(p) Provisions and contingent liabilities

Provisions are recognized when the Company has a present, legal or constructive obligation as a result of
a past event and it is probable that an outflow of resources will be required to settle the obligation, and a
reliable estimate of the amount of the obligation can be made. Provisions are determined based on the
best estimate required to settle the obligation at the Balance Sheet date. Provisions are reviewed at each
Balance Sheet date and adjusted to reflect current best estimates.

Provisions are measured at the present value of management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine
the present value is a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The increase in the provision due to the passage of time is recognized
as interest expense.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the financial statements. A disclosure
for a contingent liability is made where there is a possible obligation arising out of past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or a present obligation arising out of a past

event where it is either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

(q) Paid-up equity

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

(r) Dividends

The Company recognizes a liability to make cash or non-cash distributions to equity holders of the Company
when distribution is authorized and the distribution is no longer at the discretion of the Company. As per
the corporate laws in India, a distribution is authorized when it is approved by the shareholders. A
corresponding amount is recognized directly in equity.

(s) Earnings per share

(i) Basic Earnings per Share

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the financial
year. Earnings considered in ascertaining the Company's earnings per share is the net profit for the
period after deducting any attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods presented is adjusted for events, such
as bonus shares, other than the conversion of potential equity shares that have changed the number
of equity shares outstanding, without a corresponding change in resources.

(ii) Diluted Earnings per Share

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

B. Significant Accounting Policies:

This note provides a list of the significant accounting policies adopted in the preparation of these standalone
financial statements. These policies have been consistently applied to all the years presented, unless otherwise
stated.

(a) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Board of Directors that
makes strategic decisions for the Company. Refer note 36 for segment information presented.

(b) Foreign currency translation
Functional and presentation currency

Items included in the standalone financial statements of the Company are measured using the currency of
the primary economic environment in which the entity operates ('the functional currency'). The standalone
financial statements are presented in Indian rupee (INR), which is the Company's functional and presentation
currency.

Initial Recognition

Foreign currency transactions are recorded in Indian currency, by applying the exchange rate between the
Indian currency and the foreign currency at the date of transaction.

Conversion

Monetary items, designated in foreign currencies are revalued at the rate prevailing on the date of
Balance Sheet.

Exchange Differences

Exchange differences arising on the settlement and conversion of foreign currency transactions are
recognized as income or as expenses in the year in which they arise, except in cases where they relate to

the acquisition of qualifying assets, in which cases they were adjusted in the cost of the corresponding
asset.

(c) Leases

The determination of whether a contract is (or contains) a lease is based on the substance of the contract
at the inception of the lease. The contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration.

Company as a Lessee

At the commencement date, a lessee shall recognise a right-of-use asset and a lease liability. A lessee shall
measure the lease liability at the present value of the lease payments that are not paid at that date. The
lease payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the lessee shall use the lessee's incremental
borrowing rate.

The Company uses the practical expedient to apply the requirements of Ind AS 116 to a portfolio of leases
with similar characteristics if the effects on the financial statements of applying to the portfolio does not
differ materially from applying the requirement to the individual leases within that portfolio.

However, when the lessee and the lessor each have the right to terminate the lease without permission
from the other party with no more than an insignificant penalty the Company considers that lease to be no
longer enforceable. Also according to Ind AS 116, for leases with a lease term of 12 months or less
(short-term leases) and for leases for which the underlying asset is of low value, the lessee is not required
to recognize right-of-use asset and a lease liability. The Company applies both recognition exemptions.

Right of use asset

Right-of-use assets, which are included under property, plant and equipment, are measured at cost less
any accumulated depreciation and, if necessary, any accumulated impairment. The cost of a right-of-use
asset comprises the present value of the outstanding lease payments plus any lease payments made at or
before the commencement date less any lease incentives received, any initial direct costs and an estimate
of costs to be incurred in dismantling or removing the underlying asset. In this context, the Company also
applies the practical expedient that the payments for non-lease components are generally recognized as
lease payments.

If the lease transfers ownership of the underlying asset to the lessee at the end of the lease term or if the
cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the right-of-use asset
is depreciated to the end of the useful life of the underlying asset. Otherwise, the right-of-use asset is
depreciated to the end of the lease term.

Lease liability

Lease liabilities, which are assigned to financing liabilities, are measured initially at the present value of
the lease payments. Subsequent measurement of a lease liability includes the increase of the carrying
amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease
payments made.

Lease modification

For a lease modification that is not accounted for as a separate lease, the Company accounts for the re¬
measurement of the lease liability by making a corresponding adjustment to the right-of-use asset.

Company as Lessor

A lessor shall classify each of its leases as either an operating lease or a finance lease. A lease is classified
as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an
underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks
and rewards incidental to ownership of an underlying asset.

Amounts due from lessees under finance leases are recorded as receivables at the company's net investment
in the leases. Finance lease income is allocated to accounting periods to reflect a constant periodic rate of
return on the net investment outstanding in respect of the lease.

Where the Company is a lessor under an operating lease, the asset is capitalised within property, plant and
equipment and depreciated over its useful economic life. However, if there is no reasonable certainty that
the Company will obtain possession of the asset upon end of the lease term, the asset is depreciated over

the shorter of the estimated useful life of the asset and the lease term.

Rental income from operating lease is recognised on a straight-line basis over the term of the relevant
lease unless the payments to the lessor are structured to increase in line with expected general inflation to
compensate for the lessor's expected inflationary cost increases or another systematic basis is available.
Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period in which they are earned.

(d) Post-employment and other employee benefits

Post-employment benefits are employee benefits (other than termination benefits and short-term
employee benefits) that are payable after the completion of employment.

Provident fund

Provident fund is a defined contribution plan covering eligible employees. The Company and the eligible
employees make a monthly contribution to the provident fund maintained by the Regional Provident Fund
Commissioner equal to the specified percentage of the basic salary of the eligible employees as per the
scheme. The contributions to the provident fund are charged to the statement of profit and loss for the
year when the contributions are due. The Company has no obligation, other than the contribution payable
to the provident fund.

Gratuity

At present the Company has no Gratuity plan asset. The present value of the obligation under such defined
benefit plan is determined based on the actuarial valuation using the Projected unit credit method.

Remeasurements, comprising of actuarial gains and losses, excluding amounts included in net interest on
the net defined benefit liability and the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised immediately in the balance sheet as asset/liability with
a corresponding debit or credit to retained earnings through OCI in the period in which they occur.

Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognised in statement of profit and loss on the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related restructuring costs

• Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognises the following changes in the net defined benefit obligation as an expense in
the statement of profit and loss:

• Service costs comprising of current service costs, past-service costs, gains and losses on curtailments
and non-routine settlements; and

• Net interest expense or income
Compensated Absences

Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short¬
term employee benefit. The Company measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting
date. The Company treats accumulated leave expected to be carried forward beyond twelve months, as
long-term employee benefit for measurement purposes. Such long-term compensated absences are
provided for based on the actuarial valuation using the projected unit credit method at the reporting date.

Actuarial gains/losses are immediately taken to the statement of profit and loss and are not deferred. The
Company presents the entire leave encashment liability as a current liability in the balance sheet, to the
extent it does not have an unconditional right to defer its settlement for twelve months after the reporting
date. Where the Company has the unconditional legal and contractual right to defer the settlement for a
period beyond twelve months, the same is presented as non-current liability.

2. Significant accounting judgements, estimates and assumptions

The preparation of the Company's standalone financial statements requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent liabilities. This note provides an overview of the
areas that involve a higher degree of judgments or complexities and of items which are more likely to be
materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.
Detailed information about each of these judgments, estimates and assumptions is mentioned below.

Judgments, estimates and assumptions are continually evaluated. They are based on historical experience and
other factors, including expectations of future events that may have a financial impact on the Company and
that are believed to be reasonable under the circumstances.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described below. The Company based its assumptions and estimates
on parameters available when the financial statements were prepared. Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that are
beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

i. Fair value measurement of unquoted financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets, their fair value is measured using valuation techniques.
The inputs to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgement is required in establishing fair values. Judgements include considerations
of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could
affect the reported fair value of financial instruments. See Note 33 for further disclosures.

ii. Deferred Tax

At each balance sheet date, the Company assesses whether the realization of future tax benefits is
sufficiently probable to recognize deferred tax assets. This assessment requires the use of significant
estimates with respect to assessment of future taxable income. The recorded amount of total deferred
tax asset could change if estimates of projected future taxable income or if changes in current tax regulations
are enacted.

(b) Terms/ rights attached to equity shares

The Company has only one class of issued equity shares having a par value of Rs.5/- per share. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The
dividend, proposed by the Board of Directors, if any, 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 surplus assets of the Company, remaining after distribution of all preferential amounts.
The dividend paid during the year Rs. Nil (F.Y. 2023-24 - Rs. Nil)]

(c) Aggregate number of bonus shares issued, shares issued for consideration other than cash
and shares bought back during the period of five years immediately preceding the reporting
date

There are no bonus shares issued, shares issued for consideration other than cash and shares bought back
during the period of five years immediately preceding reporting date.

Nature and purpose of reserves:

i General reserve : Under the erstwhile Companies Act, 1956, a general reserve was created through an
annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent
to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage
of net profit to general reserve has been withdrawn. There is no movement in General Reserve since transfer
under the scheme of arrangement.

ii Capital reserve : It is the reserve pertaining to the investment undertaking transferred to the Resultant
Company, i.e. BF Investment Ltd., Consequent to the scheme of arrangement approved by High Court of
judicature, Mumbai during F.Y. 2009-2010.

iii Capital Redemption Reserve : An erstwhile subsidiary of BF Utilities Ltd. (amalgamated company) had
preference capital. At the time of redemption of said preference capital, Redemption reserve was created,
which has since got transferred to BF Investment Ltd. by means of scheme of arrangement.

iv Statutory Reserve Fund : Under sec 45IC(1) of RBI act, every NBFC has to transfer 20% of it's post tax
profits to a corpus termed as Reserve Fund.

v FVTOCI Equity investment reserve: The Company has elected to recognise changes in the fair value of
investment in equity shares in other comprehensive income. These changes are accumulated within the
FVTOCI investment reserve within equity. The Company will transfer amounts from the said reserve to
retained earnings when the relevant equity shares are de-recognised.

32 Gratuity and other post-employment benefit plans
Gratuity plan
Unfunded scheme

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment
of Gratuity Act, 1972 and the Scheme framed by the Company. Under the Act, every employee who has completed
five years of service is entitled to specific benefit. The level of benefits provided depends on the employee's
length of service and salary at retirement age. Every employee who has completed five years but not more than
fifteen years of service gets a gratuity on departure at 15 days salary (last drawn) for each completed year of
service as per the provisions of the Payment of Gratuity Act, 1972. Every employee who has completed fifteen
years of service gets a gratuity on departure at one month's salary (last drawn) for each completed year of
service, subject to maximum for 20 months' salary as per the Scheme of the Company.

Risk exposure and asset-liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies
take on uncertain long-term obligations to make future benefit payments.

1) Liability risks

a) Asset-liability mismatch risk

Risk arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching
duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation
swings caused by interest rate movements.

b) Discount rate risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in
practice can have a significant impact on the defined benefit liabilities.

c) Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes.
Rising salaries will often result in higher future defined benefit payments resulting in a higher present
value of liabilities especially unexpected salary increases provided at management's discretion may lead
to uncertainties in estimating this increasing risk.

2) Asset risks

At present the Company has not opted for any asset plan.

In respect of the above plans, the most recent actuarial valuation of the plan assets and the present value of
the defined benefit obligation were carried out as at 31 March 2025 by a member firm of the Institute of
Actuaries of India. The present value of the defined benefit obligation, and the related current service cost
and past service cost, were measured using the projected unit credit method.

The following table summarises the components of net benefit expense recognised in the statement of
profit and loss and the funded status and amounts recognised in the balance sheet for the gratuity plan.

The principal assumptions used in determining gratuity for the Company's plan is shown
below:

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 an active market is determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on
entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the
instrument is included in level 2.

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

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- The use of quoted market prices or dealer quotes for similar instruments

- The fair value for preference shares is determined using discounted cash flow analysis (KSL Holding
Private Limited, Kalyani Technoforge Limited and Kalyani Financial Services Private Limited)

- The fair value for loans is determined using discounted cash flow analysis (Loans to BF Utilities Limited,
Nandi Infrastructure Corridor Enterprise Limited and Nandi Economic Corridor Enterprises Limited).

- The fair value for compulsorily convertible debentures is determined using asset approach (Net Asset
Value method).

- The fair value for unquoted equity shares are determined using cost approach.

iii) Valuation process

The Company performs the valuations of assets and liabilities required for financial reporting purposes. The
Company appoints external valuation experts whenever the need arises for level 3 fair valuation. Discussions
of valuation processes and results are held between the Company and the valuation experts periodically, in
line with the Company's annual reporting period.

iv) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of such financial assets and liabilities are a reasonable approximation of their fair
values.

34 Financial risk management

Presented below is a description of the risks (market risk and liquidity risk) together with a sensitivity analysis,
performed annually, of each of these risks based on selected changes in market rates and prices. These analyses
reflect management's view of changes which are reasonably possible to occur over a one-year period.

I Market Risk
A Price risk

The Company's exposure to equity securities price risk arises from investments held by the Company and
classified in the balance sheet whether at fair value through Other Comprehensive Income or at fair
value through profit and loss.

To manage its price risk arising from investments in equity securities, the Company diversifies the portfolio.

The majority of Company's equity investments are publically traded and are included in the BSE and NSE
indices.

II Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through
an adequate amount of committed credit facilities to meet obligations when due and to close out market
positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in
funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of
the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition,
the Company's liquidity management policy involves projecting cash flows and considering the level of liquid
assets necessary to meet these debt financing plans.

i) Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on
their contractual maturities:

36Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The board of directors has been identified as the chief operating decision maker.

The Company is in the business of making investments in group companies, focusing on earning income through
dividends, interest and gains on investment held, which is a single segment in accordance with Ind AS 108 -
"Operating segment" notified pursuant to Companies (Indian Accounting Standards) Rules, 2015 as amended.

All assets are in India.

37 Corporate social responsibility (CSR)

The Company has formed Corporate Social Responsibility (CSR) Committee and has also adopted a CSR Policy in
accordance with the provisions of section 135 of the Companies Act, 2013 and the Companies (Corporate Social
Responsibility Policy) Rules, 2014. The Company recognizes CSR spends as and when incurred. Relevant details for
the financial year covered by these statements are as under.

The Company receives majority of its dividends from Indian companies that comply with the provisions of section
135 of the Act. As per Companies (Corporate Social Responsibility Policy) Rules, 2014 such dividend amount is
excluded from the net profit for the calculation of amount of CSR expenditure for the period.

Details of shortfall and reasons for shortfall

During the year ended March 31, 2025, as against the required expenditure of Rs. 2.02 Million, the amount of
Rs. 2.02 million remain unspent. The unspent amount for the year ended March 31, 2025 has been transferred to
the unspent CSR account and the same shall be utilised by the Company in the next 3 years for CSR projects
undertaken by the Company.

3 8 Legal title to some of the assets vested and transferred to the Company in pursuance of the Composite Scheme
of Arrangement approved by the Honourable High Court of judicature at Bombay, as per Order dated 5^th February,
2010 referred to herein before, could not be transferred in the name of the Company as at 31^st March, 2025. The
Company is in the process of completing the required legal formalities.

3 9 Long term loans given :

The Company has given letter of subordination to Nandi Economic Corridor Enterprises Ltd. (NECE) and Airro
(Mauritius) Holdings V, whereby the Company has agreed to subordinate the interest free unsecured loan of Rs.
1,160,520,067 (Previous Year: Rs. 1,160,520,067) granted by it to NECE, until the entire stakeholding of Airro
(Mauritius) Holdings V in NECE Ltd. is completely sold off or all the amounts payable by NECE Ltd. to Airro
(Mauritius) Holdings V in terms of the Shareholders Agreement dated 24th December, 2010, between Airro
(Mauritius) Holdings V and NECE Ltd. are fully paid off. The Company has given Interest free unsecured loans of
Rs. 105,000,000/- (P.Y. Rs. 130,000,000/-) and Rs. 30,000,000/- (P.Y. Rs.30,000,000/-) to BF Utilities Ltd. &
Nandi Infrastructure Corridor Enterprise Ltd. respectively. These loans are repayable over 10 & 30 year period
respectively, commencing from 1st April, 2018.

42 Additional regulatory information required by Schedule III to the Companies Act, 2013:

i) The Company does not have any benami property held in its name. No proceedings have been initiated on or
are pending against the Company for holding benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and Rules made thereunder.

ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or
government or any government authority.

iii) The Company has complied with the requirement with respect to number of layers as prescribed under
section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules,
2017.

(iv) Utilisation of borrowed funds and share premium:

- The Company has 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

- The 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:

(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.

(v) There is no income surrendered or disclosed as income during the year in tax assessments under the Income
Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.

(vi) The Company did not have any material transactions with companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

(vii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

4 4 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current
year's classification / disclosure.

As per our attached report of even date, For and on behalf of the Board of Directors of

BF INVESTMENT LIMITED

For P. G. BHAGWAT LLP S. G. Joglekar B. S. Mitkari

Chartered Accountants Director Director

(FRN No. 101118W/ W100682) DIN: 00073826 DIN: 03632549

Purva Kulkarni Akshay Jagtap G. P. Pendse

Partner Chief Executive Officer & Company Secretary

Membership No. 138855 Chief Financial Officer Membership No. : A64136

Place : Pune Place : Pune

Date : May 29, 2025 Date : May 29, 2025