b. Terms and rights attached to equity shares

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. The rights of shareholder is governed by the Articles of Association of the company and the Companies Act, 2013.

a. Nature of security and terms of repayment for secured borrowings

Nature of security

(1) Vehicle loan from HDFC Bank amounting to Rs. 0.204 million (Pr. year Rs.2.519 million) is secured by hypothecation of vehicle.

(2) Loan from Yes Bank Limited amounting to Rs.. 1,502.033million (Pr. year Rs.2,246.800 million) is sucured by subservient charge on all current assets and movable fixed assets of the company, both present and future, deposit in debt service reserve account equal to the total amount of scheduled interest payment due for one month and pledge of 2,726 shares in United Spirits Limited, 8,794,000 shares in United Breweries Limited held by the company, 46,45,000 shares in United Breweries Limited held by McDowell Holdings Limited.

(3) Loan from HDFC Limited (including foreign currency denominated loan of USD) amounting to Rs 101.863 million (Pr year Rs 1,521.720 million) are secured by the pledge of 317,030 shares in McDowell Holdings Limited held by the company, mortgage by deposit of title deed of the company's land in Bangalore, the superstructure thereon and assignment of the rent receivable from the property let out, securitization of future sale proceeds from the luxury residential building "Kingfisher Towers

- Residences in UB City", pledge of 10,50,000 shares in United Spirits Limited held by a subsidiary company.

b. Terms of repayment for Unsecured borrowings

(1) Public deposits amounting to Rs 19.396 million

2) Loan from group company

Amounting to Rs.20 million

⁽³⁾ Loan from Others

a) Amounting to Rs.5 million

b) Amounting to Rs.200 million

Terms of repayment

Repayable in 60 equated monthly installments from the date of loan (May 2011) along with interest of 10.25% p.a. Last installment due in April 2016. Loan is since repaid in full and closed.

Moratorium of 24 months followed by 12 equal quarterly installments from the date of each respective disbursement i.e. March 30, 2013. Interest @ 15.00 %. Additional interest rate of 2% for delay in interest payment. Further, 7% p.a on loan is payable as fees. Overdue interest of Rs. 17.114 million is since paid. Although, the loan has been recalled in January 2014 and is overdue for payment as on Balance Sheet date. The Company is negotiating for restoration of the facility.

Loan of Rs.101.863 million is repayable in 119 monthly installments from February 2012. Loan has been fully repaid in April 2016.

Repayable within 1 to 3 years from the date of deposit and not on demand or notice except at the sole discretion of the company. Rate of interest is 11- 11.5%

Overdue for repayment. Rate of interest @ 12% p.a. Extension of Loan term being negotiated with the lender.

Overdue for repayment. Rate of interest @ 12% p.a. Extension of Loan term being negotiated with the lender.

Overdue for repayment. Rate of interest @ 18% p.a. Extension of Loan term being negotiated with the lender.

c) Amounting to Rs.13,374.095 million

d) Amounting to Rs.869.451 million

Repayable in 3 equal installments in March 2019,March 2020 and March 2021. Interest rate is @ 9.50% p.a. Interest payment starts from January 2015. Following the non approval of the loan by shareholders of USL at their EGM on 28th November 2014, the company has stopped accruing interest on this loan w.e.f 1st October 2014.

Repayable as and when company sells its share of units in "Kingfisher Towers - Residences in UB City" and to the extent the sale proceeds are over and above Rs.20,000/- per sft, however, that the entire loan is repayable before the company takes possession of its full share. Rate of interest @ 12%.

a. Terms of repayment for unsecured borrowings

1. Loan from group companies amounting to Rs. 5,834.815 million

2. Loan from others includes Rs.250 million (Pr Rs. 250 million) from LKP Finance Ltd, secured through pledge of shares held by a third party.

3. Short term loan from LKP Finance Limited amounting to Rs.331.420 million (Pr year Rs. 358.049 million) secured through pledge of shares held by a third party.

Note :

1. The possession of KF Villa which was offered as security to SBI and other consortium banks to secure their loan to KFA has been taken over by SBI and others under S AR FE SI Act. Accordingly, amount attributable to land and building of KF Villa has been reduced as above. Since in the Sub Registrar records, the above land and building are shown in the name of the Company, a notional value of ?1 is shown against these assets.

2. The Directorate of Enforcement (ED), Ministry of Finance-Dept. of Revenue, Government of India, vide its Provisional Attachment Order No. 11/2016 dated June 11, 2016, received by the Company, has provisionally attached the immovable properties of the Company based in Bangalore and Mumbai under Section 5(1) of Prevention of Money Laundering Act, 2002 for a period of 180 days from the date of the Order in connection with investigation against Dr. Vijay Mallya, Kingfisher Airlines Limited & Others. The Company is in consultation with its Legal Counsels for taking appropriate steps that may be required including defending the case before the Adjudicating Authority in Delhi pursuant to a Show Cause Notice dated 11th July 2016 received from the Adjudicating Office in this regard.

3. UB City Luxury residential Project

The Company has executed a Joint Development Agreement with a Developer on 26th April, 2010 for development of a luxury residential building to be named as "Kingfisher Towers - Residences at UB City". The development of the above project (in which the Company is entitled to 55% share of super built up area) is under progress.

The Company has issued allotment letters in respect of seven residential units in Kingfisher Towers by collecting booking amounts of Rs.1,582.900 million (Pr year Rs.1,545.184 million).

4. Estimated amount of contracts remaining to be executed on capital account as at 31st March 2016 and not provided for is Rs.27.1 50 million (net of advances) (Pr year Nil ).

Certain aircraft lessors and vendors of Kingfisher Airlines Limited (KFA) have invoked the corporate guarantees given by the company on behalf of KFA. The total amount invoked and outstanding as on March 31, 2016 is Rs.15,275.400 million (Pr year Rs.15,275.400 million) and KFA is under negotiation with the beneficiaries. Also, Consortium of KFA bankers have invoked Company's corporate guarantee and demanded payment of Rs.62,033.500 million due from KFA along with interest, if any, decided by the Court. This matter is being contested by the Company in various Courts. Accordingly, the Company continues to recognize these obligations as only 'contingent liabilities'. Based on management's opinion, no provision is presently considered necessary. In any event, the amount is not quantifiable.

5. Fixed Assets

a) The Company has revalued its land & buildings in Bangalore, as on March 31, 2014 at their Fair Market Value based on Valuation Report of an independent approved valuer and the carrying values of the respective assets have been adjusted accordingly. The incremental appreciation in the value of land arising out of the aforesaid revaluation is '5,835.605 million and that of building is '1,672.987 million. The incremental appreciation of '7,508.592 million has been credited to the Fixed Assets revaluation reserve.

b) The Company owns a valuable trademark which is in the form of the Company logo carried at NIL value. This logo has been licensed to certain Group Company and an erstwhile Group Company, and the Company is earning Logo fee on the same.

c) The Company's share in the constructed area and proportionate share of land in the UB City property had been charged to secure a loan from HDFC Limited. The said loan stands fully repaid, after the balance sheet date.

d) After protracted litigation, SBICAP Trustee Limited, acting as Trustees of the Consortium of Banks of KFA, was permitted to take possession of Kingfisher Villa on 13th May 2016 pursuant to an order of the Hon'ble District Magistrate dated 11thMay 2016 passed under Section 14 of the SARFAESI Act. The Company has since filed an Appeal against the aforesaid order dated 11th May, 2016 before DRT, Mumbai on 18th August 2016. The matter is yet to be listed for hearing and is pending. Although the possession of the KF Villa property has been taken over by the Consortium of Banks, the legal ownership of the property continues to remain with the Company.

6. Investments:

a) The Company has pledged 16,41,570 shares of United Spirits Limited, 4,753,881 shares of Mangalore Chemicals & Fertilizers Limited, 3,17,030 shares of McDowell Holdings Limited, 8,794,000 shares of United Breweries Limited to secure the borrowings of the company along with the borrowings of subsidiary companies and an erstwhile associate company.

b) The Company filed a Suit against ICICI Bank Ltd (hereinafter referred to as "ICICI") and 3i Infotech Trusteeship Services Ltd (hereinafter referred to as "3i Infotech") challenging ICICI's alleged right to sell the 20,14,000 shares (the "NDU shares") of United Breweries Limited by their notice dated 9th February, 2015 on the ground that the Loan Purchase Agreement (LPA) dated 21st December, 2010 entered into with ICICI has ceased to operate consequent upon ICICI transferring, assigning and/or novating all its rights and obligations under the MDRA to a third party and that the claim of Rs.1,462.906 million by ICICI cannot be proceeded against the 20,14,000 shares as the LPA has worked itself out. Although, 3i Infotech and ICICI were restrained from selling the NDU shares initially, subsequently by orders of the Court there was no hindrance for ICICI to sell the said NDU shares. On 5th January 2016, ICICI transferred 19,58,000 NDU shares in their Demat Account. However, on an Application filed by the Consortium of Banks, the DRT vide its order dated 11th January 2016 restrained ICICI from transferring and utilizing the sale proceeds without permission of the DRT. This restraint order is still in force. Pending this, as a matter of prudence the Company has recognized the expense of Rs.1,858.063 million in the books. Further, the balance 56,000 shares of United Breweries Limited are held as investments in the books of the company.

c) Investments as on 31st March, 2016 include 59,1 50,000 shares of Kingfisher Airlines Limited, held in custody of a lender after they have invoked the pledge of the shares.

d) The Preference Shares held in an overseas subsidiary, UB Overseas Limited are to be redeemed anytime at the option of the Company or at the end of 10 years from the date of allotment of shares. The Company also has the option for partial / full conversion of Preference shares into equity shares of UB Overseas Limited, in the ratio of 1 equity share for one preference share held, at face value of USD 1 each to be determined and issued by the Issuer.

e) SREI Infrastructure Finance Limited (SREI) one of the Company's lenders in the previous year, had invoked the Company's pledge and sold 500,000 shares of United Spirits Limited. They had used a portion of the sale proceeds to retire the loan outstanding. SREI was holding a balance of '99.09 crores against their purported dues from KFA. Out of this, Rs.15 crores has been refunded to the Company. From the balance amount of Rs.84.09 crores, SREI has informed that it has further appropriated an amount of Rs.25 crores towards the purported settlement of their dues from KFA. While this appropriation is being contested by the company, efforts are on for recovery of the entire amount of ' 84.09 crores due from SREI. As a matter of accounting prudence, the amount of Rs.25 crores has been provided by the company.

f) The Company had pledged 92,250 shares of United Spirits Limited, to lenders, to secure the borrowings of the Company. The lenders have invoked these shares and the realization thereof has been utilized for the purpose of liquidating the loans of the Company.

g) The Debt Recovery Tribunal has restrained Mangalore Chemicals and Fertilizers Limited ("MCF") and United Breweries Limited vide its order dated 30th September 2015, from disbursement of dividend to the Company, declared at their respective AGM for FY 2014-15. Accordingly, the dividend of '107.016 million declared by MCF is shown as receivable.

h) Based on a critical review during the year of the carrying value of long term strategic investments, the management has provided an amount of Rs.212.464 million, as disclosed in the accounts, as a matter of commercial prudence. While in respect of other investments the matter will be reviewed during the following year based on business plans, investor funding and potential opportunities.

7. Sale of shares in United Spirits Limited (USL)

The Division Bench of the Hon'ble High Court of Karnataka, vide its Order dated 20th December 2013 has set aside the permission granted by the Hon'ble Company Judge under Section 536(2) of the Companies Act 1956 to dispose of the shares of USL in favour of Diageo Plc / Relay BV The Company and Diageo Plc have approached the Hon'ble Supreme Court by way of SLPs challenging the Order of the Division Bench. Pending disposal of the Company's SLP's, the Hon'ble Supreme Court has by its Order dated 10th February, 2014 directed that status quo be maintained in respect of the transaction of sale of shares to Diageo. While this status quo order is still continuing, the adjudication of the Suit is still in progress.

8. Tax provision

There is no income tax liability since the Company has incurred loss for the year. Further, having regard to the adjustments required to be made to the book profit in respect of write-off of certain advances against the provision made for such advances, there would also not be any liability on account of Minimum Alternate Tax.

9. Exceptional items.

Exceptional items comprised of :

a) Profit of Rs.227.458 million on account of sale of 92,250 pledged equity shares in United Spirits Limited by the Company's lenders.

b) A lender to Kingfisher Airlines Limited has sold 19,58,000 pledged equity shares held by the Company in United Breweries Limited. Pursuant to this sale, a profit of Rs.1,773.305 million, along with a loss /expense of Rs. 1,858.063 million and writing down the carrying value of the investments, have been recognized in the accounts.

c) Potential Loss of Rs.70.155 million on account of KFA lender taking over possession of the Company's fixed assets under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 (SARFAESI Act), which has been provided. However, the legal ownership still vest with the Company.

10. (i) KFA lenders have invoked Company's Corporate Guarantee and demanded payment of dues from KFA amounting to Rs.62,033.500 million. The Original Application filed by the Lenders before the Hon'ble DRT is continuing. In one of the Applications preferred by the Consortium of KFA Bankers, the Hon'ble DRT has passed an order lifting the corporate veil of its wholly owned subsidiary. Although this order of the Hon'ble DRT has been stayed by the Hon'ble High Court of Karnataka, the process of adjudicating the Appeal in Hon'ble DRAT is in progress and a decision is awaited.

(ii) The Consortium of KFA Bankers, have sold in periodical lots certain investments belonging to the Company pursuant to the purported pledge. The Company and others have filed a suit in the Hon'ble Bombay High Court (Bombay Suit) against the consortium of lenders, who have advanced loans to KFA, inter alia, challenging the validity of the Corporate Guarantee. The Company has also filed a Notice of Motion in the said Suit for a decree on admission that the extent of the liability under the Corporate Guarantee is restricted to Rs.1,601.43 crores based on admissions by the consortium of lenders. The said Suit and Notice of Motion are pending adjudication in the Hon'ble Bombay High Court.

11. Confirmation of balances from certain Sundry Debtors and Sundry Creditors are awaited. Adjustment for differences, if any, arising out of confirmation and reconciliation thereof would be made in the current year. The Management is of the opinion that the effect of adjustments, if any, is not likely to be significant.

12. The Company has advanced Rs.754 million (Pr year Rs.1,333,240 million to overseas subsidiaries and a domestic associate) to overseas subsidiaries, which have not yet been repaid. In respect of the domestic associate, after a further assessment of its financial condition, the company has decided, as a matter of prudence to write off its dues of Rs.578.960 million after withdrawing the provision made in the previous year. In respect of overseas subsidiaries, no provision has been considered at this stage.

13. Cash in hand includes foreign currency notes.

14. As required under Section 125 (2)(e) of the Companies Act, 2013, the Company has transferred '0.600 million (Pr year Rs.0.777 million) to the Investor Education and Protection Fund (IEPF) during the year. As on March 31, 2016, no amount was due to be transferred to the IEPF.

15. Claim against a banker for restitution of deposits of Rs.609.60 million, which were unilaterally encashed and thereafter appropriated towards their claims against a Group Company is being pursued before the Hon'ble High Court of Karnataka. Appropriate amounts are being shown as recoverable from the said bank.

16. The Company and Kingfisher Finvest India Limited (KFIL) have filed a suit, inter alia, against IDBI Trusteeship Services Limited (IDBI Trusteeship), Indian Global Competitive Fund (IGCF) and SREI Venture Capital Limited (SREI), in the City Civil Court at Calcutta for a declaration that the Security Trustee Agreement dated 30th June, 2008 and the Consolidated Deed of Pledge dated 21st December, 2010 (in respect of pledged shares of United Spirits Limited and KFA held by the Company and KFIL) are void, unenforceable and of no effect. The said suit is pending.

SBICAP Trustee and the Consortium of Banks, which have advanced loans to KFA have filed a suit, inter alia, against IDBI Trusteeship Services Limited, SREI Venture Capital Limited, UBHL and KFIL in the Court of City Civil Judge in Bangalore to enforce their alleged rights under the Release of Residual Interest Agreement dated 21st December, 2010 in respect of sale proceeds remaining after appropriation of USL and KFA shares. On 10th June 2014, IDBI Trusteeship Services Limited transferred the pledged shares to IGCF who in turn sold 4,937,395 shares of United Spirits Limited ("Sold Shares") held by UBHL and KFIL. By an Order of the Hon'ble High Court of Karnataka filed by the Consortium of Banks and which has now been disposed off, IGCF deposited the surplus/balance sales proceeds from the Sold Shares with the Hon'ble High Court of Karnataka and has been restrained from disposing off Rs.690 crores retained by it. The suit is still in progress.

The Company, after taking into account, various issues involved, has, as a matter of prudence and without prejudice to the rights and contentions of the Company in the legal proceedings as well as the stand adopted by KFA against the purported recall of its loans by the lenders, pursuant to which shares pledged by the Company were sold by the lenders, has debited a portion of the sale proceeds of the IGCF sale of investments of Rs.106.30 crores to KFA and written off the same as unrealizable, along with other dues from KFA in the previous year. The balance sale proceeds of Rs.807.46 crores continues to be disclosed as due from IGCF.

Meanwhile, the Consortium of Banks have filed another Application before the Court of the XXVIII Addl. City Civil Judge, Bangalore to direct that a sum of Rs.651.15 crores deposited in the account of Registrar General, Hon'ble High Court of Karnataka as per order dated 20-6-2014 in W.P. No. 25877 be transferred to the credit of SBICAP Trustee Company Limited for appropriation towards the dues payable to the Banks. After hearing the Suit on merits, the Applications preferred by the Consortium of Banks was dismissed.

17. Litigation:

a) The litigation regarding Consortium of Banks filing a suit before the Hon'ble DRT is mentioned in details in para 37(i).

b) Further, three lenders who have extended pre-delivery payment (PDP) loans to KFA for purchase of aircrafts from M/s. Airbus S.A.S. and who claim to be beneficiaries of Corporate Guarantees of the Company, have filed proceedings before the DRT for recovery of total dues amounting to Rs.192.51 crores. By an ex-parte order dated February 4, 2014, in I.A. No. 543/2014, the Hon. DRT has passed an ad-interim order attaching pre-delivery payments made by KFA to M/s. Airbus S.A.S. up to Rs.192.51 crores. Thereafter, vide final order dated 28th March 2016 issued a Demand Notice directing the Company to pay an amount of Rs.192,51,08,484.67. Aggrieved by the final order of the Hon'ble DRT, the Company preferred a Writ Petition before the Hon'ble High Court of Karnataka and by way of an interim Order dated 16th June 2016, the Hon'ble High Court of Karnataka was pleased to stay the order of the DRT. This stay is still continuing.

c) The litigation regarding Kingfisher Villa property is mentioned in details in para 32(d).

d) In addition to two winding up petitions instituted by purported beneficiaries of Corporate Guarantees issued by the Company, which are being challenged before the Hon'ble Supreme Court and the Karnataka High Court respectively, six more winding up petitions filed by certain creditors of KFA, who are purported beneficiaries of Corporate Guarantees for winding of the Company, have been admitted by the Hon'ble High Court of Karnataka vide combined Order dated 2nd January, 2015. The Company has filed appeals before the Division Bench of the Karnataka High Court to challenge three of the aforesaid six admission Orders of the single judge and such appeals are pending admission. No Order for appointment of a provisional Liquidator or Order of winding up of the Company, has been passed till date. The Suits are still in progress.

e) The Company has filed a suit claiming an amount of USD 210,400,000 along with Rs.162,10,00,000/- by way of Damages against one of the above Petitioners who have filed a winding up Petition against the Company in the City Civil Court, Bangalore and the same is pending adjudication. However, applications filed by the said Petitioner challenging the jurisdiction of the Suit has since been dismissed vide order of the Hon'ble City Civil Court dated 30th April 2016.

f) The litigation with ICICI Bank regarding 20,14,000 shares of UBL is mentioned in details in para 33(b).

(g) Pursuant to a Corporate Guarantee given by the Company to BIAL, the Company deposited 50% of the Guarantee amount of Rs.83.533 million with the Hon'ble High Court of Karnataka pursuant to order passed by the Hon'ble Supreme Court consequent to filing of SLP by the Company. The Suit is still in progress.

(h) The Company has appealed to SAT challenging the communication dated 27th April 2015 by SEBI to restate the Company's accounts for Financial Years 2012-13 and 2013-14. By its Order dated 29th May, 2013, the SAT has stayed the operation, implementation and effect of the communication dated 27th April, 2015. In view of the resolution passed in the SEBI Board Meeting dated 12th March 2016 and the subsequent press release issued by SEBI, the counsel of SEBI has before the Hon'ble SAT stated that the order dated 27th April 2015 may be quashed with liberty to SEBI to pass appropriate orders in accordance with law. Accordingly, orders passed by SEBI dated 27th April 2015 have been set aside vide order of the Hon'ble SAT vide its order dated 29th March 2016.

(i) Due to restraint orders passed by the High Court of Karnataka, rentable commercial office space could not be leased out resulting in continued loss of significant rental revenue. The Company has filed an Application vide CA No. 1428 of 2014 in COP 185/12 with a prayer to permit the Company to lease/rent out the vacant premises at UB City and grant such other further orders as are just. This application is pending.

18. The Company does not have a Managing Director since 18th April 2014. The Company has appointed a Chief Financial Officer, subsequent to the Balance Sheet date, on 20th April 2016.

The operations of the Company for the year under review were carried out by the President of the Company under the guidance of the Chairman of the Board and financial matters were monitored by the Group Chief Financial Officer under the guidance of the Chairman of the Board. The Group Chief Financial Officer has since retired.

19. Zuari Fertilizers and Chemicals Limited ("Zuari") through an open offer process has become the majority shareholder of Mangalore Chemicals & Fertilizers Limited ("MCF") and currently it is holding 53.03% of the paid up equity share capital of MCF. Consequently, MCF ceased to be an Associate of the Company. Since certain disputes have arisen out of the Shareholders Agreement ("SHA") with Zuari Group, the UB Group has invoked the arbitration clause in the SHA and have referred the dispute to an Arbitrator. The arbitration proceedings are pending.

20. Due to certain non-compliances under Listing Agreement with Stock Exchanges, the trading in the equity shares of KFA and UB Engineering Ltd. has been "suspended from trading" w.e.f 1st December 2014 and the suspension is still continuing.

21. Certain pre-existing loans from United Spirits Limited ("USL") and its wholly owned subsidiaries extended to UBHL and which were in existence as on 31st March 2013 aggregating to Rs.1337.41 crores were consolidated into and recorded as an unsecured loan by way of an Agreement entered into by the Company with USL on 3rd July 2013. This loan has been granted for a period of 8 years and is payable in 3 annual installments commencing from the 6th Anniversary of the effective date of the Loan Agreement. At an EGM of United Spirits Limited on 28th November 2014, the said loan agreement between the Company and United Spirits Limited, was not approved. The Company has not accounted for any interest on the loan since October 2014.Consequent to non-compliance of the terms of the Agreement, USL claimed payment of the entire principal amount of Rs.1337.41 crores together with outstanding interest. Meanwhile vide its letter dated 14th July 2016, USL has invoked the arbitration clause in the agreement and have appointed one arbitrator. Similarly the Company has also appointed one arbitrator in terms of the agreement. The process of arbitration has commenced.

22. One of the Group Company has raised a claim of Rs.175.42 crores upon the Company. This amount consists of loans given to the company and the proceeds of invocation and sale of their pledged shares by a bank, the realization of which was utilized by the bank for the purpose of liquidating the dues of the company. The loan has become overdue as on 31st March 2016.

23. Going Concern

The Company is defending recovery proceedings by the Consortium of Banks of KFA based on corporate guarantees, the validity of which is being contested. As stated herein above, the Company has filed before the Hon'ble Bombay High Court, a suit seeking to declare the corporate guarantee null, void ab initio and non-est. The suit is still pending adjudication. (Refer note no. 31 and 37). Certain winding up petitions in this regard are pending before the Karnataka High Court and which are contested by the company.

The company has filed a suit for damages against the aircraft engine manufacturers for supply of inherently defective engines, both in design and manufacture, to KFA. The Application filed by the engine manufacturers challenging the jurisdiction has been dismissed by the Hon'ble City Civil Court, Bangalore vide its order dated 30th April 2016. The company is pursuing without prejudice, negotiations with two of the creditors who have filed winding up petitions against the Company, to try and settle the disputes amicably. Two members of the Consortium of Bankers of KFA have assigned their debt to an Asset Reconstruction Company (ARC).

Under direction of Court pending resolution of various disputes, amounts totaling Rs.794.38 crores are held as cash deposits.

The market value of the Company's properties and investments is significantly higher than the carrying value. The operations of UBGC (a Division of the Company), are generating substantial revenues on a regular basis. Further, revenues are being generated from the Logo fee contracts with various other companies. The Company is also receiving dividends on its investments. Added to it is the fact that the rental revenue is also generating cash inflows, and this would substantially increase when the embargo to renew or take on fresh lease, is lifted by the High Court.

Having regard to the totality of all the above facts and also the substantial assets of the Company which can be monetized in case of necessity, the financial statements for the year ended 31st March 2016 have been presented on principles applicable to Going Concern.

24. The Company had advanced Rs.20 crores to a vendor. Due to the demise of the owner of the vendor company, the supply arrangement could not be consummated. Discussions are on with the legal heirs for the recovery of the advance. However, as a matter of prudence the Company has provided for the advance.

25. Events occurring after the date of the Balance Sheet

(a) The Directorate of Enforcement (ED), Ministry of Finance-Dept. of Revenue, Government of India, vide its Provisional Attachment Order No. 11/2016 dated 11th June 2016, received by the Company, has provisionally attached the immovable properties of the Company based in Bangalore and Mumbai under Section 5(1) of Prevention of Money Laundering Act, 2002 for a period of 180 days from the date of the Order in connection with investigation against Dr. Vijay Mallya, Kingfisher Airlines Limited & Others. The Company is in consultation with its Legal Counsels for taking appropriate steps that may be required including defending the case before the Adjudicating Authority in Delhi pursuant to a Show Cause Notice dated 11th July 2016 received from the Adjudicating Office in this regard.

(b) The Company executed a Joint Development Agreement ("JDA") with Prestige Estates Projects Limited ("Prestige"), a reputed Developer based in Bangalore, on April 26, 2010 for development of a luxury residential building named as "Kingfisher Towers - Residences at UB City" in the available land in UB City. Due to certain delay in construction, the Company claimed an amount of Rs.66 crores from Prestige up to 31st March 2016 and reserved its rights to claim further claims beyond 31st March 2016 till the receipt of the Occupancy Certificate.

26. Remuneration to Chairman, Managing Director and Managerial Personnel

(i) The Chairman of the Company has received remuneration from two subsidiaries, amounting to USD 120,000 (Pr year USD 120,000) and GBP 89,600 (Pr year GBP 89,600) during the year 2015-16.

The estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

27. Details of dues to Micro, Small and Medium Enterprises and Small Scale Industries.

Based on the response received by the Company, there are no outstanding as at March 31, 2016 to suppliers, as defined under the Micro, Small & Medium Enterprises Development Act, 2006.

Amount due to Micro and Small Enterprises is Nil to the extent of information disclosed by creditors.

28. The Company has recognized the rent from cancellable operating leases in accordance with the terms of the lease deed. In respect of the non-cancellable operating leases, the Company recognizes the rent on a straight line basis over the non- cancellable lease term. Future minimum lease payments receivable under non-cancellable operating lease Rs.Nil (Pr year Nil).

Notes :

1 Income under the segment "investments" represents dividends received, profit on sale of investments.

2 Income under the segment "property development" represents lease rent and profit on sale of immovable property.

3 Segment results represents profit/(loss) before interest expenses, other income, tax and exceptional items.

4 Capital expenditure represents the gross additions made to fixed assets during the year.

5 Segment assets include Non-Current Assets and Current Assets except income tax assets and increase in value of land and building due to revaluation.

6 Segment Liabilities include Non-Current Liabilities and Current Liabilities except provision for tax.

29. Disclosures required by Accounting Standard (AS) 29-"Provisions, Contingent Liabilities and Contingent Assets Provisions:

Year and quantum of outflow of cash in respect of the above contingent claims is not presently ascertainable. Time of outflow of cash on account of leave encashment is contingent upon the time of employee's separation from the Company.

*Based on actuarial valuation from an approved valuer.

30. The Company has not entered into any speculative derivative transactions. Hedging is restricted to the business needs of the Company. As at the Balance Sheet date, foreign currency receivable / payable that is not hedged by any derivative instrument or otherwise are as under:

31. All amounts are in Rupees million, unless otherwise stated.

32. Previous year's figures have been regrouped wherever necessary.