the Companies Act, 1956.

7. The Company has neither traded nor it holds any investment in Crypto currency or Virtual Currency.

8. The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

9. The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries), or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

10. The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

11. The Company has been sanctioned working capital limits in excess of '' five crores in aggregate from banks during the year on the basis of security of current assets of the Company. The Company has not filed return or the statement of current asset with the banks and hence reconciliation and material discrepancies of the books of accounts with return or statement has not been disclosed.

12. The Company has used the borrowings for the purpose for which it was taken.

41. Significant Events after the reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

42. Approval of Ind AS financial statements

The financial statements were approved for issue by the Board of Directors on May 23, 2023

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Mar 31, 2018

Specifically, the standard introduces a 5-step approach to revenue recognition:

Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligation in contract Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

The Company is evaluating the impact of the standard on the financial position and results of operations. As per the transitional provision of the standard, the Company shall apply this Standard using one of the following two methods:

(i) Retrospectively to each prior reporting period presented in accordance with Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors. The standard is applied retrospectively only to contracts that are not completed contracts at the date of initial application;

(ii) Retrospectively with the cumulative effect of initially applying this Standard recognised at the date of initial application.

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

The amendment clarifies on the accounting of transactions that include the receipt or payment of advance consideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. If there are multiple payments or receipts in advance, a date of transaction is established for each payment or receipt. Company is evaluating the impact of this amendment on its Financial Statements.

There are no other standards, changes in standards and interpretations that are not in force up to reporting period that the Company expects to have a material impact arising from its application in its Financial Statements.

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Mar 31, 2017

1. The Company has not received any intimation from ‘suppliers’ regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

2. Balances of sundry debtors, creditors, loans and advances and deposits are subject to confirmation.

* of the above, professional fees capitalized Rs,45.39 lakh (previous year Rs,32.52 lakh), and travelling expenses capitalized Rs,0.67 lakh (previous year Rs, Nil).

3. SEGMENT REPORTING :

There are no other reportable segments as per AS 17 (Segment Reporting), except licencing of immovable property for the year.

4. DISCLOSURE IN RESPECT OF LEAVE & LICENSE (AS PER AS19)

1. Assets given on leave & license

a. General description of leave & license arrangements

i. Licensed assets : Licensing of commercial premises

ii. Future license fees are determined on the basis of agreed terms.

b. Future minimum license fee payments receivable under non-cancellable leave & license agreements:

2. Assets taken on leave & license

The total amount (net of recovery) recognized in the Statement of Profit and Loss is Rs,1.02 lakh (previous year Rs,1.58 lakh).

5. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS :

The list of related parties are as stated below :

Name Nature of relation

Mr. Rahul V. Sagar, Key Managerial Personnel

Executive Director

Mr. Kunal V. Sagar, Director Key Managerial Personnel upto 25.9.2015 & Brother of Mr. Rahul V. Sagar Nirlon Management Services Mr. Kunal V. Sagar & Pvt. Ltd. Mr. Rahul V. Sagar are both

Directors in that Company and together hold a majority of voting rights.

Reco Berry Pvt. Ltd. Holds 63.92% Shares in the

Company

Manisha Trading & Mr. Kunal V. Sagar & Mr. Rahul

Investments Pvt. Ltd. V. Sagar are both Directors in

that Company and Mr. Rahul V. Sagar holds a majority of voting rights.

6.DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE:

a. Derivative instruments :

The Company uses foreign exchange, forward contracts to hedge its exposure to movements in the foreign exchange rates.

Derivative instruments have been acquired to hedge buyers credit.

7. Miscellaneous receipts under Note No 2.19 includes Foreign Exchange gain amounting to Rs,24.05 lakh (previous year loss of Rs,28.16 lakh included in the Miscellaneous Expenses).

8. Property Management expenses include expenses which are recoverable as Common Area Maintenance from licensees.

9. Previous year’s figures have been re-arranged and regrouped wherever necessary to confirm to the classification adopted for the current year.

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Mar 31, 2016

Notes :

1. Previous year''s figures are given in brackets.

2. The above assets do not include the assets, the value of which are recoverable from the licencees as Common Area Maintenance charges.

3. Of the above, a certain portion of the assets have been given on Leave & License. The details of major assets are as under :

4. Buildings include building constructed on Leasehold Land at Worli, Mumbai having a written down value of Rs, 56.62 lakh (Previous year Rs, 67.39 lakh), being the share of the Company in the property which is jointly owned with Nirlon Foundation Trust.

5. Based on valuation reports submitted by M / s. I.H. Shah & Asociates, Approved Valuers, the following Assets of Goregaon had been revalued on 1st April, 1984, 30th June, 2006 and 31st March, 2012 on the basis of assessment of their market value. The company had restated the buildings so revalued to their original cost with effect from 1st April 2014. The amounts by which they were written up and reversed are as indicated below :

a) Excise duty of Rs, 110.53 lakh and interest thereon of Rs, 236.59 lakh based on the Supreme Court order received during the year in relation to manufacture of Nylon Tyrecord Yarn and Fabrics for the period April 1999 to June 2000.

b) Liquidated damages of Rs, 13.45 lakh and interest thereon of Rs, 5.35 lakh on delayed payment of Provident Fund dues for the period January 2000 to February 2007.

c) Property tax write back is for earlier years on account of assessment as per the Capital Value system.

d) Sale of receivables is with respect to sale of receivables of future license fees from licensees of the Nirlon House premises owned by the Company of Rs, 444.60 lakh, less expenses thereon of Rs, 15.81 lakh

* of the above, professional fees capitalized Rs, 32.52 lakh (previous year Rs, 85.82 lakh), and Buyers credit interest capitalised Rs, Nil lakh (previous year Rs, 5.13 lakh).

6. COMMITMENTS (As certified by the Management)

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs, 2,301.00 lakh (previous year Rs, 538.56 lakh).

7. The company has not received any intimation from “suppliers” regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

8. Balances of sundry debtors, creditors, loans and advances and deposits are subject to confirmation.

9. SEGMENT REPORTING :

There are no other reportable segments as per AS 17 (Segment Reporting), except licencing of immovable property for the year.

10. DISCLOSURE IN RESPECT OF LEAVE & LICENSE (As per AS19)

1) Assets given on leave & license

a) General description of leave & license arrangement

i) Licensed assets : Licensing of commercial premises

ii) Future License fees are determined on the basis of agreed terms.

b) Future minimum license fee payments receivable under non-cancellable Leave & License agreements:

2) Assets taken on leave & license

The total amount (net of recovery) recognized in the Statement of Profit and Loss is Rs, 1.58 lakh (previous year Rs, 1.43 lakh.

b) Contribution to Provident Fund and Other Funds charged to Statement of Profit & Loss stated under the Defined Contribution Plans is Rs, 190.26 lakh (previous year Rs, 194.17 lakh).

11.DISCLOSURE OF RELATED PARTIES / RELATED PARTY TRANSACTIONS : The list of related parties are as stated below :

Name Nature of relation

Mr. Rahul V. Sagar, Key Managerial Personnel

Executive Director

Mr. Kunal V. Sagar, Director Key Managerial Personnel up to 25.9.2015 & brother of Mr. Rahul Sagar Mrs. Mallika V. Advani Sister of Mr. Kunal Sagar & Mr. Rahul Sagar

Mrs. Maneesha R. Bhat Sister of Mr. Kunal Sagar & Mr. Rahul Sagar

12. Property Management expenses include expenses which are recoverable as Common Area Maintenance from licensees.

13. Derivative instruments and unhedged foreign currency exposure :

(a) Derivative instruments :

The Company uses foreign exchange, forward contracts to hedge its exposure to movements in the foreign exchange rates.

Derivative instruments have been acquired to hedge buyers credit facilities.

14. Borrowing cost capitalised during the year - Rs, 300.81 lakh (previous year Rs, 936.80 lakh).

15. Miscellaneous expenses under Note No 2.22 includes Foreign Exchange loss amounting to Rs, 28.16 lakh (previous year gain of Rs, 49.01 lakh included in the miscellaneous income.)

16. Previous year''s figures have been re-arranged and re-grouped wherever necessary to conform to the classification adopted for the current year.

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Mar 31, 2015

1 Basis for preparation of the Financial Statements :

The Financial Statements are prepared in accordance with Generally Accepted Accounting Principles ('GAAP') in India under the historical cost convention on accrual basis except if specifically stated otherwise.These Financial Statements have been prepared to comply in all material respects with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014.

2 Rights, Preferences and Restrictions attached to the Shares.

Equity Shares:

i) The Company has only one class of equity shares having a par value of Rs. 10.

Each holder of equity shares is entitled to one vote per share. The Shareholders have the right to receive interim dividends declared by the Board of Directors and final dividends proposed by the Board of Directors and approved by the Shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The Shareholders have all other rights as available to equity Shareholders as per the provisions of the Companies Act, 2013, read together with the Memorandum of Association & Articles of Association of the Company, as applicable.

3 Shares Issued to the Nirlon Employees Stock Option Trust

In accordance with the Nirlon ESOP 2012, during the financial year 2013-14 the Company had issued 7,17,656 shares of Rs. 10 each at a premium of Rs. 31.30 per share to the Nirlon Employees Stock Option Trust. The Company had provided a loan of Rs.296.39 lac to the Trust for subscribing such shares. As on 31st March, 2015, 6,80,000 (previous year nil) options have been excercised equal to 6,80,000 number of shares. In accordance with the provision of the Guidance Note on Accounting for Employee Share-based payments, the outstanding loan amount given to the Trust is disclosed as recoverable under the head Share Capital & Securities Premium Reserves.

Pursuant to the Resolution passed by the Shareholders of the Company by way of postal ballot on May 23, 2012, the Company granted 7,15,000 stock options to its employees at an issue price of Rs. 41.30 per share on May 30, 2012 in accordance with the Nirlon ESOP 2012. Each option entitles the holder to purchase one Equity Share of the Company at the issue price.

The weighted average contractual life for the stock options was 5 years and they vested at the rate of 15%, 20%, 25%, 40% at the end of 15 months, 30 months, 42 months, 54 months respectively from the date of grant. During the year, the Nomination and Remuneration Committee has vide its Resolution dated February 9, 2015, accelerated the vesting period for all the unvested options to February 15, 2015 and accelerated the exercise period for all the options upto September 30, 2016. According all the options granted have been already vested.

4 The Board of Directors, in their meeting held on May 7, 2015 proposed a dividend of 7.50 % i.e. Rs. 0.75 paise per equity share on the face value of Rs. 10 (previous year Rs. 0.75 paise per equity share of Rs. 10 each) . The proposal is subject to the approval of shareholders at the ensuing Annual General Meeting. Dividend amounting to Rs. 675.88 lac (previous year Rs. 560.55 lac) and dividend distribution tax thereon amounting to Rs. 137.62 lac (previous year Rs. 95.27 lac) is appropriated during the year.

5 At the AGM held on September 23, 2014, the shareholders approved the dividend for the year 2013-14 on a prorata basis on the equity shares issued during the year 2013-14. However, subsequently, the Bombay Stock Exchange informed the Company that the dividend should not be on a prorata basis as equity shares issued during the year 2013-14 rank pari passu in all respects with the then existing equity shares of the Company. Accordingly, the differential dividend of Rs. 115.33 lac and tax thereon of Rs. 19.61 lac aggregating to Rs. 134.94 lac has also been appropriated during the year by debiting the same to surplus.

6 Buildings include building constructed on Leasehold Land at Worli, Mumbai having a written down value of Rs. 67.39 lac (previous year Rs. 2.38 lac), being the share of the Company in the property which is jointly owned with Nirlon Foundation Trust.

7 CONTINGENT LIABILITIES

i) Claims against the Company not acknowledged as debts Rs. 12.81 lac (previous year Rs.12.81 lac) - as certified by the Management.

ii) Contingent liabilities not provided for :

(Rs. In Lac)

As at As At 31-Mar-15 31-Mar-14

Excise Duty 963.61 1,167.79

Service Tax 2,012.19 2,012.19

Income Tax 55.33 55.33

Value Added Tax 35.40 35.45

8 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

9 Balances of sundry debtors, creditors, loans and advances and deposits are subject to confirmation.

10 SEGMENT REPORTING

There are no other reportable segments as per AS 17 (Segment Reporting), except licencing of immovable property for the year.

11 DISCLOSURE IN RESPECT OF LEAVE & LICENSE (AS PER AS19)

1 ) Assets given on leave & license:

a) General description of leave & license arrangement

i) Licensed assets : Licensing of commercial premises

ii) Future License fees are determined on the basis of agreed terms.

12 Disclosure of Related parties/related party transactions :

The list of related parties are as stated below : Related parties :

Key Management Personnel :

Shri Kunal V. Sagar, Executive Vice Chairman Shri Rahul V. Sagar, Executive Director Smt. Mallika V. Advani (Sister of Shri Kunal Sagar & Shri Rahul Sagar) Smt Maneesha R. Bhat (Sister of Shri Kunal Sagar & Shri Rahul Sagar)

13 Borrowing cost capitalised during the year - Rs. 936.80 lac (previous year Rs. 1811.44 lac).

14 Miscellaneous receipts under Note No 2.19 includes Foreign Exchange gains amounting to Rs. 49.01 lac (previous year Rs. 56.17 lac.)

15 Property Management expenses include expenses which are recoverable as Common Area Maintenance from licensees.

16 Derivative instruments and unhedged foreign currency exposure :

(a) Derivative instruments :

The Company uses foreign exchange, forward contracts to hedge its exposure to movements in the foreign exchange rates.

Derivative instruments have been acquired to hedge buyers credit.

17 Consequent to the applicability of the Companies Act, 2013, with effect from April 01, 2014, depreciation for the year ended March 31, 2015 has been calculated based on the useful life as specified in Schedule II of the said Act. Depreciation in respect of fixed assets whose useful life is already exhausted as on April 01, 2014 is charged in the Statement of Profit and Loss amounting to Rs. 53.69 Lac after retaining the salvage value in accordance with the requirements of Schedule II of the said Act. Accordingly, depreciation for the current year is not comparable with that of the previous year.

18 As per the disclosure made on May 5, 2015 (for April 30, 2015) under Regulation 13 of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, filed by M/s. Reco Berry Pvt. Ltd. with Bombay Stock Exchange, M/s. Reco Berry Pvt. Ltd. has acquired 5,57,59,872 equity shares of the Company aggregating to 61.87 % of the total share capital of the Company. Further, M/s. Reco Berry Pvt. Ltd. is classified as a Promoter of the Company.

19 Previous year's figures have been re-arranged and re-grouped wherever necessary to confirm to the classification adopted for the current year.

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Mar 31, 2014

1.a. Rights, Preferences and Restrictions attached to the Shares Equity Shares :

i) The Company has only one class of equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. The Shareholders have the right to receive interim dividends declared by the Board of Directors and final dividend proposed by the Board of Directors and approved by the Shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

The Shareholders have all other rights as available to equity Shareholders as per the provisions of the Companies Act, 1956, read together with the Memorandum of Association & Articles of Association of the Company, as applicable.

ii) During the year the Company allotted 1,76,34,798 Equity Shares of Rs. 10/- each @ premium of Rs. 33.76 per share to Promoters and Others on a Preferential basis in compliance with SEBI (ICDR) Regulations, 2009.

Preference Shares:

The Company has only one class of Authorised Preference Shares having a par value of Rs. 100/-.

Rate of dividend on Preference Shares (subject to the rate not exceeding 11 % per annum) and the terms of redemption will be determined at the time of issue subject to provisions of such Acts as may be applicable.

b. Shares Issued to the Nirlon Employees Stock Option Trust

In accordance with the Nirlon ESOP 2012, during the year the Company has issued 7,17,656 shares of Rs. 10/- each at a premium of Rs. 31.30 per share to the Nirlon Employees Stock Option Trust. The Company has provided a Loan of Rs. 296.39 lac to the Trust for subscribing such shares. As on 31st March, 2014 none of the employees have excerised the options. In accordance with the provision of the Guidance Note on Accounting for Employee Share-based Payments, the Loan amount given to Trust is disclosed as Recoverable under the head Share Capital & Securities Premium Reserves.

Nirlon ESOP Plan 2012

Pursuant to the Resolution passed by the Shareholders of the Company by way of a postal ballot on May 23, 2012, the Company granted 7,15,000 stock options to its employees at an issue price of Rs. 41.30 per share on May 30, 2012 in accordance with Nirlon ESOP 2012. Each option entitles the holder to purchase one Equity Share of the Company at the issue price.

The weighted average contractual life for the stock options is 5 years and vests at the rate of 15%, 20%, 25%, 40% at the end of 15 months, 30 months, 42 months, 54 months respectively from the date of grant and becomes fully exercisable.

c. The Board of Directors, in their meeting held on 27th May, 2014 proposed a dividend of Rs. 0.75 paise (7.5%) per equity share on a face value of Rs. 10/-. The proposal is subject to the approval of Shareholders at the ensuing Annual General Meeting. The proposed dividend amounting to Rs. 560.55 lac and dividend distribution tax thereon amounting to Rs. 95.27 lac is appropriated during the year.

The loan from HDFC Ltd. is secured by a charge in the nature of an equitable mortgage by deposit of title deeds of land situated at Goregaon, Mumbai together with buildings and structures standing thereon, both present and future, and right, title and interest in the license fees receivables.

# The amount of each installment is subject to change based on changes in Interest rates & other factors.

* The terms of repayment for Loan 2 will be finalised once the same is securitised, as done for Loan 1.

The Buyers Credit facility provided by HDFC Bank is repayable on demand. The amount is secured by way of earmarking, facilities to this extent, (vide a letter of undertaking from HDFC Ltd. to HDFC Bank) out of the total facility granted by HDFC Ltd to the Company. Refer Note 2.3 for security provided to HDFC Ltd.

2. Buildings include the building constructed on Leasehold Land at Worli, Mumbai having a written down value of Rs. 2.38 lac (Previous year Rs. 2.50 lac), being the share of the Company in the property which is jointly owned with Nirlon Foundation Trust.

3. CONTINGENT LIABILITIES

i) Claims against the Company not acknowledged as debts Rs. 12.81 lac (Previous Year Rs. 12.81 lac) as certified by the Management.

ii) Contingent liabilities not provided for :

(Rs. in lac) As at As at 31-Mar-14 31-Mar-13

Excise Duty 1,167.79 1,144.74

Service Tax 2,012.19 1,078.40

Income Tax 55.33 -

Value Added Tax 35.45 -

4. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

5. Balances of sundry debtors, creditors, loans and advances and deposits are subject to confirmation.

* of the above, professional fees capitalized Rs. 124.51 lac (Previous Year Rs. 77.96 lac), and Buyers Credit interest capitalised Rs. 13.89 lac (Previous Year Rs. 1.48 lac).

6. SEGMENT REPORTING

There are no reportable segments as per AS 17 (Segment Reporting), except licencing of immovable property for the year.

7. DISCLOSURE IN RESPECT OF LEAVE & LICENSE (As per AS19)

1. Assets given on leave & license

a) General description of leave & license arrangement

i) Licensed assets : Licensing of commercial premises

ii) Future License fees are determined on the basis of agreed terms.

b) Contribution to Provident Fund and Other Funds charged to Statement of Profit & Loss stated under Defined Contribution Plans is Rs. 198.81 lac (Previous Year Rs. 210.60 lac).

8. Disclosure of Related parties/related party transactions :

The list of related parties are as stated below :

Related parties :

Key Management Personnel Executive Directors :

Shri Kunal V. Sagar, Executive Vice Chairman Shri Rahul V. Sagar, Executive Director

Note : The Board of Directors and the Shareholders of the Company have approved Issue of Equity shares on a preferential basis to various persons including Shri Kunal V. Sagar - Executive Vice Chairman and Shri Rahul V. Sagar - Executive Director at their meeting held on December 26, 2013 and January 27, 2014 respectively. Accordingly, the Committee of Directors has allotted Equity shares to Shri Kunal V. Sagar - Executive Vice Chairman and Shri Rahul V. Sagar - Executive Director on a Preferential basis at their meeting held on February 6, 2014.

9. Borrowing cost capitalised during the year Rs. 1,811.44 lac (Previous Year Rs. 1,631.87 lac).

10. Miscellaneous receipts under Note No 2.19 includes Foreign Exchange gain amounting to Rs. 56.17 lac (Previous Year Rs. 3.96 lac)

11. The Exceptional itemf for the financial years 2013-14 & 2012-13 is on account of write back of Property Tax liability of the earlier years due to retrospective amendment in respect of the property tax levied by the appropriate authorities.

12. Property Management expenses include expenses which are recoverable as Common Area Maintenance from licensees.

13. Derivative instruments and unhedged foreign currency exposure :

(a) Derivative instruments :

The Company uses foreign exchange forward contracts to hedge its exposure to movements in foreign exchange rates.

Derivative instruments have been acquired to hedge buyers credit.

14. Previous year''s figures have been re-arranged and re-grouped wherever necessary to confirm to the classification adopted for the current year.

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Mar 31, 2013

1.1 Contingent Liabilities

i) Claims against the Company not acknowledged as debts Rs. 12.81 lacs (previous year Rs. 12.81 lacs) as certified by the Management.

ii) Contingent liabilities not provided for :

(Rs.In lacs)

As at As at 31-Mar-13 31-Mar-12

Excise Duty 1,14,4.74 985.28

Service Tax 1,078.40 1,078.40

1.2 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

1.3 Balances of sundry debtors, creditors, loans and advances and deposits are subject to confirmation.

1.4 Segment Reporting

There are no other reportable segments as per AS 17 (Segment Reporting), except licencing of immovable property for the year.

1.5 Disclosure in Respect of Leave & License (As per AS19)

1. Assets given on leave & license

a) General description of leave & license arrangement

i) Licensed assets : Licensing of commercial premises

ii) Future License fees are determined on the basis of agreed terms.

1.6 Borrowing cost capitalised during the year Rs. 1,631.87 lacs (previous year Rs. 346.33 lacs).

1.7 Current Tax pertains to Minimum Alternate Tax (MAT) Rs. 490.00 lacs (previous year Rs. 75.52 lacs, provision for Income Ta x of the earlier years and Rs. 0.53 lacs Provision for Fringe Benefit Ta x of earlier years).

1.8 Miscellaneous receipts under Note No 2.19 includes Foreign Exchange gain amounting to Rs. 3.96 lacs (previous year Rs. 3.48 lacs Foreign Exchange loss considered under Miscellanoues expenses under Note No.2.22)

1.9 The Exceptional item for the Financial Year 2012-13 is on account of the write back of the Property Ta x liability of the earlier years due to the retrospective amendment in respect of the Property Tax levied by the appropriate authorities.

1.10 Property Management expenses include expenses which are recoverable as Common Area Maintenance from licensees.

1.11 Previous year''s figures have been re-arranged and re-grouped wherever necessary to confirm to the classification adopted for the current year.

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Mar 31, 2012

A. Rights, Preferences and Restictions attached to Shares Equity Shares :

The Company has only one class of Equity Shares having a par value of Rs. 10/-.

Each holder of Equity Shares is entitled to one vote per share. The shareholders have the right to receive interim dividends declared by the Board of Directors and final dividend proposed by the Board of Directors and approved by the Shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of Equity Shares held by the shareholders.

The shareholders have all other rights as available to equity shareholders as per the provisions of the Companies Act, 1956, read together with the Memorandum of Association & Articles of Association of the Company, as applicable.

During the year, the Company has issued 1,35,49,000 equity shares on a preferential basis which have a lock in period of one year from the date of allottment as per Securities & Exchange Board of India (SEBI) Regulations.

Preference Shares :

The Company has only one class of Authorised Preference shares having a par value of Rs. 100/-.

Rate of dividend on Preference Shares (subject to rate not fexceeding 11 % per annum) and the terms of redemption will be determined at the time of issue subject to the provisions of such Acts as may be applicable.

1. Buildings include building constructed on Leasehold Land at Worli, Mumbai having written down value of Rs. 2.63 lacs (Previous year Rs. 2.77 lacs), being the share of the Company in the property which is jointly owned with Nirlon Foundation Trust.

2.1 Commitments (As certified by the Management)

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs. 8,716.33 lacs (previous year Rs. 6,543.16 lacs).

b) Other Commitments : Rs. Nil (Previous year Rs. Nil)

Excludes Commitment given to ex-employees.

2.2 Contingent liabilities

i) Claims against the Company not acknowledged as debts Rs. 12.81 lacs (previous year Rs. 12.81 lacs) as certified by the Management.

2.3 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

2.4 Balances of sundry debtors, creditors, loans and advances and deposits are subject to confirmation.

2.5 Segment reporting

There are no other reportable segments as per AS 17 (Segment Reporting), except licencing of immovable property for the year.

2.6 Borrowing cost capitalised during the year Rs. 346.33 lacs (previous year Rs. 1,368.58 lacs).

2.7 Current Tax pertains to Provision for Income Tax of previous years Rs. 75.52 Lacs (previous year Rs. Nil) and Provision for Fringe Benefit Tax of previous years Rs. 0.53 lacs (previous year Rs. Nil)

2.8 Miscellaneous expenses under note 2.22 includes foreign exchange loss amounting to Rs. 3.48 lacs (Prevoius year Rs. Nil).

2.9 Property Management expenses include expenses which are recoverable as Common Area Maintenance from licensees.

2.10 The Company has discontinued its operations at Tarapur, Dist. Thane.

2.11 Previous year's figures have been re-arranged and re-grouped wherever necessary to confirm to the classification adopted for the current year.

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs.6543.16 (previous year Rs.3536.67 lacs).

2. i) Contingent liabilities not provided for :

(Rs. In lacs)

As at As at

31-03-2011 31-03-2010

Excise Duty 1,123.34 1,112.89

Property Tax 67.98 187.39

Income Tax - 40.54

ii) Claims against the Company not acknowledged as debts Rs. 12.81 lacs (previous year Rs. 92.94 lacs).

3. The company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of the Companies Act, 1956 could not be provided.

4. Balances of sundry debtors, creditors, loans and advances and deposits are subject to confirmation.

5. Segment reporting :

There are no other reportable segments as per AS 17 (Segment Reporting), except licencing of immovable property for the year. Hence previous years figures have not been disclosed.

6. Disclosure in respect of Leave & License (As per AS19)

Assets given on Leave & License

a) General description of Leave & License arrangement

i) Licensed assets : Licensing of commercial premises

ii) Future License fees are determined on the basis of agreed terms.

b) Future minimum License fee payments receivable under non-cancellable Leave & License agreements:

Assets taken on Leave & License :

The premises taken on Leave & License by the Company is cancellable. The total amount recognised in the Profit and Loss Account for the same is Rs.2.48 lacs (previous years Rs.2.24 lacs).

7. Deferred Tax

Deferred Tax Adjustments for the year amounting to Rs.4.01 lacs (previous year Rs. 28.30 lacs) have been recognised in the Profit and Loss Account.

Deferred Tax Asset on account of unabsorbed depreciation and brought forward business losses has been recognised, as the Company is of the opinion that there is virtual certainty of realisation of the same in view of the expected profits of the Company.

8. Borrowing cost capitalised during the year Rs. 1,368.58 lacs (previous year Rs.3,361.99 lacs).

9. The Company is in the process of discontinuing its operations at Tarapur, Dist Thane.

10. Previous year's figures have been re-arranged and re-grouped wherever necessary to confirm to the classification adopted for the current year.

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Mar 31, 2010

1. The estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs.3,536.67 lacs (previous year Rs.10,077.48 lacs).

2. (i) Contingent liabilities not provided for (excluding interest):

a) Excise duty amounting to Rs.1,112.89 lacs (previous year Rs.1,112.89 lacs), pending de- cision of the Appellate Tribunal/Supreme Court.

1) Supreme court - Rs.813.73 lacs

2) CESTAT - Rs.233.49 Lacs.

3) Commissioner (appeals) - Rs.65.66 Lacs.

b) Demand of Property tax by Municipal Corpora- tion of Greater Mumbai disputed by the Com- pany Rs.187.39 lacs (previous year Rs.634.62 lacs)

c) Income tax demands amounting to Rs. 40.54 lacs (previous year Rs.Nil) disputed by the Company.

Commissioner of Income Tax (appeals) - Rs.40.54 Lacs

ii) Claims against the Company not acknowledged as debts Rs. 92.94 lacs (previous year Rs.12.81 lacs).

3. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of the Companies Act, 1956 could not be provided.

4. Balances of sundry debtors, creditors, loans and ad- vances and deposits are subject to confirmation.

5. Segment reporting :

Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17), taking into account the Companys organisational structure as well as the differential risks and returns of these segments.

Segment Revenues, Results, and Assets and Liabili- ties figures include the respective amounts identifi- able to each of the segments. Interest and other finan- cial charges/income are reported at a corporate level. Also those assets and liabilities, which are not identi- fiable to the individual segments are reported at a cor- porate level.

6. Pursuant to the Resolution passed by the Board of Directors at the meeting held on 29th January, 2010, the company has entered into an MOU (subject to approval of share holders) for sale of land situated at Tarapur, District Thane. The Company has received advance of Rs.1,125 lacs from the buyer during the period.

7. The Company is in the process of obtaining a legal opinion on the applicability of the payment of pension to ex- employees whose age was less than 50 years as on 30th November, 1999. The Company has decided to pay the pension amounts to these ex-employees, pending the legal opinion. Accordingly, no liability for the pension payable in future is created in the accounts. Hence, the impact on the Profit and Loss Account cannot be ascertained.

8. a) The Company has discontinued manufacturing of V-

Belts with effect from 1st October, 2008. In view of this, the figures for the year ended 31st March, 2010 are not comparable with the corresponding figures of the previous year.

b) Previous years figures have been re-arranged and re- grouped wherever necessary to confirm to the classification adopted for the current year.