1.20. Provisions, contingent liabilities and contingent assets:

Provisions are recognised only when:

i) a Company entity has a present obligation (legal or constructive) as a result of a past event;
and

ii) it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation; and

iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when
the effect of time value of money is material, the carrying amount of the provision is the present
value of those cash flows. Reimbursement expected in respect of expenditure required to settle a
provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

i) a present obligation arising from past events, when it is not probable that an outflow of
resources will be required to settle the obligation; and

ii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions,
contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic
benefits expected to be received under such contract, the present obligation under the contract is
recognised and measured as a provision.

1.21. Commitment:

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) estimated amount of contracts remaining to be executed on capital account and not provided
for;

b) uncalled liability on shares and other investments partly paid;

c) funding related commitment to associate companies; and

d) other non-cancellable commitments, if any, to the extent they are considered material and
relevant in the opinion of management.

Other commitments related to sales/procurements made in the normal course of business are not
disclosed to avoid excessive details.

1.22. Statement of cash flows:

Statement of cash flows is prepared segregating the cash flows into operating, investing and
financing activities. Cash flow from operating activities is reported using indirect method adjusting
the net profit for the effects of:

i) changes during the period in operating receivables and payables transactions of a non-cash
nature;

ii) non-cash items such as depreciation, provisions, deferred taxes, unrealised gains and losses;
and

iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude
items which are not available for general use as on the date of Balance Sheet.

1.23. Earnings per share:

The Company presents basic and diluted earnings per share data for its ordinary shares. Basic
earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders
of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding, adjusted for own
shares held, for the effects of all dilutive potential ordinary shares.

1.24. Key source of estimation:

The preparation of financial statements in conformity with Ind AS requires that the management of
the Company makes estimates and assumptions that affect the reported amounts of income and
expenses of the period, the reported balances of assets and liabilities and the disclosures relating
to contingent liabilities as of the date of the financial statements. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful
lives of property, plant and equipment & intangible assets, expected credit loss on loan books,
future obligations in respect of retirement benefit plans, fair value measurement etc. Difference, if
any, between the actual results and estimates is recognised in the period in which the results are
known.

Notes: Nature and purpose of reserve

(i) Statutory reserve (Reserve u/s. 45-IA of the Reserve Bank of India Act, 1934 (the "RBI Act,
1934")

Reserve is created as per the terms of section 45-IC(1) of the Reserve Bank of India Act, 1934 as a
statutory reserve.

(ii) General reserve

Amounts set aside from retained profits as a reserve to be utilised for permissible specified purpose
as per prevailing law for the time being.

(iii) FVTOCI equity investments

The Company has elected to recognise changes in the fair value of investments in equity securities
(other than investment in subsidiaries and associate) in other comprehensive income. These changes
are accumulated within the FVTOCI equity investments reserve within equity.

(a) Defined contribution plan

The Company's contribution to provident fund are considered as defined contribution plans. The
Company's contribution to provident fund aggregating ' 20.23 lakhs (31st March, 2024: ' 20.50
lakhs) has been recognised in the statement of profit and loss under the head employee benefits
expense.

(b) Defined benefit plan:

Gratuity

The Company operates a defined benefit plan (the "gratuity plan") covering eligible employees. The
gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has
completed five years of service is entitled to specific benefit. The level of benefits provided depends
on the member's length of service and salary at retirement age/ resignation date.

The defined benefit plans expose the Company to risks such as actuarial risk, liquidity risk, legislative
risk.

These are discussed as follows:

Actuarial risk: It is the risk that benefits will cost more than expected. This can arise due to one of the
following reasons:

Adverse salary growth experience: Salary hikes that are higher than the assumed salary escalation
will result into an increase in obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate
assumption than the gratuity benefits will be paid earlier than expected. Since there is no condition
of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain
depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal
rate assumption than the gratuity benefits will be paid earlier than expected. The impact of this will
depend on whether the benefits are vested as at the resignation date.

Liquidity risk: Employees with high salaries and long durations or those higher in hierarchy,
accumulate significant level of benefits. If some of such employees resign / retire from the Company,
there can be strain on the cash flows.

Legislative risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the
plan assets due to change in the legislation/regulation. The government may amend the Payment
of Gratuity Act, 1972, thus requiring the companies to pay higher benefits to the employees. This
will directly affect the present value of the defined benefit obligation and the same will have to be
recognized immediately in the year when any such amendment is effective.

Note No. 48 : (Contd.)

B. Measurement of fair values

i) Valuation techniques and significant unobservable inputs

The carrying amounts of financial assets and liabilities which are at amortised cost are considered
to be the same as their fair values as there is no material differences in the carrying values
presented.

ii) Financial instruments - fair value

The fair value of financial instruments as referred to in note (A) above have been classified into
three categories depending on the inputs used in the valuation technique. The hierarchy gives
the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and lowest priority to unobservable inputs (Level 3 measurement).

The categories used are as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices;

Level 2: The fair value of financial instruments that are not traded in active market is determined
using valuation technique which maximizes the use of observable market data and rely as
little as possible on entity specific estimates. If all significant inputs required to fair value on
instrument are observable, the instrument is included in level 2; and

Level 3: If one or more of significant input is not based on observable market data, the instrument
is included in level 3.

iii) Transfers between levels I and II

There has been no transfer in between level I and level II.

iv) Valuation techniques
Investment in equity instruments

The majority equity instruments held by the Company are actively traded on stock exchanges
with readily available active prices on a regular basis. Such instruments are classified as level 1.

Investments in mutual Funds are valued as per the NAV prevailing at the end of the financial
years and such investments are classified as level 1.

Equity investments in unquoted instruments are fair valued using the valuation technique and
accordingly classified as level 3.

C. Capital

The Company maintains an actively managed capital base to cover risks inherent in the business and
is meeting the capital adequacy requirements of the NBFC's Sector regulator and supervisor, RBI.
The adequacy of the Company's capital is monitored using, among other measures, the regulations
issued by RBI.

The Company has complied in full with all its externally imposed capital requirements over the
reported period. Equity share capital and other equity are considered for the purpose of Company's
capital management.

C.1 Capital management

The primary objectives of the Company's capital management policy are to ensure that the Company
complies with externally imposed capital requirements and maintains strong credit ratings and
healthy capital ratios in order to support its business and to maximise shareholder value.

The Company manages its capital structure and makes adjustments to it according to changes in
economic conditions and the risk characteristics of its activities. In order to maintain or adjust the
capital structure, the Company may adjust the amount of dividend payment to shareholders, return
capital to shareholders or issue capital securities. No changes have been made to the objectives,
policies and processes from the previous years. However, they are under constant review by the
Board.

*Please refer Note No. 42 A .

CRAR for 2024-25 & 2023-24 has been calculated on the basis of RBI Circular No. RBI/19-20/170 DOR
(NBFC). CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020.

Note No. 49 : Financial risk management objectives and policies:

The Company's principal financial liabilities comprise borrowings and trade payables. The main purpose
of these financial liabilities is to finance the Company's operations and to support its operations. The
Company's financial assets include Investments, Loan, Trade Receivables and Cash and Cash equivalents
that derive directly from its operations.

The Company is exposed to credit risk, liquidity risk and market risk. The Company's board of directors
has an overall responsibility for the establishment and oversight of the Company's risk management
framework. The board of directors has established the risk management committee, which is responsible
for developing and monitoring the Company's risk management policies. The committee reports to the
board of directors on its activities.

The Company's risk management policies are established to identify and analyse the risks faced by
the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits.
Risk management policies and systems are reviewed to reflect changes in market conditions and the
Company's activities.

The Company's risk management committee oversees how management monitors compliance with the
Company's risk management policies and procedures and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company.

1) Credit risk

Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual
obligations and arises principally from the Company's receivables from customers and loans.

The carrying amounts of financial assets represent the maximum credit risk exposure.

Trade Receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its
customer base, including the default risk associated with the industry.

An impairment analysis is performed at each reporting date based on the facts and circumstances
existing on that date to identify expected losses on account of time value of money and credit risk.
For the purposes of this analysis, the trade receivables are categorised into groups based on days
past due.

Investments

The investments of the Company are in the group companies which includes investment in
subsidiaries companies and an associate.

The company has also made investments in the units of mutual funds on the basis of risk and returns
of the respective scheme.

Cash and cash equivalent and Bank deposits

Credit risk on cash and cash equivalent and bank deposits is limited as the Company generally invests
in term deposits with banks.

2 a) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations
associated with its financial liabilities. The Company's approach in managing liquidity is to ensure
that it will have sufficient funds to meet its liabilities when due.

The Company is monitoring its liquidity risk by estimating the future inflows and outflows during
the start of the year and planned accordingly the funding requirement. The Company manages its
liquidity by term loans, inter-corporate deposit and investment in mutual funds.

The table below summarises the maturity profile of the Company's non-derivative financial liabilities
based on contractual undiscounted payments along with its carrying value as at the balance sheet
date.

2 b) Liquidity Coverage Ratio (LCR)

The Liquidity Coverage Ratio (LCR) is one of the key parameters closely monitored by RBI to enable a
more resilient financial sector. The objective of the LCR is to promote an environment wherein balance
sheet carry a strong liquidity for short term cash flow requirements. To ensure strong liquidity NBFCs
are required to maintain adequate pool of unencumbered High-Quality Liquid Assets (HQLA) which
can be easily converted into cash to meet their stressed liquidity needs for 30 calendar days. The LCR
is expected to improve the ability of financial sector to absorb the shocks arising from financial and/
or economic stress, thus reducing the risk of spill over from financial sector to real economy.

For the purpose of HQLA the Company considered: (1) All the contractual debt repayments, (2)
committed credit facilities contracted with customers, and (3) other expected cash outflows. Inflows
comprises of: (1) expected receipt from all performing ICDs, and (2) liquid investment which are
encumbered and have not been considered as part of HQLA.

3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices.

Market risk includes interest rate risk and foreign currency risk. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

4) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. Floating rate instruments exposes the Company to Cash
flow interest risk, whereas fixed interest rate instruments expose the Company to fair value interest
risk.

5) Expected Credit Loss

Expected Credit loss is a calculation of the present value of the amount expected to be lost on a
financial asset, for financial reporting purposes. Credit risk is the potential that the obligor and
counterparty will fail to meet its financial obligations to the lender. This requires an effective
assessment and management of the credit risk at both individual and portfolio level.

The key components of Credit Risk assessment are:

1. Probability of Default (PD): represents the likelihood of default over a defined time horizon.

2. Exposure at Default (EAD): represents how much the obligor is likely to be borrowing at the time
of default.

3. Loss Given Default (LGD): represents the proportion of EAD that is likely to be lost post-default.

The definition of default is taken as 90 days past due for all retail and corporate loans.

Delinquency buckets have been considered as the basis for the staging of all loans in the following
manner:

• 0-30 days past due loans classified as stage 1

• Between 31-90 days past due loans classified as stage 2 and

• Above 90 days past due loans classified as stage 3

EAD is the total amount outstanding including accrued interest as on the reporting date.

EAD is the total amount outstanding including accrued interest as on the reporting date.

Note No. 51 : i. The company has no immovable property whose title deeds are not held in the
name of the company.

ii. The Company has not revalued its Property, Plant and Equipment accordingly
disclosure as to whether the revaluation is based on the valuation by a registered
valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation)
Rules, 2017 is not applicable to the Company.

iii. No proceedings have been initiated or pending against the company for holding
any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and the rules made thereunder, for the financial year 2024-25.

iv. The Company is not declared as wilful defaulter by any bank or financial Institution
or other lender.

v. The company has any not entered into any transactions with companies which are
struck off under section 248 of the Companies Act, 2013 or section 560 of Companies
Act, 1956 during the financial year ended 31st March, 2025.

vi. During the year Company has not advanced or loaned or invested funds (either
borrowed funds or share premium or any other sources or kind of funds) to any
other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary
shall

(i) 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

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

vii. During the year Company has 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

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

viii. The Company has no such transaction which are not recorded in the books of
accounts during the year and also there are not such unrecorded income and related
assets related to earlier years which have been recorded in the books of account
during the year.

ix. The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year.

x. The Company does not have any charge or satisfaction which is yet to be registered
with the Registrar of Companies (ROC) beyond the statutory period.

xi. The Company has complied with the number of layers prescribed under clause (87)
of section 2 of the Act read with Companies (Restiriction on number of Layers) Rules,
2017.

Note 52: Previous year figures have been regrouped / reclassified whereever necessary.

Note 53: The above financial statements have been reviewed by the audit committee and subsequently
approved by the Board of Directors at its meeting held on 26th May, 2025.

Summary of material accounting policies 1

See accompanying notes forming part of the financial statements 2 to 53

As per our Report of even date For and on behalf of the Board of Directors of

Pilani Investment and Industries Corporation Limited

For Maheshwari & Associates For Agrawal Subodh & Co D. K. Mantri A. V. Jalan R. P. Pansari

Chartered Accountants Chartered Accountants Director Director Chief Executive Officer

Firm Registration No.:311008E Firm Registration No.: 319260E (DIN: 00075664) (DIN: 01455782)

CA. Bijay Murmuria CA. Ruru Banerjee J. K. Singhania R. S. Kashyap

Partner Partner Chief Financial Officer Company Secretary

Membership No.: 055788 Membership No. 053597 Place: Kolkata

Place: Kolkata Place: Kolkata Dated: 26th May, 2025

Dated: 26th May, 2025 Dated: 26th May, 2025