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Notes to Accounts of Nalwa Sons Investments Ltd.

Mar 31, 2015

1. Contingent Liabilities not provided for:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

13 Related Parties Transactions

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

a) Parties where control exists :

Subsidiaries :

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

b) Associates :

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

Notes:

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

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

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

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


Mar 31, 2014

1. Contingent Liabilities not provided for:

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

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

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

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

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

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

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

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

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

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

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

(ii) Detail of provision for Non Performing Assets

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

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

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

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

14 Related Parties Transactions

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

a) Parties where control exists :

Subsidiaries

Jindal Holdings Limited

Jindal Steel & Alloys Limited

Jindal Stainlelss ( Mauritius) Limited

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

b) Associates

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

c) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

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


Mar 31, 2013

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

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

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

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

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

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

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

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

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

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

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

11 Related Parties Transactions

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

a) Parties where control exists : Subsidiaries

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

b) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.


Mar 31, 2011

1. Contingent Liabilities not provided:

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

Current Previous

Year Year



(i) For Income Tax 511.36 461.73

matters against which company has preferred appeal

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

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

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

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

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

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

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

8 Related Parties Transactions

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

a) Parties where control exists : Subsidiaries

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

b) Key Management Personnel :

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

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.

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

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

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

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

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


Mar 31, 2010

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

Current Year Previous Year

(i) For Income Tax matters against which 461.73 186.59

company has preferred appeal

(ii) Liability towards Corporate Guarantee given . 3177.63 -

to Bank against credit facilities availed by other

Body Corporate

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

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

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

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

6 Related Parties Transactions

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

Subsidiaries

Jindal Holdings Limited

Jindal Steel & Alloys Limited

Jindal Stainlelss ( Mauritius) Limited

Massillon Stainless Inc. U.S.A.

b) Key Management Personnel:

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



c) Associate

1. Jindal Saw Limited

2. Brahmputra Capital & Financial Services Ltd.

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

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

 
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