h) Provisions and contingencies:

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the amount
of the obligation. If the effect of the time value of
money is material, provisions are determined
by discounting the expected future cash flows
at a pre-tax rate that reflects current market
assessments of the time value of money and
the risks specific to the liability. Unwinding of
the discount is recognized in the Statement of
Profit and Loss as a finance cost. Provisions are
reviewed at each balance sheet date and are
adjusted to reflect the current best estimate.
Provisions are not recognized for future
operating losses.

Contingent liabilities are disclosed when there is
a possible obligation arising from 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
that arises from past events 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. Information on
contingent liability is disclosed in the notes to
the financial statements. Contingent assets are
not recognized. However, when the realization is
virtually certain, then the related asset is no longer
a contingent asset, but it is recognized as an asset.

i) Income Taxes:

Income tax expense consists of current
and deferred tax.

Current Income Tax:

Current Income Tax liabilities are measured at
the amount expected to be paid to the taxation
authorities using the tax rates and tax laws that
are enacted or substantively enacted at the end
of the reporting period. Management periodically
evaluates positions taken in the tax returns with
respect to situations in which applicable tax
regulations are subject to interpretation and
creates provisions where appropriate.

Deferred Tax:

Deferred Tax is provided, using the liability
method, on temporary differences between the tax
bases of assets and liabilities and their carrying
amounts in the financial statements. Deferred
Income Tax is determined using the tax rates
and tax laws that are enacted or subsequently
enacted at the end of the reporting period.

Deferred Tax liabilities are recognised for all
temporary differences. Deferred tax assets
are recognised for all deductible temporary
differences, the carry forward of unused tax
credits and unused tax losses only if it is probable
that future taxable amounts will be available to
utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset
when there is a legally enforceable right to offset
current tax assets against current tax liabilities
and the deferred tax balances relate to the
same taxation authority. Current tax asset and
liabilities are offset where the company has a
legally enforceable right and intends either to

settle on net basis, or to realise the asset and
settle the liability simultaneously.

Current and deferred tax is recognised in
the statement of profit & loss, except to the
extent that it relates to items recognised in
other comprehensive income or directly in
equity. In this case, the tax is also recognised
in other comprehensive income or directly in
equity, respectively.

j) Leases:

The Company, as a lessee, recognises a right
of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the
right to control the use of an identified asset.
Initially the right-of-use assets measured at
cost which comprises initial cost of the lease
liability adjusted for any lease payments
made at or before the commencement
date plus any initial direct costs incurred.
Subsequently measured at cost less any
accumulated depreciation/ amortisation,
accumulated impairment losses, if any and
adjusted for any remeasurement of the
lease liability.

The right-of-use assets is depreciated/
amortised using the straight-line method
from the commencement date over the
shorter of lease term or useful life of
right-of-use asset.

The Company measures the lease liability at
the present value of the lease payments that
are not paid at the commencement date of
the lease. The lease payments are discounted
using the interest rate implicit in the lease,
if that rate can be readily determined. If
that rate cannot be readily determined, the
Company uses incremental borrowing rate.
For short-term and low value leases, the
Company recognises the lease payments as
an operating expense on a straight-line basis
over the lease term.

B) Other Accounting Policies:

a) Measurement of fair values:

A number of the Company’s accounting policies
and disclosures require measurement of fair
values, for both financial and non-financial assets
and liabilities.

Fair values are categorized into different levels in
a fair value hierarchy based on the inputs used in
the valuation techniques as follows.

- Level 1: quoted prices (unadjusted) in active
markets for identical assets and liabilities.

- Level 2: inputs other than quotes prices
included in Level 1 that are observable for
the asset or liability, either directly (i.e., as
prices) or indirectly (i.e., derived from prices).

- Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

When measuring the fair value of an asset or a
liability, the Company uses observable market
data as far as possible. If the inputs used to
measure the fair value of an asset or a liability
fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised
in its entirely in the same level of the fair value
hierarchy as the lowest level input that is
significant to the entire measurement.

The Company recognises transfers between
levels of the fair value hierarchy at the end
of the reporting period during which the
change has occurred.

Further information about the assumptions
made in measuring fair values is included in the
following notes:

- Refer Note 40 - financial instruments.

b) Property, Plant and Equipment:

De-recognition

An asset’s carrying amount is written down
immediately to its recoverable amount if the
asset’s carrying amount is greater than its
estimated recoverable amount.

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from
the continued use of the asset. Gain and loss on
disposal or retirement of an item of property,
plant and equipment is determined by comparing
the sales proceeds with the carrying amount.
These are recognised in profit or loss.

c) Intangible assets:

Identifiable intangible assets are recognised
when the Company controls the asset and, it is
probable that future economic benefits attributed
to the asset will flow to the Company and the cost
of the asset can be reliably measured.

Intangible assets with finite useful lives that
are acquired separately are measured on initial
recognition at cost. Following initial recognition,
such intangible assets are carried at cost less
accumulated amortisation and accumulated
impairment losses.

Amortisation methods and periods

Estimated useful life of Intangible assets are
considered as 5 years. Intangible assets are
amortised over its useful life. The amortisation
period and the amortisation method for an
intangible asset are reviewed at the end of each
reporting period. Changes in the expected useful
life or the expected pattern of consumption
of future economic benefits embodied in the
asset are considered to modify the amortisation
period or method, as appropriate, and are
treated as changes in accounting estimates.
The amortisation expense on intangible assets
with finite life is recognised in the statement of
profit and loss.

Software is amortised over useful life of 5 years.
Derecognition:

An intangible asset is derecognised on disposal,
or when no future economic benefits are expected
from use or disposal. Gains or losses arising from
derecognition of an intangible asset, measured
as the difference between the net disposal
proceeds and the carrying amount of the asset,
are recognised in profit or loss when the asset
is derecognised.

d) Investment property:

An investment property is derecognized upon
disposal or when the investment property is
permanently withdrawn from use and no future
economic benefits are expected from the disposal.
Any gain or loss arising on Derecognition of the
property (calculated as the difference between
the net disposal proceeds and the carrying
amount of the asset) is included in Statement of
Profit and Loss in the period in which the property
is derecognized.

Subsequent expenditure

Subsequent costs are included in the asset’s
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with the
item will flow to the Company. All other repair and
maintenance costs are recognised in statement
of profit and loss as incurred. Any gain or loss
on disposal of investment property calculated
as the difference between the net proceeds from
disposal and the carrying amount of the item is
recognised in Statement of Profit and Loss. Though
the Company measures investment property
using cost-based measurement, the fair value of
investment property is disclosed in the note no
6.06 of the standalone financial statements.

Depreciation

Depreciation on Investment Property has been
provided as per Written down Value method as
per the useful life indicated in Part ‘C’ of Schedule
II of the Act which is 60 years.

e) Impairment of Non-Financial Assets:

The Company assesses at each reporting date
whether there is an indication that an asset may be
impaired. If any indication exists, or when annual
impairment testing for an asset is required, the
Company estimates the asset’s recoverable
amount. An asset’s recoverable amount is the
higher of an asset’s or Cash Generating Unit’s
(CGU) fair value less costs of disposal and its
value in use. It is determined for an individual
asset, unless the asset does not generate cash
inflows that are largely independent of those
from other assets or a groups of assets. Where
the carrying amount of an asset or CGU exceeds
its recoverable amount, the asset is considered
impaired and is written down to its recoverable
amount. An impairment loss is recognised
immediately in profit or loss.

In assessing the value in use, the estimated future
cash flows are discounted to their present value
using pre-tax discount rate that reflects current
market assessments of the time value of money
and the risks specific to the asset. In determining
fair value less costs of disposal, recent market
transactions are taken into account, if no such
transactions can be identified, an appropriate
valuation model is used.

When an impairment loss subsequently
reverses, the carrying amount of the asset or a
CGU is increased to the revised estimate of its

recoverable amount, but so that the increased
carrying amount does not exceed the carrying
amount that would have been determined had no
impairment loss been recognised for the asset or
CGU in prior years. A reversal of an impairment
loss is recognised immediately in profit or loss.

f) Cash and cash equivalents:

Cash and cash equivalents includes cash on hand
and at banks, deposits held at call with banks and
other short-term, highly liquid investments with
original maturities of three months or less that
are readily convertible to known amounts of cash
and which are subject to an insignificant risk of
changes in value.

g) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker.

The board of directors (“chief operating decision
maker” as defined under Ind AS 108) assesses
the financial performance and position of the
Company and makes strategic decisions.

h) Foreign currency transactions:

The transactions denominated in currencies other
than the Company’s functional currency (foreign
currencies) are translated at the exchange rate
prevailing on the date of transaction. Monetary
items denominated in foreign currencies at the
reporting date are translated into functional
currency using the exchange rate prevailing
at that date. Non-monetary items that are to
be carried at historical cost are recorded
using exchange rate prevailing on the date
of transaction. Non- monetary items that are
carried at fair value, that are denominated in
foreign currencies, are retranslated at the rates
prevailing at the date when the fair value was
determined. Any income or expenses on account
of exchange difference either on settlement or on
translation is recognised as profit or loss.

i) Financial Instrument:

Financial Assets

A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instruments of another
entity. Classifications of financial instruments
are in accordance with the substance of the
contractual arrangement and as per the
definitions of financial assets, financial liability
and an equity instruments.

• Financial Assets

i) Initial recognition and measurement:

At initial recognition, the Company measures
a financial asset (other than financial asset
at fair value through profit or loss) at its fair
value plus or minus, transaction costs that
are directly attributable to the acquisition
of the financial asset. Transaction costs of
financial assets carried at fair value through
profit and loss are expensed in the statement
of profit & loss.

Subsequent measurement:

For the purpose of subsequent measurement,

financial assets are classified in four categories:

• Debt instrument at amortised cost:

Assets that are held within a business model
for collection of contractual cash flows
where those cash flows represent solely
payments of principal and interest are
measured at amortised cost. A gain or loss
on a debt investment that is subsequently
measured at amortised cost and is not part
of a hedging relationship is recognised in
profit or loss when the asset is derecognised
or impaired. Interest income from these
financial assets is included in other income
using the effective interest rate method.

• Debt instrument at fair value through other
comprehensive income (FVTOCI):

Assets that are held within a business model
for collection of contractual cash flows and
for selling the financial assets, where the
asset’s cash flows represent solely payments
of principal and interest, are measured at
fair value through other comprehensive
income (FTVOCI).

Interest income is recognised in profit or
loss for FVTOCI debt instruments. For the
purposes of recognising foreign exchange
gains and losses, FVTOCI debt instruments
are treated as financial assets measured
at amortised cost. Thus, the exchange
differences on the amortised cost are
recognised in profit or loss and other changes
in the fair value of FVTOCI financial assets
are recognised in other comprehensive
income and accumulated under the heading
of ‘Reserve for debt instruments through
other comprehensive income’. When the
investment is disposed of, the cumulative
gain or loss previously accumulated in this
reserve is reclassified to profit or loss.

• Debt instrument at fair value through profit
and loss (FVTPL):

Financial assets that do not meet the criteria
for amortised cost or FVTOCI are measured
at FVTPL. In addition, debt instruments that
meet the amortised cost criteria or the
FVTOCI criteria but are designated as at
FVTPL are measured at FVTPL. Financial
assets at FVTPL are measured at fair value
at the end of each reporting period, with any
gains or losses arising on remeasurement
recognised in profit or loss. The net gain or
loss recognised in profit or loss incorporates
any dividend or interest earned on the
financial asset and is included in the ‘Other
income’ line item.

• Equity instruments:

On initial recognition, the Company can make
an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent
changes in fair value in other comprehensive
income pertaining to investments in equity
instruments. This election is not permitted
if the equity investment is held for trading.
These elected investments are initially
measured at fair value plus transaction
costs. Subsequently, they are measured at
fair value with gains and losses arising from
changes in fair value recognised in other
comprehensive income and accumulated
in the ‘Reserve for equity instruments
through other comprehensive income’. The
cumulative gain or loss is not reclassified to
profit or loss on disposal of the investments.

Investments in equity instruments, other
than Investments in the nature of equity
in subsidiaries and associate (measured
at cost), are classified as at FVTPL, unless
the Company irrevocably elects on initial
recognition to present subsequent changes
in fair value in other comprehensive income
as stated above.

ii) De-recognition:

A financial asset is primarily derecognised
i.e., removed from Company’s financial
statement when:

• The rights to receive cash flows from asset
have expired or

foreign currency and translated at the spot
rate at the end of each reporting period.

For foreign currency denominated financial
assets measured at amortised cost and
FVTPL, the exchange differences are
recognised in profit or loss except for
those which are designated as hedging
instruments in a hedging relationship.

For the purposes of recognising foreign
exchange gains and losses, FVTOCI debt
instruments are treated as financial assets
measured at amortised cost. Thus, the
exchange differences on the amortised
cost are recognised in profit or loss and
other changes in the fair value of FVTOCI
financial assets are recognised in other
comprehensive income.

Financial Liabilities and equity instruments:

De - recognition:

A financial liability is de-recognised when the
obligation under the liability is discharged
or cancelled or expires. When an existing
financial liability is replaced by another from
the same lender on substantially different
terms, or the terms of an existing liability are
substantially modified, such an exchange or
modification is treated as the de-recognition
of the original liability and the recognition
of a new liability. The difference in the
respective carrying amounts is recognised
in profit or loss.

Offsetting of Financial Instruments:

Financial assets and financial liabilities
are offset and the net amount is reported
in the balance sheet if there is a currently
enforceable legal right to offset the
recognised amounts and there is an intention
to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

j) Classification of assets and liabilities as
current and non - current:

The Company presents assets and liabilities in
Balance Sheet based on current/non-current
classification.

An asset is classified as current when it is:

a) Expected to be realised or intended to be
sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading,

c) Expected to be realised within twelve months
after the reporting period, or

d) Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

a) It is expected to be settled in normal
operating cycle,

b) It is held primarily for the purpose of trading,

c) It is due to be settled within twelve months
after the reporting period, or

d) There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the
acquisition of assets for processing and their
realisation in cash or cash equivalents. Based
on the nature of activities of the Company and
the normal time between acquisition of assets
and their realisation in cash or cash equivalents,
the Company has determined its operating
cycle as twelve months for the purpose of
classifications of its assets and liabilities as
current and non-current.

Deferred tax assets and liabilities are classified
as non-current assets and liabilities.

k) Other Income:

Interest income

Interest income from financial assets is
recognised when it is probable that the economic
benefits will flow to the Company. Such interest
income is recognised using effective interest rate
method. The effective interest rate is the rate
that discounts estimated future cash receipts
through the expected life of financial assets to the
carrying amount of financial assets.

Interest on income tax refund is recognised on
receipt of refund order.

Dividends

Dividends are recognised when the shareholder’s
right to receive payment is established.

(l) Contract asset

A contract asset (Trade Receivable) is the right to
consideration in exchange for goods or services
transferred to the customer. If the Company
performs part of its obligation by transferring
goods or services to a customer before the
customer pays consideration or before payment is
due, a contract asset is recognized for the earned
consideration when that right is conditional on
the Company’s future performance.

Contract liability

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration from the
customer. If a customer pays consideration
before the Company transfers goods or services
to the customer, a contract liability is recognized
when the payment is received. Contract liabilities
are recognized as revenue when the Company
performs under the contract.

m) Employees benefits:

i) Short-term Employee Benefits:

Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided.
A liability is recognised for the amount
expected to be paid, if the Company has a
present legal or constructive obligation to
pay this amount as a result of past service
provided by the employee, and the amount of
obligation can be estimated reliably.

All employees benefits payable wholly
within 12 months of rendering services
are classified as Short Term obligations.
Benefits such as salaries, wages, short
term compensated absences, performance
incentives, expected cost of bonus and ex-
gratia are recognised during the period

in which the employees renders related
services at the undiscounted amount of the
benefits expected to be paid in exchange
for that service.

ii) Share-based payment transactions

Share-based compensation benefits are
provided to employees of the Company and its
subsidiaries via Employee Stock Option Plan.

The grant date fair value of options
granted under the Employee Option Plan is
recognised as an employee benefits expense
with a corresponding increase in equity, on
a straight-line basis, over the vesting period,
based on the Company’s estimate of equity
instruments that will eventually vest. At the
end of each period, the company revises its
estimates of the number of options that are
expected to vest based on the non-market
vesting and service conditions. It recognises
the impact of the revision to original
estimates, if any, in the Statement of profit
and loss, with a corresponding adjustment
to other equity.

iii) Other long-term benefits

The Company has other long-term benefits
in the form of compensated absences.
The present value of the other long-term
employee benefits is determined based on
actuarial valuation using the projected unit
credit method. The rate used to discount
defined benefit obligation is determined by
reference to market yields at the Balance
Sheet date on Indian Government Bonds for
the estimated term of obligations.

Actuarial gains or losses arising on account
of experience adjustment and the effect
of changes in actuarial assumptions are
recognised as profit or loss.

Gains or losses on the curtailment or
settlement of other long-term benefits
are recognised when the curtailment or
settlement occurs.

n) Borrowing Costs:

General and specific borrowing costs that
are directly attributable to the acquisition,
construction or production of a qualifying asset
are capitalised during the period of time that is
required to complete and prepare the asset for

its intended use. Qualifying assets are assets that
necessarily take a substantial period of time to
get ready for their intended use.

Interest income earned on the temporary
investment of specific borrowings pending their
expenditure on qualifying assets is deducted
from the borrowing costs eligible for such
capitalisation.

Other borrowing costs are expensed in the period
in which they are incurred.

Borrowing costs consist of interest and other
costs that are incurred in connection with the
borrowing of funds.

o) Earnings per share:

Basic earnings per share is calculated by
dividing the net profit or loss (after tax) for the
year attributable to equity shareholders by
the weighted average number of equity shares
outstanding during the year.

Diluted earnings per share is calculated by
dividing the net profit or loss (after tax) for the
year attributable to equity shareholders and
the weighted average number of equity shares
outstanding during the year, both adjusted for the
effects of dilutive potential equity shares.

4 Critical accounting estimates, assumptions
and judgements:

The preparation of the financial statements requires
management to make estimates, judgements and
assumptions that affect the reported balances
of assets and liabilities, disclosure of contingent
liabilities as on the date of financial statements and
reported amounts of income and expenses during
the period. Uncertainty about these assumptions and
estimates could result in outcomes that require a
material adjustment to the carrying amount of assets
or liabilities affected in future periods.

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year. 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.

In the process of applying the Company’s accounting
policies, management has made the following estimates
and judgements, which have significant effect on the
amounts recognized in the financial statement:

(a) Depreciation and useful lives of Property,
Plant and Equipment including Investment
Property

Property, plant and equipment including
Investment Properties are depreciated over the
estimated useful lives of the assets, after taking
into account their estimated residual value.
Management reviews the estimated useful lives
and residual values of the assets annually in
order to determine the amount of depreciation
to be recorded during any reporting period.
The useful lives and residual values are based
on the Company’s historical experience with
similar assets and take into account anticipated
technological changes. The depreciation for
future periods is adjusted if there are significant
changes from previous estimates.

(b) Investment Property

Fair value of Investment Properties is based on
valuations performed by an accredited registered
valuer. The fair value of the Company’s Investment
properties has been arrived at using discounted
cash flow method. Under discounted cash flow
method, cash flow projections based on reliable
estimates of cash flow are discounted. The main
inputs used are rental growth rate, terminal
yields and discount rates which are based on
comparable transactions and industry data.

(c) Recoverability of trade receivables

Judgments are required in assessing the
recoverability of overdue trade receivables and
determining whether a provision against those
receivables is required. The Company uses a
provision matrix to determine impairment loss
allowance on its trade receivables. The provision
matrix is based on its historically observed
default rates over the expected life of the trade
receivables and is adjusted for forward-looking
estimates. At every reporting date, the historical
observed default rates are updated and changes
in the forward-looking estimates are analyzed.

(d) Defined Benefit plan

The cost of the defined benefit plan and other
post-employment benefits and the present
value of such obligation are determined using
actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, mortality rates and
attrition rate. Due to the complexities involved in
the valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed
at each reporting date.

(e) Provisions:

Provisions are recognized in the period when
it becomes probable that there will be a future
outflow of funds resulting from past operations
or events and the amount of cash outflow can
be reliably estimated. The timing of recognition
and quantification of provisions require the
application of judgement to existing facts and
circumstances, which can be subject to change.
Since the cash outflows can take place many years
in the future, the carrying amounts of provisions
are reviewed regularly and adjusted to take
account of changing facts and circumstances.

(f) Impairment of financial assets:

The impairment provisions for financial assets
are based on assumptions about risk of default
and expected cash loss rates. The Company uses
judgement in making these assumptions and
selecting the inputs to the impairment calculation,
based on Company’s past history, existing market
conditions as well as forward looking estimates
at the end of each reporting period.

Estimates and judgements 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. They are continually evaluated.

(g) Fair Value measurement:

When the fair values of financials 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, which involve various
judgements and assumptions.

(h) Tax expense and related contingencies:

The Company’s tax jurisdiction is India. Significant
judgements are involved in determining the
provision for income taxes, including amount
expected to be paid/recovered for uncertain
tax positions. Significant judgement is involved
in determining house property income and
business income. Further, significant judgement
is exercised to ascertain amount of deferred
tax asset (DTA) that could be recognized based
on the probability that future taxable profits will
be available against which DTA can be utilized
and amount of temporary difference in which
DTA cannot be recognized on want of probable
taxable profits.

(i) Assessment of carrying value of investments
in subsidiaries and associates:

In developing the assumptions and estimates
in relation to assessing the carrying value of
Investments in Equity Shares and Investments
in Optionally Convertible Debentures (OCD)/
Optionally Fully Convertible Debentures (OFCD)
of subsidiaries and associates, the Management
has considered the economic conditions
prevailing as at the date of approval of these
financial statements and has used internal and
external sources of information to the extent
determined by it.

6.01 The Company’s investment properties consists of Retail Mall and Commercial properties in India. The Management has
determined that the investment properties consist of One class of asset - Retail Mall and Commercial Property - based
on the nature, characteristics and risks of each property.

6.02 Right on Leasehold Land consist of long term lease rights for the property situated at Phoenix Palladium, Senapati
Bapat Marg, Lower Parel, Mumbai.

6.03 Contractual Obligation

Refer note 47(a) for disclosure of contractual commitments for the acquisition of investment properties.

6.04 Capitalised Borrowing cost

No borrowing costs were capitalised during the current year and previous year.

6.05 Investment Property Pledge as security

Refer note no 20 and 24 for details of mortgage on Freehold Land and Building included in Investment Property

The Company has created a charge, by way of mortgage, on 12,714.25 square meters of its land on Plot B for the loan
taken by its subsidiary, Pallazzio Hotels & Leisure Limited (PHLL) from the banks. The Company has developed a mixed
use retail structure on the said land. Loan amount outstanding for the year end is H21,694.64 Lakhs (31 March 2025:
H24,243.39 Lakhs).

6.06 The Company’s investment properties consist of Retail Mall which has been determined based on the nature,
characteristics and risks of each property. As at 31 March 2026 and 31 March 2025, the fair values of the properties
are H7,52,510 Lakhs and H6,21,200 Lakhs respectively.

The fair value of investment property has been determined by external, independent registered property valuers,
having appropriate recognised professional qualification and recent experience in the location and category of the
property being valued. A valuation model in accordance with that recommended by the international valuation standards
committee had been applied. The Company obtains independent valuations for its investment properties annually and
fair value measurement has been categorised as Level 3. The fair value has been arrived using discounted cash flow
projections based on reliable estimates of future cash flows considering growth in rental of 5% (31 March 2025 : 5%)
and discount rate of 12.90% (31 March 2025 : 12.00%).

6.08 Certain property are leased to tenants under long term operating leases with monthly rental payments (Refer note 38).

6.09 During the year ended 31 March 2026, The Company has demolished one of buildings and accordingly charged
accelerated depreciation of H738.08 Lakhs arising from a change in the estimated useful lives of Investment property.

The Phoenix Mills Limited (PML) (along with its nominee) has 100% stake in Big Apple Real Estate Private Limited (BARE) and BARE has 100% stake
in Blackwood Developers Private Limited (BDPL). BARE has pledged 30% of the shares for BDPL to Kotak Mahindra Investment Limited (KMIL) (31
March 2025 : 30% shares) and has given Non-Disposal Undertaking for balance 70% shares (31 March 2025 : 70% shares).

**SGH Realty LLP & True Value Infrabulid LLP were converted into a private limited company on 29 January, 2025 & 11 January, 2025 respectively.
***10,973 shares are held by a bank in their name as security.

^****Refer note no. 33.01 and 33.03

Pursuant to Framework Agreement dated 24 July 2025, entered into between The Phoenix Mills Limited (Company), Island Star Mall Developers
Private Limited (ISMDPL) (a subsidiary of the Company) and Canada Pension Plan Investment Board, the Company has acquired 62,66,737 equity
shares of ISMDPL.

^AAThe Company was holding investment in 0.000% Compulsorily Convertible Debentures (CCDs) of H10/- each, fully paid-up, issued by Mindstone
Mall Developers Private Limited. During the year the said investment was converted into 18,37,59,415 equity shares of face value H10/- each in
accordance with the terms of issue. Accordingly, the investment has been classified as equity shares.

^AAADuring the year, the Company’s investment in 0.0001% Compulsorily Convertible Debentures (CCDs) of H100/- each, fully paid-up, issued by
Phoenix Retail Private Limited, Vigilant Developers Private Limited, ACME Hospitality Services Private Limited were converted into Optionally
Convertible Debentures of face value H100/- each. Accordingly, the investment has been classified as Optionally Convertible Debentures.

AAAAThe Company was holding investment in 0.000% Compulsorily Convertible Debentures (CCDs) of H10/- each, fully paid-up, issued by
Mirabel Entertainment Private Limited. During the year the said investment was converted into 70,000 equity shares of face value H10/- each in
accordance with the terms of issue. Accordingly, the investment has been classified as equity shares.

Investments in subsidiaries & Associates includes cost of ESOP granted to employees of respective subsidiaries &
associates as under :

(ii) Rights, preferences and restrictions attached to shares including restrictions on the distribution of dividends and
the repayment of capital.

The Company has only one class of equity shares having face value of H2 per share. Each holder of equity shares is
entitled to one vote per share. Equity shareholder are also entitled to dividend as and when proposed by the Board of
Directors and approved by Share holders in Annual General Meeting. In the event of liquidation of the company, the
holder of Equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential
amounts which shall be in proportion to the number of shares held by the shareholders.

1) Charge on the undivided share of land admeasuring approx. 5965.45 sq. mts out of the total freehold land
approximately 7,391.04 sq. mts. on Plot bearing CTS no 141 along with the existing structure G 3 Floors termed as
Phoenix Palladium Mall having an approx BUA of 18,638.86 sq. mts and the proposed structures/new developments
to be constructed as stated below:

• Project Convergence having an approx. BUA of 16,556.77 sq. mts and

• Project Rise 3 having an approx. BUA of 33,816.77 sq. mts

2) Charge on structure of Project Rise 2 excluding Land

3) Right of use for Parking Areas, Pathways, Multiple Entry and exit points and common areas of the
complete land parcel.

The mortgage excludes:

• The portion of MCGM Leasehold land admeasuring 11,811 sq.mts

• Plutocrat’s land admeasuring 13,629.2 sq. mts & the structure built there upon

• Approx BUA of 1,088 sq. mtrs under the ownership of PML (part of Plutocrat Structure)

• Parking Areas, Pathways, Multiple entry & exit points

• The St Regis Hotel (housed in the Company called Pallazzio Hotels & Leisure Limited) including its Entry, Exit,
Pathway, Ramp, Land admeasuring 12,821 sq. mts & other exclusive areas and

• New Development currently termed as Project “Glory”

4) First pari-passu charge by way of hypothecation of escrow and all current assets, movables and inflows from
existing & future sales, leasing, leave & license, CAM, receivables in relation to the Project

5) DSRA for 2 months

6) Endorsement of insurance policy for the Project in favour of the Security Trustee/Lenders.

Above borrowing as on 31 March 2025 are secured by:

1) First Pari Passu Mortgage\charge on Undivided share of land to the extent of approximately 8,279.24 sq. metres
in Plot A out of total area of Plot A admeasuring approximately 21,020.24 sq. metres which comprises of existing
and proposed structures with BUA approximately 37,535.52 sq. metres on Plot A and existing structure with BUA
approximately 14,737.42 sq. metres on Plot B alongwith entire car parking spaces of P1, P2, and P3 levels situated
above Sai Podium at Block 41/47 and entire car parking spaces of P4 and P5 levels situated above Palladium Mall
at Block 34/14B.

The above is part of Larger Property situated at Phoenix Mills Compound, 462, Senapati Bapat Marg, Lower Parel,
Mumbai - 400 013, in the state of Maharashtra, India.

It is hereby clarified that the security excludes -

(i) The portion of MCGM Leasehold Land admeasuring 11,811 sq. mtrs and

(ii) Plutocrat UDS in Plot A to the extent of 13,629.2 sq. mts.

(iii) Plot B Land (Land underneath Palladium Mall)

2) First pari-passu charge by way of hypothecation on all current assets, movables and inflows from existing & future
sales, leasing, leave & license, CAM, receivables in relation to the Project situated at Phoenix Palladium comprising
various zones like Palladium, Sky Zone, Courtyard etc (along with undivided share of the FSI on land) at Senapati
Bapat Marg, Lower parel.

3) First exclusive charge on DSRA in the form of a fixed deposit to be maintained with Bank, and First Pari- Passu
charge on Escrow A/c and All Current A/c.

Interest is calculated on T-Bill / REPO spread / applicable margin. Average rate of Interest varies in the range of
of 6.99% p.a. to 8.35% p.a. ( P.Y 8.29% p.a. to 8.60% p.a ) during the FY 2025-26. Interest is calculated on reference
rate as published by RBI applicable margin.

33.01 During the FY 2025-26, the Company has recognized full impairment of its investment in following Companies under
exceptional items on the basis of determination of recoverable amount in accordance with Ind AS 36.

- Butala Farm Lands Private Limited (wholly owned subsidiary) - H2,505.50 Lakhs

- Pinnacle Real Estate Development Private Limited (wholly owned subsidiary) - H408.94 Lakhs

- Rentceirge Developers Private Limited - H26.00 Lakhs

- Phoenix Digital Technologies Private Limited (wholly owned subsidiary) - H1.00 Lakhs

- Mirabel Entertainment Private Limited (Associates) - H7.53 Lakhs

33.02 Exceptional item for the year ended 31 March 2025 represents gain of H4,737.65 Lakhs on account of Sale of undivided
share in Land and applicable development potential by the Company to its subsidiary, Plutocrat Commercial Real Estate
Private Limited for the consideration of H7,600 lakhs. Figures presented above is net of cost and taxes.

33.03 During the FY 2024-25, the Company conducted an assessment of the recoverable value of its investment in its
subsidiaries in accordance with the requirements of Ind-AS 36 Impairment of Assets.

Certain wholly owned subsidiary Companies had decided to close down their business operations in absence of
significant business activities (subject to necessary approvals). The Company had therefore decided to impair
investments in said wholly owned subsidiaries based on the annual impairment evaluation.

As a result, the carrying amount of the investment was determined to exceed its recoverable amount. The revised
carrying value of the investment in the subsidiaries as at 31 March 2025 is Nil. Accordingly, an impairment loss of the
following subsidiaries have been recognized in the statement of profit and loss under “Exceptional items”;

a. Enhance Holdings Private Limited (wholly owned subsidiary) - H1311.85 Lakhs

b. Bartraya Mall Development Company Private Limited (wholly owned subsidiary) - H564.50 Lakhs

c. Savannah Phoenix Private Limited (wholly owned subsidiary) - H415.53 Lakhs

During the Financial Year ended 31 March 2025, the Company had infused Equity Capital in the said wholly owned
subsidiaries, to support them in clearance of their external liabilities including payment of dues to the group Companies
to fulfil the requirement under Companies Act. Accordingly, provision made earlier against inter-corporate deposits /
advances extended to said group Companies amounting to H1,593.22 Lakhs had been reversed under exceptional item
in statement of Profit and Loss, which resulted into net amount of H698.66 Lakhs.

During the Financial Year ended 31 March 2026, The Ministry of Corporate Affairs has approved the strike off of the
following wholly owned subsidiaries of the Company:

- Enhance Holdings Private Limited

- Bartraya Mall Development Company Private Limited.

Accordingly, the investment in said subsidiaries has been written off during the year.

Options granted to employees under the Employee Option Plan (2018 and 2007 ) are considered to be potential equity
shares. They have been included in the determination of diluted earnings per share to the extent to which they are dilutive.

Details relating to the options are set out in note 37

Face Value of Equity Share is H2 each/-

Note:

Pursuant to the approval of the shareholders at the 119^th Annual General Meeting held on 13 September 2024, the
Bonus Issue Committee of the Board of Directors of the Company, at its meeting held on 23 September 2024, approved
the allotment of 17,87,44,921 Equity shares of H2 each as fully paid up equity shares in the ratio of 1:1 i.e 1 (one) new
fully paid Bonus Shares for every 1 (one) Equity Share (1:1) held by the Equity Shareholders of the Company as on
Record Date i.e. 21 September 2024.

Notes:

1. Salary escalation rate is arrived after taking into account regular increment, price inflation and promotion
and other relevant factors such as supply and demand in employment market.

2. Discount rate is based on prevailing market yields of Indian Government Securities as at balance sheet date
for estimated terms of obligation.

3. Attrition rate/ withdrawal rate is based on company's policy towards retention of employees, historical data
and industry outlook.

4. Expected contribution to defined benefit plans for the next financial year 2026 - 27 is H27.41 Lakhs.

5. The above information is certified by actuary.

6. In accordance with the requirements of Ind AS 19, Employee Benefits, the increase in the present value of the
defined benefit obligation arising from the changes in the law( introduced New labour code on 21^st November
2025) is treated as a plan amendment. Consequently, the resulting past service cost of H42.93 Lakhs has been
recognized as an expense immediately in the Statement of Profit and Loss for the year ended 31 March 2026.

36.02 Defined benefit plans

The company provides gratuity benefit to it's employees which is a defined benefit plan. The present value of obligation
is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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.

These gratuity plan typically expose to the company 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. For other defined benefit
plans, the discount rate is determined by reference to market yield at the end of reporting period on high quality
corporate bonds when there is a deep market for such bonds, if the return on plan asset is below this rate, it will
create a plan deficit.

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 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 benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in salary of plan participants will increase the plan's liability.

37 Share-based payment arrangements:

A. Description of share-based payment arrangements

i. Share option programmes (equity-settled)

The Company has granted stock options under the following employee stock option scheme:

1. 33,90,000 Equity Shares were reserved for allotment of equity shares under Employee Stock Option Scheme 2007

(‘ESOP 2007’). The ESOP 2007 was approved by the Shareholder on January 31, 2008 and was valid for 10 (Ten)
years and thereafter no Grants were allowed be made under the ESOP 2007. All the options granted in ESOP 2007
were vested as per the vesting plan and the last date for exercising the options granted on October 24, 2016 was
October 23, 2024 the ESOP 2007 has expired and is no longer in effect.

During the year, no Equity Shares have been issued and allotted to the eligible employees against exercise of
Options under ESOP 2007.

2. 31,00,000 Equity Shares are reserved for allotment of equity shares under Employee Stock Option Scheme 2018.

Post Bonus Issue, as on September 23, 2024, 59,11,612 Equity Shares are reserved for allotment of equity shares
under Employee Stock Option Scheme 2018. The ESOP 2018 shall remain in effect for a period of 10 (Ten) years i.e
till May 10, 2028 and thereafter no Grants shall be made under the Plan.

During the year 1,11,285 Equity Shares have been issued and allotted to the eligible employees against exercise of
Options under ESOP 2018.

Each option when exercised would be converted into one fully paid-up equity share of H2 each of the Company. The
options granted under ESOP 2007 and options granted under the ESOP 2018 scheme carry no rights to dividends
and no voting rights till the date of exercise.

38 Where Company is a lessor:

(i) The Leave and License agreements are generally for a period of 1 to 5 years. The terms also provide for escalation of
License fees on a periodical basis. Generally, the Company has a right to terminate these agreements by giving advance
notice as stipulated therein.

Future minimum License Fees receivable under Leave and License agreements for non-expired lock in period as at 31
March 2026 are as follows:

Note : The Financial Assets above do not include investments in subsidiaries/associate which are carried at cost in
terms of the option available in Ind AS 27 "Separate Financial Statements".

Fair valuation techniques:

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most
relevant data available.

The following methods and assumptions were used to estimate the fair values

1. Fair value of the Quoted Equity Shares are based on price of equity share on stock exchange.

2. Fair value of the Mutual funds are based on published NAV price .

3. Fair value of unquoted equity shares and Compulsory Convertible Debentures/Optionally Convertible Debentures
are based on Fair value under level 3 of hierarchy (refer note 41).

4. Fair value of Long term Borrowings is calculated based on discounted cash flow.

5. Fair value of Financial Assets & Financial Liability (except Long term Borrowings) are carried at amortised cost and
is not materially different from it’s carrying cost.

41 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

42 Financial risk management objectives and policies

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price
risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and
borrowings and investments in securities.

(i) Foreign currency risk

The Company is exposed to very minimum foreign exchange risk.

(ii) 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. The Company is exposed to interest rate risk pertaining to funds borrowed at
floating interest rates.

Almost 100% of the company’s borrowings are linked to BR Margin. With all other variables held constant,
the following table demonstrates the impact of change in interest rate on borrowing cost on floating rate
portion of loans.

(iii) Commodity and other Price risk

The Company is not exposed to the commodity and other price risk.

(B) Credit risk

Credit risk is the risk of financial loss to the Company that a customer or counter party to a financial instrument
fails to meet its obligations. The Company is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks, mutual funds, financial institutions and
other financial instruments.

Trade receivables and contract assets

The Company extends credit to customers in normal course of business. The Company considers factors such as credit
track record in the market and past dealings for extension of credit to customers. To manage credit risk, the Company
periodically assesses the financial reliability of the customer, taking into account the financial condition, current
economic trends, and analysis of historical bad debts and ageing of accounts receivables. Outstanding customer
receivables are regularly monitored to make an assessment of recoverability. Receivables are provided as doubtful /
written off, when there is no reasonable expectation of recovery. Where receivables have been provided / written off,
the Company continues regular follow up , engage with the customers, legal options / any other remedies available with
the objective of recovering these outstanding's.

The Company is not exposed to concentration of credit risk to any one single customer since services are provided
to vast spectrum. The Company also takes security deposits, advances , post dated cheques etc. from its customers,
which mitigate the credit risk to an extent.

Cash and cash equivalents and other investments

The Company is exposed to counter party risk relating to medium term deposits with banks, mutual fund and debt securities.
The Company considers factors such as track record, size of the institution, market reputation and service standards
to select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the
institutions with which the Company has also availed borrowings.

Exposure to credit risk

The gross carrying amount of financial assets, net of impairment losses recognised represents the maximum credit
exposure. The maximum exposure to credit risk as at March 31,2026 and March 31, 2025 is as follows:

Financial instruments and cash deposits

The Company is exposed to counter party risk relating to medium term deposits with banks, mutual fund and debt securities.
The Company considers factors such as track record, size of the institution, market reputation and service standards
to select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the
institutions with which the Company has also availed borrowings.

(C) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.

The Company’s objective is to maintain at all time optimum levels of liquidity to meet its cash and collateral requirements.
The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for
funds. The current borrowings are sufficient to meet its short to medium term expansion needs. Management
monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.
The Company is required to maintain ratios (such as debt service coverage ratio and secured coverage ratio) as
mentioned in the loan agreements at specified levels and also cash deposits with banks to mitigate the risk of default in
repayments. In the event of any failure to meet these covenants , these loans become callable to the extent of failure
at the option of lenders, except where exemption is provided by lender.

45 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, A Company, meeting the applicability threshold, needs to spend at
least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility
(CSR) activities.

46 Capital management

The primary objective of the Company’s capital management is to maximize the Shareholder’s value. The Company’s
primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital
ratios and safeguard the Company’s ability to continue as a going concern in order to support its business and provide
maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the
cost of capital. No changes were made in the objectives, policies or processes during the year ended 31 March 2026
and 31 March 2025.

For the purpose of the Company’s capital management, capital includes issued capital, share premium and all other
equity reserves. Net debt includes, interest bearing loans and borrowings less Cash and cash equivalents, Bank
Deposits and Current Investments.

47 Capital Commitment and Contingent Liabilities
A Capital Commitment :

Estimated amount of contracts remaining to be executed on capital account and not provided for in the accounts is

H12,085.96 Lakhs (31 March 2025 : H2,587.58 Lakhs) net of advance paid.

B Contingent Liabilities

a The Income tax assessments of the Company have been completed up to Assessment Year 2024-25. The disputed
tax demand outstanding upto the said Assessment year is H6,062.57 Lakhs (31 March 2025 : H13,137.82 Lakhs).
The Company as well as the Income Tax Department are in appeal before the Authorities. The impact thereof, if
any, on the tax position can be ascertained only after the disposal of the appeals. Accordingly, the accounting
impact if any arising there from will be considered in the year of the disposal of the said appeals. Out of the above
amount, H4,630.57 Lakhs (31 March 2025 : H4,630.57 Lakhs) pertain to matters where ITAT orders are in favour of
the Company and the income tax department is in appeal before honourable at High court.

b The Company has received demand on traces for TDS default for Assessment Year 2016-17 to 2019-2020
amounting to H21.11 Lakhs (31 March 2025 : H69.46 Lakhs).The Company had filed an appeal with CIT (A) against
the said demand. For Assessment Year 2016-17 to 2018-19, the CIT(A) directed AO to assist company to file
Form 26A electronically for deletion of demand which is pending . For Assessment Year 2019-20, the appeal is
yet to be decided.

c The Company has received an order of Commissioner of GST & Central Excise from Service Tax Department, in
respect of the Service Tax on renting of immovable property related matter filed by Retailers Association of India
(RAI). The order seeks to recover the interest for delayed payment of service tax at an appropriate rate. The
company has filed an appeal with CESTAT against the said order. The interest liability on such delayed payment
of service tax shall be determined on the basis of the Supreme Court judgement on the RAI members’ Service Tax
matters, which is pending before honourable Supreme court.

d Demand notices received on account of arrears of Provident Fund (P.F.) dues aggregating to H24.72 Lakhs
(31 March 2025 : H24.72 Lakhs) are disputed by the Company. The Company has paid H10.00 Lakhs against the said
P.F. demands to the P.F. authorities.

e Outstanding guarantees given by Banks of H262.58 Lakhs (31 March 2025 : H77.22 Lakhs).

f As per the hotel operating agreement, PML had given unconditional and irrevocable guarantee on behalf of the
Pallazzio Hotels & Leisure Limited ( PHLL) to Starwood Hotels & Resorts India Private Limited. The said guarantee
is outstanding as at 31 March 2026 amounting H3,920.60 Lakhs (previous year : H4,192.55 Lakhs). Further, the
Company has also committed to support PHLL as and when the need arises by infusing the required funds.

g The Company has committed to provide financial support to Starboard Hotels Private Limited as and when
the need arises by infusing the required funds to meets its obligation of debts and other liabilities (current as
well as in future).

h In Suit No.7537 of 1981 (HC Suit No. 337 of 1981) (in the matter of Cotton Corporation of India (CCI) v/s. The
Phoenix Mills Limited (PML)), by an order dated 4 July 2018, the Bombay City Civil Court has directed PML to pay a
sum of H79.66 Lakhs along with interest thereon. PML has challenged the said order in First Appeal No.140 of 2019
and the same is pending adjudication before the Hon’ble Bombay High Court.

i During FY 2023-24, the Company had deposited certain amounts under protest pursuant to GST investigation
proceedings. Out of the said amount, the Company has received a partial refund of H545.71 Lakhs during the
current year. In respect of the balance amount of H316.35 Lakhs, the Company is in the process of filing an appeal
before the GST Appellate Tribunal for H112.67 Lakhs, while an appeal for H203.68 Lakhs is pending before the
Commissioner (Appeals). Based on the expert advice and management assessment, the said amount has been
considered recoverable and accordingly disclosed under “Balance with Government Authorities”.

j During earlier financial years, the Company has received orders from the GST Department for FY 2017-18,
FY 2018-19 and FY 2020-21 raising demands of H326.48 Lakhs, H21.45 Lakhs and H144.26 Lakhs, respectively,
including interest and penalty . The Company has filed appeals against the aforesaid orders before the Joint
Commissioner (Appeals).

k During current financial year, the Company has received order from the GST Department for FY 2019-20 and
FY 2021-22 raising demand of H62.91 Lakhs and H1,424.48 Lakhs respectively (including interest and penalty). The
Company has already filed an appeal against the order pertaining to FY 2021-22 before the Joint Commissioner
(Appeals) and is in the process of filing an appeal against the order pertaining to FY 2019-20 within the
prescribed timelines.

l The above litigations are not expected to have any material adverse effect on financial position of the Company.

48 Municipal Corporation of Greater Mumbai(MCGM) had raised demand of H3,353.17 Lakhs (31 March 2025 : H3,002.18
lakhs) towards property tax for the period April 2010 - March 2026 for Property Tax. The Company had filed a writ
petition bearing number 872 of 2016 dated 21 March 2016 before the Bombay High Court challenging the property
tax assessment of PML and the bills raised by MCGM from financial year 2010 up till financial year 2023. The High
Court vide its order dated 24 April 2019 quashed the Capital Value Rules and allowed PML to pay 50% (fifty per cent)
of the amount demanded (“Interim Order”). MCGM had challenged the Interim Order before the Supreme Court via
Special Leave to Appeal [C] No(s). 17009 / 2019. The Honorable Supreme Court in its interim order dated 29 July 2019
granted PML interim relief to pay the property tax basis the previous Interim Order of Bombay High Court and admitted
the petition. PML has, in accordance with the directions of the Honorable Supreme Court, duly made payments of the
amounts specified under the Interim Order. The Supreme Court vide its order dated 7 November 2022 upheld the order
passed by the Bombay High Court and disposed off the said SLP. MCGM had challenged the Order dated 7 November
2022 before the Supreme Court via Review Petition (Civil) No. 298 of 2023. The Honorable Supreme Court vide its order
dated 14 March 2023 dismissed the said review petition. The Company on conservative basis has accounted for the full
amount of the demands raised by MCGM for the period from April 2010 to March 2026 while continue to pay the 50%
as per the orders of Hon Courts. Post favourable Supreme Court verdict, the Company has not reversed the additional
provision booked in the previous financial years in the absence of the receipt of the revised assessment orders from
MCGM based on the Supreme Court verdict.

The Company has accounted for its share of loss amounting to H1.33 Lakhs (31 March 2025 : H1.29 Lakhs) pertaining to
the financial year 2024-25 in the current Financial year. The share of profit/loss for the current financial year will be
accounted in the books of the Company on the finalisation of the accounts of the firm.

52 The Company was a partner in a Limited Liability Partnership (LLP) firm SGH Realty LLP. The accounts of the LLP firm
were finalised upto period ended 28 January 2025a. The details of the Capital Accounts of the Partners as per the latest
Financial Statements of the LLP firm are as under:-

During the earlier year, the Company has not accounted for its share of profit amounting to H526.47 Lakhs as the
Investment was booked at Cost. During FY 2024-25, the SGH Realty LLP has been converted into SGH Realty Private
Limited, hence the Company has accounted H1,227.48 Lakhs as its share of profit till the date of conversion in FY 2024-25.

53 Additional regulatory information required by Schedule III

i) Details of benami property held

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) Borrowing secured against current assets

Filing of Quarterly returns / stock statements with HDFC Bank Limited, Kotak Mahindra Bank Limited and HSBC India are
not applicable to Phoenix Mills Limited loan facilities and hence, reporting Quarterly return/statements reconciliation
with books of accounts is not applicable.

iii) Wilful defaulter

The Company have not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

iv) Relationship with struck off companies

The Company has below mentioned transaction with Struck off companies under Companies Act, 2013 or
Companies Act, 1956.

50 Particulars of loans given investments made, guarantees given and securities provided :

The Company has complied with provision of section 186 (1) of the Companies Act 2013("the Act"), with respect to
investments made. The Company being infrastructure facilities provider as defined under section 186 of the Act read
with Schedule VI of the Act. The provisions of section 186 (other than clause 1) of the Act with respect to investment,
loans given, guarantees and security provided are not applicable.

51 The Company is a partner in a partnership firm M/s. Phoenix Construction Company. The accounts of the partnership
firm have been finalised upto the financial year 2024-25. The details of the Capital Accounts of the Partners as per the
latest Financial Statements of the firm are as under:-

For list of subsidiaries struck off during the year refer note 43.

v) Registration of charges or satisfaction with Registrar of Companies

All the charges created or satisfied during the year was registered with registrar of companies within the due time.

vi) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

vii) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current financial year.

viii) Undisclosed Income

The Company has not surrendered or disclosed any income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

ix) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

x) Valuation of Property, Plant and Equipment, Intangible Asset

The Company has not revalued its Property, Plant and Equipment (including right-of-use assets) or intangible assets
during the current or previous year.

(Refer note no 5 and 8)

xi) Utilisation of borrowed funds, equity and share premium

The borrowings obtained by the company from banks have been applied for the purposes for which such loans were taken.

xii) Disclosure under Rule 11e

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other persons or entities, including foreign entities (""Intermediaries""),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever (""Ultimate Beneficiaries"") by or on behalf of
the Company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company has not received any funds from any person(s) or entity(ies), including foreign entities (“Funding Parties”),
with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries