Notes to Accounts of GOCL Corporation Ltd.

Mar 31, 2022

The fair value of value of investment property is Rs 116,680.11 ( March 31,2021 is Rs 260,811.30) based on market assessable data.

The best evidence of fair value is current prices in an active market for similar properties. Though the Company measures investment property using cost based measurement, the fair value of investment property has been determined by external, independent registered valuer as defined under Rule 2 of the Compaines (Registered Valuers and Valution) Rules, 2017 having appropriate recognised professional qualification and recent experience in the location and category of the property valued. The major inputs used are location, locality, facilities, amenities, quality of construction, residual life of building, business potential, supply and demand, local nearby enquiry, market feedback of investigation and Ready Reckoner published by the Government.

The Company does not have any restriction on the realisability of its investment property and no contractual obligation to purchase, construct and develop immovable property. There is no mortgage on the above mentioned investment property. The company continues to have a Joint Development Agreement with Hinduja Estates Private Limited (HEPL) for part of land situated at Kukatpally

All resulting fair value estimates for investment properties are included in level 3.

During the year, the management intended to sell land admeasuring 44.25 acres situated at Kukatpally. The management started the efforts to sell and basis the outcome of this exercise, an agreement to sell was entered with Squarespace Infracity Private Limited dated August 27, 2021 pursuant to approval of Board of Directors at its meeting held on the above mentioned date for a total consideration of Rs. 45,179 and an advance has been received during the current year amounting to Rs. 22,596.26 (Refer note 23). The sale of land is expected to be consummated by next year.

i) In 2012-13, Inter-Corporate Deposit (ICD) of Rs. 3,103.87 (As at March 31,2021: Rs. 3,103.87 ) was given to IDL Explosives Limited ( Wholly owned subsidiary Company). During the year 2017-18, the loan was mutually agreed to be repaid by March 31,2021. Subsequently, during the year 2020-21, the Board of Directors of IDL Explosives Limited had proposed to extend the repayment date till April 1,2024 and the same was approved by the Company vide letter dated August 7, 2020. Interest rate on the above is in the range of 8% - 10.45% per annum (2020-21: 8.25 % -10.45% per annum). The above ICD has been disclosed at fair value. During the year, Company has given an additional Inter Corporate Deposit (ICD) of Rs 4,500 to IDL Explosives Limited (Wholly owned subsidiary Company) for a period of nine months.ICD shall carry an interest rate of 8% PA.

ii) During the year , the Company has given Inter Corporate Deposits of Rs. 1,900 to APDL Estates Limited . The said loan is repayable on demand or nine months period or lessor time which ever is earlier as mutually agreed. ICD shall carry an interest rate of 9% PA.

iii) During the year , the Company has given Inter Corporate Deposits of Rs.15,200 to Hinduja Group Limited. The said loan is repayable on demand or nine months period or lessor time which ever is earlier as mutually agreed. ICD shall carry an interest rate range between 8% to 9% PA.

iv) Refer note 43(a) for disclosure pursuant to Section 186 of the Companies Act, 2013 and under Regulation 34(3)of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

d. Rights, preferences and restrictions attached to equity shares:

The Company has one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. 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 shall be according to the members right and interest in the Company.

General reserve :

General reserve is used from time to time to transfer profits from retained earnings for appropriation purposes.

Retained earnings:

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

Capital reserve:

During amalgamation, the excess of net assets taken, over the cost of consideration paid is treated as capital reserve.

Details of Security:

Cash credit facilities from Consortium banks are secured by hypothecation of all current assets of the Company including raw materials, finished goods, stock-in-process, stores and spares (not relating to plant and equipment) and present and future book debts of the Company ranking pari-passu and collateral security by (i) first pari-passu charge by way of equitable mortgage on the land owned by the Company admeasuring 8 acres situated at Kukatpally, Hyderabad and (ii) second pari-passu charge on buildings, plant and equipment of Energetics Division at Hyderabad charged to other term/working capital lenders.Interest rate for the above is in the range of 7.9% - 10% (2020-21: 7.9% - 10%)

Note 20 Provisions (Contd..)

The provisions for indirect taxes and legal matters comprises of numerous separate cases that arise in the ordinary course of business. These provisions have not been discounted as it is not practicable for company to estimate the timing of provision utilisation and cash outflows, if any pending resolution.

Section 115 BAA of the Income Tax Act, 1961, introduced by the Taxation Laws (Amendment) Act, 2019 gives a one-time irreversible option for payment of income tax at reduced rate with effect from financial year commencing April 01,2019 subject to certain conditions. The Company has made an assessment of the impact of the above amendment and decided to continue with the existing tax structure until utilisation of accumulated minimum alternative tax ("MAT”) and unabsorbed depreciation.

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31,2022 has been made in the financial statements based on information received and available with the Company. Further in view of the Management, the impact of interest , if any , that may be payable in accordance with the provisions of Micro , Small and Medium Enterprises Development Act, 2006 (''MSMED Act’) is not expected to be material. The Company has not received any claim for interest from any supplier under the said MSMED Act.

Fair value hierarchy Level 1

Includes financial instruments measured using quoted prices. This includes listed equity instruments. The fair value of all equity instruments which are traded in stock exchanges is valued using the closing price as at the reporting period and the mutual funds are valued using closing NAV

Level 2

The fair value of financial instruments not actively traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity specific estimates. If the 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.

i) The carrying values of current financial liabilities and current financial assets are taken as their fair value because of their short term nature.

ii) The carrying values of non-current financial liabilities and non-current financial assets are taken as their fair value based on their discounted cash flows.

iii) The Company has used quoted market price for determining fair value of investments in equity instruments and mutual funds.

iv) There have been no transfers between level 1, level 2 and level 3 for the years ended March 31,2022 and March 31,2021

Significant estimate:

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

Note 35 Financial risk management objectives and policies

1. Financial risk management framework

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

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

(iv) Commodity Price Risk

Risk management framework

The Company''s Board of Directors has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and Company''s activities .

The Company''s audit committee oversees how management monitors compliance with the Company''s Risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

(i) Credit Risk

Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The entities within the Company have a policy of dealing only with credit worthy counter parties and obtaining sufficient collateral, where appropriate as a means of mitigating the risk of financial loss from defaults. Financial instruments that are subject to credit risk and concentration thereof principally consist of trade receivables, loans receivables, investments, cash and cash equivalents, derivatives provided by the Company. None of the financial instruments of the Company result in material concentration of credit risk. The carrying value of financial assets represents the maximum credit risk.

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. The Company observes: actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the customer’s ability to meet its obligations.

The Company also establishes an allowance for impairment that represents its estimate of expected credit losses in respect of trade receivables.

Credit risk on cash and bank balances is limited as the company generally transacts with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Impairment of financial assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company’s corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

(iii) Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument . The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that effect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including deposits, foreign currency receivables, payables and borrowings.

(iii) Market risk (Contd..) a) 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 change 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 obligations with floating interest rates. As the Company has debt obligations with floating interest rates, exposure to the risk of changes in market interest rates are substantially dependent of changes in market interest rates.

d) Equity risk

The Company’s quoted equity instruments are susceptible to market price risk arising from uncertainties about future values of the investment securities. The reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The senior management reviews and approves all equity investment decisions

(iv) Commodity Price Risk

The Company is exposed to commodity price risk arising out of fluctuation in prices of raw materials (coating material, metals, acids and chemicals) and fuel (coal and diesel). Such price movements, mostly linked to external factors, can affect the production cost of the Company. To manage this risk, the Company take steps such as monitoring of prices, optimising fuel mix and pursue longer and fixed price contracts, where considered necessary. Additionally, processes and policies related to such risks are controlled by central procurement team and reviewed by the senior management.

2. Capital management

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. In order to maintain the capital structure the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves and debt includes borrowings. Refer note 42 for ratio''s analysis.

Note 36 Employee benefit plans

a. Defined contribution plan:

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident fund and Employees’ State Insurance contribution (ESI) , which are defined contribution plans. The contribution are charged to the Statement of profit and loss . During the year, the Company has recognised Rs 4.16 (March 31,2021: Rs 2.74 ) and Rs 84.13 (March 31,2021: Rs 70.65) towards Employees’ State Insurance contribution (ESI) contribution and Provident fund contribution.

b. Compensated absences

The accrual for unutilised leave is determined for the entire available leave balance standing to the credit of the employees at the year end. The value of such leave balances that are eligible for carry forward, is determined by an actuarial valuation as at the end of the year.The company has recognised expense of Rs 27.07 ( March 31,2021 : Rs 25.12) to the statement of profit and loss.

c. Defined benefit plan

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employee’s last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan. The Company makes contributions to Life Insurance Corporation of India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The above sensitivity analysis is 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 and 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.

Risk Exposure:

These defined benefit plans typically expose the Company to actuarial risks as under:

a. Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

b. Interest rate risk

Decrease in bond interest rate will increase the plan liability. However, this shall be partially off-set by increase in return as per debt investments.

c. Longevity risk

The present value of the defined benefit plan liabilities calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy will increase the plan’s liability.

d. Salary risk

Higher than expected increase in salary will increase the defined benefit obligation.

Note 37 Contingent liabilities and commitments:
Brief decription of the matters		As at March 31, 2022	As at March 31, 2021
A. Contingent liabilities:
Claims against the Company not acknowledged as debts
(a) Income tax demands	Income tax appeals relates to additions of Capital gain, Transfer pricing, disallowance of expenses etc.	5,257.61	1,270.96
(b) Sales tax demands	Sales tax appeals on account of non submission of C, F, H forms and Entry Tax matters for the supply of goods.	257.31	258.81
(c) Excise demands	-	3.67	3.67
(d) Service tax demands	Service tax on corporate guarantee commission income received from Foreign subsidiaries	352.29	352.29
(e) Additional demands towards cost of land		3.81	3.81
(f) Claims of workmen/ex-employees	Claims made by ex-employees under minimum wage	70.00	70.00
(g) Other Matters		7.32	7.32
B. Commitments:
(a) Standby letter of credit [SBLC] (Refer note 1 below)		1,51,585.00	1,09,665.00
(b) Estimated amount of contracts remaining to be executed on capital account (Net of advance Rs.4.71 - (As at March 31,2021: Rs.43.34)		27.62	206.26

Notes:

1) In the month of March 2020, the Company has given corporate guarantee of USD 150 Million and In September 2021 of USD 50 Million to its wholly owned subsidiary HGHL Holdings Limited (HGHL) for obtaining bank loan of equivalent amount from Union Bank of India, Hong Kong and Dubai branch respectively. The loan is secured by shortfall undertaking from Gulf Oil International Limited, Cayman Islands and collaterally secured by mortgage and exclusive charge on the land admeasuring 115.10 acres at Kukatpally, Hyderabad. HGHL has further given Inter corporate loan of USD 200 Million to 57 Whitehall Investments S.A.R.L, Luxembourg,(an operating company) which in-turn has invested in the downstream joint venture project which is engaged in the development of a residential and hospitality project outside India. The loan is repayable over a period of 7 years. HGHL has acquired 10% equity stake in 57 Whitehall Investment S.A.R.L, Luxembourg.

2) In the month of March 2020, the Company had given Corporate Guarantee and collateral security to State Bank of India (SBI) for loan of Rs. 109,600 availed by Hinduja National Power Corporation Limited (HNPCL) towards working capital requirements. The loan is primarily secured by pari-passu charge on the current assets of the HNPCL along with other working capital lenders and collaterally through pari-passu first charge on the fixed assets of HNPCL along with the exiting lenders, mortgage of land admeasuring 87.125 acres at Kukatpally, Hyderabad belonging to the Company. The Company has recieved a counter guarantee for an equal amount from Hinduja Energy (India) Limited (HEIL), the parent entity of HNPCL. The loan has to be repaid by HNPCL to SBI in 8 quarterly installments commencing from June 2023 and ending on March 31,2025.

3) In the year 2012-13, the Competition Commission of India had passed an order imposing a penalty of Rs. 2,894.76 against Company in a case filed by a customer. The Company had filed an appeal in Competition Appellate Tribunal (“COMPAT”) against the said order which was disposed in the year 2013 of by reducing the penalty amount to Rs. 289.48 Subsequently, in the year 2013 the Company had filed an appeal with the Honorable Supreme Court of India (SC) against the said order of COMPAT which was admitted by the SC and interim stay was granted. No hearings have taken place during the year as the pleading are in progress before the Judicial Registrar. Based on merits of the case and the opinion obtained from an independent legal counsel, the Company has a strong case in its favour and adequate provision has been considered necessary.

4) The Company had taken land on lease for 99 years under registered lease deeds on various dates from Sri Udasin Mutt (Mutt) at Kukatpally, Hyderabad after obtaining permission from the then Government of Andhra Pradesh. However, the Mutt filed eviction proceedings before the AP Endowment Tribunal on various untenable grounds and claimed use and occupation charges. Aggrieved by the Tribunal Order, the Company filed a Writ Petition (WP) in 2011 in the Hon’ble High Court of Andhra Pradesh. The Mutt had also filed a separate WP in the AP High Court with regard to the Tribunal’s decision on use and occupation charges. The AP High Court vide Common Order dismissed the WP filed by the Company and allowed the WP filed by the Mutt.

Note 37 Contingent liabilities and commitments: (Contd..)

Both the parties filed Special Leave Petition (SLP) in 2013 before the Hon’ble Supreme Court against the aforesaid Common Order. The Hon’ble Supreme Court directed the parties to maintain status quo in all respects. Subsequently in August 2014, the Hon’ble Supreme Court while granting leave, directed the Company to deposit Rs. 100 per annum provisionally towards use and occupation of the subject land. The Company has been depositing Rs 100 every year for the years 2014 to 2022, totaling to Rs. 800 as at March 31,2022 (Rs. 700 as at March 31,2021).

In October 2020, the Hon’ble Supreme Court by partially modifying its order of 2013 permitted withdrawal of 50% of the deposited amount for provisional usage by the Mutt. Hon’ble Supreme court had further allowed to conduct survey of the lease land fencing and also allowed road widening to be done. The application of the Mutt claiming use and occupation charges is pending before the Telangana Endowment Tribunal . On a prudent basis the Company has created 100% provision under Ind AS 37 against the amount deposited. Refer note 20

5) The Hon''ble Supreme Court vide its order dated November 16, 2007 held that the stock transfers by the Company constituted interstate sale in respect of assessment year viz., 1976-77 to 1983-84, 1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on supplies made by the Company to the subsidiaries of Coal India Limited (CIL) as inter-state sale. The Company filed writ petitions in the Hon''ble High Court of Odisha in August 2009 impleading other State Governments, CIL and its subsidiary companies seeking directions for issues of Form ''C’ and pass over of local sales tax to the State of Odisha and same was dismissed. The Company filed SLP in Hon’ble Supreme Court. The Hon’ble Supreme Court while disposing the SLP as withdrawn granted liberty to approach the authorities. In terms of the liberty granted by The Honorable Supreme Court the Company has approached the authorities for revision and same was dismissed. The Company has filed writ petition in the Odisha High Court and obtained stay. The writ petition is pending.On a prudent basis the Company has created 100% provision under Ind AS 37 (Refer note 20)

6) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its standalone financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statement.

7) The Company has long-term contracts other than derivative contracts, for which there were no material foreseeable losses.

Note 40 Segmental information

In accordance with Ind AS 108 - Operating segments, segment information has been provided in the consolidated financial statements of the Company and therefore no separate disclosure on segment information is given in these standalone financial statements.

In March 2019, the Ministry of Corporate Affairs (MCA) issued the Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, 2019, notifying Ind AS 116 ''Leases'' and amendments to certain Ind AS. The Standard/amendments are applicable to the Company with effect from April 1, 2019.

On transition, the Company recognised a lease liability measured at the present value of the remaining lease payments. The right-of-use asset is recognised at its carrying amount as if the standard had been applied since the commencement of the lease, but discounted using incremental borrowing rate as at April 1, 2019. Accordingly, a right-of-use asset of Rs. 89.18 and a corresponding lease liability of Rs. 89.18 was recognized. The cumulative effect on transition in retained earnings net off taxes is Rs. Nil (including a deferred tax of Nil). The principal portion of the lease payments have been disclosed under cash flow from financing activities. The weighted average incremental borrowing rate of 10% has been applied to lease liabilities recognised in the balance sheet at the date of initial application.

On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-to-use asset and finance cost for interest accrued on lease liability.

Further, the Company incurred Rs.7.47 towards expenses relating to short-term leases and leases of low-value assets for the year ended March 31, 2022. (March 31,2021 - Rs. 1.77 ).

Lease contracts entered by the Company majorly pertains to land taken on lease to conduct its business in the ordinary course. The Company does not have any lease restrictions and commitment towards variable rent as per the lease contracts. The total cash outflow for leases is Rs. 34.53 for the year ended March 31,2022.

The MCA wide notification dated March 24, 2021 has amended Schedule III to the Companies Act, 2013 in respect of certain disclosures. Amendments are applicable from April 1,2021. The Company has incorporated the changes as per the said amendment in the financial statements and has also changed comparative numbers wherever applicable.

Previous period figures have been re-grouped / re-classified to conform to below requirements of the amended Schedule III to the Companies Act, 2013 effective 1st April 2021:

(a) Current maturities of long term borrowings regrouped under "Current borrowings” (Note 19a) which were earlier part of Other current

financial liabilities” (Note 18)

Other Statutory Information:

i. The Company do not have any Benami property and neither any proceedings have been initiated or is pending against the Company for holding any Benami property.

ii. The Company do not have any transactions with companies struck off.

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

iv. The Company has not been declared a wilful defaulter by any bank or financial institution or any other lender during the current period.

v. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi. All quarterly returns or statements of current assets are filed by the company with banks or financial institutions and are in agreement with the books of accounts.

vii. The loan has been utilized for the purpose for which it was obtained and no short term funds have been used for long term purpose.

Note 45 Other Notes

i) Acquisition of APDL Estates Limited:

During the previous year, the Company had entered into Share Purchase Agreement dated December 21, 2020 with Hinduja Realty Ventures Limited for purchase of entire shareholding of APDL Estates Limited. As per the terms of the said Agreement, the consideration payable for purchase of shares is Rs. 6,200, less loans and current liabilities appearing in audited accounts of the APDL Estates Limited as at March 31, 2021.During the yearended March 31, 2022 the company has acquired 100% shareholding in APDL Estates Limited (''APDLE’) for a purchase consideration of Rs.4,319.40 and this investment is recorded at cost (Refer consolidated financial statements for disclosure as per Ind AS 103 Business-Combination).

ii) Impact of COVID-19:

The Company has considered internal and external sources of information up to the date of approval of the standalone financial statements in evaluating the possible impact that may result from the pandemic relating to COVID-19 on the carrying amounts of property, plant and equipment, intangible assets, inventories, receivables, investments and other financial assets. The Company has applied prudence in arriving at the estimates and assumptions and also performed sensitivity analysis on the assumptions used. The Company is confident about the recoverability of these assets. However, the impact of the global health pandemic may be different from that estimated as at the date of approval of the standalone financial statements. Considering the continuing uncertainties, the Company will continue to closely monitor any material changes to future economic conditions. The management will be able to meet the liabilities of the Company as and when they fall due.

iii) Pursuant to the approval of the shareholders of the Company at the 60th Annual General Meeting held on September 27, 2021, the Company had declared and disbursed final dividend for the Financial year 2020-21 @ Rs.2 per equity share (i.e., 100% of the face value of Rs.2 each) aggregating to Rs. 991.45. As approved by the Board of Directors at their meeting held on August 12, 2021, the Company had declared and disbursed interim dividend for the Financial year 2021-22 @ Rs.2 per equity share (i.e., 100 % of the face value of Rs. 2 each) aggregating to Rs. 991.45 . Further, at the meeting held on May 27, 2022 the Board of Directors have recommended a final dividend of Rs. 3 per equity share (i.e., 150% of the face value of Rs. 2 each) for the Financial year 2021-22 aggregating to Rs.1,487.18. Post this recommendation, the total dividend declared for the Financial year 2021-22 stands at Rs. 5 per equity share aggregating to Rs.2,478.63 (i.e.,250% of the face value of Rs.2 each). Final dividend is subject to approval of the members at Annual General Meeting.

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Mar 31, 2018

Notes:

1) The Company has given Corporate Guarantees aggregating Rs, 4,440.00 (March 31, 2017 Rs, 11,440.00) to the banks on behalf of its wholly-owned subsidiary IDL Explosives Limited for the purpose of working capital requirements. The amount of loan outstanding as on March 31, 2018 is Rs, 3218.55 (March 31, 2017- Rs, 3895.14)

2) During the year ended March 31, 2013, the Company through its the then step down subsidiary GHGL London Limited, UK (immediate subsidiary being HGHL Holdings Limited) (HGHL), acquired Houghton International Inc. in USA. HGHL obtained a loan of USD 300 million from Lenders to part finance the acquisition. During the year 2013-14, USD 120 million was repaid by HGHL to the Lenders. The amount of loan outstanding as on March 31, 2018 is Rs, 57484.35 (March 31, 2017 Rs, 82100.10). The said loan was extended on the basis of Letter of Comfort/Stand-By Letter of Credit Facility Agreement between the Company, HGHL (both being Co-Obligors to the said Facility) and lenders on the strength of guarantee of Gulf Oil International Limited, Cayman and Cash Deficit Undertaking from its specified subsidiaries and also from the Company, wherein they are obligated to make contributions to HGHL in case of deficiencies in resources for servicing the said facilities. Gulf Oil International Limited, Cayman provided a Guarantee to the Company for due serving and repayment of entire balance outstanding loan, as per repayment schedule of the Lender. Gulf Oil Lubricants India Limited also provided the similar Cash Deficit Undertaking in favour of the SBLC lenders.

In terms of the aforesaid agreement the loan is also secured by: (i) first pari-passu charge by way of equitable mortgage on land of the Company admeasuring 64.125 acres at Kukatpally, Hyderabad and (ii) first pari-passu charge along with existing lenders by way of equitable mortgage on land admeasuring 115.10 acres at Hyderabad and buildings, and plant & machinery belonging to Energetics Division. GHGL London Limited and its step down subsidiaries including Houghton International Inc. ceased to be subsidiaries of the Company, consequent to infusion of fresh equity to the extent of 90% by Gulf Oil International Limited in GHGL London Limited during the year 2013-14.

3) The Competition Commission of India passed an order in a case filed by a customer imposing a penalty of '' 2,894.76 during the year 2012-13. Against the said order, the Company filed an appeal in Competition Appellate Tribunal (“COMPAT”). The appeal was disposed of by reducing the penalty amount to Rs, 289.48. The Company filed an appeal in the Supreme Court and the appeal was admitted. The case was not heard by the Honorable Supreme Court during the year as the pleading are in progress before the Judicial Registrar and the same is pending to continue till the next date of hearing

4) The Company had registered lease deeds of land on various dates with Sri Udasin Mutt (Mutt) for certain parcels of land at Kukatpally, Hyderabad for 99 years after obtaining permission from the then Government of Andhra Pradesh. However, the Mutt filed eviction proceedings before the AP Endowment Tribunal on various untenable grounds and claimed use and occupation charges.

Aggrieved by the Tribunal Order, the Company filed a Writ Petition (WP) in 2011 in the Hon’ble High Court of Andhra Pradesh. The Mutt had also filed a separate WP in the AP High Court with regard to the Tribunal’s decision on use and occupation charges. The AP High Court vide Common Order dismissed the WP filed by the Company and allowed the WP filed by the Mutt.

Both the parties filed Special Leave Petition (SLP) in 2013 before the Hon’ble Supreme Court against the aforesaid Common Order. The Hon’ble Supreme Court directed the parties to maintain status quo in all respects. Subsequently in August 2014, the Hon’ble Supreme Court while granting leave, directed the Company to deposit Rs, 100.00 per annum provisionally towards use and occupation of the subject land. The Company has been depositing Rs 100.00 every year for the years 2014 to 2017, totaling to Rs 400.00 as at March 31, 2018 (Rs 300.00 as at March 31, 2017). The Appeals have not been listed for hearing.

Note 38 First time adoption of Ind AS

These standalone financial statements have been prepared in accordance with the Ind AS. For the purpose of transition from previous GAAP to Ind AS, the Company has followed the guidance prescribed under Ind AS 101 - First time adoption of Indian Accounting Standards (“Ind AS 101”), with effect from April 1, 2016 (“transition date”).

In preparing its Ind AS balance sheet as at April 1, 2016 and in presenting the comparative information for the year ended March 31, 2017, the Group has adjusted amounts reported previously in financial statements prepared in accordance with previous GAAP. This note explains how the transition from previous GAAP to Ind AS has affected the Company’s balance sheet and financial performance.

In preparing these standalone financials statements, the Company has applied the below mentioned optional exemptions and mandatory exemptions

Optional exemptions availed

Deemed cost of Investment in subsidiaries

As per Ind AS 101, the entity may elect to use the fair value of investment in subsidiaries at the date of transition as the deemed cost. Accordingly, the Company has recognised the fair value of a subsidiary as the deemed cost at the date of transition.

Deemed cost for property plant and equipment:

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of intangible assets also. There is no decommissioning liabilities to be incurred by the Company with respect to property plant and equipment.

Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements based for embedded leases based on conditions in place as at the date of transition.

Mandatory exemptions availed

Estimates

As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error.The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

- Fair valuation of financial instruments carried at FVTPL and/ or FVOCI.

- Impairment of financial assets based on the expected credit loss model.

- Determination of the discounted value for financial instruments carried at amortised cost.

Classification and measurement of financial assets/ liabilities

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

The Company has applied the exception related to impairment of financial assets given in Ind AS 101. It has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial assets were initially recognised and compared that to the credit risk as at April 1, 2016.

Notes to reconciliations

1. Financial guarantee income

Under previous GAAP, financial guarantees given by the Company for borrowings taken by its subsidiaries were disclosed as contingent liabilities. Guarantee commission received from subsidiaries are credited to statement of P&L as other gains/(losses). Financial guarantee contracts have been recognised at fair value at the inception in accordance with Ind AS 109.

2. Deferred tax adjustments

Under Previous GAAP, deferred tax recognized on the timing differences between the taxable income and the accounting income. Under Ind AS, deferred tax is recognized on the temporary differences arising between the book value of assets/ liabilities and their corresponding tax base. Accordingly, the deferred tax is recognized on the temporary differences on the Indexation benefit available on land and other Ind AS adjustments made on transition to Ind AS. The application of Ind AS 12 has resulted in recongnation of deferred tax on new temporary differences which were not required under previous GAAP.

3. Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2017.

4. Investment property

Previously the land held as Investment property were clasified preperty plant and equipment.

5. Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments

6. Excise duty on sales

Under Previous GAAP, excise duty on sales are netted off against the revenue from operations, where as under Ind AS, the Excise duty on sales are classified as expenses for the period. This does not have any impact on the net profit for the year ended March 31, 2017

7. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

8. Provision for proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under I nd AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend included under provisions has been reversed with corresponding adjustment to retained earnings.

9. Expected credit loss

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts

10. Revenue and inventory

Difference on account of revenue recognition, net of related costs is primarily due to difference in timing of revenue recognition under Ind AS as compared to previous GAAP and deferral of licensing income on account of continuing obligations.

11. Revaluation reserve on land

Under Ind AS, the investment property has to be carried at cost. Hence the revaluation reserve on land is reversed with the corresponding impact in Investment property.

Note 39 Related Party Disclosure

(i) Information relating to Related Party Transactions as per “Indian Accounting Standard (Ind AS 24-Related party disclosures)

a. Ultimate Holding Company

AMAS Holding SPF

b. Holding Company:

Hinduja Power Limited

c. Subsidiaries:

1. IDL Explosives Limited

2. HGHL Holdings Limited

3. IDL Buildware Limited

4. Gulf Carosserie India Limited

d. Key Management Personnel:

Mr. S Pramanik, Managing Director

Mr. Ajay P. Hinduja, Chairman & Non-Executive Director

Mr. Ramkrishan P Hinduja, Vice Chairman & Non-Executive Director

Mr. K. N. Venkatasubramanian, Independent Director

Mrs. Kanchan Chitale, Independent Director

Mr. MS Ramachandran, Independent Director

Mr. Ashok Kini, Independent Director

Mr. Ravi Jain, Chief Financial Officer

Mr. A. Satyanarayana, Company Secretary

Notes:

i) The above disclosures including related parties as per Ind AS 24 “ Related Party disclosures and Companies Act’ 2013

ii) The remuneration to key management personnel doesn’t include the provisions made for gratuity and compensated absences, as they are obtained on an actuarial basis for the Company as a whole

iii) All transactions with these related parties are priced on an arm’s length basis and none of the balances are secured. Note 40 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a Corporate Social responsibility (CSR) Committee has been formed by the Company. The proposed areas for CSR activities, as per the CSR policy of the Company are promotion of education, rural development activities, medical facilities, employment and ensuring environmental sustainability which are specified in Schedule VII of the Companies Act, 2013. Expenditure incurred under Section 135 of the Companies Act, 2013 on CSR activities are as below:

Gross amount required to be spent by the Company during the year ended March 31, 2018 is Rs, 38.02 (March 31, 2017 Rs, 23.00)

Note 42 Segmental information

In accordance with Ind AS 108 - Operating segments, segment information has been provided in the consolidated financial statements of the Company and therefore no separate disclosure on segment information is given in these standalone financial statements.

Note 43 Other Notes

(i) The Company has adopted the cost model as its accounting policy in accordance with the Accounting Standard 10

- Property, Plant and Equipment (Revised). In accordance with the transition provisions prescribed in the accounting standard, the Company has adjusted the amount of Rs, 67,326.58 outstanding as at March 31, 2016 in the Revaluation Reserve against the carrying amount of the land.

(ii) The Honourable Supreme Court vide its order dated 16th November 2007 held that the stock transfers constituted interstate sale in respect of assessment year viz., 1976-77 to 1983-84, 1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on supplies made by the Company to the subsidiaries of Coal India Limited (CIL) as inter-state sale. The Company filed writ petitions in the Honourable High Court of Odisha in August 2009 impleading other State Governments, CIL and its subsidiary companies seeking directions for issues of Form ‘C’ and pass over of local sales tax to the State of Odisha. In terms of the liberty granted by The Honourable Supreme Court the Company has filed writ petition in the Odisha High Court and obtained stay. The writ petition is pending.

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Mar 31, 2017

b. Terms / Rights attached to Equity Shares:

The Company has one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. 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 shall be according to the members right and interest in the Company.

Security and Terms of Repayment:

Term loan for acquiring vehicle is repayable in 48 equated monthly installments from the date of availing the loan. Rate of interest is 10.01% per annum (31st March 2016: 10.01% per annum) and 20 installments (31st March 2016: 32 installments) are payable as at the Balance Sheet date.

Details of Security :

Cash Credit facilities from Consortium banks are secured by hypothecation of all current assets of the Company including raw materials, finished goods, stock-in-process, stores and spares (not relating to plant & machinery) and present and future book debts of the Company ranking pari-passu and collateral security by (i) first pari-passu charge by way of equitable mortgage on the land owned by the Company admeasuring 115.10 acres situated at Kukatpally, Hyderabad and (ii) second pari-passu charge on buildings, plant and machinery of Energetics Division at Hyderabad charged to other term/working capital lenders.

Preference Shares were allotted to the Company in terms of Scheme of Arrangement and were due for redemption on 25th May 2011 or 45 days from the date of infusion of fresh capital in IDL Explosives Limited (IDLEL). In the earlier years, the date of redemption was mutually agreed to be deferred to 25th May 2012, 25th May 2014 and to 25th May 2017 or 45 days of infusion of fresh capital, whichever is earlier.

During the year the redemption date to the said preference shares has been mutually agreed to be deferred to 22nd May 2020 or 45 days of infusion on fresh capital in IDLEL, whichever is earlier.

1. Realty

i. Land meant for property development situated at Bengaluru and Hyderabad was revalued as at 31st March 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs.183,896.69 Lakhs was credited to Revaluation Reserve in the earlier years. In view of steep recession in the Realty Sector, management reassessed the valuation of the aforesaid properties as on 31st March 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka and Andhra Pradesh, the value of the subject lands was reassessed and the resultant surplus on revaluation amounted to Rs.43,799.82 Lakhs. The resultant write down aggregating to Rs.140,096.87 Lakhs, in accordance with the requirement of the then Accounting Standard-10 “Accounting for Fixed Assets” was debited to Revaluation Reserve.

ii. In the financial year 2011-12, the Company surrendered certain portion of the land for road laying and widening purposes to Greater Hyderabad Municipal Corporation. Consequently, Rs.3,285.67 Lakhs was withdrawn from Revaluation Reserve.

iii. As at 31st March 2012, land meant for property development situated at Hyderabad, had been revalued based on valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs.63,027.56 Lakhs was credited to Revaluation Reserve.

iv. In the financial year 2010-11, land at Bengaluru (cost of Rs.3,610.66 Lakhs) meant for property development transferred to Inventory as approvals necessary for development of land were obtained. In terms of the Joint Development Agreement between the Company and Hinduja Realty Venture Limited (HRVL), the Company granted development rights to develop the property. In consideration HRVL, at its own cost and expenses develop the said property. Further the built up area, amenities and facilities so constructed shall be shared by Company and HRVL in the ratio of 30:70 respectively according to the other terms and conditions mentioned in the agreement. The Company created equitable mortgage by way of deposit of title deeds in respect of the aforesaid Land towards loan of Rs.85,000 Lakhs availed by Co-Developer HRVL from various lenders.

2. The Company has adopted the cost model as its accounting policy in accordance with the Accounting Standard 10 - Property, Plant and Equipment (Revised). In accordance with the transition provisions prescribed in the accounting standard, the Company has adjusted the amount of Rs.67,326.58 Lakhs outstanding as at 31st March 2016 in the Revaluation Reserve against the carrying amount of the land.

3) (a) The Company has given Corporate Guarantees aggregating Rs.11,440.00 Lakhs (31st March 2016 Rs.11,440.00 Lakhs) to the banks on behalf of its wholly-owned subsidiary, IDL Explosives Limited for the purpose of working capital requirements. The amount of loan outstanding as on 31st March 2017 is Rs.3,895.14 Lakhs (31st March 2016 - Rs.5,391.59 Lakhs).

(b) The Company had offered second pari passu charge on the land owned by the Company admeasuring 115.10 acres situated at Kukatpally, Hyderabad and also provided corporate guarantee for the banks on behalf of Gulf Oil Lubricants India Limited (GOLIL), for the total working capital facilities of Rs.34,500 Lakhs .The loan has been repaid in full by GOLIL and corporate guarantee given by the Company has been released in the current year. The loan amount of Rs.17,936.87 lakhs was outstanding as at 31st March 2016.

4) During the year ended 31st March 2013, the Company through its the then stepdown subsidiary, GHGL London Limited, UK (immediate subsidiary being HGHL Holdings Limited) (HGHL), acquired Houghton International Inc. in USA. HGHL obtained a loan of USD 300 million from Lenders to part finance the acquisition. During the year 2013-14, USD 120 million was repaid by HGHL to the Lenders. The amount of loan outstanding as on 31st March 2017 is Rs.82,100.10 Lakhs (31st March 2016 is Rs.101,370.15 Lakhs). The said loan was extended on the basis of Letter of Comfort/StandBy Letter of Credit Facility Agreement between the Company, HGHL (both being Co-Obligors to the said Facility) and lenders on the strength of guarantee of Gulf Oil International Limited, Cayman and Cash Deficit Undertaking from its specified subsidiaries and also from the Company, wherein they are obligated to make contributions to HGHL in case of deficiencies in resources for servicing the said facilities. Gulf Oil International Limited, Cayman provided a Guarantee to the Company for due serving and repayment of entire balance outstanding loan, as per repayment schedule of the Lender. Gulf Oil Lubricants India Limited also provided the similar Cash Deficit Undertaking in favour of the SBLC lenders.

In terms of the aforesaid agreement the loan is also secured by: (i) first pari-passu charge by way of equitable mortgage on the land of the Company admeasuring 64.125 acres at Kukatpally, Hyderabad and (ii) first pari-passu charge along with existing lenders by way of equitable mortgage on land admeasuring 115.10 acres at Hyderabad and buildings, and plant & machinery belonging to Energetics Division. GHGL London Limited and its stepdown subsidiaries including Houghton International Inc. ceased to be subsidiaries of the Company, consequent to infusion of fresh equity to the extent of 90% by Gulf Oil International Limited in GHGL London Limited during the year 2013-14.

5) The Competition Commission of India passed an order in a case filed by a customer imposing a penalty of Rs.2,894.76 Lakhs during the year 2012-13. Against the said order, the Company filed an appeal in Competition Appellate Tribunal (“COMPAT”). The appeal was disposed off by reducing the penalty amount to Rs.289.48 Lakhs. The Company filed an appeal in the Supreme Court and the appeal was admitted. The interim stay on deposit of penalty amount of Rs.289.48 Lakhs to continue till the next date of hearing. The case was not heard by the Honourable Supreme Court during the year as the pleading are in progress before the Judicial Registrar and the same is pending to continue till the next date of hearing.

6) The Company had registered lease deeds of land on various dates with Sri Udasin Mutt (Mutt) for certain parcels of land at Kukatpally, Hyderabad for 99 years after obtaining permission from the then Government of Andhra Pradesh. However, the Mutt filed eviction proceedings before the AP Endowment Tribunal on various untenable grounds and claimed use and occupation charges.

Aggrieved by the Tribunal Order, the Company filed a Writ Petition (WP) in 2011 in the Hon''ble High Court of Andhra Pradesh. The Mutt had also filed a separate WP in the AP High Court with regard to the Tribunal''s decision on use and occupation charges. The AP High Court vide Common Order dismissed the WP filed by the Company and allowed the WP filed by the Mutt.

Both the parties filed Special Leave Petition (SLP) in 2013 before the Hon''ble Supreme Court against the aforesaid Common Order. The Hon''ble Supreme Court directed the parties to maintain status quo in all respects. Subsequently in August 2014, the Hon''ble Supreme Court while granting leave, directed the Company to deposit Rs.100.00 Lakhs per annum provisionally towards use and occupation of the subject land. The Company has been depositing Rs.100.00 Lakhs every year for the years 2014 to 2016, totalling to Rs.300.00 Lakhs as at March 31, 2017 (Rs. 200.00 Lakhs as at March 31, 2016). The Appeals have not been listed for hearing.

7. Property, Plant and Equipment: Buildings include:

(i) Rs.7.09 Lakhs, which represents the cost of ownership of the flats Rs.7.08 Lakhs and Rs.0.01 Lakhs being the value of share money in Sett Minar Co-operative Housing Society Limited.

(ii) Rs.4.70 Lakhs, which represents the cost of ownership of five flats Rs.4.43 Lakhs and Rs.0.27 Lakhs being the value of 270 ordinary shares of Rs.100 each, fully paid up in Shree Nirmal Commercial Limited.

8. The Honourable Supreme Court vide its order dated 16th November 2007 held that the stock transfers constituted inter-state sale in respect of assessment years viz., 1976-77 to 1983-84, 1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on supplies made by the Company to the subsidiaries of Coal India Limited (CIL) as interstate sale. The Company filed writ petitions in the Honourable High Court of Odisha in August 2009 impleading other State Governments, CIL and its subsidiary companies seeking directions for issues of Form ‘C'' and pass over of local sales tax to the State of Odisha. In terms of the liberty granted by The Honourable Supreme Court the Company has filed writ petition in the Odisha High Court and obtained stay. The writ petition is pending.

9. There are no Micro and Small Enterprises, to whom the Company owes due, which are outstanding as at 31st March, 2017. This information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined on the basis information available with the Company.

10. Employee Benefits

(i) Disclosure in respect of Gratuity as required under Accounting Standard 15 - Employee Benefits:

(iv) The Company makes Provident Fund, Superannuation Fund and Employee''s State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.81.31 Lakhs (Previous Year - Rs.93.62 Lakhs) for Provident Fund contributions, Rs.44.61 Lakhs (Previous Year - Rs.43.28 Lakhs) for Superannuation Fund contributions and Rs.3.18 Lakhs (Previous Year - Rs.2.71 Lakhs) for Employee''s State Insurance Scheme contributions in the Statement of Profit and Loss (Refer Note 22). The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

11. Related Party Disclosure:

(i) Information relating to Related Party Transactions as per “Accounting Standard 18-Related Party Transactions”:

a. Ultimate Holding Company:

Amas Holding S.A.

b. Holding Company:

Hinduja Power Limited

c. Subsidiaries:

1. IDL Explosives Limited

2. HGHL Holdings Limited

3. IDL Buildware Limited

4. Gulf Carosserie India Limited

d. Key Management Personnel:

Mr. S. Pramanik - Managing Director

(a) Business Segment:

The Company has considered business segment as the primary segment for disclosure.

Segments are identified and reported taking into account the Organization structure, the nature of products and services, the deferring risks and the returns of the segments.

The business segments of the Company are (i) Energetics, (ii) Mining and Infrastructure Contracts, (iii) Realty and (iv) Others.

(b) Geographical Segment:

The Geographical segments considered for disclosure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India, and

- Revenue outside India includes sales to customers located outside India and earnings outside India.

12. Leases

(i) Operating Lease: Where the Company is a Lessee:

a) The Company''s significant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.).The Leasing arrangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms.

The aggregate lease rents payable are charged as rent in the Statement of Profit and Loss .

The assets given on lease are not non-cancellable and range generally between 11 months to 5 years and are usually renewable by mutual consent, on agreeable terms.

The aggregate lease rentals are recognized as income from property in the Statement of Profit and Loss. Initial direct costs are recognized as an expense in the year in which these are incurred.

13 The Board of Directors at its meeting held on 29^th May 2017 have recommended an equity dividend of 80% (Rs. 1.60 per equity share having face value of Rs.2 each) aggregating Rs.793.16 Lakhs and tax thereon Rs.34.46 Lakhs, which is subject to approval of shareholders in the forthcoming Annual General Meeting. In terms of AS 4 - Contingencies and Events Occurring After the Balance Sheet Date (Revised), such dividends and tax thereon have not been recognized as liabilities in the financial statement.

14. Previous year''s figures have been regrouped / reclassified, wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2016

Notes:

1 In the previous year, 40,000 8% Redeemable Cumulative Preference Shares of Rs. 100 each fully paid-up were redeemed.

2 The Preference shares were allotted to Company in terms of Scheme of Arrangement and were due for redemption on 25th May 2011 or 45 days from the date of infusion of fresh capital in IDL Explosives Limited. In the previous years, the date of redemption was extended up to 25th May 2012 or 45 days of infusion of fresh capital, which was further extended in the previous year to 25th May 2014 or 45 days from the date of infusion of fresh capital.

In 2013-14, the date of redemption had been mutually agreed to be deferred upto 24th May 2017 or 45 days from the date of infusion of fresh capital in the Company. In the previous year 60,000 10% Series- A Redeemable Cumulative Preference Shares of Rs.100 fully paid up were redeemed along with premium of Rs. 900 per share.

3. In the previous year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1st April 2014, the Company has revised the estimated useful life of its assets to align the useful life with those specified in Schedule II.

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company had fully depreciated the carrying value of assets, net of residual value, where the remaining useful life was determined to be Nil as on 1st April 2014 and had adjusted Rs. 146.99 Lakhs (Net of deferred tax of Rs. 75.69 Lakhs) against the opening surplus balance in the Statement of Profit and Loss under Reserves and Surplus.

4. Realty

i. Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 183,896.69 Lakhs had been credited to Revaluation Reserve in the earlier years. In view of steep recession in the Realty Sector, management reassessed the valuation of the aforesaid properties as on 31st March 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka and Andhra Pradesh, the value of the subject lands had been reassessed and the resultant surplus on revaluation amounted to Rs. 43,799.82 Lakhs. The resultant write down aggregating to Rs. 140,096.87 Lakhs, in accordance with the requirement of Accounting Standard-10 “Accounting for Fixed Assets” had been debited to Revaluation Reserve.

ii. In the financial year 2011-12, the Company surrendered certain portion of the land for road laying and widening purposes to Greater Hyderabad Municipal Corporation. Consequently Rs. 3,285.67 Lakhs had been withdrawn from Revaluation Reserve.

iii. As at 31st March 2012, land meant for property development situated at Hyderabad, had been revalued based on valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 63,027.56 Lakhs had been credited to Revaluation Reserve.

iv. In the financial year 2010-11, land at Bengaluru (cost of Rs. 3,610.66 Lakhs) meant for Property Development transferred to Inventory as approvals necessary for development of land were obtained. In terms of the Joint Development Agreement between the Company and Hinduja Realty Venture Limited (HRVL), the Company granted development rights to develop the property. In consideration HRVL, at its own cost and expenses develop the said property. Further the built up area, amenities and facilities so constructed shall be shared by Company and HRVL in the ratio of 30:70 respectively according to the other terms and conditions mentioned in the agreement. The Company created equitable mortgage by way of deposit of title deeds in respect of the aforesaid Land towards loan of Rs. 85,000 Lakhs availed by Co-Developer HRVL from various lenders.

5. Discontinuing Operations of Lubricants Undertaking

The Board of Directors of the Company in its meeting held on 7th August 2013 approved the Scheme of Arrangement (“the Scheme”) between the Company and Gulf Oil Lubricants India Limited (GOLIL), for demerger of its “Lubricants Undertaking”. The Scheme was sanctioned by the Hon''ble High Court Judicature of Andhra Pradesh vide Order dated 16th April 2014, which was thereafter filed with Registrar of Companies.

Pursuant to the Scheme, the assets and liabilities relating to the Lubricants Undertaking were transferred to and vested in GOLIL with effect from 1st April 2014. In terms of the Scheme, the difference between the value of assets and value of liabilities amounting to Rs. 14,362.65 Lakhs has been appropriated first against the paid-up value of the Share Capital cancelled (Rs. 991.45 Lakhs) pursuant to the Scheme and the balance has been appropriated against Securities Premium Account (Rs. 12,139.52 Lakhs) and then the remaining difference appropriated to General Reserve (Rs. 1,231.68 Lakhs) of the Company.

In consideration for the above and in terms of the Scheme, one fully-paid up equity share of face value of Rs. 2 each of GOLIL was allotted to the shareholders of the Company, in lieu of every two equity shares of face value of Rs. 2 each held in the Company, prior to giving effect to reduction of Share Capital (i.e., from Rs. 1,982.90 Lakhs to Rs. 991.45 Lakhs). The paid-up Share Capital of the Company, consequent to the implementation of the Scheme, comprises of 49,572,490 equity shares of Rs. 2 each. Further, as a consequence of the reduction of capital of the Company, the authorised share capital was re-organised to comprise of 75,427,510 equity shares of Rs. 2 each.

Notes:

1) (a) The Company has given Corporate Guarantees aggregating Rs. 11,440.00 Lakhs (31st March 2015 - Rs. 12,913.00

Lakhs) to the banks on behalf of its wholly-owned subsidiary IDL Explosives Limited for the purpose of working capital requirements. The amount of loan outstanding as on 31st March 2016 is Rs. 5,391.58 Lakhs (31st March 2015 - Rs. 5,818.95 Lakhs)

(b) The Company has given Corporate Guarantee for sums not exceeding Rs. 34,500.00 Lakhs to the banks on behalf of its fellow subsidiary Gulf Oil Lubricants India Limited for the purpose of working capital requirements. The amount of loan outstanding as on 31st March 2016 is Rs. 17,936.87 lakhs (31st March 2015 - Rs. 21,562.75 Lakhs)

2) (a) During the year ended 31st March 2013, the Company through its then stepdown subsidiary GHGL London Limited,

UK (immediate subsidiary being HGHL Holdings Limited) (HGHL), had acquired Houghton International Inc. in USA. HGHL had taken a loan of USD 300 million from Lenders to part finance the acquisition. During the year 2013-14, USD 120 million was repaid by HGHL to the Lenders. The amount of loan outstanding as on 31st March 2016 is Rs. 101,370.15 Lakhs (31st March 2015 is Rs. 110,625 Lakhs). The said loan was extended on the basis of Letter of Comfort/Stand-By Letter of Credit Facility Agreement between the Company, HGHL (both being Co-Obligors to the said Facility) and lenders on the strength of guarantee of Gulf Oil International Limited, Cayman and Cash Deficit Undertaking from its specified subsidiaries and also from the Company, wherein they are obligated to make contributions to HGHL in case of deficiencies in resources for servicing the said facilities. Gulf Oil International Limited, Cayman had provided a Guarantee to the Company for due serving and repayment of entire balance outstanding loan, as per repayment schedule of the Lender. Gulf Oil Lubricants India Limited has also provided the similar Cash Deficit Undertaking in favour of the SBLC lenders.

In terms of the aforesaid agreement the loan is also secured by: (i) first pari-passu charge by way of equitable mortgage on land of the Company admeasuring 64.125 acres at Kukatpally, Hyderabad and (ii) first pari-passu charge along with existing lenders by way of equitable mortgage on land admeasuring 115.10 acres at Hyderabad and buildings, and plant & machinery belonging to Energetics Division. GHGL London Limited and its step down subsidiaries including Houghton International Inc. ceased to be subsidiaries of the company, consequent to infusion of fresh equity to the extent of 90% by Gulf Oil International Limited in GHGL London Limited during the year 2013-14.

(b) Consequent to demerger of Lubricants Undertaking in the previous year, the working capital limits of the Company reduced. As stipulated by the working capital lenders, the Company has offered second pari passu charge on the land owned by the Company admeasuring 115.10 acres situated at Kukatpally, Hyderabad and also secured by corporate guarantee, for the total working capital facilities of Rs. 34,500 Lakhs to Gulf Oil Lubricants India Limited.

3) The Competition Commission of India had passed an order in a case filed by a customer imposing a penalty of Rs. 2,894.76 Lakhs during the year 2012-13. Against the said order, the Company filed an appeal in Competition Appellate Tribunal (“COMPAT”). The appeal was disposed of by reducing the penalty amount to Rs. 289.00 Lakhs. The Company filed an appeal in the Supreme Court and the appeal had been admitted. The interim stay on deposit of penalty amount of Rs. 289.00 Lakhs to continue till the next date of hearing. The case was not heard by the Honourable Supreme Court during the year as the pleadings are in progress before the Judicial Registrar and the same is pending.

4) The Company had registered lease deeds of land on various dates with Sri Udasin Mutt (Mutt) for certain parcels of land at Kukatpally, Hyderabad for 99 years after obtaining permission from the then Government of Andhra Pradesh. However, the Mutt filed eviction proceedings before the AP Endowment Tribunal on various untenable grounds and claimed use and occupation charges.

Aggrieved by the Tribunal order, the Company filed a Writ Petition (WP) in 2011 in the Hon''ble High Court of Andhra Pradesh. The Mutt had also filed a separate WP in the AP High Court with regard to the Tribunal''s decision on use and occupation charges. The AP High Court vide common order dismissed the WP filed by the Company and allowed the WP filed by the Mutt.

Both the parties filed Special Leave Petition (SLP) in 2013 before the Hon''ble Supreme Court against the aforesaid common order. The Hon''ble Supreme Court directed the parties to maintain status quo in all respects. Subsequently in August 2014, the Hon''ble Supreme Court while granting leave, directed the Company to deposit Rs. 100.00 Lakhs per annum for the year 2014 provisionally towards use and occupation of the subject land, which the Company had deposited with the Supreme Court Registry. Further amount of Rs. 100.00 Lakhs has been deposited for 2015 during the year. Pending disposal of petition at Supreme Court, the Company and the Mutt are in discussions for out of Court settlement.

6. Fixed Assets: Buildings include:

(i) Rs. 7.09 Lakhs, which represents the cost of ownership of the flats Rs. 7.08 Lakhs and Rs. 0.01 Lakhs being the value of share money in Sett Minar Co-operative Housing Society Limited.

(ii) Rs. 4.70 Lakhs, which represents the cost of ownership of five flats Rs. 4.43 Lakhs and Rs. 0.27 Lakhs being the value of 270 ordinary shares of Rs.100 each, fully paid up in Shree Nirmal Commercial Limited.

7. The Honorable Supreme Court vide its order dated 16th November 2007 held that the stock transfers constituted inter-state sale in respect of assessment year viz., 1976-77 to 1983-84, 1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on supplies made by the Company to the subsidiaries of Coal India Limited (CIL) as interstate sale. The Company filed writ petitions in the Honorable High Court of Odisha in August 2009 impleading other State Governments, CIL and its subsidiary companies seeking directions for issues of Form ‘C'' and pass over of local sales tax to the State of Odisha. The Honorable Supreme Court had permitted the Company to take the matter in appropriate forum.

The Company had been legally advised that as per the settled cases, the Company is entitled for concessional sales tax rates as per Central Sales Tax and interest should be charged from re- computation order. However, necessary provision had been made and is included in Provision - Indirect Taxes under Note 6.

8. The Company has not received any intimation from “Suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to amounts unpaid as at the year-end together with interest paid/ payable as required under the said Act have not been given.

9. Employee Benefits

(i) Disclosure in respect of Gratuity as required under Accounting Standard 15-Employee Benefits:

(iv) The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized '' 93.62 Lakhs (Previous Year -Rs. 96.28 Lakhs) for Provident Fund contributions, Rs. 43.28 Lakhs (Previous Year - Rs. 44.54 Lakhs) for Superannuation Fund contributions and Rs. 2.71 Lakhs (Previous Year - Rs. 1.98 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss (Refer Note 22). The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

10. Related Party Disclosure:

(i) Information relating to Related Party Transactions as per “Accounting Standard 18 - Related Party Transactions”:

a. Ultimate Holding Company:

Amas Holding S.A.

b. Holding Company:

Gulf Oil International (Mauritius) Inc. (Till 17th March 2015)

Hinduja Power Limited (From 18th March 2015)

c. Subsidiaries:

1. IDL Explosives Limited

2. HGHL Holdings Limited

3. IDL Buildware Limited

4. Gulf Carosserie India Limited

d. Entity holding more than 20% of the shareholding in the Company:

Gulf Oil International (Mauritius) Inc. (Till 1st April 2014)

e. Key Management Personnel:

Mr. S Pramanik -Managing Director

f. Fellow Subsidiary:

Gulf Oil Lubricants India Limited (Till 17th March 2015)

(ii) Details of transactions between the Company and Related Parties and the status of Outstanding balances at the year ended 31st March 2016:

11. Leases

(i) Operating Lease: Where the Company is a Lessee:

a) The Company''s significant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.).The leasing arrangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as rent in the Statement of Profit and Loss.

b) The Company has taken certain vehicle under non-cancellable lease. The future minimum lease payments in respect of these as at 31st March 2016 are as follows:

Notes:

(a) Business Segment:

The Company has considered business segment as the primary segment for disclosure.

Segments are identified and reported taking into account the Organization structure, the nature of products and services, the deferring risks and the returns of the segments.

The business segments of the Company are (i) Energetic, (ii) Mining and Infrastructure Contracts, (iii) Realty (iv) Lubricating Oils and (v) Others.

(b) Geographical Segment:

The Geographical segments considered for disclosure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India, and

- Revenue outside India includes sales to customers located outside India and earnings outside India.

12.. Previous year''s figures have been regrouped / reclassified, wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

A. CORPORATE INFORMATION

The Company is in the business of Energetics (Formerly Industrial Explosives), Mining & Infrastructure Services (Formerly Consult) and Realty (Formerly Property Development)

1. During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1st April 2014, the Company has revised the estimated useful life of its fixed assets to align the useful life with those specified in Schedule II.

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life was determined to be Nil as on 1 st April 2014 and has adjusted Rs. 146.99 Lakhs (Net of deferred tax of Rs. 75.69 Lakhs) against the opening balance in the Statement of Profit and Loss under Reserves and Surplus. Consequent to the change in the useful life of fixed assets, the impact on the depreciation expense for the year is not material.

2. Realty (Formerly Property Development)

i. Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 183,896.69 Lakhs had been credited to Revaluation Reserve in the earlier years. In view of steep recession in the Realty Sector, management reassessed the valuation of the aforesaid properties as on 31st March 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka and Andhra Pradesh, the value of the subject lands had been reassessed and the resultant surplus on revaluation amounted to Rs. 43,799.82 Lakhs. The resultant write down aggregating to Rs.140,096.87 Lakhs, in accordance with the requirement of Accounting Standard-10 "Accounting for Fixed Assets" had been debited to Revaluation Reserve.

ii. In the financial year 2011-12, the Company surrendered certain portion of the land for road laying and widening purposes to Greater Hyderabad Municipal Corporation. Consequently Rs. 3,285.67 Lakhs had been withdrawn from Revaluation Reserve.

iii. As at 31st March 2012, land meant for property development situated at Hyderabad, had been revalued based on valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 63,027.56 Lakhs had been credited to Revaluation Reserve.

iv. In the financial year 2010-11, land at Bengaluru (cost of Rs. 3,610.66 Lakhs) meant for Property Development transferred to Inventory as approvals necessary for development of land were obtained. In terms of the Joint Development Agreement between the Company and Hinduja Realty Venture Limited (HRVL), the Company granted development rights to develop the property. In consideration, HRVL, at its own cost and expenses develop the said property. Further the built up area, amenities and facilities so constructed shall be shared by Company and HRVL in the ratio of 30:70 respectively according to the other terms and conditions mentioned in the agreement. The Company created equitable mortgage by way of deposit of title deeds in respect of the aforesaid Land towards loan of Rs. 85,000 Lakhs availed by Co-Developer (HRVL) from various lenders.

3. Discontinuing Operations of Lubricants Undertaking

The Board of Directors of the Company in its meeting held on 7th August 2013 approved the Scheme of Arrangement ("the Scheme") between the Company and Gulf Oil Lubricants India Limited (formerly Hinduja Infrastructure Limited) (GOLIL), for demerger of its "Lubricants Undertaking". The Scheme was sanctioned by the Hon''ble High Court Judicature of Andhra Pradesh vide Order dated 16th April 2014, which was thereafter filed with Registrar of Companies. Post demerger, GOLIL has ceased to be subsidiary of the company.

Pursuant to the Scheme, the assets and liabilities relating to the Lubricants Undertaking were transferred to and vested in GOLIL with effect from 1st April 2014. In terms of the Scheme, the difference between the value of assets and liabilities including allocation of common liabilities amounting to Rs. 14,362.65 Lakhs has been appropriated first against the paid-up value of the Share Capital cancelled (Rs. 991.45 lakhs) pursuant to the Scheme and the balance has been appropriated against Securities Premium Account (Rs. 12,139.52 lakhs) and then the remaining difference appropriated to General Reserve (Rs. 1,231.68 lakhs) of the Company.

In consideration for the above and in terms of the Scheme, one fully-paid up equity share of face value of Rs. 2 each of GOLIL was allotted to the shareholders of the Company, in lieu of every two equity shares of face value of Rs. 2 each held in the Company, prior to giving effect to reduction of Share Capital (i.e., from Rs.1,982.90 Lakhs to Rs. 991.45 Lakhs). The paid-up Share Capital of the Company, consequent to the implementation of the Scheme, comprises of 4,95,72,490 equity shares of Rs. 2 each. Further, as a consequence of the reduction of capital of the Company, the authorised share capital was re-organised to comprise of 7,54,27,51 0 equity shares of Rs. 2 each.

In view of the aforesaid implementation of the Scheme with effect from 1st April 2014, the figures for the current year are strictly not comparable with those of corresponding previous year figures.

4.1 Contingent Liabilities and Commitments:

(Rs. Lakhs)

As at As at 31st March 2015 31st March 2014

A. Contingent Liabilities:

Claims against the Company not acknowledged as Debts

a) Income Tax Demands 2944.24 1452.52

b) Sales Tax Demands 210.08 2098.11

c) Excise Demands 643.68 856.39

d) Additional Demands towards cost of land 3.81 3.81

e) Claims of workmen/ex- employees 147.50 145.75

f) Other Matters (also Refer Notes 3 and 4 below) 48.05 23.16

B. Commitments:

(a) Corporate Guarantees (Refer Note 1 below) 47413.00 12913.00

(b) Letters of Comfort (Refer Note 2 below) 110625.00 107847.00

(c) Estimated amount of contracts remaining to be executed on capital account [Net of advance of Rs. 34.83 Lakhs (As at 31st March 2014 - Rs. 155.67 Lakhs)] 56.58 1,487.54

Notes:

1) (a) The Company has given Corporate Guarantees aggregating to Rs. 12,913.00 Lakhs (31st March 2014 - Rs. 12,913.00 Lakhs) to the banks on behalf of its wholly owned subsidiary, IDL Explosives Limited. The amount of loan outstanding as on 31st March 2015 is Rs. 5,818.95 Lakhs (31st March 2014 - Rs.3,338.83 Lakhs)

(b) During the current year, the Company has given Corporate Guarantee for sums not exceeding Rs. 34,500 Lakhs to the banks on behalf of its one of the group company, Gulf Oil Lubricants India Limited. The amount of loan outstanding as on 31st March 2015 is Rs. 21,562.75 Lakhs.

2). During the year ended 31st March 2013, the Company through its then stepdown subsidiary GHGL London Limited, UK (immediate subsidiary being HGHL Holdings Limited) (HGHL), had acquired Houghton International Inc. in USA. HGHL had taken a loan of USD 300 million from Lenders to part finance the acquisition. During the previous year, USD 120 million was repaid by HGHL to t he Lenders. The amount of loan outstanding as on 31st March 2015 is Rs. 110,625 Lakhs (31st March 2014 - Rs. 107,847 Lakhs). The said loan was extended on the basis of Letter of Comfort/Stand-By Letter of Credit Facility Agreement between the Company, HGHL (both being Co-Obligators to the said Facility) and lenders on the strength of guarantee of Gulf Oil International Limited, Cayman and Cash Deficit Undertaking from its specified subsidiaries and also from the Company, wherein they are obligated to make contributions to HGHL in case of deficiencies in resources for servicing the said facilities. Gulf Oil International Limited, Cayman has provided a Guarantee to the Company for due serving and repayment of entire balance outstanding loan, as per repayment schedule of the Lender. During the current year, Gulf Oil Lubricants India Limited has also provided the similar Cash Deficit Undertaking in favour of the SBLC lenders.

In terms of the aforesaid agreement, the loan is also secured by: (i) first pari-passu charge by way of equitable mortgage on land of the Company admeasuring 64.125 acres at Kukatpally, Hyderabad and (ii) first pari-passu charge along with existing lenders by way of equitable mortgage on land admeasuring 115.10 acres at Hyderabad and buildings, and plant & machinery belonging to Energetics Division. GHGL London Limited and its step down subsidiaries including Houghton International Inc. ceased to be subsidiaries of the company, consequent to infusion of fresh equity to the extent of 90% by Gulf Oil International Limited in GHGL London Limited during the previous year.

3) The Competition Commission of India has passed an order in a case filed by a customer imposing a penalty of Rs. 2,894.76 Lakhs during the previous year. Against the said order, the Company filed an appeal in Competition Appellate Tribunal ("COMPAT"). The appeal was disposed off by reducing the penalty amount to Rs. 289 Lakhs. The Company filed an appeal in the Supreme Court and the appeal has been admitted. The interim stay on deposit of penalty amount of Rs. 289 lakhs to continue till the next date of hearing. The case was not heard by the Honourable Supreme Court during the year as the pleadings are in progress before the Judicial Registrar and the same is pending.

4) The Company has registered lease deeds of land on various dates with Sri Udasin Mutt for certain parcels of land at Kukatpally, Hyderabad for 99 years after obtaining permission from the then Government of Andhra Pradesh. However, the Mutt filed eviction proceedings before the AP Endowment Tribunal on various untenable grounds and claimed use and occupation charges.

Aggrieved by the Tribunal order, the Company filed a Writ Petition (WP) in 2011 in the Hon''ble High Court of Andhra Pradesh (AP High Court). The Mutt has also filed a separate Writ Petition in the AP High Court with regard to the Tribunal''s decision on use and occupation charges. The AP High Court vide common order dismissed the WP filed by the Company and allowed the WP filed by the Mutt.

Both the parties filed Special Leave Petition (SLP) in 2013 before the Hon''ble Supreme Court against the aforesaid common order. The Hon''ble Supreme Court directed the parties to maintain status quo in all respects. Subsequently in August 2014, the Hon''ble Supreme Court while granting leave, directed the Company to deposit Rs.100 Lakhs per annum for the year 2014 provisionally towards use and occupation of the subject land, which the Company has deposited with the Supreme Court Registry.

5. Fixed Assets: Buildings include:

(i) Rs.7.09 Lakhs, which represents the cost of ownership of the flats Rs. 7.08 Lakhs and Rs. 0.01 Lakh being the value of share money in Sett Minar Co-operative Housing Society Limited.

(ii) Rs. 4.70 Lakhs, which represents the cost of ownership of five flats Rs. 4.43 Lakhs and Rs. 0.27 Lakh being the value of 270 ordinary shares of Rs.100 each, fully paid up in Shree Nirmal Commercial Limited

6. Odisha Sales Tax

The Honorable Supreme Court vide its order dated 16th November 2007, held that the stock transfers constituted inter-state sale in respect of assessment year viz., 1976-77 to 1983-84, 1989-90 & 1990-91 and also directed the authorities to examine the fact ual aspects and assess tax on supplies made by the Company to the subsidiaries of Coal India Limited (CIL) as inter-state sale. The Company filed writ petitions in the Honorable High Court of Odisha in August 2009 impleading other state Governments, CIL and its subsidiary companies seeking directions for issue of Form ''C'' and pass over of local sales tax to the State of Odisha. The Honorable Supreme Court has permitted the Company to take the matter in appropriate Forum.

The Company has been legally advised that as per the settled cases, the Company is entitled for concessional sales tax rates as per Central Sales Tax and Interest should be charged from re-computation order.

However, necessary provision has been made and is included in Provision – Indirect Taxes under Note 6.

7. The Company has not received any intimation from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure if any, relating to amounts unpaid as at the year-end together with interest paid/ payable as required under the said Act have not been given.

(iv) The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 96.28 Lakhs (Previous Year: Rs. 270.10 Lakhs) for Provident Fund contributions, Rs. 44.54 Lakhs (Previous Year: Rs. 110.29 Lakhs) for Superannuation Fund contributions and Rs. 1.98 Lakhs (Previous Year: Rs. 38.80 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

8. Related Party Disclosure:

(i) Information relating to Related Party Transactions as per "Accounting Standard 18 - Related Party Transactions":

A. Holding Company:

Gulf Oil International (Mauritius) Inc. (Till 17th March 2015) Hinduja Power Limited (from 18th March 2015)

B. Subsidiaries:

1. IDL Explosives Limited

2. HGHL Holdings Limited

3. Gulf Oil Lubricants India Limited (Till 31st March 2014)

4. IDL Buildware Limited

5. Gulf Carosserie India Limited

6. Gulf Oil Bangladesh Limited (Till 31st December 2013)

7. PT Gulf Oil Lubricants Indonesia (Till 31st December 2013)

8. Gulf Oil (Yantai) Limited, China (Till 31st December 2013)

C. Entity Holding More than 20% of the shareholding in the company: Gulf Oil International (Mauritius) Inc. (Till 1st April 2014)

D. Key Management Personnel:

Mr. S. Pramanik – Managing Director

E. Fellow Subsidiary:

Gulf Oil Lubricants India Limited (Till 17th March 2015)

9. Leases

(i) Operating Lease: Where the Company is a Lessee:

a. The Company''s significant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.).The leasing arrangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as rent in the Statement of Profit and Loss.

Notes:

(a) Business Segment:

The Company has considered business segment as the primary segment for disclosure.

Segments are identified and reported taking into account the Organization structure, the nature of products and services, the deferring risks and the returns of the segments.

The business segments of the Company are (i) Energetics, (ii) Mining and Infrastructure Contracts, (iii) Realty (iv) Lubricating Oils and (v) Others.

(b) Geographical Segment:

The Geographical segments considered for disclosure are as follows:

· Revenue within India includes sales to customers located within India and earnings in India, and

· Revenue outside India includes sales to customers located outside India and earnings outside India.

10. Previous year''s figures have been regrouped / reclassified, wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2014

1. Property Development:

i. Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March, 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to – 183,896.69 Lakhs had been credited to Revaluation Reserve in the earlier years. In view of steep recession in the realty sector, management reassessed the valuation of the aforesaid properties as on 31st March, 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka and Andhra Pradesh, the value of the subject lands has been reassessed and the resultant surplus on revaluation amounted to – 43,799.82 Lakhs. The resultant write down aggregating to –140,096.87 Lakhs has, in accordance with the requirement of Accounting Standard-10 "Accounting for Fixed Assets" was debited to Revaluation Reserve.

ii. During the year ended 31st March 2012, the Company surrendered certain portion of the land for road widening purposes to Greater Hyderabad Municipal Corporation. Consequently – 3,285.67 Lakhs had been withdrawn from Revaluation Reserve.

iii. As at 31st March 2012, land meant for property development situated at Hyderabad, had been revalued based on valuation by an approved valuer. The resultant surplus on such revaluation amounting to – 63,027.56 Lakhs has been credited to Revaluation Reserve.

iv. During the year ended 31st March 2011, land at Bengaluru (cost of – 3,294.41 Lakhs) meant for Property Development has been transferred to Inventory as approvals necessary for development of land have been obtained. In terms of the Joint Development Agreement between the Company and Hinduja Realty Venture Limited (HRVL), the Company has granted development rights to develop the property. In consideration HRVL, at its own cost and expenses develop the said property. Further the built up area, amenities and facilities so constructed shall be shared by Company and HRVL in the ratio of 30:70 respectively according to the other terms and conditions mentioned in the agreement. The Company has created equitable mortgage by way of deposit of title deeds in respect of the aforesaid Land towards loan of – 85,000 Lakhs availed by Co-Developer Hinduja Realty Venture Limited from various lenders.

2. Discontinuing Operations of Lubricants Undertaking

The Board of Directors of the Company in its meeting held on 7th August 2013 have approved Scheme of Arrangement ("the Scheme") for demerger of its ''Lubricants Undertaking'' and transfer to Gulf Oil Lubricants India Limited (formerly Hinduja Infrastructure Limited), a wholly owned subsidiary, effective from 1st April 2014, subject to necessary regulatory and statutory approvals. The said Scheme has been approved by the Honorable High Court of Andhra Pradesh vide Order dated 16th April 2014.

In accordance with the Scheme, one equity share of – 2 face value in Gulf Oil Lubricants India Limited (GOLIL) will be allotted to shareholders of the Company, for every 2 equity shares of –2 each of fully paid- up in the Company. In terms of the Scheme, the issued, subscribed and paid-up equity share capital of the Company shall be reduced by reducing the face value of the equity shares from one equity share of – 2 each fully paid-up to one equity share of – 1 each fully paid- up. As a result, the issued, subscribed and paid-up share capital of the Company shall stand reduced by an amount of – 9,91,44,980 to – 9,91,44,980 comprising 9,91,44,980 equity shares of – 1 each. Simultaneously, 2 equity shares each of – 1 shall be consolidated into one fully paid-up equity share of – 2 each.

3. Contingent Liabilities and Commitments:

A. Contingent Liabilities:

(i) Claims against the Company not acknowledged as Debts

a) Income Tax Demands 1452.52 2119.41

b) Wealth Tax Demands - 197.93

c) Sales Tax Demands 2098.11 2159.67

d) Excise Demands 856.39 849.16

e) Additional Demands towards cost of land 3.81 3.81

f) Claims of workmen/ex-employees 145.75 96.41

g) Other Matters (Refer Note 3 below) 23.16 66.88

B. Commitments: (a) Corporate Guarantees (Refer Note 1 below) 12913.00 10626.60

(b) Letters of Comfort (Refer Note 2 below) 107847.00 165855.00

(c) Estimated amount of contracts remaining to be executed on capital account [Net of advance of Rs 155.67 Lakhs (As at 31st March 2013 - Rs 5.25 Lakhs) 1487.54 4139.83

Notes:

1) The Company has given Corporate Guarantees aggregating to – 12,913 lakhs (31st March 2013 - – 9,913.00 Lakhs) to the banks on behalf of its wholly owned subsidiary IDL Explosives Limited. The amount of loan outstanding as on 31st March 2014 is – 3,338.83 Lakhs (31st March 2013 - – 655.15 Lakhs)

2) (a) In previous year the company, had given a Letter of Comfort of – 3,000.00 Lakhs to a bank on behalf of its wholly owned subsidiary, IDL Explosives Limited. The amount outstanding as on 31st March 2014 is – Nil (31st March 2013 is – 2,424.60 Lakhs).

(b) During the previous year, the Company through its step down subsidiary GHGL London Limited, UK (immediate subsidiary being HGHL Holdings Limited) (HGHL), had acquired Houghton International Inc. in USA. HGHL had taken a loan of USD 300 million from Lenders to part finance the acquisition. During the year, USD 120 million was repaid by HGHL to the Lenders. The amount of loan outstanding as on 31 March 2014 is – 1,07,847 Lakhs (31st March 2013 is – 162,855 Lakhs). The said loan was extended on the basis of Letter of Comfort/Stand-By Letter of Credit Facility Agreement between the Company, HGHL (both being Co-Obligors to the said Facility) and lenders on the strength of guarantee of Gulf Oil International Limited, Cayman and Cash Deficit Undertaking from its specified subsidiaries and also from the Company, wherein they are obligated to make contributions to HGHL in case of deficiencies in resources for servicing the said facilities. Gulf Oil International Limited has provided a Guarantee to the company for due serving and repayment of entire balance outstanding loan, as per repayment schedule of the Lender.

In terms of the aforesaid agreement the loan is also secured by: (i) first pari-passu charge by way of equitable mortgage on land of the Company admeasuring 112.26 acres at Kukatpally, Hyderabad and (ii) first pari-passu charge along with existing lenders by way of equitable mortgage on land admeasuring 115.25 acres at Hyderabad and buildings, and plant & machinery belonging to Explosives Division. GHGL London Limited and its step- down subsidiaries including Houghton International Inc. have ceased to be subsidiaries of the company, consequent to infusion of fresh equity to the extent of 90% by Gulf Oil International Limited in GHGL London Limited during the year.

3) The Competition Commission of India has passed an order in a case filed by a customer imposing a penalty of – 2,894.76 Lakhs. Against the said order, the Company filed an appeal in Competition Appellate Tribunal ("COMPAT"). The appeal was disposed off by reducingthe penalty amount to – 289.00 Lakhs. The Company has filed an appeal in the Supreme Court and appeal has been admitted. Interim stay for deposit of penalty amount has been granted until next hearing. The amount of –150.09 Lakhs deposited with Competition Commission of India in the previous year has been refunded during the year.

4. Fixed Assets: Buildings include:

(i) – 7.09 Lakhs, which represents the cost of ownership of the flats – 7.08 Lakhs and – 0.01 Lakhs being the value of share money in Sett Minar Co-operative Housing Society Limited.

(ii) – 4.70 Lakhs, which, represents the cost of ownership five flats – 4.43 Lakhs and – 0.27 Lakhs being the value of 270 ordinary shares of – 100 each, fully paid up in Shree Nirmal Commercial Limited.

5. The Honorable Supreme Court vide its order dated 16th November 2007, held that the stock transfers constituted inter- state sale in respect of assessment years viz., 1976-77 to 1983-84,1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on the supplies made by the Company to the subsidiaries of Coal India Limited (CIL) as inter-state sale.

The Company has filed writ petitions in the Honorable High Court of Orissa in August 2009 impleading other State Governments, CIL and its subsidiary companies seeking directions for issues of Form ''C'' and pass over of local sales tax to the State of Orissa. The Honorable High Court has permitted the Company to approach appropriate forum to take the matter.

The Company has been legally advised that as per the settled cases, the Company is entitled for concessional sales tax rates as per Central Sales Tax and interest should be charged from recomputation order. However, necessary provision has been made and is included in Provision – Indirect Taxes under Note 7.

6. Trade payables- Dues to Micro and Small Enterprises:-

The Company has received intimation from "Suppliers" regarding their status under the Micro, Small and Medium Scale Enterprises Development Act, 2006. Disclosure required under Section 22 of Micro, Small and Medium Enterprises

7. Employee Benefits

(i) Disclosure in respect of Gratuity as required under Accounting Standard 15–Employee Benefits:

(iv) The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs 270.10 Lakhs (Previous Year Rs.– 313.41 Lakhs) for Provident Fund contributions, Rs 110.29 Lakhs (Previous Year Rs – 118.29 Lakhs) for Superannuation Fund contributions and Rs 38.80 Lakhs (Previous Year Rs. 36.73 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss (Refer Note 23). The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

8. Related Party Disclosure:

(i) Information relating to Related Party transactions as per " Accounting Standard 18" notified by the Companies (Accounting Standards) Rules, 2006.

A. Subsidiaries:

1. IDL Buildware Limited

2. Gulf Carosserie India Limited

3. Gulf Oil Lubricants India Limited (formerly Hinduja Infrastructure Limited)

4. IDL Explosives Limited

5. HGHL Holdings Limited (From 21st November, 2012)

6. Gulf Oil Bangladesh Limited (Till 31st December 2013)

7. PT Gulf Oil Lubricants Indonesia (Till 31st December 2013)

8. Gulf Oil (Yantai) Limited, China (Till 31st December 2013)

B. Entity holding more than 20% of the shareholding in the Company:

Gulf Oil International (Mauritius) Inc.

C. Key Management Personnel:

Mr. S. Pramanik – Managing Director

9. Leases

(i) Operating Lease: Where the Company is a Lessee:

a. The Company''s significant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.).The leasing arrangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as rent in the Statement of Profit and Loss.

Lease Rent on the aforesaid vehicle amounting to – Nil (31st March 2013 Rs– 561.26 Lakhs) has been charged to Statement of Profit and Loss under Rent.

(ii) Where the Company is Lessor:

Details in respect of assets given on operating lease:

The assets given on lease are not non-cancellable and range generally between 11 months to 5 years and are usually renewable by mutual consent, on agreeable terms. The aggregate lease rentals are recognized as income from property in the Statement of Profit and Loss. Initial direct costs are recognized as an expense in the year in which these are incurred.

(iii) Hire Purchase:

(a) The Company has taken plant and machinery, motor vehicles under hire purchase arrangements for which the ownership will be transferred to the Company at the end of the hire purchase term.

(b) Reconciliation between the total of minimum hire purchase payments at the balance sheet date and the present value:

Notes:

(a) Business Segment:

The Company has considered business segment as the primary segment for disclosure.

Segments are identified and reported taking into account the Organization structure, the nature of products and services, the deferring risks and the returns of the segments.

The business segments of the Company are (i) Explosives, (ii) Consult dealing in Mining & Infrastructure Contracts, (iii) Property Development (iv) Lubricating Oils and (v) Others.

(b) Geographical Segment:

The Geographical segments considered for disclosure are as follows:

Revenue within India includes sales to customers located within India and earnings in India, and

Revenue outside India includes sales to customers located outside India and earnings outside India.

10. Previous year''s figures have been regrouped / reclassified, wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

A. CORPORATE INFORMATION

The Company is in business of Lubricants, Industrial Explosives, Mining&lnfrastructure services and Property Development.

1. Property Development:

i. Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March, 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 183,896.69 Lakhs had been credited to Revaluation Reserve in the earlier years. In view of steep recession in the realty sector, management reassessed the valuation of the aforesaid properties as on 31st March, 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka & Andhra Pradesh, the value ofthe subject lands has been reassessed and, the resultant surplus on revaluation amounted to Rs. 43,799.82 Lakhs. The resultant write down aggregating to Rs. 140,096.87 Lakhs has, in accordance with the requirement of Accounting Standard-10 "Accounting for Fixed assets" was debited to Revaluation Reserve.

ii. During the previous year, the Company surrendered certain portion of the land for road widening purposes to Greater Hyderabad Municipal Corporation. Consequently Rs. 3,285.67 Lakhs had been withdrawn from revaluation reserve in the previous year.

iii. As at 31st March 2012, land meant for property development situated at Hyderabad, had been revalued based on valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 63,027.56 Lakhs has been credited to Revaluation Reserve

iv. During the year ended 31st March, 2011, land at Bengaluru (cost ofRs. 3,294.41 Lakhs) meant for Property Development has been transferred to Inventory as approvals necessary for development of land has been obtained. The Company has created equitable mortgage by way of deposit of title deeds in respect of the aforesaid Land towards loan of Rs.85,000 Lakhs availed by Hinduja Reality Venture Limited from various lenders.

2. Contingent liabilities and Commitments:

As at As at 31st March 2013 31st March 2012 Rs. Lakhs Rs. Lakhs

A. Contingent liabilities:

(i) Claims against the Company not acknowledged as debts

(a) Income Tax Demands 2119.41 1756.90

(b) Wealth Tax 197.93 196.66

(c) Sales Tax Demands 2159.67 1942.24

(d) Excise Demands 849.16 793.03

(e) Additional Demands towards cost of land 3.81 54.93

(f) Claims of workmen/ex-employees 96.41 85.40

(g) Other Matters @ 66.88 93.26

3. Fixed Assets: Buildings include:

(i) Rs. 7.09 Lakhs, which represents the cost of ownership of the flats Rs. 7.08 Lakhs and Rs. 0.01 Lakhs being the value of share money in Sett Minar Co-operative Housing Society Limited.

(ii) Rs. 4.70 Lakhs, which, represents the cost of ownership five flats Rs. 4.43 Lakhs and Rs. 0.27 Lakhs being the value of 270 ordinary shares of Rs. 100 each, fully paid up in Shree Nirmal Commercial Limited.

4. The Honorable Supreme Court vide its order dated 16th November 2007, held that the stock transfers constituted interstate sale in respect of assessment years viz. 1976-77 to 1983-84,1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on the supplies made by the Company to the subsidiaries of Coal India Limited as interstate sale.

The Company has filed writ petitions in the Honorable High Court of Orissa in August 2009 impleading other State Governments, CIL and its subsidiary Companies seeking directions for issues of C forms and pass over of local sales tax to the State of Orissa. The Honorable High Court has held it and permitted the Company to approach appropriate forum to take the matter. The Company has been legally advised that as per the settled cases, the Company is entitled for concessional sales tax rates as per Central Sales Tax and interest should be charged from recomputation order. However, necessary provision has been made and is included in Provision - Indirect Taxes.

5. Trade payables- Dues to Micro and Small enterprise:

The Company has received intimation from"Suppliers" regarding their status under the Micro, Small and Medium Scale Enterprises Development Act, 2006.

6. Leases

(i) Operating Lease: Where the Company is a Lessee:

(a) The Company''s significant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.).The leasing ar-rangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as rent in the Statement of Profit and Loss.

(b) The Company has taken certain Plant and Machinery under non-cancellable leases :

Lease Rent on the aforesaid plant and machinery amounting to Rs. 697.57 Lakhs (31st March, 2012-Rs. 1107.11 Lakhs) has been charged to Statement of Profit and Loss under rent.

(ii) Where the Company is Lessor:

Details in respect of assets given on operating lease:

The assets given on lease are not non-cancellable and range generally between 11 months to 5 years and are usually renewable by mutual consent, on agreeable terms. The aggregate lease rentals are recognised as income from property in the Statement of Profit & Loss.

Initial direct costs are recognised as an expense in the year in which these are incurred.

(iii) Hire Purchase:

(a) The Company has taken plant and machinery, motor vehicles under hire purchase arrangements for which the ownership will be transferred to the Company at the end of the hire purchase term.

(b) Reconciliation between the total of minimum hire purchase payments at the balance sheet date and the present value:

7. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current period''s classification / disclosure

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Mar 31, 2012

A. Terms / rights attached to Equity Shares

The company has one class of equity shares having a par value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share. 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 shall be according to the members right and interest in the Company.

Security / terms and conditions of repayment

I) Term loans for capital expenditure are secured by a primary security on the fixed assets created out of the loan, ranking pari- passu with other term loan lenders and collateral security by i) first pari passu charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and ii) second pari passu charge on manufacturing buildings, plant and machinery charged to the other term lenders.

(a) Term loan from State Bank of India was taken during the financial year 2006-07 and carries floating rate of interest (15% per annum as on 31st March 2012) with an option to reset after every two years. The loan is repayable in 48 monthly installments of Rs.10.40 Lakhs each.

(b) Term loan from State Bank of Hyderabad was taken during the financial year 2006-07 and carries floating rate of interest (14.50% per annum as on 31st March 2012) . The loan is repayable in 48 monthly installments of Rs. 8.33 lakhs each.

(c) Term loan from Andhra Bank was taken during the year 2006-07 and carries rate of interest at par with State Bank of India. The loan is repayable in 48 monthly installments commencing from 30th July 2007.

(d) Term loan from Oriental Bank of Commerce was taken during the year 2006-07 and carries rate of interest at par with State Bank of India. The loan is repayable in 48 monthly installments commencing from 30th July 2007.

II) Term loans for Overseas Investment are secured by collateral security i) first pari passu charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and ii) second pari passu charge on manufacturing buildings, plant and machinery charged to the other term lenders.

(a) From State Bank of India was taken during the financial year 2007-08 and carries floating rate of interest (15% per annum as on 31st March 2012) with an option to reset after every two years. The loan is repayable in 60 monthly installments of Rs.17 Lakhs each after 21 months moratorium period.

(b) From State Bank of Hyderabad was taken during the financial year 2007-08 and carries floating rate of interest (14.50% per annum as on 31st March 2012) The loan is repayable in 60 monthly installments of Rs. 17.07 Lakhs each commencing from April 2008.

III) Term Loan from State Bank of Hyderabad was taken during the year 2009-10 and carries floating rate of interest (14.25% per annum as on 31st March 2012) with reset after 2 years from the date of 1st disbursement. The loan is repayable in 36 monthly installments of Rs. 69.45 Lakhs after a moratorium of 12 months from the date of first disbursement. The loan is secured by a primary charge by way of hypothecation of raw material, finished goods, stocks in process, stores and spares and receivables of the Company ranking pari-passu with other working capital lenders under consortium arrangement and collateral security by way of i) first pari passu charge along with consortium working capital bankers and term lenders on land admeasuring acres 115.10 at Kukatpally, Hyderabad belonging to the Company ii) Second charge on manufacturing building, plant and machinery charged to term lenders.

IV) Term loan from State Bank of Mauritius Limited was taken during the year 2009-10 and carries floating rate of interest of 2.25% below BPLR (13.25% per annum as on 31st March 2012) and interest will be reset annually. The loan is repayable in 42 installments after a moratorium period of 6 months. Installments for first 12 months are of Rs. 40 lakhs and Rs. 50.67 lakhs for subsequent 30 months. The loan is secured by a primary charge by way of first charge along with other consortium lenders by way of Equitable Mortgage on land admeasuring acres 115.10 at Kukatpally, Hyderabad belonging to Company, except the manufacturing building, plant and machinery charged to the term lenders and first charge along with other consortium lenders on the current assets of the Company.

V) Term loan from Kotak Mahindra Bank was taken during the year 2008-09 and carries rate of interest of 10.25%. The loan is repayable in 32 monthly installments after a moratorium of 3 months from the date of first disbursement (outstanding as on 31st March 2012 is NIL). The loan is secured by way of a primary charge by way of first and exclusive charge on specific equipment procured out of the loan from the bank.

VI) Term loan from Karur Vysya Bank Limited was taken during current year and carries floating rate of interest of 1.50% over and above the base rate of the Bank (12.75% p.a. as on 31st March 2012) with an option to reset after one year from the date of disbursement. The loan tenure is for 3 years including initial holiday period of one year. Repayment of loan will be in two installments, Rs.1000 lakhs to be paid at end of 24th month (i.e., 29th March 2014) from the date of first disbursement and balance outstanding of the loan availed at the end of 36th month (i.e., 29th March 2015). The loan is secured by an exclusive charge on the industrial land admeasuring 4.29 acres located at Kukatpally, Hyderabad standing in the name of the Company.

VII) Term loan from SREI infrastructure Finance Limited are secured by a first charge on the mining equipment created out of the loan. Interest for various loans varies from 8.85% to 11.55% and installments vary from 22 months to 58 months.

(a) Management has been advised Rs. 354.90 Lakhs (31st March 2011 Rs. 917.10 Lakhs) received against advances and Rs. 1,500.00 Lakhs (31st March 2011 Rs. 700.00 Lakhs) towards redemption of Preference share adjusted to Revaluation Reserve in an earlier year, is not required to be considered in computing Minimum Alternate Tax (MAT).

(b) Deferred tax asset has not been created in respect of the adjustment made in an earlier year to Revaluation Reserve.

Security / terms and conditions of repayment

(a) Cash Credit facilities including foreign currency demand loan from Bank of Bahrain & Kuwait BSC and working capital loan from consortium banks is secured by hypothecation of all current assets of the Company including raw materials, finished goods, stock-in-process, stores and spares (not relating to plant & machinery) and present and future book debts of the Company ranking pari-passu and collateral security by (i) first pari passu charge by way of equitable mortgage on the land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders.

(b) Working Capital demand loan from Yes Bank Limited is secured by way of subservient charge on the movable fixed assets and current assets of the Company

Additional information to the financial statements

1. Scheme of Arrangement - Demerger of Explosives Undertaking of the Company:

(i) Pursuant to the Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956 between the Company and IDL Explosives Limited (a wholly owned subsidiary) and their respective shareholders, which was sanctioned by the Honorable High Court of Andhra Pradesh by its Order dated 5th May 2011, the assets and liabilities of the Explosives Undertaking excluding those relating to manufacturing operations at Kukatpally, Hyderabad and certain assets located at Maharashtra and assets and liabilities pertaining to litigations on taxes and duties in favour or against Explosives Undertaking of the Company were transferred to and vested with IDL Explosives Ltd., with effect from 1st October 2010, the appointed date. The Scheme was given effect in the Financial Statements for the year ended 31st March 2011 in accordance with the Sanctioned High Court Order.

(ii) In terms of the Scheme, 249,000 Series A 10% Cumulative Redeemable Preference Shares of Rs. 100 each at a premium of Rs. 900 per share of IDL Explosives Limited aggregating to Rs. 2,490 Lakhs, were issued to the Company as per Scheme of Arrangement during the previous year (alloted on 25th May 2011), towards Rs. 2,255.36 Lakhs representing the excess of assets over liabilities of the Explosives Undertaking transferred to IDL Explosives Limited. The resultant surplus on transfer of the aforesaid Explosives undertaking amounting to Rs. 234.64 Lakhs was shown under "Exceptional item" in the Statement of Profit and Loss of the previous year. The Preference Share were originally to be redeemed the day before 12 months from the date of allotment or within 45 days of infusion of fresh capital in IDL Explosives Limited whichever is earlier, or at its option redeem all or any number of the Preference Shares earlier. The date of redemption has been mutually agreed to be deferred by one year or 45 days from the date of infusion of fresh capital in IDL Explosives Limited.

(iii) Consequent to the vesting of the Explosives undertaking of the Company in terms of the Scheme, the Financial Statements of the Company for the year ended 31st March 2011, include the operations of Explosives undertaking for the period of six months i.e., from 1st April 2010 to 30th September 2010, and are therefore strictly not comparable with figures of current year ended 31st March 2012.

2. Property Development:

(i) Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 183,896.69 Lakhs had been credited to Revaluation Reserve in the earlier years. In view of steep recession in the realty sector, management reassessed the valuation of the aforesaid properties as on 31st March 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka & Andhra Pradesh, the value of the subject lands has been reassessed and, the resultant surplus on revaluation amounted to Rs. 43,799.82 Lakhs. The resultant write down aggregating to Rs. 140,096.87 Lakhs has, in accordance with the requirement of Accounting Standard-10 "Accounting for Fixed assets" was debited to Revaluation Reserve.

(ii) During the year, the Company surrendered certain portion of the land for road widening purposes to Greater Hyderabad Municipal Corporation. Consequently Rs. 3,285.67 Lakhs has been withdrawn from revaluation reserve.

(iii) In the previous year, land at Bengaluru (cost of Rs. 3,294.41 Lakhs) meant for Property Development has been transferred to Inventory as approvals necessary for development of land has been obtained. Accordingly, Revaluation Surplus amounting Rs. 8,893.50 Lakhs on the aforesaid parcel of land was withdrawn from Revaluation Reserve.

(iv) As at 31st March 2012, land meant for property development situated at Hyderabad, has been revalued based on valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 63,027.56 Lakhs has been credited to Revaluation Reserve

3. Contingent liabilities:

As at As at 31st March 2012 31st March 2011

Rs. Lakhs Rs.Lakhs

(i) Claims against the Company not acknowledged as debts

(a) Income Tax Demands 1756.90 1758.36

(b) Wealth Tax 196.66 196.66

(c) Sales Tax Demands 1942.24 2279.11

(d) Excise Demands 793.03 763.62

(e) Service Tax - 4.49

(f) Additional Demands towards cost of land 54.93 3.81

(g) Claims of workmen/ex-employees 85.40 76.04

(h) Other Matters 93.26 93.26

(i) Performance and Other Guarantees 542.01 178.62

(ii) Corporate Guarantees* 10559.80 644.70

*(a) The Company has given a Corporate Guarantee of 100 Million Taka to South East Bank Ltd., on behalf of Gulf Oil Bangladesh Ltd., a subsidiary of Gulf Oil Corporation Ltd. The amount outstanding as on 31st March 2012 is 10.40 Million Taka - Rs. 67.30 lakhs (31st March 2011 4.67 Million Taka - Rs.29.71 Lakhs).

*(b) During the year, the Company has given a Corporate Guarantee of Rs. 9,913.00 Lakhs to Banks on behalf of its wholly owned Subsidiary IDL Explosives Limited till such time charge on the security is created by IDL Explosives Limited . The amount outstanding as on 31st March 2012 is Rs. 541.58 lakhs (31st March 2011 Rs. 999.96 lakhs).

(iii) The Competition Commission of India has passed an order in a case filed by a customer imposing a penalty of Rs. 2,894.76 lakhs. The Company is in the process of initiating an appeal with the Competition Appellate Tribunal against the said order.

4. Fixed Assets: Buildings include:

(i) Rs. 7.09 Lakhs, which represents the cost of ownership flats Rs. 7.08 Lakhs and Rs. 0.01 Lakhs being the value of Share money in Sett Minar Co-operative Housing Society Limited.

(ii) Rs. 4.70 Lakhs, which, represents the cost of ownership flats Rs. 4.43 Lakhs and Rs. 0.27 Lakhs being the value of 270 ordinary shares of Rs. 100 each, fully paid up in Shree Nirmal Commercial Limited.

5. Expenses in the previous year include expenditure incurred by IDL Explosives Limited on marketing staff salaries, rent, distribution etc. aggregating to Rs. 308.40 lakhs and allocated to the Company.

6. The Honorable Supreme Court vide its order dated 16th November 2007, held that the stock transfers constituted interstate sale in respect of 10 years assessment year viz. 1976-77 to 1983-84,1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on the supplies made by the Company to the subsidiaries of Coal India Limited as interstate sale.

The Company has filed writ petitions in the Honorable High Court of Orissa in August 2009 impleading other State Governments, CIL and its subsidiary Companies seeking directions for issues of C forms and pass over of local sales tax to the State of Orissa. The Honorable High Court has held it and permitted the Company to approach appropriate forum to take the matter.

The Company has been legally advised that as per the settled cases, the Company is entitled for concessional sales tax rates as per Central Sales Tax and interest should be charged from recomputation order. However, necessary provision has been made and is included in Provision - Indirect Taxes.

7. Trade payables- Due to Micro Small and Medium enterprise: The Company has not received any intimation from "Suppliers" regarding their status under the Micro, Small and Medium scale Enterprises development Act 2006 and hence disclosures if any, relating to amounts unpaid as at the year end together with interest paid/payable are required under the said Act have not been given.

8. Interest income from customers Rs. 380.00 Lakhs has been accrued on the basis of favourable court order.

9. Leases (a) Operating Lease: Where the Company is a Lessee:

- The Company's significant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.).The leasing arrangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as rent in the Profit and Loss Account.

The assets given on lease are not non-cancellable and range generally between 11 months to 5 years and are usually renewable by mutual consent, on agreeable terms. The aggregate lease rentals are recognised as income from property in the Profit & Loss account.

Initial direct costs are recognised as an expense in the year in which these are incurred.

(c) Hire Purchase:

(i) The Company has taken plant and machinery, motor vehicles under hire purchase arrangements for which the ownership will be transferred to the Company at the end of the hire purchase term.

(iii) Notes:

(a) Business Segment:

The Company has considered business segment as the primary segment for disclosure

Segments have identified and reported taking into account the Organisation structure, the nature of products and services, the deferring risks and returns of the segments

The business segments of the Company are (i) Explosives, (ii) Consult dealing in Mining & Infrastructure Contracts, (iii) Property Development (iv) Lubricating Oils, (v) Others.

(b) Geographical Segment:

The Geographical segments considered for disclosure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India

- Revenue outside India includes sales to customers located outside India and earnings outside India

10. The Revised Schedule VI has become effective from 1st April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2011

1. Demerger of Explosives Undertaking of the Company

(a) Pursuant to Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956 between the Company and IDL Explosives Limited (a wholly owned subsidiary) and their respective shareholders, which was sanctioned by the Honourable High Court of Andhra Pradesh by its Order dated 05th May, 2011, the assets and liabilities of the Explosives Undertaking excluding those relating to manufacturing operations at Kukatpally, Hyderabad and certain assets located at Maharastra and assets and liabilities pertaining to litigations on taxes and duties in favour or against Explosives Undertaking of the Company were transferred to and vested with IDL Explosives Ltd., with effect from 1st October, 2010, the appointed date. The Scheme has accordingly been given effect to in these financial statements in accordance with the Sanctioned High Court Order.

(b) In terms of the Scheme, 2,49,000 Series - A 10% redeemable Preference Shares of Rs. 100 each at a premium of Rs. 900 per share of IDL Explosives Ltd., aggregating to Rs. 2490 Lakhs, were issued to the Company towards Rs. 2255.36 Lakhs representing the excess of assets over liabilities of the Explosives Undertaking transferred to IDL Explosives Limited. Pending allotment, an amount of Rs. 2490 Lakhs has been included in Investments, Schedule 6 as "Shares in IDL Explosives Ltd., pending allotment". The resultant surplus on transfer of the aforesaid Explosives undertaking amounting to Rs. 234.64 Lakhs has been shown under "Exceptional item" in Profit and Loss Account.

(c) Consequent to the vesting of the Explosives undertaking of the Company in terms of the Scheme, the financial statements of the Company for the year ended 31st March 2011, do not include the operations of Explosives undertaking for the period of six months i.e., from 1st October 2010 to 31st March 2011, and are therefore strictly not comparable with figures of previous year ended 31st March 2010.

2. Contingent liabilities

As at As at

31st March 2011 31st March 2010

Rupees Lakhs Rupees Lakhs

(a) Corporate Guarantees * 644.70 397.80

(b) Claims against the Company not acknowledged as debts

(i) Income Tax Demands 1758.36 923.10

(ii) Wealth Tax 196.66 51.97

(iii) Sales Tax Demands 2279.11 2115.53

(iv) Excise Demands 763.62 1305.65

(v) Service Tax 4.49 4.49

(vi) Additional Demands towards cost of land 3.81 3.81

(vii) Claims of workmen/ex-employees 76.04 75.50

(viii) Other Matters 93.26 108.67

(ix) Performance and Other Guarantees 178.62 178.02

(c) In terms of the agreement between IDL Speciality Chemicals Limited, Biocon Limited, and the Company for the sale of Active Pharma Ingredients (API) business to Biocon Limited, the Company would be responsible for guaranteeing to Biocon Limited claims upto a period of one year after the closing date i.e., 30th November, 2009 to the extent of purchase price of Rs.2200 Lakhs. The Company has not received any claims.

* The Company has given a Corporate Guarantee of 100 Million Taka to South East Bank Ltd., on behalf of Gulf Oil Bangladesh Ltd., a subsidiary of Gulf Oil Corporation Ltd. The amount outstanding as on 31st March 2011 is 4.67 Million Taka - Rs. 29.71 Lakhs (31st March 2010, 21.51 Million Taka - Rs. 80.92 Lakhs)

3. Secured Loans

(a) Cash Credit facilities including foreign currency demand loan from Bank of Bahrain & Kuwait B.S.C and working capital loan & corporate loan from consortium banks is secured by hypothecation of all current assets of the Company including raw materials, finished goods, stocks-in-process, stores and spares (not relating to plant & machinery) and present and future book debts of the Company ranking pari-passu and collateral security by (i) first pari passu charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders.

(b) (i) Term loan for Capital Expenditure from State Bank of India is secured by first charge on the fixed assets created out of the loan, ranking pari-passu with other term lenders and collateral security by first pari passu charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders. (ii) Term Loan for Overseas Investment from State Bank of India is secured by collateral security (i) pari passu first charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders.

(c) (i) Term loan for Capital Expenditure from State Bank of Hyderabad is secured by first charge on the fixed assets created out of the loan, ranking pari-passu with the other term lenders and collateral security by (i) first pari passu charge by way of equitable mortgage on land owned by the Company admeasuring Acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders. (ii) Term Loan for Overseas Investment from State Bank of Hyderabad is secured by collateral security (i) pari passu first charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders.

(d) The Term loan for Capital Expenditure from Oriental Bank of Commerce is secured by first charge on the fixed assets created out of the term loan, ranking pari-passu with the other term lenders and collateral security by (i) first pari passu charge by way of Equitable Mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to the other term lenders.

(e) The Term loan for Capital Expenditure from Andhra Bank is secured by first charge on the fixed assets created out of the loan, ranking pari-passu with other term lenders and collateral security by (i) first pari passu charge by way of Equitable Mortgage on land owned by the Company admeasuring acres 115.25 acres situated at Kukatpally, Hyderabad and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to the other term lenders.

(f) Fixed Deposits to the extent of Rs 375.86 Lakhs were secured by a residual charge on all tangible movable property and fixed assets including all movable machinery and plant & machinery, spares and stores, tools and accessories and other movables both present and future as approved by the Controller of Capital Issues vide his letter dated 1st November,1980.

(g) Term Loans from SREI Infrastructure Finance Limited, Kotak Mahindra Bank Limited are secured by way of first charge on specific mining equipment of the Company.

(h) Loan received from Hinduja Ventures Limited is secured by an exclusive charge on the Company's land at Yelahanka, Bengaluru.

4. Fixed Assets

Buildings include:

(i) Rs. 7.09 Lakhs, which represents the cost of ownership flats Rs. 7.08 Lakhs and Rs. 0.01 Lakhs being the value of Share money in Sett Minar Co-operative Housing Society Limited.

(ii) Rs. 4.70 Lakhs, which represents the cost of ownership flats Rs. 4.43 Lakhs and Rs. 0.27 Lakhs being the value of 270 ordinary shares of Rs. 100 each, fully paid up in Shree Nirmal Commercial Limited.

5. Taxation

(ii) Management has been advised Rs. 917.10 Lakhs (Previous year Rs. 1973.25 Lakhs) received against advances and Rs. 700.00 Lakhs (Previous Year Rs. Nil) towards redemption of Preference shares adjusted to Revaluation Reserve in an earlier year, is not required to be considered in computing Minimum Alternate Tax (MAT).

(iii) By way of abundant caution, no deferred tax asset has been created in respect of the adjustments made in earlier year to Revaluation Reserve.

6. Miscellaneous

(a) The net exchange gain / (loss), (i.e., difference between the spot rate on the dates of the transactions and the actual rate at which the transactions are settled/appropriate rates applicable at the year end) debited to Profit & Loss Account is Rs. 92.93 Lakhs (Previous year credit of Rs.168.42 Lakhs).

(b) Exchange difference in respect of forward exchange contracts to be recognised in the Profit and Loss Account in the subsequent accounting period is Rs. Nil (Previous year credit of Rs. 35.39 Lakhs)

(c) (i) The Company has entered into the following derivative instruments:

(d) Sundry creditors (Schedule 11- Current Liabilities) includes Rs. Nil due to Micro Enterprises and Small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006(MSMED Act 2006). The Company has not received any memorandum (as required to be filed by the supplier with the notified authority under the MSMED Act 2006) claiming their status as Micro or Small or Medium Enterprises.

(e) Operating Expenses - Schedule 15 includes expenditure incurred by IDL Explosives Limited on marketing staff salaries, rent, distribution etc aggregating to Rs. 308.40 lakhs and allocated to the Company.

7. Related party disclosures

(A) Information relating to Related Party transactions as per " Accounting Standard 18" notified by the Companies (Accounting Standards) Rules, 2006.

Name of the Related Party Relationship

IDL Buildware Limited

Gulf Carosserie India Limited

Gulf Oil Bangladesh Limited

PT Gulf Oil Lubricants Indonesia Subsidiary

Gulf Oil (Yantai) Co. Limited, China

Hinduja Infrastructure Limited

IDL Explosives Limited Subsidiary from 22nd September, 2010

IDL Speciality Chemicals Limited Subsidiary up to 28th March, 2010

Gulf Oil International (Mauritius) Inc Entity holding more than 20% of the shareholding in the Company

Mr. S.Pramanik, Managing Director Key Management Personnel

8. Disclosure as required by Accounting Standard 19, "Leases" notified by the Companies (Accounting Standards) Rules, 2006 are given below:

(a) Operating Lease

(i) Where the Company is a Lessee

The Company's significant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.). The leasing arrangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as rent in the Profit and Loss Account.

The assets given on lease are not non-cancellable and range generally between 11 months to 5 years and are usually renewable by mutual consent, on agreeable terms. The aggregate lease rentals are recognized as income from property in the Profit & Loss account. Initial direct costs are recognized as an expense in the year in which these are incurred.

b) Hire Purchase

(i) The Company has taken plant and machinery, motor vehicles under hire purchase arrangements for which the ownership will be transferred to the Company at the end of the hire purchase term.

(iiI) Notes:

(a) Business Segment:

The Company has considered business segment as the primary segment for disclosure Segments have identified and reported taking into account the Organisation structure, the nature of products and services, the deferring risks and returns of the segments

The business segments of the Company are

(i) Explosives,

(ii) Consult dealing in Mining & Infrastructure Contracts,

(iii) Property Development

(iv) Lubricating Oils,

(v) Others.

(b) Geographical Segment:

The Geographical segments considered for disclosure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India

- Revenue outside India includes sales to customers located outside India and earnings outside India

9. The Honourable Supreme Court vide its order dated 16.11.2007, held that the stock transfers constituted inter sale in respect of 10 years assessment year viz. 1976-77 to 1983-84, 1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on the supplies made by the Company to the subsidiaries of Coal India Limited as inter state sale.

The Company has filed writ petitions in the High Court of Orissa in August 2009 impleading other State Governments, CIL and its subsidiary Companies seeking directions for issue of C forms and pass over of local sales tax to the State of Orissa. The High Court has held it and permitted the Company to approach appropriate forum to take the matter.

The Company has been legally advised that as per the settled cases, the Company is entitled for concessional sales tax rates as per Central Sales Tax and interest should be charged from recomputation order. However, necessary provision has been made and is included as Provision – Indirect Taxes and no further liability is expected on this account.

10. Income from Property Development

(a) Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March, 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 183,896.69 Lakhs had been credited to Revaluation Reserve in the earlier years. In view of steep recession in the realty sector, management reassessed the valuation of the aforesaid properties as on 31st March, 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka & Andhra Pradesh, the value of the subject lands has been reassessed and, the resultant surplus on revaluation amounted to Rs. 43799.82 Lakhs. The resultant write down aggregating to Rs. 140096.87 Lakhs has, in accordance with the requirement of Accounting Standard-10 "Accounting for Fixed assets" been debited to Revaluation Reserve. During the previous year, the Company has entered into "Agreement to Sell" 4.75 acres of land to IDL Speciality Chemicals Limited. Since the aforesaid parcel of land is no longer meant for Property development, an amount of Rs. 1950.87 Lakhs has been withdrawn from Revaluation Reserve in the previous year.

(b) Land at Bengaluru (cost Rs. 3294.41 Lakhs) meant for Property Development has been transferred to Inventory as approvals necessary for development of land has been obtained. Accordingly, Revaluation Surplus amounting Rs. 8893.50 Lakhs on the aforesaid parcel of land has been withdrawn from Revaluation Reserve.

11. In the earlier years the company had availed CENVAT Credit of Rs. 555.52 lakhs in respect of tippers. The availment of such credit was a matter of dispute at Central Excise & Service Tax Appellate Tribunal. During the year based on the notification issued by the Ministry of Finance, Department of Revenue in June 2010, that cenvat on tippers can be availed and utilized prospectively. The Company has capitalized Rs. 555.52 lakhs and accordingly provided depreciation. For ascertaining provision for tax, the Company has not claimed depreciation under the Income Tax Act, 1961 on the aforesaid amount pending settlement of legal dispute.

12. Previous years figures have been regrouped / recast wherever necessary.

---

Mar 31, 2010

1. Demerger of Speciality Chemicals Division of the Company and merger of Agro Division of IDL Speciality Chemicals Limited with the Company. ("the Scheme") in 2008-09.

1.1 Pursuant to a Scheme of Arrangement between the Company and IDL Speciality Chemicals Limited (IDL SC) and their respective shareholders, which was sanctioned by the Honourable High Court of Andhra Pradesh by its Order dated 24th March, 2009, the assets and liabilities of the Speciality Chemicals Division of the Company were transferred to and vested with IDL SC with effect from 1st April 2008 and the assets and liabilities of Agro Division of IDL SC were transferred and vested with the Company with effect from 1st April, 2008.

1.2 As provided in the Scheme, the debit balance of Rs.87.04 Lakhs in the Profit & Loss Account as at 1st April, 2008 of Agro Division of IDL SC was adjusted against the Revaluation Reserve.

1.3 (a) Pursuant to the Scheme, 97,60,000 equity shares of Rs. 10 each of IDL SC were issued to the Company towards Rs. 6374.14 Lakhs, representing the excess of assets over liabilities of the Speciality Chemicals Division transferred to IDL SC. The shares were issued during the year.

(b) In accordance with the Scheme, the Company was required to discharge the obligations of IDL SC and IDL SC in turn would re-imburse the Company. Accordingly, the liabilities of IDL SC discharged/ to be discharged by the Company aggregating to Rs. 2699.59 Lakhs were included as part of Loans and Advances (Schedule 10). Such liability was discharged during the year.

1.4 The adjustment to Revaluation Reserve of (a) the debit balance in the profit and loss account of IDL SC as at 1st April 2008, amounting to Rs.87.04 Lakhs (Refer Note 2.2 above) and (b) the effect of valuation / restatement / revision of certain assets and liabilities of the Company is Rs. 25283.72 Lakhs (Refer Note 2.4 above) which was in pursuance of the Scheme approved by the Hon’ble High Court of Andhra Pradesh, at Hyderabad in the previous year.

Note:

Having regard to the fact that there is a global contribution to Gratuity Fund, the amount applicable to an individual employee is not ascertainable and accordingly, contribution to Gratuity Fund has not been considered in the above computation.

Note:

The Company had been legally advised that the adjustments made to Revaluation Reserve in 2008-09, in accordance with the Scheme of Arrangement approved by the Honourable High Court of Andhra Pradesh, at Hyderabad, will not have any effect on the profits as determined under Section 349 of the Companies Act, 1956.

Note: Components and Spare Parts referred to in para 4 D (c) of Part II of Schedule VI to the Companies Act, 1956 are assumed to be those incorporated in goods produced and not those used for maintenance of Plant and Machinery.

2. Contingent Liabilities

As at As at

31-03-2010 31-03-2009

Rs. Lakhs Rs. Lakhs

(a) Corporate Guarantees * 397.80 441.00

(b) Bills discounted - 311.46

(c) Claims against the Company not acknowledged as debts

(i) Income Tax Demands 923.10 875.31

(ii) Wealth Tax 51.97 -

(iii) Sales Tax Demands 2115.53 86.02

(iv) Excise Demands 1305.65 20.66

(v) Service Tax 4.49 4.49

(vi) Additional Demands towards cost of land 3.81 3.81

(vii) Claims of workmen/ex-employees 75.50 83.99

(viii) Other Matters 108.67 87.82

(ix) Performance and Other Guarantees 178.02 171.72

(d) In terms of the agreement between IDL Speciality Chemicals Limited, Biocon Limited, and the Company for the sale of Active Pharma Ingredients (API) business to Biocon Limited, the Company would be responsible for guaranteeing to Biocon Limited claims upto a period of one year after the closing date i.e., 30th November, 2009 to the extent of purchase price of Rs.2200 Lakhs. As at 31st March, 2010, the Company has not received any such claims. * The Company has given Corporate Guarantee of 60 Million Taka to South East Bank Ltd., on behalf of Gulf Oil Bangladesh Ltd., a subsidiary of Gulf Oil Corporation Ltd. The amount outstanding as on 31st March 2010 is 21.51 Million Taka (31st March 2009, 10.09 Million Taka)

3. SECURED LOANS:

(a) Cash Credit facilities including foreign currency demand loan from Bank of Bahrain & Kuwait B.S.C and working capital loan & corporate loan from consortium banks is secured by (i) hypothecation of all current assets of the Company including raw materials, finished goods, stocks-in-process, stores and spares (not relating to plant & machinery) and present and future book debts of the Company ranking pari-passu and collateral security by (i) first pari passu charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad, (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders.

(b) (i) Term loan for Capital Expenditure from State Bank of India is secured by first charge on the fixed assetscreated out of the loan, ranking pari-passu with other term lenders andcollateral security by (i) first pari passu charge by way of equitablemortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad, (ii) second pari passu charge onmanufacturing buildings, plant and machinery charged to other term lenders. (ii) Term Loan for Overseas Investment from State Bank of India is secured by collateral security (i) pari passu first charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad, and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders.

(c) (i) Term loan for Capital Expenditure from State Bank of Hyderabad is secured by first charge on the fixed assets created out of the loan, ranking pari-passu with the other term lenders and collateral security by (i) first pari passu charge by way of equitable mortgage on land owned by the Company admeasuring Acres 115.25 situated at Kukatpally, Hyderabad, (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders. (ii) Term Loan for Overseas Investment from State Bank of Hyderabad is secured by collateral security (i) pari passu first charge by way of equitable mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad, and (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to other term lenders.

(d) The Term loan for Capital Expenditure from Oriental Bank of Commerce is secured by first charge on the fixed assets created out of the term loan, ranking pari-passu with the other term lenders and collateral security by (i) first pari passu charge by way of Equitable Mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad, (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to the other term lenders.

(e) The Term loan for Capital Expenditure from Andhra Bank is secured by first charge on the fixed assets created out of the loan, ranking pari-passu with other term lenders and collateral security by (i) first pari passu charge by way of Equitable Mortgage on land owned by the Company admeasuring acres 115.25 situated at Kukatpally, Hyderabad, (ii) second pari passu charge on manufacturing buildings, plant and machinery charged to the other term lenders.

(f) Fixed Deposits to the extent of Rs 375.86 Lakhs were secured by a residual charge on all tangible movable property and fixed assets including all movable machinery and plant & machinery, spares and stores, tools and accessories and other movables both present and future as approved by the Controller of Capital Issues vide his letter dated 1st November,1980.

(g) Term Loans from ABN Amro Bank NV, SREI Infrastructure Finance Limited, Kotak Mahindra Bank Limited are secured by way of first charge on specifi c mining equipment of the Company

(h) Loan received from Hinduja Ventures Limited is secured by an exclusive charge on the Company’s land at Yelahanka, Bengaluru.

4. FIXED ASSETS

Buildings include:

(i) Rs. 7.09 Lakhs, which represents the cost of ownership flats Rs. 7.08 Lakhs and Rs. 0.01 Lakhs being the value of Share money in Sett Minar Co-operative Housing Society Limited.

(ii) Rs. 4.70 Lakhs, which, represents the cost of ownership flats Rs. 4.43 Lakhs and Rs. 0.27 Lakhs being the value of 270 ordinary shares of Rs. 100 each, fully paid up in Shree Nirmal Commercial Limited.

(ii) Management has been advised that Rs.1973.25 Lakhs received against advances adjusted to Revaluation Reserve in the previous year, is not required to be considered in computing Minimum Alternate Tax (MAT).

(iii) By way of abundant caution, no deferred tax asset has been created in respect of the adjustments made to Revaluation Reserve as detailed in Note 2 of Schedule 18.

5. MISCELLANEOUS:

(a) The net exchange gain / (loss), (i.e., difference between the spot rate on the dates of the transactions and the actual rate at which the transactions are settled/appropriate rates applicable at the year end) credited to Profit and Loss Account is Rs. 168.42 Lakhs (Previous year debit of Rs.2579.61 Lakhs).

(b) Exchange difference in respect of forward exchange contracts to be recognised in the Profit and Loss Account in the subsequent accounting period is Rs. 35.39 Lakhs (Credit) (Previous year debit of Rs. 3.59 Lakhs).

(d) Sundry creditors (Schedule 11- Current Liabilities) include Rs nil due to Micro Enterprises and Small Enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act 2006). The Company has not received any memorandum (as required to be fi led by the supplier with the notified authority under the MSMED Act 2006) claiming their status as Micro or Small or Medium Enterprises.

(b) In the previous year pursuant to the notifi cation GSR 225(E) issued by Ministry of Corporate Affairs relating to Accounting Standard 11 "Effect of changes in Foreign Exchange Rates", the Company has exercised the option to capitalize exchange differences on translation of long term foreign currency monetary items on depreciable capital assets. Accordingly, the foreign exchange difference of Rs. 52.24 Lakhs (31.03.2009 Rs.105.15 Lakhs including foreign exchange gain of Rs. 65.04 Lakhs relating to the earlier year and adjusted to General Reserve as on 1st April, 2008) on translation of long term foreign currency monetary items relating to acquisition of fixed assets has been capitalized and depreciated over the remaining useful life of the fixed assets.

6. Disclosure as required by Accounting Standard 19, "Leases" notified by the Companies (Accounting Standards) Rules, 2006 are given below:

(a) Operating Lease:

(i) Where the Company is a Lessee:

> The Company’s signifi cant leasing arrangements are in respect of operating leases for premises (residences, office, storage godowns for finished goods etc.). The leasing arrangements, which are not non-cancellable range generally between 11 months to 5 years and are usually renewable by mutual consent on agreed terms. The aggregate lease rents payable are charged as rent in the Profit and Loss Account.

b) Hire Purchase:

(i) The Company has taken plant and machinery, motor vehicles under hire purchase arrangements for which the ownership will be transferred to the Company at the end of the hire purchase term.

(ii) Reconciliation between the total of minimum hire purchase payments at the balance sheet date and the

(iii) Notes:

(a) Business Segment:

The Company has considered business segment as the primary segment for disclosure

Segments have been identified and reported taking into account the Organisation structure, the nature of products and services, the deferring risks and returns of the segments

The business segments of the Company are (i) Explosives, (ii) Consult dealing in Mining & Infrastructure Contracts, (iii) Property Development (iv) Lubricating Oils, (v) Others

(b) Geographical Segment:

The Geographical segments considered for disclousure are as follows:

- Revenue within India includes sales to customers located within India and earnings in India

- Revenue outside India includes sales to customers located outside India and earnings outside India

7. The Honourable Supreme Court vide its order dated 16.11.2007, held that the stock transfers constituted inter sale in respect of 10 years assessment year viz. 1976-77 to 1983-84,1989-90 & 1990-91 and also directed the authorities to examine the factual aspects and assess tax on the supplies made by the Company to the subsidiaries of Coal India Limited as inter state sale.

The Company has filed writ petitions in the High Court of Orissa in August 2009 impleading other State Governments, CIL and its subsidiary Companies seeking directions for issue of C forms and transfer of local sales tax to the State of Orissa. The Company has been directed by the Honourable High Court of Orissa to approach the appropriate forum for redressal.

The Company has been legally advised that as per the settled cases, the Company is entitled for concessional sales tax rates as per Central Sales Tax and interest should be charged from recomputation order. However, necessary provision has been made and is included as Provision – Indirect Taxes and no further liability is expected on this account.

8. INCOME FROM PROPERTY DEVELOPMENT:

The Company in an earlier year entered into "Option for Development Rights" with Hinduja Reality Ventures Ltd., (HRVL), wherein HRVL has only the right to decide whether or not to exercise the option to acquire the development rights in respect of certain properties of the Company located at Hyderabad and Bengaluru. The offer of grant of the development rights in respect of the Bengaluru / Hyderabad properties was extended upto 30th June, 2009 and 31st December 2009 respectively. In consideration of the Company agreeing to keep such offer open, HRVL paid an amount of Rs. 1050 Lakhs in the previous year on a non refundable commitment amount, which has been included under "Income from Property Development" in the Profit and Loss Account of financial year 2008-09.

If the option for development is exercised by HRVL, Development Agreement for the respective properties would be entered with the Company, wherein the Company shall be entitled to share of gross sale proceeds (as determined in the agreement) realised from sale of buildings constructed on the said properties.

During the year, the option for development rights had expired and revised proposals are under consideration.

9. Land meant for property development situated at Bengaluru and Hyderabad had been revalued as at 31st March, 2008, based on a valuation by an approved valuer. The resultant surplus on such revaluation amounting to Rs. 183,896.69 Lakhs had been credited to Revaluation Reserve in the previous years. In view of steep recession in the realty sector, management has reassessed the valuation of the aforesaid properties as on 31st March, 2009 and based on the guidelines issued by the Registration and Stamps Department of Karnataka & Andhra Pradesh, the value of the subject lands has been reassessed and, the resultant surplus on revaluation amounted to Rs. 43799.82 Lakhs. The resultant write down aggregating to Rs. 140096.87 Lakhs has, in accordance with the requirement of Accounting Standard-10 "Accounting for Fixed assets" been debited to Revaluation Reserve in the previous year. During the year, the Company has entered into "Agreement to Sell" 4.75 acres of land to IDL Speciality Chemicals Limited. Since the aforesaid parcel of land is no longer meant for Property development, an amount of Rs. 1950.87 Lakhs has been withdrawn from Revaluation Reserve.

10. Loans and Advances, considered good include Rs. 813.89 Lakhs (31.03.2009 Rs. 813.89 Lakhs) in respect of Cenvat credit claimed on tippers and subsequently reversed on receipt of a show cause notice from the Excise Authorities. Management is of the view that the Company is entitled to avail such credits and the matter is being currently contested before the appropriate authorities.

11. Previous years figures have been regrouped / recast wherever necessary.