Notes to Accounts of Pilani Investment and Industries Corporation Ltd.

Mar 31, 2018

1 Segment Reporting :

The company has only one business segment viz. investment and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further

2. Related Party Disclosures

Names of related parties and related party relationship

a. Name of the related parties where control exists :

Subsidiary Companies PIC Properties Limited

PIC Realcon Limited

Atlas Iron & Alloys Limited (in Liquidation)

b. Names of other related parties :

Associate Company_Century Textiles & Industries Limited_

Key Management Personnel Shri R.P.Pansari -CEO (Managing Director upto 06.05.2017)

Shri N.K.Baheti -(CFO)

_Shri R.S.Kashyap -(Company Secretary)_

Related Party Transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant period: _ _

3 Based on the information’s/documents available with the Company, no creditor is covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provisions / payments have been made by the company to such creditors, if any, and no disclosures are made in these accounts.

4 Leases :

Operating Lease : Company as a Lessee

The office premises is obtained on operating lease. The lease term is for 1-3 years and renewable for further period either mutually or at the option of the company. There is no escalation clause in the lease agreements. There are no restrictions imposed by lease arrangements. The lease is cancellable. _ _

Operating Lease : Company as a Lessor

The company has leased certain office space on operating leases. The lease term is for 1-3 years and thereafter renewable as per mutual agreement. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

5 Minimum Alternative Tax (MAT) Credit entitlement of Rs, 2898.22 lakhs (after adjusting utilised during the current year Rs, 43.08 lakhs), has not been recognized by the Company in the absence of convincing evidence to claim the above tax credit in future years.

6 The Company has applied to the Reserve Bank of India (“RBI”) for its conversion from Nonbanking Financial Company to Core Investment Company and the approval from RBI is awaited.

7 Previous year’s figures including those in brackets have been regrouped / rearranged where necessary to confirm to the current year’s figures.

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Mar 31, 2017

1 Capital & Other Commitments :

a) Uncalled liability on partly paid Shares held as Investments Rs, 0.003 Millions 0.003 Millions )

2 Contingent Liabilities :

Income Tax demands for earlier years aggregating to Rs, 16.33 Millions 24.73 Millions) disputed by the Company.

3. The Company has disputed the claim for recovery of Rs, 1.54 Million plus interest from 1^st November, 1973 made by State Bank of India, Bombay in a suit filed against the company on the basis of guarantee given in respect of the advances made to Hind Cycles Limited against their Cash Credit Account by the said Bank. Against the above claim, Rs, 6.93 Millions have been deposited with Debts Recovery Appellate Tribunal pursuant to Hon’ble Bombay High Court Order. No provision against the above claim has been made in the accounts since the matter is pending with the Debt Recovery Appellate Tribunal as per the Hon’ble Bombay High Court order.

B. Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme is not funded.

The following tables summarizes the components of net benefit expenses recognized in Statement of Profit & Loss and the amount recognized in the Balance Sheet for the respective plan.

4. Segment Reporting :

The company has only one business segment viz. investment and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 “Segment Reporting” is required.

5. Based on the information’s/documents available with the company, no creditor is covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provisions / payments have been made by the company to such creditors, if any, and no disclosures are made in these accounts.

6. Leases :

Operating Lease : Company as a Lessee

The office premises is obtained on operating lease. The lease term is for 1-3 years and renewable for further period either mutually or at the option of the company. There is no escalation clause in the lease agreements. There are no restrictions imposed by lease agreements. The leases are cancellable. _ _

Operating Lease : Company as a Less or

The company has leased certain office on operating leases. The lease term is for 1-3 years and thereafter renewable . There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

7. Minimum Alternative Tax (MAT) Credit entitlement of Rs, 294.13 Millions (after adjusting utilized during the current year Rs, 19.73 Millions), has not been recognized by the Company in the absence of convincing evidence to claim the above tax credit in future years.

8. The Company has applied to the Reserve Bank of India (“RBI”) for its conversion from Nonbanking Financial Company to Core Investment Company and the approval from RBI is awaited.

9 Additional disclosure required by NBFC-ND-SI in terms of the notification issued by RBI vide circular no. RBI/DNBR/2016-17/45 DNBR.PD.008/03.10.119/2016-17 dated September 01, 2016 are as follows:

_Particulars_ _Remarks_

1. Capital to Risk (Weighted) Assets Ratio Refer Note No. 29 (B)

2. Investments Refer Note No. 29 (C)

3. Derivatives The Company has no transaction or exposure in

Derivatives in the current and previous year.

i) Forward Rate Agreement / Interest Rate Swap

ii) Exchange Traded Interest Rate (IR) Derivatives The Company has no unheeded foreign currency

iii) Disclosure on Risk Exposure in Derivatives exposure as on March 31, 2017 and March 31, 2016

4. Disclosures relating to Securitization

i) Information duly certified by the SPV’s auditors obtained The Company does not have any outstanding amount by the originating NBFC from the SPV. of securitized assets in the current year and previous year end. Hence, no such information is duly certified by the SPV’s auditors obtained.

ii) Details of Financial Assets sold to Securitization / Recons- The Company has not sold financial assets to securitis- truction Company for Asset Reconstruction. anion or reconstruction company for asset reconstruction during the current and previous year.

iii) Details of Assignment transaction undertaken by NBFC’s The Company has not undertaken any assignment transactions during the current and previous year.

5. Details of Non Performing financial assets purchased / sold

i) Details of Non Performing financial assets purchased : The Company has not purchased / sold Non Performing financial assets during the current and previous year.

ii) Details of Non Performing financial assets sold :

6. Asset Liability Management Maturity pattern of certain items Refer Note No. 29 (E) of Assets and Liabilities

7. Exposures

i) Exposure to Real Estate Sector The Company has no Exposure to Real Estate directly or indirectly.

ii) Exposure to Capital Market The Company has no Exposure to Capital Market directly or indirectly.

iii) Details of financing of parent company products : The Disclosure is not applicable as the Company does not have any holding or parent company.

8. Details of financing of parent company products : Not Applicable.

9. Details of Single Borrower Limit (SGL) / Group Borrower Limit (GBL) exceed by the NBFC Not Applicable.

10. Unsecured Advances Not Applicable.

ii) Disclosure of Penalties imposed by RBI and other regulators No Penalties were imposed by RBI and other regulators during the current and previous year.

iii) Related Party Transactions Refer Note No. 24

iv) Ratings assigned by credit rating agencies and migration The Company has not opted any credit ratings during of ratings during the year the year ended March 31, 2017and previous year ended March 31, 2016.

v) Remuneration to Directors Refer Note No. 24

vi) Net Profit or Loss for the period, prior period items and Refer Note No. 2 & 2.1 changes in accounting policies.

vii) Revenue Recognition Refer Note No. 2.1(iii)

viii) Accounting Standard 21 -Consolidated Financial A Separate Consolidated Financial Statement has been Statements (CFS) prepared by the company during the year ended March 31, 2017 and previous year ended March 31, 2016.

11. Additional Disclosures

i) Provisions and Contingencies Refer to Note No. 29 (D)

ii) Draw Down from Reserves There has been no draw down from reserves during the current and previous year

iii) Concentration of Deposits, Advances, Exposures and NPAs

a) Concentration of Deposits (for deposit taking NBFCs) This Disclosure is not applicable as the Company as it is not a deposit taking NBFC

b) Concentration of Advances Not applicable as no such advances is being made.

c) Concentration of Exposure Not applicable as no such Exposure is being made.

d) Concentration of NPAs The Company does not have any such exposure.

e) Sector-wise NPAs The Company does not have any such exposure.

f) Movement of NPAs The Company does not have any such exposure.

iv) Overseas Assets (for those with Joint Ventures and The Company has no exposure or transaction with Subsidiaries abroad. overseas assets.

v) Off-balance Sheet SPVs sponsored (which are There are no Off-balance Sheet exposure as on March required to be consolidated as per accounting norms) 31, 2017 and March 31, 2016.

12. Disclosure of Complaints Not applicable to the company

13. Previous year’s figures including those in brackets have been regrouped / rearranged where necessary to confirm the current year’s figures.

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Mar 31, 2016

(a) There is no change in the number of shares in the current year and previous year.

(b) Terms / rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs, 10 per share. Each
holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

During the year ended 31st March 2016, the amount of per share dividend recognized as distributions to shareholders was Rs, 25/- (Rs, 25) per share.

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

*Being provision made against demand for municipal taxes (including interest and penalty) for earlier years. The Company
has represented to the Municipal authorities for their reconsideration of the annual valuation which is under consideration of the authorities.

# Aditya Birla Fashion & Retail Limited has issued 9,72,909 equity shares to the company
during the year pursuant to the Scheme of Demerger for equity shares held in Aditya Birla Nuvo
Limited.

@ 24,574 equity shares of Grasim Industries Limited, have been received during the year pursuant
to the Scheme of Merger for equity shares held in Aditya Birla Chemicals(India) Limited.

B. Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed
five years or more of service gets Gratuity on terms not lower than the amount payable
under the Payment of Gratuity Act, 1972. The aforesaid scheme is not funded.
The following tables summarizes the components of net benefit expenses recognized in
Statement of Profit & Loss and the amount recognized in the Balance Sheet for the respective plan.

1. 1. Capital & Other Commitments :

a) Uncalled liability on partly paid Shares held as Investments Rs, 3 thousands

(-Rs,3 thousands).
2. Contingent Liabilities :

Income Tax demands for earlier years aggregating to Rs, 24,733 thousands (Rs, 36,149 thousands) disputed by the Company.

2. The Company has disputed the claim for recovery of Rs, 1,544 thousands plus interest from 1st
November, 1973 made by State Bank of India, Bombay in a suit filed against the company on
the basis of guarantee given in respect of the advances made to Hind Cycles Limited against
their Cash Credit Account by the said Bank. Against the above claim, Rs, 6,928 thousands have
been deposited with Debts Recovery Appellate Tribunal pursuant to Hon''ble Bombay High
Court Order while admitting the writ petition filed by the Company. Pending the High Court
judgment in the above matter, no provision against the above claim has been made in the accounts.

3. The Company has given undertaking to some Banks/Financial Institutions for non-disposal of
its share holdings in the following Bodies Corporate without their approval, till the loans given by
those banks/institutions are repaid in full by these Bodies Corporate :-

(i) Amfac Industries Ltd. (ii) Mangalam Cement Ltd.

(iii) Century Textiles & Industries Ltd. (iv) Kesoram Industries Ltd.

4. No effect has been given in the accounts in respect of the following Equity Shares received by
way of fully paid Bonus Shares on shares not belonging to the Company and the same are being held in trust by the Company :

5. Segment Reporting :

The company has only one business segment viz. investment and related activities and its
operations are also confined to one geographical segment i.e. India. As such, no further
disclosure under Accounting Standard 17 "Segment Reporting" is required.

6. Earnings Per Share (EPS) :

The following reflects the profit and and share data used in the basic and diluted EPS computations :

7. Based on the information''s/documents available with the company, no creditor is covered under
Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provisions
/ payments have been made by the company to such creditors, if any, and no disclosures are made in these accounts.

8. Leases :

Operating Lease : Company as a Lessee

The office premises is obtained on operating lease. The lease term is for 1-3 years and renewable
for further period either mutually or at the option of the company. There is no escalation clauses
in the lease agreements. There are no restrictions imposed by lease arrangements. The leases are cancellable.

Operating Lease : Company as a Less or

The company has leased certain office on operating leases. The lease term is for 1-3 years and
renewable thereafter. There is escalation clause in the lease agreements. The rent is not
based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

9. Minimum Alternative Tax (MAT) Credit entitlement of Rs, 3,13,863 thousand (after adjusting
utilized during the current year Rs, 11,095 thousand), has not been recognized by the
Company in the absence of convincing evidence to claim the above tax credit in future years.

10. The Investment of the Company has exceeded the limits as per the Concentration of Credit /
Investment norms provided in paragraph 18 of Non-Banking Financial (Non Deposit Accepting or
Holding) Companies prudential norms (Reserve Bank) Directions, 2007 (as amended) for which
the Company has applied to the Reserve Bank of India ("RBI") seeking exemption from complying
with the aforesaid norms up to 31st March, 2017. Also the Company has applied to RBI for its
conversion from Non-Banking Financial Company to Core Investment Company.

11. Additional disclosure required by NBFC-ND-SI in terms of the notification issued by RBI on
August 1, 2008, are as follows:

(b) The Company has no exposure to real estate sector, both direct and indirect

12. Previous year''s figures including those in brackets have been regrouped / rearranged where necessary to confirm the current year''s figures.

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Mar 31, 2015

1. Capital & Other Commitments :

a) Uncalled liability on partly paid Shares held as Investments Rs. 3 thousands (Rs. 3 thousands).

2. Contingent Liabilities :

Income Tax demands for earlier years aggregating to Rs. 36,149 thousands (Rs. 33,642 thousands) disputed by the Company.

3. The Company has disputed the claim for recovery of Rs. 1,544 thousands plus interest from 1st November, 1973 made by State Bank of India, Bombay in a suit filed against the company on the basis of guarantee given in respect of the advances made to Hind Cycles Limited against their Cash Credit Account by the said Bank. Against the above claim, Rs. 6,928 thousands have been deposited with Debts Recovery Appellate Tribunal pursuant to Hon'ble Bombay High Court Order while admitting the writ petition filed by the Company. Pending the High Court judgment in the above matter, no provision against the above claim has been made in the accounts.

4. The Company has given undertaking to some Banks/Financial Institutions for non-disposal of its share holdings in the following Bodies Corporate without their approval, till the loans given by those banks/institutions are repaid in full by these Bodies Corporate :-

(i) Aditya Birla Chemicals (India) Ltd. (ii) Tanfac Industries Ltd.

(iii) Mangalam Cement Ltd. (iv) Century Textiles & Industries Ltd.

(v) Kesoram Industries Ltd.

B. Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme is not funded. The following tables summarizes the components of net benefit expenses recognized in Statement of Profit & Loss and the amount recognized in the Balance Sheet for the respective plan.

5. No effect has been given in the accounts in respect of the following Equity Shares received by way of fully paid Bonus Shares on shares not belonging to the Company and the same are being held in trust by the Company :

6. Segment Reporting :

The company has only one business segment viz. investment and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 "Segment Reporting" is required.

7. Related Party Disclosures

Names of related parties and related party relationship

a. Name of the related parties where control exists :

Subsidiary Companies PIC Properties Limited

PIC Realcon Limited Atlas Iron & Alloys Limited (in Liquidation)

b. Names of other related parties :

Associate Company Century Textile & Industries Limited

Kesoram Industries Limited

Key Management Personnel Shri R. A. Makharia (Executive Director)

Shri N. K. Baheti (CFO) (w.e.f. 29th Jan.'15) Shri R.S.Kashyap (C.S.)(w.e.f. 1st April'14)

Operating Lease : Company as a Lessor

The company has leased certain office on operating leases. The lease term is for 1-3 years and renewable thereafter. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

8. Minimum Alternative Tax (MAT) Credit entitlement of Rs. 324,958 thousand (after adjusting utilized during the current year Rs. 12,943 thousand), has not been recognized by the Company in the absence of convincing evidence to claim the above tax credit in future years.

9. The Investment of the Company has exceeded the limits as per the Concentration of Credit / Investment norms provided in paragraph 18 of Non-Banking Financial (Non Deposit Accepting or Holding) Companies prudential norms (Reserve Bank) Directions, 2007 (as amended) for which the Company has applied to the Reserve Bank of India ("RBI") seeking exemption from complying with the aforesaid norms up to 31st March, 2016. Also the Company has applied to RBI for its conversion from Non-Banking Financial Company to Core Investment Company.

10. Additional disclosure required by NBFC-ND-SI in terms of the notification issued by RBI on August 1, 2008, are as follows:

(b) The Company has no exposure to real estate sector, both direct and indirect

11. Previous year figures

Previous year's figures including those in brackets have been regrouped / rearranged where necessary to confirm the current year's figures.

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Mar 31, 2014

1. Capital & Other Commitments :

a) Uncalled liability on partly paid Shares held as Investments Rs. 3 thousands

2. Contingent Liabilities :

Income Tax demands for earlier years aggregating to Rs. 33,642 thousands (Rs. 26,218 thousands) disputed by the Company.

3. The Company has disputed the claim for recovery of Rs. 1,544 thousands plus interest from 1st November, 1973 made by State Bank of India, Bombay in a suit filed against the company on the basis of guarantee given in respect of the advances made to Hind Cycles Limited against their Cash Credit Account by the said Bank. Against the above claim, Rs. 6,928 thousands have been deposited with Debts Recovery Appellate Tribunal pursuant to Hon''ble Bombay High Court Order while admitting the writ petition filed by the Company. Pending the High Court judgment in the above matter, no provision against the above claim has been made in the accounts.

4. The Company has given undertaking to some Banks/Financial Institutions for non-disposal of its share holdings in the following Bodies Corporate without their approval, till the loans given by those banks/institutions are repaid in full by these Bodies Corporate :-

(i) Aditya Birla Chemicals (India) Ltd. (ii) Tanfac Industries Ltd.

(iii) Aditya Birla Nuvo Ltd. (iv) Mangalam Cement Ltd.

(v) Century Textiles & Industries Ltd. (vi) Kesoram Industries Ltd.

B. Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme is not funded. The following tables summarises the components of net benefit expenses recognised in Statement of Profit & Loss and the amount recognised in the Balance Sheet for the respective plan.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factor, such as supply and demand in the employment market.

5. No effect has been given in the accounts in respect of the following Equity Shares received by way of fully paid Bonus Shares on shares not belonging to the Company and the same are being held in trust by the Company :

6. Segment Reporting :

The company has only one business segment viz. investment and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 "Segment Reporting" is required.

7. Related Party Disclosures

a. Name of the related parties where control exists : Subsidiary Companies

PIC Properties Limited PIC Realcon Limited Atlas Iron & Alloys Limited (in Liquidation)

b. Names of other related parties :

Associate Company Century Textile & Industries Limited Kesoram Industries Limited (with effect from 27th June 2013)

Key Management Personnel Shri R. A. Makharia (Executive Director)

8. Based on the informations/documents available with the company, no creditor is covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provisions / payments have been made by the company to such creditors, if any, and no disclosures are made in these accounts.

9. Leases :

Operation Lease : Company as Lessee

The office premises is obtained on operating lease. The lease term is for 1-3 years and renewable for further period either mutually or at the option of the company. There is no escalation clauses in the lease agreemens. There are no restrictions imposed by lease arrangements. The leases are cancellable.

Operation Lease : Company as Lessor

The company has leased certain office on operating leases. The lease term is for 1-3 years and renewable thereafter. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

10.Minimum Alternative Tax (MAT) Credit entitlement of Rs. 3, 37,901 thousand (including Rs. 3,172 thousand for the year), has not been recognized by the Company in the absence of convincing evidence to claim the above tax credit in future years.

11. The Company had made an application to Reserve Bank of India (RBI) vide its letter dated 8th March, 2013 for conversion of the Company from a Non-Banking Financial Company (NBFC) to Core Investment Company (CIC) without accepting Public deposits based on the fact that the Company holds 90% of its net assets in group companies of which more than 60% of its net assets are invested in equity shares. Subsequently, RBI had returned the application for further compliance of certain matters. The Company is in the process of making fresh application for its conversion from NBFC to CIC, after complying with the additional matter. However, pending application/ approval, the investment of the Company have exceeded the limits as per concentration of credit/Investment Norms as provided in para-18 of Non- Banking Financial (Non - Deposit Accepting or Holding) Companies prudential norms (Reserve Bank) Direction 2007 (as amended) for which the Company has applied to the RBI seeking exemption from complying with aforesaid norms up to 31st March, 2015.

12. Additional disclosure required by NBFC-ND-SI in terms of the notification issued by RBI on August 1, 2008, are as follows :

(a) Capital to Risks Assets Ratio (CRAR)

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Mar 31, 2013

1. Corporate information :

Pilani Investment and Industries Corporation Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Madhya Pradesh stock exchange & Delhi Stock Exchange Association Limited in India. The company is engaged in carrying on the Business of non-banking financial institution without accepting public deposits.

2. Basis of Preparation :

The financial statements have been prepared to comply in all material respects with the accounting principles generally accepted in India, including mandatory Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and the directives prescribed by the Reserve Bank of India for Non-Banking Financial Companies under the historical cost convention and on an accrual basis. The accounting policies, in all material respects, applied by the Company and are consistent with those used in the previous year.

3. 1. Capital & Other Commitments :

a) Uncalled liability on partly paid Shares held as Investments 3 thousands ( 3 thousands).

b) For Commitments relating to lease arrangements, refer Note No. 28 below.

2. Contingent Liabilities :

Income Tax demands for earlier years aggregating to 26,218 thousands ( 8,909 thousands) disputed by the Company.

4. The Company has disputed the claim for recovery of 1,544 thousands plus interest from 1st November, 1973 made by State Bank of India, Bombay in a suit filed against the company on the basis of guarantee given in respect of the advances made to Hind Cycles Limited against their Cash Credit Account by the said Bank. Against the above claim, 6,928 thousands have been deposited with Debts Recovery Appellate Tribunal pursuant to Hon''ble Bombay High Court Order while admitting the writ petition filed by the Company. Pending the High Court judgment in the above matter, no provision against the above claim has been made in the accounts.

5. The Company has given undertaking to some Banks/Financial Institutions for non-disposal of its share holdings in the following Bodies Corporate without their approval, till the loans given by those banks/institutions are repaid in full by these Bodies Corporate :- (i) Aditya Birla Chemicals (India) Ltd. (ii) Tanfac Industries Ltd.

(iii) Aditya Birla Nuvo Ltd. (iv) Mangalam Cement Ltd.

(v) Century Textiles & Industries Ltd. (vi) Kesoram Industries Ltd.

6. Disclosure under Accounting Standard - 15 (Revised) on ‘Employee Benefits''.

( in 000s)

A. Defined Contribution Plan 2012-13 2011-12 Contribution to Provident Fund 494 443 Contrubution to superannuation Fund 90 368

B. Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme is not funded.

The following tables summarises the components of net benefit expenses recognised in Statement of Profit & Loss and the amount recognised in the Balance Sheet for the respective plan.

Statement of Profit & Loss

Net employee benefit expense recognized in the employee cost :

7. No effect has been given in the accounts in respect of the following Equity Shares received by way of fully paid Bonus Shares on shares not belonging to the Company and the same are being held in trust by the Company :

8. Segment Reporting :

The company has only one business segment viz. investment and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 "Segment Reporting" is required.

9. Based on the informations/documents available with the company, no creditor is covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provisions / payments have been made by the company to such creditors, if any, and no disclosures are made in these accounts.

10. Information pursuant to the provisions of Revised Schedule VI to the Companies Act, 1956 (to the extent applicable) :–

Earnings in Foreign Exchange - Dividend (Net of Tax) NIL ( 277 thousands)

11. Leases :

Operation Lease : Company as Lessee

The office premises is obtained on operating lease. The lease term is for 1-3 years and renewable for further period either mutually or at the option of the company. There is no escalation clauses in the lease agreemens. There are no restrictions imposed by lease arrangements. The leases are cancellable.

The company has leased certain office on operating leases. The lease term is for 1-3 years and renewable thereafter. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

12. Current Tax for the year ended 31st March 2013 represents Minimum Alternate Tax (MAT) provided as per provisions of the Income Tax Act, 1961, however, MAT Credit entitlement of 334,730 thousands, has not been recognized by the Company in the absence of convincing evidence to claim the above tax credit in future years.

13. During the year ended 31st March 2013, the Company has sold certain quoted investment and the differences of 1,370,118 thousands, between the cost of such shares being the book value as on 31st March 2003, in terms of the scheme of arrangement approved by Hon''ble Calcutta High Court in an earlier years and net sale proceeds has been credited to the Statement of Profit & Loss. However, Investment Reserve of 303,916 thousands against the above shares has not been withdrawn and adjusted in the accounts, although the same has been duly considered for the purpose of Minimum Alternate Tax based on a legal opinion.

14. In terms of resolution passed by the Board of Directors in their meeting held on 9th November, 2012, the Company has transferred / sold certain quoted / unquoted investments of 44,325 thousands to its newly formed wholly owned subsidiary namely, PIC Realcon Limited during the year ended 31st March, 2013 at values appearing in the books of the Company.

15. The Company has made an application to Reserve Bank of India (RBI) vide its letter dated 8th March 2013 for its conversion from a Non Banking Financial Company (NBFC) to Core Investment Company (CIC) without accepting Public deposits,based on the fact the Company holds 90% of its net assets in group companies of which more than 60% of its net assets are invested in equity shares as per the audited interim financial statements as at 31st January, 2013. Accordingly, the Company has surrendered existing NBFC certificate with a request to cancel the same. The above application is pending with RBI as on date. However, pending above approval, the concentration of credit/Investment Norms as provided in Para-18 of Non-Banking Financial (Non-Deposit Accepting or holding) companies prudential norms (Reserve Bank) Direction 2007 (as amended) has exceeded the limits provided therein for which the Company has applied to the RBI seeking exemption from complying with aforesaid norms up to 31st March, 2014, or approval of conversion from NBFC to CIC, whichever is earlier.

16. The Company does not have any exposure in gold on March 31, 2013.

17. Additional disclosure required by NBFC-ND-SI in terms of the notification issued by RBI on August 1, 2008, are as follows :

(a) Capital to Risks Assets Ratio (CRAR)

(b) The company has no exposure to real estate sector, both direct and indirect.

18. Previous year figures

Previous year''s figures including those in brackets have been regrouped / rearranged where necessary to confirm the current year''s figures.

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Mar 31, 2012

1. Corporate information :

Pilani Investment and Industries Corporation Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in carrying on the Business of non-banking financial institution without accepting public deposits.

2. Basis of Preparation :

The financial statements have been prepared to comply in all material respects with the accounting principles generally accepted in India, including mandatory Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and the directives prescribed by the Reserve Bank of India for Non-Banking Financial Companies under the historical cost convention and on an accrual basis. The accounting policies, in all material respects, have been consistently applied by the Company and are consistent with those used in the previous year, except for the change in accounting policy explained in 2.1 (i) below.

(a)Terms /Rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

During the year ended 31 st March 2012, the amount of per share dividend recognized as distributions to shareholders was Rs.25/- (Rs. 25) per share.

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

3.1. Capital & Other Commitments :

a) Uncalled liability on partly paid Shares held as Investments No.3 thousands 3 thousands).

b) For Commitments relating to lease arrangements, refer Note No. 30 below.

2. Contingent Liabilities :

Income Tax demands for earlier years aggregating to Rs.8,909 thousands (Rs. 3,941 thousands) disputed by the Company/ Income Tax department in appeal.

4. The Company has disputed the claim for recovery of 1,544 thousands plus interest from 1st November, 1973 made by State Bank of India, Bombay in a suit filed against the company on the basis of guarantee given in respect of the advances made to Hind Cycles Limited against their Cash Credit Account by the said Bank. Against the above claim, Rs. 6,928 thousands have been deposited with Debts Recovery Appellate Tribunal pursuant to Hon'ble Bombay High Court Order while admitting the writ petition filed by the Company. Pending the High Court judgment in the above matter, no provision against the above claim has been made in the accounts.

5. The Company has given undertaking to some Banks/Financial Institutions for non-disposal of its share holdings in the following Bodies Corporate without their approval, till the loans given by those banks/institutions are repaid in full by these Bodies Corporate

(i) Aditya Birla Chemicals (India) Ltd. (ii) Tanfac Industries Ltd.

(iii) Aditya Birla Nuvo Ltd. (iv) Mangalam Cement Ltd.

(v) Century Textiles & Industries Ltd. (vi) Kesoram Industries Ltd.

6. Disclosure under Accounting Standard -15 (Revised) on "Employee Benefits.

(Rs.in 000s)

A. Defined Contribution Plan 31st March 2012 31st March 2011

Contribution to Provident Fund 443 364

Contribution to superannuation Fund 368 306

B. Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets Gratuity on terms not lower than the amount payable under the Payment of Gratuity Act, 1972. The aforesaid scheme is not funded.

The following tables summarizes the components of net benefit expenses recognized in Statement of Profit & Loss and the amount recognized in the Balance Sheet for the respective plan.

Statement of Profit & Loss Net employee benefit expense recognized in the employee cost :

7. The Competent Authority under Urban Land (Ceiling & Regulation) Act, 1976 has declared excess land of 329.25 sq.mtrs. in respect of land held by the Company at Kolkata and 1,486.87 sq.mtrs. in respect of land at New Delhi transferred to a subsidiary of the company w.e.f. 1.4.1985, against which a stay has been granted to the Company by the Appellate Authority under the said Act. Further in view of Urban Land (Ceiling & Regulation) Repeal Ordinance 1999 (No.5 of 1999) dated 11.1.1999, the Urban Land (Ceiling & Regulation) Act, 1976 stands repealed in New Delhi as advised to the company by the solicitors.

8. Segment Reporting :

The company has only one business segment viz. investment and related activities and its operations are also confined to one geographical segment i.e. India. As such, no further disclosure under Accounting Standard 17 "Segment Reporting" is required.

9. Based on the information's/documents available with the company, no creditor is covered under Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provisions / payments have been made by the company to such creditors, if any, and no disclosures are made in these accounts.

10. Information pursuant to the provisions of Revised Schedule VI to the Companies Act, 1956 (to the extent applicable)

Earnings in Foreign Exchange - Dividend (Net of Tax) 277 thousands (NIL)

11. Leases:

Operation Lease : Company as Lessee

The office premises is obtained on operating lease. The lease term is for 1 -3 years and renewable for further period on mutual consent. There is no escalation clauses in the lease agreements. There are no restrictions imposed by lease arrangements. The leases are cancellable.

Operation Lease : Company as Less or

The company has leased certain office on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

12. As per Scheme of Arrangement sanctioned by Hon'ble Calcutta High Court in an earlier year, long-term investments are valued at cost, i.e. book value of the investments as reflected in the financial statements as on 31 st March, 2003 and for subsequent diminution, provision made by way of adjustment against Investment Reserve as indicated in Note No. 2.1 (ix) (b) above. There has been no impact on the profit for the current year and previous year due to above accounting treatment.

13. The Company does not have any exposure in gold on March 31,2012.

14. Previous year figures

Precious year's figures including those in brackets have been recognized where necessary to confirm the current year's classification under Revised Schedule VI as stated in Note 2.1 (i) above.