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Notes to Accounts of Industrial Investment Trust Ltd.

Mar 31, 2018

1.1 Corporate Information

Industrial Investment Trust Limited (the Company) is a Public company incorporated under the provisions of the Companies Act, 1956. The Company is a Systemically Important Non-Deposit taking Non-Banking Financial Company registered with the Reserve Bank of India. The Company has been classified as an Investment Company.

The Company had issued 4,888,775 Global Depository Shares (''GDSs'') representing 9,777,550 equity shares of the Company of nominal value Rs. 10 each, aggregating to US $ 59.89 millions equivalent to Rs. 3,377,606,725 (including share premium of Rs. 3,279,831,225). The GDSs are listed on Luxembourg Stock Exchange.

(b) Rights, preferences and restrictions attached to equity shares

Equity shares of the Company are issued at a par value of Rs. 10 per share.

(i) Equity Shares represented by GDS - Holders of the GDSs will have no voting rights with respect to the underlying equity shares. The Depository will not exercise any voting rights with respect to the deposited shares. Other rights, preferences and restrictions are same as other equity shares.

(ii) Other Equity Shares - Each holder of other equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

* The Company does not have details of individual holders.

(d) The Company has not allotted any equity shares for consideration other than cash, bonus shares, nor have any shares been bought back during the period of five years immediately preceding the Balance Sheet date.

Notes :

# Details of terms of repayment and security provided: Kotak Mahindra Prime Limited Terms of Repayment:

Repayable in 35 Equated Monthly Installments (EMI) each of Rs. 76,133; Number of Installments outstanding as at 31st March, 2018: Nil (As at 31st March 2017: 4)

Security Provided:

Secured by hypothecation of the vehicle purchased from the loan.

* Investor Education and Protection Fund is being credited as and when due.

Footnote:

1. During the previous year the Company vide its Board resolution dated 8th March, 2017 and 9th February, 2017 consented to the variation of rights relating to 12% Non-Convertible Cumulative Redeemable Preference shares issued by IITL Projects Limited (IPL) and 10% Cumulative Redeemable Preference shares issued by World Resorts Limited (WRL) respectively by extending the period of redemption, increasing the premium on redemption, waiver of dividend till 31st March 2016 and reducing the coupon rate from 12% & 10% respectively to 0% w.e.f 1st April 2016. The nomenclature of the shares has also been changed from 12% Non-Convertible Cumulative Redeemable Preference shares and 10% Cumulative Redeemable Preference shares to 0% Non-Convertible Redeemable Preference shares and 0% Redeemable Preference shares respectively.

2) The financial statements of the IITL Projects Limited (“Subsidiary company”) have been prepared on a going concern basis, although the networth of the Company is negative as on 31st March, 2018. The Subsidiary company has through its joint ventures adequate unsold inventories which on sale is expected to generate profits based on, interalia, Management''s estimate of sale price and cost escalations. Considering the business plan and future cash flows of the various projects of the subsidiary company, management is of the opinion that, there is no dimunition in value of the investment and no provision is required to be made for the year ended 31/03/2018.

2. Employee Benefits

(a) Defined Contribution Plan

The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. The Company recognised Rs. 837,333 (previous year Rs. 809,654) for Provident Fund contributions in the Statement of Profit and Loss. (See ''Contribution to provident and other funds'' in Note 2.17)

(b) Defined Benefit Plan

The Company offers its employees defined-benefit plan in the form of a Gratuity Scheme. Benefits under the defined benefits plan are typically based on years of service and the employees compensation covering all regular employees. Commitments are actuarially determined at year-end. The benefits vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India.

vi a. The estimate of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment benefit obligations.

c. Expected rate of return on assets is determined based on the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

* Provision for has been made for Non-performing assets against these loans.

# During previous year the Company had waived off interest of Rs. 54,720,000 for the period from 1 April 2016 to 31 March 2017 on this loan as part of the One-time settlement (refer note 2.35).

Above disclosures exclude related party transactions in the nature of reimbursements.

Figures in brackets are for the previous year.

3. Details of leasing arrangements

The Company has taken an office premise and residential premises on operating lease. There are no restrictions imposed by the lease arrangement. There are no sub-leases. The lease rental expense recognised in the Statement of Profit and Loss for the year is Rs. 5,627,180 (previous year: Rs. 4,550,700) [net of recoveries Rs. 624,000(previous year: Rs. 732,000)].

Notes:

1. The above maturity pattern of assets and liabilities has been prepared by the Company after taking into consideration structural liquidity guidelines for assets-liabilities management (ALM) system in non-banking financial companies issued by RBI, best practices and best estimate of the Assets-Liability Committee with regard to the timing of various cash flows, which has been relied upon by the auditors.

2. Additional disclosures in term of Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2016, are provided in Annexure-I and Annexure-II.

4. (e) Details of financing of parent company products -NA

5. (f) Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceeded by the applicable NBFC -NIL

6. (g) Unsecured Advances- NA

7. The Company is engaged in Investment activities and in Insurance business undertaken through the joint venture company FGILICL. Hence there are two reportable business segments as per Accounting Standard-17 Segment Reporting. The Company operates only in one geographical segment i.e. India. The segment information has been provided in the consolidated financial statements.

8. The Company had entered into Share Purchase Agreement with Pantaloon Retail India Limited (now known as Future Retail Limited) to acquire 22.5% of its equity stake in Future Generali India Life Insurance Company Ltd (FGILICL). Pursuant to approval received from CCI, RBI & IRDA the transaction was consummated on 17th December 2013 for a total consideration of Rs. 340 crores. FGILICL became a joint venture of the Company.

In August 2016 and December 2016 FGILICL came out with Rights Issues of 30,000,000 and 25,508,850 equity shares respectively of Rs. 10 each at par aggregating to Rs. 300,000,000 and Rs. 255,088,500, in the ratio of 10:484 and 21:1220 respectively. The Company did not subscribe to both the rights issues. The total subscription amount received from the other shareholders was Rs. 299,414,160 equivalent to 29,941,416 equity shares and Rs. 255,088,500 equivalent to 25,508,850 equity shares. The resultant effect is, the Company''s stake in FGILICL reduced to 22.05% after the first rights issue and 21.67% after the second rights issue.

Subsequent to the year end, in April 2017, August 2017 and February 2018 FGILICL came out with three rights issue of 75,372,514, 99,997,829 and 55,000,000 equity shares respectively of Rs. 10 each at par aggregating to Rs. 753,725,140, 999,978,290 and 550,000,000. The Company did not subscribe to these rights issue and the resultant effect is, the Company''s stake in FGILICL reduced from 21.67 to 18.80% after these three rights issue.

The management views the investment in positive light as insurance industry plays a crucial role in the growth and development of the overall economy. There is a huge potential to be tapped across India for life insurance. Life Insurance Industry has a long gestation period and the Company views this as a long term investment. Having regard to the projections and future business plan provided by FGILICL to the Company and based on management''s assessment of the same, the management of the Company is of the view that, although the net-worth of FGILICL as at 31st March 2018 has substantially eroded, there is no diminution other than temporary in the value of investment of the Company in FGILICL as at 31st March 2018.

9. There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). The identification of vendors as a “Supplier” under the Act has been done on the basis of the information to the extent provided by the vendors to the Company. This has been relied upon by the auditors.

10. The amount of Rs. 19,869,855 disclosed as Contingent Liability (See note 2.20(i)(a)) is towards the disputed property tax levied by MMC based on enhanced ratable value for the period 1st April 2007 to 31st March 2010 in respect of the Company''s Investment Property in Atlanta Building, Nariman Point.

During the financial year 2015-16, the Company sold four units of the said property. Upon sale of said units the Company was required to deposit Rs. 10,028,864 with Atlanta Premises Co-operative Society Limited (the society) towards part of the disputed property tax related to units sold.

During the current year, the Company has sold one unit of the said property. Upon sale of said unit the Company was required to deposit Rs. 4,678,352 with Atlanta Premises Co-operative Society Limited (the society) towards part of the disputed property tax related to unit sold.

The total amount of Rs. 14,707,216 has been placed by the society in Fixed Deposits with Bank.

The disputed property tax issue is still subjudice and the order is awaited from the Mumbai High court. Pending the outcome of the matter, out of abundant caution, the Company has made a provision of Rs. 5,000,000 in respect of the units sold.

However, the total amount of Rs. 24,869,855 is fully recoverable from the ex-Licensee as per the Leave and License Agreements entered by the Company with them from time to time.

11. In its meeting held on 8th March, 2017, the Board of directors approved the proposal of One-Time Settlement (“OTS”) with IITL Projects Limited (IPL), the subsidiary company, in relation to unsecured outstanding loan given along with the outstanding interest thereon, as under :-

(i) Loan of Rs. 36.48 crores along with outstanding interest as on 31st March, 2016 amounting to Rs. 3.61 crores (Net of TDS) aggregating Rs. 40.09 crores would be adjusted against the transfer of assets of IPL namely 5,000,000 Zero % Non-Convertible Redeemable Preference Shares of World Resorts Limited and 10,849,120 Zero% Non-Convertible Redeemable Preference Shares of Capital Infraprojects Private Limited based on its value determined by independent valuers amounting to Rs. 28.33 Crores and Rs. 11.76 crores respectively (in favour of the Company).

(ii) The Company to waive off Interest accrued for the period April, 2016 to March, 2017 amounting to Rs. 5.47 Crores.

(iii) IPL to agree to recompense the Company in one or more installments, as may be mutually agreed between the parties at the relevant time the interest amount of Rs. 5.47 Crores which has been waived off as part of One Time Settlement in case IPL turns profitable in future and has adequate cash flows.

The above proposal was approved by the members of IPL and those of the Company on 18th April, 2017 and 21st April, 2017 respectively. Subsequently the company entered into OTS agreement on 18th May, 2017 with IPL to transfer the said shares in name of the Company.

12. Pursuant to the approval received from the shareholders and resolution passed at the 84th Annual General Meeting of the Company, the unsecured loan of Rs. 23,19,87,365/- granted to IITL Nimbus the Express Park View (EPV-II) has been restructured according to the following terms and condition.

a) Moratorium of four years for a period beginning October 01, 2017 and ending on September 30, 2021 on repayment of outstanding loan of Rs. 23,19,87,365/-

b) Interest outstanding upto March 31, 2016 amounting to Rs. 1,57,64,094/- to be converted into Funded Interest Term Loan (FITL) and a Moratorium to be granted for its repayment and the interest thereon for a period of 4 years ending on September 30, 2021. The rate of interest to be charged on FITL will be 12%.

c) Interest outstanding from April 01, 2016 upto September 30, 2017 amounting to Rs. 5,22,44,826/- to be waived off and interest rate change from @15% to @12% with Recompense Clause.

d) Promoters'' contribution amounting to Rs. 3,06,60,032/- has been brought jointly by the Promoters in EPV II i.e. to the extent of 20% of the total sacrifice amount on account of Diminution in Fair Value of Loan and waiver of interest; and has given Corporate Guarantee, to the extent of outstanding loan including FITL amounting to Rs. 24,77,51,459/- and accumulated interest thereon to be calculated (On Loan & FITL) upto the end of moratorium period or repayment whichever is earlier from the Promoters'' of EPV II in compliance with the relevant provisions of the Prudential Norms of the Reserve Bank of India pertaining to Restructuring of Loans, as amended from time to time.

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


Mar 31, 2016

1. The Company is engaged in Investment activities and in Insurance business undertaken through the joint venture company FGILICL. Hence there are two reportable business segments as per Accounting Standard-17 Segment Reporting. The Company operates only in one geographical segment i.e. India. The segment information has been provided in the consolidated financial statements.

2. The Company had entered into Share Purchase Agreement with Pantaloon Retail India Limited (now known as Future Retail Limited) to acquire 22.5% of its equity stake in Future Generally India Life Insurance Company Ltd (FGILICL). Pursuant to approval received from CCI, RBI & IRDA the transaction was consummated on 17th December 2013 for a total consideration of Rs. 340 crores. FGILICL became a joint venture of the Company.

The management views the investment in positive light as insurance industry plays a crucial role in the growth and development of the overall economy. There is a huge potential to be tapped across India for life insurance. Life Insurance Industry has a long gestation period and the Company views this as a long term investment. Having regard to the projections and future business plan provided by FGILICL to the Company and based on management''s assessment of the same, the management of the Company is of the view that, although the net-worth of FGILICL as at 31st March 2016 has substantially eroded, there is no diminution other than temporary in the value of investment of the Company in FGILICL as at 31st March 2016.

3. Pursuant to the enactment of the 2013 Act, the Company has, effective 1st April 2014, reviewed and revised the estimated useful life of its fixed assets, in accordance with the provisions of Schedule II to the 2013 Act. The carrying amount of the assets as on that date has been depreciated over the remaining useful life of the assets as per Schedule II of the 2013 Act. Consequently, depreciation for the previous year was higher by Rs. 431,067. Further, an amount of Rs. 181,804 (net of deferred tax of Rs. 93,615) was recognized in the Surplus in the statement of profit and loss, where the remaining useful life of such assets was Nil as at 1st April, 2014 in line with the provisions of Schedule II to the 2013 Act.

4 There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). The identification of vendors as a "Supplier" under the Act has been done on the basis of the information to the extent provided by the vendors to the Company. This has been relied upon by the auditors.

5. The amount of Rs. 19,869,855 disclosed as Contingent Liability (See note 2.19(i)(a)) is towards the disputed property tax levied by MMC based on enhanced ratable value for the period 1st April 2007 to 31st March 2010 in respect of the Company''s Investment Property in Atlanta Building, Nariman Point.

During the financial year 2015-16, the Company sold four units of the said property. Upon sale of said units the Company was required to deposit Rs. 10,028,864 with Atlanta Premises Co-operative Society Limited (the society) towards part of the disputed property tax related to units sold. The said amount of Rs. 10,028,864 has been placed by the society in Fixed Deposits with Bank. The disputed property tax issue is still subjudice and the order is awaited from the Mumbai High court. Pending the outcome of the matter, out of abundant caution, the Company has made a provision of Rs. 5,000,000 in respect of the units sold.

However, the total amount of Rs. 24,869,855 is fully recoverable from the ex-Licensee as per the Leave and License Agreements entered by the Company with them from time to time.


Mar 31, 2015

(A) Rights, preferences and restrictions attached to equity shares

Equity shares of the Company are issued at a par value of Rs. 10 per share.

(i) Equity Shares represented by GDS - Holders of the GDSs will have no voting rights with respect to the underlying equity shares. The Depository will not exercise any voting rights with respect to the deposited shares. Other rights, preferences and restrictions are same as other equity shares.

(ii) Other Equity Shares - Each holder of other equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

(B) Rights, preferences and restrictions attached to preference shares

The Preference Shares shall rank, for capital and dividend (including all dividends undeclared upto the commencement of winding up) and for repayment of capital in a winding up pari pasu inter se and in priority to the Equity Shares of the Company, but shall not confer any further or other right to participate either in profits or assets.

2.1 Contingent liabilities and commitments not provided for

Particulars As at As at 31st March,2015 31st March,2014

(i) Contingent liabilities:

(a) Claims against the Company not acknowledged as debt

- Disputed income-tax matters in appeal 13,101,449 13,101,449

- Disputed wealth-tax matter in appeal 3,250,246 3,250,246

- Disputed property tax levied by Mumbai Municipal Corporation based on enhanced ratable value for the period 1st April 2007 to 31st March 2010 in respect of the Company''s Investment Property; the Co- operative Society of the Investment Property 24,869,855 24,869,855

is acting as an intervener in a petition with the Supreme Court on the matter. The said disputed property tax is recoverable from the ex-Licensee as per the Leave and License Agreements entered into between them and the Company.

In respect of above items, outflow of resources would depend upon the outcome of the appeal/petition.

(b) Guarantees

Guarantees given to banks on behalf of associate company 253,400,000 253,400,000

The Company has received counter-guarantees from other parties amounting to Rs. 190,050,000 (previous year Rs. 190,050,000) against the aforesaid guarantees given by the Company to the banks. The outstanding amount of loan availed by the associate company as at 31st March 2015 is Rs. 142,563,425 (as at 31st March 2014Rs.180,564,848).

(ii) Commitments:

(a) Other Commitments

Non-cancellable contractual commitments - See Note 2.25

(a) Defined Contribution Plan

The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. The Company recognised Rs. 673,457 (previous year Rs. 628,040) for Provident Fund contributions in the Statement of Profit and Loss. (See ''Contribution to provident and other funds'' in Note 2.16)

(b) Defined Benefit Plan

The Company offers its employees defined-benefit plan in the form of a Gratuity Scheme. Benefits under the defined benefits plan are typically based on years of service and the employees compensation covering all regular employees. Commitments are actuarially determined at year-end. The benefits vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India.

vi a. The estimate of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment benefit obligations.

c. Expected rate of return on assets is determined based on the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

2.2 Related party disclosures:

(i) Names of related parties:

(a) Names of related parties and nature of related party relationship where control exists are as under:

Subsidiary companies:

IIT Investrust Limited

IITL Projects Limited

IIT Insurance Broking and Risk Management Private Limited

IITL Marketing Management Private Limited (Formerly IIT Media and Entertainment Private Limited upto 19th Nov 2014)

IITL Corporate Insurance Services Private Limited (w.e.f. 22nd Jan 2014)

Joint venture :

Future Generali India Life Insurance Company Limited (w.e.f. 17th December, 2013)

(b) Names of other related parties and nature of relationship:

Key management personnel : Dr. B. Samal, Executive Chairman

Associate company : World Resort Limited Entities over which the company can exercise significant influence :

IITL Nimbus The Express Park View - a partnership firm

IITL Nimbus The Palm Village - a partnership firm

IITL Nimbus The Hyde Park Noida -a partnership firm

Capital Infraprojects Private Limited

MRG Hotels Limited

2.3 Details of leasing arrangements

The Company has taken an office premise and residential premise on operating lease. There are no restrictions imposed by the lease arrangement. There are no sub-leases. The lease rental expense recognised in the Statement Profit and Loss for the year is Rs. 2,942,700 (previous year: Rs. 1,824,367). [net of recoveries Rs. 840,000 (previous year: Rs. 1,000,000)]

The future minimum lease payments under non-cancellable operating leases for each of the following periods:

Note: The Company has given unsecured short term loans to its subsidiary and joint ventures of that subsidiary engaged in real estate business of construction of residential complexes which are not covered by the above mentioned categories. The outstanding balance of such loans is Rs. 680,869,727 (Previous year Rs. 650,000,000). The Company also has long-term equity investments in the said subsidiary of Rs. 136,123,073 (Previous year Rs. 136,123,073).

Note:

The above maturity pattern of assets and liabilities has been prepared by the Company after taking into consideration structural liquidity guidelines for assets-liabilities management (ALM) system in non-banking financial companies issued by RBI, best practices and best estimate of the Assets-Liability Committee with regard to the timing of various cash flows, which has been relied upon by the auditors.

2.4 The Company is engaged in Investment activities and in Insurance business undertaken through the joint venture company FGILICL. Hence there are two reportable business segments as per Accounting Standard-17 Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006. The Company operates only in one geographical segment i.e. India. The segment information has been provided in the consolidated financial statements.

2.5 The Company had entered into Share Purchase Agreement with Pantaloon Retail India Limited (now known as Future Retail Limited) to acquire 22.5% of its equity stake in Future Generali India Life Insurance Company Ltd (FGILICL). Pursuant to approval received from CCI, RBI & IRDA the transaction was consummated on 17th December 2013 for a total consideration of Rs. 340 crores. FGILICL became a joint venture of the Company.

The management views the investment in positive light as insurance industry plays a crucial role in the growth and development of the overall economy. There is a huge potential to be tapped across India for not only life but also micro insurance. Life Insurance Industry has a long gestation period and the Company views this as a long term investment. Having regard to this and the projections made by FGILICL, the management of the Company is of the view that, although the networth of FGILICL as at 31st March 2015 has substantially eroded, there is no diminution other than temporary in the value of investment of the Company in FGILICL as at 31st March 2015.

2.6 Pursuant to the enactment of the Companies Act 2013 (the ''Act''), the Company has, effective 1st April 2014, reviewed and revised the estimated useful life of its fixed assets, in accordance with the provisions of Schedule II to the Act. The carrying amount of the assets as on that date has been depreciated over the remaining useful life of the assets as per Schedule II of the Companies Act, 2013. Consequently, depreciation for the year is higher by Rs. 431,067. Further, an amount of Rs. 181,804 (net of deferred tax of Rs. 93,615) has been recognized in the Surplus in the statement of profit and loss, where the remaining useful life of such assets is Nil as at 1st April, 2014 in line with the provisions of Schedule II to the Act.

2.7 The Company is in the process of appointing a Chief Financial Officer as key managerial personnel.

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


Mar 31, 2014

1.1 Corporate Information

Industrial Investment Trust Limited (the Company) is a Public company incorporated under the provisions of the Companies Act, 1956. The Company is a Systemically Important Non-Deposit taking Non-Banking Financial Company registered with the Reserve Bank of India. The Company has been classified as an Investment Company.

2.1 Contingent liabilities and commitments not provided for

Particulars As at As at 31st March 31st March 2014 2013 (i) Contingent liabilities:

(a) Claims against the Company not acknowledged as debt

- Disputed income-tax matters in appeal 1,31,01,449 1,18,63,325

- Disputed wealth-tax matter in appeal 32,50,246 32,50,246 In respect of above items, outflow of resources would depend upon the outcome of the appeal.

(b) Guarantees

Guarantees given to banks on behalf of associate company 25,34,00,000 25,34,00,000

The Company has received counter-guarantees from other parties amounting to Rs. 190,050,000 (previous year Rs. 190,050,000) against the aforesaid guarantees given by the Company to the banks.

(ii) Commitments:

(a) Other Commitments

Non-cancellable contractual commitments - See Note 2.24

2.3 Employee Benefits

(a) Defined Contribution Plan

Contribution to defined contribution plan, recognised in the Statement of Profit and Loss under Contribution to provident fund and other funds in Note 2.16 for the year are as under:

(b) Defined Benefit Plan

The Company offers its employees defined-benefit plan in the form of a Gratuity Scheme. Benefits under the defined benefits plan are typically based on years of service and the employees compensation covering all regular employees. Commitments are actuarially determined at year-end. The benefits vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. The Company makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India.

Note: The Company is unable to obtain the details of major category of plan assets from the insurance company (Life Insurance Corporation of India) and hence the disclosure thereof is not made.

vi a. The estimate of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment benefit obligations.

c. Expected rate of return on assets is determined based on expectation of the average long term rate of return expected on

2.4 Related party disclosures:

(i) Names of related parties:

(a) Names of related parties and nature of related party relationship where control exists are as under: Subsidiary companies:

NT Investrust Limited

IITL Projects Limited

IIT Insurance Broking and Risk Management Private Limited

IIT Media and Entertainment Private Limited

Joint venture:

Future Generali India Life Insurance Company Limited (w.e.f. 17th December, 2013)

(b) Names of other related parties and nature of relationship where there are transactions with related parties: Key management personnel: Dr. B. Samal, Executive Chairman

Associate company: World Resort Limited (w.e.f. 28th August, 2012)

Entities over which the company

can exercise significant influence:

IITL Nimbus The Express Park View - a partnership firm

IITL Nimbus The Palm Village - a partnership firm

IITL Nimbus The Hyde Park Noida -a partnership firm

Capital Infraprojects Private Limited

MRG Hotels Limited (w.e.f. 28th August, 2012)

2.5 Details of leasing arrangements

The Company has taken an office premise and residential premise on operating lease. There are no restrictions imposed by the lease arrangement. There are no sub-leases. The lease rental expense recognised in the Statement Profit and Loss for the year is Rs.1,824,367 (previous year: Rs.962,700). [net of recoveries Rs.1,000,000 (previous year: Rs. 1,320,000)]

The future minimum lease payments under non-cancellable operating leases for each of the following periods:

Note: The Company has given unsecured short term loans to its subsidiary and joint ventures of that subsidiary engaged in real estate business of construction of residential complexes which are not covered by the above mentioned categories. The outstanding balance of such loans is Rs. 650,000,000 (Previous year Rs. 527,500,000).

Note:

The above maturity pattern of assets and liabilities has been prepared by the Company after taking into consideration structural liquidity guidelines for assets-liabilities management (ALM) system in non-banking financial companies issued by RBI, best practices and best estimate of the Assets-Liability Committee with regard to the timing of various cash flows, which has been relied upon by the auditors.

2.27 The Company is engaged in Investment activities and in Insurance business undertaken through the joint venture company FGILICL. Hence there are two reportable business segments as per Accounting Standard-17 Segment Reporting notified by the Companies (Accounting Standards) Rules, 2006. The Company operates only in one geographical segment i.e. India.

The segment information has been provided in the consolidated financial statements.

2.28 The Company had entered into Share Purchase Agreement with Pantaloon Retail India Limited (now known as Future Retail Limited) to acquire 22.5% of its equity stake in Future Generali India Life Insurance Company Ltd (FGILICL). Pursuant to approval received from CCI, RBI & IRDA the transaction was consummated on December 17, 2013 for a total consideration of? 340 crores. FGILICL has now become a joint venture of the Company.

The management views the investment in positive light as insurance industry plays a crucial role in the growth and development of the overall economy. There is a huge potential to be tapped across India for not only life but also micro insurance. Life Insurance Industry has a long gestation period and the Company views this as a long term investment. Having regard to this and the projections made by FGILICL, the management of the Company is of the view that, although the networth of FGILICL as at March 31, 2014 has substantially eroded, there is no diminution other than temporary in the value of investment of the Company in FGILICL as at March 31, 2014.

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


Mar 31, 2013

1.1(a) The Company has taken an offce premise on operating lease. The lease term is on the basis of the agreement entered into with the landlord. There are no restrictions imposed by the lease arrangement. There are no sub leases. The lease rental expense recognised in the Statement Proft and Loss for the year Rs. 962,700 (previous year: Rs. 1,520,015). [net of recoveries Rs. 1,320,000 (previous year: Rs. 2,683,694)]

The future minimum lease payments under non-cancellable operating leases for each of the following periods:

1.2 Contingent liabilities not provided for in respect of

(a) Taxation

Particulars As at As at 31st March, 2013 31st March, 2012

(a) Disputed income-tax matters in appeal 11,863,325 11,863,325

(b) Disputed wealth-tax matter in appeal 3,250,246 3,250,246

In respect of above items, outfow of resources would depend upon the outcome of the appeal.

(b) Guarantees

Guarantees given to banks on behalf of third party. 253,400,000 353,400,000

The Company has received counter-guarantees from other parties amounting to Rs. 190,050,000 against the aforesaid guarantees given by the Company to the banks.

1.3 Related party disclosures:

(i) Names of related parties:

(a) Names of related parties and nature of related party relationship where control exists are as under:

Subsidiary companies: IIT Investrust Limited

IITL Projects Limited

IIT Insurance Broking and Risk Management Private Limited IIT Media and Entertainment Private Limited

Associate company: World Resort Limited (w.e.f. 28th August, 2012)

(b) Names of other related parties and nature of relationship where there are transactions with related parties: Key management personnel: Dr. B. Samal, Executive Chairman

Entities over which IITL Projects Limited,

a subsidiary company, can exercise

signifcant infuence: IITL Nimbus The Express Park View - a partnership frm

IITL Nimbus The Palm Village - a partnership frm IITL Nimbus The Hyde Park Noida - a partnership frm Captial Infraprojects Private Limited

1.4 Since the Company has disclosed segment information in the consolidated accounts the same have not been disclosed in the aforesaid fnancial statements in terms of Para. 4 of Accounting Standard (AS) 17 on Segment Reporting as notifed under The Companies (Accounting Standards) Rules, 2006.

1.5 Previous year''s fgures have been regrouped/reclassifed wherever necessary to correspond with the current year classifcation/ disclosure.


Mar 31, 2012

1. Defined Contribution Plan:

The eligible employees of the Company are entitled to receive post employment benefits in respect of provident and family pension fund, in which both employees and the Company makes monthly contributions at a specified percentage of the employees' eligible salary (currently 12% of employees' eligible salary). The contributions are made to Employees Provident Fund Organisation. Provident Fund and Family Pension Fund are classified as Defined Contribution Plans as the Company has no further obligation beyond making the contribution. The Company's contributions to Defined Contribution Plan are charged to Statement of Profit and Loss as incurred.

2. Defined Benefit Plans:

i. Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company makes contribution to LIC of India based on an independent actuarial valuation made at the year-end. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

ii. Compensated absences

The Company provides for the encashment of leave or leave with pay subject to certain rules. The Employees are entitled to accumulate leave subject to certain limits for future encashment/availment. The Company makes provision for compensated absences based on an actuarial valuation carried out at the end of the year. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

3. Contingent liabilities not provided for in respect of

(a) Taxation

Particulars As at As at 31st March, 2012 31st March, 2011

(a) Disputed income-tax matters in appeal 11,863,325 17,120,115

(b) Disputed wealth-tax matter in appeal 3,250,246 3,250,246

In respect of above items, outflow of resources would depend upon the outcome of the appeal.

Guarantees given to banks on behalf of third party. 353,400,000 -

(c) Intial Margin on Equity Stock Futures paid in cash as at 31st March, 2012 Rs. Nil (previous year Rs. 1,050,000)

4. Since the Company has disclosed segment information in the consolidated accounts the same have not been disclosed in the aforesaid financial statements in terms of Para. 4 of Accounting Standard (AS) 17 on Segment Reporting as notified under The Companies (Accounting Standards) Rules, 2006.

5. The Revised Schedule VI has become effective from 1st April, 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 classification/disclosure.


Mar 31, 2011

1) Contingent liabilities not provided for in respect of:

Particulars 31st March, 2011 31st March, 2010

Rs. Rs.

(a) Disputed income-tax matters in appeal. 17,120,115 24,684,042

(b) Disputed wealth-tax matter in appeal. 3,250,246 3,250,246 In respect of above items, outflow of resources would depend upon the outcome of the appeal.

2) Related party disclosures:

(i) (a) Names of related parties and nature of related party relationship where control exists are as under:

Holding Company : N. N. Financial Services Private Limited

Subsidiary companies : IIT Investrust Limited

IITL Projects Limited (Formerly known as Indo Green Projects Limited)

IIT Insurance Broking and Risk Management Private Limited

IIT Media and Entertainment Private Limited. (w.e.f. 15.04.2010)

(b) Names of other related parties and nature of relationship where there are transactions with related parties:

Key management personnel : Dr. B. Samal, Executive Chairman

Company in which directors have significant influence : Nimbus Projects Limited (Formerly known as NCJ International Limited)

3) There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose. This has been relied upon by the auditors.

4) The Company has taken an office premise on operating lease. The lease term is on the basis of the agreement entered into with the landlord. The agreement provides for increase in rent. There are no restrictions imposed by the lease arrangement. There are no sub leases. The lease rental expense recognised in the Profit and Loss Account for the year Rs.1,497,726/- (previous year: Rs.759,000). [net of recoveries Rs.2,607,186/- (previous year: Rs.1,200,000)]

vi a. The estimates of rate of escalation in salary considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment benefit obligations.

c. Expected rate of return on assets is determined based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

viii The above information is as certified by the actuary and relied upon by the auditors.

(b) Initial margin on Equity Stock Futures has been paid in cash.

(5) Since the Company has disclosed segment information in the consolidated accounts the same have not been disclosed in the aforesaid financial statements in terms of Para. 4 of Accounting Standard (AS) 17 on Segment Reporting as notified under The Companies (Accounting Standards) Rules, 2006.

(6) Out of total 10,000,000 (previous year: 10,000,000) Equity shares, 5,112,960 (previous year: 5,112,960) Equity shares are held by the Holding Company N. N. Financial Services Private Limited.

(7) The figures relating to the previous year have been regrouped wherever necessary.


Mar 31, 2010

31st March, 31st March, 2010 Rs. 2009 Rs.

(1) Contingent liabilities not provided for in respect of

(a) Disputed income-tax matters in appeal. 24,684,042 24,684,042

(b) Disputed wealth-tax matter in appeal. 3,250,246 3,250,246

In respect of above items, outflow of resources would depend upon the outcome of the appeal.

(2) Basic earnings per share has been calculated by dividing profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The Company has not issued any potential equity shares and accordingly, the basic earnings per share and diluted earnings per share are the same. Values used in calculating earnings per share are as under

(3) Related party disclosures:

(i) (a) Names of related parties and nature of related party relationship where control exists are as under:

Subsidiary companies : IIT Investrust Limited

Indo Green Projects Limited

IIT Insurance Broking and Risk Management Pvt. Limited

(b) Names of other related parties and nature of relationship where there are transactions with related parties:

Key management personnel : Dr. B. Samal, Executive Chairman

Companies in which directors have significant influence: N.N. Financial Services Pvt. Limited.

NCJ international Limited

(4) There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006;this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose. This has been relied upon by the auditors.

vi. a. The estimates of rate of escalation in salary considered in actuarial valuation take into accountinflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

b. The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of the post-employment benefit obligations.

c. Expected rate of return on assets is determined based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

Accounting Standard (AS) 15 (Revised) on Employee Benefits notified by The Companies (Accounting Standards) Rules, 2006 requires the disclosure of the above information for the past four years; however the information is available only since the date of implementing the Standard.

viii The above information is as certified by the actuary and relied upon by the auditors.

(10) Since the Company has disclosed segment information in the consolidated accounts the same have not been disclosed in the aforesaid financial statements in terms of para. 4 of Accounting Standard (AS) 17 on Segment Reporting as notified under The Companies (Accounting Standards) Rules, 2006.

(5) The figures relating to the previous year have been regrouped wherever necessary.

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