Notes to Accounts of Nalwa Sons Investments Ltd.

Mar 31, 2023

Provisions and Contingent Liabilities

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

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

k) Tax Expense

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

Current tax

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

Deferred tax

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

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

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

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

l) Financial Instruments

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

(i) Financial Assets

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

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

> Those measured at amortized cost.

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

Initial recognition and measurement

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

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

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

Subsequent measurement

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

> Financial assets at amortized cost

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

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

> Financial assets at fair value through profit or loss

Financial assets at amortized cost

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

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

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

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

Financial assets at fair value through profit or loss

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

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

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

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

Derecognition

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

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

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

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

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

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

Impairment of financial assets

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

> Financial assets measured at amortized cost;

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

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

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

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

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

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

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

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

(ii) Financial liabilities:Initial recognition and measurement

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

Subsequent measurement

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

> Financial liabilities at fair value through profit or loss

> Financial liabilities at amortized cost (loans and borrowings)

Financial liabilities at Fair value through profit or loss

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

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

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

Financial liabilities at Amortized cost

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

Derecognition

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

Offsetting of financial instruments

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

m) Earnings per Share

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

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

n) Fair value measurement

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

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

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

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

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

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

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

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

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

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

is directly or indirectly observable

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

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

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

3. Recent accounting pronouncements

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

Ind AS- 1- Presentation of Financials Statements-

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

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

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

Ind AS- 12 Income taxes

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

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Mar 31, 2018

1. Company Overview

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

Notes

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

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

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

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

2. Long-term investments

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

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

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

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

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

6. Segment Reporting

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

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

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

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

8. Earnings Per Share (EPS)

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

9. Provision on standard assets and doubtful debts

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

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

Note:-

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

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

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

10. Prior Year Comparatives

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

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Mar 31, 2016

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

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

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

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

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

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

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

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

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

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

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

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

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

i) Defined Benefit Plan

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

Notes:

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

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

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

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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

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Mar 31, 2014

1. Contingent Liabilities not provided for:

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

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

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

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

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

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

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

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

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

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

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

(ii) Detail of provision for Non Performing Assets

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

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

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

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

14 Related Parties Transactions

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

a) Parties where control exists :

Subsidiaries

Jindal Holdings Limited

Jindal Steel & Alloys Limited

Jindal Stainlelss ( Mauritius) Limited

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

b) Associates

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

c) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

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

---

Mar 31, 2013

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

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

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

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

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

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

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

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

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

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

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

11 Related Parties Transactions

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

a) Parties where control exists : Subsidiaries

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

b) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.

---

Mar 31, 2012

1. Contingent Liabilities not provided for:

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

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

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

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

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

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

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

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

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

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

9. Related Parties Transactions

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

a) Parties where control exists :

Subsidiaries

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

b) Key Management Personnel :

1. Sh. Mahender Kumar Goel Executive Director

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.

---

Mar 31, 2011

1. Contingent Liabilities not provided:

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

Current Previous

Year Year



(i) For Income Tax 511.36 461.73

matters against which company has preferred appeal

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

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

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

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

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

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

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

8 Related Parties Transactions

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

a) Parties where control exists : Subsidiaries

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

b) Key Management Personnel :

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

2. Sh. Bhartendu Harit Company Secretary

c) Associate

1. Brahmputra Capital & Financial Services Ltd.

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

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

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

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

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

---

Mar 31, 2010

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

Current Year Previous Year

(i) For Income Tax matters against which 461.73 186.59

company has preferred appeal

(ii) Liability towards Corporate Guarantee given . 3177.63 -

to Bank against credit facilities availed by other

Body Corporate

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

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

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

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

6 Related Parties Transactions

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

Subsidiaries

Jindal Holdings Limited

Jindal Steel & Alloys Limited

Jindal Stainlelss ( Mauritius) Limited

Massillon Stainless Inc. U.S.A.

b) Key Management Personnel:

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



c) Associate

1. Jindal Saw Limited

2. Brahmputra Capital & Financial Services Ltd.

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

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