Notes to Accounts of Reliance Industrial InfraStructure Ltd.

Mar 31, 2023

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk:The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

(ii) The Income -Tax Assessments of the Company have been completed up to Assessment Year 2020-21. The total demand upto AY 2020-21 is '' 2.37 Lakh as on date. Based on the decisions of the Appellate authorities in its own case and the interpretations of other relevant provisions of the Income tax Act, 1961, the demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

(iii) The Company has no contracts remaining to be executed on capital account.

26 Capital Management

The Company manages its capital to ensure that it will continue as going concern while maximising the return to stakeholders. The company manages its capital structure and makes adjustment in light of changes in business condition. The overall strategy remains unchanged as compare to last year.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs based on unobservable market data.

Valuation Methodology

All financial Instruments are initially recognised and subsequently re-measured at fair value as described below:

a) The fair value of investments in quoted Equity Shares, Bonds and Mutual Funds is measured at quoted price or NAV.

b) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

B. Financial Risk management

The Company''s activities expose it to liquidity risk and credit risk. This note explains the sources of risks which the entity is exposed to and how it mitigates that risk.

Liquidity Risk

Liquidity risk is the risk that suitable sources of funding for the company''s business activities may not be available. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due, so that the company is not forced to obtain funds at higher rates. The Company monitors rolling forecasts of the Company''s cash flow position and ensure that the Company is able to meet its financial obligation at all times including contingencies.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due causing financial loss to the company. It arises from cash and cash equivalents, derivative financial instruments, deposits from financial institutions and principally from credit exposures to customers relating to outstanding receivables. The Company deals with highly rated counterparties.

28 The Company is mainly engaged in ''Infrastructure and Support Services Activities'' catering to Indian customers. All the activities of the Company revolve around this main business. Accordingly, the Company has only one identifiable segment reportable under Ind AS 108 "Operating Segment". The Executive Director (the ''Chief Operational Decision Maker as defined in Ind AS 108 - Operating Segments) monitors the operating results of the entity''s business for the purpose of making decisions about resource allocation and performance assessment.

Revenue of ? 67 21.35 Lakh (Previous Year ? 64 28.55 lakh) arose from Sale of Services to Reliance Industries Limited (Entity exercising significant influence, the largest customer). No other single customer contributed 10% or more to the Company''s revenue for both FY 2022-23 and FY 2021-22.

29 Details of Loans Given, Investments Made, Guarantees given and Securities provided during the year covered under Section 186 (4) of the Companies Act, 2013

i) Loans given NIL (Previous Year NIL)

ii) Investments made are given under respective heads.

iii) Guarantees given and Securities provided by the Company in respect of loan NIL (Previous Year NIL)

31 Other Statutory Information:

(i) There are no balances outstanding with struck off companies as per section 248 of the Companies Act, 2013.

(ii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(iii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(iv) The Company does not have transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.

32 Approval of Financial Statements

The Financial Statements were approved for issue by the Board of Directors at its meeting held on April 20, 2023.

33 Events After the Reporting Period

The Board of Directors have recommended a Dividend of ? 3.50 per Equity Share of ? 10/- each on the Paid-up Capital of ? 15 10 Lakh for the year ended March 31, 2023, subject to approval by the members at the ensuing Annual General Meeting of the Company.

34. The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable.

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Mar 31, 2018

A. CORPORATE INFORMATION

Reliance Industrial Infrastructure Limited ("the Company") is a listed entity incorporated in India, having its registered office and principal place of business at NKM International House, 5th Floor, 178 Backbay Reclamation, Behind LIC Yogakshema Building, Babubhai Chinai Road, Mumbai - 400 020, India.

The Company is mainly engaged in "Infrastructure Activity" catering to Indian Customers.

11.3 Rights, preferences and restrictions attached to shares:

The Equity Shares in the Company rank pari passu in all respects including voting rights and entitlement of dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on Plan assets and the Company''s policy for Plan Assets Management.

VII. The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2017-18.

VIII. Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade ,expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at end of the reporting period, while holding all other assumptions constant. The result of Sensitivity analysis is given below:

These plans typically expose the Group to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and Salary Risk. Investment Risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest Risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary Risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

2. Corporate Social Responsibility (CSR)

a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs. 43.56 lakh (Previous Year Rs.52.09 lakh)

b) Expenditure related to Corporate Social Responsibility is Rs.70 Lakh (Previous Year Rs.70 lakh ).

(ii) General description of lease terms:

a) Assets were generally given on lease for the period of five years, which has been completed in the Current financial year.

b) Lease rentals are charged on the basis of agreed rate of interest.

3. The Income Tax Assessments of the Company have been completed up to Assessment Year 2015-16. There is no contingent liability pertaining to Income Tax.

4. Estimated amount of contracts remaining to be executed on capital account is Rs.NIL (Previous Year Rs.NIL) and not provided for (net of advances).

5. CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will continue as going concern while maximising the return to stakeholders. The company manages its capital structure and makes adjustment in light of changes in business condition. The overall strategy remains unchanged as compared to last year.

Net Gearing Ratio

There is no Debt in the Company as on 31.03.2018 and 31.03.2017. Thus, Net Gearing Ratio is NIL as on 31.03.2018 and 31.03.2017.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs based on unobservable market data.

Valuation methodology

All financial Instruments are initially recognised and subsequently re-measured at fair value as described below :

a) The fair value of investments in quoted Equity Shares, Bonds and Mutual Funds is measured at quoted price or NAV.

b) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

B. Financial Risk management

(i) Liquidity Risk

Liquidity risk is the risk that suitable sources of funding for the Company''s business activities may not be available. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due, so that the Company is not forced to obtain funds at higher rates. The Company monitors rolling forecasts of the Company''s cash flow position and ensure that the Company is able to meet its financial obligation at all times including contingencies.

(ii) Credit Risk

Credit risk is the risk that a customer or counter party to a financial instrument will fail to perform or pay amounts due causing financial loss to the Company. It arises from cash and cash equivalents, derivative financial instruments, deposits from financial institutions and principally from credit exposures to customers relating to outstanding receivables. The Company deals with highly rated counter parties.

6. The Company is mainly engaged in ''Infrastructure Activity'' catering to Indian customers. All the activities of the Company revolve around this main business. Accordingly, the Company has only one identifiable segment reportable under Ind AS 108 "Operating Segment". The Executive Director (the ''Chief Operational Decision Maker as defined in IND AS 108 - Operating Segments) monitors the operating results of the entity''s business for the purpose of making decisions about resource allocation and performance assessment. Revenue of Rs.64 38.35 lakh ( Previous Year Rs.70 50.84 lakh) arose from Sale of Services to Reliance Industries Limited (Entity exercising significant influence, the largest customer), Revenue of Rs.19 24.43 lakh ( Previous Year Rs.19 66.77 lakh ) arose from Sale of Services to Reliance Corporate IT Park Limited. No other single customer contributed 10% or more to the Company''s revenue for both FY 2017-18 and FY 2016-17.

7. DETAILS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED DURING THE YEAR COVERED UNDER SECTION 186 (4) OF THE COMPANIES ACT, 2013.

i) Loans given Rs.NIL (Previous Year Rs.NIL)

ii) Investments made - Refer Note 2 - Investments - Non-Current (Previous Year Rs.NIL)

iii) Guarantees given and Securities provided by the Company in respect of loan Rs.NIL (Previous Year Rs.NIL)

8. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended payment of dividend of Rs.3.50 per fully paid up equity share of Rs.10/- each, aggregating Rs.6 37 lakh, including Rs.1 09 lakh dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on 31st March, 2018, subject to members approval at the ensuing 30th Annual General Meeting.

9. The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable,

10. APPROVAL OF FINANCIAL STATEMENTS

The Financial Statements were approved for issue by the Board of Directors at its meeting held on 12th April, 2018.

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Mar 31, 2017

1 Cash and Cash Equivalents includes deposits maintained by the Company with banks, which can be withdrawn by the Company at any point of time without prior notice or penalty on the principal.

The Company does not receive or, does not make any payment in Cash. Hence, Cash balance as on 8th November 2016 and as on 30th December 2016 was NIL.

2. There is no principal amount and interest overdue to Micro and Small Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company.

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan debt investments.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

3. Corporate Social Responsibility (CSR)

a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs, 52.09 lakh (Previous Year Rs, 62.13 lakh)

b) Expenditure related to Corporate Social Responsibility is Rs, 70 Lakh (Previous Year Rs, 70 lakh ).

4.RELATED PARTY DISCLOSURE

i) As per Ind AS 24, the disclosures of transactions with the related parties are given below:

List of related parties where control exists and also related parties with whom transactions have taken place and relationships: Sr Name of the Related Party Relationship

No._

i) Reliance Industries Limited Entity Exercising Significant Influence

ii) Reliance Europe Limited Associate

iii) Shri Dilip V. Dherai Key Managerial Personnel

iv) Shri Tapas Mitra (Upto 12-01-2017) Key Managerial Personnel

v) Shri Sridhar Kothandaraman Key Managerial Personnel (Upto 13-07-2016)

vi) Shri Salil Mishra (w.e.f. 12-01-2017) Key Managerial Personnel

vii) Shri Shailesh Dholakia (w.e.f 13-07-2016)_Key Managerial Personnel_

Note: Figures in italic represents Previous Year''s amounts.

(1) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.

(2) Review of outstanding balances is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates. These balances are unsecured and their settlement occurs through Banking channel.

ii) General description of lease terms:

a) Assets are generally given on lease for the period of five years.

b) Lease rentals are charged on the basis of agreed rate of interest.

5. Income Tax assessments of the Company have been completed up to Assessment Year 2014-15. There is no disputed demand outstanding up to the said Assessment Year.

6. Estimated amount of contracts remaining to be executed on capital account is Rs, NIL (Previous Year Rs, NIL) and not provided for (net of advances)

7. CAPITAL MANAGEMENT AND FINANCIAL INSTRUMENTS

8. Capital Management

The Company manages its capital to ensure that it will continue as going concern while maximizing the return to stakeholders. The company manages its capital structure and make adjustment in light of changes in business condition. The overall strategy remains unchanged as compare to last year.

Gearing Ratio

There is no Debt in the Company as on 31.03.2017 and 31.03.2016. Thus, Gearing Ratio is NIL as on 31.03.2017 and 31.03.2016.

9. Financial Instruments

Valuation

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

a) The fair value of investment in quoted Equity Shares and Mutual Funds is measured at quoted price or NAV.

b) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

The financial instruments are categorized into two levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; and

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Liquidity Risk

Liquidity risk is the risk that suitable sources of funding for the company''s business activities may not be available. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due, so that the company is not forced to obtain funds at higher rates. The Company monitors rolling forecasts of the Company''s cash flow position and ensure that the Company is able to meet its financial obligation at all times including contingencies.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due causing financial loss to the company. It arises from cash and cash equivalents, financial instruments and principally from credit exposures to customers relating to outstanding receivables. The Company deals with highly rated counter parties.

10. The Company is mainly engaged in ''Infrastructure Activity'' catering to Indian customers. All the activities of the Company revolve around this main business. Accordingly, the Company has only one identifiable segment reportable under Ind AS 108 "Operating Segment". The Executive Director (the ''Chief Operational Decision Maker as defined in IND AS 108 - Operating Segments) monitors the operating results of the entity''s business for the purpose of making decisions about resource allocation and performance assessment.

Revenue of Rs, 70 50.84 lakh ( Previous year Rs, 63 35.07 lakh ) arose from sale of services to Reliance Industries Limited (Entity exercising significant influence, the largest customer). No other single customer contributed 10% or more to the Company''s revenue for both FY 2016-17 and FY 2015-16.

11. DETAILS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN AND SECURITIES PROVIDED DURING THE YEAR COVERED UNDER SECTION 186 (4) OF THE COMPANIES ACT, 2013.

i) Loans given Rs, NIL (Previous year Rs, NIL)

ii) Investments made Rs, NIL (Previous year Rs, NIL)

iii) Guarantees given and Securities provided by the Company in respect of loan Rs, NIL (Previous year Rs, NIL)

12. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended payment of dividend of Rs, 3.50/- per fully paid up equity share of Rs, 10/- each, aggregating Rs, 6 36 lakh including Rs, 1 08 lakh dividend distribution tax for the financial year 2016-17, subject to members approval at the ensuing 29th Annual General Meeting.

13. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors, at its meeting held on 14th April, 2017.

Notes:

I Fair valuation for Financial Assets:

The Company has valued financial assets (other than Investment in associate which are accounted at cost), at fair value. Impact of fair value changes as on the date of transition, is recognized in opening reserves and changes thereafter are recognized in Statement of Profit and Loss or Other Comprehensive Income, as the case may be.

II Deferred Tax:

Income Tax impact on fair valuation of financial assets are given in the Deferred Tax Asset or, Liability.

III Others:

a) Actuarial Gain / (Loss) on Defined Benefit plan given in Other Comprehensive Income and corresponding Income Tax effect was given in the provision for Income Tax for Other Comprehensive Income.

b) As per Ind AS, the liability for propsed dividend is recognized in the year in which it has been declared and approved.

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Mar 31, 2016

1.1 Gross Block includes Rs, 53 00.88 lakh (Previous Year Rs, 53 00.88 lakh) being the amount added on revaluation of Plant and Machiner y as at 01.04.1997.

1.2 Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortisation and Deplition. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account of the year ended 31st March, 2015, amounting to Rs, 1 02.87 lakh.

1.3 Capital Work-in-Progress include Rs, 56.83 lakh (Previous Year Rs, 1 32.49 lakh) on account of Capital Goods Inventory.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the Actuary.

The expected rate of return on Plan Assets is determined considering several applicable factors mainly, the composition of Plan Assets held, assessed risks, historical result of return on Plan Assets and the Company''s policy for Plan Asset Management.

2. SEGMENT INFORMATION

The Company is mainly engaged in Infrastructure Activity in India. All activities of the Company revolve around this main business. As such, there are no separate reportable segments as per the Accounting Standard (AS) - 17 "Segment Reporting".

3. RELATED PARTY DISCLOSURE

As per Accounting Standard 18, disclosures of the transactions with the related parties as defined in the Accounting Standard are given below.

(i) List of related parties with whom transactions have taken place and relationships:

Name of the Related Party Relationship

Reliance Industries Limited Entity Exercising Significant Influence

Reliance Europe Limited Associate

Shri Dilip V. Dherai Key Managerial Personnel

4. Charity and Donations include expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof: Rs, 70 lakh (previous year Rs, 70 lakh).

Gross amount required to be spent as per aforesaid provision is Rs, 62.13 lakh.

The amount spent on CSR activity during the financial year 2015 - 16 was utilised for promoting Health Care, including Preventive Health Care.

5. Income tax assessments of the Company have been completed up to Assessment Year 2012 - 13. There is no disputed demand outstanding up to the said Assessment Year.

6. Estimated amount of contracts remaining to be executed on capital account is Nil (Previous Year Rs, 52.14 lakh) and not provided for (net of advances).

7. Details of Loans given, Investments made, Guarantees given and Securities provided during the year covered under Section 186(4) of the Companies Act, 2013:

i) Loans given Rs, Nil (Previous Year Rs, Nil)

ii) Investment made Rs, Nil (Previous Year Rs, Nil)

iii) Guarantees given and Securities provided by the Company in respect of loan Rs, Nil (Previous Year Rs, Nil)

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Mar 31, 2015

1. Income tax assessments of the Company have been completed up to Assessment Year 2012-2013. The disputed demand outstanding up to the said Assessment Year is Rs. Nil (Previous Year Rs. 2.34 lakh).

2. Estimated amount of contracts remaining to be executed on capital account is Rs. 52.14 lakh (Previous Year Rs. 32.20 lakh) and not provided for (net of advances).

3. Details of Loans given, Investments made, Guarantees given and Securities provided covered under Section 186(4) of the Companies Act, 2013:

i) Loans given Rs. Nil (Previous year Rs. Nil).

ii) Investments made Rs. Nil (Previous Year Rs. Nil).

iii) Guarantees given and Securities provided by the Company in respect of loans Rs. Nil (Previous Year Rs. Nil).

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Mar 31, 2014

1. SEGMENT INFORMATION

The Company is mainly engaged in Infrastructure Activity in India. All activities of the Company revolve around this main business. As such, there are no separate reportable segments as per the Accounting Standard on Segment Reporting (AS - 17).

2. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, disclosures of the transactions with the related parties as defined in the Accounting

Standard are given below:

(i) List of Related Parties with whom transactions have taken place and Relationships : Name of the Related Party Relationship

Reliance Industries Limited Entity exercising significant influence

Shri Dilip V. Dherai Key Managerial Personnel

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Mar 31, 2013

1.1 Leasehold Land includes Rs. 23.44 lakh (Previous Year Rs. 23.44 lakh) in respect of which lease deed is pending execution.

1.2 Gross Block includes Rs. 53 00.88 lakh being the amount added on revaluation of Plant and Machinery as at 01.04.1997. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 34.03 lakh (Previous Year Rs. 42.90 lakh) and an equivalant amount has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account.

* includes provision for loss on impairment, Rs. 0.75 lakh (Previous Year Rs. 0.75 lakh).

A. Defined Benefit Plan :

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors mainly, the composition of plan assets held, assessed risks, historical result of return on plan assets and the Company''s policy for plan asset management.

2. SEGMENT INFORMATION :

The Company is mainly engaged in Infrastructure Activity in India. All activities of the Company revolve around this main business. As such, there are no separate reportable segments as per the Accounting Standard on Segment Reporting (AS - 17).

3. Income tax assessments of the Company have been completed up to Assessment Year 2010-2011. The total demand raised by the Income Tax department up to the said assessment year is Rs. 32.80 lakh (Previous Year Rs. 1 38.08 lakh). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

4. Estimated amount of contracts remaining to be executed on capital account is Rs. 20 42 lakh (Previous Year Rs. 4 19.05 lakh) and not provided for (net of advances).

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Mar 31, 2012

1 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

2. Leasehold Land includes Rs. 23.44 lakh (Previous Year Rs. 23.44 lakh) in respect of which lease deed is pending execution.

3. Gross Block includes Rs. 5300.88 lakh being the amount added on revaluation of Plant and Machinery as at 01.04.1997. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 42.90 lakh (Previous Year Rs. 54.06 lakh) and an equivalant amount has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account.

* includes provision for loss on impairment, Rs. 0.75 lakh (Previous Year Rs. 0.75 lakh),

4. Balance with banks include Rs. 75.61 lakh (Previous Year Rs. 62.91 lakh) earmarked for dividend payment.

B. Defined Benefit Plan

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The expected rate of return on plan assets is determined considering several applicable factors mainly, the composition of plan assets held, assessed risks, historical result of return on plan assets and the Company's policy for plan asset management.

5. SEGMENT INFORMATION

The Company is mainly engaged in Infrastructure Activity in India. All activities of the Company revolve around this main business. As such, there are no separate reportable segments as per the Accounting Standard on Segment Reporting (AS - 17).

6. Income tax assessments of the Company have been completed up to Assessment Year 2009-2010. The total demand raised by the Income Tax department up to the said assessment year is Rs. 138.08 lakh (Previous Year Rs. 148.85 lakh). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

7. Estimated amount of contracts remaining to be executed on capital account is Rs. 419.05 lakh (Previous Year Rs. 59.06 lakh) and not provided for (net of advances).

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Mar 31, 2011

1. The previous years figures have been reworked, regrouped, rearranged and reclassified, wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2. Gross Block of Fixed Assets include Rs. 530,088 thousand (Previous Year Rs. 530,088 thousand) on account of revaluation of Fixed Assets carried out in the past. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 5,406 thousand (Previous Year Rs. 6,814 thousand) and an equivalent amount has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account..

3. As per Accounting Standard 15 "Employee Benefits" the disclosures of Employee benefits as defined in Accounting Standard are given below: Defined Contributions Plan:

Defined Benefit Plan :

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

(i) Reconciliation of opening and closing balances of Defined Benefit Obligation

SCHEDULE L

NOTES ON ACCOUNTS (continued)

(ii) Reconciliation of opening and closing balances of fair value of plan assets

(v) Details of Investments for employees gratuity fund scheme managed by a Life Insurance Corporation of India are not available with the Company.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors mainly, the composition of plan assets held, assessed risks, historical result of return on plan assets and the Companys policy for plan asset management.

4. Segment Information :

The Company is mainly engaged in Infrastructure Activity in India. All activities of the Company revolve around this main business. As such, there are no separate reportable segments as per the Accounting Standard on Segment Reporting (AS - 17).

5. Related Party Disclosures :

As per Accounting Standard 18, disclosures of the transactions with the related parties as defined in the Accounting Standard are given below:

(ii) Transactions during the year with related parties :

Note : Figures in brackets represent previous years amount. Disclosure in respect of Material Related Party Transactions :

Transactions with Subsidiaries disclosed above were only with Reliance Corporate Centre Limited and relates to the previous year.

6. Finance Lease Disclosures :

(i) Assets given on finance lease :

(ii) General description of Lease terms :

a) Assets are given on lease for period of five years.

b) Lease rentals are charged on the basis of agreed rate of interest.

9. Managerial Remuneration :

(i) The Company has been advised that computation of net profits for the purpose of managerial remuneration under Section 349 of the Companies Act, 1956 need not be enumerated, since no commission by way of percentage of profit is payable for the year to any of the Directors of the Company.

(ii) Establishment and Other expenses include Managerial Remuneration by way of :-

The above remuneration excludes provision for gratuity and unencashed leave since these are based on actuarial valuation done on an overall company basis.

(iii) Miscellaneous Expenses include Rs. 400 thousand (Previous Year Rs. 400 thousand) towards sitting fees paid to non-executive directors.

12. Additional Information :

(iii) Income tax assessments of the Company have been completed upto Assessment Year 2009-2010. The total demand raised by the Income Tax department upto the said assessment year is Rs. 14,885 thousand (Previous Year Rs. 14,520 thousand). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

14. Additional information required under paras 3, 4 and 4A to 4D of Part II of Schedule VI of the Companies Act, 1956 are given to the extent applicable.

NOTE : (1) The Proxy, to be valid, should be deposited at the Registered Office of the Company at NKM International House, 5th Floor, 178 Backbay Reclamation, Behind LIC Yogakshema Building, Babubhai Chinai Road, Mumbai – 400 020 not less than forty-eight hours before the time fixed for holding the meeting or adjourned meeting.

(2) A Proxy need not be a Member of the Company.

** (3) This is only optional. Please put a ‘X in the appropriate column against the resolutions indicated in the Box. If you leave the ‘For or ‘Against column blank against any or all the resolutions, your Proxy will be entitled to vote in the manner as he/she thinks appropriate. Should you so desire, you may also appoint the Chairman or the Company Secretary of the Company as your Proxy, who shall carry out your mandate as indicated above in the event of a poll being demanded at the meeting.

(4) Appointing a proxy does not prevent a member from attending the meeting in person if he so wishes.

(5) In the case of jointholders, the signature of any one holder will be sufficient, but names of all the jointholders should be stated.

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Mar 31, 2010

1. The previous years figures have been reworked, regrouped, rearranged and reclassified, wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2. Gross Block of Fixed Assets include Rs.530,088 thousand (Previous Year Rs.530,088 thousand) on account of revaluation of Fixed Assets carried out in the past. Consequent to the said revaluation there is an additional charge of depreciation of Rs. 6814 thousand (Previous Year Rs. 8,589 thousand) and an equivalent amount has been withdrawn from Revaluation Reserve and credited to the Profit and Loss Account.

3. As per Accounting Standard 15 "Employee Benefits" the disclosures as defined in Accounting Standard are given below: Defined Contribution Plans:

Defined Benefit Plan :

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimates of rate of escalation in salary is considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The expected rate of return on plan assets is determined considering several applicable factors mainly, the composition of plan assets held, assessed risks, historical result of return on plan assets and the Companys policy for plan asset management.

4. Segment Information :

The Company is mainly engaged in Infrastructure Activity in India. All activities of the Company revolve around this main business. As such, there are no separate reportable segments as per the Accounting Standard on Segment Reporting (AS - 17).

5. Managerial Remuneration :

(i) The Company has been advised that computation of net profits for the purpose of managerial remuneration under Section 349 of the Companies Act, 1956 need not be enumerated, since no commission by way of percentage of profit is payable for the year to any of the Directors of the Company.

(iii) Income tax assessments of the Company have been completed upto Assessment Year 2007-2008. The total demand raised by the Income Tax department upto the said assessment year is Rs. 14,520 thousand. Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.