Notes to Accounts of Alfred Herbert (India) Ltd.

Mar 31, 2019

1.1.1. There has been no change / movement in the number of outstanding shares as at the beginning and at the end of our reporting period.

1.1.2 The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity is entitled to one vote per share. The Company may declare and pay dividends. The dividend, if any proposed by the Board of Directors of the Company is subject to the approval of the shareholders in the ensuing Annual General Meeting. in the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to the number of equity shares held by Equity Shareholders.

1.1.3 EQUITY SHARES IN THE COMPANY HELD BY EACH SHAREHOLDER HOLDING MORE THAN 5% EQUITY SHARES

2. Contingent Liabilities and Commitments

a) Contingent Liability not provided for in respect of Corporate Guarantee for Rs.27,500,000/- (2017-18 Rs. 27,500,000/-)

b) Contingent Liability not provided for in respect of Bank Guarantee for obtaining Way Bill from West Bengal Commercial Tax Department for Rs.1,340,000/- (2017-18 Rs.1,340,000/-)

c) Estimated amount of contracts (net of advance) remaining to be executed on Capital Account and not provided for -Rs.35,279,394/- (2017-18 Rs.Nil)

3. Land at Bangalore

In response to the Company’s Writ petition against the order of the Assistant Commissioner of forest, Karnataka for vacating the Company’s property in Whitefield which had been acquired from KIADB the single bench of Hon’ble High Court at Karnataka upheld the Company’s contention and held that the land did not belong to the forest department. A review petition has been filed by the forest department with Hon’ble High Court at Karnataka (involving several industries including the Company situated in the same vicinity) and the same is currently pending before the said court.

4. Loans and Advances given to wholly owned subsidiary, Alfred Herbert Limited became Non-performing Assets (NpA), as per prudential guidelines issued by Reserve Bank of India (the guidelines) and provision of Rs. 42 lakhs was made in the previous year in terms of the said guidelines. Even through the performance of the said subsidiary has improved during the year, the said loan remained classified as NpA and provision of Rs. 42 lakhs made in the previous year has been continued in this year.

Further, no interest as a matter of support to the subsidiary and also considering the guidelines has been accrued against the said loan.

5. Disclosure of Employee Benefit Expenses in accordance with the requirements of AS-15 (Revised) :

Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity fund scheme is administered and controlled by a trust. The projected Unit Credit (pUC) actuarial method has been used to assess the plan’s Liabilities, including those related to death-in-service and incapacity benefits.

The following tables set out the status of the Gratuity plan as required under As 15 (Revised).

Reconciliation of Defined Benefit Obligation and fair Value of Assets over the year ended 31st March 2019.

6. Leave Encashment

According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

7. There are no reported Micro Enterprises and small Enterprises as defined in the Micro, small and Medium Enterprises Development Act 2006, to whom Company owes dues.

8. In accordance with Accounting standard 22 “Accounting for taxes on Income” (As-22) the company has accounted for deferred taxes during the year.

9. The Company operates mainly in one business segment viz. non-banking financial activities and therefore the Segment Reporting as per the Accounting Standard (AS-17) is not applicable to the Company.

10. Previous year’s figures have been regrouped / rearranged / reclassified wherever necessary, to make it comparable with current year figures.

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Mar 31, 2018

3. Contingent Liabilities and Commitments

a) Contingent Liability not provided for in respect of Corporate Guarantee for Rs.27,500,000/- (2016-17 Rs.27,500,000/)

b) Contingent Liability not provided for in respect of Bank Guarantee for obtaining Way Bill from West Bengal Commercial Tax Department for Rs.1,340,000/- (2016-17 Rs.1,340,000/-)

c) Estimated amount of contracts remaining to be executed on Capital Account and not provided for -Rs.Nil (2016-17 Rs.1,280,000/-)

4. Land at Bangalore

In response to the Company''s Writ Petition against the order of the Assistant Commissioner of Forest, Karnataka for vacating the Company''s property in Whitefield which had been acquired from KIADB. The single bench of Hon''ble High Court at Karnataka upheld the Company''s contention and held that the land did not belong to the forest department. A review petition has been filed by the forest department with Hon''ble High Court at Karnataka (involving several industries including the Company situated in the same vicinity) and the same is currently pending before the said court.

5. Loans and Advances given to 100% subsidiary, Alfred Herbert Limited include Rs.30 lakhs which has become Non-Performing Asset (NPA) during the year in terms of Prudential Norms issued by the Reserve Bank of India. Pending outcome of the steps for recovery taken by the Company, the entire amount of loan of Rs.420 lakhs given to the said subsidiary has been considered to be NPA and has been so classified in these Accounts. Provision of Rs.42 lakhs required in terms of the guidelines issued by Reserve Bank of India has been made in these Accounts. Further, no interest as a matter of support to the subsidiary and also considering the prudential guidelines by the Reserve Bank of India has been accrued against the said loan.

6. Disclosure of Employee Benefit Expenses in accordance with the requirements of AS-15 (Revised) : Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Scheme is administered and controlled by a trust. The Projected Unit Credit (PUC) actuarial method has been used to assess the plan''s Liabilities, including those related to death-in-service and incapacity benefits.

The following tables set out the status of the Gratuity Plan as required under AS 15 (Revised).

Reconciliation of Defined Benefit Obligation and Fair Value of Assets over the year ended 31st March 2018.

Notes to the Balance sheet and statement of Profit and Loss (Contd.)

7. Leave Encashment

According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

8. There are no reported Micro Enterprises and small Enterprises as defined in the Micro, small and Medium Enterprises Development Act 2006, to whom Company owes dues.

9. The Company operates mainly in one business segment viz. non-banking financial activities and therefore the segment Reporting as per the Accounting standard (As-17) is not applicable to the Company.

10. In accordance with Accounting standard 22 "Accounting for taxes on Income" (As-22) the company has accounted for deferred taxes during the year.

11. Related party disclosure to the extent identified by the management in accordance with the requirements of Accounting standard 18 on "Related Party Transactions" are as follows :-Related Parties

Name Relationship

Alfred Herbert Limited subsidiary Company

Herbert Holdings Limited subsidiary Company

Jain Industrial & Commercial services Pvt. Ltd. Company where significant influence exist

(Upto 31st December, 2017)

La Creme De La Creme services LLP LLP where certain Directors are Partners

(w.e.f. 1st January, 2018)

Key Management Personnel

R. Radhakrishnan Chief Executive Officer & Company secretary

(Resigned w.e.f. 2nd November, 2017)

V. Matta Chief Financial Officer

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Mar 31, 2017

1. Contingent Liabilities and Commitments

2. Contingent Liability not provided for in respect of income Tax demand amounting to Rs. Nil (2015-16 Rs.15,230/-)

3. Contingent Liability not provided for in respect of Corporate Guarantee for Rs.27,500,000/- (2015-16 Rs.27,500,000/)

4. Contingent Liability not provided for in respect of Bank Guarantee for obtaining Way Bill from West Bengal Commercial Tax Department for Rs.1,340,000/- (2015-16 Rs. Nil)

5. Estimated amount of contracts remaining to be executed on Capital Account and not provided for - Rs.1,280,000/-(2015-16 Rs. Nil)

6. The Board of Directors recommend the payment of Dividend of Rs.2/- per share (20%) amounting to Rs.1,542,858/- for the year ended 31st March, 2017 pending approval of shareholders.

7. Land at Bangalore

8. in response to the Company''s Writ Petition against the order of the Assistant Commissioner of Forest, Karnataka for vacating the Company''s property in Whitefield which had been acquired from KIADB. The single bench of Hon''ble High Court at Karnataka upheld the Company''s contention and held that the land did not belong to the forest department. A review petition has been filed by the forest department with Hon''ble High Court at Karnataka (involving several industries including the Company situated in the same vicinity) and the same is currently pending before the said court.

9. A portion of land at Bangalore along with structure thereon has been acquired by Karnataka industrial Area Development Board (KIADB) for the purpose of Metro Rail Project under taken by the Government and compensation of Rs.209,132,210/- has been received against the said acquisition. Profit arising in this respect has been disclosed as Exceptional items in the Statement of Profit and Loss.

10. Considering the current financial performance of its 100% subsidiary, Alfred Herbert Limited, it has been decided to waive the interest on loan currently amounting to Rs.18,000,000/- given to the subsidiary. interest of Rs.565,820/- accrued till 31st March 2016 has been written off as a measure of support and no further interest against the said loan recognized also keeping in view the Prudential Guidelines issued by the Reserve Bank of India.

11. Disclosure of Employee Benefit Expenses in accordance with the requirements of AS-15 (Revised) :

Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Scheme is administered and controlled by a trust. The Projected Unit Credit (PUC) actuarial method has been used to assess the plan''s Liabilities, including those related to death-in-service and incapacity benefits.

The following tables set out the status of the Gratuity Plan as required under AS 15 (Revised).

Reconciliation of Defined Benefit Obligation and Fair Value of Assets over the year ended 31st March 2017.

12. Leave Encashment

According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

13. There are no reported Micro Enterprises and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006, to whom Company owes dues.

14. The Company operates mainly in one business segment viz. non-banking financial activities and therefore the Segment Reporting as per the Accounting Standard (AS-17) is not applicable to the Company.

15. In accordance with Accounting Standard 22 "Accounting for taxes on Income" (AS-22) the company has accounted for deferred taxes during the year.

16. Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary, to make it comparable with current year figures.

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Mar 31, 2016

1. Contingent Liabilities and Commitments

i) a) Contingent Liability not provided for in respect of Income Tax demand amounting to Rs.15,230/- (2014-15 Rs.19,720/)

b) Contingent Liability not provided for in respect of Corporate Guarantee for Rs.27,500,000/- (2014-15 Rs.nil)

ii) Estimated amount of contracts remaining to be executed on capital account and not provided for - Rs. Nil (2014-15 -Rs.9,309,604/-).

2. Land at Bangalore - In response to the Company''s Writ Petition against the order of the Assistant Commissioner of Forest, Karnataka for vacating the Company''s property in Whitefield which had been acquired from KIADB. The single bench of Hon''ble High Court at Karnataka upheld the Company''s contention and held that the land did not belong to the forest department. A review petition has been filed by the forest department (involving several industries including the Company situated in the same vicinity) and the same is currently pending before the said court. The Company received a notice from KIADB (Metro Rail Project) for acquisition of 2008 sq. mtrs. of land from Survey No. 81 for housing proposed Metro Rail Station.

3. Disclosure of Employee Benefit Expenses in accordance with the requirements of AS-15 (Revised):

Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Scheme is administered and controlled by a trust. The Projected Unit Credit (PUC) actuarial method has been used to assess the plan''s Liabilities, including those related to death-in-service and incapacity benefits.

4. Leave Encashment

According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

5. There are no reported Micro Enterprises and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006, to whom Company owes dues.

6. The Company operates mainly in one business segment and therefore the Segment Reporting as per the Accounting Standard (AS-17) is not applicable to the Company.

7. In accordance with Accounting Standard 22 “Accounting for taxes on Income" (AS-22) the company has accounted for deferred taxes during the year.

The following are the major components of deferred tax (assets) / liabilities.

8. Related party disclosure to the extent identified by the management in accordance with the requirements of Accounting Standard 18on “Related Party Transactions" are as follows :-Related Parties

Name Relationship

Alfred Herbert Limited Subsidiary Company

Herbert Holdings Limited Subsidiary Company

Jain Industrial & Commercial Services Pvt. Ltd. Associate Company

Chief Executive Officer Key Management Personnel

Chief Financial Officer Key Management Personnel

Note: Figures in bracket represent previous year''s figure.

9. Diminution in value of investment in Reliance Communications Limited is due to market fluctuations and the same is treated as Long Term Investment at cost.

10. Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary, to make it comparable with current year figures.

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Mar 31, 2015

1. There has been no change / movement in the number of outstanding shares as at the beginning and at the end of our reporting period.

2. The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity is entitled to one vote per share. The Company may declare and pay dividends. The dividend, if any proposed by the Board of Directors of the Company is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to the number of equity shares held by Equity Shareholders.

3. Contingent Liabilities and Commitments

i) Contingent Liability not provided for in respect of income Tax demand amounting to Rs.19,720/- (2013-14 Rs.501,285/-)

ii) Estimated amount of contracts remaining to be executed on capital account and not provided for - Rs.9,309,604/- (2013-14 - Rs.36,151,192/-).

4. Factory Land - in response to the Company''s Writ Petition against the order of the Assistant Commissioner of Forest, Karnataka for vacating the Company''s property in Whitefield which had been acquired from KIADB. The single bench of Hon''ble High Court at Karnataka upheld the Company''s contention and held that the land did not belong to the forest department. A review petition has been filed by the forest department (involving several industries including the Company situated in the same vicinity) and the same is currently pending before the said court.

5. Effective from April 1, 2014, the Company has charged Depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule ii of the Companies Act, 2013. Due to the above depreciation charge for the year ended March 31, 2015 is lower by Rs.21,548/-. Further, based on transitional provision provided in Note 7(b) of Schedule ii, Depreciation of Rs.213,612/- and Deferred Tax of Rs.66,006/- thereon have been adjusted to General Reserve.

6. Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Scheme is administered and controlled by a trust. The Projected Unit Credit (PUC) actuarial method has been used to assess the plan''s Liabilities, including those related to death-in-service and incapacity benefits.

The following tables set out the status of the Gratuity Plan as required under AS 15 (Revised).

Reconciliation of Defined Benefit Obligation and Fair Value of Assets over the year ended 31st March 2015.

7. Leave Encashment

According to the prevailing practice of the Company, the employees are allowed to enjoy the leave within the year. No encashment of leave is allowed.

8. There are no reported Micro Enterprises and small Enterprises as defined in the Micro, small and Medium Enterprises Development act 2006, to whom Company owes dues.

9. the Company operates mainly in one business segment and therefore the segment Reporting as per the Accounting standard (As-17) is not applicable to the Company.

10. in accordance with Accounting standard 22 "accounting for taxes on income" (As-22) the company has accounted for deferred taxes during the year.

11. Related parly disclosure as identified by the management in accordance with the Accounting Standard 18 on "Related Party Transactions" are as follows Related Parties

Name Relationship

Alfred Herbert Limited Subsidiary Company

Herbert Holdings Limited Subsidiary Company

Jain industrial & Commercial Services Pvt. Ltd. Associate Company

Chief Executive Officer Key Management Personnel

Chief Financial Officer Key Management Personnel

12. previous year’s figures have been regrouped / rearranged / reclassified wherever necessary, to make it comparable with current year figures.

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Mar 31, 2013

1. Building Plan Sanction Fees Rs.7,135,678/- (2012 – Rs.7,135,678/-) paid for construction of building has been carried forward as Capital-Work-in-Progress to be allocated/adjusted on completion of construction.

2. Depreciation for the year as per Fixed Assets Schedule (Note 2.7) includes Rs.181,400/- (2012 – Rs.185,008/-) being depreciation on the increased value of Building due to the effect of revaluation and accordingly the same has been adjusted from Capital Revaluation Reserve.

3. Interest on loans except to the extent there is uncertainty as to the realisation has been accounted for on accrual basis.

4. Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Scheme is administered and controlled by a trust. The Projected Unit Credit (PUC) actuarial method has been used to assess the plan''s Liabilities, including those related to death-in-service and incapacity benefits.

5. There are no reported micro, small and medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006, to whom Company owes dues.

6. The Company operates mainly in one business segment and thereby the segment reporting as required by AS-17 is not applicable.

7. In accordance with Accounting Standard 22 "Accounting for taxes on Income" (AS-22) the company has accounted for deferred taxes during the year.

8. Previous year''s figures have been regrouped / rearranged / reclassified wherever necessary, to make it comparable with current year figures.

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Mar 31, 2012

1. The Company has only one class of equity share having a par value of Rs, 10/- per share. Each holder of equity is entitled to one vote per share. The Company may declare and pay dividends. The dividend, if any proposed by the Board of Directors of the Company is subject to the approval of the shareholders in the ensuing Annual General Meeting, In the event of liquidation of the Company, the holOers of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to the number of equity shares held by Equity Shareholders.

2. Building Plan Sanction Fees Rs. 7,135,678/- paid for construcion of building has been carried forward as Capital-work-in-Prograss to be allocated/adjusted on completion of construction.

3. Interest on loans except to the extent there is uncertainty as to the realistion has been accounted for an accural basis.

4. Loans and advances include Rs. 20,000,000/- which are overdue for payment. Pending outcome of steps for recovery taken by the Comapny, full provision for these non-performing assets amountiong to Rs. 20,000,000/- has been made in the previous years in accordance with Non-Banking Financial Companies Prudential Norms of Reserve Bank of India.

5. Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Scheme is administered and controlled by a trust. The Projected unit Credit (PUC) actuarial method has been used to assess the plan's Liabilities, including those related to death-in-service and incapacity benefits.

The following tables set out the status of the Gratuity Plan as required under AS 15 (Revised).

Reconciliation of Defined Benefit Obligation and Fair Value of Assets over the year ended 31 st March 2012.

6. There are no reported micro, small and medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006, to whom Company owes dues.

7. The Company operates mainly in one business segment and hereby the segment reporting as required by AS- 17 is not applicable.

8. In accordance with Accounting Standard 22 "Accounting for taxes on Income" (AS-22) the company has accounted for deferred taxes during the year.

9. Previous year's figures have been regrouped / rearranged / reclassified wherever necessary, to make it comparable with current year figures.

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Mar 31, 2011

A. Interest on loans except to the extent there is uncertainty as to the realisation has been accounted for on accrual basis.

b. Loans and advances include Rs.200 lacs, which are overdue for payments Pending outcome of steps for recovery taken by the Company, full provision for these non-performing assets amounting to Rs.200 lacs has been made in the previous years in accordance with Non-Banking Financial Companies Prudential Norms of Reserve Bank of India.

c. Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Scheme is administered and controlled by a trust. The Projected Unit Credit (PUC) actuarial method has been used to assess the plans Liabilities, including those related to death-in-service and incapacity benefits.

The following tables set out the status of the Gratuity Plan as required under AS 15 (Revised). Reconciliation of Defined Benefit Obligation and Fair Value of Assets over the year ended 31st March 2011.

d. There are no reported micro, small and medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act 2006, to whom Company owes dues.

e. In accordance with Accounting Standard 22 "Accounting tor taxes on Income" (AS22) issued by the ICAI, the company has accounted for deferred taxes during the year.

f. Related party disclosure as identified by the management in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India ("ICAI") are as follows:-

Name of the related parties where control exists - Subsidiary Companies:

i) Alfred Herbert Limited

ii) Herbert Holdings Limited.

Disclosure of transaction between the Group and Related Parties and status of outstanding balances as on 31st March 2011.

g. Previous years figures have been regrouped / rearranged / reclassified wherever necessary, to make it comparable with current year figures.

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Mar 31, 2010

A. Interest on loans except to the extent there is uncertainty as to the realisation has been accounted for on accrual basis.

b. Loans and advances include Rs.200 lacs, which are overdue for payment. Pending outcome of steps for recovery taken by the Company, full provision for these nonperforming assets amounting to Rs.200 lacs has been made in the previous years in accordance with Non-Banking Financial Companies Prudential Norms of Reserve Bank of India.

c. Gratuity Plan

The company provides for gratuity, a defined benefit plan covering eligible employees. Gratuity Fund Schei r ie is administered and controlled by a trust. The Projected Unit Credit (PUC) actuarial method has been used to assess the plans Liabilities, including those related to death-in-service and incapacity benefits,

d, Previous years figures have been regrouped / rearranged/registered wherever necessary, to make it comparable with current year figures.