ANNUAL REPORT 2017 - 18 Empowering People. Powering Dreams. ABOUT TATA CAPITAL Tata Capital Limited, a subsidiary of Tata Sons Limited, is registered with the Reserve

Bank of India as a Systemically Important Non-Deposit Accepting Core Investment

Company. A trusted, customer-centric, one-stop financial solutions partner, it caters to the diverse needs of retail, corporate and institutional customers through a comprehensive suite of product and service offerings, delivered directly or through its subsidiaries. WE ONLY DO WHAT’S RIGHT FOR YOU The essence of the Tata Capital brand is encapsulated in its promise - ‘We only do what’s right for you’.

The proposition reflects our strong resolve to deliver financial solutions that are ‘right’ for our customers and the society at large. We seek to build strong relationships with customers through deep understanding of their needs, strong financial expertise and the delivery of superior and consistent customer experience across all touch-points.

The Do Right initiative, an initiative that stems from our Brand Promise, aims to inspire people to

‘Do Right’, get people to participate in ‘Doing Right’ and to ‘Do Right’ ourselves. OUR VISION

The most admired financial solutions partner. OUR MISSION

We will only do what's right - for all our stakeholders, including our employees, customers and society at large. OUR CULTURE

Know, Care and Do. KNOW

Knowledge. It is what empowers us to make a difference in the lives of our customers. It is the fuel

that will power the engine of innovation. It is what will enhance our ability to predict change and

adapt quickly and effectively. So, let us begin each day with a strong desire to know more, for only

when we seek to know more, will we strengthen our pursuit towards excellence. CARE

Care. It is at the core of our relationships. It is what forges bonds that endure the test of time. It is

about demonstrating humility and understanding towards all. Care is an appreciation of the truth,

that in unity and in keeping 'we' before 'me', we will truly progress. DO

Do. It is what separates aspirations from reality. It calls for a heightened sense of responsibility

and passion to give our best at all times. And to 'Do Right' is a higher calling.

It calls for integrity - a constant practice of honesty, transparency and fairness. It calls for

courage. So, let's do right, for it is what gives us our unique identity, our unique strength. GIVING BACK

Creating enriching and sustainable livelihoods has been the bedrock of Tata Capital's CSR initiatives

and is in line with the Company's mission to 'Do Right' by all its stakeholders. To this effect, we have

taken steps to ensure that we contribute to society at large, to make a measurable and positive

difference through four identified causes viz. Livelihood and Employability, Health, Education and

Environment. In FY 2017-18, Tata Capital implemented 30 projects with 57 partners and reached out to

66,945 beneficiaries from socially and economically underpriveleged communities. In addition,

volunteering activities were conducted, which saw participation from multiple volunteers and

accounted for over 1948 hours of volunteering. Some of the unique initiatives undertaken include:

’ Cluster Development Initiative - For education of tribal children in Vikramgadh

’ Dahanu Housing project - For tribals with Habitat for Humanity

’ 'JalAadhar’ - An integrated watershed management program at Pimpalegaon Rotha in association with Bharatiya Agro Industries Foundation

’ 'Green Switch’ Project - To provide unelectrified tribal hamlets with solar micro grids in Jawahar

’ Pankh Scholarship Program

’ DhanGyan - The e-learning module for Financial Literacy OUR RANGE OF OFFERINGS

Tata Capital’s portfolio of offerings caters to the diverse financial requirements of its retail, corporate

and institutional customers. A one-stop financial solutions partner, Tata Capital’s suite of products

and services offers a wide range of options to the customer.

* Home Loans | Personal Loans | Business Loans | Other Consumer Loans | Loan Against Property |

Home Equity | Investment Advisory Services | Wealth Products Distribution | Commercial Finance |

Leasing Solutions | Cleantech Finance | Institutional Distribution | Private Equity | Investment Banking |

Rural Finance | Tata Cards *Home Loans are originated and serviced by Tata Capital Housing Finance Limited. Personal Loans, Business Loans and other Consumer Loans, Loan Against Property, Commercial Finance, Rural Finance, Wealth Management Services, Investment Advisory Services, Leasing Solutions are originated and serviced by Tata Capital Financial Services Limited (TCFSL). | Private Equity Advisory Services are brought to you by Tata Capital Limited. | Private Equity Funds are registered with SEBI as Domestic Venture Capital Funds. | Institutional Distribution Services and Investment Banking are brought to you by Tata Securities Limited. Regd Office: Tower A, 11th Floor, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400 013. Tel No. +91 22 6606 9000. SEBI Registration Number: BSE INB010664150 INF011207954; NSE INB/F/E231288730; SEBI Registration Number: INZ000008839; Research Analyst: INH000002053; Merchant Banker INM 000011302 Depository Participant of CDSL: IN-DP-CDSL-450-2008 Depository Participant of NSDL: IN-DP-NSDL-298-2008. ARN 0021 - Distributors of IPO and MFs. | Tata Credit Card is a white label card issued, established and operated by SBI Cards and Payment Services Pvt. Ltd. It is marketed and distributed by TCFSL. | Cleantech Finance is brought to you by Tata Capital Cleantech Limited | Terms and Conditions apply. All loans and products are at the sole discretion of the respective entities. LOANS UNCOMPLICATED

Personal Loan Is Just A Chat Away

Getting a personal loan has always been a cumbersome process often requiring the

customers to fill a long application form amongst other things. And this is where Tata Capital's

bot comes in, an assistant that guides our customers throughout the entire process of

applying for a loan and getting it. Making the entire process effortless and finance easier.

The Online Store For Business Loans

Small businesses in India are on the rise, but so are the hardships they face. A major problem

for small businesses is lack of support and options when it comes to getting loans, which is

hindering businesses and hence the growth of the nation. Tata Capital's tie-up with an online

store aims to make loans not just more accessible but also more convenient by allowing Tata

Capital loan offerings on an online marketplace. And thereby boosting small businesses and

entrepreneurship in India.

Salaam Loans - A Loan For Your Dreams

Not everyone has the credit score to be eligible for a personal loan. But everyone has a dream.

And with Salaam Loans, Tata Capital made these dreams the eligibility criteria for personal loans. The power of a click was changed into a currency. Banking on the power of social media to approve a loan, Salaam Loans was a first of its kind initiative. The process was simplified for the applicants. They had to upload their video to the microsite, doright.in and every video to get more than a 1000 salaams was granted a loan within a week. This campaign didn't just garner eyeballs across the nation but more importantly made loans available for the people who needed it.

My Profile - myLoan

The younger generation wants immediate gratification, is always on the lookout for opportunities and always on their phones. Tata Capital mixed these three factors to come up with their latest offering, My Loans, that makes getting a personal loan faster and easier than ever. The myLoan mobile app allows users to link up their social media profile with their accounts and uses a highly sophisticated algorithm, to obtain a score that reflects the potential credit-worthiness of the applicant. The paperless 5-minute end to end journey is tailor-made for today's always on the move generation. Making the personal loans uncomplicated and trouble free for them. 19%

BOOK SIZE `61,445 CR ONE OF 10

OUR ACHIEVEMENTS 2017-18 GROWTH Y-O-Y

TOP NBFCs IN THE PRIVATE SECTOR

GROWTH Y-O-Y 69%

MOST PROFITABLE COMPANY 7TH IN THE TATA GROUP

NET PROFIT AFTER TAX `776 CR

INCREASE IN THE NUMBER 37% OF LOCATIONS

80% LOCATIONS IN NON-METROS LOCATIONS 189

GROWTH IN CUSTOMERS 32%

CUSTOMERS FROM NON-METRO CUSTOMERS 45% 14,53,722 KamiKaze B2B Employee Engagement Awards

Felicitated with Best Use of Training in Employee Engagement & Best

Use of Voice of the Employee awards.

Bureaucracy Today CSR Excellence Awards 2017

The CSR Company of the Year in the Private Sector category.

Spikes Asia Award 2017

A Gold Spike in the ‘Digital – Social Purpose’, and a Bronze Spike in the

‘Public Relations – Financial Services’ for Tata Capital's Salaam Loans initiative.

Asian Customer Engagement Forum 2017

The Salaam Loans initiative was felicitated with 2 awards – a Grand Prix for ‘Marketing Campaign of the Year’ and a Silver for the ‘Most Admired

B2C Marketing.'

National Awards for Best Housing Finance Companies 2017

National Award for the ‘Best Housing Finance Company’ of the year by

CMO Asia.

ASPIRED AND ACHIEVED

IIA Excellence Award

Internal Audit team was honoured with the ‘IIA Excellence Award’ at the

Annual Conference of the Institute of Internal Auditors – Bombay

Chapter.

Economic Times BFSI Awards

Adjudged as one of the best BFSI brands by the Economic Times for the

second consecutive year.

ADFEST 2018

Winner of the ‘Lotus Award’ at Adfest 2018. THE 150 YEARS OF TATA GROUP

CORPORATE INFORMATION

Board of Directors Mr. Saurabh Agrawal Mr. Nalin M. Shah Mr. Mehernosh B. Kapadia Mr. F.N. Subedar Ms. Aarthi Subramanian Mr. Rajiv Sabharwal – Managing Director & CEO

Chief Financial Officer Puneet Sharma

Company Secretary Avan Doomasia

Statutory Auditors B S R & Co. LLP

Registrar & Transfer Agents TSR Darshaw Limited 6-10 Haji Moosa Patrawala Industrial Estate 20, Dr E Moses Road, Mahalaxmi, Mumbai 400 011 Tel +91 22 6656 8484 Registered Office Tower A, 11th Floor, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013. Telephone : +91 22 6606 9000 Corporate Identity Number U65990MH1991PLC060670 CONTENTS

Message from the Managing Director & CEO 20

Board’s Report 25

Consolidated Financial Statements ’7\RS^S\RS\b/cRWb]`a¿@S^]`b $& ’4W\O\QWOZaT]`4G  %º & %"

Salient Features of Financial Statements of 151 Subsidiaries / Associates / Joint Venture

Standalone Financial Statements ’7\RS^S\RS\b/cRWb]`a¿@S^]`b #" ’4W\O\QWOZaT]`4G  %º & $ MESSAGE FROM THE MANAGING DIRECTOR

RAJIV SABHARWAL MANAGING DIRECTOR & CEO TATA CAPITAL LIMITED

20 Dear Shareholder,

Tata Capital completed 10 years of operations this year. The decade gone by is rich with milestones, achievements and successes. As we look back at our journey over the last 10 years, we feel proud that our goal of setting up a strong and diverse financial services organization was achieved. Despite all our accomplishments, we’ve only just begun our journey towards realizing the full potential and purpose of the platform we have so painstakingly built. We’ve made excellent progress, but we can collectively achieve greater heights. We will continue to take decisive action to strengthen and grow our businesses in a sustainable way.

Great companies start working towards the next milestone once the first is achieved. I see that happening at Tata Capital and am proud to be part of this new journey. Our Company has always had a big vision —of being ‘the most admired financial solutions partner’. As we look forward, we see ourselves developing into a leading financial services player, which differentiates itself on customer service. We will aim to partner in the mission of making finance inclusive and accessible, both by our range of businesses as well as by their delivery, thus truly empowering people and powering dreams.

It is an incredible honor for me to lead and serve this great company of ours into its next phase.

With an eye on the future, we have begun reorganizing our portfolio of businesses to focus on more relevant and profitable products, deploy resources more effectively, have nimble processes and develop an overall, sustainable, high-growth model. The year 2017-18 saw us grow our business across key focus products, channels and customer segments and the financial metrics for the year reflect this growth. Our overall book size crossed ` 61,000 crore, up from

` 51,847 crore in the previous year, representing a growth of over 19% and keeping us firmly among the top 10 private sector NBFCs by asset size.

21 Our growth has been buoyed by our flagship businesses – Housing Finance, Commercial

Finance and Consumer Finance, each of which have grown in size and depth. Our net profit

grew by 69% to close at ` 776 crore. We have also significantly grown our customer base and

spread and now serve over 1.45 million customers from over 150 locations in the country.

I could not have asked for a better foundation. Motivated and talented people and capital are

the two critical elements for the success of any financial services business. We have both in

abundance. In the next phase of our growth, we are aiming to digitize existing products and

processes, innovate new products and services, significantly improve customer experience –

both by listening intently to customer needs as well as by improving our sales and service

framework, build a robust and cost-optimized business model and, with these as pillars, rapidly

scale up our organization.

We will continue to make inroads into new segments that have high potential and that will solve

the larger purposes of financial growth and inclusion. The growth in our Housing Finance

business has been and will continue to be driven by affordable housing, which today accounts

for about 20% of our loan book and has a special focus on low-income housing finance.

Recognizing that SMEs and MSMEs will form the backbone of India’s growth story, we have been

steadily growing our products across commercial finance and small business finance. Going

forward, we will introduce digital products and alternate credit scoring models for this segment

to reach out to more entrepreneurs. The need for renewable energy and its criticality to our

country’s overall growth cannot be understated and we recognize that optimal financing is

essential for this segment. Our clean technology financing business has been making rapid

progress in this segment and will look at taking large steps forward in the future, with effective

financing and advisory solutions. We also recognize the growing need for finance among the

22 youth especially those in the new-to-credit segment. We will have to innovate both on the product side, crafting need-based and relevant offerings, as well as on the delivery side to enable digital platforms, communication, access and service.

The Tata Group completed 150 years in January this year. A 150-year legacy that has been characterized, not just by setting the industry for trust and integrity, but also by pioneering innovation and nation building. Tata Capital, as one of the younger companies in the Group, will play a significant part in carrying forth this legacy. We will move ahead from measuring ourselves against industry standards to being the standard ourselves, move ahead from benchmarking ourselves against the best to being best-in-class ourselves. We will have to build a brand that leverages the legacy of the Tata Group’s history as well as reflects its future. While these may sound like overly ambitious goals, the talent, grit and determination of team Tata

Capital, which has carried us through the last decade, is up to the task and confident on breaking new ground, leaping to new heights.

I thank each one of you for your patronage of Tata Capital and request your continued support to collectively build a great institution.

23

BOARD’S REPORT

To the Members,

The Board has pleasure in presenting the Twenty Seventh Annual Report and the Audited Financial Statements for the Financial Year (“FY”) ended March 31, 2018.

1. BACKGROUND  7DWD &DSLWDO /LPLWHG ³&RPSDQ\´ RU ³7&/´  WKH ÀDJVKLS ¿QDQFLDO VHUYLFHV FRPSDQ\ RI WKH Tata Group, is a subsidiary of Tata Sons Limited and is registered with the Reserve Bank of India (“RBI”) as a Systemically Important Non-Deposit Accepting Core Investment Company (“CIC”). As a CIC, TCL is primarily a holding company, holding investments in its subsidiaries and other group companies and carries out only such activities as are permitted under the Directions issued by the RBI for CICs, as amended from time to time. TCL and its subsidiaries (collectively referred to as “Tata Capital”) are engaged in providing / supplying a wide array of services/products in the ¿QDQFLDOVHUYLFHVVHFWRU A detailed discussion on TCL’s business and that of its subsidiaries is set out in para 6 of this Report.

2. INDUSTRY AND ECONOMIC SCENARIO The global economy is estimated to have grown by 3.2% in 2017, the best growth rate recorded since 2011. This growth was broad based with most major developed economies showing a positive growth trajectory. While the return of global growth is good for exports and developing economies like India in general, a consequence of the growth is tighter monetary policy at the margin by the leading central banks. The combined effect of home country growth, coupled with LQFUHDVLQJJOREDOLQWHUHVWUDWHVZLOOSXWSUHVVXUHRQVXUSOXVJOREDOOLTXLGLW\DQGFRQVHTXHQWLQÀRZV into India. Further, global commodities like oil and metals witnessed a very large run up in prices with oil nearly doubling from its 2016 lows. It is estimated that every US$ 10 increase in oil prices EH\RQG86SHUEDUUHOKDVWKHSRWHQWLDOLPSDFWRIDSSUR[LPDWHO\ESVRQ,QGLDQLQÀDWLRQDQG approximately 10 bps on growth. Oil prices will, hence, be one of the most crucial factors affecting ,QGLD LQ WKH FRPLQJ \HDU DV LW KDV DQ HIIHFW RQ LQÀDWLRQ ¿VFDO GH¿FLW EDODQFH RI SD\PHQWV DQG currency.  ,QGLD EHFDPH WKH ¿IWK ODUJHVW JOREDO HFRQRP\ LQ 86 WHUPV LQ  ,QGLD FRQWLQXHG RQ LWV structural reform path, which is beginning to receive global acknowledgement. Upgradation of India’s sovereign rating by Moody’s and inclusion of India in the top 100 economies in ease of doing EXVLQHVVDUHVRPHRIWKHVLJQL¿FDQWRXWFRPHVRIWKHUHIRUPSURFHVV  7KH HFRQRPLF DFWLYLW\ LV H[SHFWHG WR JDWKHU SDFH LQ )<  EHQH¿WWLQJ IURP D FRQGXFLYH domestic and global environment. The key drivers supporting growth will largely be domestic and SROLF\ GULYHQ 7KH HFRQRP\ LV SRLVHG WR EHQH¿W IURP UHFHGLQJ LPSOHPHQWDWLRQ WURXEOHV RQ *RRGV and Service Tax (“GST”) resulting in higher tax collections, the re-capitalisation of public sector banks and the resolution of distressed assets under the Insolvency and Bankruptcy Code, 2016. Given that this is a run up to the election year, the Government’s thrust on Rural and Infrastructure sectors could rejuvenate Rural demand as well as Infrastructure and Consumer spending. The problem of Non-Performing Assets (“NPA”) in the banking sector is expected to peak by March 2019 at approximately 11% of gross banking advances. This will constrain the banking V\VWHP IURP JURZLQJ LQ DJJUHJDWH 7KH FKDQJLQJ EHKDYLRXU RI WKH UHWDLO FRQVXPHU LV UHÀHFWHG LQ FUHGLW RIIWDNH EHFRPLQJ LQFUHDVLQJO\ EURDGEDVHG DQG ¿QDQFLDOLVDWLRQ RI VDYLQJV $OO RI WKHVH factors augur well for Non - Banking Finance Companies (“NBFC”).  ,QÀDWLRQ GHFOLQH LQ WKH PRQWK RI )HEUXDU\  ZDV RQO\ WHPSRUDU\ DQG LQÀDWLRQ LV H[SHFWHG WR remain within RBI’s tolerance limits. RBI is, hence, expected to remain neutral on the policy rate IURQWIRUPRVWSDUWRI)<XQOHVVWKHUHLVFOHDUO\DQRLOSULFHEDVHGVKRFNWRLQÀDWLRQ

25 Annual Report 2017-18

 7KH &RPSDQ\ KDV D FDXWLRXVO\ RSWLPLVWLF RXWORRN IRU WKH QH[W ¿QDQFLDO \HDU ,PSURYLQJ JURZWK dynamics, domestic consumption and infrastructure spending and supportive tailwinds from global growth are likely positives for FY 2018-19. The Company will be closely watching the monsoons, timing of monetary policy tightening by the large central banks in advanced economies, protectionist WHQGHQFLHVRIODUJHJOREDOHFRQRPLHVDVWKH\KDYHWKHDELOLW\WRLPSDFWOLTXLGLW\DQGLQÀDWLRQERWK critical variables impacting our largest resource – “Money”.

3. FINANCIAL RESULTS (` in crore) Particulars Consolidated Standalone FY 2017-18 FY 2016-17 FY 2017-18 FY 2016-17 Gross Income 7,016 6,324 476 425 Less: Expenses Finance Costs 3,669 3,470 141 119 (PSOR\HH%HQH¿WV([SHQVHV 628 572 74 64 Other Operating Expenses 1,253 1,406 50 44 Depreciation 248 154 7 7 Amortization of Expenses 15 12 1 0 3UR¿W%HIRUH7D[ 1,202 710 204 189 Less: Tax Expense 413 240 2 9 3UR¿W$IWHU7D[ 789 470 202 180 Share of Associates and Minority Interest (13) (11) - - 3UR¿WIRUWKH\HDU 776 460 202 180 Balance brought forward from previous year 420 603 120 112 Less: Adjustment pursuant to Capital - (323) - - Reduction Scheme Less: Adjustment on account of acquisition - (1) - - of subsidiaries Add: Adjustment of Share Issue Expenses 5 5 - - Amount available for Appropriations 1,201 743 321 293 Appropriations Special Reserve 212 152 40 36 Dividend on Cumulative Redeemable 200 171 156 137 Preference Shares (including taxes) Surplus carried to Balance Sheet 789 420 124 120 carried to Reserves

Consolidated Results: Tata Capital’s book size increased from ` 51,847 crore as at March 31, 2017 to ` 61,445 crore as at March 31, 2018, on a consolidated basis. This increase of ` 9,598 crore was mainly due to the growth in the loan book of the three lending subsidiaries, viz. Tata Capital Financial Services Limited (“TCFSL”): ` 4,359 crore, Tata Capital Housing Finance Limited (“TCHFL”): ` 4,149 crore and Tata Cleantech Capital Limited (“TCCL”): ` 1,089 crore.

26 During FY 2017-18, Tata Capital recorded consolidated Total Income of ` 7,016 crore as against ` 6,324 crore in FY 2016-17, an increase of about 11%. The Total Income comprised Income from ¿QDQFLQJ DFWLYLWLHV RI ` 6,422 crore (FY 2016-17: ` 5,732 crore), Investment Income of ` 92 crore (FY 2016-17: ` 151 crore) and Other Income of ` 502 crore (FY 2016-17: ` 441 crore). The growth LQLQFRPHIURP¿QDQFLQJDFWLYLWLHVZDVLQOLQHZLWKWKHJURZWKLQDYHUDJHDGYDQFHV  'XULQJ WKH \HDU7DWD&DSLWDO¶V 3UR¿W$IWHU7D[ ³3$7´ RQ D FRQVROLGDWHG EDVLV LQFUHDVHG E\ DERXW 69%, to ` 776 crore (FY 2016-17: ` 460 crore). During FY 2017-18, Tata Capital’s consolidated interest expense was ` 3,669 crore (FY 2016-17: ` 3,470 crore). This increase was on account of higher borrowings of ` 8,685 crore (FY 2016-17: ` 6,312 crore), in line with the growth in the loan portfolio. Notwithstanding the tight liquidity conditions in the market, Tata Capital was able to ensure a comfortable liquidity position to support its business requirements. Operating Expenses, including credit costs and provisions for diminution in value of investments, decreased by 11% and stood at ` 1,253 crore, as against ` 1,406 crore in FY 2016-17. The Operating Expenses, excluding credit costs and provisions for diminution in value of investments, increased by 10%. Employee costs increased from ` 572 crore in FY 2016-17 to ` 628 crore in FY 2017-18, owing to increase in manpower strength to support new businesses, growth in existing businesses and on account of salary increments, which were broadly in line with the industry.  7KH FRQVROLGDWHG *URVV 13$ VKRZHG D VLJQL¿FDQW UHGXFWLRQ IURP  LQ )<  WR  LQ FY 2017-18. The Net NPA reduced from 0.9% in FY 2016-17 to 0.7% in FY 2017-18. A provision of ` 52 crore, at the rate of 0.40% for Standard Assets (FY 2016-17: ` 59 crore), was made. The consolidated Return on Assets (“RoA”) for FY 2017-18 was 1.1% (FY 2016-17: 0.6%) while the Return on Equity (“RoE”) was 12.8% (FY 2016-17: 6.7%).

Standalone Results: During FY 2017-18, TCL recorded Gross Income of ` 476 crore (FY 2016-17: ` 425 crore) and a PAT of ` 202 crore (FY 2016-17: ` 180 crore). The increase in PAT was mainly on account of higher dividend income from subsidiary companies. The Company has transferred an amount of ` 40 crore to Special Reserve.

4. SHARE CAPITAL The paid-up Equity Share Capital of the Company was ` 2,826 crore as on March 31, 2018, which was held by Tata Sons Limited (93.22%), Tata Investment Corporation Limited (2.73%) and TCL Employee Welfare Trust (through its Trustees) (1.89%). The balance 2.16% was held by a few other Tata companies, other corporates, individuals and employees of Tata Capital. Under the Tata Capital Limited Employee Stock Purchase / Option Scheme (“ESOP Scheme”), the Company had allotted 7,02,34,526 Equity Shares of ` 10 each of the Company to the TCL Employee Welfare Trust (through its Trustees). The Trust was set up to administer and implement the ESOP Scheme. As on March 31, 2018, the number of Equity Shares held by the employees under the ESOP Scheme aggregated 1,67,56,520. Further details regarding the ESOP Scheme are given in para 40 below. During FY 2017-18, the Company successfully raised funds by way of issuance of Cumulative Redeemable Preference Shares (“CRPS”) of ` 1,000 each aggregating ` 514.75 crore. Further, consequent to the Call Option exercised by the Company, CRPS aggregating ` 484.35 crore were redeemed during the year. Accordingly, the paid up Preference Share Capital as on March 31, 2018, was ` 1861.85 crore. The details of CRPS issued and redeemed are available at Page Nos. 174 and 175 of the Annual Report. Further, in accordance with Section 61 of the Companies Act, 2013 (“Act”), the Members of the Company had, at its Meeting held on March 29, 2018, approved the cancellation of 74,400 Equity 6KDUHV DQG  3UHIHUHQFH 6KDUHV UHÀHFWHG LQ WKH ,VVXHG (TXLW\ 6KDUH &DSLWDO DQG ,VVXHG Preference Share Capital, which had been unsubscribed.

27 Annual Report 2017-18

5. DIVIDEND At the meeting of the Board of Directors held on March 21, 2018, the Directors declared Interim Dividend on the CRPS, for FY 2017-18, as under:

1RRI6KDUHV Dividend Rate Dividend Amount (%) p.a. (` in crore) 20,71,066 12.50 25.89 70,49,891 8.33 58.73 43,50,000 7.50 32.63 21,50,000* 7.50 11.47 14,97,500* 7.33 7.32 7,50,000* 7.15 2.91 7,50,000* 7.10 2.68 Total 141.63 *on a pro-rata basis from the date of allotment till March 31, 2018 Further, consequent upon the exercise of Call Option by the Company, CRPS aggregating ` 484.35 crore were redeemed during the year and accordingly, Interim Dividend aggregating ` 14.85 crore was paid from April 1, 2017 upto the date of redemption. The details of Interim Dividend paid on redemption were, as under:

Dividend Dividend Tranche 1RRI&536 Redemption Date Amount Rate (%) (` in crore) G 8.33 8,99,000 July 31, 2017 2.50 H 8.33 25,00,000 July 31, 2017 6.96 I 8.33 9,96,050 September 15, 2017 3.82 J 8.33 3,69,660 July 31, 2017 1.03 K 8.33 27,900 January 31, 2018 0.19 L 8.33 50,900 January 31, 2018 0.36 Total 48,43,510 14.86 Since the Company has paid Dividend to the CRPS holders for FY 2017-18 by way of an Interim 'LYLGHQGWKH'LUHFWRUVGRQRWUHFRPPHQGDQ\¿QDOGLYLGHQGRQWKH&536LVVXHGE\LW In order to conserve the resources of the Company and to build up reserves, the Directors do not recommend payment of Dividend on the Equity Shares for FY 2017-18.

6. OVERVIEW OF THE COMPANY, ITS SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE   6WUXFWXUHRI%XVLQHVV2SHUDWLRQVDW7DWD&DSLWDO TCL is primarily a holding company, holding investments in its subsidiaries and other group companies and carries out only such activities, including advising and / or management of private equity funds, as are permitted under the Directions issued by the RBI for CICs. All the other operating businesses are carried on by the subsidiaries of TCL. The Company has completed ten full years of operations and over this period, has emerged as one of the leading players in the NBFC space in India.   7KH ¿QDQFLDO VHUYLFHV VHFWRU LQ ,QGLD DV DOVR JOREDOO\ LV KLJKO\ UHJXODWHG 7&/ DQG LWV subsidiaries are subject to regulations by authorities such as the RBI, the Securities and Exchange Board of India (“SEBI”), the National Housing Bank (“NHB”), the Monetary Authority

28 of Singapore, the Financial Conduct Authority, United Kingdom (“UK”), the Association of Mutual Funds of India and Insurance Regulatory and Development Authority of India.   $V D RQHVWRS ¿QDQFLDO VHUYLFHV SURYLGHU 7DWD &DSLWDO FDWHUV WR WKH GLYHUVH ¿QDQFLDO requirements of its retail, corporate and institutional customers with a comprehensive suite of products and service offerings. In the corporate segment, the Company’s wholly-owned subsidiary, Tata Capital Financial Services Limited (“TCFSL”) offers Commercial Finance solutions, including Construction Equipment (‘‘CEQ”) Finance and Leasing solutions to corporate customers. In the Retail segment, TCFSL provides Asset Finance across urban and rural geographies. TCFSL is also engaged in the business of distribution of investment products such as Mutual Funds under its Wealth Products Distribution business and is engaged in the distribution of White Label Credit Cards, in association with its bank partner.   7DWD &DSLWDO DOVR RSHUDWHV LQ WKH KRXVLQJ ¿QDQFH VSDFH WKURXJK DQRWKHU ZKROO\RZQHG subsidiary, viz. Tata Capital Housing Finance Limited (“TCHFL”), which offers Housing Loans DQG /RDQV DJDLQVW 3URSHUW\PDLQO\ LQ WKH 5HWDLO VHJPHQW DQG LQ &RQVWUXFWLRQ ¿QDQFH LQ WKH Corporate segment.   7DWD&OHDQWHFK &DSLWDO /LPLWHG ³7&&/´  DOVR D VXEVLGLDU\ RI WKH &RPSDQ\ SURYLGHV ¿QDQFH DQG DGYLVRU\ VHUYLFHV WR FRUSRUDWH FXVWRPHUV IRU 5HQHZDEOH (QHUJ\ (QHUJ\ (I¿FLHQF\ :DWHU0DQDJHPHQWSURMHFWVDQGFDVKÀRZEDVHG,QIUDVWUXFWXUH)LQDQFH Tata Capital provides investment banking services and distribution of Mutual Funds and WKLUG SDUW\ ¿QDQFLDO SURGXFWV IRU LQVWLWXWLRQDO FXVWRPHUV WKURXJK LWV ZKROO\RZQHG VXEVLGLDU\ Tata Securities Limited. In the Private Equity space, TCL has sponsored Private Equity Funds in India, to which it acts as an Investment Manager. Tata Capital Pte. Ltd. (“TCPL”), a wholly-owned subsidiary of TCL, has been established in Singapore as the International Headquarters of Tata Capital and is responsible for Tata Capital’s international presence and activities. TCPL’s step-down wholly-owned subsidiary in Singapore, Tata Capital Advisors Pte. Ltd. (“TCAPL”), acts as an Investment Manager to the Private Equity Funds set up in Singapore, to which TCL acts as an Advisor.

6.2 Private Equity 6.2.1 Domestic Funds The Company has set up four Private Equity Funds in India, viz. Tata Capital Growth Fund I, Tata Capital Healthcare Fund I, Tata Capital Innovations Fund and Tata Capital Special Situations Fund - Trust (collectively referred to as “Funds”). These Funds have been registered with SEBI as Venture Capital Funds. The Company has sponsored these Funds and acts as their Investment Manager and has also invested in the Funds by subscribing to units of these Funds. The aggregate commitments as at March 31, 2018 to these Funds are ` 1,211 crore. The performance of the above Funds, is reviewed below:

i) Tata Capital Growth Fund I (“TCGF”) TCGF was set up with a mandate to make private equity growth capital investments in FRPSDQLHVWKDWKDYHDVLJQL¿FDQWSRUWLRQRIWKHLURSHUDWLRQVLQ,QGLD7&*)¶VLQYHVWPHQW focus themes are Urbanisation, Discrete Manufacturing and Strategic Services. TCGF has provided growth capital funding to industry leading companies, with an average deal size of approximately ` 40 crore and holding period ranging from two to eight years. 7&*) GHFODUHG LWV ¿QDO FORVH LQ )HEUXDU\  ZLWK FRPPLWPHQWV RI ` 339 crore, of which, ` 253 crore was invested in six portfolio companies. TCGF’s commitment period ended on November 9, 2015 and its life cycle was extended by one year with the approval of TCGF’s Advisory Board and Trustee and the same terminates on February 10, 2019.

29 Annual Report 2017-18

As at March 31, 2018, the TVPI multiple (Total Value, including Distributions, to Paid in Capital) is 2.16. During the year, TCGF recorded its second full exit in Agile Electric Sub Assembly Private Limited (“AESPL”) with a Multiple on Invested Capital (“MOIC”) of 1.7 times and an Investment IRR of 31%. During FY 2016-17, the Company formed a trust vehicle and during FY 2017-18, the Company received approval from SEBI for the formation of Tata Capital Growth Fund II (“TCGF II”), the follow on fund to TCGF, as a Category II Alternative Investment Fund.

ii) Tata Capital Healthcare Fund I (“TCHF”) TCHF was set up to target long-term capital appreciation through private equity growth-capital investments in healthcare companies involved in pharmaceutical, contract research/manufacturing, hospital services, medical devices, diagnostic and other healthcare segments. TCHF’s investment strategy is predicated on high growth consumption and competency themes within the Indian healthcare sector, driven by increasing per capita disposable income, rising urbanisation, growing health awareness, increasing chronic and life-style oriented disease pattern and growth in domestic KHDOWKFDUH LQIUDVWUXFWXUH 7&+) WDUJHWV VLJQL¿FDQW PLQRULW\ SRVLWLRQV LQ SRUWIROLR FRPSDQLHVZLWK%RDUGUHSUHVHQWDWLRQDQGRWKHUVLJQL¿FDQWVKDUHKROGHUULJKWV7&+)KDV provided growth capital funding to companies with an average deal size of approximately `  FURUH DQG KROGLQJ SHULRG UDQJLQJ IURP WZR WR HLJKW \HDUV 7&+) GHFODUHG LWV ¿QDO close in April 2012, with commitments of ` 319 crore, of which, ` 245 crore was invested in portfolio companies. TCHF’s commitment period ended on July 13, 2015 and its life cycle was extended by one year with the approval of TCHF’s Advisory Board and Trustee and the same would terminate on July 12, 2019. As at March 31, 2018, the TVPI multiple was 1.86. TCHF recorded a full exit in Amanta Healthcare Limited, with an MOIC of 1.9 times and Investment IRR of 15%. iii) Tata Capital Innovations Fund (“TCIF”) TCIF is a sector agnostic venture capital fund and invests in early stage companies, offering technology based solutions for Indian as well as global markets. TCIF focuses on investments which have a potential to create new growth opportunities, increase HI¿FLHQF\ EULQJ DIIRUGDELOLW\ DQG DFFHVVLELOLW\ WR WKH LQGXVWU\ RU FKDQJH WKH ZD\ EXVLQHVV LV FRQGXFWHG 7&,) GHFODUHG LWV ¿QDO FORVH LQ$SULO  ZLWK FRPPLWPHQWV RI ` 287 crore, of which, ` 215 crore has been invested in portfolio companies, as at March 31, 2018. The TVPI multiple as at March 31, 2018, was 1.43. TCIF’s commitment period ended on January 29, 2017 and its life cycle is expected to be completed by January 29, 2020.

iv) Tata Capital Special Situations Fund (“TCSSF”) TCSSF focuses on investing in turnaround opportunities. Of the aggregate drawn amount of ` 265 crore, ` 222 crore was invested in four portfolio companies. Of these, TCSSF has exited from two investments, realizing an average of 2.27 times the invested amount. TCSSF has distributed to the investors, over 98% of the amounts drawn from them. As at March 31, 2018, the multiple of Total Value (including distributions) to Paid in Capital is 1.58.

6.2.2 Overseas Funds The Overseas Funds, viz. Tata Capital Growth Fund Limited Partnership (“TCGFLP”), Tata Capital HBM Healthcare Fund I Limited Partnership (“TCHHFLP”) and Tata Opportunities Fund Limited Partnership (“TOF”) are based in Singapore. The Company’s subsidiary in Singapore, TCAPL, is the Investment Manager for TCGFLP, TCHHFLP and TOF. Overseas Funds accept commitments only from overseas investors. The aggregated commitments as at March 31, 2018 to the Overseas Funds was US$ 727 million.

30   72) GHFODUHG LWV ¿QDO FORVH LQ 0DUFK  ZLWK FRPPLWPHQWV RI 86  PLOOLRQ RI ZKLFK approximately 82% has been drawn down as at March 31, 2018 and US$ 380 million has been invested in eight porfolio companies. The fund’s portfolio continues to perform well ZLWK DYHUDJH UHYHQXH DQG SUR¿W JURZWK RI DERYH  SHU DQQXP 7&/ KDV D FRLQYHVWPHQW arrangement with TOF, whereby TCL (or a wholly-owned subsidiary of TCL) has a commitment to co-invest the Indian rupee equivalent of an amount of up to US$ 50 million alongside TOF, subject to regulatory restrictions.   7&*)/3 GHFODUHG LWV ¿QDO FORVH LQ 1RYHPEHU  ZLWK FRPPLWPHQWV RI 86  PLOOLRQ RI which, approximately 85% has been drawn down and US$ 125 million has been invested in eight portfolio companies. TCGFLP has exited its investments in AESPL, at a MOIC of 1.8 times.   7&++)/3 GHFODUHG LWV ¿QDO FORVH LQ -DQXDU\  ZLWK FRPPLWPHQWV RI 86  PLOOLRQ RI which, approximately 92% has been drawn down and US$ 11 million has been invested in portfolio companies.

  5HYLHZRI6XEVLGLDULHV$VVRFLDWHVDQG-RLQW9HQWXUH 6.3.1 Subsidiaries: As on March 31, 2018, the Company had the following subsidiaries, brief details of whose performance are given below: i) Tata Capital Financial Services Limited (“TCFSL”) TCFSL is a wholly-owned subsidiary of the Company, registered with the RBI as a Systemically Important Non-Deposit Accepting Non-Banking Finance Company (“NBFC-ND-SI”). TCFSL has two main areas of business, viz. Corporate Finance and Consumer Finance & Advisory which includes Rural Finance. TCFSL’s portfolio increased by ` 4,359 crore from ` 32,910 crore in FY 2016-17 to ` 37,269 crore in FY 2017-18. During FY 2017-18, the Gross Income increased by 9% and stood at ` 4,555 crore (FY 2016-17: ` 4,192 crore). The Net Interest Margin (“NIM”) increased by 15% and stood at ` 1,630 crore (FY 2016-17: ` 1,419 crore). PAT for FY 2017-18 was ` 483 crore as compared to ` 216 crore in FY 2016-17, an increase of 123%. The Gross and Net NPAs decreased and stood at 3.3% and 0.9% in FY 2017-18 compared to 4.9% and 1.2%, respectively, in FY 2016-17. The Provision Coverage Ratio decreased from 76.2% in FY 2016-17 as compared to 73.4% in FY 2017-18. The Cost to Income ratio in FY 2017-18 was 49% as compared to 47.5% in FY 2016-17. (a) Corporate Finance The Corporate Finance Division (“CFD”) comprises two broad business areas, viz. Commercial Finance and Infrastructure Finance, comprising the Special Assets Management Group (“SAMG”). The Closing Book of CFD stood at ` 21,352 crore (FY 2016-17: ` 19,264 crore), comprising Commercial Finance: ` 20,875 crore (97.8%) and SAMG: ` 477 crore (2.2%). Commercial Finance The Commercial Finance Business specializes in product offerings ranging from Vanilla Term Loans, Working Capital Term Loans, Channel Finance, Bill Discounting, CEQ Finance, Equipment Finance, Leasing Solutions, Lease Rental Discounting, Promoter Finance and Structured Products. This Business serves over 11,633 customers through its business verticals, viz. Large Corporate, Mid and Emerging Corporate and Government Business. All the verticals are supported by the respective Product teams, which help these verticals in extending the right product mix to the customer. Further, a Syndication and Structured Finance team supports all the business verticals, with special focus on debt syndications, down selling and structured transactions.

31 Annual Report 2017-18

For the year under review, the Commercial Finance Business ended with a book of ` 20,875 crore as compared to ` 18,229 crore at the end of FY 2016-17. Gross Income grew by 7.4% from ` 1,928 crore in FY 2016-17 to ` 2,024 crore, in FY 2017-18. This segment disbursed loans of ` 63,960 crore during FY 2017-18, through its diverse, customer-centric product offerings. During FY 2017-18, the Channel Finance Business continued to be the largest contributor of book in Commercial Finance. This business ended FY 2017-18 with a book of ` 8,167 crore (FY 2016-17: ` 6,733 crore). During FY 2017-18, the CEQ Finance Business (including Rental Division) FRQWLQXHG WR EH DPRQJVW WKH WRS ¿YH SOD\HUV LQ WKH LQGXVWU\7KLV %XVLQHVV HQGHG FY 2017-18 with a book of ` 3,188 crore (FY 2016-17: ` 2,741 crore) and disbursed loans of ` 2,186 crore in FY 2017-18 (FY 2016-17: ` 1,874 crore). During FY 2017-18, Leasing Business continued to report good growth in its book and maintained asset quality in both, primary and secondary leases, despite the headwinds faced by the business due to GST roll-out and impact. As at March 31, 2018, the outstanding book was about ` 1,136 crore consisting of a KHDOWK\ PL[ RI &DSLWDO *RRGV ,QIRUPDWLRQ 7HFKQRORJ\$XWR DQG 2I¿FH (TXLSPHQW leased to Corporate entities. Operating leases constitute nearly 64% of the equipment provided on lease. TCFSL is emerging as a leading Leasing Solutions provider and a one-stop for FXVWRPHUVSURYLGLQJDVXLWHRI¿QDQFLQJDQGOHDVLQJVROXWLRQVDFURVVYDULHGDVVHWV TCFSL aspires to scale up the business through strategic initiatives and leveraging a strong foothold in the Commercial Finance Business. 7KH &RPPHUFLDO )LQDQFH %XVLQHVV LV FRPPLWWHG WR EHLQJ D FRPSOHWH ¿QDQFLDO solutions partner to its customers, through high quality service levels and innovative products, which provide value to its customers.

SAMG SAMG was formed on April 1, 2015 to manage the Project Finance portfolio of the erstwhile Infrastructure Finance Division. SAMG managed a portfolio of ` 1,680 crore as at April 1, 2016 which reduced to ` 477 crore as at March 31, 2018, as a result of recovery and write-off. The key objectives of SAMG are, as under: ‡3ULPDU\ UHVSRQVLELOLW\ RI LGHQWLI\LQJ TXDQWLI\LQJ DQG PLQLPL]LQJ WKH ORVV WKDW could be incurred on impaired assets, with focus on reduction in impaired asset portfolio through proactive asset management, legal actions, disposals, debt restructuring and portfolio monitoring, on an ongoing basis; ‡:RUNRXWVHWWOHPHQWSURSRVDOVLQVXFKDZD\WKDWWKHORVVLVPLQLPL]HG ‡,GHQWLI\  LQLWLDWH GLDORJXH ZLWK YDULRXV VSHFLDO VLWXDWLRQ IXQGV  1%)&V lenders / Asset Reconstruction Companies for takeover of TCFSL’s debt; ‡'HYHORS H[SHUWLVH WR DFTXLUH VWUHVV SRUWIROLR IURP RWKHU 1%)&V  %DQNV DQG undertake fee based stress advisory mandates. During FY 2017-18, total Collections by the SAMG team was ` 311 crore, comprising cash recoveries of ` 251 crore, income recognized as realised ` 47 crore and realization on assets held for sale ` 13 crore.

32 (b) Consumer Finance TCFSL offers, through its Consumer Finance & Advisory Business (“CFAB”), a wide range of consumer loans such as Auto Loans (New and Used Car Loans, Tractor Loans, Commercial Vehicle Loans and Two Wheeler Loans), Business Loans, Loans against Property, Personal Loans, Consumer Durables Loans and Loans against Securities. Disbursements in FY 2017-18 aggregated ` 10,868 crore as compared to ` 9,018 crore in FY 2016-17, representing an increase of about 21%. Gross Income grew by 14% from ` 1,966 crore in FY 2016-17 to ` 2,238 crore in FY 2017-18. Disbursement of Loans against Property increased from ` 2,854 crore in FY 2016-17 to ` 3,010 crore in FY 2017-18, representing a growth of 6% over the previous year. Disbursement of Personal Loans and Business Loans increased from ` 2,664 crore in FY 2016-17 to ` 3,285 crore in FY 2017-18, representing a growth of 23% over the previous year. Auto Loan disbursements of ` 2,530 crore constituted 23% of the overall CFAB disbursals for the year. Disbursements of high PDUJLQIRFXVSURGXFWVUHPDLQHGÀDWDWGXULQJ)< CFAB continued its focus on margin expansion while the overall interest rates GHFUHDVHGLQWKH,QGLDQHFRQRP\ZKLFKKDVDQLPSDFWRQWKH¿[HG\LHOGSRUWIROLR NIM increased from 6.6% in FY 2016-17 to 7% in FY 2017-18. Continued focus on leveraging the Tata ecosystem has resulted in disbursements increasing from ` 276 crore in FY 2016-17 to ` 432 crore, in FY 2017-18. As at March 31, 2018, the Assets Under Management of the Wealth Management business was ` 5,033 crore, crossing a major milestone of ` 5,000 crore during )<  DQG WKH EXVLQHVV SRVWHG D SUR¿W RI ` 3 crore. Tata Cards, a White Label Credit Card in partnership with SBI Cards and Payments Services Limited, has nearly 1.9 lakh cards in force as at March 31, 2018. For FY 2017-18, CFAB’s closing book of ` 15,859 crore (FY 2016-17: ` 13,579 crore) comprised Auto Loans of ` 4,887 crore (31%), Business Loans and Personal Loans of ` 4,470 crore (28%), Loans against Property of ` 5,816 crore (37%) and the balance being, other retail loans. Loans against Property grew by 22% whereas Business Loans and Personal Loans grew by 31% in FY 2017-18 as compared to the previous year. These products have attained a strong market position in key high growth markets like Delhi NCR, Mumbai, Bengaluru and +\GHUDEDG2ZLQJWRWKHVHFKDQJHVWKH¿QDQFLDOFRQWULEXWLRQRIWKHVHEXVLQHVVHV has shown material improvement. Going forward, CFAB plans to grow its business through partnership with Tata Group consumer companies as well as a continued focus on cross sell to its existing customers of Consumer Durable loans as well as Personal Loans. Additionally, it continues to focus on high NIM products, increase customer acquisition, especially through expanding its Consumer Durables loans business, Two Wheeler loans business, balancing its product mix, ramping up fee based LQFRPH RSWLPL]LQJ RSHUDWLQJ FRVWV DQG LPSURYLQJ FROOHFWLRQ HI¿FLHQF\ IRU IXUWKHU HQKDQFLQJLWVSUR¿WDELOLW\ CFAB also plans to leverage analytics capabilities to explore opportunities in the market and offer unique products and solutions to new as well as existing customers. There are plans to automate several processes to ensure quick WXUQDURXQG &RVW RSWLPL]DWLRQ LQLWLDWLYHV KDYH EHHQ WDNHQ WR VSHFL¿FDOO\ IRFXV RQ DFTXLVLWLRQ FRVWV PDQSRZHU FRVW SURFHVV VLPSOL¿FDWLRQ GLJLWL]DWLRQ DQG infrastructure cost. ii) Tata Capital Housing Finance Limited (“TCHFL”) TCHFL is a wholly-owned subsidiary of the Company and is registered as a Housing )LQDQFH&RPSDQ\ZLWKWKH1DWLRQDO+RXVLQJ%DQNWRFDUU\RQKRXVLQJ¿QDQFHDFWLYLWLHV TCHFL offers Housing Loans and Loans against Property to various segments of society

33 Annual Report 2017-18

and has been focusing on business opportunities available within the Tata ecosystem. Apart from Housing Loans and Loans against Property to the retail segment, TCHFL DOVR SURYLGHV 3URMHFW )LQDQFH /RDQV WR GHYHORSHUV 7&+)/ KDV VLJQL¿FDQWO\ JURZQ LWV presence in providing Project Finance to eligible projects across the country and has also ramped up its Rural and Affordable Housing Finance business. During the year under review, TCHFL disbursed Mortgage Loans amounting to ` 9,377 crore (FY 2016-17: ` 8,236 crore), an increase of over 14%. This included Housing Loans of ` 5,660 crore (FY 2016-17: ` 4,783 crore). TCHFL’s loan portfolio increased by 24% and stood at ` 21,090 crore, as at March 31, 2018 (March 31, 2017: ` 16,941 crore). TCHFL recorded Gross Income of ` 1,984 crore and PAT of ` 214 crore in FY 2017-18 as compared to Gross Income of ` 1,723 crore and PAT of ` 178 crore, in FY 2016-17.

   ,Q)<7&+)/DYDLOHGUH¿QDQFHRI` 2,669 crore from the NHB under its various UH¿QDQFHDVVLVWDQFHVFKHPHV As a strategy, TCHFL will continue to maintain a balanced Housing Loan book between WKH VDODULHG DQG VHOIHPSOR\HG VHJPHQWV DQG JURZ LWV GLVEXUVHPHQWV VLJQL¿FDQWO\ WR become one of the major players amongst the Housing Finance Companies in India over the next few years.

iii) Tata Cleantech Capital Limited (“TCCL”) TCCL is registered with the RBI as a NBFC-ND-SI, engaged in the business of providing ¿QDQFH DQG DGYLVRU\ VHUYLFHV IRU SURMHFWV LQ Renewable Energy, Energy EI¿FLHQF\ Waste Management, Water MDQDJHPHQW DQG FDVK ÀRZ EDVHG Infrastructure Finance. TCCL is a joint venture between TCL and International Finance Corporation (“IFC”), Washington D.C., USA, with equity holding in the ratio of 80.50:19.50. TCCL was registered with the RBI as an Infrastructure Finance Company, on October 15, 2015. During FY 2017-18, TCCL has grown further on the strong foundations laid over the SDVW WZR \HDUV 7KLV LV UHÀHFWHG LQ WKH DFFHOHUDWHG JURZWK RI EXVLQHVV RI 7&&/ DFURVV all segments in Renewable Energy, coupled with continuing focus on quality of services offered by TCCL. TCCL’s asset book has grown by over 55% and its PAT has grown by more than 72%, in FY 2017-18. TCCL has forged new relationships with other important industry stakeholders such as Indian Renewable Energy Development Agency to help H[SDQG5HQHZDEOH(QHUJ\¿QDQFHLQ,QGLD    'XULQJ WKH \HDU 7&&/ VWDUWHG LWV ¿QDQFLDO DGYLVRU\ VHUYLFHV GLYLVLRQ ZKLFK LQFOXGHV providing strategic advice, private equity fund raise, Mergers & Acquisitions, joint venture DGYLVRU\VWUXFWXUHG¿QDQFHVROXWLRQDQGELGDGYLVRU\WRYDULRXVFOLHQWVZLWKSULPDU\IRFXV on Renewable Energy and other Infrastructure sectors. At the end of FY 2017-18, TCCL had an aggregate exposure of ` 3,294 crore, of which, lending assets were ` 3,085 crore (FY 2016-17: ` 1,995 crore) and the off-Balance Sheet exposure was `  FURUH 7&&/¶V *URVV ,QFRPH IRU ¿QDQFLDO \HDU HQGHG March 31, 2018 was ` 276 crore (FY 2016-17: ` 180 crore) and its PAT was ` 79 crore (FY 2016-17: ` 46 crore). TCCL’s loan portfolio consists of projects in the area of Wind Energy, Solar Energy, Small Hydro Energy, Off-grid Solar, Waste Management, :DWHU0DQDJHPHQWDQG(QHUJ\(I¿FLHQF\

iv) Tata Securities Limited (“Tata Securities”) Tata Securities is a wholly-owned subsidiary of the Company, engaged in the business of investment banking services and distribution of Mutual Fund units. Tata Securities also holds licenses for carrying on activities as a stock broker from the

34 National Stock Exchange of India Limited (“NSE”) and BSE Limited. Tata Securities is also a Depository Participant of the National Securities Depository Limited and the Central Depository Services (India) Limited and holds a license for Merchant Banking and Research Analyst issued by SEBI. During FY 2017-18, Tata Securities surrendered the Futures and Options and Currency Derivatives licenses of NSE. During the year under review, Tata Securities reported a Gross Income of ` 18 crore (FY 2016-17: ` 24 crore) and PAT of ` 8 crore (FY 2016-17: ` 2 crore). During the year, Tata Securities had a better margin leverage in the Institutional Distribution and Investment Banking segments as it enhanced its offering of advisory services to corporate entities investing in Mutual FXQG XQLWV DQG WKLUG SDUW\ ¿QDQFLDO products and execute mandates received for Investment Banking. v) TC Travel And Services Limited (“TCTSL”) and Tata Capital Forex Limited (“TCFL”) During the year, TCL divested its entire shareholding in its wholly-owned subsidiaries LH 7&76/ DQG 7&)/ WR 7KRPDV &RRN ,QGLD  /LPLWHG RU LWV DI¿OLDWHV DQG DFFRUGLQJO\ they ceased to be the wholly-owned subsidiaries of the Company, with effect from October 30, 2017. vi) Tata Capital Pte. Ltd. (“TCPL”), Singapore and its subsidiaries, viz. Tata Capital Advisors Pte. Ltd. (“TCAPL”), Singapore, Tata Capital Markets Pte. Ltd. (“TCMPL”), Singapore and Tata Capital Plc. (“TCPLC”), U.K. TCPL, a wholly-owned subsidiary of TCL, incorporated in Singapore in 2008, has been established as the International Headquarters of Tata Capital. TCPL, either on its own or WKURXJKLWVVXEVLGLDULHVLVHQJDJHGLQIXQGPDQDJHPHQWDGYLVLQJRQFRUSRUDWH¿QDQFH dealings in securities and investments in debt papers. TCAPL, a wholly-owned subsidiary of TCPL, holds a Capital Markets Services (“CMS”) licence under the Securities and Futures Act of Singapore, issued by the Monetary Authority of Singapore (“MAS”) for conducting regulated fund management activities. TCAPL acts as an Investment Manager to the offshore Private Equity Funds set up by TCPL. The aggregated commitments from investors in the offshore Private Equity Funds managed by TCAPL stands at US$ 727 million, as at March 31, 2018. TCMPL, a wholly-owned subsidiary of TCPL, holds a CMS licence from MAS for FRQGXFWLQJUHJXODWHGDFWLYLWLHV H[FOXGLQJ,32V VXFKDVFRUSRUDWH¿QDQFHDQGGHDOLQJVLQ securities.

TCPLC, a wholly-owned subsidiary of TCPL, incorporated in the United Kingdom, is authorised by the Financial Conduct Authority to provide regulated services, with a focus on cross border mergers and acquisitions. TCPLC also acts as an intermediary providing fund marketing services to TCAPL. The Boards of TCMPL and TCPLC have made a decision to cease operations from the end of FY 2017-18. During the year under review, TCPL recorded consolidated Gross Income of US$ 12 million i.e. ` 75 crore (FY 2016-17: US$ 14 million i.e. ` 97 crore). The reduction in Revenue is primarily attributable to the change in the basis of management fees collected from the Private Equity Funds after the end of the Commitment Period. As at March 31, 2018, PBT was at US$ 1 million i.e. ` 6 crore (FY 2016-17: US$ 3 million i.e. ` 19 crore) and PAT was at US$ 0.70 million i.e. ` 4 crore (FY 2016-17: US$ 3 million i.e. ` 17 crore) [US$ amount translated at ` 64.4746, the annual average exchange rate for FY 2017-18].

35 Annual Report 2017-18

vii) Other Subsidiaries In addition to the above subsidiaries, the following entities are also treated as subsidiaries of the Company, as per the applicable Accounting Standards: i. Tata Capital General Partners Limited Liability Partnership (“LLP”), a partnership formed in Singapore to act as a General Partner and manage the Tata Capital Growth Fund Limited Partnership. ii. Tata Capital Healthcare General Partners LLP, a partnership formed in Singapore to act as a General Partner and manage the Tata Capital HBM Healthcare Fund I Limited Partnership. iii. Tata Opportunities General Partners LLP, a partnership formed in Singapore to act as a General Partner and manage the Tata Opportunities Fund Limited Partnership.

6.3.2 Associates/Joint Venture: i) Tata Autocomp Systems Limited (“TACO”) TACO, a Tata Group company, provides products and services in the automotive industry to Indian and global customers. TCL acquired a 24% equity stake in TACO in June 2008, at an aggregate investment amount of ` 185 crore. As per the Unaudited Financial Statements for FY 2017-18, TACO recorded a Total Income of ` 3,149 crore (FY 2016-17: ` 1,741 crore) and PAT of ` 67 crore (FY 2016-17: ` 64 crore). TACO’s paid-up Equity Share Capital and Net Worth as on March 31, 2018 were ` 201 crore and ` 822 crore, respectively.

ii) International Asset Reconstruction Company Private Limited (“IARC”) IARC is registered with RBI under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI”), as a Securitisation and Reconstruction Company. IARC was promoted in 2002 by SURIHVVLRQDOV IURP WKH EDQNLQJ DQG ¿QDQFLDO VHUYLFHV VHFWRU IRU UHFRQVWUXFWLRQ RI ¿QDQFLDODVVHWV During FY 2017-18, on account of acquisition of 51% stake in the Equity Share Capital of IARC by a new investor, TCFSL’s shareholding in IARC reduced from 25.37% to 16.57%. Accordingly, IARC ceased to be an associate of TCFSL, with effect from March 9, 2018.

6.3.3 Other Investments: As at March 31, 2018, the Company had, as per its Consolidated Financial Statements, total investments of ` 1,269 crore (FY 2016-17: ` 1,161 crore). Out of these, ` 457 crore (FY 2016-17: ` 523 crore) were investments in associate companies and the balance ` 808 crore (FY 2016-17: ` 638 crore) were in shares of other companies and in debt LQVWUXPHQWV VXFK DV 'HEHQWXUHV 3DVV 7KURXJK &HUWL¿FDWHV &RPPHUFLDO 3DSHU *RYHUQPHQW Securities, etc. The Company’s investment in its subsidiaries (net of provisions, if any) stood at ` 6,341 crore, as at March 31, 2018 (FY 2016-17: ` 5,438 crore), representing 87% of its total Assets (FY 2016-17: 81%), which amount is eliminated in the Consolidated Financial Statements, in accordance with the prevailing Accounting Standards.

 3URYLVLRQIRU'LPLQXWLRQLQ9DOXHRI,QYHVWPHQWV As at March 31, 2018, an aggregate provision on a consolidated basis, of ` 176 crore (FY 2016-17: ` 181 crore) has been made for diminution, other than temporary, in the value of investments. As at March 31, 2018, an aggregate provision on a standalone basis, of ` 33.5 crore (FY 2016-17: ` 33.5 crore) has been made for diminution, other than temporary, in the value of investments.

36 7. ALLIANCES Tata Capital’s alliances and partnerships are based on and are an extension of its core objects and values. These include alliances with: – Mizuho Securities Company Limited to foster business co-operation in private equity, investment banking (including cross border mergers and acquisitions), securities business LQFOXGLQJ EURNLQJ DQG GLVWULEXWLRQ  VWUXFWXUHG ¿QDQFH DQG RWKHU EXVLQHVV DUHDV VXFK DV Wealth Management. – Mizuho Bank Limited to foster business co-operation, enhance cross-market value creation capabilities and strengthen competitive advantages in addition to aiding each other in gaining a deeper understanding of the Indian and Japanese markets. – Mitsubishi UFJ Securities Company Limited to establish a basis for co-operation in a wide range of strategic business areas that include cross-border investment banking, global offering of Indian equities and working towards development of a local bond market. – International Finance Corporation, Washington D.C., USA (a member of the World Bank Group) to foray into the area of climate change with the formation of TCCL. – Tokyo Century Corporation to co-operate with and assist each other in connection with the operation of the Leasing Business of TCFSL.

8. CONSOLIDATED FINANCIAL STATEMENTS Pursuant to the provisions of Section 129(3) of the Act, the Consolidated Financial Statements of the Company are included in the Annual Report. A separate statement containing the salient features of the Financial Statements of its subsidiaries, associates and joint venture, in the prescribed Form No. AOC-1, is also included in the Annual Report at Page No. 151. The Financial Statements of the subsidiary companies are kept open for inspection by the Members at the 5HJLVWHUHG 2I¿FH RI WKH &RPSDQ\7KH &RPSDQ\ VKDOO SURYLGH IUHH RI FRVW D FRS\ RI WKH )LQDQFLDO Statements of the subsidiary companies to the Members upon their request. The said Financial Statements are also available on the website of the Company, www.tatacapital.com.

9. FINANCE During FY 2017-18, the Company met its funding requirements through Commercial Papers, Unsecured Unlisted Non-Convertible Debentures and CRPS. During the year, the Company allotted CRPS aggregating ` 514.75 crore, with a tenure of seven years and with Put and Call Options at the end of four years and issued Unsecured Unlisted Non-Convertible Debentures of ` 550 crore (Face Value). The aggregate debt of the Company outstanding as at March 31, 2018 was ` 1,819 crore, of which, ` 1,244 crore is payable within one year. The Debt Equity ratio of the Company as at March 31, 2018 was 0.85 times. The Company has been regular in repayment of its borrowings and payment of interest thereon. On a consolidated basis, the Company had borrowings aggregating ` 53,310 crore as at March 31, 2018 (FY 2016 -17: ` 44,625 crore).

10. CREDIT RATING  'XULQJ WKH \HDU XQGHU UHYLHZ WKH &RPSDQ\ KDG LWV LQVWUXPHQWV UDWHG DQG UHDI¿UPHG DV “CRISIL AA+/Stable” for Long Term and “CRISIL A1+” and “ICRA A1+” for Short Term. Further, the CRPS issued by the Company were rated as “CRISIL AA+/Stable” by CRISIL Limited.

11. RISK MANAGEMENT A Risk Management Policy for the Company has been adopted by the Board of Directors. A comprehensive Enterprise Risk Management Framework has been adopted across TCL which OD\VGRZQWKHJXLGHOLQHVIRUULVNLGHQWL¿FDWLRQDVVHVVPHQWDQGPRQLWRULQJLQOLQHZLWKWKHEXVLQHVV operations of entities in the group. Risk is managed by the Board / Risk Management Committee of the Board through appropriate structures, including suitable reporting mechanisms that are in place in TCL.

37 Annual Report 2017-18

The Risk Management Practices of the Company and its subsidiaries are compliant with ISO 31000:2009, which is the International Standard for Risk Management that lays down Principles, Guidelines and Framework for Risk Management in an organisation. The Risk Management Committee of the Board is set up to assist the Board in its oversight of YDULRXV ULVNV UHYLHZ DQG DQDO\VH WKH ULVN H[SRVXUH UHODWHG WR VSHFL¿F LVVXHV SURYLGH RYHUVLJKW RI ULVNDFURVVRUJDQLVDWLRQDQGUHYLHZWKHULVNSUR¿OHRIVXEVLGLDULHV

12. INTERNAL CONTROL SYSTEMS  7&/¶V LQWHUQDO FRQWURO V\VWHP LV GHVLJQHG WR HQVXUH RSHUDWLRQDO HI¿FLHQF\ SURWHFWLRQ DQG FRQVHUYDWLRQ RI UHVRXUFHV DFFXUDF\ DQG SURPSWQHVV LQ ¿QDQFLDO UHSRUWLQJ DQG FRPSOLDQFH ZLWK laws and regulations. The internal control system is supported by an internal audit process for UHYLHZLQJ WKH DGHTXDF\ DQG HI¿FDF\ RI WKH LQWHUQDO FRQWUROV LQFOXGLQJ LWV V\VWHPV DQG SURFHVVHV and compliance with regulations and procedures. Internal Audit Reports are discussed with the Management and are reviewed by the Audit Committee of the Board, which also reviews the adequacy and effectiveness of the internal controls. TCL’s internal control system is commensurate with its size and the nature of its operations.

13. INTERNAL FINANCIAL CONTROLS The Management had reviewed the design, adequacy and operating effectiveness of the Internal Financial Controls of the Company, broadly in accordance with the criteria established under the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organisations of the Treadway Commission (“COSO”). Entity Level Control framework document based on COSO 2013 framework has been documented. The documentation of process maps, key controls, standard operating procedures and risk registers has been completed for all businesses and functions. Further, during FY 2017-18, Management testing has been conducted on a sample basis for all key processes. The Internal Audit team has also conducted a review of the Internal )LQDQFLDO &RQWUROV 5HPHGLDO DFWLRQ KDV EHHQ WDNHQ RU DJUHHG XSRQ ZLWK D ¿QLWH FORVXUH GDWH IRU FRQWUROV ZKHUH ZHDNQHVVHV ZHUH LGHQWL¿HG 7KHUH DUH QR PDWHULDO XQDGGUHVVHG Internal Financial Controls related observations outstanding as at March 31, 2018. Based on the above, the Board believes that adequate Internal Financial Controls exist and are effective.

14. INFORMATION TECHNOLOGY SUPPORT Information Technology (“IT”) after having achieved stability in the core systems and close to total automation of all the business processes, is now moving to a Transformation and Leadership phase. The focus will be on the use of data analytics and digitalization as strategic levers for achieving business objectives. Some key projects that had been initiated, would be completed this year and would transform the IT landscape. Tata Capital would be moving its data centre and key software assets to the cloud to achieve scalability and elasticity to support its business growth at optimum costs. Tata Capital will also enhance its Digital platform for both the Retail and the Corporate businesses, covering all aspects of Social, Mobility, Analytics and Cloud. Use of $UWL¿FLDO,QWHOOLJHQFHDQG0DFKLQH/HDUQLQJZLOODOVREHDNH\IRFXVDUHDWRGULYHEXVLQHVVJURZWK automate processes, improve productivity and enhance customer experience. 15. DIGITAL PLATFORM Tata Capital has continued to evolve on its digital journey and has, over the last year, invested in building a comprehensive set of products and a slew of new-to-market processes to improve HI¿FLHQF\GHOLYHUEHVWLQFODVVVROXWLRQVWRLWVFXVWRPHUVDQGHQKDQFHSURGXFWLYLW\ Tata Capital strongly believes that analytics, backed by top-of-the-line technology is core to its business strategy. It plays a key role in customer acquisition, developing predictive models to help while creating a more personalised and seamless customer experience across all platforms and building superior underwriting capabilities. It has leveraged this through various initiatives launched in the year, including developing a scoring model using alternate data sources for acquisition,

38 instituting a scorecard for small ticket Business Loans and through tie-ups with industry experts, FRFUHDWHGVFRUHFDUGVIRUFUHGLWULVNDVVHVVPHQWIRUVPDOOHUWLFNHWFRPPHUFLDO¿QDQFHORDQV With new-age solutions emerging at every corner, Tata Capital has adapted by creating a robust and scalable set of solutions for all its retail and institutional customers. ‘TatkalCEQ loans’, which LV DQ LQGXVWU\ ¿UVW ZHE DSSOLFDWLRQ IRU &(4 ¿QDQFH WKH µ'LJLWDO /HQGLQJ 3ODWIRUP¶ IRU FRUSRUDWH customers, which makes borrowing a very convenient and transparent process for customers, LPSOHPHQWDWLRQ RI D VXSHULRU &50 SODWIRUP IRU LPSURYLQJ LQWHUQDO SURFHVV HI¿FLHQFLHV DQG the introduction of biometric e-KYC to enable faster on-boarding of customers, are some of the solutions that have been developed. Working with FinTechs has also helped Tata Capital tap new segments like Online Consumer Durable Loans and other End Use Loans. It has also enhanced the experience across current products and processes, including the Online Chatbot - which has moved beyond the realm of a simple service to a sales engagement channel and stimulating the customer at every step through an assisted contact centre. Over FY 2018-19, Tata Capital will continue to build platforms for sales and service, create seamless product journeys and enhance self-service solutions while partnering with FinTechs to create more robust ecosystems.

16. HUMAN RESOURCES The Company recognises people as its most valuable asset and it has built an open, transparent and meritocratic culture to nurture this asset. Tata Capital had 3887 permanent employees as at March 31, 2018. Tata Capital’s mission on creating a high performance culture has been further strengthened WKURXJK DUHDV OLNH EXLOGLQJ D FDSDELOLW\ PRGHO LGHQWL¿FDWLRQ RI FULWLFDO FRPSHWHQFLHV  QXUWXULQJ talent through interventions such as mentoring, competency based training programs and cross functional projects.  7DWD &DSLWDO¶V WKLUG &XOWXUDO 6XUYH\ EDVHG RQ WKH WHQ LGHQWL¿HG DWWULEXWHV DQG FRQGXFWHG E\ WKH Gallup Organisation in 2017, has given it a very healthy and positive score of 4.31 on a scale of 5. Tata Capital’s focus on Employee Engagement has resulted in its overall Employee Engagement Scores (Q12) climbing steadily from 3.52 in 2009 to 4.14 in 2016, in surveys, conducted by the Gallup Organisation. As part of the journey to becoming a benchmark organisation in HR practices, Tata Capital has DFKLHYHGLWV3HRSOH&DSDELOLW\0DWXULW\0RGHO ³3&00´ /HYHO&HUWL¿FDWLRQDQGIXUWKHUDVVHVVHG at Level 4 (SCAMPI B equivalent assessment) and has now embarked on the journey of achieving /HYHO&HUWL¿FDWLRQ'XULQJWKHth CII HR Excellence Award process – 2017-18, Tata Capital was UHFRJQL]HGZLWKWKHµµ6LJQL¿FDQW$FKLHYHPHQWLQ+5([FHOOHQFH$ZDUG¶¶ Tata Capital’s Learning & Development (“L&D”) initiatives are focused on enhancing the functional and behavioural competencies of its employees through L&D interventions, such as Executive Development Programs, e-learning and various classroom based training programs. Tata Capital was awarded the Kamikaze B2B Employee Engagement Awards for ‘Best Use of Training in Employee Engagement’ and ‘Best use of Voice of the Employee’ for FY 2017-18. It was also awarded the Best Blended Learning Program by TISS - Leapvault CLO Awards 2017. Tata Capital also achieved key milestones in FY 2017-18, whereby some of the key HR processes were digitized and made fully operational, supporting the fast pace of our growing manpower and thus achieving an objective of improved employee experience, better employee insight and moving towards a paperless environment. Tata Capital is committed to maintain the highest standards of health, safety and security for its employees and business associates and to operate in a healthy and safe environment.

39 Annual Report 2017-18

17. TATA BUSINESS EXCELLENCE MODEL Tata Capital continues to enhance its capabilities and processes in keeping with market and regulatory changes, using the framework of the Tata Business Excellence Model (“TBEM”) (based on Baldridge Criteria, USA), which covers aspects of Leadership and Governance, Strategic Planning, Customer Focus, Measurement, Analysis and Knowledge Management, Workforce Focus DQG2SHUDWLRQV)RFXV7DWD&DSLWDOSDUWLFLSDWHGLQLWV¿IWK7%(0H[WHUQDODVVHVVPHQWFRQGXFWHGE\ the Tata Business Excellence Group (“TBExG”) (a division of Tata Sons Limited) in November 2017 and was placed in the 550-600 score band, which indicates the level of “Emerging Industry Leader”. The score band has changed as compared to that in FY 2016-17. The assessment provided Tata Capital with important feedback in terms of its current strengths and opportunities for improvements to work towards the coming year. Key strengths indicated in this report were the organisation’s alignment with its Vision and the building of a capability and structure for achieving the Vision, focus on building a quality book, Risk Management, Internal Audit mechanism and Governance mechanisms. TCFSL successfully underwent ISO 9001:2015 surveillance audit for the operations of its assets businesses, without any major non-conformity. Tata Capital is also beginning to implement Lean Six Sigma as a tool for improving its operational focus in order to enhance customer satisfaction DQGLPSURYHLQWHUQDOHI¿FLHQFLHV7DWD&DSLWDOODXQFKHGLWV,GHDWLRQDQG,QQRYDWLRQSODWIRUP³%ULJKW Ideas” in 2016 for employees to contribute through ideas and suggestions on business impacting areas. Through this platform, the employees can also provide ideas against the challenges thrown by the Leadership Team. Many practices of Tata Capital have been recognized as Group wide Best Practices consistently, since January 2017.

18. THE TATA CAPITAL BRAND The Tata Capital brand is built around its brand promise “We only do what’s right for you”. The brand stands by this promise and aims to deliver solutions that are ‘right’ for our customers, VWDNHKROGHUV DQG VRFLHW\ DW ODUJH E\ FRPELQLQJ JHQXLQH FDUH DQG ¿QDQFLDO H[SHUWLVH 6LQFH LWV launch in 2008, the brand has grown from strength to strength and now enjoys high awareness DQG FRQVLGHUDWLRQ DPRQJ LWV FRPSHWLWLRQ LQ WKH ¿QDQFLDO VHUYLFHV VHFWRU HVSHFLDOO\ LQ WKH 1%)& segment. This has been due to effective brand building initiatives with a combination of judicious use of media and customer-centric products to back up marketing efforts. This is the second year running that Tata Capital has been adjudged as one of the best BFSI brands by the Economic Times.  7KLV\HDU¶VEUDQGFDPSDLJQVVDZWKHODXQFKRI6DODDP/RDQVWKHZRUOG¶V¿UVWGHPRFUDWL]HGORDQ which puts the power of loan approval of application, from deserving individuals, in the hands of the public. The campaign for Salaam Loans was shortlisted for a Cannes Lion in 2017 and has won a Spikes Asia 2018 Gold, a ‘Lotus’ at ADFEST 2018 and a Grand Prix at the Asia Consumer Engagement Forum 2017. The brand has also continued to focus on social and digital media with targeted campaigns around Wedding Loans, Business Loans, the myLoan Mobile App and overall, always-on Content Marketing.

19. BUSINESS DEVELOPMENT During the year, the Business Development Group (“BDG”) enabled opportunities and relationships within and outside the Tata Group for various businesses of Tata Capital. The BDG also enhanced its interactions with domestic trade bodies and with other entities, with a view to promoting the Tata Capital brand and laying the groundwork for future business. Additionally, the BDG continued its regular interactions and deepened relationships with trade bodies of Canada, the UK, Singapore and Australia, amongst others.

20. CORPORATE SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility is deeply rooted in the Tata Group’s business philosophy. The Group companies have a sense of responsibility towards making use of its existing resources and NQRZOHGJHWRQRWRQO\PDNHSUR¿WVEXWDOVRVROYHVRFLDODQGHQYLURQPHQWDOLVVXHV

40 The Company shares the Group’s belief that our society can truly progress, if every individual is included and empowered in the story of development. To guide us in this journey, the &RPSDQ\ KDV GH¿QHG D &RUSRUDWH 6RFLDO 5HVSRQVLELOLW\ ³&65´  SROLF\ ZKLFK RXWOLQHV WKH WKUXVW areas of development viz. Livelihood and Employability, Health, Education and Environment, as adopted by the CSR Committee of the Board and which is available on the Company’s website, www.tatacapital.com. As per the provisions of Section 135 of the Act, the Company has constituted a CSR Committee. In FY 2017-18, the Company’s subsidiaries, viz. TCFSL, TCHFL and TCCL, have spent an aggregate amount of approximately ` 15 crore on CSR activities in projects and programmes covered under Schedule VII of the Act.  6LQFH WKH DYHUDJH QHW SUR¿W RI WKH &RPSDQ\ LQ WKH WKUHH LPPHGLDWHO\ SUHFHGLQJ ¿QDQFLDO \HDUV calculated as per Section 198 of the Act, read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, was negative, the Company was not required to spend any amount on CSR activities for FY 2017-18. Accordingly, the Company has not spent any amount on CSR. The Annual Report on CSR activities is annexed herewith as Annexure ‘A’. The budget of the subsidiaries was spent towards projects and programmes, covered under Schedule VII to the Act, as approved by the CSR Committees of the Board and its subsidiaries. To conceptualise and implement the projects, Tata Capital follows a robust process, including appraising and selecting technically sound NGOs, planning the project based on baseline assessment, creating a project plan for implementation and monitoring and evaluation mechanisms. 7KLVKHOSVWREULQJWKHGHVLUHGSRVLWLYHDQGPHDVXUDEOHUHVXOWVIRUWKHWDUJHWEHQH¿FLDULHV  $GGLWLRQDOO\WKH&RPSDQ\DGKHUHVWRWKH7DWD*URXS¶V7DWD$I¿UPDWLYH$FWLRQ3URJUDPPHEDVHGRQ WKHIUDPHZRUNGH¿QHGE\&RQIHGHUDWLRQRI,QGLDQ,QGXVWULHV7KHIUDPHZRUNIRFXVVHVRQXSOLIWPHQW RI 6FKHGXOHG &DVWHV DQG 6FKHGXOHG 7ULEHV DQG LGHQWL¿HV (V DV NH\ DUHDV RI GHYHORSPHQW LH Education, Employability, Employment and Entrepreneurship. In addition to the 4Es, Tata Capital also adheres to ‘Essentials’ as another category to provide for basic services like shelter, water and electricity.

21. COMPLIANCE The Company is registered with the RBI as a Core Investment Company (“CIC”). The Company has complied with and continues to comply with all applicable laws, rules, circulars and regulations, including the Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016 (“Directions”), as amended from time to time, and it does not carry on any activities other than WKRVHVSHFL¿FDOO\SHUPLWWHGE\WKH5%,IRU&,&V

22. DEPOSITS The Company did not hold any public deposits at the beginning of the year nor has it accepted any public deposits during the year under review.

23. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS The provisions of Section 186 of the Act pertaining to investment and lending activities is not applicable to the Company since the Company is an NBFC whose principal business is acquisition of securities. Details of guarantees and/or security in connection with loans to other bodies corporates or persons as covered under the provisions of Section 186 of the Act, are given in Note No. 27 to the Standalone Financial Statements.

24. DIRECTORS Based on the recommendation of the Nomination and Remuneration Committee (“NRC”), the Board of Directors and the Members of the Company approved the:

41 Annual Report 2017-18

(i) Re-appointment of Mr. Praveen P. Kadle (DIN: 00016814) as the Managing Director & CEO of the Company, with effect from September 18, 2017 up to March 31, 2018. Mr. Kadle was also re-appointed as the Managing Director & CEO of TCFSL, for the same period, his appointment in TCFSL being co-terminus with his appointment as Managing Director & CEO of TCL; (ii) Appointment of Mr. Mehernosh B. Kapadia (DIN: 00046612) as an Independent Director of the Company, for an initial term of three years, with effect from October 24, 2017; (iii) Appointment of Ms. Aarthi Subramanian (DIN: 07121802), as an Additional Director and as a Non-Executive Director of the Company, with effect from October 30, 2017; (iv) Re-appointment of Mr. Nalin M. Shah (DIN: 00882723) as an Independent Director of the Company, for a second term of three years commencing from April 1, 2018 to March 31, 2021; and (v) Appointment of Mr. Rajiv Sabharwal (DIN: 00057333) as the Managing Director & CEO of the &RPSDQ\IRUDSHULRGRI¿YH\HDUVZLWKHIIHFWIURP$SULO7KHVDLGDSSRLQWPHQWZDV approved by the RBI vide its letter dated December 14, 2017. During the year, Mr. Ishaat Hussain (DIN: 00027891) retired as the Non-Executive Director of the Company, with effect from September 3, 2017 and Mr. Janki Ballabh (DIN: 00011206) retired as an Independent Director of the Company, with effect from end of day on October 23, 2017, in accordance with the Governance Guidelines on Board Effectiveness adopted by the Company. Dr. Ritu Anand (DIN: 00363699) ceased to be a Non-Executive Director of the Company, with effect from the close of business hours on October 31, 2017 and Mr. Praveen P. Kadle (DIN: 00016814) retired as the Founding Managing Director & CEO of Company, with effect from the end of day on March 31, 2018. The Directors place on record their appreciation for the valuable contribution made by Mr. Hussain, Mr. Ballabh, Dr. Anand and Mr. Kadle, during their tenure as Directors of the Company. Mr. Saurabh Agrawal was appointed as the Chairman of the Company, with effect from September 1, 2017. In accordance with the provisions of the Act and the Articles of Association of the Company, Mr. F. N. Subedar (DIN: 00028428), Director, is liable to retire by rotation at the ensuing Annual General Meeting (“AGM”) of the Company and is eligible for re-appointment. The Members of the Company may wish to refer to the accompanying Notice of the AGM of the Company, for the brief Resume of Mr. Subedar. The Company has received declarations from the Independent Directors, viz. Mr. Mehernosh B Kapadia (DIN: 00046612) and Mr. Nalin M. Shah (DIN: 00882723), stating that they meet the criteria of independence as provided in Section 149(6) of the Act.

25. EVALUATION OF THE BOARD, ITS COMMITTEES AND INDIVIDUAL DIRECTORS Pursuant to the provisions of the Act, the Board has carried out an annual evaluation of its own performance and of the individual Directors (including the Chairman) as well as an evaluation of the working of all the Committees of the Board. The Board of Directors was assisted by the NRC. The performance evaluation was carried out by seeking inputs from all the Directors / Members of the Committees, as the case may be. The Guidance Note on Board Evaluation (“Guidance Note”) issued by the Securities and Exchange Board of India (“SEBI”) had encouraged companies which were not covered under Chapter IV of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”) to follow the criteria mentioned in the Guidance Note. The Board of the Company followed the said criteria recommended under the Guidance Note for evaluating the performance of the Board as a whole, Committees of the Board, Individual Directors and Chairperson. The criteria for evaluation of the Board as a whole, inter alia, covered parameters such as Structure of the Board, Meetings of the Board and Functions of the Board. The criteria for evaluation of Individual

42 'LUHFWRUV FRYHUHG SDUDPHWHUV VXFK DV GHWDLOV RI SURIHVVLRQDO TXDOL¿FDWLRQV DQG SULRU H[SHULHQFH UHOHYDQW WR WKH &RPSDQ\NQRZOHGJH DQG FRPSHWHQF\IXO¿OOPHQW RI IXQFWLRQV DELOLW\ WR IXQFWLRQ DV a team, etc. The criteria for evaluation of the Board Committees covered areas related to mandate and composition, effectiveness of the Committee, structure of the Committee and meetings, etc. The feedback of the Independent Directors on their review of the performance of Non-Independent Directors and the Board as a whole, the performance of the Chairman of the Company and the DVVHVVPHQW RI WKH TXDOLW\ TXDQWLW\ DQG WLPHOLQHVV RI ÀRZ RI LQIRUPDWLRQ EHWZHHQ WKH &RPSDQ\ Management and the Board was taken into consideration by the Board in carrying out the performance evaluation. 26. POLICY ON APPOINTMENT OF DIRECTORS AND REMUNERATION POLICY OF THE COMPANY The NRC develops the competency requirements of the Board based on the industry and the strategy of the Company, conducts a gap analysis and recommends the reconstitution of the Board, as and when required. It also recommends to the Board, the appointment of Directors having good personal and professional reputation and conducts reference checks and due diligence of all Directors before recommending them to the Board. Besides the above, the NRC ensures that the new Directors are familiarised with the operations of the Company and endeavours to provide relevant training to the Directors. In accordance with the provisions of Section 178 of the Act, the Board of Directors have adopted a Policy on Board Diversity and Director Attributes and a Remuneration Policy. The Policy on Board Diversity and Director Attributes has been framed to encourage diversity of thought, experience, knowledge, perspective, age and gender in the Board. The Remuneration Policy for Directors, Key Managerial Personnel and all other employees is aligned to the philosophy on the commitment of fostering a culture of leadership with trust. The Remuneration Policy aims to ensure that the level and composition of the remuneration of the Directors, Key Managerial Personnel and all other HPSOR\HHV LV UHDVRQDEOH DQG VXI¿FLHQW WR DWWUDFW UHWDLQ DQG PRWLYDWH WKHP WR VXFFHVVIXOO\ UXQ WKH Company. The Policy on Board Diversity and Director Attributes as also the Remuneration Policy of the Company are attached hereto as Annexures ‘B’ and ‘C’, respectively. 27. KEY MANAGERIAL PERSONNEL  0U 3UDYHHQ 3 .DGOH 0DQDJLQJ 'LUHFWRU  &(2 0U 3XQHHW 6KDUPD &KLHI )LQDQFLDO 2I¿FHU DQG Ms. Avan Doomasia, Company Secretary, were the Key Managerial Personnel (“KMP”) of the Company as also the KMPs of TCFSL, a wholly owned subsidiary of the Company, for FY 2017-18. Mr. Praveen P. Kadle retired as the Managing Director & CEO of the Company and TCFSL, with effect from end of day on March 31, 2018 and consequently ceased to be a Key Managerial Personnel. Mr. Rajiv Sabharwal is the Managing Director & CEO and Key Managerial Personnel of the Company, with effect from April 1, 2018. Accordingly, Mr. Rajiv Sabharwal, Managing Director & CEO, Mr. Puneet Sharma, Chief Financial 2I¿FHU DQG 0V $YDQ 'RRPDVLD &RPSDQ\ 6HFUHWDU\ DUH WKH .03V RI WKH &RPSDQ\ RI ZKLFK Mr. Sharma and Ms. Doomasia are also the KMPs of TCFSL.

28. DIRECTORS’ RESPONSIBILITY STATEMENT  %DVHG RQ WKH IUDPHZRUN RI LQWHUQDO ¿QDQFLDO FRQWUROV DQG FRPSOLDQFH V\VWHPV HVWDEOLVKHG DQG maintained by the Company, work performed by the Internal, Statutory and Secretarial Auditors, LQFOXGLQJ DXGLW RI LQWHUQDO ¿QDQFLDO FRQWUROV RYHU ¿QDQFLDO UHSRUWLQJ E\ WKH VWDWXWRU\ DXGLWRUV DQG the reviews performed by the Management and the relevant Board Committees, including the $XGLW &RPPLWWHH WKH %RDUG LV RI WKH RSLQLRQ WKDW WKH &RPSDQ\¶V LQWHUQDO ¿QDQFLDO FRQWUROV ZHUH adequate and effective, during FY 2017-18. Accordingly, pursuant to Section 134(5) of the Act, the Board of Directors, to the best of their NQRZOHGJHDQGDELOLW\FRQ¿UPWKDW a) in the preparation of the annual accounts, the applicable accounting standards and guidance provided by The Institute of Chartered Accountants of India had been followed and that there

43 Annual Report 2017-18

are no material departures thereof; b) they had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of WKHVWDWHRIDIIDLUVRIWKH&RPSDQ\DWWKHHQGRIWKH¿QDQFLDO\HDUDQGRIWKHSUR¿WDQGFDVK ÀRZVRIWKH&RPSDQ\IRUWKH\HDU  F  WKH\KDGWDNHQSURSHUDQGVXI¿FLHQWFDUHIRUWKHPDLQWHQDQFHRIDGHTXDWHDFFRXQWLQJUHFRUGV in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) they had prepared the annual accounts on a going concern basis;  H  WKH\ KDG ODLG GRZQ LQWHUQDO ¿QDQFLDO FRQWUROV WR EH IROORZHG E\ WKH &RPSDQ\ DQG WKDW VXFK LQWHUQDO¿QDQFLDOFRQWUROVZHUHDGHTXDWHDQGRSHUDWLQJHIIHFWLYHO\DQG f) they had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

29. CORPORATE GOVERNANCE Company’s Philosophy on Corporate Governance The Company recognises its role as a corporate citizen and endeavours to adopt the best practices and the highest standards of corporate governance through transparency in business ethics, accountability to its customers, Government and others. The Company’s activities are carried out in accordance with good corporate practices and the Company is constantly striving to better these practices by adopting best practices. The Company believes that governance practices enable the Management to direct and control the DIIDLUV RI WKH &RPSDQ\ LQ DQ HI¿FLHQW PDQQHU DQG WR DFKLHYH WKH &RPSDQ\¶V JRDO RI PD[LPLVLQJ value for all its stakeholders. The Company will continue to focus its resources, strengths and VWUDWHJLHV WR DFKLHYH LWV YLVLRQ RI EHFRPLQJ D OHDGLQJ ¿QDQFLDO VHUYLFHV FRPSDQ\ LQ ,QGLD ZLWK a global footprint, while upholding the core values of transparency, integrity, honesty and accountability, which are fundamental to Tata companies. As a part of the Tata Group, Tata Capital has a strong legacy of fair, transparent and ethical governance practices. The Corporate Governance philosophy is further strengthened with the adherence to the Tata Business Excellence Model as a means to drive excellence, the Key Performance Metrics for tracking progress on long-term strategic objectives and the Tata Code of Conduct (“TCOC”), which articulates the values, ethics and business principles and serves as a guide to the Company, its Directors and employees, supplemented with an appropriate mechanism to report any concern pertaining to non-adherence to the TCOC. In addition, the Company has adopted Governance Guidelines on Board Effectiveness, a Code of Conduct for Prevention of Insider Trading, a Code of Corporate Disclosure Practices, a Vigil Mechanism, a Fair Practices &RGHDQ$I¿UPDWLYH$FWLRQ3ROLF\D3ROLF\DJDLQVW6H[XDO+DUDVVPHQWLQWKH:RUNSODFHD3ROLF\ on Board Diversity and Director Attributes, a Code of Conduct for Non-Executive Directors, an Occupational Health and Safety Management System, Information Technology Policy, Information Security Policy, Cyber Security Policy and an Anti-Bribery and Anti-Corruption (“ABAC”) Policy. The Company has signed the Tata Brand Equity and Business Promotion (“BEBP”) Agreement with Tata Sons Limited for subscribing to the TATA BEBP Scheme. The Company abides by the TCOC and the norms for using the Tata Brand identity.

 D %RDUGRI'LUHFWRUV The Board of Directors, along with its Committees, provides leadership and guidance to the Company’s Management and directs, supervises and controls the activities of the Company. The size of the Board is commensurate with the size and business of the Company. As on March 31, 2018, the Board comprised six Directors, viz. Mr. Saurabh Agrawal, Chairman of the Board of Directors, Mr. Mehernosh B Kapadia, Mr. Nalin M. Shah, Mr. F. N. Subedar,

44 Ms. Aarthi Subramanian and Mr. Praveen P. Kadle as the Managing Director & CEO of the Company. Mr. Kapadia and Mr. Shah are the Independent Directors (“ID”) of the Company and Mr. Agrawal, Mr. Subedar and Ms. Subramanian are the Non-Executive Directors (“NED”) of the Company. Mr. Praveen P. Kadle was re-appointed as the Managing Director & CEO of the Company, for a period commencing from September 18, 2017 and ending on March 31, 2018. During the year, Mr. Ishaat Hussain retired as the Non-Executive Director of the Company, with effect from September 3, 2017 and Mr. Janki Ballabh retired as an Independent Director of the Company, with effect from end of day on October 23, 2017, in accordance with the Governance Guidelines on Board Effectiveness adopted by the Company. Dr. Ritu Anand ceased to be a Non-Executive Director of the Company, with effect from the close of business hours on October 31, 2017 and Mr. Praveen P. Kadle (DIN: 00016814) retired as the Founding Managing Director & CEO of Company, with effect from the end of day on March 31, 2018. Mr. Rajiv Sabharwal (who was appointed as the Managing Director & CEO, Designate with effect from January 2, 2018) was appointed as the Managing Director & CEO of the Company, with effect from April 1, 2018. Meetings of the Board were generally chaired by Mr. Ishaat Hussain upto August 31, 2017. Mr. Saurabh Agrawal was appointed as the Chairman of the Board of Directors, with effect from September 1, 2017. During FY 2017-18, twelve Meetings of the Board of Directors were held on May 4, 2017, May 10, 2017, July 28, 2017, August 29, 2017, September 18, 2017, September 27, 2017, November 2, 2017, December 13, 2017, January 29, 2018, February 23, 2018, February 28, 2018 and March 21, 2018. The details of attendance at Board Meetings and at the previous AGM of the Company are, given below:

Board Meetings Whether present at previous AGM 1DPHRI'LUHFWRU Category held on Held Attended August 29, 2017 Mr. Ishaat Hussain1 Non-Executive Director 12 3 Yes Mr. Janki Ballabh2 Independent Director 12 5 No Mr. Nalin M. Shah Independent Director 12 11 No Mr. F. N. Subedar Non-Executive Director 12 11 Yes Dr. Ritu Anand3 Non-Executive Director 12 4 Yes Mr. Saurabh Agrawal4 Non-Executive Director 12 8 Yes Mr. Mehernosh B. Kapadia5 Independent Director 12 6 No Ms. Aarthi Subramanian6 Non-Executive Director 12 6 No Mr. Praveen P. Kadle7 Managing Director & CEO 12 12 Yes Notes: 1. Mr. Ishaat Hussain retired as a Director of the Company, with effect from September 3, 2017. 2. Mr. Janki Ballabh retired as a Director of the Company, with effect from end of day on October 23, 2017. 3. Dr. Ritu Anand ceased to be a Director of the Company, with effect from the close of business hours on October 31, 2017.

45 Annual Report 2017-18

4. Mr. Saurabh Agrawal was appointed as a Director of the Company, with effect from July 28, 2017. 5. Mr. Mehernosh B. Kapadia was appointed as a Director of the Company, with effect from October 24, 2017. 6. Ms. Aarthi Subramanian was appointed as a Director of the Company, with effect from October 30, 2017. 7. Mr. Praveen P. Kadle retired as the Managing Director & CEO of the Company, with effect from the end of the day on March 31, 2018.

Mr. Nalin M. Shah, Chairman of the Audit Committee had authorized Mr. F. N. Subedar, a Member of the Audit Committee to attend the last AGM on his behalf and Mr. Janki Ballabh, Chairman of the NRC, had authorized Mr. Ishaat Hussain, a Member of the NRC, to attend the last AGM, on his behalf. Dr. Ritu Anand, Chairperson of the Stakeholders Relationship Committee had attended the last AGM of the Company. The Company paid Sitting fees to the NEDs and IDs for attending meetings of the Board and the Committees of the Board and will pay Commission to the NEDs and IDs for FY 2017-18, within the maximum prescribed limits. Details of Sitting Fees and Commission are, given below: (` in lakh) Sitting Fees paid IRUDWWHQGLQJ Commission paid Commission Board and 1DPHRI'LUHFWRU V IRU WREHSDLGIRU Committee FY 2016-17 FY 2017-18 Meetings during FY 2017-18 Mr. Ishaat Hussain1, 2.00 20 11 Non-Executive Director Mr. Janki Ballabh2, 6.90 25 15 Independent Director Mr. Nalin M. Shah, 14.10 25 25 Independent Director Mr. F. N. Subedar, 4.40 20 _ Non-Executive Director Dr. Ritu Anand, _ 3.00 20 Non-Executive Director Mr. Saurabh Agrawal, __ 3.00 Non-Executive Director Mr. Mehernosh B. Kapadia3 _ 8.40 11 Independent Director Ms. Aarthi Subramanian __ 5.10 Non-Executive Director Notes: 1. Mr. Ishaat Hussain retired as a Director of the Company, with effect from September 3, 2017 and hence, Commission will be paid only for part of FY 2017-18. 2. Mr. Janki Ballabh retired as a Director of the Company, with effect from end of day on October 23, 2017 and hence, Commission will be paid only for part of FY 2017-18.

46 3. Mr. Mehernosh B. Kapadia was appointed as a Director of the Company, with effect from October 24, 2017 and hence, Commission will be paid only for part of FY 2017-18. At the Meetings of the NRC and the Board of Directors, both held on May 7, 2018, an Incentive Remuneration of ` 3.10 crore was approved as payable to Mr. Praveen P. Kadle for FY 2017-18. With this, the total remuneration of Mr. Kadle for FY 2017-18, was ` 5.59 crore. None of the NEDs and IDs had any pecuniary relationships or transactions with the Company during the year under review. A summary of the minutes of the meetings of the Boards of the subsidiary companies is placed before the Board, for noting on a quarterly basis.

 E &RPPLWWHHVRIWKH%RDUG   7KH %RDUG KDV FRQVWLWXWHG &RPPLWWHHV ZLWK VSHFL¿F WHUPV RI UHIHUHQFH WR IRFXV RQ VSHFL¿F issues and ensure expedient resolution of diverse matters. These include the Audit Committee, Nomination and Remuneration Committee (“NRC”), Finance and Asset Liability Supervisory Committee (“ALCO”), Risk Management Committee (“RMC”), Stakeholders Relationship Committee (“SRC”) and Corporate Social Responsibility Committee (“CSR”). The Company Secretary is the Secretary of all the aforementioned Committees. The Board of Directors and the Committees also take decisions by circular resolutions which are noted by the Board / respective Committees of the Board at their next meetings. The Minutes of meetings of all Committees of the Board are circulated to the Board of Directors, for noting. i) Audit Committee The Audit Committee of TCL, as at March 31, 2018, comprised Mr. Nalin M. Shah (Chairman), Mr. Mehernosh B Kapadia and Mr. F. N. Subedar. The composition of the Audit Committee is in line with the provisions of Section 177 of WKH$FW$OOWKH0HPEHUVKDYHWKHDELOLW\WRUHDGDQGXQGHUVWDQG¿QDQFLDOVWDWHPHQWVDQG KDYHUHOHYDQW¿QDQFHDQGRUDXGLWH[SHULHQFH    7KH%RDUGKDVDGRSWHGDQ$XGLW&RPPLWWHH&KDUWHUZKLFKGH¿QHVWKHFRPSRVLWLRQRIWKH Audit Committee, its authority, role, responsibilities and powers and reporting functions in accordance with the Act and Guidelines issued by the RBI. The Charter is reviewed from time to time and is available on the website of Company, www.tatacapital.com. Given below, inter alia, is a gist of the responsibilities of the Audit Committee: – Recommend the appointment and removal of the Auditors and their remuneration, nature and scope of audit – Ensure adequacy of internal controls and compliances and recommend remedial measures – Review adequacy of the Internal Audit function – Review and monitor the auditors’ independence and performance and effectiveness of the audit process ±2YHUVHH¿QDQFLDOUHSRUWLQJSURFHVVDQGGLVFORVXUHRI¿QDQFLDOLQIRUPDWLRQ ±([DPLQHWKH¿QDQFLDOVWDWHPHQWVDQGWKH$XGLWRUV¶5HSRUWWKHUHRQ ±(YDOXDWHLQWHUQDO¿QDQFLDOFRQWUROVDQGWKHULVNPDQDJHPHQWV\VWHPV – Act as a link between the Statutory Auditors, the Internal Auditors and the Board of Directors – Review accounting policies – Monitor compliance with TCOC – Approve any transactions of the Company with related parties or any subsequent

47 Annual Report 2017-18

PRGL¿FDWLRQVWKHUHRI – Scrutinise inter-corporate loans and investments – Evaluate the valuation of undertakings or assets of the Company, if necessary – Monitor the end use of funds raised through public offers and related matters ±5HYLHZ¿QGLQJVRILQWHUQDOLQYHVWLJDWLRQVIUDXGVLUUHJXODULWLHVHWF – Carry out additional functions as per the regulatory requirements applicable to the Company or in the terms of reference of the Audit Committee – Carry out the responsibilities under the Code of Conduct for Prevention of Insider Trading. During FY 2017–18, nine Meetings of the Audit Committee were held on the following dates: May 4, 2017, May 30, 2017, June 28, 2017, July 28, 2017, November 2, 2017, December 13, 2017, January 29, 2018, February 28, 2018 and March 21, 2018. The attendance of the Members at the Meetings of Audit Committee held during FY 2017-18 is, given below:

1RRI0HHWLQJV 1DPHRIWKH0HPEHU Category Held Attended Mr. Nalin M. Shah, Chairman Independent Director 9 9 Mr. Mehernosh B. Kapadia1 Independent Director 9 5 Mr. F. N. Subedar Non-Executive Director 9 8 Mr. Janki Ballabh2 Independent Director 9 4 Notes: 1. Mr. Mehernosh B. Kapadia was appointed as a Member of the Audit Committee, with effect from October 24, 2017. 2. Mr. Janki Ballabh ceased to be a Member of Audit Committee, with effect from end of day on October 23, 2017. The Board has accepted all the recommendations made by the Audit Committee during the year. Besides the Members of the Committee, meetings of the Audit Committee are DWWHQGHG E\ WKH 0DQDJLQJ 'LUHFWRU  &(2 WKH &KLHI )LQDQFLDO 2I¿FHU WKH &RPSDQ\ Secretary, the Statutory Auditors and the Chief Internal Auditor. Further, Meetings of the Audit Committee for considering Financials are also attended by the other Directors, as Invitees. The Internal Audit function is headed by the Chief Internal Auditor of the Company who reports to the Chairman of the Audit Committee to ensure independence of operations. ii) Other Committees The composition of the various Board Committees of the Company, as on March 31, 2018, is as under:

Committee Director NRC RMC ALCO SRC CSR Mr. Saurabh Agrawal 99 CH 9 CH –– (Non-Executive Director) Mr. Nalin M. Shah 9 CH 9 ––– (Independent Director) Mr. Mehernosh B Kapadia 9 9999 (Independent Director)

48 Mr. F. N. Subedar ––9 – 9 CH (Non-Executive Director) Ms. Aarthi Subramanian 9 ––9 CH 9 (Non-Executive Director) Mr. Praveen P. Kadle – 9999 (Managing Director & CEO) CH – Chairperson Notes: 1. Consequent to the retirement of Mr. Praveen P. Kadle as the Managing Director & CEO of the Company, he ceased to be the Member of all the Committees in which he was a Member, with effect from end of day on March 31, 2018. 2. The Committees of the Board have been reconstituted as under, with effect from April 1, 2018: a. Mr. Nalin M. Shah was appointed as a Member of ALCO, with effect from April 1, 2018; b. Mr. Mehernosh B. Kapadia ceased to be a Member of RMC and ALCO, with effect from April 1, 2018; c. Ms. Aarthi Subramanian ceased to be a Member of the NRC, with effect from April 1, 2018; and d. Mr. Rajiv Sabharwal was appointed as a Member of RMC, ALCO, SRC and CSR, with effect from April 1, 2018.

c. Secretarial Standards The Company is in compliance with SS -1 i.e. Secretarial Standard on Meetings of the Board of Directors and SS – 2 i.e. Secretarial Standard on General Meetings, issued by the Institute of Company Secretaries of India.  G 5HJLVWHUHG2I¿FH   7KH 5HJLVWHUHG 2I¿FH RI WKH &RPSDQ\ KDV VKLIWHG IURP 2QH )RUEHV 'U 9 % *DQGKL 0DUJ Fort, Mumbai - 400 001 to 11th ÀRRU 7RZHU$ 3HQLQVXOD %XVLQHVV 3DUN *DQSDWUDR .DGDP Marg, Lower Parel, Mumbai - 400 013, with effect from April 1, 2018. e. Unclaimed Amount As on March 31, 2018, the unclaimed amount with respect to the Dividend/Redemption of CRPS of the Company was, as under: 'DWHRI7UDQVIHUWRWKH,QYHVWRU Unclaimed Amount Particulars Education and Protection Fund (in `) (“IEPF”) Dividend 1,24,950 April 29, 2024 Dividend 69,835 March 1, 2025 Redemption 10,00,000 March 1, 2025 Total 11,94,785 Further, there was no amount required to be transferred to the IEPF Account, during FY 2017-18. 30. VIGIL MECHANISM The Company has established a Vigil Mechanism for its Directors and employees to report their concerns or grievances. The said mechanism, inter alia, encompasses the Whistle Blower Policy, the Fraud Risk Management Process, the Ethics mechanism under the TCOC, and the Anti-Bribery and Anti-Corruption (“ABAC”) Policy, and it provides for adequate safeguards against victimization of persons who use it.

49 Annual Report 2017-18

The Vigil Mechanism provides for access to Tata Capital’s Ethics Committee for reporting concerns DQG JULHYDQFHV ,W DOVR SURYLGHV DFFHVV WR WKH &RPSOLDQFH 2I¿FHU XQGHU WKH $%$& 3ROLF\ DQG to the Chairperson of the Company’s Audit Committee/the Chief Ethics Counselor under the Company’s Whistle Blower Policy. Information regarding the mechanism and the channels for reporting concerns (including a third-party reporting channel) are communicated to the relevant stakeholders. The Vigil Mechanism, the Whistle Blower Policy, the TCOC and the ABAC Policy are available on the website of the Company, www.tatacapital.com. 31. DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 The Company is committed to providing and promoting a safe and healthy work environment for all its employees. A ‘Prevention of Sexual Harassment’ Policy, which is in line with the statutory requirements, along with a structured reporting and redressal mechanism, is in place. During FY 2017-18, there were no complaints received under the provisions of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. 32. STATUTORY AUDITORS At the Twenty Sixth AGM of the Company held on August 29, 2017, B S R & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 101248W/W-100022) (“BSR”), were appointed as the 6WDWXWRU\$XGLWRUVRIWKH&RPSDQ\IRUDWHUPRI¿YH\HDUVWRKROGRI¿FHIURPWKHFRQFOXVLRQRIWKH Twenty Sixth AGM till the conclusion of the Thirty First AGM of the Company to be held in 2022. 33. ACCOUNTING STANDARDS FOLLOWED BY THE COMPANY The Financial Statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards VSHFL¿HGXQGHU6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV 5XOHV and the relevant provisions of the Act and the Guidelines prescribed by the RBI, as applicable. The Financial Statements have been prepared on an accrual basis under the historical cost convention. The Accounting Policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year. 34. EXPLANATION ON STATUTORY AUDITORS’ REPORT  7KHUH DUH QR TXDOL¿FDWLRQV UHVHUYDWLRQV RU DGYHUVH UHPDUNV RU GLVFODLPHUV PDGH E\ B S R & Co. LLP, Statutory Auditors, in their Reports dated May 7, 2018 on the Financial Statements of the Company for FY 2017-18. 35. SECRETARIAL AUDITOR AND SECRETARIAL AUDIT REPORT Pursuant to the provisions of Section 204 of the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors had appointed 0V 3DULNK $VVRFLDWHV D ¿UP RI &RPSDQ\ 6HFUHWDULHV LQ 3UDFWLFH WR XQGHUWDNH WKH 6HFUHWDULDO Audit of the Company, for FY 2017-18. The Secretarial Audit Report, in the prescribed Form No. MR-3, is annexed as Annexure ‘D’.  7KHUH DUH QR TXDOL¿FDWLRQV UHVHUYDWLRQV RU DGYHUVH UHPDUNV RU GLVFODLPHUV PDGH E\ M/s. Parikh & Associates in their Secretarial Audit Report dated May 7, 2018, on the secretarial and other related records of the Company, for FY 2017-18. 36. INFORMATION ON MATERIAL CHANGES AND COMMITMENTS  7KHUH DUH QR PDWHULDO FKDQJHV RU FRPPLWPHQWV DIIHFWLQJ WKH ¿QDQFLDO SRVLWLRQ RI WKH &RPSDQ\ which have occurred between March 31, 2018 and May 7, 2018, being the date of this Report.

37. RELATED PARTY TRANSACTIONS The Company has adopted a Framework on Related Party Transactions for the purpose of LGHQWL¿FDWLRQPRQLWRULQJDQGDSSURYLQJRIVXFKWUDQVDFWLRQV A Statement containing details of material contracts or arrangements or transactions with Related Parties on an arm’s length basis with respect to transactions covered under Section 188(1) of the

50 Act, in the prescribed Form No. AOC-2, is attached as Annexure ‘E’. Further, details of Related Party Transactions, as required to be disclosed by Accounting Standard – 18 on “Related Party 'LVFORVXUHV´VSHFL¿HGXQGHU6HFWLRQRIWKH$FWUHDGZLWK5XOHRIWKH&RPSDQLHV $FFRXQWV  Rules, 2014, are given in the Notes to the Financial Statements. During the year, the Company has not entered into any transactions with Related Parties which are not in its ordinary course of business or not on an arm’s length basis and which require disclosure in this Report in terms of the provisions of Section 188(1) of the Act. 38. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO  $  &RQVHUYDWLRQRIHQHUJ\ i. Steps taken / impact on conservation of energy:    7KH RSHUDWLRQV RI WKH &RPSDQ\ EHLQJ ¿QDQFLDO VHUYLFHV UHODWHG UHTXLUH QRUPDO consumption of electricity. The Company is taking every necessary step to reduce its consumption of energy. ii. Steps taken by the Company for utilising alternate sources of energy: 7DWD &DSLWDO KDV LQVWDOOHG D VRODU SDQHO DW LWV 7KDQH RI¿FH ZKLFK SURGXFHV FORVH WR 750 Watts of energy and which self illuminates and provides power to the garden and VHFXULW\ OLJKWV RQ WKH FDPSXV IURP GXVN WR GDZQ7KH JDUGHQ OLJKWV DW WKH7KDQH RI¿FH KDYH EHHQ UHWUR¿WWHG ZLWK /(' EXOEV WKDW FRQVXPH OHVV HOHFWULFLW\ DV FRPSDUHG WR WKH conventional incandescent or CFL bulbs. iii. Capital investment on energy conservation equipment: In view of the nature of the activities carried on by the Company, there is no capital investment on energy conservation equipment.

(B) Technology absorption: i. The efforts made towards technology absorption;   LL 7KH EHQH¿WV GHULYHG OLNH SURGXFW LPSURYHPHQW FRVW UHGXFWLRQ SURGXFW GHYHORSPHQW RU import substitution; iii. In case of imported technology (imported during the last 3 years reckoned from the EHJLQQLQJRIWKH¿QDQFLDO\HDU  (a) The details of technology imported; (b) The year of import; (c) Whether the technology has been fully absorbed; (d) If not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and iv. The expenditure incurred on Research and Development. Given the nature of the activities of the Company, the above is not applicable to the Company.

(C) Foreign Exchange Earnings and Outgo:   )RUHLJQ ([FKDQJH HDUQHG LQ WHUPV RI DFWXDO LQÀRZV GXULQJ WKH \HDU XQGHU UHYLHZ ZDV ` 36 crore and the Foreign Exchange Outgo during the year under review in terms of actual RXWÀRZVZDV` 1 crore. 39. EXTRACT OF ANNUAL RETURN An extract of the Annual Return as prescribed under Section 92(3) of the Act and the Companies (Management and Administration) Rules, 2014, in the prescribed Form No. MGT-9, is available on the website of the Company, www.tatacapital.com.

51 Annual Report 2017-18

40. TATA CAPITAL LIMITED EMPLOYEE STOCK PURCHASE / OPTION SCHEME In order to develop and implement a long term incentive programme to effectively attract, motivate and retain the best talent from the industry in a competitive environment, the Company has implemented the Tata Capital Limited Employee Stock Purchase / Option Scheme (“Scheme”), which has been amended from time to time. Pursuant to the provisions of Section 62 of the Act and the appropriate Rules framed thereunder, the Scheme was amended in 2016 to bring it in line with the applicable provisions of the Act. The Scheme has also been adopted by the subsidiaries of the Company, viz. TCFSL, TCHFL, TCCL and Tata Securities. For implementation of the Scheme, the TCL Employee Welfare Trust (“Trust”) was set up and 7,02,34,526 Equity Shares of the Company aggregating 2.49% of its total paid up Equity Share Capital were allotted to the Trust. The Trust entrusted the ESOP Committee of the Board (which has now been combined with the NRC of the Board), with powers to effectively administer the Scheme. The NRC, inter alia, determines the employees to whom an offer is to be made, based on certain performance criteria, the price at which the options can be exercised, the quantum of offer to be made and the terms and conditions for vesting and exercise of the offer. For the purpose of the Scheme, the valuation of the Equity Shares of the Company is conducted by a Registered Valuer on a half-yearly basis. As at March 31, 2018, out of 7,02,34,526 Equity Shares of the Company allotted to the Trust, 1,67,56,520 Equity Shares of the Company aggregating 0.59% of its total paid up Equity Share Capital were held by the Employees under the Schemes. The following disclosures are being made as required under Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014:

Sr. Particulars ESOP 2011 ESOP 2013 ESOP 2016 ESOP 2017* No. (upto March 31, 2018) 1 Options Granted 34,73,331 29,93,747 1,19,45,000 1,51,60,000 2 Options Vested 34,73,331 29,93,747 1,19,45,000 1,51,60,000 3 Options Exercised 26,72,387 6,59,627 37,73,847 Nil 4 Total number of shares arising 26,72,387 6,59,627 37,73,847 Nil out of exercise of Options 5 Options Lapsed 8,00,944 14,41,109 81,71,153 41,00,000 6 Exercise Price ` 17.77 ` 25 ` 30 ` 33.40 7 Money realized by exercise of ` 4,74,88,311 ` 1,64,90,675 ` 11,32,15,410 Nil Options 8 Variation of terms of Options –––– 9 Total number of Options in – 8,93,011 – 1,10,60,000 force * Options granted under ESOP 2017 have vested after a period of 1 year from the Date of Grant (i.e. March 31, 2017) and can be exercised anytime upto one year from the Date of Vesting (i.e. April 2, 2018). Employee-wise details of options granted to: i. Key Managerial Personnel: Sr. 1DPHRI.H\ ESOP 2011 ESOP 2013 ESOP 2016 ESOP 2017 No. Managerial Personnel (upto March 31, 2018) 2IIHUHG Exercised 2IIHUHG Exercised 2IIHUHG Exercised 2IIHUHG Exercised

1 Mr. Praveen P. Kadle 2,40,000 2,40,000 NIL NIL 10,000 10,000 10,000 - 2 Mr. Puneet Sharma 80,000 80,000 NIL NIL 10,000 10,000 10,000 - 3 Ms. Avan Doomasia 60,000 60,000 NIL NIL 10,000 10,000 10,000 -

52 ii. Any other employee who receives a grant of Options in any one year of Options amounting to ¿YHSHUFHQWRUPRUHRI2SWLRQVJUDQWHGGXULQJWKDW\HDU1RQH  LLL ,GHQWL¿HG HPSOR\HHV ZKR ZHUH JUDQWHG 2SWLRQV GXULQJ DQ\ RQH \HDU HTXDO WR RU H[FHHGLQJ one percent of the issued capital (excluding outstanding warrants and Conversions) of the Company at the time of grant: None.

41. GREEN INITIATIVE Section 136 of the Act and the Rules framed thereunder allows the Company to send its Financial Statements by electronic mode to such Members whose shareholding is in dematerialized format and whose email addresses are registered with the Depositories for communication purposes. As a responsible corporate citizen, the Company proposes to effect electronic delivery of the Annual Report of the Company in lieu of the paper form to the Members who have registered their email addresses with the Depositories. A physical copy of the Annual Report will be sent to those Members who have not registered their email addresses with the Depositories for receiving electronic communication. A physical copy of this Annual Report can also be obtained free of cost E\ DQ\ 0HPEHU IURP WKH 5HJLVWHUHG 2I¿FH RI WKH &RPSDQ\ RQ DQ\ ZRUNLQJ GD\ GXULQJ EXVLQHVV hours or by sending a request, in writing, for the same to the Company Secretary. A copy of this Annual Report along with the Annual Report for FY 2017-18 of each of the Company’s subsidiaries is also available on the website of the Company, www.tatacapital.com.

42. ACKNOWLEDGEMENTS The Directors would like to place on record their gratitude for the valuable guidance and support received from the Reserve Bank of India, the Securities and Exchange Board of India, the Registrar of Companies, the National Housing Bank, Monetary Authority of Singapore, Financial Conduct Authority, UK, and other government and regulatory agencies and to convey their appreciation to Tata Sons Limited (the holding company), the Members, customers, bankers, lenders, vendors and all other business associates for the continuous support given by them to Tata Capital. The Directors also place on record their appreciation for all the employees of Tata Capital for their commitment, commendable efforts, team work and professionalism.

For and on behalf of the Board of Directors

Mumbai Saurabh Agrawal May 7, 2018 Chairman DIN: 02144558

53 Annual Report 2017-18

Annexure A ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (“CSR”) ACTIVITIES

 %ULHI RXWOLQH RI WKH &RPSDQ\¶V &65 SROLF\ LQFOXGLQJ RYHUYLHZ RI SURMHFWV RU SURJUDPV SURSRVHGWREHXQGHUWDNHQDQGUHIHUHQFH WRWKHZHEOLQNWRWKH&65SROLF\DQGSURMHFWVRU programs: Vision: To ensure sustainability by doing what is right, through the adoption of sustainable business practices, employee policies and technologies. Purpose: To protect the interests of all the stakeholders of the Company and contribute to society at large, by making a measurable and positive difference through the four causes the Company supports viz. Livelihood & Employability, Health, Education and Environment. Sectors and Issues: In sectors and issues pertaining to the purpose mentioned above. For details of the CSR Policy along with projects and programs, kindly refer to http://www.tatacapital.com.

 7KHFRPSRVLWLRQRIWKH&65&RPPLWWHH The Board of Directors have constituted a CSR Committee in accordance with the requirements of Section 135(1) of the Companies Act, 2013 (“Act”). The composition of the Committee as at March 31, 2018 was, as under: a) Mr. F. N. Subedar, Non-Executive Director (Chairman) b) Mr. Mehernosh B. Kapadia, Independent Director c) Ms. Aarthi Subramanian, Non-Executive Director d) Mr. Praveen P. Kadle, Managing Director & CEO It may be noted that Mr. Praveen P. Kadle ceased to be a Member of the CSR Committee, with effect from end of day on March 31, 2018, consequent upon his retirement as the Managing Director & CEO of the Company. Accordingly, Mr. Rajiv Sabharwal, Managing Director & CEO of the Company was inducted as a Member in place of Mr. Kadle, with effect from April 1, 2018.

 $YHUDJH 1HW 3UR¿W RI WKH &RPSDQ\ DV SHU 6HFWLRQ  RI WKH $FW IRU ODVW WKUHH )LQDQFLDO Years: (` in crore) Financial Year 1HW3UR¿W QHWRIGLYLGHQG FY 2014-15 9.92 FY 2015-16 7.90 FY 2016-17 (35.80) $YHUDJH1HW3UR¿W (5.99)

1RWH7KHDERYHQHWSUR¿W QHWRIGLYLGHQG KDVEHHQFDOFXODWHGLQDFFRUGDQFHZLWKWKHSURYLVLRQV of Section 198 of the Act read with Companies (Corporate Social Responsibility Policy) Rules, 2014.

 3UHVFULEHG&65H[SHQGLWXUH RI$YHUDJH1HW3UR¿WDVLQGLFDWHGLQ3RLQW1R   6LQFHWKHDYHUDJHQHWSUR¿WVRIWKH&RPSDQ\IRUWKHSDVWWKUHH\HDUVZHUHQHJDWLYHWKH&RPSDQ\ was not required to spend any amount on the CSR activities in FY 2017-18.

54  'HWDLOVRI&65VSHQGGXULQJ)< a. Total amount to be spent : Not Applicable b. Amount unspent, if any : Not Applicable c. Manner in which the amount was spent during FY 2017-18 is detailed below:

3URMHFWVRU Programs Amount 1) Local area or Amount spent on the Cumulative Amount Spent Sector in outlay &653URMHFWV other, SURMHFWVRUSURJUDPV expenditure Sr. which the (Budget) Sub heads: or Activity  6SHFLI\WKH upto the No SURMHFWLV SURMHFWRU ,GHQWL¿HG State and District reporting covered Program Direct ZKHUHWKHSURMHFWV Expenditure period Implementing wise Overheads Direct or programs was RQSURMHFWV Agency undertaken or programs Not Applicable

 ,QFDVHWKH&RPSDQ\KDVIDLOHGWRVSHQGWKHRIWKH$YHUDJH1HW3UR¿WRIWKHODVWWKUHH ¿QDQFLDO\HDUVRUDQ\SDUWWKHUHRIUHDVRQVIRUQRWVSHQGLQJWKHDPRXQW Not Applicable

 $UHVSRQVLELOLW\VWDWHPHQWRIWKH&65&RPPLWWHHWKDWWKHLPSOHPHQWDWLRQDQGPRQLWRULQJRI &65SROLF\LVLQFRPSOLDQFHZLWK&65REMHFWLYHVDQGSROLF\RIWKH&RPSDQ\  :H KHUHE\ FRQ¿UP WKDW WKH LPSOHPHQWDWLRQ DQG PRQLWRULQJ RI WKH &65 3ROLF\ KDV EHHQ LQ compliance with the CSR objectives and CSR Policy adopted by the Company.

F.N. Subedar Mehernosh B. Kapadia Chairman, CSR Committee Member, CSR Committee Non-Executive Director Independent Director DIN: 00028428 DIN: 00046612

Aarthi Subramanian 5DMLY6DEKDUZDO Member, CSR Committee Member, CSR Committee Non-Executive Director Managing Director & CEO DIN: 07121802 DIN: 00057333

55 Annual Report 2017-18

Annexure B BOARD DIVERSITY POLICY AND DIRECTOR ATTRIBUTES

1. PURPOSE In terms of Section 178 of the Companies Act, 2013 (“Act”) and the Governance Guidelines on Board Effectiveness issued by Tata Sons Limited and adopted by the Board of Directors, the Nomination and Remuneration Committee (“NRC”) of the Board is, inter alia, required to formulate a 3ROLF\RQ%RDUG'LYHUVLW\DQGOD\GRZQWKHFULWHULDIRUGHWHUPLQLQJTXDOL¿FDWLRQVSRVLWLYHDWWULEXWHV and independence of a director. Diversity in the composition of the Board of Directors has become essential in view of the expansion of business, greater social responsibility, increasing emphasis on Corporate Governance, need for addressing concerns of diverse stakeholders and the necessity for managing risks in the EXVLQHVV HIIHFWLYHO\$ %RDUG FRPSRVHG RI DSSURSULDWHO\ TXDOL¿HG DQG VNLOOHG SHRSOH ZLWK D EURDG range of experience relevant to the business, is important for effective corporate governance and sustained commercial success of a company. In view of the above, Tata Capital Limited (“TCL” or “Company”) has framed this Policy on Board Diversity and Director Attributes (“Policy”) that encourages diversity of thought, experience, knowledge, perspective, age and gender in the Board. The Policy sets out the approach to diversity in the Board of Directors of the Company so as to ensure that the Board has an appropriate blend of functional and industry expertise. This Policy has been adopted by the Board of Directors of the Company, based on the recommendations of the NRC.

2. OBJECTIVES OF THE POLICY The Objectives of the Policy include: i. Board to drive diversity and have an appropriate blend of functional and industry expertise; ii. While recommending the appointment of a director to, inter alia, consider the manner in which the function and domain expertise of the individual contributes to the overall skill domain mix of the Board; iii. To help the Company build a better Board that can draw upon a wide range of perspectives,expertise, knowledge and experience; iv. To achieve an optimum and balanced Board, with a wide range of attributes; v. To encourage healthy and open discussion and promote independence of judgement in Board and Committee deliberations; and vi. To have an optimum mix of Executive, Non-Executive and Independent Directors, including Women Directors.

3. POLICY STATEMENT To meet the above Objectives: i. The Board of TCL will ensure that a transparent Board nomination process is in place that encourages diversity of thought, experience, skills, knowledge, perspective, age, nationality, gender, cultural and educational background; ii. It will be ensured that the Board has an appropriate blend of functional and industry expertise and skills; iii. The consideration and selection of candidates for appointment to the Board will be based on merit which shall include a review of any candidate’s integrity, experience, educational background, industry or related experience and more general experience;

56 iv. Candidates that bring a diversity of background and opinion from amongst those candidates with the appropriate background and industry or related expertise and experience and having WKH DELOLW\ WR GHYRWH VXI¿FLHQW WLPH WR WKH DIIDLUV RI WKH &RPSDQ\ VKRXOG EH FRQVLGHUHG IRU appointment to the Board; and v. While recommending the appointment of a Director, the NRC will consider the criteria as laid down under the Act and applicable Regulations/Guidelines issued by Statutory and Regulatory authorities, as also those issued by Tata Sons Limited, from time to time, and the manner in which the function and domain expertise of the individual will contribute to the overall skill - domain mix of the Board.

4. MEASURABLE OBJECTIVES The NRC will largely rely on the regulatory provisions of the Act, the Regulations/Guidelines issued by the RBI (as applicable to a Core Investment Company) as also the Guidelines circulated by Tata Sons Limited and review the measurable objectives for achieving diversity against these provisions and recommend the same to the Board for adoption. At any given point of time, the Board may seek to improve one or more aspects of its diversity and measure progress accordingly.

5. MONITORING AND REPORTING The NRC will review the Policy periodically, which will include an assessment of the effectiveness of the Policy. The NRC will discuss any revision that may be required and recommend the same to the Board for approval.

57 Annual Report 2017-18

Annexure C REMUNERATION POLICY

1. COMPENSATION PHILOSOPHY  7DWD &DSLWDO /LPLWHG ³&RPSDQ\´  KDV D GH¿QHG IRUPDO FRPSHQVDWLRQ SKLORVRSK\ IRU LWVHOI DQG LWV subsidiary companies. In order to build a high performance culture, aligned to the Company’s Vision DQG *RDOV WKH &RPSHQVDWLRQ 3KLORVRSK\ DLPV DW SURYLGLQJ D VLJQL¿FDQW GLIIHUHQWLDO WR VXSHULRU performers and also segregating increments and performance payouts, based on the actual performance of various business verticals.  7KHDIRUHPHQWLRQHG&RPSHQVDWLRQ3KLORVRSK\KHOSVWKH&RPSDQ\WRPDQDJHORQJWHUP¿[HGFRVW keep up with market compensation and attract the right talent to help drive its growth plans. The performance of the Company and its Business Units / Functions is measured against annual budgets / targets, set as per the Balanced Score Card (BSC). Performance of individuals is measured against Key Result Areas (KRAs) set at the beginning of year and after considering any revision of target during the year. The Annual Performance Rating would be considered for calculating the Performance Pay. Rating would be on a 5 point scale.  &RQVLVWHQW ZLWK WKH SULQFLSOH RI GLIIHUHQWLDO LQÀXHQFH WKDW DQ HPSOR\HH PD\ KDYH RQ WKH RYHUDOO performance of the Company, different weights are assigned for the Company’s performance, the performance of Business Units / Functions and the performance of individuals. Thus, employees in entry level / junior management have greater weightage for individual performance while employees in senior leadership roles have maximum weightage for Company and Business Unit Performance.

2. REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES The philosophy for remuneration of Directors, Senior Leadership Team, Key Managerial Personnel (“KMP”) and all other employees of the Company is based on the commitment to fostering a culture of leadership with trust. The Remuneration Policy is aligned to this philosophy. This Remuneration Policy has been prepared pursuant to the provisions of Section 178(3) of the Companies Act, 2013 (“Act”). In case of any inconsistency between the provisions of law and this Remuneration Policy, the provisions of law shall prevail and the Company shall abide by the applicable law. In case there are any changes in the law, the Company shall comply with the applicable amended provisions. While formulating this Remuneration Policy, the Nomination and Remuneration Committee (“NRC”) has considered the factors laid down under Section 178(4) of the Act which are, as under:  ³ D  WKH OHYHO DQG FRPSRVLWLRQ RI UHPXQHUDWLRQ LV UHDVRQDEOH DQG VXI¿FLHQW WR DWWUDFW UHWDLQ DQG motivate directors of the quality required to run the company successfully; (b) relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and (c) remuneration to directors, key managerial personnel and senior management involves a EDODQFHEHWZHHQ¿[HGDQGLQFHQWLYHSD\UHÀHFWLQJVKRUWDQGORQJWHUPSHUIRUPDQFHREMHFWLYHV appropriate to the working of the company and its goals.” The key principles governing this Remuneration Policy are, as follows:

  5HPXQHUDWLRQIRU,QGHSHQGHQW'LUHFWRUVDQG1RQ,QGHSHQGHQW1RQ([HFXWLYH'LUHFWRUV (i) Independent Directors (“ID”) and Non-Independent Non-Executive Directors (“NED”) may be paid Sitting Fees (for attending the meetings of the Board and of Committees of the Board of which they may be Members) and Commission within regulatory limits. (ii) Within the parameters prescribed by law, the payment of Sitting Fees and Commission will be recommended by the NRC for approval of the Board.

58   LLL  2YHUDOOUHPXQHUDWLRQ 6LWWLQJ)HHVDQG&RPPLVVLRQ VKRXOGEHUHDVRQDEOHDQGVXI¿FLHQW to attract, retain and motivate directors aligned to the requirements of the Company (taking into consideration, the challenges faced by the Company and its future growth imperatives).   LY  2YHUDOO UHPXQHUDWLRQ VKRXOG EH UHÀHFWLYH RI WKH VL]H RI WKH &RPSDQ\ FRPSOH[LW\ RI the sector / industry / Company’s operations and the Company’s capacity to pay the remuneration. (v) Overall remuneration practices should be consistent with recognized best practices. (vi) Quantum of Sitting Fees may be subject to review on a periodic basis, as required. (vii) The aggregate Commission payable to all the NEDs and IDs will be recommended by WKH 15& WR WKH %RDUG EDVHG RQ &RPSDQ\ SHUIRUPDQFH SUR¿WV UHWXUQ WR LQYHVWRUV VKDUHKROGHU YDOXH FUHDWLRQ DQG DQ\ RWKHU VLJQL¿FDQW TXDOLWDWLYH SDUDPHWHUV DV PD\ EH decided by the Board. (viii) The NRC will recommend to the Board, the quantum of Commission for each director based upon the outcome of the evaluation process which is driven by various factors including attendance and time spent at Board and Committee meetings, individual contribution at the meetings and contributions made by directors, other than at Board and Committee meetings. (ix) In addition to the Sitting Fees and Commission, the Company may pay to any director such fair and reasonable expenditure, as may have been incurred by the director while performing his / her role as a Director of the Company. This could include reasonable expenditure incurred by the director for attending Board / Board Committee meetings, General Meetings, court convened meetings, meetings with Shareholders / Creditors / Management, site visits, induction and training (arranged by the Company for directors) and in obtaining professional advice from independent advisors in the furtherance of his / her duties as a director.

  5HPXQHUDWLRQIRU0DQDJLQJ'LUHFWRU ³0'´ ([HFXWLYH'LUHFWRUV ³('´ .03UHVWRIWKH employees(Note 1) (i) The extent of overall remuneration to the MD/ED/KMPs/ rest of the employees should be VXI¿FLHQWWRDWWUDFWDQGUHWDLQWDOHQWHGDQGTXDOL¿HGLQGLYLGXDOVVXLWDEOHIRUWKHLUUROHV Hence, remuneration should be: ¾ PDUNHWFRPSHWLWLYH µPDUNHW¶IRUHYHU\UROHLVGH¿QHGDVFRPSDQLHVIURPZKLFKWKH company attracts talent or companies to which the company loses talent); ¾ driven by the role played by the individual; ¾ UHÀHFWLYH RI WKH VL]H RI WKH FRPSDQ\ FRPSOH[LW\ RI WKH VHFWRU  LQGXVWU\  Company’s operations and the Company’s capacity to pay; ¾ consistent with recognized best practices; and ¾ aligned to any regulatory requirements. (ii) In terms of remuneration mix or composition, ¾ the remuneration mix for the MD / EDs should be as per the contract approved by the Shareholders. In case of any change which is beyond the remuneration approved by the Shareholders, the same would require the approval of the Shareholders. ¾ EDVLF  ¿[HG VDODU\ LV SURYLGHG WR DOO HPSOR\HHV WR HQVXUH WKDW WKHUH LV D VWHDG\ income in line with their skills and experience.

59 Annual Report 2017-18

¾ LQDGGLWLRQWRWKHEDVLF¿[HGVDODU\WKH&RPSDQ\SURYLGHVHPSOR\HHVZLWKFHUWDLQ SHUTXLVLWHV DOORZDQFHV DQG EHQH¿WV WR HQDEOH D FHUWDLQ OHYHO RI OLIHVW\OH DQG WR offer scope for savings and tax optimization, where possible. The Company also provides all employees with a social security net (subject to limits) by covering medical expenses and hospitalization through re-imbursements or insurance cover and accidental death and dismemberment through personal accident insurance. ¾ WKH&RPSDQ\SURYLGHVUHWLUHPHQWEHQH¿WVDVDSSOLFDEOH ¾ LQ DGGLWLRQ WR WKH EDVLF¿[HG VDODU\ EHQH¿WV SHUTXLVLWHV DQG DOORZDQFHV DV provided above, the Company may provide MD/EDs such remuneration by way RI &RPPLVVLRQ FDOFXODWHG ZLWK UHIHUHQFH WR WKH 1HW 3UR¿WV RI WKH &RPSDQ\ LQ D SDUWLFXODU¿QDQFLDO\HDUDVPD\EHGHWHUPLQHGE\WKH%RDUGVXEMHFWWRWKHRYHUDOO FHLOLQJV VWLSXODWHG LQ 6HFWLRQ  RI WKH $FW 7KH VSHFL¿F DPRXQW SD\DEOH WR WKH MD/EDs would be based on the performance of the MD/EDs as evaluated by the Board or the NRC and approved by the Board. OR ¾ ,Q DGGLWLRQ WR WKH EDVLF¿[HG VDODU\ EHQH¿WV SHUTXLVLWHV DQG DOORZDQFHV DV provided above, the Company may provide to its MD/EDs, such remuneration by way of an annual incentive remuneration/performance linked bonus subject to the achievement of certain performance criteria and such other parameters as may be considered appropriate from time to time by the Board. An indicative list of factors that may be considered for determination of the extent of this component are: ±&RPSDQ\¶V SHUIRUPDQFH RQ FHUWDLQ GH¿QHG TXDOLWDWLYH DQG TXDQWLWDWLYH parameters, as may be decided by the Board from time to time; – Industry benchmarks of remuneration; – Performance of the individual. ¾ The Company will provide the rest of the employees, a performance linked incentive pay. The performance linked pay would be driven by the outcome of the performance appraisal process and the performance of the Company.

  5HPXQHUDWLRQSD\DEOHWR'LUHFWRUIRUVHUYLFHVUHQGHUHGLQRWKHUFDSDFLW\ No remuneration will be payable to the Directors for services rendered by such Director in any other capacity unless: a) The services rendered are of a professional nature;   E  7KH 15& LV RI WKH RSLQLRQ WKDW WKH GLUHFWRU SRVVHVVHV UHTXLVLWH TXDOL¿FDWLRQ IRU WKH practice of the profession; and c) Approval of the Central Government has been received, if required, for paying the same.

2.4 Policy implementation The NRC is responsible for recommending the Remuneration Policy to the Board. The Board is responsible for approving and overseeing implementation of the Remuneration Policy.

Note 1 ([FOXGHVHPSOR\HHVFRYHUHGE\DQ\ORQJWHUPVHWWOHPHQWVRUVSHFL¿FWHUPFRQWUDFWV7KHUHPXQHUDWLRQIRUWKHVHHPSOR\HHV would be driven by the respective long term settlements or contracts.

60 Annexure D FORM No. MR-3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2018 (Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014) To, The Members, Tata Capital Limited

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Tata Capital Limited (hereinafter called the “Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon. %DVHG RQ RXU YHUL¿FDWLRQ RI WKH &RPSDQ\¶V ERRNV SDSHUV PLQXWH ERRNV IRUPV DQG UHWXUQV ¿OHG DQG RWKHUUHFRUGVPDLQWDLQHGE\WKH&RPSDQ\WKHLQIRUPDWLRQSURYLGHGE\WKH&RPSDQ\LWVRI¿FHUVDJHQWV DQGDXWKRULVHGUHSUHVHQWDWLYHVGXULQJWKHFRQGXFWRI6HFUHWDULDO$XGLWWKHH[SODQDWLRQVDQGFODUL¿FDWLRQV given to us and the representations made by the Management, we hereby report that in our opinion, the &RPSDQ\ KDV GXULQJ WKH DXGLW SHULRG FRYHULQJ WKH ¿QDQFLDO \HDU HQGHG RQ 0DUFK   JHQHUDOO\ complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: :H KDYH H[DPLQHG WKH ERRNV SDSHUV PLQXWH ERRNV IRUPV DQG UHWXUQV ¿OHG DQG RWKHU UHFRUGV PDGH DYDLODEOH WR XV DQG PDLQWDLQHG E\ WKH &RPSDQ\ IRU WKH ¿QDQFLDO \HDU HQGHG RQ 0DUFK   according to the provisions of: (i) The Companies Act, 2013 (the “Act”) and the rules made thereunder; (ii) The Securities Contract (Regulation) Act, 1956 (“SCRA”) and the rules made thereunder; (iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; (iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; (v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (“SEBI Act”): (a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; (b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; (c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and amendments from time to time (Not applicable to the Company during the audit period);  G  7KH 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 6KDUH %DVHG (PSOR\HH %HQH¿WV  5HJXODWLRQV 2014 (Not applicable to the Company during the audit period); (e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not applicable to the Company during the audit period); (f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act, 2013 and dealing with client (Not

61 Annual Report 2017-18

applicable to the Company during the audit period); (g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not applicable to the Company during the audit period); and (h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (Not applicable to the Company during the audit period). YL  2WKHUODZVDSSOLFDEOHVSHFL¿FDOO\WRWKH&RPSDQ\DUH (a) All the Rules, Regulations, Directions, Guidelines and Circulars including Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016 (“Directions”) issued by the Reserve Bank of India, as amended from time to time. (b) The Securities and Exchange Board of India Act, 1992 and The Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996, as amended from time to time. (c) The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 as amended from time to time. We have also examined compliance with the applicable clauses of the following: Secretarial Standards issued by the Institute of Company Secretaries of India with respect to Board and General Meetings. During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above. We further report that: The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice was given to all Directors to schedule the Board Meetings, Agenda and detailed notes on Agenda were sent at least seven days in advance for Meetings other than those held at VKRUWHU QRWLFH DQG D V\VWHP H[LVWV IRU VHHNLQJ DQG REWDLQLQJ IXUWKHU LQIRUPDWLRQ DQG FODUL¿FDWLRQV on the agenda items before the Meeting and for meaningful participation at the Meeting. Majority decision is carried through, while the dissenting Members’ views, if any, are captured and recorded as part of the Minutes of the Meetings. We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We further report that during the audit period the Company had following events which had bearing on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc. (i) The Company had issued and allotted 51,47,500 Cumulative Redeemable Preference Shares of ` 1,000 each aggregating ` 514.75 crore, on a private placement basis. (ii) The Company had redeemed 48,43,510 Cumulative Redeemable Preference Shares of ` 1,000 each aggregating ` 484.35 crore, on a private placement basis. (iii) The Company had issued and allotted 5,500 Unsecured Non Convertible Debentures for an aggregate amount of ` 550 crore. (iv) The Company has an Employee Stock Purchase / Option Scheme (“ESOP Scheme”) which is implemented through the TCL Employee Welfare Trust (“Trust”) to whom the Company had

62 allotted Equity Shares in the past. During the year, the Trust has transferred 28,42,572 Equity Shares to the employees of the Company and its subsidiary companies and has bought back 3,98,056 Equity Shares in terms of the ESOP Scheme. (v) The entire shareholding held by the Company in the subsidiary companies viz. Tata Capital Forex Limited and TC Travel And Services Limited has been divested during the year and they have ceased to be the subsidiaries of the Company with effect from October 30, 2017.

For Parikh & Associates Company Secretaries

Jigyasa N. Ved Mumbai (Partner) May 7, 2018 FCS No: 6488 CP No: 6018

This Report is to be read with our letter of even date which is annexed as Annexure I and forms an integral part of this Report

63 Annual Report 2017-18

Annexure I

To, The Members Tata Capital Limited

Our Report of even date is to be read along with this letter. 1. Maintenance of Secretarial record is the responsibility of the Management of the Company. Our responsibility is to express an opinion on these Secretarial records based on our audit. 2. We have followed the audit practices and process as were appropriate to obtain reasonable DVVXUDQFH DERXW WKH FRUUHFWQHVV RI WKH FRQWHQWV RI WKH 6HFUHWDULDO UHFRUGV 7KH YHUL¿FDWLRQ ZDV GRQHRQWHVWEDVLVWRHQVXUHWKDWFRUUHFWIDFWVDUHUHÀHFWHGLQ6HFUHWDULDOUHFRUGV:HEHOLHYHWKDW the process and practices we followed, provide a reasonable basis for our opinion.  :H KDYH QRW YHUL¿HG WKH FRUUHFWQHVV DQG DSSURSULDWHQHVV RI ¿QDQFLDO UHFRUGV DQG %RRNV RI Accounts of the Company. 4. Wherever required, we have obtained the Management Representation about the compliance of laws, rules and regulations and happening of events, etc. 5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, VWDQGDUGV LV WKH UHVSRQVLELOLW\ RI 0DQDJHPHQW 2XU H[DPLQDWLRQ ZDV OLPLWHG WR WKH YHUL¿FDWLRQ RI procedure on test basis. 6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of WKHHI¿FDF\RUHIIHFWLYHQHVVZLWKZKLFKWKH0DQDJHPHQWKDVFRQGXFWHGWKHDIIDLUVRIWKH&RPSDQ\

For Parikh & Associates Company Secretaries

Jigyasa N. Ved Mumbai (Partner) May 7, 2018 FCS No: 6488 CP No: 6018

64 Annexure E Form No. AOC- 2 (Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014) Form for disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto 1. Details of contracts or arrangements or transactions not at arm’s length basis - Not Applicable 2. Details of material contracts or arrangement or transactions at arm’s length basis:

1DPHRI 'XUDWLRQRI 6DOLHQWWHUPVRIWKH Amount 1DWXUHRIFRQWUDFWV Sr. the 1DWXUHRI Amount the contracts / contracts or arrangements paid as arrangements/ No. Related Relationship (` in lakh) arrangements/ or transactions including the advances, transactions Party transactions YDOXHLIDQ\ LIDQ\

1 Tata Capital Subsidiary a) Investment in 57,500 9 years Compulsorily Convertible – Financial Compulsorily into Equity Shares after Services Convertible completion of 9 years from the Limited Cumulative date of allotment or voluntary (“TCFSL”) Preference Shares conversion at the option of (“CCCPS”) the CCCPS holder. Rate of dividend being 8.50% p.a., on a cumulative basis.

b) Investment in 12,500 Perpetual Yield @ 8.90 % p.a. – Unsecured Perpetual Non-Convertible Debentures

c) Inter Corporate 4,63,617 Tenor upto 1 Cost of Funds for previous – Deposits (“ICD”) year month plus 25 bps. placed during the year

d) ICDs repaid during 4,74,662 Tenor upto 1 Not Applicable – the year year

e) Security Deposit 5,847 Period of As per the Agreement entered – Outstanding – lease upto into between the Company and Payable September 30, TCFSL. 2022

f) Security Deposit 4,665 Period of Due to expiry of rental – Refunded lease upto agreement on September 30, September 30, 2017. 2017

g) Dividend received 13,267 Not Applicable Interim Dividend for FY 2017-18, – during the year - at the rate of Re. 0.35 per Equity Equity Shares and Share of ` 10 each. CCCPS Interim Dividend for FY 2017-18 on CCCPS at the rate of 9% p.a. and 8.50% p.a., as may be applicable.

h) Interest Income on 6,748 Tenor of upto Cost of Funds for previous – ICDs during the year one year month plus 25 bps.

i) ICDs Outstanding - 33,784 Tenor upto 1 Cost of Funds for previous – Receivable year month plus 25 bps.

65 Annual Report 2017-18

1DPHRI 'XUDWLRQRI 6DOLHQWWHUPVRIWKH Amount 1DWXUHRIFRQWUDFWV Sr. the 1DWXUHRI Amount the contracts / contracts or arrangements paid as arrangements/ No. Related Relationship (` in lakh) arrangements/ or transactions including the advances, transactions Party transactions YDOXHLIDQ\ LIDQ\

2 Tata Capital Subsidiary a) Investment in 30,100 9 years Compulsorily Convertible – Housing CCCPS into Equity Shares after Finance completion of 9 years from the Limited date of allotment or voluntary conversion at the option of the CCCPS holder. Rate of dividend being 8.5% p.a., on a cumulative basis.

b) ICDs placed during 2,05,185 Tenor upto 1 Cost of Funds for previous – the year year month plus 25 bps.

c) ICDs repaid during 2,15,185 Tenor upto 1 Not Applicable – the year year

d) Dividend received 8,047 Not Applicable Interim Dividend for – during the year on FY 2017-18 at the rate of CCCPS 9% p.a. and 8.50% p.a., as may be applicable.

3 Tata Subsidiary a) ICDs placed during 1,55,915 Tenor upto 1 Cost of Funds for previous – Cleantech the year year month plus 25 bps. Capital Limited b) ICDs repaid during 1,58,642 Tenor upto 1 Not Applicable – the year year

4 Tata Capital Subsidiary a) ICDs placed during 2,300 Tenor upto 1 Cost of Funds for previous – Forex the year year month plus 25 to 100 bps. Limited b) ICDs repaid during 5,315 Tenor upto 1 Not Applicable – the year year

5 Tata Capital Subsidiary Income – Advisory 3,637 Ongoing, Non-binding advice by the – Advisors Fees subject to Company. Monthly invoices Pte Limited termination raised as per terms of (“TCAPL”) agreement with currency risk to the account of TCAPL.

6 Tata Capital Subsidiary Proceeds from 4,086 Not Applicable Proportionate divestment – Growth Divestment proceeds attributable to units Fund held by Tata Capital Limited.

7 Tata Capital Associate Proceeds from 4,070 Not Applicable Proportionate divestment – Healthcare Divestment proceeds attributable to units Fund held by Tata Capital Limited.

Notes: 1. Appropriate approvals have been taken for Related Party Transactions. 2. Materiality Thresholds for Reporting Related Party Transactions in the Ordinary Course of Business and on an Arm’s Length basis is as per the Framework for Related Party Transactions adopted by the Company.

For and on behalf of the Board of Directors

Mumbai Saurabh Agrawal May 7, 2018 Chairman DIN: 02144558

66 Annexure Form No. MGT-9 EXTRACT OF ANNUAL RETURN as on the Financial Year ended on March 31, 2018 [Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS: i) CIN: U65990MH1991PLC060670 ii) Registration Date: March 8, 1991 iii) Name of the Company: Tata Capital Limited iv) Category of the Company: Company Limited by shares Sub-category of the Company: Indian Non-Government Company

v) Address of the Registered office and contact details: One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai – 400001, Maharashtra, India. The Registered Office address has changed toth 11 Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013, with effect from April 1, 2018.

Contact details: Telephone Number: 022 6606 9000 E-mail id: [email protected]

vi) Whether listed company: No

vii) Name, Address and Contact details of Registrar and Transfer Agent, if any a) Registrar and Transfer Agent for the Company’s Equity Shares, Preference Shares and Non Convertible Debentures Name : TSR Darashaw Limited Address : 6-10, Haji Moosa Patrawala Industrial Estate, Near Famous Studio, 20, Dr. E Moses Road, Mahalaxmi, Mumbai – 400011, Maharashtra, India Contact Details : Mr. Deepak Tambe Phone No.: 022-66178554 E-mail id: [email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10% or more of the total turnover of the Company shall be stated:

% to total Sl. Name and Description of main NIC Code of the turnover of the No. products / services Product / service company 1 Investment Activity 64200 70 2 Advisory Services 66309, 66190 20

– 1 – Annual Report 2017-18

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Holding/ % of Sl. Name and Address of the Applicable CIN/GLN Subsidiary/ Shares No. Company Section Associate Held

1 Tata Sons Limited U99999MH1917PLC000478 Holding 93.22 Section 2(46) Bombay House, 24, Homi Mody Street, Mumbai - 400001

2 Tata Capital Financial Services U67100MH2010PLC210201 Subsidiary 100 Section 2(87) Limited* One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400001

3 Tata Capital Housing Finance U67190MH2008PLC187552 Subsidiary 100 Section 2(87) Limited* One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400001

4 Tata Securities Limited* U67120MH1994PLC080918 Subsidiary 100 Section 2(87) One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai – 400001

5 Tata Cleantech Capital U65923MH2011PLC222430 Subsidiary 80.50 Section 2(87) Limited* One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400001

7 Tata Capital Pte. Limited N.A. Subsidiary 100 Section 2(87) 8 Shenton Way, #19-01, AXA Tower, Singapore 068811

9 Tata Capital Markets Pte. N.A. Subsidiary 100 Section 2(87) Limited 8 Shenton Way, #19- 01, AXA Tower, Singapore 068811

10 Tata Capital Advisors Pte. N.A. Subsidiary 100 Section 2(87) Limited 8 Shenton Way, #19-01, AXA Tower, Singapore 06881

11 Tata Capital Plc N.A. Subsidiary 100 Section 2(87) 30 Millbank, London, SW1P 4WY, England, United Kingdom

12 Tata Capital General Partners N.A. Subsidiary 80 Section 2(87) LLP 8 Shenton Way, #19-01, AXA Tower, Singapore 068811

– 2 – Holding/ % of Sl. Name and Address of the Applicable CIN/GLN Subsidiary/ Shares No. Company Section Associate Held

13 Tata Capital Healthcare N.A. Subsidiary 100 Section 2(87) General Partners LLP 8 Shenton Way, #19-01, AXA Tower, Singapore 068811

14 Tata Opportunities General N.A. Subsidiary 90 Section 2(87) Partners LLP 8 Shenton Way, #19-01, AXA Tower, Singapore 068811

15 Tata Autocomp Systems U34100PN1995PLC158999 Associate 24 Section 2(6) Limited TACO House, Plot No. - 20/B FPN085, V.G. Damle Path, Off Law College Road, Erandwane, Pune, Maharashtra 411004

17 Tata Capital Growth Fund* N.A. Subsidiary 73.75 Though a Trust One Forbes, Dr. V. B. Gandhi would not be Marg, Fort, Mumbai - 400001 considered as a body corporate 18 Tata Capital Healthcare Fund* N.A. Associate 32.12 under the One Forbes, Dr. V. B. Gandhi Companies Act, Marg, Fort, Mumbai - 400001 2013, those have been disclosed as 19 Tata Capital Special Situations N.A. Associate 28.18 a measure of good Fund governance. Tata Trustee Company Limited, Mafatlal Centre, 9th Floor, Nariman Point, Mumbai - 400021

20 Tata Capital Innovations Fund* N.A. Associate 27.13 One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai - 400001

* The Registered Office address has changed from One Forbes, Dr. V. B. Gandhi Marg, Fort, Mumbai – 400001 to 11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013, with effect from April 1, 2018.

Notes: 1. During the year, TC Travel And Services Limited and Tata Capital Forex Limited have ceased to be the wholly owned subsidiaries of Tata Capital Limited (“TCL”), with effect from October 30, 2017. 2. During the year, the shareholding of Tata Capital Financial Services Limited (a wholly owned subsidiary of TCL) in International Asset Reconstruction Company Private Limited (“IARC”) reduced from 25.37% to 16.57% and hence, IARC ceased to be an Associate of the Company, with effect from March 9, 2018.

– 3 – Annual Report 2017-18

iv. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) (i) Category-wise Shareholding

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change Category of Shareholders during the % of Total % of Total Demat Physical Total Demat Physical Total year Shares Shares

A. Promoters

(1) Indian

a) Individual/HUF – – – – – – – – –

b) Central Govt – – – – – – – – –

c) State Govt(s) – – – – – – – – –

d) Bodies Corp. 2,63,44,33,946 – 2,63,44,33,946 93.22 2,63,44,33,946 – 2,63,44,33,946 93.22 –

e) Banks / FI – – – – – – – – –

f) Any Other…. – – – – – – – – –

Sub–total (A)(1):– 2,63,44,33,946 – 2,63,44,33,946 93.22 2,63,44,33,946 – 2,63,44,33,946 93.22 –

(2) Foreign

a) NRIs – Individuals – – – – – – – – –

b) Other – Individuals – – – – – – – – –

c) Bodies Corp. – – – – – – – – –

d) Banks / FI – – – – – – – – –

e) Any Other…. – – – – – – – – –

Sub–total (A)(2):– – – – – – – – – –

Total shareholding of Promoter 2,63,44,33,946 – 2,63,44,33,946 93.22 2,63,44,33,946 – 2,63,44,33,946 93.22 – (A) = (A)(1)+(A)(2)

B. Public Shareholding

(1) Institutions

a) Mutual Funds – – – – – – – – –

b) Banks / FI – – – – – – – – –

c) Central Govt – – – – – – – – –

d) State Govt(s) – – – – – – – – –

e) Venture Capital Funds – – – – – – – – –

f) Insurance Companies – – – – – – – – –

g) FIIs – – – – – – – – –

h) Foreign Venture Capital – – – – – – – – – Funds

i) Others (specify) – – – – – – – – –

Sub–total (B)(1):– – – – – – – – – –

– 4 – No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change Category of Shareholders during the % of Total % of Total Demat Physical Total Demat Physical Total year Shares Shares

(2) Non–Institutions

a) Bodies Corp.

i) Indian 11,67,21,517 – 11,67,21,517 4.13 11,67,21,517 – 11,67,21,517 4.13 –

ii) Overseas – – – – – – – – –

b) Individuals

i) Individual shareholders holding nominal 14,05,653 – 14,05,653 0.05 18,46,329 – 18,46,329 0.07 0.02 share capital upto ` 1 lakh

ii) Individual shareholders holding nominal 1,72,08,950 – 1,72,08,950 0.61 1,92,12,790 – 1,92,12,790 0.68 0.07 share capital in excess of ` 1 lakh

c) Others

i) TCL Employee Welfare Trust 5,59,22,522 – 5,59,22,522 1.98 5,34,78,006 – 5,34,78,006 1.89 (0.09) (ESOP Trust)

ii) Non–Resident 3,25,582 – 3,25,582 0.01 3,25,582 – 3,25,582 0.01 – Indian

Sub–total (B)(2):– 19,15,84,224 – 19,15,84,224 6.78 19,15,84,224 – 19,15,84,224 6.78 –

Total Public Shareholding 19,15,84,224 – 19,15,84,224 6.78 19,15,84,224 – 19,15,84,224 6.78 – (B)=(B)(1)+(B)(2)

C. Shares held by Custodian – – – – – – – – – for GDRs & ADRs

Grand Total (A+B+C) 2,82,60,18,170 – 2,82,60,18,170 100.00 2,82,60,18,170 – 2,82,60,18,170 100.00 –

(ii) Shareholding of Promoters (Equity Share Capital)

Shareholding at the beginning of the year Shareholding at the end of the year % change in Sl. % of Shares % of Shares shareholding Shareholder’s Name % of total Pledged / % of total Pledged / No. No. of during the Shares of the encumbered No. of Shares Shares of the encumbered Shares year company to total company to total shares shares

1. Tata Sons Limited 2,63,44,33,946 93.22 – 2,63,44,33,946 93.22 – –

Total 2,63,44,33,946 93.22 – 2,63,44,33,946 93.22 – –

(iii) Change in Promoters’ Shareholding (Equity Share Capital) (please specify, if there is no change) There is no change in promoter’s shareholding during FY 2017-18.

– 5 – Annual Report 2017-18

(iv) Shareholding Pattern (Equity Share Capital) of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs)

Shareholding Cumulative Shareholding during the year (1.4.2017 No. of Increase/ to 31.3.2018) SI. Shares at the % of total Name Date Decrease in Reason No. beginning shares % of total (1.4.2017)/ end of the shareholding No. of shares of the year Company Shares of the (31.3.2018) Company 1 Tata Investment 7,71,96,591 2.73 April 1, 2017 – – 7,71,96,591 2.73 Corporation Limited Nil movement during the year 7,71,96,591 2.73 March 31, 7,71,96,591 2.73 2018 2 F. K. Kavarana, 5,59,22,522 1.98 April 1, 2017 – – 5,59,22,522 1.98 H. N. Sinor and Shuva Mandal May 23, 2017 (1,03,459) Transfer 5,58,19,063 1.98 Trustees of TCL May 26, 2017 34,380 Purchase 5,58,53,443 1.98 Employee Welfare Trust July 10, 2017 (4,17,916) Transfer 5,54,35,527 1.96 July 14, 2017 19,122 Purchase 5,54,54,649 1.96 August 21, (4,93,016) Transfer 5,49,61,633 1.95 2017 September 4, 1,69,053 Purchase 5,51,30,686 1.95 2017 September (5,96,390) Transfer 5,45,34,296 1.93 15, 2017 September (49,444) Transfer 5,44,84,852 1.93 28, 2017 October 18, (80,000) Transfer 5,44,04,852 1.93 2017 November 3, 18,052 Purchase 5,44,22,904 1.93 2017 December 4, (1,53,541) Transfer 5,42,69,363 1.92 2017 December 59,043 Purchase 5,43,28,406 1.92 15, 2017 January 11, (2,42,500) Transfer 5,40,85,906 1.91 2018 January 17, 28,259 Purchase 5,41,14,165 1.92 2018 February 14, (2,66,306) Transfer 5,38,47,859 1.91 2018 February 21, 70,147 Purchase 5,39,18,006 1.91 2018 March 14, (4,40,000) Transfer 5,34,78,006 1.89 2018 5,34,78,006 1.89 March 31, 5,34,78,006 1.89 2018

– 6 – Shareholding Cumulative Shareholding during the year (1.4.2017 No. of Increase/ to 31.3.2018) SI. Shares at the % of total Name Date Decrease in Reason No. beginning shares % of total (1.4.2017)/ end of the shareholding No. of shares of the year Company Shares of the (31.3.2018) Company 3 Cyrus Investments 1,29,78,905 0.46 April 1, 2017 – – 1,29,78,905 0.46 Private Limited Nil movement during the year

1,29,78,905 0.46 March 31, 1,29,78,905 0.46 2018 4 Sterling 1,29,78,905 0.46 April 1, 2017 – – 1,29,78,905 0.46 Investment Corporation Nil movement Private Limited during the year 1,29,78,905 0.46 March 31, 1,29,78,905 0.46 2018

5 Tata Motors 43,26,651 0.15 April 1, 2017 – – 43,26,651 0.15 Limited Nil movement during the year 43,26,651 0.15 March 31, 43,26,651 0.15 2018 6 Tata Chemicals 32,30,859 0.11 April 1, 2017 – – 32,30,859 0.11 Limited Nil movement during the year 32,30,859 0.11 March 31, 32,30,859 0.11 2018 7 Af-Taab 23,33,070 0.08 April 1, 2017 – – 23,33,070 0.08 Investment Company Limited Nil movement during the year 23,33,070 0.08 March 31, 23,33,070 0.08 2018 8 Tata Industries 22,72,346 0.08 April 1, 2017 – – 22,72,346 0.08 Limited Nil movement during the year 22,72,346 0.08 March 31, 22,72,346 0.08 2018 9 Ratan Naval Tata 12,34,861 0.04 April 1, 2017 – – 12,34,861 0.04 Nil movement during the year 12,34,861 0.04 March 31, 12,34,861 0.04 2018 10 Noel Naval Tata 11,48,570 0.04 April 1, 2017 – – 11,48,570 0.04 Nil movement during the year 11,48,570 0.04 March 31, 11,48,570 0.04 2018

– 7 – Annual Report 2017-18

(v) Shareholding (Equity Share) of Directors and Key Managerial Personnel

Shareholding Cumulative Shareholding during the year No. of (1.4.2017 to 31.3.2018) Increase/ SI. Shares at the Name % of total Date Decrease in Reason No. beginning shares of the shareholding % of total (1.4.2017)/ end Company No. of Shares shares of the of the year Company (31.3.2018)

1 Mr. Ishaat Hussain 2,20,000 0.01 April 1, 2017 – – 2,20,000 0.01 (Non - Executive Director) Nil movement during the year

2,20,000 0.01 March 31, 2018 2,20,000 0.01

2 Mr. Janki Ballabh 2,30,780 0.01 April 1, 2017 – – 2,30,780 0.01 (Independent Director) Nil movement during the year

2,30,780 0.01 March 31, 2018 2,30,780 0.01

3 Mr. F. N. Subedar 2,43,716 0.01 April 1, 2017 – – 2,43,716 0.01 (Non - Executive Director) Nil movement during the year

2,43,716 0.01 March 31, 2018 2,43,716 0.01

4 Mr. Praveen P. Kadle 14,58,580 0.05 April 1, 2017 – – 14,58,580 0.05 (Managing Director & CEO) May 23, 2017 10,000 ESOP 14,68,580 0.05 Allotment

14,68,580 0.05 March 31, 2018 14,68,580 0.05

5 Mr. Puneet Sharma 2,26,050 0.01 April 1, 2017 – – 2,26,050 0.01 (Chief Financial Officer (“CFO”)) August 21, 10,000 ESOP 2,36,050 0.01 2017 Allotment

2,36,050 0.01 March 31, 2018 2,36,050 0.01

6 Ms. Avan Doomasia 1,29,305 0.00 April 1, 2017 – – 1,29,305 0.00 (Company Secretary) September 15, 30,000 ESOP 1,59,305 0.01 2017 Allotment

1,59,305 0.01 March 31, 2018 1,59,305 0.01

Notes: 1. Mr. Ishaat Hussain retired as a Director of the Company, with effect from September 3, 2017. 2. Mr. Janki Ballabh retired as a Director of the Company, with effect from end of day on October 23, 2017. 3. Mr. Praveen P. Kadle retired as the Managing Director & CEO of the Company, with effect from end of day on March 31, 2018.

– 8 – V. SHAREHOLDING PATTERN (Preference Share Capital Breakup as percentage of Total Preference Capital) (i) Category-wise Shareholding

No. of Shares held at the No. of Shares held at the end of the year Category of Shareholders beginning of the year % Change during the % of Total % of Total Demat Physical Total Demat Physical Total year Shares Shares A. Promoters (1) Indian a) Individual/HUF – – – – – – – – – b) Central Govt – – – – – – – – – c) State Govt(s) – – – – – – – – – d) Bodies Corp. – – – – – – – – – e) Banks / FI – – – – – – – – – f) Any Other…. – – – – – – – – – Sub–total (A)(1):– – – – – – – – – – (2) Foreign a) NRIs – Individuals – – – – – – – – – b) Other – Individuals – – – – – – – – – c) Bodies Corp. – – – – – – – – – d) Banks / FI – – – – – – – – – e) Any Other…. – – – – – – – – – Sub–total (A)(2):– – – – – – – – – – Total shareholding of – – – – – – – – – Promoter (A) = (A)(1)+(A)(2)

B. Public Shareholding

(1) Institutions

a) Mutual Funds – – – – – – – – –

b) Banks / FI 2,40,000 – 2,40,000 1.31 2,40,000 – 2,40,000 1.29 (0.2)

c) Central Govt – – – – – – – – –

d) State Govt(s) – – – – – – – – –

e) Venture Capital Funds – – – – – – – – –

f) Insurance Companies 2,00,000 – 2,00,000 1.09 2,00,000 – 2,00,000 1.07 (0.2)

g) FIIs – – – – – – – – –

h) Foreign Venture – – – – – – – – – Capital Funds

i) Others (specify) – – – – – – – – –

Sub–total (B)(1):– 4,40,000 – 4,40,000 2.40 4,40,000 – 4,40,000 2.36 (0.4)

(2) Non–Institutions

a) Bodies Corp.

i) Indian 69,06,887 – 69,06,887 37.71 92,01,339 – 92,01,339 49.42 11.71

ii) Overseas – – – – – – – – –

b) Individuals

– 9 – Annual Report 2017-18

No. of Shares held at the No. of Shares held at the end of the year Category of Shareholders beginning of the year % Change during the % of Total % of Total Demat Physical Total Demat Physical Total year Shares Shares

i) Individual shareholders holding 11,080 – 11,080 0.06 11,480 – 11,480 0.06 – nominal share capital upto ` 1 lakh

ii) Individual shareholders holding 98,15,283 3,000 98,18,283 53.61 82,26,363 – 82,26,363 44.18 (9.43) nominal share capital in excess of ` 1 lakh

c) Others

(i) Trust 5,58,499 – 5,58,499 3.05 3,78,333 – 3,78,333 2.03 (1.02)

(ii) Club 3,400 – 3,400 0.02 3,400 – 3,400 0.02 –

(iii) Clearing Member 22,700 – 22,700 0.12 21,700 – 21,700 0.12 –

(iv) Hindu Undivided 5,12,668 – 5,12,668 2.80 2,99,992 – 2,99,992 1.61 (1.19) Family

(v) Non-Resident Indian 40,950 – 40,950 0.23 35,850 – 35,850 0.19 (0.04)

Sub–total (B)(2):– 1,78,71,467 3,000 1,78,74,467 97.60 1,81,78,457 – 1,81,78,457 97.64 0.5

Total Public Shareholding 1,83,11,467 3,000 1,83,14,467 100 1,86,18,457 1,86,18,457 100 – (B)=(B)(1)+(B)(2)

C. Shares held by Custodian – – – – – – – – – for GDRs & ADRs

Grand Total (A+B+C) 1,83,11,467 3,000 1,83,14,467 100.00 1,86,18,457 – 1,86,18,457 100.00 –

(ii) Shareholding (Preference Shares) of Promoters – Nil (iii) Change in Promoters’ Shareholding (Preference Shares) (please specify, if there is no change) – Nil (iv) Shareholding Pattern of top ten Shareholders (Preference Shares) (other than Directors, Promoters and Holders of GDRs and ADRs)

Shareholding Cumulative Shareholding during the year No. of Shares at Increase/ (1.4.2017 to 31.3.2018) SI. % of total Name the beginning Date Decrease in Reason No. shares (1.4.2017)/ end shareholding % of total of the No. of of the year shares of the Company Shares (31.3.2018) Company

1 Shree Cement Limited 20,00,000 10.92 April 1, 2017 – – 20,00,000 10.92

July 28, 2017 7,50,000 Allotment 27,50,000 14.77

27,50,000 14.77 March 31, 2018 27,50,000 14.77

2 Wipro Enterprises 5,00,000 2.73 April 1, 2017 – – 5,00,000 2.73 Private Limited – 1,66,666 Purchase 6,66,666 3.58

6,66,666 3.58 March 31, 2018 6,66,666 3.58

– 10 – Shareholding Cumulative Shareholding during the year No. of Shares at Increase/ (1.4.2017 to 31.3.2018) SI. % of total Name the beginning Date Decrease in Reason No. shares (1.4.2017)/ end shareholding % of total of the No. of of the year shares of the Company Shares (31.3.2018) Company

3 Claris Lifesciences – – April 1, 2017 – – Limited September 5,00,000 Allotment 5,00,000 2.69 29, 2017

5,00,000 2.69 March 31, 2018 5,00,000 2.69

4 Balkrishna Industries – – April 1, 2017 – – Limited September 2,00,000 Allotment 2,00,000 1.07 15, 2017

– 2,80,000 Purchase 4,80,000 2.58

4,80,000 2.58 March 31, 2018 4,80,000 2.58

5 International Tractors 4,33,700 2.37 April 1, 2017 – – 4,33,700 2.37 Limited Nil movement during the year

4,33,700 2.33 March 31, 2018 4,33,700 2.33

6 Hindustan Composites 1,50,000 0.82 April 1, 2017 – – 1,50,000 0.82 Limited July 7, 2017 50,000 Allotment 2,00,000 1.07

– 2,47,000 Purchase 4,47,000 2.40

– (1,00,000) Sold 3,47,000 1.86

3,47,000 1.86 March 31, 2018 3,47,000 1.86

7 Azim Premji Trust 4,99,999 2.73 April 1, 2017 – – 4,99,999 2.73

– (1,66,666) Sold 3,33,333 1.79

3,33,333 1.79 March 31, 2018 3,33,333 1.79

8 Voltas Limited – – April 1, 2017 – – – –

July 26, 2017 2,50,000 Allotment 2,50,000 1.34

August 4, 2017 50,000 Allotment 3,00,000 1.61

3,00,000 1.61 March 31, 2018 3,00,000 1.61

9 Shankar Resources 2,50,000 1.36 April 1, 2017 – – 2,50,000 1.36 Private Limited Nil movement during the year

2,50,000 1.34 March 31, 2018 2,50,000 1.34

10 Nucleus Software 2,11,500 1.15 April 1, 2017 – – 2,11,500 1.15 Exports Limited Nil movement during the year

2,11,500 1.14 March 31, 2018 2,11,500 1.14

– 11 – Annual Report 2017-18

(v) Shareholding (Preference Shares) of Directors and Key Managerial Personnel

Shareholding Cumulative Shareholding during the year (1.4.2017 to 31.3.2018) No. of Shares at Increase/ SI. % of total Name the beginning Date Decrease in Reason No. shares % of total (1.4.2017) / shareholding of the No. of shares end of the year Company Shares of the (31.3.2018) Company

1 Mr. Ishaat Hussain 27,000 0.15 April 1, 2017 – – 27,000 0.15 (Non-Executive Director) Nil movement during the year

27,000 0.14 March 31, 2018 27,000 0.14

2 Mr. Nalin M. Shah 9,200 0.05 April 1, 2017 – – 9,200 0.05 (Independent Director) – 2,600 Purchase 11,800 0.06

11,800 0.06 March 31, 2018 11,800 0.06

3 Mr. Praveen P. Kadle 27,000 0.15 April 1, 2017 – – 27,000 0.15 (Managing Director & CEO) Nil movement during the year

27,000 0.14 March 31, 2018 27,000 0.14

4 Mr. Janki Ballabh 2,500 0.01 April 1, 2017 – – 2,500 0.01 (Independent Director) Nil movement during the year

2,500 0.01 March 31, 2018 2,500 0.01

5 Dr. Ritu Anand 2,500 0.01 April 1, 2017 – – 2,500 0.01 (Non-Executive Director) Nil movement during the year

2,500 0.01 March 31, 2018 2,500 0.01

6 Mr. Puneet Sharma (CFO) 10 0.00 April 1, 2017 – – 10 0.00

Nil movement during the year

10 0.00 March 31, 2018 10 0.00

Notes: 1. Mr. Ishaat Hussain retired as a Director of the Company, with effect from September 3, 2017. 2. Mr. Janki Ballabh retired as a Director of the Company, with effect from end of day on October 23, 2017. 3. Mr. Praveen P. Kadle retired as the Managing Director & CEO of Company, with effect from the end of day on March 31, 2018. 4. Dr. Ritu Anand ceased to be a Director of the Company, with effect from the close of business hours on October 31, 2017.

– 12 – VI. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment: (` in lakh)

Secured Loans Unsecured Total Deposits excluding Loans Indebtedness deposits

Indebtedness at the beginning of the financial year i) Principal Amount – 1,37,800 – 1,37,800 ii) Interest due but not paid – – – – iii) Interest accrued but not due – – – –

Total (i+ii+iii) – 1,37,800 – 1,37,800

Change in Indebtedness during the financial year • Addition – 2,20,500 – 2,20,500 • Reduction – (1,75,300) – (1,75,300)

Net Change – 45,200 – 45,200

Indebtedness at the end of the financial year i) Principal Amount – 1,83,000 – 1,83,000 ii) Interest due but not paid – – – – iii) Interest accrued but not due – – – –

Total (i+ii+iii) – 1,83,000 – 1,83,000

VII. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (` in lakh) Sl. No. Particulars of Remuneration Name of MD Total Amount Mr. Praveen P. Kadle 1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 431.37 431.37 (b) Value of perquisites under section 17(2) of 36.13 36.13 the Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) – – of the Income-tax Act, 1961 2 Stock Option (Number) 10,000 3 Sweat Equity – – 4 Commission – – – as % of profit – others, specify… 5 Others, please specify – – Total (A) 467.50 467.50 Ceiling as per the Act 893

Note: a. Mr. Praveen P. Kadle retired as the Managing Director & CEO of the Company, with effect from the end of day on March 31, 2018.

– 13 – Annual Report 2017-18

B. Remuneration to other directors: (` in lakh) Sl. Particulars of Total Name of Directors No. Remuneration Amount

Mr. Mehernosh B 1 Independent Directors Mr. Janki Ballabh Mr. Nalin Shah Kapadia

• Fee for attending board / committee 6.90 14.10 8.40 29.40 meetings

• Commission 25.00 25.00 – 50.00

• Others, please specify – – – –

Total (1) 31.90 39.10 8.40 79.40

Other Non–Executive Mr. F. N. Ms. Aarthi Mr. Saurabh Dr. Ritu Mr. Ishaat 2 Directors Subedar Subramanian Agrawal Anand Hussain

• Fee for attending board / committee 4.40 5.10 3.00 3.00 2.00 18.00 meetings

• Commission 20.00 – – 20.00 20.00 60.00

• Others, please specify – – – – – –

Total (2) 24.40 5.10 3.00 23.00 22.00 78.00

Total (B)=(1+2) 157.40

Total Managerial 624.90 Remuneration

Overall Ceiling as per the 1,965 Act

Notes: a. The Remuneration details as mentioned above include Sitting fees paid in FY 2017-18 and Commission paid for FY 2016-17 in FY 2017-18. b. Mr. Ishaat Hussain retired as a Director of the Company, with effect from September 3, 2017. c. Mr. Janki Ballabh retired as a Director of the Company, with effect from end of day on October 23, 2017. d. Dr. Ritu Anand ceased to be a Director of the Company, with effect from the close of business hours on October 31, 2017. e. Mr. Saurabh Agrawal was appointed as a Director of the Company, with effect from July 28, 2017. f. Mr. Mehernosh B. Kapadia was appointed as a Director of the Company, with effect from October 24, 2017. g. Ms. Aarthi Subramanian was appointed as a Director of the Company, with effect from October 30, 2017.

– 14 – C. Remuneration to Key Managerial Personnel other than Md / Manager / Wtd (` in lakh)

Key Managerial Personnel

Sl. Ms. Avan Particulars of Remuneration No. Mr. Puneet Doomasia, Total Sharma, CFO Company Secretary

1 Gross salary (a) Salary as per provisions contained in 206.20 107.96 314.16 section 17(1) of the Income–tax Act, 1961 (b) Value of perquisites under section 17(2) 0.87 7.21 8.08 of the Income–tax Act, 1961 (c) Profits in lieu of salary under section – – – 17(3) of the Income–tax Act, 1961

2 Stock Option (Number) 10,000 10,000 –

3 Sweat Equity – – –

4 Commission – – – – as % of profit – others, specify…

5 Others, please specify – – –

Total 207.07 115.17 322.24

VIII. PENALTIES/ PUNISHMENT/ COMPOUNDING OF OFFENCES:

Details of Section of the Penalty / Authority Appeal made, Brief Type Companies Punishment/ [RD / NCLT if any (give Description Act Compounding / COURT] Details) fees imposed

A. COMPANY

Penalty – – – – –

Punishment – – – – –

Compounding – – – – –

B. DIRECTORS

Penalty – – – – –

Punishment – – – – –

Compounding – – – – –

– 15 – Annual Report 2017-18

Details of Section of the Penalty / Authority Appeal made, Brief Type Companies Punishment/ [RD / NCLT if any (give Description Act Compounding / COURT] Details) fees imposed

C. OTHER OFFICERS IN DEFAULT

Penalty – – – – –

Punishment – – – – –

Compounding – – – – –

– 16 – Consolidated Financial Statements

67 Annual Report 2017-18

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

TO THE MEMBERS OF TATA CAPITAL LIMITED

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69 Annual Report 2017-18

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CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 (`LQODNK Note As at As at Particulars No. March 31, 2018 March 31, 2017 I EQUITY AND LIABILITIES 1. Shareholders' Funds   D  6KDUH&DSLWDO  4,62,850    E  5HVHUYHVDQG6XUSOXV 3 2,01,818  6,64,668 6,04,373 2. Minority Interest 16,937  3. Non-current liabilities   D  /RQJWHUPERUURZLQJV  24,85,611    E  2WKHUORQJWHUPOLDELOLWLHV  11,429    F  /RQJWHUPSURYLVLRQV 6 51,325  25,48,365 19,86,772 4. Current liabilities   D  6KRUWWHUPERUURZLQJV 7 19,39,389    E  7UDGHSD\DEOHV 8    L  WRWDO RXWVWDQGLQJ GXHV RI PLFUR HQWHUSULVHV DQG VPDOO  D – ± HQWHUSULVHV    LL  WRWDO RXWVWDQGLQJ GXHV RI FUHGLWRUV RWKHU WKDQ PLFUR 59,749  HQWHUSULVHVDQGVPDOOHQWHUSULVHV   F  2WKHUFXUUHQWOLDELOLWLHV 9 10,83,968    G  6KRUWWHUPSURYLVLRQV  95,690  31,78,796 28,84,359 Total 64,08,766 54,91,724 II ASSETS 1. Non-current assets   D  3URSHUW\SODQWDQGHTXLSPHQW 11    L  7DQJLEOHDVVHWV 82,079     LL  ,QWDQJLEOHDVVHWV 2,314     LLL  &DSLWDOZRUNLQSURJUHVV 275     LY  ,QWDQJLEOHDVVHWVXQGHUGHYHORSPHQW 764 997 85,432    E  *RRGZLOORQFRQVROLGDWLRQ  – ±   F  1RQFXUUHQWLQYHVWPHQWV 13 1,13,963    G  'HIHUUHGWD[DVVHWV QHW   42,726    H  /RQJWHUP/RDQVDQGDGYDQFHV¿QDQFLQJDFWLYLW\  38,38,105    I  /RQJWHUP/RDQVDQGDGYDQFHVRWKHUV 16 28,096    J  2WKHUQRQFXUUHQWDVVHWV 17 11,843  41,20,165 35,71,717 2. Current assets   D  &XUUHQWLQYHVWPHQWV 13 12,907    E  7UDGHUHFHLYDEOHV 18 7,096    F  &DVKDQGEDQNEDODQFHV 19 24,149    G  6KRUWWHUP/RDQVDQGDGYDQFHV¿QDQFLQJDFWLYLW\  22,05,932    H  6KRUWWHUP/RDQVDQGDGYDQFHVRWKHUV  19,611    I  2WKHUFXUUHQWDVVHWV  18,906  22,88,601 19,20,007 Total 64,08,766 54,91,724 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKH¿QDQFLDOVWDWHPHQWV  ,QWHUPVRIRXUUHSRUWDWWDFKHG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV )RUB S R & Co. LLP Saurabh Agrawal Mehernosh B. Kapadia Nalin M. Shah &KDUWHUHG$FFRXQWDQWV &KDLUPDQ 'LUHFWRU 'LUHFWRU )LUP5HJ1R:: ',1 ',1 ',1

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CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2018 `LQODNK For the Year For the Year Note Particulars Ended Ended No. March 31, 2018 March 31, 2017 1 CASH FLOW USED IN OPERATING ACTIVITIES 3UR¿WEHIRUHWD[ 1,20,248  Adjustments for : $PRUWLVDWLRQRIVKDUHGHEHQWXUHLVVXHH[SHQVHV 1,479  'HSUHFLDWLRQDQGDPRUWLVDWLRQ 24,821  /LDELOLWLHVZULWWHQEDFN –  /RVV SUR¿W RQVDOHRI¿[HGDVVHWV QHW (1,059)  ,QWHUHVWH[SHQVHV 2,99,034  ,QWHUHVWH[SHQVHVRQVKDUHDSSOLFDWLRQPRQH\ 12 ± 'LVFRXQWLQJFKDUJHVRQFRPPHUFLDOSDSHU 67,381  'LVFRXQWLQJFKDUJHVRQGHEHQWXUHV 448  'LVFRXQWLQJFKDUJHVRQ&ROODWHUDOLVHG%RUURZLQJVDQG/HQGLQJ2EOLJDWLRQV &%/2 –  ,QWHUHVWLQFRPH (5,94,079)  ,QFRPHIURPLQYHVWPHQWV (9,203)  ,QWHUHVW,QFRPHRQ¿[HGGHSRVLWV (294)  /RVVRQVDOHRILQYHVWPHQWV –  ,QWHUHVWRQLQFRPHWD[UHIXQG (935)  $PRUWLVDWLRQRISUHPLXPRIIRUZDUGIRUHLJQH[FKDQJHFRYHU 128 ± ([FKDQJHJDLQV QHW –  3URYLVLRQIRUOHDYHHQFDVKPHQW 29  5HYHUVDO 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRILQYHVWPHQWV (435)  3URYLVLRQIRUPDUNWRPDUNHWORVVRQFXUUHQWLQYHVWPHQWV 1,463 383 7UDGH5HFLHYDEOHVZULWWHQRII 4  3URYLVLRQDJDLQVWWUDGHUHFLHYDEOHV 443  &RQWLQJHQWSURYLVLRQDJDLQVWVWDQGDUGDVVHWV 5,247  &RQWLQJHQWSURYLVLRQDJDLQVWUHVWUXFWXUHGDGYDQFHV QHW (1,409)  3URYLVLRQDJDLQVWDVVHWVKHOGIRUVDOH 1,405  3URYLVLRQDJDLQVWRWKHUGRXEWIXODGYDQFHV – 6 3URYLVLRQIRUGRXEWIXOORDQV QHW 38,715  2SHUDWLQJ 3UR¿W EHIRUH ZRUNLQJ FDSLWDO FKDQJHV DQG DGMXVWPHQWV IRU LQWHUHVW (46,557)  paid, interest received, dividend received and dividend received from Associates $GMXVWPHQWVIRU ,QFUHDVH 'HFUHDVHLQWUDGHUHFHLYDEOHV 2,584  ,QFUHDVH 'HFUHDVHLQORDQVDQGDGYDQFHV¿QDQFLQJDFWLYLW\ (9,80,406)  ,QFUHDVH 'HFUHDVHLQORDQVDQGDGYDQFHVRWKHUV (7,362)  ,QFUHDVH 'HFUHDVH LQRWKHUOLDELOLWLHVDQGSURYLVLRQV 16,323  %DQNEDODQFHLQFOLHQWDFFRXQW 50 981 )L[HG 'HSRVLWV ZLWK %DQNV SODFHG XQGHU OLHQ ZLWK VWRFN H[FKDQJHV IRU 21  WUDGLQJPDUJLQV Cash used in operations before adjustments for interest paid, interest (10,15,347) (8,79,797) received, dividend received and dividend received from Associates ,QWHUHVWSDLG (3,79,319)  ,QWHUHVWUHFHLYHG 5,93,865  ,QWHUHVWUHFHLYHGRQLQFRPHWD[UHIXQG 935  'LYLGHQGUHFHLYHG 1,418  'LYLGHQGUHFHLYHGIURP$VVRFLDWHV 966 966 7D[HVSDLG (36,007)  NET CASH USED IN OPERATING ACTIVITIES (8,33,489) (7,03,010) 2 CASH FLOW USED IN INVESTING ACTIVITIES 3XUFKDVHRI¿[HGDVVHWV LQFOXGLQJFDSLWDODGYDQFHV (32,340)  3URFHHGVIURPVDOHRI¿[HGDVVHWV 7,467  3XUFKDVHRIORQJWHUPLQYHVWPHQWV (21,191)  3XUFKDVHRIPXWXDOIXQGXQLWV (12,92,269)  3URFHHGVIURPVDOHRIPXWXDOIXQGXQLWV 12,92,376  3URFHHGVIURPVDOHRIFXUUHQWLQYHVWPHQWV 244 ± 3URFHHGVIURPVDOHRIQRQFXUUHQWLQYHVWPHQWV 15,854  )L[HG GHSRVLWV ZLWK RULJLQDO PDWXULW\ RI PRUH WKDQ  PRQWKV EXW OHVV WKDQ (6,304)  PRQWKV 1(7&$6+ 86(',1 )520,19(67,1*$&7,9,7,(6 (36,163) 70,749

76 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2018 CASH FLOW (contd...... ) `LQODNK For the Year For the Year Note Particulars Ended Ended No. March 31, 2018 March 31, 2017 3 CASH FLOW FROM FINANCING ACTIVITIES ,VVXHRI&RPSXOVRU\&RQYHUWLEOH&XPXODWLYH3UHIHUHQFHVKDUHFDSLWDO 51,475  5HGHPSWLRQRI&XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV (48,435) ± ,QWHUHVWSDLGRQVKDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW (12) ± 5HFRYHU\RIORDQJLYHQWR7&/(PSOR\HHV:HOIDUH7UXVW 16 ± ,QIXVLRQRIFDSLWDOE\PLQRULW\VKDUHKROGHUV 107  3D\RXWRILQFRPHJDLQWR&RQWULEXWRUV (1,688)  'LYLGHQGSDLG LQFOXGLQJGLYLGHQGGLVWULEXWLRQWD[ (19,988)  5HFRYHU\RIORDQJLYHQWRHPSOR\HHVIRU(623 9  /RDQJLYHQWRHPSOR\HHVIRU(623 (748) ± 3URFHHGVIURPVDOHRILQYHVWPHQWVLQVXEVLGLDULHV 1,500 ± 6KDUHLVVXHH[SHQVHV (170)  'HEHQWXUHLVVXHORDQSURFHVVLQJH[SHQVHV (897)  3URFHHGVIURPVKRUWWHUPERUURZLQJVZLWKPDWXULW\SHULRGJUHDWHUWKDQPRQWK 15,09,085  5HSD\PHQWRIVKRUWWHUPERUURZLQJVZLWKPDWXULW\SHULRGJUHDWHUWKDQPRQWK (10,30,972)  1HWSURFHHGVIURPVKRUWWHUPERUURZLQJV 10,737  3URFHHGVIURPORQJWHUPERUURZLQJV 18,48,645  5HSD\PHQWRIORQJWHUPERUURZLQJV (14,66,893)  NET CASH FROM FINANCING ACTIVITIES 8,51,772 6,54,043 1(7,1&5($6( '(&5($6( ,1&$6+$1'&$6+(48,9$/(176 (17,880) 21,782 CASH AND CASH EQUIVALENTS AS AT THE BEGINNING OF THE YEAR 34,449 12,667 CASH AND CASH EQUIVALENTS AS AT THE END OF THE YEAR 16,569 34,449 $''5(675,&7('&$6+ 5HIHUQRWH 53  CASH AND CASH EQUIVALENTS AS AT THE END OF THE YEAR 16,622 34,502 5HFRQFLOLDWLRQRIFDVKDQGFDVKHTXLYDOHQWVDVDERYHZLWKFDVKDQGEDQN EDODQFHV &DVKDQG&DVKHTXLYDOHQWVDWWKHHQGRIWKH\HDUDVSHUDERYH 16,622  $GG'HSRVLWVZLWKEDQNVDQGVWRFNH[FKDQJHVXQGHUOLHQ 378  $GG%DQNEDODQFHLQFOLHQWDFFRXQW 13  $GG )L[HG GHSRVLWV ZLWK RULJLQDO PDWXULW\ RI PRUH WKDQ  PRQWKV EXW OHVV 7,136  WKDQPRQWKV CASH AND BANK BALANCES AS AT THE END OF THE YEAR 19 24,149 35,796 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKH¿QDQFLDOVWDWHPHQWV 

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77 Annual Report 2017-18

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS

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79 Annual Report 2017-18

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vii. Investments   ,QYHVWPHQWVDUHFODVVL¿HGLQWRQRQFXUUHQWDQGFXUUHQWLQYHVWPHQWV

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b. Current investments    &XUUHQWLQYHVWPHQWVDUHLQYHVWPHQWVLQWHQGHGWREHKHOGIRUDSHULRGRIOHVVWKDQD\HDU &XUUHQWLQYHVWPHQWVDUHVWDWHGDWWKHORZHURIFRVWDQGPDUNHWYDOXHGHWHUPLQHGRQDQ LQGLYLGXDOLQYHVWPHQWEDVLV viii. Property, plant and equipment a. Tangible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81 Annual Report 2017-18

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83 Annual Report 2017-18

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 Annual Report 2017-18

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xxvii. Dividend (including dividend distribution tax)   ,QWHULP GLYLGHQG GHFODUHG WR HTXLW\ DQG  RU SUHIHUHQFH VKDUHKROGHUV LI DQ\ LV UHFRJQLVHG DV OLDELOLW\ LQ WKH SHULRG LQ ZKLFK WKH VDLG GLYLGHQG KDV EHHQ GHFODUHG E\ WKH 'LUHFWRUV )LQDO SURSRVHGGLYLGHQGGHFODUHGWRHTXLW\DQGRUSUHIHUHQFHVKDUHKROGHUVLIDQ\LVUHFRJQLVHGLQ WKHSHULRGLQZKLFKWKHVDLGGLYLGHQGKDVEHHQDSSURYHGE\WKH6KDUHKROGHUV

87 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 NOTE “2” Face value As at March 31, 2018 As at March 31, 2017 SHARE CAPITAL Per Unit ` No. of shares `LQODNK No. of shares `LQODNK AUTHORISED $  (TXLW\6KDUHV  4,75,00,00,000 4,75,000   %  3UHIHUHQFH6KDUHV  3,25,00,000 3,25,000   8,00,000 8,00,000 ISSUED $  (TXLW\6KDUHV  2,82,60,18,170 2,82,602   %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH 6KDUHV 'LYLGHQGUDWH  20,71,066 20,711   'LYLGHQGUDWH  70,49,891 70,499   'LYLGHQGUDWH  65,00,000 65,000   'LYLGHQGUDWH  14,97,500 14,975 ±± 'LYLGHQGUDWH  7,50,000 7,500 ±± 'LYLGHQGUDWH  7,50,000 7,500 ±± 4,68,787 4,72,321 SUBSCRIBED & PAID UP $  (TXLW\6KDUHV  2,82,60,18,170 2,82,602    /HVV/RDQJLYHQWR7&/  (5,684)   (PSOR\HHV:HOIDUH7UXVW  /HVV /RDQVWR(PSOR\HHV (253)   %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH 6KDUHV 'LYLGHQGUDWH  2,071,066 20,711   'LYLGHQGUDWH  7,049,891 70,499   'LYLGHQGUDWH  6,500,000 65,000   'LYLGHQGUDWH  1,497,500 14,975 ±± 'LYLGHQGUDWH  750,000 7,500 ±± 'LYLGHQGUDWH  750,000 7,500 ±± Total 4,62,850 4,60,038 Tranches of Cumulative Redeemable Preference Shares (“CRPS”) issued and subscribed during the period 7KH &RPSDQ\ KDV LVVXHG &536 RI IDFH YDOXH `  HDFK DW SDU DQG UHGHHPDEOH DW SDU DV SHU WKH WHUPV RI LVVXDQFH GLVFORVHG KHUHLQ EHORZ 7KH VDLG &536 FDUU\ D SXW RSWLRQ WR WKH &536 KROGHU DQG D FDOO RSWLRQ WR WKH &RPSDQ\WRVHHNHDUO\UHGHPSWLRQDVSHUWKHGDWHVPHQWLRQHGKHUHLQEHORZ No. of Tranche Particulars Allotment Date Redemption Date Early Redemption Dates between shares U 'LYLGHQGUDWH  -XO\ -XO\ -XO\2FWREHU 9 'LYLGHQGUDWH  -XO\ -XO\ -XO\2FWREHU W 'LYLGHQGUDWH  -XO\ -XO\ -XO\2FWREHU X 'LYLGHQGUDWH  -XO\ -XO\ -XO\2FWREHU Y 'LYLGHQGUDWH  $XJXVW $XJXVW -XO\2FWREHU Z 'LYLGHQGUDWH  6HSWHPEHU 6HSWHPEHU 2FWREHU-DQXDU\ $$ 'LYLGHQGUDWH  6HSWHPEHU 6HSWHPEHU 2FWREHU-DQXDU\ Tranches of Cumulative Redeemable Preference Shares (“CRPS”) redeemed during the period The Company has exercised its call option on CRPS of face value `  HDFK ZKLFK ZHUH DOORWHG DQG redeemable at par, within the range of Early Redemption Dates. The said CRPS were redeemed along with the pro-rated dividend up to the date of redemption. No. of Actual Redemption Original Early Redemption Dates Tranche Particulars Allotment Date shares Date between * 'LYLGHQGUDWH  -XQH -XO\ -XQH6HSWHPEHU + 'LYLGHQGUDWH  0D\ -XO\ -XQH6HSWHPEHU I 'LYLGHQGUDWH  -XO\ 6HSWHPEHU -XQH6HSWHPEHU  J 'LYLGHQGUDWH  6HSWHPEHU -XO\ -XQH6HSWHPEHU K 'LYLGHQGUDWH  1RYHPEHU -DQXDU\ 'HFHPEHU0DUFK / 'LYLGHQGUDWH  $SULO -DQXDU\ 'HFHPEHU0DUFK

88 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

Face No. of 2(a) Reconciliation of number of shares outstanding Value per `LQODNK shares unit (`) Opening Share Capital as on April 1, 2016 $  (TXLW\6KDUHV    %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    'LYLGHQG5DWH    4,22,247 Additions during the year $  (TXLW\6KDUHV  ± ± %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH    Closing Share Capital as on March 31, 2017 $  (TXLW\6KDUHV    %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    4,65,747 Additions during the year $  (TXLW\6KDUHV  ± ± %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    Redemptions during the year $  (TXLW\6KDUHV  ± ± %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    Closing Share Capital as on March 31, 2018 $  (TXLW\6KDUHV    %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    4,68,787

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89 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018  F  ,QYHVWPHQWE\7DWD6RQV/LPLWHG WKH+ROGLQJ&RPSDQ\ DQGLWV6XEVLGLDULHV$VVRFLDWHV-9V

No. of equity Name of company Particulars of issue `LQODNK shares Opening Balance as on April 01, 2016   Tata Sons Limited $GG3XUFKDVHG   (the Holding Closing Balance as on March 31, 2017   Company) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016   Tata Investment $GG3XUFKDVHG ± ± Corporation Limited Closing Balance as on March 31, 2017   (Subsidiary of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016   Tata Industries $GG3XUFKDVHG ± ± Limited Closing Balance as on March 31, 2017   (Subsidiary of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016  79 Tata International $GG3XUFKDVHG ± ± Limited (Subsidiary Closing Balance as on March 31, 2017  79 of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  79 Opening Balance as on April 01, 2016   Tata Motors Limited $GG3XUFKDVHG ± ± (Associate of Tata Closing Balance as on March 31, 2017   Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016   Tata Chemicals $GG3XUFKDVHG ± ± Limited Closing Balance as on March 31, 2017   (Associate of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016  61 Tata Global $GG3XUFKDVHG ± ± Beverages Limited Closing Balance as on March 31, 2017  61 (Associate of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  61 Opening Balance as on April 01, 2016   $GG3XUFKDVHG   Total Closing Balance as on March 31, 2017   $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 8.33% Cumulative Redeemable Preference Shares Face Value ` 1,000 fully paid up No. of Name of company Particulars of issue preference `LQODNK shares Opening Balance as on April 1, 2016   Trent Limited $GG3XUFKDVHG ± ± (Associate of Tata Closing Balance as on March 31, 2017   Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  

7.50% Cumulative Redeemable Preference Shares Face Value ` 1,000 fully paid up

No. of Name of company Particulars of issue preference `LQODNK shares Opening Balance as on April 1, 2016 ±± $GG3XUFKDVHG ± ± Voltas Limited (Associate of Tata Closing Balance as on March 31, 2017 ±± Sons Limited) $GG3XUFKDVHG   Closing Balance as on March 31, 2018  

7.33% Cumulative Redeemable Preference Shares Face Value ` 1,000 fully paid up

No. of Name of company Particulars of issue preference `LQODNK shares Opening Balance as on April 1, 2016 ±± $GG3XUFKDVHG ± ± Voltas Limited (Associate of Tata Closing Balance as on March 31, 2017 ±± Sons Limited) $GG3XUFKDVHG   Closing Balance as on March 31, 2018  

2(d) List of Shareholders holding more than 5% Equity Shares as at

Name of Shareholder March 31, 2018 March 31, 2017 No. of Shares % of Holding No. of Shares % of Holding held held 7DWD6RQV/LPLWHG 2,63,44,33,946 93.22%  

91 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 2(e) Rights, preferences and restrictions attached to Preference Shares  7KH &RPSDQ\ KDV LVVXHG &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV ³&536´  RI IDFH YDOXH ` HDFKLQWUDQFKHVKDYLQJWHUPVRILVVXDQFHGLVFORVHGKHUHLQEHORZ7KH&536KROGHUV KDYHDULJKWWRUHFHLYHGLYLGHQGSULRUWRWKH(TXLW\6KDUHKROGHUV7KHGLYLGHQGSURSRVHGE\WKH %RDUG RI 'LUHFWRUV RQ WKH &536 LI DQ\ LV VXEMHFW WR WKH DSSURYDO RI WKH 6KDUHKROGHUV DW WKH HQVXLQJ$QQXDO *HQHUDO 0HHWLQJ H[FHSW LQ FDVH RI LQWHULP GLYLGHQG ,Q WKH HYHQW RI OLTXLGDWLRQ WKH3UHIHUHQFH6KDUHKROGHUVDUHHOLJLEOHWRUHFHLYHWKHUHPDLQLQJDVVHWVRIWKH&RPSDQ\EHIRUH GLVWULEXWLRQWRWKH(TXLW\6KDUHKROGHUVLQSURSRUWLRQWRWKHLUVKDUHKROGLQJ

No. of Early Redemption Particulars Tranche Allotment Date Redemption Date Shares Date * $  $XJXVW $XJXVW 1$ &XPXODWLYH 5HGHHPDEOH3UHIHUHQFH %  2FWREHU 2FWREHU 1$ ` 6KDUHVRI HDFK &  'HFHPEHU 'HFHPEHU 1$ LVVXHGDWSUHPLXPRI`  SHUVKDUHDQGUHGHHPDEOH '  -DQXDU\ -DQXDU\ 1$ DWDSUHPLXPRI`SHU (  )HEUXDU\ )HEUXDU\ 1$ VKDUH )  0DUFK 0DUFK 1$ M  $XJXVW $XJXVW 6HSWHPEHU &XPXODWLYH 5HGHHPDEOH3UHIHUHQFH 1  $SULO $SULO 6HSWHPEHU 6KDUHVRI`HDFK O  6HSWHPEHU 6HSWHPEHU 6HSWHPEHU 3  6HSWHPEHU 6HSWHPEHU 1RYHPEHU Q  6HSWHPEHU 6HSWHPEHU 1RYHPEHU R  2FWREHU 2FWREHU 1RYHPEHU &XPXODWLYH 6  2FWREHU 2FWREHU 1RYHPEHU 5HGHHPDEOH3UHIHUHQFH 6KDUHVRI` HDFK 7  0DUFK 0DUFK 0D\ U  -XO\ -XO\ 2FWREHU 9  -XO\ -XO\ 2FWREHU W  -XO\ -XO\ 2FWREHU &XPXODWLYH X  -XO\ -XO\ 2FWREHU 5HGHHPDEOH3UHIHUHQFH Y  $XJXVW $XJXVW 2FWREHU 6KDUHVRI` HDFK &XPXODWLYH Z  6HSWHPEHU 6HSWHPEHU -DQXDU\ 5HGHHPDEOH3UHIHUHQFH 6KDUHVRI` HDFK &XPXODWLYH $$  6HSWHPEHU 6HSWHPEHU -DQXDU\ 5HGHHPDEOH3UHIHUHQFH 6KDUHVRI` HDFK Total 1,86,18,457

  )RU  &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV  &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV  &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV  &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV  &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV RI `  HDFK WKH &536 KROGHU KDV D 3XW 2SWLRQ DQG WKH &RPSDQ\ KDV D &DOO 2SWLRQ WR VHHN HDUO\ UHGHPSWLRQRIWKH&536E\WKHGDWHVDVVSHFL¿HG

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 Tranches of Cumulative Redeemable Preference Shares (“CRPS”) redeemed during the period  7KH &RPSDQ\ KDV H[HUFLVHG LWV FDOO RSWLRQ RQ &536 RI IDFH YDOXH `  HDFK ZKLFK ZHUH DOORWHG DQG UHGHHPDEOH DW SDU ZLWKLQ WKH UDQJH RI (DUO\ 5HGHPSWLRQ 'DWHV7KH VDLG &536 ZHUH UHGHHPHGDORQJZLWKWKHSURUDWHGGLYLGHQGXSWRWKHGDWHRIUHGHPSWLRQ

No. of Actual Redemption Original Redemption Particulars Tranche Allotment Date Shares Date Date

*  -XQH -XO\ -XQH

+  0D\ -XO\ 0D\

&XPXODWLYH I  -XO\ 6HSWHPEHU -XO\ 5HGHHPDEOH3UHIHUHQFH 6KDUHVRI`HDFK J  6HSWHPEHU -XO\ 6HSWHPEHU K  1RYHPEHU -DQXDU\ 1RYHPEHU

/  $SULO -DQXDU\ 0DUFK Total 48,43,510

2(f) List of Shareholders holding more than 5% Preference Shares as at

March 31, 2018 March 31, 2017 Name of Shareholder No. of No. of % of Holding % of Holding Shares held Shares held 12.50% Cumulative Redeemable Preference Shares of ` 1,000 each $]LP3UHPML7UXVW     :LSUR(QWHUSULVHV3ULYDWH/LPLWHG   ± ± ,QWHUQDWLRQDO7UDFWRUV/LPLWHG     8.33% Cumulative Redeemable Preference Shares of ` 1,000 each 6KUHH&HPHQWV/LPLWHG     7.50% Cumulative Redeemable Preference Shares of ` 1,000 each 6KUHH&HPHQW/LPLWHG     :LSUR(QWHUSULVHV3ULYDWH/LPLWHG     ,QWHUQDWLRQDO7UDFWRUV/LPLWHG ± ±   $GXUMHH$QG%URV3ULYDWH/LPLWHG ± ±   7.33% Cumulative Redeemable Preference Shares of ` 1,000 each +LQGXVWDQ&RPSRVLWV/LPLWHG   ± ± 6LPUDQDQG6KDQD\D&RPSDQ\   ± ± /LPLWHG 7.10% Cumulative Redeemable Preference Shares of ` 1,000 each &ODULV/LIHVFLHQFHV/LPLWHG   ± ± +LQGXVWDQ&RPSRVLWV/LPLWHG   ± ±

93 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 NOTE “3” ` LQODNK RESERVES AND SURPLUS As at March 31, 2018 As at March 31, 2017 (a) Capital Redemption Reserve 575  (b) Capital Reserve 43  (c) Securities Premium Account 2SHQLQJ%DODQFH 12,460  $GG5HFRYHU\RIORDQJLYHQWRHPSOR\HHVIRU(623 1 1 /HVV/RDQJLYHQWR(PSOR\HHVIRU(623 (51) ± /HVV6KDUHLVVXH([SHQVHVZULWWHQRII 5HIHUQRWH  (613)   /HVV:ULWHRIIRI,QYHVWPHQWVSXUVXDQWWR&DSLWDO5HGXFWLRQ – (663)     6FKHPH 5HIHUQRWH 6XE7RWDO 11,797  /HVV$GMXVWPHQWSXUVXDQWWR&DSLWDO5HGXFWLRQ6FKHPH –   5HIHUQRWH  $GG$GMXVWPHQWRI7D[SXUVXDQWWR5HGXFWLRQRI6KDUH –  &DSLWDO 5HIHUQRWH $GG$SSURSULDWLRQIURP6XUSOXVLQWKH6WDWHPHQWRI3UR¿WDQG – –  ± /RVV Closing Balance 11,797 12,460 (d) 6SHFLDO5HVHUYH$FFRXQW6WDWXWRU\5HVHUYH UHIHU footnotes 1, 2 and 3 below) 2SHQLQJ%DODQFH 55,906  $GG7UDQVIHUIURP6XUSOXVLQWKH6WDWHPHQWRI3UR¿WDQG/RVV 21,213  Closing Balance 77,119 55,906 (e) Debenture Redemption Reserve 30,000 30,000 (f) 6XUSOXVLQWKH6WDWHPHQWRI3UR¿WDQG/RVV 2SHQLQJ%DODQFH 42,039  $GGLWLRQDO7D[/LDELOLW\RQDFFRXQWRIPHUJHURIVXEVLGLDULHV –   ZLWKWKH&RPSDQ\ 5HIHUQRWH  $GMXVWPHQWRI6KDUHLVVXH([SHQVHV 5HIHUQRWH  444  $GMXVWPHQWSXUVXDQWWR&DSLWDO5HGXFWLRQ6FKHPH 5HIHUQRWH    *RRGZLOORQFRQVROLGDWLRQZULWWHQRII –    5HYHUVDORI*RRGZLOORQDFTXLVLWLRQRIVXEEURNHUQHWZRUN –   5HYHUVDORIZULWHRIIRIVXEVLGLDULHVFKDUJHGWKURXJK –  6HFXULWLHV3UHPLXPDFFRXQWE\WKH&RPSDQ\  3URYLVLRQVDQGZULWHRIIVPDGHXQGHUWKHVFKHPH – –     3UR¿WIRUWKH\HDU 77,633  3UR¿WDYDLODEOHIRU$SSURSULDWLRQV 1,20,116  /HVV$SSURSULDWLRQV  7UDQVIHUWR6SHFLDO5HVHUYH$FFRXQW 21,213   'LYLGHQGRQSUHIHUHQFHVKDUHVLQFOXGLQJGLYLGHQG 15,649  GLVWULEXWLRQWD[  'LYLGHQGGLVWULEXWLRQWD[ LQFOXGLQJWD[RQLQWHULPGLYLGHQG 4,339 41,201   GHFODUHGE\VXEVLGLDULHVWRKROGLQJFRPSDQ\ Closing Balance 78,915 42,039 (g) Foreign Currency Translation Reserve 2SHQLQJ%DODQFH 3,312  $GG(IIHFWRIIRUHLJQH[FKDQJHUDWHYDULDWLRQVGXULQJWKH 57   \HDU LQFO$VVRFLDWHVVKDUH Closing Balance 3,369 3,312 TOTAL - RESERVES AND SURPLUS 2,01,818 1,44,335 Note: 7KHDPRXQWVDSSURSULDWHGRXWRIWKHVXUSOXVLQWKH6WDWHPHQWRI3UR¿WDQG/RVVDUHDVXQGHU    `ODNK 3UHYLRXV

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018 NOTE “4” ` LQODNK

LONG-TERM BORROWINGS As at March 31, As at March 31, 2018 2017 D %RQGV'HEHQWXUHV Secured ;ŝͿ WƌŝǀĂƚĞůLJWůĂĐĞĚEŽŶͲŽŶǀĞƌƟďůĞĞďĞŶƚƵƌĞƐ;ZĞĨĞƌŶŽƚĞƐϰ͘ϭ 10,49,434  ĂŶĚϰ͘ϳďĞůŽǁͿ ΀EĞƚŽĨƵŶĂŵŽƌƟƐĞĚƉƌĞŵŝƵŵŽĨ`ϲϰůĂŬŚ;ĂƐĂƚDĂƌĐŚϯϭ͕ ϮϬϭϳ͗E/>Ϳ΁ (ii) 3XEOLF LVVXH RI 1RQ&RQYHUWLEOH 'HEHQWXUHV 5HIHU QRWHV –   EHORZ  Unsecured L  1RQ&RQYHUWLEOH6XERUGLQDWHG'HEHQWXUHV 5HIHUQRWH 2,46,064  EHORZ  >1HW RI XQDPRUWLVHG GLVFRXQW RI `  ODNK DV DW 0DUFK `ODNK @  LL  1RQ&RQYHUWLEOH3HUSHWXDO'HEHQWXUHV 5HIHUQRWH 79,300  EHORZ   LLL  3ULYDWHO\ 3ODFHG 1RQ&RQYHUWLEOH 'HEHQWXUHV 5HIHU QRWH 1,37,500  EHORZ  b. Term loans Secured  L  )URP%DQNV 5HIHUQRWHV EHORZ 2,22,625   LL  )URP1DWLRQDO+RXVLQJ%DQN 5HIHUQRWHEHORZ 5,10,688   LLL  )URP2WKHUV 5HIHUQRWHV EHORZ 30,000 ± Unsecured  L  )URP%DQNV 5HIHUQRWHEHORZ  2,10,000  Total 24,85,611 19,15,846 1RWHV  3ULYDWHO\ 3ODFHG 1RQ&RQYHUWLEOH 'HEHQWXUHV DUH VHFXUHG E\ D pari passu FKDUJH RQ WKH VSHFL¿F LPPRYDEOH SURSHUW\ VSHFL¿HG UHFHLYDEOHV DULVLQJ RXW RI ORDQ OHDVH KLUH SXUFKDVH WUDQVDFWLRQV DQGWRWKHH[WHQWRIVKRUWIDOOLQDVVHWFRYHUE\DSDULSDVVXFKDUJHRQFHUWDLQFXUUHQWDVVHWVRIWKH *URXS  3XEOLF LVVXH RI 1RQ&RQYHUWLEOH 'HEHQWXUHV DUH VHFXUHG E\ D pari passu FKDUJH RQ WKH VSHFL¿F LPPRYDEOHSURSHUW\UHFHLYDEOHVDJDLQVWXQVHFXUHGORDQVELOOVGLVFRXQWHGDQGWUDGHDGYDQFHVDQG RWKHUFXUUHQWDVVHWVRIWKH*URXS  /RDQVIURPEDQNVDQGRWKHUVDUHVHFXUHGE\pari passuFKDUJHRQWKHUHFHLYDEOHVRIWKH&RPSDQ\ WKURXJK6HFXULW\7UXVWHH  $V SHU WHUPV RI DJUHHPHQWV ORDQ IURP EDQNV DQG RWKHUV FODVVL¿HG XQGHU ORQJWHUP ERUURZLQJV VKRUWWHUP ERUURZLQJV DQG FXUUHQW OLDELOLWLHV DJJUHJDWLQJ `  ODNK 3UHYLRXV \HDU `  ODNK DUHUHSD\DEOHDWPDWXULW\UDQJLQJEHWZHHQDQGPRQWKVIURPWKHGDWHRIUHVSHFWLYHORDQ 5DWH RI ,QWHUHVW SD\DEOH RQ WHUP ORDQ YDULHV EHWZHHQ  WR  3UHYLRXV \HDU  WR    /RDQ IURP 1DWLRQDO +RXVLQJ %DQN LV VHFXUHG E\ ZD\ RI K\SRWKHFDWLRQ RI ERRN GHEW DQG LV UHSD\DEOH LQ  3UHYLRXV \HDU   TXDUWHUO\ LQVWDOOPHQWV 5DWH RI ,QWHUHVW SD\DEOH RQ 7HUP ORDQYDULHVEHWZHHQWR 3UHYLRXV\HDUWR   1R GHIDXOW KDV EHHQ PDGH LQ UHSD\PHQW RI ERUURZLQJV DQG LQWHUHVW IRU WKH \HDU HQGHG 0DUFK  

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

4.7 3DUWLFXODUVRI3ULYDWHO\3ODFHG6HFXUHG1RQ&RQYHUWLEOH'HEHQWXUHV ³1&'V´ RXWVWDQGLQJDVRQ0DUFK As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

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96 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

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97 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

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98 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

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99 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

7&)6/1&'5)< $XJ $XJ    

7&&/1&' ' )<2SWLRQ,, $XJ $XJ    

7&+)/6HULHV 2 )< $XJ $XJ    

7&)6/1&'4)< $XJ $XJ    

7&+)/6HULHV 9 )< -XO -XO    

7&+)/6HULHV < )<2SWLRQ,, -XO -XO    

7&+)/6HULHV : )< -XO -XO    

7&)6/1&' 4 )<2SWLRQ, -XO -XO    

7&)6/1&'/)< -XQ -XQ    

7&+)/6HULHV . )<2SWLRQ,9 -XQ -XQ    

7&+)/6HULHV 3 )<2SWLRQ,, -XQ -XQ    

7&+)/6HULHV 3 )<2SWLRQ, -XQ -XQ    

7&+)/6HULHV 1 )<2SWLRQ, -XQ -XQ    

7&+)/6HULHV / )< -XQ -XQ    

7&+)/6HULHV . )<2SWLRQ, -XQ -XQ    

7&+)/6HULHV . )<2SWLRQ,,, -XQ 0D\    

7&)6/1&'*)< 0D\ 0D\    

7&)6/1&'+)< 0D\ 0D\    

7&&/1&' % )<2SWLRQ,, 0D\ 0D\    

7&+)/6HULHV ) )< 0D\ 0D\    

7&)6/1&'')< 0D\ 0D\    

7&)6/1&'()< 0D\ 0D\    

7&+)/6HULHV ) )< $SU $SU    

7&+)/6HULHV & )< $SU $SU    

7&)6/1&'$)<SWLRQ, $SU $SU    

7&&/1&' $ )< $SU $SU    

7&+)/6HULHV $( )< 0DU $SU    

7&+)/6HULHV $ )<2SWLRQ,,, $SU $SU    

7&+)/6HULHV & )<2SWLRQ,,, $SU $SU    

7&)6/1&'$.)<2SWLRQ,, -DQ $SU    

7&)6/1&'$;)<2SWLRQ,, 0DU $SU    

7&+)/6HULHV 8 )< 2FW 0DU ± ±  

7&)6/1&'%))< 0DU 0DU ± ±  

7&)6/1&'-)<2SWLRQ, -XQ 0DU ± ±  

7&)6/1&'<)< 6HS 0DU ± ±  

7&)6/1&'=)< 2FW 0DU ± ±  

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

7&)6/1&'$<)<2SWLRQ, 0DU 0DU ± ±  

7&+)/6HULHV & )< $SU 0DU ± ±  

7&+)/6HULHV ' )< $SU 0DU ± ±  

7&)6/1&'$)< $SU 0DU ± ±  

7&)6/1&'()< $SU 0DU ± ±  

7&+)/6HULHV , )< -XQ 0DU ± ±  

7&)6/1&'&)< $SU 0DU ± ±  

7&+)/6HULHV $' )<2SWLRQ,, 0DU 0DU ± ±  

7&+)/6HULHV $& )<2SWLRQ,, 0DU 0DU ± ±  

7&)6/1&'$9)<2SWLRQ,, 0DU 0DU ± ±  

7&)6/1&'$7)<2SWLRQ, 0DU 0DU ± ±  

7&+)/6HULHV : )<2SWLRQ, -DQ )HE ± ±  

7&+)/6HULHV $$ )<2SWLRQ, )HE )HE ± ±  

7&)6/1&'$4)< )HE )HE ± ±  

7&+)/6HULHV < )< )HE )HE ± ±  

7&)6/1&'$3)<2SWLRQ, )HE )HE ± ±  

7&)6/1&'$1)< -DQ -DQ ± ±  

7&+)/6HULHV 8 )< -DQ -DQ ± ±  

7&)6/1&'$/)< -DQ -DQ ± ±  

7&)6/1&'$<)< -DQ -DQ ± ±  

7&)6/1&'%$)< -DQ -DQ ± ±  

7&)6/1&' $= )< -DQ -DQ ± ±  

7&)6/1&'$;)< -DQ -DQ ± ±  

7&)6/1&'$.)<2SWLRQ, -DQ -DQ ± ± 97 

7&+)/6HULHV 7 )< -DQ -DQ ± ±  

7&)6/1&'$-)< -DQ -DQ ± ±  

7&+)/6HULHV / )< -XO -DQ ± ±  

7&)6/1&'/)< -XO -DQ ± ±  

7&)6/1&'$+)<2SWLRQ,,, 'HF -DQ ± ±  

7&+)/6HULHV . )<2SWLRQ,, -XQ -DQ ± ±  

7&)6/1&'.)< -XQ 'HF ± ±  

7&+)/6HULHV $2 )< 'HF 'HF ± ±  

7&)6/1&'-)<2SWLRQ,, -XQ 'HF ± ±  

7&)6/1&'$))<2SWLRQ,,, 'HF 'HF ± ±  

7&+)/6HULHV $1 )< 'HF 'HF ± ±  

7&)6/1&'$6)< 'HF 'HF ± ±  

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

7&)6/1&'$%)<2SWLRQ,,, 1RY 1RY ± ±   7&)6/1&'$%)<2SWLRQ,, 1RY 1RY ± ±   7&+)/6HULHV 0 )<2SWLRQ,, 1RY 1RY ± ±   7&)6/1&';)<2SWLRQ,, 1RY 1RY ± ±   7&+)/6HULHV 2 )< 1RY 1RY ± ±   7&+)/6HULHV 1 )< 1RY 1RY ± ±   7&)6/1&'<)< 1RY 1RY ± ±   7&)6/1&'$%)<2SWLRQ, 1RY 1RY ± ±   7&)6/1&'=)< 1RY 1RY ± ±   7&+)/6HULHV - )<2SWLRQ,, 1RY 1RY ± ±   7&)6/1&'$4)< 1RY 1RY ± ±   7&)6/1&':)< 1RY 1RY ± ±   7&)6/1&'$-)< 1RY 1RY ± ±   7&&/1&' * )< 1RY 1RY ± ±   7&+)/6HULHV . )< 1RY 1RY ± ±   7&+)/6HULHV $- )< 2FW 2FW ± ±   7&)6/1&'8)< 2FW 2FW ± ±   7&)6/1&'9)< 2FW 2FW ± ±   7&)6/1&'7)<2SWLRQ,,, 2FW 2FW ± ±   7&)6/1&'6)<2SWLRQ, 2FW 2FW ± ±   7&)6/1&'5)<2SWLRQ,,, 6HS 6HS ± ±   7&)6/1&'5)<2SWLRQ,, 6HS 6HS ± ±   7&)6/1&' 8 )< 6HS 6HS ± ±   7&)6/1&'6)<2SWLRQ9 2FW 6HS ± ±   7&)6/1&'7)<2SWLRQ9 2FW 6HS ± ±   7&)6/1&'7)<2SWLRQ, 2FW 6HS ± ±   7&)6/1&'$*)< 6HS 6HS ± ±   7&)6/1&'0)< -XO 6HS ± ±   7&)6/1&'0)< 6HS 6HS ± ±   7&)6/1&'/)<2SWLRQ, 6HS 6HS ± ±   7&)6/1&'5)< $XJ $XJ ± ±   7&+)/6HULHV ' )<2SWLRQ, $XJ $XJ ± ±   7&)6/1&'0)<3DUWLDO $XJ $XJ ± ±   Redemption

7&)6/1&'+)< -XQ $XJ ± ±   7&)6/1&'$()< $XJ $XJ ± ±   7&+)/6HULHV & )<2SWLRQ,, $XJ $XJ ± ±  

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs

7&&/1&' ' )<2SWLRQ, $XJ $XJ ± ±  

7&)6/1&' 5 )< -XO -XO ± ±  

7&+)/6HULHV % )<2SWLRQ, -XO -XO ± ±  

7&)6/1&'+)<2SWLRQ, 0D\ -XO ± ±  

7&+)/6HULHV 8 )< -XO -XO ± ±  

7&)6/1&'))< -XO -XO ± ±  

7&)6/1&'&)<2SWLRQ, -XO -XO ± ±  

7&+)/6HULHV 6 )<2SWLRQ,, -XO -XO ± ±  

7&)6/1&' 2 )<2SWLRQ,, -XO -XO ± ±  

7&)6/1&' 3 )< -XO -XO ± ±  

7&+)/6HULHV 5 )< -XO -XQ ± ±  

7&+)/6HULHV 4 )<2SWLRQ,, -XQ -XQ ± ±  

7&+)/6HULHV 6 )<2SWLRQ, -XO -XQ ± ±  

7&)6/1&'0)<2SWLRQ, -XQ -XQ ± ±  

7&)6/1&'0)<2SWLRQ,, -XQ -XQ ± ±  

7&)6/1&'0)<2SWLRQ,,, -XQ -XQ ± ±  

7&)6/1&' 2 )<2SWLRQ, -XO -XQ ± ±  

7&+)/6HULHV - )<2SWLRQ,, 0D\ -XQ ± ±  

7&+)/6HULHV 4 )<2SWLRQ, -XQ -XQ ± ±  

7&)6/1&'+)<2SWLRQ9 0D\ -XQ ± ± 187 

7&)6/1&',)<2SWLRQ9 0D\ -XQ ± ± 67 

7&+)/6HULHV $ )<2SWLRQ,,, -XQ -XQ ± ±  

7&)6/1&'.)< -XQ -XQ ± ±  

7&+)/6HULHV 1 )<2SWLRQ,, -XQ -XQ ± ±  

7&+)/6HULHV ( )<2SWLRQ,,, $SU -XQ ± ±  

7&)6/1&'&)<237,21,9 $SU -XQ ± ±  

7&)6/1&'+)<2SWLRQ9, 0D\ -XQ ± ±  

7&)6/1&',)<2SWLRQ, 0D\ -XQ ± ±  

7&+)/6HULHV , )<2SWLRQ, 0D\ 0D\ ± ±  

7&)6/1&'*)<2SWLRQ, 0D\ 0D\ ± ±  

7&)6/1&'-)<2SWLRQ,, 0D\ 0D\ ± ±  

7&)6/1&'+)<2SWLRQ,9 0D\ 0D\ ± ±  

7&)6/1&'%)< $SU 0D\ ± ±  

7&)6/1&'+)<2SWLRQ,, 0D\ 0D\ ± ±  

7&&/1&' % )<2SWLRQ, 0D\ 0D\ ± ±  

7&)6/1&',)<2SWLRQ,, 0D\ 0D\ ± ±  

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As on March 31, 2018* As on March 31, 2017* Redemption Description of NCDs Issue Date Number of Number of Date ` LQODNK ` LQODNK NCDs NCDs 7&)6/1&'+)<2SWLRQ9,,, 0D\ 0D\ ± ±   7&)6/1&'+)<2SWLRQ,,, 0D\ 0D\ ± ±   7&+)/6HULHV * )<2SWLRQ,,, 0D\ 0D\ ± ± 167  7&+)/6HULHV $ )<2SWLRQ, -XQ 0D\ ± ±   7&+)/6HULHV + )< 0D\ 0D\ ± ±   7&)6/1&'$8)<2SWLRQ,,, 0DU 0D\ ± ±   7&+)/6HULHV & )<2SWLRQ,, $SU $SU ± ±   7&+)/6HULHV , )<2SWLRQ,, 0D\ $SU ± ±   7&+)/6HULHV - )<2SWLRQ, 0D\ $SU ± ±   7&)6/1&'*)<2SWLRQ,, 0D\ $SU ± ±   7&+)/6HULHV $ )<2SWLRQ9 $SU $SU ± ±   7&+)/6HULHV $ )<2SWLRQ9, $SU $SU ± ±   7&+)/6HULHV ( )<2SWLRQ,, $SU $SU ± ±   7&+)/6HULHV * )<2SWLRQ, 0D\ $SU ± ±   7&)6/1&'&)<237,21,,, $SU $SU ± ±   7&+)/6HULHV $ )<2SWLRQ,, $SU $SU ± ±   7&+)/6HULHV ' )<2SWLRQ,, $SU $SU ± ±   7&+)/6HULHV $ )<2SWLRQ,9 $SU $SU ± ±   7&)6/1&'&)<237,21,, $SU $SU ± ±   7&+)/6HULHV $ )<2SWLRQ, $SU $SU ± ±   7&)6/1&'&)<237,21, $SU $SU ± ±   7&+)/6HULHV * )<2SWLRQ,, 0D\ $SU ± ± 88  7&)6/1&'')<237,21,, $SU $SU ± ± 88  7&+)/6HULHV $' )<2SWLRQ, 0DU $SU ± ±   7&+)/6HULHV % )< $SU $SU ± ± 117  7&)6/1&'$)< $SU $SU ± ±   7&)6/1&'+)<2SWLRQ9,, 0D\ $SU ± ±   7&+)/6HULHV $% )< 0DU $SU ± ±   7&)6/1&'$8)<2SWLRQ, 0DU $SU ± ±   7&)6/1&'')<237,21,9 $SU $SU ± ±   7&+)/6HULHV & )<2SWLRQ, $SU $SU ± ±   7&+)/6HULHV ' )<2SWLRQ, $SU $SU ± ±   7&+)/6HULHV ( )<2SWLRQ, $SU $SU ± ±   7&)6/1&'')<237,21, $SU $SU ± ±   7&)6/1&'')<237,21,,, $SU $SU ± ±   TOTAL 15,63,954 17,04,260 2IZKLFKFXUUHQWPDWXULWLHVFODVVL¿HGXQGHU&XUUHQWOLDELOLWLHV´LQQRWH (5,14,520) (9,14,220) TOTAL 10,49,434 7,90,040 * 1HWRIXQDPRUWLVHGSUHPLXPRI`ODNK 3UHYLRXV

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

4.8 3DUWLFXODUVRI3XEOLFLVVXHRI6HFXUHG1RQ&RQYHUWLEOH'HEHQWXUHVRXWVWDQGLQJDVRQ0DUFK Number of Description of NCD Issue Date Redemption Date `LQODNK NCDs 7&)6/1&'2SWLRQ,  0DUFK 0DUFK   7&)6/1&'2SWLRQ,,  0DUFK 0DUFK   7&)6/1&'2SWLRQ,,,  0DUFK 0DUFK   7&)6/1&'2SWLRQ,9  0DUFK 0DUFK   Total 28,818 2IZKLFKFXUUHQWPDWXULWLHVFODVVL¿HGXQGHU³&XUUHQWOLDELOLWLHV´LQQRWH (28,818) Total – Note : &RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR 3DUWLFXODUVRI3XEOLFLVVXHRI6HFXUHG1RQ&RQYHUWLEOH'HEHQWXUHVRXWVWDQGLQJDVRQ0DUFK Number of Description of NCD Issue Date Redemption Date `LQODNK NCDs 7&)6/1&'2SWLRQ,  0DUFK 0DUFK   7&)6/1&'2SWLRQ,,  0DUFK 0DUFK   7&)6/1&'2SWLRQ,,,  0DUFK 0DUFK   7&)6/1&'2SWLRQ,9  0DUFK 0DUFK   Total 28,818 Note :&RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR 4.93DUWLFXODUV RI XQVHFXUHG UHGHHPDEOH QRQFRQYHUWLEOH VXERUGLQDWHG GHEHQWXUHV 7LHU ,, %RQGV  RXWVWDQGLQJDVRQ0DUFK Redemption Number of Description of NCD Issue Date `LQODNK Date NCDs 7&)6/7LHU,,%RQG³%´)< 2FW 2FW   7&)6/7LHU,,%RQG³$´)< $XJ $XJ   7&+)/7LHU,,%RQGVµ$¶)< $XJ $XJ   7&)6/7LHU,,%RQGµ%¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ+¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ*¶)< 'HF 'HF   7&+)/7LHU,,%RQGVµ)¶)< 'HF 'HF   7&+)/7LHU,,%RQGVµ(¶)< 1RY 1RY   7&+)/7LHU,,%RQGVµ'¶)< 6HS 6HS   7&+)/7LHU,,%RQGVµ&¶)< 6HS 6HS   7&+)/7LHU,,%RQGVµ%¶)< -XO -XO   7&)6/7LHU,,%RQGµ$¶)< -XO -XO   7&+)/7LHU,,%RQGVµ$¶)< $SU $SU   7&)6/7LHU,,%RQGµ'¶)< 0DU 0DU   7&)6/7LHU,,%RQGµ&¶)< -DQ -DQ   7&)6/7LHU,,%RQGµ%¶)< -DQ -DQ   7&+)/7LHU,,%RQGVµ$¶)< 6HS 6HS   7&)6/7LHU,,%RQGµ$¶)< 6HS 6HS  

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

Redemption Number of Description of NCD Issue Date `LQODNK Date NCDs 7&+)/7LHU,,%RQGVµ(¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ'¶)< -DQ -DQ 77  7&+)/7LHU,,%RQGVµ&¶)< 0D\ 0D\   7&+)/7LHU,,%RQGVµ%¶)< $SU $SU   7&+)/7LHU,,%RQGVµ$¶)< $SU $SU   7&+)/7LHU,,%RQGVµ(¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ'¶)< $XJ $XJ   7&+)/7LHU,,%RQGVµ&¶)< 0D\ 0D\   7&+)/7LHU,,%RQGVµ%¶)< 0D\ 0D\ 3  7&+)/7LHU,,%RQGVµ$¶)< $SU 0D\   7&+)/7LHU,,%RQGVµ)¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ(¶)< -DQ -DQ   7&+)/7LHU,,%RQGVµ'¶)< 2FW 1RY   7&+)/7LHU,,%RQGVµ&¶)< 2FW 2FW 11  7&+)/7LHU,,%RQGVµ%¶)< 6HS 6HS   7&+)/7LHU,,%RQGVµ$¶)< -XO -XO   7&/7LHU,,%RQGµ+¶)< 'HF 'HF   7&/7LHU,,%RQGµ*¶)< 'HF 'HF   7&/7LHU,,%RQGµ(¶)< 'HF 'HF   7&/7LHU,,%RQG))< 1RY 1RY   7&/7LHU,,%RQGµ'¶)< 2FW 2FW   7&/7LHU,,%RQGµ&¶)< 2FW 2FW   7&/7LHU,,%RQGµ%¶)< 6HS 6HS   7&/7LHU,,%RQGµ$¶)< $XJ $XJ 391  Total 2,46,064 1HWRIXQDPRUWLVHGGLVFRXQWRI`ODNK 1RWH&RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR WĂƌƟĐƵůĂƌƐŽĨƵŶƐĞĐƵƌĞĚƌĞĚĞĞŵĂďůĞŶŽŶͲĐŽŶǀĞƌƟďůĞƐƵďŽƌĚŝŶĂƚĞĚĚĞďĞŶƚƵƌĞƐ;dŝĞƌ//ŽŶĚƐͿŽƵƚƐƚĂŶĚŝŶŐ ĂƐŽŶDĂƌĐŚϯϭ͕ϮϬϭϳ Number of Description of NCD Issue Date Redemption Date `LQODNK NCDs 7&)6/7LHU,,%RQG³%´)< 2FW 2FW   7&)6/7LHU,,%RQG³$´)< $XJ $XJ   7&+)/7LHU,,%RQGVµ$¶)< $XJ $XJ   7&)6/7LHU,,%RQGµ%¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ+¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ*¶)< 'HF 'HF   7&+)/7LHU,,%RQGVµ)¶)< 'HF 'HF   7&+)/7LHU,,%RQGVµ(¶)< 1RY 1RY  

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

7&+)/7LHU,,%RQGVµ'¶)< 6HS 6HS   7&+)/7LHU,,%RQGVµ&¶)< 6HS 6HS   7&+)/7LHU,,%RQGVµ%¶)< -XO -XO   7&)6/7LHU,,%RQGµ$¶)< -XO -XO   7&+)/7LHU,,%RQGVµ$¶)< $SU $SU   7&)6/7LHU,,%RQGµ'¶)< 0DU 0DU   7&)6/7LHU,,%RQGµ&¶)< -DQ -DQ   7&)6/7LHU,,%RQGµ%¶)< -DQ -DQ   7&+)/7LHU,,%RQGVµ$¶)< 6HS 6HS   7&)6/7LHU,,%RQGµ$¶)< 6HS 6HS   7&+)/7LHU,,%RQGVµ(¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ'¶)< -DQ -DQ 77  7&+)/7LHU,,%RQGVµ&¶)< 0D\ 0D\   7&+)/7LHU,,%RQGVµ%¶)< $SU $SU   7&+)/7LHU,,%RQGVµ$¶)< $SU $SU   7&+)/7LHU,,%RQGVµ(¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ'¶)< $XJ $XJ   7&+)/7LHU,,%RQGVµ&¶)< 0D\ 0D\   7&+)/7LHU,,%RQGVµ%¶)< 0D\ 0D\ 3  7&+)/7LHU,,%RQGVµ$¶)< 0D\ 0D\   7&+)/7LHU,,%RQGVµ)¶)< 0DU 0DU   7&+)/7LHU,,%RQGVµ(¶)< -DQ -DQ   7&+)/7LHU,,%RQGVµ'¶)< 1RY 1RY   7&+)/7LHU,,%RQGVµ&¶)< 2FW 2FW 11  7&+)/7LHU,,%RQGVµ%¶)< 6HS 6HS   7&+)/7LHU,,%RQGVµ$¶)< -XO -XO   7&/7LHU,,%RQGµ+¶)< 'HF 'HF   7&/7LHU,,%RQGµ*¶)< 'HF 'HF   7&/7LHU,,%RQGµ(¶)< 'HF 'HF   7&/7LHU,,%RQG))< 1RY 1RY   7&/7LHU,,%RQGµ'¶)< 2FW 2FW   7&/7LHU,,%RQGµ&¶)< 2FW 2FW   7&/7LHU,,%RQGµ%¶)< 6HS 6HS   7&/7LHU,,%RQGµ$¶)< $XJ $XJ 391  Total 2,45,616

 1HWRIXQDPRUWLVHGGLVFRXQWRI`/DNK

1RWH&RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

4.10 3DUWLFXODUVRIXQVHFXUHGQRQFRQYHUWLEOHSHUSHWXDOGHEHQWXUHVRXWVWDQGLQJDVRQ0DUFK

Description of NCD Issue Date Number of NCDs `LQODNK 7&/3HUSHWXDOµ$¶)< 1RY   7&/3HUSHWXDOµ%¶)< -DQ 18  7&/3HUSHWXDOµ$¶)< 0D\   7&/3HUSHWXDOµ%¶)< $XJ 61  7&/3HUSHWXDOµ&¶)< 6HS   7&/3HUSHWXDOµ'¶)< 1RY   7&)6/3HUSHWXDOµ$¶)< 0DU   7&)6/3HUSHWXDOµ$¶)< -XO   7&)6/3HUSHWXDOµ%¶)< -DQ   7&)6/3HUSHWXDOµ&¶)< )HE   7&)6/3HUSHWXDOµ'¶)< )HE   7&)6/3HUSHWXDOµ(¶)< 0DU   7&)6/3HUSHWXDOµ$¶)< -XQ   7&)6/3HUSHWXDOµ%¶)< -DQ   7&)6/3HUSHWXDOµ&¶)< 0DU   7&)6/3HUSHWXDOµ$¶)< -XQ   7&)6/3HUSHWXDOµ%¶)< -XO   7&)6/3HUSHWXDOµ&¶)< 6HS   Total 79,300

Note :&RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR 3DUWLFXODUVRIXQVHFXUHGQRQFRQYHUWLEOHSHUSHWXDOGHEHQWXUHVRXWVWDQGLQJDVRQ0DUFK Description of NCD Issue Date Number of NCDs `LQODNK 7&/3HUSHWXDO$)< 1RY   7&/3HUSHWXDO%)< -DQ 18  7&/3HUSHWXDO$)< 0D\   7&/3HUSHWXDO%)< $XJ 61  7&/3HUSHWXDO&)< 6HS   7&/3HUSHWXDO')< 1RY   7&)6/3HUSHWXDO$)< 0DU   7&)6/3HUSHWXDO$)< -XO   7&)6/3HUSHWXDO%)< -DQ   7&)6/3HUSHWXDO&)< )HE   7&)6/3HUSHWXDO')< )HE   7&)6/3HUSHWXDO()< 0DU   7&)6/3HUSHWXDOµ%¶)< -DQ   7&)6/3HUSHWXDOµ&¶)< 0DU   Total 55,000

Note :1RWH&RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

Particulars for perpetual debt in respect of a wholly owned Year Ended Year Ended subsidiary company * March 31, 2018 March 31, 2017 )XQGV UDLVHG GXULQJ WKH \HDU WKURXJK 3HUSHWXDO 'HEW   ,QVWUXPHQWV $PRXQWRXWVWDQGLQJDWWKHHQGRI\HDU   3HUFHQWDJH RI DPRXQW RI 3HUSHWXDO 'HEW ,QVWUXPHQWV RI   WKH DPRXQW RI 7LHU , &DSLWDO RI WKH ZKROO\ RZQHG VXEVLGLDU\ company * )LQDQFLDO\HDULQZKLFKLQWHUHVWRQ3HUSHWXDO'HEW,QVWUXPHQWV 1$ LVQRWSDLGRQDFFRXQWRIµ/RFN,Q&ODXVH¶ 7DWD&DSLWDO)LQDQFLDO6HUYLHV/LPLWHG

4.113DUWLFXODUV RI 3ULYDWHO\ 3ODFHG XQVHFXUHG QRQFRQYHUWLEOH GHEHQWXUHV ³1&'V´  RXWVWDQGLQJ DV RQ 0DUFK

Description of NCD Issue Redemption Number of `LQODNK Date Date NCDs 7&/8QVHFXUHG1&'')< 6HS 0DU   7&/8QVHFXUHG1&'')<2SWLRQ,, $XJ $XJ   7&)6/8QVHFXUHG1&'$)< -XQ -XQ   7&/8QVHFXUHG1&'&)< -XQ -XQ   7&/8QVHFXUHG1&'%)< 0D\ 0D\   7&/8QVHFXUHG1&'$)< $SU $SU   7&/8QVHFXUHG1&'')<2SWLRQ, $XJ $XJ   7&)6/8QVHFXUHG1&'³$´)< $XJ $XJ   7&/8QVHFXUHG1&'&)< -XO -XO   7&/8QVHFXUHG1&'%)< -XO -XO   7&/8QVHFXUHG1&'$)< -XQ -XQ   7&)6/8QVHFXUHG1&'%)< $SU $SU   7&)6/8QVHFXUHG1&'$)< $SU $SU   Total 2,80,000 2IZKLFKFXUUHQWPDWXULWLHVFODVVL¿HGXQGHU³&XUUHQWOLDELOLWLHV´LQQRWH (1,42,500) Total 1,37,500

Note :1RWH&RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

3DUWLFXODUV RI 3ULYDWHO\ 3ODFHG XQVHFXUHG QRQFRQYHUWLEOH GHEHQWXUHV ³1&'V´  RXWVWDQGLQJ DV RQ 0DUFK

Description of NCD Issue Date Redemption Number of `LQODNK Date NCDs 7&/8QVHFXUHG1&'')<2SWLRQ,, $XJ $XJ   7&/8QVHFXUHG1&'')<2SWLRQ, $XJ $XJ   7&)6/8QVHFXUHG1&'$)< $XJ $XJ   7&/8QVHFXUHG1&'&)< -XO -XO   7&/8QVHFXUHG1&'%)< -XO -XO   7&/8QVHFXUHG1&'$)< -XQ -XQ   7&)6/8QVHFXUHG1&'%)< $SU $SU   7&)6/8QVHFXUHG1&'$)< $SU $SU   7&)6/8QVHFXUHG1&'%)<2SWLRQ, 6HS 6HS   Total 1,60,000 2IZKLFKFXUUHQWPDWXULWLHVFODVVL¿HGXQGHU³&XUUHQWOLDELOLWLHV´LQQRWH (15,000) Total 1,45,000 1RWH&RXSRQUDWHRIDERYHRXWVWDQGLQJDVRQ0DUFKYDULHVIURPWR 4.12 8QVHFXUHGUHGHHPDEOHQRQFRQYHUWLEOHVXERUGLQDWHGGHEHQWXUHVLQ FOXGHVWKHGHEHQWXUHVLVVXHGWR .H\0DQDJHPHQW3HUVRQQHO` /DNK 3UHYLRXV

NOTE “5” `LQODNK As at As at OTHER LONG-TERM LIABILITIES March 31, 2018 March 31, 2017 D  3UHPLXPRQUHGHPSWLRQSD\DEOHWRSUHIHUHQFH  VKDUHKROGHUV 10,355  E  2WKHUV  L  ,QWHUHVWDFFUXHGEXWQRWGXHRQERUURZLQJV 426   LL  ,QFRPHUHFHLYHGLQDGYDQFH 193   LLL  3D\DEOH)RU&DSLWDO([SHQGLWXUH 205 ±  LY  6XQGU\OLDELOLWLHVDFFRXQW LQWHUHVWFDSLWDOLVDWLRQ 250  Total 11,429 17,537

NOTE “6” `LQODNK As at As at LONG-TERM PROVISIONS March 31, 2018 March 31, 2017 D  3URYLVLRQIRUHPSOR\HHEHQH¿WV 1,562  E  &RQWLQJHQW3URYLVLRQDJDLQVW6WDQGDUG$VVHWV 5HIHUQRWH 17,004  F  3URYLVLRQIRUGRXEWIXOORDQVDQGFUHGLWVXEVWLWXWHV 32,651  G  3URYLVLRQIRUUHVWUXFWXUHGORDQVDQGDGYDQFHV 108  Total 51,325 53,389

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “7” `LQODNK

As at As at SHORT-TERM BORROWINGS March 31, 2018 March 31, 2017 D  Loans repayable on demand Secured L  )URP%DQNV   :RUNLQJ FDSLWDO GHPDQG ORDQ 5HIHU QRWHV  3,00,400  DERYHDQGEHORZ   %DQN2YHUGUDIW 5HIHUQRWHDERYH 3,42,064  Unsecured L  )URP%DQNV   :RUNLQJ FDSLWDO GHPDQG ORDQ 5HIHU QRWH  45,000  EHORZ   %DQN2YHUGUDIW 36,739  E  Term Loans Secured L  )URP%DQNV 39,500  LL  )URP2WKHUV 10,000  Unsecured L  )URP%DQNV 1,22,500 ± F  Deposits Unsecured ,QWHU&RUSRUDWH'HSRVLWV 5HIHUQRWHEHORZ  11,000  G  Other Loans Unsecured &RPPHUFLDO3DSHUV 5HIHUQRWHEHORZ 10,32,186  >1HWRIXQDPRUWLVHGGLVFRXQWRI`ODNK DVDW0DUFK `ODNK @ Total 19,39,389 14,53,050 Notes  'LVFRXQWRQ&RPPHUFLDO3DSHUVYDULHVEHWZHHQWR 3UHYLRXV\HDUWR  5DWH RI LQWHUHVW SD\DEOH RQ :&'/ YDULHV EHWZHHQ  WR  3UHYLRXV

NOTE “8” `LQODNK As at As at TRADE PAYABLES March 31, 2018 March 31, 2017 D  $FFUXHGH[SHQVHV 25,363  E  3D\DEOHWRGHDOHUVYHQGRUV 31,326  F  2WKHUV 3,060  Total 59,749 54,163

111 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

Note - 7KH LQIRUPDWLRQ DV UHTXLUHG WR EH GLVFORVHG XQGHU WKH 0LFUR 6PDOO DQG 0HGLXP (QWHUSULVHV 'HYHORSPHQW$FWKDVEHHQGHWHUPLQHGWRWKHH[WHQWVXFKSDUWLHVKDYHEHHQLGHQWL¿HGRQWKHEDVLV RI LQIRUPDWLRQ DYDLODEOH ZLWK WKH &RPSDQ\ 7KH DPRXQW RI SULQFLSDO DQG LQWHUHVW RXWVWDQGLQJ GXULQJ WKH \HDULVJLYHQEHORZ NOTE “8(a)” : Total outstanding dues of micro enterprises and small enterprises `LQODNK As at As at Particulars March 31, 2018 March 31, 2017 D  $PRXQWVRXWVWDQGLQJEXWQRWGXHDVDW\HDUHQG – ± E  $PRXQWVGXHEXWXQSDLGDVDW\HDUHQG – ± F  $PRXQWVSDLGDIWHUDSSRLQWHGGDWHGXULQJWKH\HDU – ± G  $PRXQWRILQWHUHVWDFFUXHGDQGXQSDLGDVDW\HDUHQG – ± H  7KHDPRXQWRIIXUWKHULQWHUHVWGXHDQGSD\DEOHHYHQLQWKH – ± VXFFHHGLQJ\HDU Total ––

NOTE “9” `LQODNK As at As at OTHER CURRENT LIABILITIES March 31, 2018 March 31, 2017 D  Current maturities of long-term debt (i) Inter Corporate Deposits (Refer note 7.3 above) 2,415  (ii) Debentures Secured 3ULYDWHO\3ODFHGQRQFRQYHUWLEOHGHEHQWXUHV 5HIHU 5,14,520  QRWHVDQGDERYH 3XEOLFLVVXHRI1RQ&RQYHUWLEOH'HEHQWXUHV 5HIHU 28,818 ± QRWHV DERYH Unsecured 3ULYDWHO\3ODFHGQRQFRQYHUWLEOHGHEHQWXUHV 5HIHU 1,42,500  QRWHDERYH (iii) Term Loans Secured   )URP%DQNV 5HIHUQRWHV DERYH 71,097    )URP1DWLRQDO+RXVLQJ%DQN 5HIHUQRWHDERYH 56,687  Unsecured   )URP%DQNV 5HIHUQRWHDERYH 90,000  E  ,QWHUHVWDFFUXHGEXWQRWGXHRQERUURZLQJV 1,13,317  F  $FFUXHG(PSOR\HH%HQH¿WH[SHQVHV 11,490  G  ,QFRPHUHFHLYHGLQDGYDQFH 4,748  H  8QFODLPHGGHEHQWXUHDSSOLFDWLRQPRQH\DQGLQWHUHVW 53  DFFUXHGWKHUHRQ I  2WKHUSD\DEOHV L  6HFXULW\GHSRVLWV 31,720  LL  6WDWXWRU\GXHV 5,227  LLL  3D\DEOHVIRUFDSLWDOH[SHQGLWXUH 1,647 919 LY  $PRXQWVSD\DEOHDVVLJQHGORDQV 5,540  Y  $GYDQFHVIURPFXVWRPHUV 2,271  YL  2WKHU0LVFHOODQHRXVSD\DEOHV 1,468  J  6XQGU\OLDELOLWLHVDFFRXQW LQWHUHVWFDSLWDOLVDWLRQ 450  Total 10,83,968 12,67,533

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “10” `LQODNK As at As at SHORT-TERM PROVISIONS March 31, 2018 March 31, 2017 D  3URYLVLRQIRUHPSOR\HHEHQH¿WV 420  E  3URYLVLRQ2WKHUV  L  &RQWLQJHQW3URYLVLRQDJDLQVW6WDQGDUG$VVHWV 5HIHUQRWH 10,052   LL  3URYLVLRQ IRU WD[ >1HW RI DGYDQFH WD[ RI `  ODNK 12,802  DVDW0DUFK`ODNK @  LLL  3URYLVLRQIRUGRXEWIXOORDQVDQGFUHGLWVXEVWLWXWHV 72,381   LY  3URYLVLRQIRUUHVWUXFWXUHGORDQVDQGDGYDQFHV 35  Total 95,690 1,09,613

NOTE “11” : `LQODNK *URVV%ORFN Accumulated depreciation and amortisation Net PROPERTY, Closing Closing Carrying Opening Written off balance as Opening 'HSUHFLDWLRQ Other balance as Amount As PLANT AND balance as at Additions 'HOHWLRQV during the balance as at Amortisation Deletions EQUIPMENT Adjustments at March 31, Adjustments at March 31, at March April 1, 2017 year 2018 April 1, 2017 for the year 2018 31, 2018 TANGIBLE FIXED ASSETS 16,462 160 66 – 16,556 3,311 662 17 – 3,956 12,600 %XLOGLQJV 16,511 – 49 – 16,462 2,684 658 31 – 3,311 13,151 /HDVHKROG 4,292 557 231 – 4,618 2,231 663 181 (3) 2,710 1,908 ,PSURYHPHQWV 4,799 501 1,008 – 4,292 2,638 534 939 (2) 2,231 2,061 2,227 221 64 – 2,384 1,183 232 49 – 1,366 1,018 )XUQLWXUH )L[WXUHV 2,193 263 229 – 2,227 1,083 269 169 – 1,183 1,044 &RPSXWHU 2,935 1,368 145 – 4,158 1,080 757 132 – 1,705 2,453 (TXLSPHQW 1,326 1,732 123 – 2,935 829 374 123 – 1,080 1,855 2,620 294 200 – 2,714 1,922 318 182 1 2,059 655 2I¿FH(TXLSPHQW 2,334 445 159 – 2,620 1,790 262 127 (3) 1,922 698 791 51 21 – 821 365 86 16 – 435 386 3ODQW 0DFKLQHU\ 921 27 157 – 791 397 93 125 – 365 426 1,287 173 238 – 1,222 664 251 186 – 729 493 9HKLFOHV 1,331 385 429 – 1,287 757 287 380 – 664 623 $66(76*,9(181'(523(5$7,1*/($6(5(17$/ 2,538 – – – 2,538 368 102 – – 470 2,068 %XLOGLQJV 2,538 – – – 2,538 266 102 – – 368 2,170 &RQVWUXFWLRQ 24,047 1,788 7,602 – 18,233 9,748 2,826 3,919 – 8,655 9,578 (TXLSPHQW 22,843 1,435 231 – 24,047 6,905 2,894 51 – 9,748 14,299 3,497 1,913 2,210 – 3,200 1,916 897 1,266 – 1,547 1,653 9HKLFOHV 4,769 793 2,065 – 3,497 2,797 798 1,679 – 1,916 1,581 25,966 12,323 1,453 – 36,836 4,347 6,515 322 – 10,540 26,296 3ODQW 0DFKLQHU\ 13,642 12,432 108 – 25,966 2,153 2,214 20 – 4,347 21,619 &RPSXWHU 21,867 3,225 2,431 – 22,661 8,967 7,153 1,894 – 14,226 8,435 (TXLSPHQW 22,812 7,423 8,368 – 21,867 8,222 4,687 3,942 – 8,967 12,900 1,046 123 – – 1,169 212 296 – – 508 661 )XUQLWXUH )L[WXUHV 635 411 – – 1,046 126 86 – – 212 834 2,711 204 229 – 2,686 1,466 792 224 – 2,034 652 2I¿FH(TXLSPHQW 2,607 299 195 – 2,711 862 769 165 – 1,466 1,245 16,019 124 – – 16,143 1,186 2,580 – – 3,766 12,377 5DLOZD\:DJRQV 8,265 7,754 – – 16,019 223 963 – – 1,186 14,833 (OHFWULFDO 1,176 12 – – 1,188 114 228 – – 342 846 ,QVWDOODWLRQ  289 887 – – 1,176 2 112 – – 114 1,062 (TXLSPHQWV TANGIBLE 1,29,481 22,536 14,890 – 1,37,127 39,080 24,358 8,388 (2) 55,048 82,079 ASSETS - TOTAL 1,07,815 34,787 13,121 – 1,29,481 31,734 15,102 7,751 (5) 39,080 90,401 INTANGIBLE ASSETS (Acquired) 1,114–1,114–––––––– *RRGZLOO 8,714 – – 7,600  – –– – ±  2,342 1,700 170 – 3,872 1,229 463 134 – 1,558 2,314 6RIWZDUH 1,879 480 17 –  952 292 15 –   7UDGLQJ5LJKWVLQ 228 ––– 228 228 – – – 228 – %6( 228 – – –  228 – – ± 228 – INTANGIBLE 3,684 1,700 1,284 – 4,100 1,457 463 134 – 1,786 2,314 ASSETS - TOTAL 10,821 480 17 7,600 3,684 1,180 292 15 – 1,457 2,227 TANGIBLE & 1,33,165 24,236 16,174 – 1,41,227 40,537 24,821 8,522 (2) 56,834 84,393 INTANGIBLE 1,18,636 35,267 13,138 7,600 1,33,165 32,914 15,394 7,766 (5) 40,537 92,628 ASSETS - TOTAL 275 &DSLWDOZRUNLQSURJUHVV 656 764 Intangible assets under development 997 – Accumulated Impairment on Goodwill (1,114) 85,432 TOTAL 93,167

113 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

Note :   3UHYLRXV\HDU¿JXUHVDUHJLYHQLQ,WDOLFV    'XULQJ WKH \HDU HQGHG 0DUFK   JURVV EORFN DPRXQWLQJ WR `  ODNK DQG DFFXPXODWHG GHSUHFLDWLRQ DPRXQWLQJ WR `  ODNK ZHUH VROG RII GXH WR VDOH RI VXEVLGLDULHV$FFRUGLQJO\LPSDLUPHQWRI`ZDVDOVRUHYHUVHG 5HIHUQRWH *RRGZLOOLQFOXGHGDVLQWDQJLEOHDVVHWVLVRWKHUWKDQWKDWDULVLQJRQDFFRXQWRIFRQVROLGDWLRQ

NOTE “12” `LQODNK As at As at GOODWILL ON CONSOLIDATION March 31, 2018 March 31, 2017 *RRGZLOORQ&RQVROLGDWLRQ –  /HVV$GMXVWPHQWSXUVXDQWWR5HGXFWLRQRI6KDUH&DSLWDO 5HIHU –  QRWH Total –– NOTE “13” INVESTMENTS `LQODNK As at March 31, 2018 As at March 31, 2017 Current Current Particulars Non-Current portion of Non-Current portion of Investments Non-Current Investments Non-Current Investments Investments NON-CURRENT INVESTMENTS Investments in Associates Unquoted : &DUU\LQJDPRXQWRILQYHVWPHQWVLQ 45,731 –  ± DVVRFLDWHV 5HIHUQRWH ,QYHVWPHQWLQ6HFXULW\5HFHLSWV –– ± Investments in Others Quoted : ,QYHVWPHQWLQ(TXLW\6KDUHV 21,041 7,000  ± ,QYHVWPHQWLQ'HEHQWXUHV 19,831 ±   ,QYHVWPHQWLQ0XWXDO)XQGV 50 –  ± Unquoted : ,QYHVWPHQWLQ(TXLW\6KDUHV 23,587 12,020  ± ,QYHVWPHQWLQ3UHIHUHQFH6KDUHV 9,008 –   ,QYHVWPHQWLQ0XWXDO)XQGV 1,503 –  ± ,QYHVWPHQWLQ9HQWXUH&DSLWDO)XQG 4,031 –  ± ,QYHVWPHQWLQ6HFXULW\5HFHLSWV 395 – ±± Total Cost of Non-Current Investments 1,25,177 19,020 1,32,294 1,082 /HVV3URYLVLRQIRUGLPLQXWLRQLQYDOXHRI (11,214) (6,366)   investments TOTAL NON-CURRENT INVESTMENTS 1,13,963 12,654 1,14,278 992 Particulars As at March 31, 2018 As at March 31, 2017 CURRENT INVESTMENTS Quoted : ,QYHVWPHQWLQ(TXLW\6KDUHV 170  Unquoted : ,QYHVWPHQWLQ(TXLW\6KDUHV 0  ,QYHVWPHQWLQ0XWXDO)XQGV 83 ± TOTAL CURRENT INVESTMENTS 253 794 TOTAL INVESTMENTS 1,13,963 12,907 1,14,278 1,786

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “13” INVESTMENTS (contd...... ) `LQODNK As at March 31, 2018 As at March 31, 2017 Particulars Non- Current Current Non- Current Current Investment Investment Investment Investment &RVWRI4XRWHGLQYHVWPHQWV 40,922 9,306   %RRNYDOXHRI4XRWHGLQYHVWPHQWV QHW 31,347 804   0DUNHWYDOXHRI4XRWHGLQYHVWPHQWV 34,471 2,241   &RVWRI8QTXRWHGLQYHVWPHQWV 84,255 12,430   %RRNYDOXHRI8QTXRWHGLQYHVWPHQWV QHW 82,616 12,103  ± $PRXQWOHVVWKDQ`

Scrip-wise details of Investments

As at March 31, 2018 As at March 31, 2017 Face value Per Current Current Unit ` Non- Current portion of No. of Units Non-Current portion of Particulars No. of Units (unless Investments Non-Current Investments Non-Current stated Investments Investments otherwise) `LQODNK `LQODNK `LQODNK `LQODNK NON - CURRENT INVESTMENTS Investments in Associates Unquoted : Investment in Equity Shares (Non-Trade)

7DWD$XWR&RPS6\VWHPV/LPLWHG   32,689 -    ,QWHUQDWLRQDO$VVHW5HFRQVWUXFWLRQ&RPSDQ\   - -    3ULYDWH/LPLWHG 5HIHUQRWH  32,689 - 36,401 - Investment in Venture Capital Units (Trade)

7DWD&DSLWDO,QQRYDWLRQ)XQG   5,326 –   ± 7DWD&DSLWDO,QQRYDWLRQV)XQG&ODVV%8QLWV 1  0* –   ± 7DWD&DSLWDO+HDOWKFDUH)XQG, 1  5,007 –   ± 7DWD&DSLWDO+HDOWKFDUH)XQG,&ODVV%8QLWV 1  0* –   ± 7DWD&DSLWDO6SHFLDO6LWXDWLRQ)XQG   2,709 –   ± 7DWD&DSLWDO6SHFLDO6LWXDWLRQV)XQG&ODVV%8QLWV   0* –   ± 13,042 – 15,153 – Carrying amount of investments in associates 45,731 – 51,554 (Refer note 29) ± Investment in Security Receipts

,QWHUQDWLRQDO$VVHW5HFRQVWUXFWLRQ&RPSDQ\  ± ––  ± 3ULYDWH/LPLWHG 5HIHU1RWH – – 748 –

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As at March 31, 2018 As at March 31, 2017 Face value Per Current Current Unit ` Non- Current portion of No. of Units Non-Current portion of Particulars No. of Units (unless Investments Non-Current Investments Non-Current stated Investments Investments otherwise) `LQODNK `LQODNK `LQODNK `LQODNK NON - CURRENT INVESTMENTS Investments in Others Quoted : Investment in Equity Shares - Non-Trade YDOXHGDWFRVWXQOHVVVWDWHGRWKHUZLVH 7KH,QGLDQ+RWHOV&RPSDQ\/LPLWHG 1  12 –   ± 7DWD6WHHO/LPLWHG   111 –   ± 7DWD6WHHO/LPLWHG 3DUWO\SDLG`   2– ± – ± +LQGXVWDQ8QLOHYHU/LPLWHG 1  5 –   ± %RPED\6WRFN([FKDQJH/LPLWHG   0* –   ± 7KH1HZ,QGLD$VVXUDQFHFRPSDQ\/LPLWHG   4,334 – ±±± 3UDM,QGXVWULHV/LPLWHG   16,577 –   ± &RPPHUFLDO(QJLQHHUV %RG\%XLOGHUV&RPSDQ\   – 7,000   ± /LPLWHG 21,041 7,000 23,692 – Investment in Debentures (Non-Trade) 6WDWH%DQNRI,QGLD,QGLDQ&DVK%RQG 86' ––– ±  6WDWH%DQNRI,QGLD,QGLDQ&DVK%RQG 86' ± ––  ± %3&/,QGLDQ&DVK%RQG 86'  1,381 – ±±± ,&,&,%DQN,QGLDQ&DVK%RQG 86'  2,146 – ±±± 21*&,QGLDQ&DVK%RQG 86'  243 – ±±± 6\QGLFDWH%DQN,QGLDQ&DVK%RQG 86'  2,639 – ±±± 8QLRQ%DQNRI,QGLD,QGLDQ&DVK%RQG 86'  667 – ±±± 7DWD,QWHUQDWLRQDO%RQG 86'  687 – ±±± 7DWD,QWHUQDWLRQDO%RQGV 86'  4,272 –   ± 7DWD0RWRUV/LPLWHG%RQG 86'  2,918 –  638 ± 7DWD0RWRUV/LPLWHG%RQG 86'  4,172 –  668 ± %DQNRILQGLD%RQG 86'  706 – ±±± 19,831 – 5,878 992 Investment in Mutual Funds +')&'HEW)XQG)RU&DQFHU&XUH   50 –   ± 50 – 50 – Unquoted : Investment in Equity Shares - Non-trade (valued at cost, unless stated otherwise) $GLWK\D$XWRPRWLYHV3ULYDWH/LPLWHG   140 –   ± $ULFHQW7HFKQRORJLHV+ROGLQJV/LPLWHG  8 0* – 8  ± 5RRWV&RUSRUDWLRQ/LPLWHG   1,880 –   ± 7DWD6N\/LPLWHG   5,242 –   ±

116 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As at March 31, 2018 As at March 31, 2017 Face value Per Current Current Unit ` Non- Current portion of No. of Units Non-Current portion of Particulars No. of Units (unless Investments Non-Current Investments Non-Current stated Investments Investments otherwise) `LQODNK `LQODNK `LQODNK `LQODNK NON - CURRENT INVESTMENTS 7DWD7HFKQRORJLHV/LPLWHG   – 4,707   ± 6WDU+HDOWK $OOLHG,QVXUDQFH&RPSDQ\/LPLWHG   – 6,000   ± 6.6,VSDW 3RZHU/LPLWHG   1,028 –   ± 6KULUDP3URSHUWLHV3ULYDWH/LPLWHG   3,935 –   ± $JLOH(OHFWULF6XE$VVHPEO\3ULYDWH/LPLWHG  ± ––  ± 7DWD3URMHFWV/LPLWHG   2,823 –   ± )LQFDUH%XVLQHVV6HUYLFHV/LPLWHG   660 –   ± 796/RJLVWLFV6HUYLFHV/LPLWHG   1,465 –   ± 9DUURF(QJLQHHULQJ3ULYDWH/LPLWHG   2,521 –   ± 6DL/LIH6FLHQFHV/LPLWHG   – 1,313   ± ,QWHUQDWLRQDO$VVHW5HFRQVWUXFWLRQ&RPSDQ\   3,893 – ±±± 3ULYDWH/LPLWHG &RQQHTW%XVLQHVV6ROXWLRQ/LPLWHG IRUPHUO\  ± ––  ± NQRZQDV7DWD%XVLQHVV6XSSRUW6HUYLFHV /LPLWHG 23,587 12,020 36,098 – Investment in Security Receipts ,QWHUQDWLRQDO$VVHW5HFRQVWUXFWLRQ&RPSDQ\   395 – ±±± 3ULYDWH/LPLWHG 395 – – – Investment in Preference Shares (Non-Trade) 6KDUH0LFURILQ/LPLWHG2SWLRQDOO\  ± –– ±  &RQYHUWLEOH&XPXODWLYH5HGHHPDEOH3UHIHUHQFH 6KDUHV 8EHU7HFKQRORJLHV,QF  2,736 –   ± 9DQX,QF  6,272 –   ± &RQQHTW%XVLQHVV6ROXWLRQ/LPLWHG IRUPHUO\  ± ––  ± NQRZQDV7DWD%XVLQHVV6XSSRUW6HUYLFHV /LPLWHG 9,008 – 10,491 90 Investment in Mutual Funds 7DWD0RQH\0DUNHW)XQG*URZWK   1,476 –   ± 7DWD0RQH\0DUNHW)XQG'DLO\'LYLGHQG   27 –   ± 1,503 – 1,489 ± Investment in Venture Capital Fund 3LWDQJR9HQWXUH&DSLWDO)XQG9,/3 2,590 –  ± 3LWDQJR9HQWXUH&DSLWDO)XQG9,,/3 1,441 – ±± 4,031 – 2,294 ± Total Cost of Non-Current Investments 1,25,177 19,020 1,32,294 1,082 /HVV3URYLVLRQIRUGLPLQXWLRQLQYDOXHRILQYHVWPHQWV (11,214) (6,366)   TOTAL NON-CURRENT INVESTMENTS 1,13,963 12,654 1,14,278 992

117 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “15” `LQODNK Face value ` As at As at INVESTMENTS Per Unit No. of Units No. of Units (unless stated March 31, 2018 March 31, 2017 otherwise) CURRENT INVESTMENTS Quoted : Investment in Equity Shares ,95&//LPLWHG   246   *2/2IIVKRUH/LPLWHG   282   ,,QIRWHFK/LPLWHG   1,013 ±± &RQVROLGDWHG&RQVWUXFWLRQ&RQVRUWLXP/LPLWHG   8 ±± 'LDPRQG3RZHU,QIUD/LPLWHG   674   2,223  Less: Provision and MTM loss on Current (2,053)  Investment 170 794 Unquoted : Investment in Equity Shares 7DWD7HOHVHUYLFHV/LPLWHG 5HIHUQRWH   0*   &RDVWDO3URMHFWV/LPLWHG   410   410 410 Investment in Mutual Funds 7DWD/LTXLG)XQG'DLO\'LYLGHQG  83 ±± 493  Less: Provision for diminution in value of (410)  investments 83 – Total Cost of Current Investments 253 794 TOTAL CURRENT INVESTMENTS 253 794 $PRXQWOHVVWKDQ`

NOTE “14” `LQODNK As at As at DEFERRED TAX ASSETS March 31, 2018 March 31, 2017 Deferred Tax Assets D  2QDFFRXQWRISURYLVLRQVIRUQRQSHUIRUPLQJDVVHWV 34,655  E  3URYLVLRQIRUUHVWUXFWXUHGDGYDQFHV 49 38 F  &RQWLQJHQWSURYLVLRQIRUVWDQGDUGDVVHWV 9,364  G  (PSOR\HHEHQH¿WV 494  H  7LPLQJGLIIHUHQFHLQUHVSHFWRIGHSUHFLDWLRQRQ¿[HGDVVHWV 432  I  2WKHUV 2,216  Deferred Tax Liabilities D  7LPLQJGLIIHUHQFHLQUHVSHFWRIGHSUHFLDWLRQRQ¿[HGDVVHWV –  E  'HEHQWXUHLVVXHH[SHQVHV (492)  F  6SHFLDO5HVHUYHXV   YLLL RIWKH,QFRPHWD[$FW (3,992)  Total 42,726 45,933

118 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “15” `LQODNK As at As at LOANS AND ADVANCES - FINANCING ACTIVITY March 31, 2018 March 31, 2017 NON-CURRENT (a) Secured Loans L  &RQVLGHUHGJRRG 35,01,722  LL  &RQVLGHUHGGRXEWIXO 31,229  LLL  5HWDLQHGSRUWLRQRIDVVLJQHGORDQV 9,566  35,42,517  (b) Unsecured Loans L  &RQVLGHUHGJRRG 2,60,797  LL  &RQVLGHUHGGRXEWIXO 1,531 733 2,62,328  (c) Secured Credit Substitutes (Refer note 15.1) L  &RQVLGHUHGJRRG 17,030  LL  &RQVLGHUHGGRXEWIXO –  17,030  (d) Unsecured Credit Substitutes (Refer note 15.1) L  &RQVLGHUHGJRRG 16,230  LL  &RQVLGHUHGGRXEWIXO – ± 16,230  Total 38,38,105  CURRENT (a) Secured Loans L  &RQVLGHUHGJRRG 9,21,122  LL  &RQVLGHUHGGRXEWIXO 45,395  LLL  5HWDLQHGSRUWLRQRIDVVLJQHGORDQV 1,131  9,67,648  (b) Unsecured Loans L  &RQVLGHUHGJRRG 11,23,533  LL  &RQVLGHUHGGRXEWIXO 13,383  11,36,916  (c) Secured Credit Substitutes (Refer note 15.1) L  &RQVLGHUHGJRRG 985  LL  &RQVLGHUHGGRXEWIXO 13,623  14,608  (d) Unsecured Credit Substitutes (Refer note 15.1) L  &RQVLGHUHGJRRG 77,446  LL  &RQVLGHUHGGRXEWIXO 14 ± 77,460  (e) Unsecured Inter Corporate Deposits L  &RQVLGHUHGJRRG 9,300  LL  &RQVLGHUHGGRXEWIXO – ± 9,300  7RWDO 22,05,932  TOTAL - LOANS AND ADVANCES - FINANCING ACTIVITIES 60,44,037 51,20,952 L  2XWRIWKHDERYHORDQVJLYHQWR5HODWHG3DUWLHV6HFXUHG`ODNK 3UHYLRXV\HDU` ODNKDQG8QVHFXUHG`ODNK 3UHYLRXV\HDU`ODNK 

119 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “15.1” Scrip-wise details of Credit Substitutes: ` LQODNK As at As at Face No. of March 31, 2018 No. of March 31, 2017 PARTICULARS value Per Units Non- Units Non- Unit ` Current Current Current Current Secured Quoted : Investment in Bonds and Debentures (Trade) 'LDPRQG3RZHU,QIUDOLPLWHG  ± ± ±   ± &KRODPDQGDODP,QYHVWPHQW )LQDQFH  1 ±1 ± &RPSDQ\/LPLWHG 7XOLS7HOHFRP/LPLWHG   ± ±  ± ± &RQVROLGDWHG&RQVWUXFWLRQ&RQVRUWLXP/LPLWHG  ± ± ±   139 *RGDZDUL3RZHUDQG,VSDW/LPLWHG    79  ±  -0)LQDQFLDO$VVHW5HFRQVWUXFWLRQ&RPSDQ\  ± ± ±   ± -0)LQDQFH&6/1&'    ± ± ± ± =XND3RZHU3ULYDWH/LPLWHG       139 6DWWYD5HDOWRUV/LPLWHG     ± ±± 17,030 974 15,240 1,783 Secured Unquoted : Investment in Debentures (Trade) (DVW&RDVW&RQVWUXFWLRQVDQG,QGXVWULHV/LPLWHG  ± ––±± (OGHU3KDUPDFHXWLFDOV/LPLWHG  ± – 878 ± ±  0HWURSROLWDQ,QIUDKRXVLQJ3ULYDWH/LPLWHG ±  – 7,651  ±  0DQGDYD+ROGLQJ3ULYDWH/LPLWHG ± ± –1±± 1 -/3RZHU9HQWXUHV3ULYDWH/LPLWHG  ± ––   $URKL,QIUDVWUXFWXUH3ULYDWH/LPLWHG  ± – 5,092 ± ±  – 13,622 2,800 12,515 ,QYHVWPHQWLQ3DVV7KURXJK&HUWL¿FDWHV -LQGDO,7)/LPLWHG6HULHV$WR( ± ± –– ±  –– ±  $GG,QWHUHVWDFFUXHGEXWQRWGXH –12   Total Secured 17,030 14,608 19,260 19,311 Unsecured Quoted : Investment in Bonds and Debentures (Trade) ,'%,%DQN/LPLWHG  ± ––  ± ,QGLDQ2YHUVHDV%DQN/LPLWHG   4,000 –   ± 796&UHGLW6HUYLFHV/LPLWHG3',   8,235 – ±± ± 12,235 – 4,507 ± Unsecured Unquoted : Investment in Preference Shares (Non-Trade) .LUL,QGXVWULHV/LPLWHG   – 433  ±  0F1DOO\%KDUDWK(QJLQHHULQJ&R/LPLWHG   1,995 –   9 1,995 433 3,417 442

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

As at As at Face No. of March 31, 2018 No. of March 31, 2017 PARTICULARS value Per Units Non- Units Non- Unit ` Current Current Current Current Investment in Debentures (Trade)

7DWD0RWRU)LQDQFH/LPLWHG   2,000 –   ± 2,000 – 2,000 ± ,QYHVWPHQWLQ3DVV7KURXJK&HUWL¿FDWHV &DSLWDO'5/7UXVW129% –– ±  &DSLWDO'5/7UXVW'(&% –– ±  &DSLWDO'5/7UXVW'(&% –– ± 197 &DSLWDO'5/7UXVW-$1% –– ±  &DSLWDO'5/7UXVW-$1% –– ±  &DSLWDO'5/7UXVW)(%% –– ±  &DSLWDO'5/7UXVW)(%% –– ±  &DSLWDO'5/7UXVW0$5&+& –– ±  &DSLWDO'5/7UXVW0$5&+% –– ±  &DSLWDO'5/7UXVW0$5&+% –– ±  &DSLWDO'5/7UXVW0$5&+%75$1&+( –– ±  &DSLWDO'5/7UXVW0$5&+%75$1&+( –– ±  &DSLWDO'5/7UXVW0$5&+%75$1&+( –– ±  &DSLWDO'5/7UXVW0$5&+&75$1&+( –– ±  &DSLWDO'5/7UXVW37&'$ –69 ±± &DSLWDO'5/7UXVW37&'$ – 583 ±± &DSLWDO'5/7UXVW37&'$ – 818 ±± &DSLWDO'5/7UXVW&37&' – 1,515 ±± &DSLWDO'5/7UXVW-8/<%75$1&+37&' – 146 ±± $ &DSLWDO'5/7UXVW-8/<&37&'$ – 143 ±± &DSLWDO'5/7UXVW6(37(0%(5(1'%37&' – 403 ±± &DSLWDO'5/7UXVW37&'% – 514 ±± &DSLWDO'5/7UXVW37&'$ – 1,391 ±± &DSLWDO'5/7UXVW&37&'$ – 1,034 ±± &DSLWDO'5/7UXVW37&'$ – 13,822 ±± &DSLWDO'5/7UXVW37&'$ – 41,238 ±± &DSLWDO'5/7UXVW37&'$ – 14,915 ±± – 76,591 ± 54,293 $GG,QWHUHVWDFFUXHGEXWQRWGXH – 436 ±  Total Unsecured 16,230 77,460 9,924 54,862 Grand Total 33,260 92,068 29,184 74,173

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “16” `LQODNK LONG-TERM LOANS AND ADVANCES - OTHERS As at As at (UNSECURED - CONSIDERED GOOD) March 31, 2018 March 31, 2017 D  &DSLWDODGYDQFHV 17,459  E  6HFXULW\GHSRVLWV 540 716  /HVV3URYLVLRQIRUVHFXULW\GHSRVLWV (1)  539  F  3UHSDLGH[SHQVHV 224 379 G  $GYDQFH SD\PHQW RI ,QFRPH WD[ >1HW RI SURYLVLRQ IRU WD[ 8,711  ` ODNK DVDW0DUFK`ODNK @ H  0$7FUHGLWHQWLWOHPHQW 1,163 ± Total 28,096 18,400

NOTE “17” `LQODNK As at As at OTHER NON-CURRENT ASSETS March 31, 2018 March 31, 2017 D  'HIHUUHGUHYHQXHH[SHQGLWXUH 5HIHUQRWH D 1,283  E  8QDPRUWLVHGORDQVRXUFLQJFRVWV 10,270  F  *UDWXLW\$VVHW 1HW 142  G  )L[HGGHSRVLWZLWKPDWXULW\PRUHWKDQPRQWKV 105 361 H  2WKHUV 43 13 Total 11,843 11,913

NOTE “18” `LQODNK As at As at TRADE RECEIVABLES March 31, 2018 March 31, 2017 (a) Over six months (from the date due for payment) L  6HFXUHGFRQVLGHUHGJRRG – ± LL  8QVHFXUHGFRQVLGHUHGJRRG 335 169 LLL  'RXEWIXO 520  855 681 /HVV3URYLVLRQIRUWUDGHUHFHLYDEOHV (520)  335 169 (b) Others L  6HFXUHGFRQVLGHUHGJRRG – ± LL  8QVHFXUHGFRQVLGHUHGJRRG 6,761  LLL  'RXEWIXO 62 ± 6,823  /HVV3URYLVLRQIRUWUDGHUHFHLYDEOHV (62) ± 6,761  Total 7,096 8,268

 NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “19” `LQODNK As at As at CASH AND BANK BALANCES March 31, 2018 March 31, 2017 D  &DVKRQ+DQG 175 911 E  &KHTXHVRQKDQG 3,643  F  %DODQFHVZLWKEDQN L  ,QFXUUHQWDFFRXQWV 12,498  LL  ,QFOLHQWDFFRXQWV 13  LLL  ,QGHSRVLWDFFRXQWV 7,820  Total 24,149 35,796 L  2I WKH DERYH WKH EDODQFHV WKDW PHHW WKH GH¿QLWLRQ RI &DVK DQG &DVK (TXLYDOHQWV DV SHU $6  &DVK)ORZ6WDWHPHQWV LV`ODNK DVDW0DUFK`ODNK  LL  'HSRVLWVLQFOXGHVOLHQZLWK%DQNVDQG6WRFN([FKDQJHVDVPDUJLQDPRXQWLQJWR`ODNK DVDW 0DUFK`ODNK  LLL  %DODQFHLQFXUUHQWDFFRXQWVLQFOXGHV`ODNK DVDW0DUFK` ODNK WRZDUGVXQFODLPHG GHEHQWXUHDSSOLFDWLRQPRQH\DQGLQWHUHVWDFFUXHGWKHUHRQ LY  7KH GLVFORVXUHV LQ WKH FRQVROLGDWHG ¿QDQFLDO VWDWHPHQWV UHJDUGLQJ KROGLQJV DV ZHOO DV GHDOLQJV LQ VSHFL¿HG EDQN QRWHV GXULQJ WKH SHULRG IURP  WR  KDYH QRW EHHQ PDGH VLQFH WKH\GRQRWSHUWDLQWRWKH¿QDQFLDO\HDUHQGHG0DUFK   Y  7KHGHWDLOVRIWKH6SHFL¿HG%DQN1RWHV 6%1 KHOGDQGWUDQVDFWHGGXULQJWKHSHULRGWR DUHDVEHORZ DVSHU0&$1RWL¿FDWLRQ*65 ( GDWHGWK0DUFK  Particulars SBNs Other Denomination Notes Total 2SHQLQJ&DVKLQKDQGDVRQ     3HUPLWWHGUHFLHSWV ±    3HUPLWWHGSD\PHQWV ±    $PRXQWVGHSRVLWHGLQ%DQNV  973  &ORVLQJFDVKLQKDQGDVRQ ±  

NOTE “20” `LQODNK SHORT-TERM LOANS AND ADVANCES As at As at (UNSECURED-CONSIDERED GOOD) March 31, 2018 March 31, 2017 D  &DSLWDODGYDQFHV 72 13 E  /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV 1  F  6HFXULW\GHSRVLWV 2,701  G  3UHSDLGH[SHQVHV 2,380  H  %DODQFHVZLWKJRYHUQPHQWDXWKRULWLHV 4,955  I  2WKHUV L  $GYDQFHVWRYHQGRUV –  LL  2WKHUDGYDQFHV 1,015  /HVV3URYLVLRQRQRWKHUORDQVDQGDGYDQFHV –  1HWYDOXHRIRWKHUDGYDQFHV 1,015  LLL  6KDUHGHEHQWXUHDSSOLFDWLRQPRQH\ 5HIXQGDEOH 7,919  LY  /RDQVDQGDGYDQFHVWRHPSOR\HHV 568  Total 19,611 23,114

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2018

NOTE “21” `LQODNK As at As at OTHER CURRENT ASSETS March 31, 2018 March 31, 2017 D  ,QWHUHVWDFFUXHGEXWQRWGXHRQGHSRVLWVLQYHVWPHQWV 434 136 E  'HIHUUHGUHYHQXHH[SHQGLWXUH 5HIHUQRWH D 831  F  8QDPRUWLVHGORDQVRXUFLQJFRVWV 11,477  G  ,QFRPHDFFUXHGEXWQRWGXH 3,507  H  5HFHLYDEOHRQVDOHUHGHPSWLRQRI,QYHVWPHQW 173 83 /HVV3URYLVLRQIRUUHFHLYDEOHRQVDOHUHGHPSWLRQRI,QYHVWPHQW (173)  1HW5HFHLYDEOH – ± I  $VVHWVKHOGIRUVDOH 4,447  /HVV3URYLVLRQIRUDVVHWVKHOGIRUVDOH (3,072)  1HWUHFHLYDEOH 1,375  J  2WKHUV 1,282  Total 18,906 18,117

NOTE “21(a)” `LQODNK Deferred Revenue Expenditure (to the extent not written off or As at As at adjusted) March 31, 2018 March 31, 2017 (a) Unamortised share issue expenses 2SHQLQJ%DODQFH –  $GGH[SHQVHVLQFXUUHGGXULQJWKH\HDU – ± /HVVZULWWHQRIIGXULQJWKH\HDU – ± /HVVZULWWHQRIIDJDLQVW6HFXULWLHV3UHPLXP 5HIHUQRWH –  Closing Balance – ± (b) Unamortised debenture issue expenses 2SHQLQJ%DODQFH 2,313  $GGH[SHQVHVLQFXUUHGGXULQJWKH\HDU 724  /HVVZULWWHQRIIGXULQJWKH\HDU 1,144  Closing Balance 1,893  (c) Unamortised loan processing charges 2SHQLQJ%DODQFH 383  $GGH[SHQVHVLQFXUUHGGXULQJWKH\HDU 173  /HVVZULWWHQRIIGXULQJWKH\HDU 335 316 Closing Balance 221 383 Total 2,114 2,696

As at As at March 31, 2018 March 31, 2017 Non- Non- Current Current Current Current D 8QDPRUWLVHGVKDUHLVVXHH[SHQVHV ––±± E 8QDPRUWLVHGGHEHQWXUHLVVXHH[SHQVHV 1,273 620   F 8QDPRUWLVHGORDQSURFHVVLQJFKDUJHV 10 211   Total 1,283 831 1,618 1,078 Grand Total 2,114 2,696

 NOTES TO AND FORMING PART OF THE CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

NOTE “22” `LQODNK For the Year Ended REVENUE FROM OPERATIONS March 31, 2018 March 31, 2017 D  ,QWHUHVW,QFRPH L  )URPVHFXUHGORDQVDQGFUHGLWVXEVWLWXWHV 4,60,432  LL  )URPXQVHFXUHGORDQVDQGFUHGLWVXEVWLWXWHV 1,29,748  E  ,QFRPHIURP%LOO'LVFRXQWLQJ 3,899  F  2WKHUV 48,129  Total 6,42,208 5,73,196

NOTE “23” `LQODNK For the Year Ended INVESTMENT INCOME March 31, 2018 March 31, 2017 D  'LYLGHQGIURP1RQFXUUHQW,QYHVWPHQWV 1,411  E  'LYLGHQGIURP&XUUHQW,QYHVWPHQWV 7  F  3UR¿WRQVDOHRI1RQFXUUHQW,QYHVWPHQWV 7,076  G  3UR¿WRQVDOHRI&XUUHQW,QYHVWPHQWV 141  H  ,QWHUHVWRQ1RQFXUUHQW,QYHVWPHQWV –  I  ,QWHUHVWRQ&XUUHQW,QYHVWPHQWV 568  Total 9,203 15,110

NOTE “24” `LQODNK For the Year Ended OTHER INCOME March 31, 2018 March 31, 2017 D  ,QFRPHIURPDGYLVRU\VHUYLFHV 8,628  E  ,QFRPHIURPRSHUDWLQJOHDVHV 25,794  F  ,QWHUHVWLQFRPHRQ¿[HGGHSRVLWV 294  G  ,QFRPHIURPWLFNHWLQJ RWKHUWUDYHOUHODWHGVHUYLFHV 475  H  ,QFRPHIURPIRUH[VHUYLFHV 672  I  %URNHUDJH,QFRPH 592  J  ([FKDQJHJDLQV QHW 12 6 K  $GYHUWLVHPHQWLQFRPH 5,150  L  ,QFRPHIURPGLVWULELXWLRQRI¿QDQFLDOSURGXFWV 3,745  M  3UR¿WRQVDOHRI$VVHWV 2,226 68 N  ,QWHUHVWRQ,QFRPH7D[5HIXQG 935  O  0LVFHOODQHRXV,QFRPH 1,656 918 Total 50,179 44,117 ,QFOXGHVLQFRPHLQIRUHLJQFXUUHQF\`ODNK 3UHYLRXV

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

NOTE “25” `LQODNK For the Year Ended FINANCE COSTS March 31, 2018 March 31, 2017 D  ,QWHUHVWH[SHQVH 2,99,046  E  'LVFRXQWLQJFKDUJHV L  2QFRPPHUFLDOSDSHUV 67,381  LL  2QGHEHQWXUHV 448  LLL  2Q&ROODWHUDOLVHG%RUURZLQJVDQG/HQGLQJ2EOLJDWLRQV –  Total 3,66,875 3,47,025

NOTE “26” `LQODNK For the Year Ended EMPLOYEE BENEFIT EXPENSES March 31, 2018 March 31, 2017 D  6DODULHVZDJHVDQGERQXV 57,365  E  &RQWULEXWLRQWRSURYLGHQWDQGRWKHUIXQGV 5HIHUQRWH 2,765  F  6WDIIZHOIDUHH[SHQVHV 2,717  Total 62,847 57,193

NOTE “27” `LQODNK For the Year Ended OTHER OPERATING EXPENSES March 31, 2018 March 31, 2017 D  $GYHUWLVHPHQWVDQGSXEOLFLW\ 2,461  E  %UDQG(TXLW\DQG%XVLQHVV3URPRWLRQ 1,951  F  &RUSRUDWHVRFLDOUHVSRQVLELOLW\H[SHQVHV 5HIHUQRWH E 1,544  G  'LUHFWRUV¶UHPXQHUDWLRQ 598  H  'RQDWLRQV 5  I  (TXLSPHQWKLUHFKDUJHV 348 316 J  ,QFHQWLYHFRPPLVVLRQEURNHUDJH 20,336  K  ,QIRUPDWLRQWHFKQRORJ\H[SHQVHV 11,154  L  ,QVXUDQFHFKDUJHV 1,079  M  /HJDODQGSURIHVVLRQDOIHHV 7,633  N  /RDQSURFHVVLQJIHHV 4,122  O  3ULQWLQJDQGVWDWLRQHU\ 978  P  3URYLVLRQIRUGRXEWIXOORDQV 44,446  /HVV$GMXVWPHQWSXUVXDQWWR5HGXFWLRQRI6KDUH –  &DSLWDO 5HIHUQRWH /HVV'HOLQTXHQF\6XSSRUW (5,731) 38,715 ±  Q  :ULWHRII/RDQVDQGDGYDQFHV 66,924  /HVV3URYLVLRQUHYHUVDORQZULWHRII (66,924) –  ±

 NOTES TO AND FORMING PART OF THE CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

For the Year Ended OTHER OPERATING EXPENSES March 31, 2018 March 31, 2017 R  3URYLVLRQDJDLQVWWUDGHUHFHLYDEOHVVHFXULW\GHSRVLWV 443  S  7UDGH5HFHLYDEOHVZULWWHQRII 4  T  &RQWLQJHQWSURYLVLRQDJDLQVWVWDQGDUGDVVHWV 5,247  U  &RQWLQJHQWSURYLVLRQDJDLQVWUHVWUXFWXUHGDGYDQFHV (1,409)  V  3URYLVLRQIRUGLPLQXWLRQLQYDOXHRILQYHVWPHQWV QHWRI (435)  UHYHUVDOV W  3URYLVLRQRQ&XUUHQW,QYHVWPHQW 1,463  /HVV$GMXVWPHQWSXUVXDQWWR5HGXFWLRQRI6KDUH – 1,463  383 &DSLWDO 5HIHUQRWH X  :ULWHRII,QYHVWPHQWV –  /HVV$GMXVWPHQWSXUVXDQWWR5HGXFWLRQRI6KDUH ––  ± &DSLWDO 5HIHUQRWH  Y  :ULWHRII*RRGZLOO LQFOXGLQJ*RRGZLOORQ –  FRQVROLGDWLRQ /HVV$GMXVWPHQWSXUVXDQWWR5HGXFWLRQRI6KDUH ––  ± &DSLWDO 5HIHUQRWH Z  3URYLVLRQIRUDVVHWVKHOGIRUVDOH 1,405  [  3URYLVLRQDJDLQVWRWKHUGRXEWIXODGYDQFHV – 6 \  3RZHUDQGIXHO 1,063 993 ]  5HSDLUVDQGPDLQWHQDQFH L  %XLOGLQJV 132 69 LL  $QQXDOPDLQWHQDQFHFKDUJHV 132 377 LLL  2WKHUV 193 457   DD  5HQW 3,506  DE  5DWHVDQGWD[HV (185) 863 DF  6WDPSFKDUJHV 544  DG  6HUYLFHSURYLGHUV¶FKDUJHV 12,871  DH  7UDLQLQJDQGUHFUXLWPHQW 803 769 DI  7HOHSKRQHWHOH[DQGOHDVHGOLQH 945  DJ  7UDYHOLQJDQGFRQYH\DQFH 3,981  DK  /RVVRQVDOHRIORQJWHUP,QYHVWPHQW –  DL  /RVVRQVDOHGLVSRVDORIDVVHWV 1,191  DM  $PRUWLVDWLRQRISUHPLXPRIIRUZDUGIRUHLJQH[FKDQJH 128 ± FRYHU DN  2WKHU([SHQVHV 5HIHUQRWH D 2,374  Total 1,25,320 1,40,566 7KHFRPSDQ\KDVSDLG3URSHUW\7D[RI`ODNKIRULWVSURSHUW\µWK WKÀRRU3HQLQVXOD%XVLQHVV 3DUN 3DUHO¶ IRU WKH SHULRG RI )<  WR )<  SXUVXDQW WR WKH UHYLVHG QRWLFH UHFHLYHG IURP 0XPEDL 0XQLFLSDO &RUSRUDWLRQ7KH FRPSDQ\ ZDV FDUU\LQJ D WRWDO SURYLVLRQ RI `  ODNK RI ZKLFK QRZ DGGLWLRQDO SURYLVLRQDPRXQWLQJWR`ODNKLVUHYHUVHG 5HYHUVDOIRUWKHSUHYLRXV\HDUHQGHG0DUFK1LO

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

NOTE “27(a)” `LQODNK For the Year Ended AUDITORS’ REMUNERATION (excl. Taxes) March 31, 2018 March 31, 2017 D  $XGLW)HHV 223  E  7D[$XGLW)HHV 11 17 F  2WKHU6HUYLFHV 29  G  7RZDUGVUHLPEXUVHPHQWRIH[SHQVHV 2  265 338 $XGLWRUV¶5HPXQHUDWLRQLVLQFOXGHGLQ2WKHU([SHQVHV

NOTE “27(b)” : CORPORATE SOCIAL RESPONSIBILITY EXPENSES L  *URVVDPRXQWUHTXLUHGWREHVSHQWE\WKH*URXSGXULQJWKH\HDUZDV`ODNK 3<ODNK LL  $PRXQWVSHQWGXULQJWKH\HDURQ `LQODNK Particulars Paid Yet to be paid Total &RQVWUXFWLRQDFTXLVLWLRQRIDQ\DVVHW ––– 2QSXUSRVHVRWKHUWKDQDERYH 1,544 – 1,544

 NOTE “28” 7KH ¿QDQFLDO VWDWHPHQWV RI WKH IROORZLQJ VXEVLGLDULHV KDYH EHHQ FRQVROLGDWHG DV SHU $FFRXQWLQJ 6WDQGDUGRQµ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV¶ % Holding % Holding Country of Name of the Subsidiary as at as at Incorporation March 31, 2018 March 31, 2017 7DWD6HFXULWLHV/LPLWHG India 100  7DWD&DSLWDO+RXVLQJ)LQDQFH/LPLWHG India 100  7DWD&DSLWDO)LQDQFLDO6HUYLFHV/LPLWHG India 100  7&7UDYHODQG6HUYLFHV/LPLWHG 5HIHUQRWH India –  7DWD&DSLWDO)RUH[/LPLWHG 5HIHUQRWH India –  7DWD&DSLWDO*URZWK)XQG India 73.75  7DWD&OHDQWHFK&DSLWDO/LPLWHG India 80.50  7DWD&DSLWDO3WH/LPLWHG 6LQJDSRUH 100  7DWD&DSLWDO0DUNHWV3WH/LPLWHG 6LQJDSRUH 100  6XEVLGLDU\RI7DWD&DSLWDO3WH/LPLWHG 7DWD&DSLWDO$GYLVRUV3WH/LPLWHG 6LQJDSRUH 100  6XEVLGLDU\RI7DWD&DSLWDO3WH/LPLWHG 7DWD&DSLWDO3OF United Kingdom 100  6XEVLGLDU\RI7DWD&DSLWDO3WH/LPLWHG 7DWD&DSLWDO*HQHUDO3DUWQHUV//3 6LQJDSRUH 80  6XEVLGLDU\RI7DWD&DSLWDO3WH/LPLWHG 7DWD&DSLWDO+HDOWKFDUH*HQHUDO3DUWQHUV//3 6LQJDSRUH 100  6XEVLGLDU\RI7DWD&DSLWDO3WH/LPLWHG 7DWD2SSRUWXQLWLHV*HQHUDO3DUWQHUV//3 6LQJDSRUH 90  6XEVLGLDU\RI7DWD&DSLWDO3WH/LPLWHG

NOTE “29” 7KH *URXS KDV LQYHVWPHQWV LQ WKH IROORZLQJ DVVRFLDWHV ZKLFK DUH DFFRXQWHG IRU RQ WKH (TXLW\ 0HWKRG LQ DFFRUGDQFH ZLWK WKH $FFRXQWLQJ 6WDQGDUG  RQ µ$FFRXQWLQJ IRU ,QYHVWPHQWV LQ $VVRFLDWHV LQ &RQVROLGDWHG)LQDQFLDO6WDWHPHQWV¶ 7KH3DUWLFXODUVRILQYHVWPHQWVLQDVVRFLDWHVDVRQ0DUFKDUHDVIROORZV ` ,QODNK Amount of Share of post Original JRRGZLOO Carrying Sr Country of Ownership acquisition Name of Associates Cost of (Capital Amount of No Incorporataion Interest (%) Reserves & Investment Reserve) in Investments Surplus original cost 1 7DWD$XWR&RPS6\VWHPV/LPLWHG India 24.00% 18,528 12,145 14,161 32,689 5HIHUIRRWQRWH 24.00% 18,528 12,145 14,019 32,547  7DWD&DSLWDO6SHFLDO6LWXDWLRQ)XQG India 28.18% 4,181 – (1,472) 2,709 28.18% 4,464 – (1,659) 2,805 3 7DWD&DSLWDO+HDOWK&DUH)XQG India 32.12% 6,552 – (1,545) 5,007 32.12% 8,457 – (1,512) 6,945  7DWD&DSLWDO,QQRYDWLRQ)XQG India 27.13% 7,516 – (2,190) 5,326 27.13% 7,152 – (1,749) 5,403  ,QWHUQDWLRQDO$VVHW India NA NA NA NA NA 5HFRQVWUXFWLRQ&RPSDQ\ 25.37% 3,313 483 541 3,854 3ULYDWH/LPLWHG 5HIHUIRRWQRWH DQG 36,777 12,145 8,954 45,731 Total 41,914 12,628 9,640 51,554

 Annual Report 2017-18

Notes:   &RQVROLGDWHGEDVHGRQXQDXGLWHG¿QDQFLDOVWDWHPHQWVDVDWWKH\HDUUHOHYDQWSHULRGGXULQJWKH\HDU   ,QWHUQDWLRQDO$VVHW 5HFRQVWUXFWLRQ &RPSDQ\ 3ULYDWH /LPLWHG KDV FHDVHG WR EH DQ$VVRFLDWH ZLWK HIIHFW IURP 0DUFK   )LJXUHVLQ,WDOLFVUHSUHVHQWSUHYLRXV\HDU

NOTE “30” 'HWDLOVRIWKH&RPSDQ\¶VLQWHUHVWLQLWV-RLQW9HQWXUHKDYLQJ-RLQW&RQWURODVSHUWKHUHTXLUHPHQWRI $FFRXQWLQJ6WDQGDUG $6 RQ³)LQDQFLDO5HSRUWLQJRI,QWHUHVWVLQ-RLQW9HQWXUH´ 7KHIROORZLQJDPRXQWVDUHLQFOXGHGLQWKH)LQDQFLDO6WDWHPHQWVLQUHVSHFWRIWKHMRLQWO\FRQWUROOHGHQWLW\ EDVHGRQWKHSURSRUWLRQDWHFRQVROLGDWLRQPHWKRG ` LQODNK Nectar Loyalty Management India Ltd (Incorporated and Registered in India) Sr. Particulars No. For the year ended For the year ended March 31, 2018 March 31, 2017 [Refer Footnote 1] [Refer Footnote 1] 6KDUHV+HOG D $VVHWV E /LDELOLWLHV 1$ 1$ F Income G ([SHQVHV H 2WKHU0DWWHUV±&RQWLQJHQW/LDELOLW\ Footnotes:-   1HFWDU /R\DOW\ 0DQDJHPHQW ,QGLD /LPLWHG ZDV D MRLQW YHQWXUH ZLWK $,0,$ IRUPHUO\ NQRZQ DV *URXSH$HURSODQ ,QF  WR ODXQFK D PXOWLSDUW\ FRDOLWLRQ OR\DOW\ SURJUDP LQ ,QGLD 7DWD&DSLWDO KHOG  LQ WKH MRLQW YHQWXUH ZKLFK ZDV GLYHVWHG GXULQJ WKH SUHYLRXV \HDU DW D ORVV RI `  ODNKV 7KH &RPSDQ\ KDG IXOO\ SURYLGHG IRU LWV LQYHVWPHQW LQ GHEHQWXUHV DQG HTXLW\ VKDUHV LQ WKH MRLQW YHQWXUHDVWKHRSHUDWLRQVRI1HFWDUZHUHKHOGLQDEH\DQFHVLQFHDFRXSOHRI\HDUV

NOTE “31” PROVISIONS AND CONTINGENT LIABILITIES: i Movement in Contingent Provision against Standard Assets during the year is as under: `LQODNK For the Year Ended Particulars March 31, 2018 March 31, 2017 Opening Balance 21,809  $GGLWLRQVGXULQJWKH\HDU 5,247  8WLOLVHGGXULQJWKH\HDU – ± Closing Balance 27,056  /RQJWHUP3URYLVLRQ 5HIHU1RWH 17,004  6KRUWWHUP3URYLVLRQ 5HIHU1RWH 10,052  ii Movement in Other Provision during the year is as under: `LQODNK For the Year Ended Particulars March 31, 2018 March 31, 2017 Opening Balance 21,398  $GGLWLRQVGXULQJWKH\HDU 2,876  3URYLGHGWKURXJK&DSLWDO5HGXFWLRQ 5HIHUQRWH –  $GMXVWPHQWIRUFRPSDQLHVFHDVLQJWREHVXEVLGLDULHV (403) ± 5HIHUQRWH Closing Balance 23,871 

 LLL &ODLPVQRWDFNQRZOHGJHGE\WKH*URXSUHODWLQJWRFDVHVFRQWHVWHGE\WKH*URXSDQGZKLFK DUHQRWOLNHO\WREHGHYROYHGRQWKH*URXSUHODWLQJWRWKHIROORZLQJDUHDV `LQODNK As at As at Particulars March 31, 2018 March 31, 2017 ,QFRPH7D[ 3HQGLQJEHIRUH$SSHOODWH$XWKRULWLHV 12,451  9$7 3HQGLQJEHIRUH6DOHV7D[$SSHOODWH$XWKRULWLHV 173  Total 12,623 12,052

NOTE “32” : COMMITMENTS L &RPPLWPHQWWRLQYHVWLQ7DWD&DSLWDO6SHFLDO6LWXDWLRQV)XQGDPRXQWLQJWR`ODNK DVDW0DUFK `ODNK  LL &RPPLWPHQWWRLQYHVWLQ7DWD&DSLWDO+HDOWKFDUH)XQG,DPRXQWLQJWR`ODNK DVDW0DUFK `ODNK  LLL &RPPLWPHQW WR LQYHVW LQ 7DWD&DSLWDO ,QQRYDWLRQV )XQG DPRXQWLQJ WR `  ODNK DV DW 0DUFK  `ODNK  LY &RPPLWPHQWWRFRLQYHVWZLWK2PHJD7&+ROGLQJV3WH/WG86'0LOOLRQ `ODNK  DVDW 0DUFK86'0LOOLRQ `ODNK  Y &RPPLWPHQWWRLQYHVWLQ3LWDQJR9HQWXUH&DSLWDO)XQG86'0LOOLRQ `ODNK  DVDW0DUFK 86'0LOOLRQ `ODNK  YL *XDUDQWHHV LVVXHG WR 1DWLRQDO +RXVLQJ %DQN `  ODNK DV DW 0DUFK   `  ODNK DJDLQVWZKLFKWKHRXWVWDQGLQJDPRXQWLV`ODNK DVDW0DUFK`ODNK  3XUVXDQW WR WKH WHUPV RI WKH *XDUDQWHH WKH OLDELOLW\ RQ LQYRFDWLRQ LV FDSSHG DW WKH RXWVWDQGLQJ DPRXQW YLL 8QFDOOHGOLDELOLW\RQSDUWO\SDLGHTXLW\VKDUHVRI7DWD6WHHO/LPLWHGDPRXQWLQJWR`/DNK DV DW0DUFK1LO YLLLL 8QGUDZQ&RPPLWPHQWJLYHQWR%RUURZHUV  $VRQ0DUFK`ODNK 3UHYLRXV

127(³´(03/2<((672&.385&+$6(237,216&+(0( D  ,Q 0DUFK  WKH &RPSDQ\ DW LWV H[WUDRUGLQDU\ JHQHUDO PHHWLQJ DSSURYHG WKH ³7DWD &DSLWDO /LPLWHG (PSOR\HH 6WRFN 3XUFKDVH  2SWLRQ 6FKHPH´ WKH ³(623 6FKHPH´  3XUVXDQW WR WKLV VFKHPH D 7UXVW XQGHU WKH QDPH RI ³7&/ (PSOR\HH :HOIDUH 7UXVW´ KDV EHHQ FRQVWLWXWHG WR DGPLQLVWHUWKH(623VFKHPH E  7KH&RPSDQ\KDVLVVXHG(TXLW\6KDUHVRI`HDFKDWDSUHPLXPRI`SHUVKDUHLQ )<DQG(TXLW\6KDUHVRI`HDFKDWDSUHPLXPRI`SHUVKDUHLQ)<  WR WKH 7UXVW 7KH 7UXVW WUDQVIHUV VKDUHV WR WKH HPSOR\HHV RI WKH &RPSDQ\  LWV VXEVLGLDULHV XQGHUWKH(623VFKHPH

131 Annual Report 2017-18

F  7KH &RPSDQ\ KDG SURYLGHG ¿QDQFH RI `  ODNK LQ WKH )<  WR WKH7UXVW WR HQDEOH LW WR ¿QDQFH WKH &RPSDQ\¶V VKDUHV VXEVFULEHG IRU E\ LW7KH RXWVWDQGLQJ EDODQFH RI ORDQ WR WKH7UXVW  (PSOR\HHVLV`1,/ 3UHYLRXV

 LLL  (PSOR\HHVWRFNRSWLRQVGHWDLOVDVRQWKH%DODQFH6KHHWGDWHDUHDVIROORZV Particulars For the year ended March 31, 2018 March 31, 2017 No. of WAEP No. of WAEP options# `* options# `* 2XWVWDQGLQJDWWKHEHJLQQLQJRIWKH\HDU 2,76,62,719 31.25   *UDQWHGGXULQJWKH\HDU ––  )RUIHLWHG/DSVHGGXULQJWKH\HDU 1,09,85,873 30.90   ([HUFLVHGGXULQJWKH\HDU 47,23,835 28.23   2XWVWDQGLQJDWWKHHQGRIWKH\HDU 1,19,53,011 32.77   ([HUFLVDEOHDWWKHHQGRIWKH\HDU 1,19,53,011 32.77   :$(3 :HLJKWHG$YHUDJH([HUFLVH3ULFH   1RRIRSWLRQVIRUSUHYLRXV\HDUKDYHEHHQUHJURXSHGUHFODVVL¿HGUHFWL¿HGDVDSSOLFDEOH

  LY  5DQJH RI H[HUFLVH SULFH DQG ZHLJKWHG DYHUDJH UHPDLQLQJ FRQWUDFWXDO OLIH IRU RSWLRQV RXWVWDQGLQJDWWKHHQGRIWKH\HDU Particulars Plan 2011 Plan 2013 Plan 2016 Plan 2017 5DQJHRIH[HUFLVHSULFHV     :HLJKWHGDYHUDJHUHPDLQLQJFRQWUDFWXDOOLIH 9HVWLQJSHULRG LQ\HDUV     ([HUFLVHSHULRGSRVWYHVWLQJ LQ\HDUV      Y  1R RWKHU LQVWUXPHQWV ZHUH JUDQWHG GXULQJ WKH \HDU RWKHU WKDQ WKH VWRFN RSWLRQV DV GLVFORVHG DERYH  YL  1RPRGL¿FDWLRQVZHUHPDGHWRWKHVFKHPHWKDWUHTXLUHGLVFORVXUHVXQGHU*XLGDQFH1RWHRQ ³(PSOR\HH6KDUH%DVHG3D\PHQWV´LVVXHGE\,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD  YLL  2WKHULQIRUPDWLRQUHJDUGLQJHPSOR\HHVKDUHEDVHGSD\PHQWSODQVLVDVEHORZ `LQODNK For the Year Ended Particulars March 31, 2018 March 31, 2017 :HLJKWHGDYHUDJHVKDUHSULFHGXULQJWKH\HDU 43.27  ([SHQVHDULVLQJIURPHPSOR\HHVKDUHEDVHGSD\PHQWSODQV Nil 1LO ([SHQVHDULVLQJIURPVKDUHDQGVWRFNRSWLRQSODQV Nil 1LO &ORVLQJEDODQFHRIOLDELOLW\IRUFDVKVWRFNDSSUHFLDWLRQSODQ Nil 1LO ([SHQVHDULVLQJIURPLQFUHDVHLQIDLUYDOXHRIOLDELOLW\IRUFDVK Nil 1LO VWRFNDSSUHFLDWLRQSODQ

NOTE “34” : EMPLOYEE BENEFITS 'H¿QHG&RQWULEXWLRQ3ODQV 7KH *URXS PDNHV 3URYLGHQW )XQG DQG 6XSHUDQQXDWLRQ )XQG FRQWULEXWLRQV WR GH¿QHG FRQWULEXWLRQ UHWLUHPHQW EHQH¿W SODQV IRU HOLJLEOH HPSOR\HHV 8QGHU WKH VFKHPHV WKH *URXS LV UHTXLUHG WR FRQWULEXWH D VSHFL¿HG SHUFHQWDJH RI WKH SD\UROO FRVWV WR IXQG WKH EHQH¿WV 7KH FRQWULEXWLRQV DV VSHFL¿HG XQGHU WKHODZDUHSDLGWRWKHSURYLGHQWIXQGVHWXSDVD7UXVWE\WKH*URXS7KH*URXSLVJHQHUDOO\OLDEOHIRU DQQXDOFRQWULEXWLRQVDQGDQ\GH¿FLHQF\LQLQWHUHVWFRVWFRPSDUHGWRLQWHUHVWFRPSXWHGEDVHGRQWKHUDWH RI LQWHUHVW GHFODUHG E\ WKH &HQWUDO *RYHUQPHQW XQGHU WKH (PSOR\HHV¶ 3URYLGHQW )XQG 6FKHPH  LV UHFRJQLVHGDVDQH[SHQVHLQWKH\HDULWLVGHWHUPLQHG 7KHSURYLGHQWIXQGVHWXSDVD7UXVWE\WKH*URXSPDQDJHVWKHFRQWULEXWLRQVIURPWKH*URXSDQGRWKHU SDUWLFLSDWLQJ VXEVLGLDULHV $V RI 0DUFK   WKH DFFXPXODWHG PHPEHUV¶ FRUSXV RI WKH *URXS LV ` ODNKZKHUHDVWKHWRWDOIDLUYDOXHRIWKHDVVHWVRIWKHIXQGDQGWKHWRWDODFFXPXODWHGPHPEHUV¶ FRUSXVLV`ODNKDQG`ODNKUHVSHFWLYHO\,QDFFRUGDQFHZLWKDQDFWXDULDOYDOXDWLRQWKHUH LV QR GH¿FLHQF\ LQ WKH LQWHUHVW FRVW DV WKH SUHVHQW YDOXH RI WKH H[SHFWHG IXWXUH HDUQLQJV RQ WKH IXQG LV JUHDWHU WKDQ WKH H[SHFWHG DPRXQW WR EH FUHGLWHG WR WKH LQGLYLGXDO PHPEHUV EDVHG RQ WKH H[SHFWHG JXDUDQWHHGUDWHRILQWHUHVWRI7KHDFWXDULDODVVXPSWLRQVLQFOXGHGLVFRXQWUDWHRI 7KH *URXS UHFRJQLVHG D FKDUJH RI `  ODNK 3UHYLRXV \HDU `  ODNK  IRU SURYLGHQW IXQG DQG IDPLO\ SHQVLRQ IXQG FRQWULEXWLRQ DQG `  ODNK 3UHYLRXV \HDU `  ODNK  IRU 6XSHUDQQXDWLRQ IXQG FRQWULEXWLRQLQWKH6WDWHPHQWRI3UR¿WDQG/RVV

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133 Annual Report 2017-18

3UR¿WDQG/RVV 5HFRQFLOLDWLRQRI%HQH¿W2EOLJDWLRQVDQG3ODQ$VVHWV ` LQODNK Particulars 2017-18 2016-17 &KDQJHLQ'H¿QHG%HQH¿W2EOLJDWLRQ 2SHQLQJ'H¿QHG%HQH¿W2EOLJDWLRQ 4,926  &XUUHQW6HUYLFH&RVW 772  ,QWHUHVW&RVW 348  $FTXLVLWLRQV&RVW &UHGLW 10 ± $FWXDULDO/RVVHV *DLQ (118)  %HQH¿WV3DLG (440)  &ORVLQJ'H¿QHG%HQH¿W2EOLJDWLRQ 5,498  Change in the Fair Value of Assets 2SHQLQJ)DLU9DOXHRI3ODQ$VVHWV 5,328  $FTXLVLWLRQ&RVW7UDQVIHULQ 10 ± ([SHFWHG5HWXUQRQ3ODQ$VVHWV 415  &RQWULEXWLRQVE\(PSOR\HU –  $FWXDULDO*DLQV /RVVHV (17)  %HQH¿WVSDLG (135)  &ORVLQJ)DLU9DOXHRI3ODQ$VVHWV 5,601  Composition of Plan Assets Investment Pattern *RYHUQPHQW%RQGV 44%  (TXLW\PXWXDOIXQGV 12%  %RQGV'HEHQWXUHV 43%  2WKHUV LQFOXGLQJDVVHWVXQGHU6FKHPHVRI,QVXUDQFH 1%  Total 100% 100% Reconciliation of present value of the obligation and the fair value of the plan assets )DLU9DOXHRISODQDVVHWVDWWKHHQGRIWKH\HDU 5,601  3UHVHQW YDOXH RI WKH GH¿QHG REOLJDWLRQV DW WKH HQG RI 5,498  WKH\HDU )XQGHGVWDWXV>6XUSOXV 'H¿FLW @ 103  1HW$VVHW /LDELOLW\ UHFRJQLVHGLQWKH%DODQFH6KHHW 103  Net Gratuity cost 6HUYLFH&RVW 772  ,QWHUHVWRQ'H¿QHGEHQH¿W2EOLJDWLRQ 348  ([SHFWHGUHWXUQRQSODQDVVHWV (415)  6HWWOHPHQW&RVW &UHGLW – ± 1HWDFWXDULDO JDLQ ORVVUHFRJQLVHGLQWKH\HDU (101)  1HW*UDWXLW\&RVW 5HIHUQRWH E 604  $FWXDO &RQWULEXWLRQ DQG EHQH¿W SD\PHQWV IRU the year $FWXDOEHQH¿WSD\PHQWV (440)  $FWXDOFRQWULEXWLRQV –  Assumptions 'LVFRXQW5DWH 7.70%  ([SHFWHG5DWHRI5HWXUQRQ3ODQ$VVHWV 8.00% p.a SD 6DODU\(VFDODWLRQ5DWH SDIRU¿UVW SDIRU¿UVW\HDUV years and 6% thereafter. DQGWKHUHDIWHU 0RUWDOLW\5DWH Indian Assured lives Mortality ,QGLDQ$VVXUHGOLYHV0RUWDOLW\   PRGL¿HG 8OW   PRGL¿HG 8OW :LWKGUDZDO5DWH 0-2 years - 10% \HDUV 3-4 years - 5% \HDUV 5-9 years - 2.5% \HDUV 10 years and more - 1% \HDUVDQGPRUH

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Experience History 2017-18 2016-17 2015-16 2014-15 2013-14 'H¿QHG%HQH¿W2EOLJDWLRQ (5,498)     3ODQ$VVHWV 5,601     )XQGHG6WDWXV 103     ([SHULHQFH*DLQ /RVV $GMXVWPHQW ±2Q3ODQ/LDELOLWLHV 53     ±2Q3ODQ$VVHWV (17)     $FWXULDO*DLQ /RVV GXHWRFKDQJHLQDVVXPSWLRQV 64     7KH*URXSH[SHFWVWRFRQWULEXWHDSSUR[LPDWHO\`ODNK 3UHYLRXV\HDU`ODNK WRWKHJUDWXLW\IXQG IRUWKH\HDU

Long-Term Service Awards : /RQJ7HUP6HUYLFHDZDUGLVDQHPSOR\HHEHQH¿WLQUHFRJQLWLRQIRUWKHLUOR\DOW\DQGFRQWLQXLW\RIVHUYLFH IRU ¿YH \HDUV DQG DERYH WKH VDPH LV DFWXDULDOO\ YDOXHG 8QIXQGHG  7KH /RQJ7HUP 6HUYLFH DZDUGV H[SHQVHIRU¿QDQFLDO\HDULV`ODNK 3UHYLRXV\HDU`ODNK DQGWKHSURYLVLRQDVDW0DUFK LV`ODNK 3UHYLRXV\HDU`ODNK 

NOTE “35” : Disclosure as required by Accounting Standard 18 (Related Party Disclosures). i. List of related parties and relationship:

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 Annual Report 2017-18

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139 Annual Report 2017-18

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NOTE “36” : 7KH *URXS DYDLOV IURP WLPH WR WLPH QRQFDQFHODEOH ORQJWHUP OHDVHV IRU RI¿FH SUHPLVHV LQFOXGLQJ RI¿FH IXUQLWXUH7KHWRWDORIIXWXUHPLQLPXPOHDVHSD\PHQWVWKDWWKH*URXSLVFRPPLWWHGWRPDNHLV `LQODNK As at As at Lease Payments March 31, 2018 March 31, 2017 :LWKLQRQH\HDU 67  /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV –  /DWHUWKDQ¿YH\HDUV –  7KHDPRXQWFKDUJHGWRZDUGVOHDVHUHQWDOV DVSDUWRI5HQWH[SHQGLWXUH LV`ODNK 3UHYLRXV\HDU `ODNK  7KH*URXSKDVJLYHQDVVHWVXQGHUQRQFDQFHOODEOHRSHUDWLQJOHDVHV7KHWRWDORIIXWXUHPLQLPXPOHDVH SD\PHQWVWKDWWKH*URXSLVFRPPLWWHGWRUHFHLYHLV `LQODNK As at As at Lease Payments March 31, 2018 March 31, 2017 :LWKLQRQH\HDU 20,259  /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV 40,649  /DWHUWKDQ¿YH\HDUV 1,759  $FFXPXODWHG'HSUHFLDWLRQRQOHDVHDVVHWVLV`ODNK 3UHYLRXV\HDU`ODNK  $FFXPXODWHG,PSDLUPHQWORVVHVRQWKHOHDVHGDVVHWV`1LO 3UHYLRXV\HDU`1LO 7KH GHWDLOV RI *URVV LQYHVWPHQWV XQHDUQHG ¿QDQFH LQFRPH LQ UHVSHFW RI DVVHWV JLYHQ XQGHU ¿QDQFH OHDVHDUHDVXQGHU `LQODNK Particulars 2017-18 2016-17 Gross Investments: ± :LWKLQRQH\HDU 16,385  ± /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV 30,283  ± /DWHUWKDQ¿YH\HDUV 533  Total 47,201 32,542 Unearned Finance Income: ± :LWKLQRQH\HDU 4,138  ± /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV 4,601  ± /DWHUWKDQ¿YH\HDUV 100 76 Total 8,839 6,250 Present Value of Rentals*: ± :LWKLQRQH\HDU 12,247  ± /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQ¿YH\HDUV 25,682  ± /DWHUWKDQ¿YH\HDUV 433  Total 38,362 26,292 7KH3UHVHQW9DOXHRI5HQWDOVUHSUHVHQWWKHFRPPRQIXWXUHRXWVWDQGLQJSULQFLSDO

 NOTE “37” : EARNINGS PER SHARE (EPS): Particulars 2017-18 2016-17 3UR¿WDIWHUWD[ `LQODNK   /HVV'LYLGHQGRQ3UHIHUHQFH6KDUHV LQFOXGLQJ `LQODNK   GLYLGHQGGLVWULEXWLRQWD[ 3UR¿WDIWHUWD[DYDLODEOHIRUHTXLW\VKDUHKROGHUV `LQODNK   :HLJKWHGDYHUDJHQXPEHURIHTXLW\VKDUHVXVHG 1RV   LQFRPSXWLQJ%DVLF(36 )DFHYDOXHRIHTXLW\VKDUHV Rupees   Basic EPS Rupees 2.08 1.04 3UR¿WDIWHUWD[DYDLODEOHIRUHTXLW\VKDUHKROGHUV `LQODNK   :HLJKWHG$YHUDJH1XPEHURIHTXLW\VKDUHVXVHG 1RV   LQFRPSXWLQJ%DVLFHDUQLQJVSHUVKDUH $GG3RWHQWLDOZHLJKWHGDYHUDJHQXPEHURI 1RV   HTXLW\VKDUHV :HLJKWHGDYHUDJHQXPEHURIVKDUHVLQ 1RV   FRPSXWLQJ'LOXWHG(36 )DFHYDOXHRIHTXLW\VKDUHV Rupees   Diluted EPS Rupees 2.04 1.02 Notes :   6KDUHVXQGHUWKH(6236FKHPHVDUHLVVXHGDWLQWULQVLFYDOXH>5HIHU1RWH [Y @   7KHHDUQLQJVSHUHTXLW\VKDUHLVFDOFXODWHGRQWKHEDVLVRIQHWSUR¿WIRUWKH\HDUDIWHUGHGXFWLQJWKH DPRXQWRISUHIHUHQFHGLYLGHQGVRQFXPXODWLYHUHGHHPDEOHSUHIHUHQFHVKDUHVDQGWD[HVDWWULEXWDEOH WKHUHWRQHWRIVHWRIIDYDLODEOH

NOTE “38” : Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial Statements to Schedule III to the Companies Act, 2013 `,QODNK 2017-18 2016-17 2017-18 2016-17 Net assets, i.e., Net assets, i.e., 6KDUHRISUR¿WRU 6KDUHRISUR¿WRU total assets minus total assets minus loss loss total liabilities total liabilities Name of the entity As % of Amount As % of Amount As % of Amount As % of Amount consoli- consoli- consolidat- consolidat- dated net dated net HGSUR¿W HGSUR¿W assets assets or loss or loss Parent: 7DWD&DSLWDO/LPLWHG         Subsidiaries Indian 7DWD&DSLWDO)LQDQFLDO6HUYLFHV/LPLWHG         7DWD&DSLWDO+RXVLQJ)LQDQFH/LPLWHG         7DWD&OHDQWHFK&DSLWDO/LPLWHG         7DWD6HFXULWLHV/LPLWHG        167 7&7UDYHO 6HUYLFHV/LPLWHG ± ±       7DWD&DSLWDO)RUH[/LPLWHG ± ±  66     7DWD&DSLWDO*URZWK)XQG        

 Annual Report 2017-18

`,QODNK 2017-18 2016-17 2017-18 2016-17 Net assets, i.e., Net assets, i.e., 6KDUHRISUR¿WRU 6KDUHRISUR¿WRU total assets minus total assets minus loss loss total liabilities total liabilities Name of the entity As % of Amount As % of Amount As % of Amount As % of Amount consoli- consoli- consolidat- consolidat- dated net dated net HGSUR¿W HGSUR¿W assets assets or loss or loss Foreign 7DWD&DSLWDO3WH/LPLWHG         Minority Interests in all subsidiaries Indian 7DWD&DSLWDO*URZWK)XQG         7DWD&OHDQWHFK&DSLWDO/LPLWHG         Foreign 7DWD&DSLWDO3WH/LPLWHG         Associates (Investment as per the equity method) Indian 7DWD&DSLWDO+HDOWKFDUH)XQG         7DWD&DSLWDO6SHFLDO6LWXDWLRQV)XQG      168   7DWD&DSLWDO,QQRYDWLRQV)XQG         7DWD$XWR&RPS6\VWHPV/LPLWHG         ,QWHUQDWLRQDO$VVHW5HFRQVWUXFWLRQ &RPSDQ\3ULYDWH/LPLWHG ± ±    39   -RLQW9HQWXUHV DVSHUSURSRUWLRQDWH consolidation) 1HFWDU/R\DOW\0DQDJHPHQW,QGLD/LPLWHG ±±± ±±±±± 5HIHU1RWH Eliminations         Total 100.00 6,64,668 100.00 6,04,373 100.00 77,633 100.00 45,954 &HDVHGWREHDQ$VVRFLDWHZLWKHIIHFWIURP0DUFK &HDVHGWREH6XEVLGLDU\ZLWKHIIHFWIURP2FWREHU

NOTE “39” : SEGMENT REPORTING ,QDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUG 6HJPHQW5HSRUWLQJ WKH*URXSKDVLGHQWL¿HGWKUHHEXVLQHVV VHJPHQWV LH )LQDQFLQJ $FWLYLW\ ,QYHVWPHQW $FWLYLW\ DQG 2WKHUV DQG RQH *HRJUDSKLFDO 6HJPHQW YL] ,QGLDDVVHFRQGDU\VHJPHQW `LQODNK For the Year Ended Particulars March 31, 2018 March 31, 2017 I Segment Revenue D  )LQDQFLQJ$FWLYLW\ 6,51,094  E  ,QYHVWPHQW$FWLYLW\ 29,848  F  2WKHUV 61,380  Total 7,42,322 6,68,435 /HVV,QWHU6HJPHQW5HYHQXH 41,667  $GG,QWHUHVWRQ,QFRPH7D[UHIXQG 935  Total Income 7,01,590 6,32,423

 `LQODNK For the Year Ended Particulars March 31, 2018 March 31, 2017 II Segment Results D  )LQDQFLQJ$FWLYLW\ 1,21,981  E  ,QYHVWPHQW$FWLYLW\ 5,878  F  2WKHUV 5,113  Total 1,32,972 84,259 /HVV8QDOORFDWHG&RUSRUDWH([SHQVHV 12,724  3UR¿WEHIRUHWD[DWLRQ 1,20,248 71,045 /HVV3URYLVLRQIRUWD[DWLRQ 41,331  3UR¿WDIWHUWD[DWLRQ 78,917 47,008 `LQODNK As at Particulars March 31, 2018 March 31, 2017 III Segment Assets D  )LQDQFLQJ$FWLYLW\ 61,18,364  E  ,QYHVWPHQW$FWLYLW\ 1,27,185  F  2WKHUV 96,356  G  8QDOORFDWHG 66,861  Total 64,08,766 54,91,724 IV Segment Liabilities D  )LQDQFLQJ$FWLYLW\ 55,66,617  E  ,QYHVWPHQW$FWLYLW\ 42,324  F  2WKHUV 99,729  G  8QDOORFDWHG 35,428  Total 57,44,098 48,87,351 V Capital Expenditure LQFOXGLQJ&DSLWDO:RUNLQ3URJUHVVDQGLQWDQJLEOHVXQGHU development) D  )LQDQFLQJ$FWLYLW\ 1,386 ± E  ,QYHVWPHQW$FWLYLW\ – ± F  2WKHUV 27,359  G  8QDOORFDWHG 3,595  Total 32,340 33,385 VI Depreciation and amortisation D  )LQDQFLQJ$FWLYLW\ 1,089 867 E  ,QYHVWPHQW$FWLYLW\ – ± F  2WKHUV 21,948  G  8QDOORFDWHG 1,784  Total 24,821 15,394 9,, 6LJQL¿FDQW1RQ&DVK([SHQVHV2WKHUWKDQ'HSUHFLDWLRQ D  )LQDQFLQJ$FWLYLW\ 47,301  E  ,QYHVWPHQW$FWLYLW\ (858)  F  2WKHUV 469  G  8QDOORFDWHG –  Total 46,912 68,947

 Annual Report 2017-18

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 Annual Report 2017-18

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153 Annual Report 2017-18

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 Annual Report 2017-18

BALANCE SHEET AS AT MARCH 31, 2018 (`LQODNK Note As at As at Particulars No. March 31, 2018 March 31, 2017 I EQUITY AND LIABILITIES 1. Shareholders’ Funds (a) Share Capital 3 4,68,787  E  5HVHUYHVDQG6XUSOXV 4 46,529  Total Shareholders’ Funds 5,15,316 5,08,360 2. Non-current liabilities D  /RQJWHUPERUURZLQJV 5 57,500  E  2WKHUORQJWHUPOLDELOLWLHV  16,526  F  /RQJWHUPSURYLVLRQV  355  Total Non-current liabilities 74,381 85,694 3. Current liabilities D  6KRUWWHUPERUURZLQJV  51,932  E  7UDGHSD\DEOHV  L  WRWDORXWVWDQGLQJGXHVRIPLFURHQWHUSULVHVDQG  D ± ± VPDOOHQWHUSULVHV LL  WRWDORXWVWDQGLQJGXHVRIFUHGLWRUVRWKHUWKDQ 1,042  PLFURHQWHUSULVHVDQGVPDOOHQWHUSULVHV F  2WKHUFXUUHQWOLDELOLWLHV  84,597  G  6KRUWWHUPSURYLVLRQV 11 566  Total Current liabilities 1,38,137 76,250 Total Equity and Liabilities 7,27,834 6,70,304

II ASSETS 1. Non-Current assets D  3URSHUW\SODQWDQGHTXLSPHQW  L  7DQJLEOHDVVHWV 10,913  LL  &DSLWDOZRUNLQSURJUHVV – 1 10,913  E  1RQFXUUHQW,QYHVWPHQWV 13 6,77,816  F  'HIHUUHGWD[DVVHWV 14 472  G  /RQJWHUPORDQVDQGDGYDQFHV 15 3,349  H  2WKHUQRQFXUUHQWDVVHWV  95  Total Non-current assets 6,92,645 6,06,301 2. Current assets D  7UDGHUHFHLYDEOHV  666  E  &DVKDQGFDVKHTXLYDOHQWV  49  F  6KRUWWHUPORDQVDQGDGYDQFHV  34,288  G  2WKHUFXUUHQWDVVHWV  186  Total Current assets 35,189 64,003 Total Assets 7,27,834 6,70,304 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKH)LQDQFLDO6WDWHPHQWV 

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 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018 (`LQODNK For the year For the year Note Particulars ended ended No. March 31, 2018 March 31, 2017

, 5HYHQXHIURPRSHUDWLRQV  36,528 

,, 3UR¿WRQVDOHRIQRQFXUUHQWLQYHVWPHQWV 6,124 

,,, Other income  4,996 3,355 IV Total Revenue (I + II + III) 47,648 42,482

V Expenses:

)LQDQFHFRVWV  14,094 

(PSOR\HHEHQH¿WVH[SHQVHV  7,358 

2WKHURSHUDWLQJH[SHQVHV  4,988 4,443

'HSUHFLDWLRQ  698 

$PRUWLVDWLRQRILVVXHH[SHQVHV 113  Total Expenses 27,251 23,577

VI 3UR¿WEHIRUHWD[IRUWKH\HDU ,99 20,397 18,905 VII Tax expense :

 &XUUHQWWD[ 1,493 

 'HIHUUHGWD[ (111) (43)

 0$7FUHGLWHQWLWOHPHQW (1,163) ± Total Tax expense 219 889

VIII 3UR¿WDIWHUWD[IRUWKH\HDU 9,9,, 20,178 18,016 IX Earnings per equity share: 31

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 Annual Report 2017-18

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2018 (`LQODNK For the year For the year Note Particulars ended ended No. March 31, 2018 March 31, 2017 1. CASH FLOW FROM OPERATING ACTIVITIES 3UR¿WEHIRUHWD[ 20,397  Adjustments for : 'LYLGHQGLQFRPH (23,261)  ,QWHUHVWLQFRPH (8,432)  'LVFRXQWLQJFKDUJHVRQ&RPPHUFLDO3DSHU 4,163  ,QWHUHVWH[SHQVHRQ1RQ&RQYHUWLEOH'HEHQWXUHV 9,918  3URYLVLRQIRUHPSOR\HHEHQH¿WV 48  3URYLVLRQDJDLQVW6WDQGDUG$VVHWV 89  3URYLVLRQIRUGLPLQXWLRQLQYDOXHRILQYHVWPHQWV 2,628  3URYLVLRQIRU%DG 'RXEWIXO'HEWV 171 ± 'LVWULEXWLRQRI,QWHUHVWRQ)L[HG'HSRVLWVE\3(IXQGV (55)  ,QWHUHVWH[SHQVHVRQVKDUHDSSOLFDWLRQPRQH\ 12 ± $PRUWLVDWLRQRIVKDUHLVVXHH[SHQVHV 113  'HSUHFLDWLRQ 698  3UR¿WRQVDOHRIQRQFXUUHQWLQYHVWPHQWV (6,124)  ,QWHUHVWRQ,QFRPH7D[5HIXQG (607) ± 2SHUDWLQJ3UR¿WEHIRUHZRUNLQJFDSLWDOFKDQJHVDQG (242) (494) adjustments for interest paid, interest received and dividend received Adjustments for : 'HFUHDVH ,QFUHDVH LQ7UDGHUHFHLYDEOHV 178 (534) 'HFUHDVHLQ/RDQVDQGDGYDQFHVDQG2WKHUFXUUHQW 28,030  DVVHWV 'HFUHDVH ,QFUHDVHLQ7UDGHSD\DEOHV (782)  ,QFUHDVH 'HFUHDVH LQ2WKHUOLDELOLWLHVDQG 3,299 (551) SURYLVLRQV Cash used in operations before adjustments for 30,483 39,856 interest paid, interest received and dividend received ,QWHUHVWSDLG (10,087)  ,QWHUHVWUHFHLYHG 8,847  ,QWHUHVWUHFHLYHGRQ,QFRPH7D[UHIXQG 607 ± 'LYLGHQGUHFHLYHG 23,261  Cash used in operations 53,111 59,186 7D[HVSDLG (1,197)  NET CASH FROM OPERATING ACTIVITIES 51,914 57,864

 CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2018 (contd...)

(`LQODNK For the year For the year Note Particulars ended ended No. March 31, 2018 March 31, 2017 2. CASH FLOW FROM INVESTING ACTIVITIES 3XUFKDVHRISURSHUW\SODQW HTXLSPHQWV LQFOXGLQJ (149)  FDSLWDODGYDQFHV 3URFHHGVIURPVDOHRISURSHUW\SODQW HTXLSPHQWV 3  ,QWHUHVWLQFRPHRQ¿[HGGHSRVLW 55  ,QYHVWPHQWLQVXEVLGLDULHVDQGDVVRFLDWHV (1,00,100)  3URFHHGVIURPGLYHVWPHQWVE\3()XQGV 4,611  ,QYHVWPHQWLQ3()XQGV (870)  ,QYHVWPHQWLQRWKHUHQWLWLHV (15) ± ,QYHVWPHQWLQPXWXDOIXQGV (11)  3URFHHGVIURPVDOHRILQYHVWPHQWVLQVXEVLGLDULHVDQG 10,780  DVVRFLDWHV 3URFHHGVIURPVDOHRILQYHVWPHQWVLQRWKHUHQWLWLHV 3,083 ± CASH USED IN INVESTING ACTIVITIES (82,613) (88,240) 3. CASH FLOW FROM FINANCING ACTIVITIES &ROOHFWLRQRIORDQJLYHQWRHPSOR\HHVIRU(623 – 4 ,VVXHRISUHIHUHQFHVKDUHV 51,475  5HGHPSWLRQRISUHIHUHQFHVKDUHV (48,435) ± ,QWHUHVWRQVKDUHDSSOLFDWLRQPRQH\SHQGLQJDOORWPHQW (12) ± 'LYLGHQGSDLGRQSUHIHUHQFHVKDUHVLQFOXGLQJGLYLGHQG (15,649)  GLVWULEXWLRQWD[ 6KDUHLVVXHH[SHQVHV (613)  1&'LVVXHH[SHQVHV (89)  3URFHHGVIURPORQJWHUPERUURZLQJV 55,000  3D\PHQWRIVKRUWWHUPERUURZLQJV (1,72,090)  3URFHHGVIURPVKRUWWHUPERUURZLQJV 1,61,065  NET CASH FROM FINANCING ACTIVITIES 30,652 29,410 Net (decrease) in cash and cash equivalents (47) (966) &$6+$1'&$6+(48,9$/(176$6$77+(%(*,11,1*2)7+(<($5 96 288 &$6+$1'&$6+(48,9$/(176210(5*(5 – 774 &$6+$1'&$6+(48,9$/(176$6$77+(%(*,11,1*2)7+(<($5 96 1,062 &$6+$1'&$6+(48,9$/(176$6$77+((1'2)7+(<($5  49 96 6HHDFFRPSDQ\LQJQRWHVIRUPLQJSDUWRIWKH¿QDQFLDOVWDWHPHQWV 

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 Annual Report 2017-18

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 Annual Report 2017-18

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 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “3” (` in lakh)

Face As at March 31, 2018 As at March 31, 2017 SHARE CAPITAL value Per No. of No. of ` ` in lakh ` in lakh Unit shares shares AUTHORISED $  (TXLW\6KDUHV  4,75,00,00,000 4,75,000   %  3UHIHUHQFH6KDUHV  3,25,00,000 3,25,000   8,00,000 8,00,000 ISSUED $  (TXLW\6KDUHV  2,82,60,18,170 2,82,602   %  &XPXODWLYH5HGHHPDEOH 3UHIHUHQFH6KDUHV 'LYLGHQGUDWH  20,71,066 20,711   'LYLGHQGUDWH  70,49,891 70,499   'LYLGHQGUDWH  65,00,000 65,000   'LYLGHQGUDWH  14,97,500 14,975 ±± 'LYLGHQGUDWH  7,50,000 7,500 ±± 'LYLGHQGUDWH  7,50,000 7,500 ±± 4,68,787 4,72,321 SUBSCRIBED & PAID UP $  (TXLW\6KDUHV  2,82,60,18,170 2,82,602   %  &XPXODWLYH5HGHHPDEOH 3UHIHUHQFH6KDUHV 'LYLGHQGUDWH  20,71,066 20,711   'LYLGHQGUDWH  70,49,891 70,499   'LYLGHQGUDWH  65,00,000 65,000   'LYLGHQGUDWH  14,97,500 14,975 ±± 'LYLGHQGUDWH  7,50,000 7,500 ±± 'LYLGHQGUDWH  7,50,000 7,500 ±± Total 4,68,787 4,65,747

 NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “3” (Continued) Face No. of 3(a) Reconciliation of number of shares outstanding value Per ` in lakh shares Unit ` Opening Share Capital as on April 1, 2016 $  (TXLW\6KDUHV    %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    'LYLGHQG5DWH    4,22,247 Additions during the year $  (TXLW\6KDUHV  ± ± %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH    Closing Share Capital as on March 31, 2017 $  (TXLW\6KDUHV    %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    4,65,747 Additions during the year $  (TXLW\6KDUHV  ± ± %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH  ± ± 'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    Redemptions during the year $  (TXLW\6KDUHV  ± ± %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    Closing Share Capital as on March 31, 2018 $  (TXLW\6KDUHV    %  &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV 'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    'LYLGHQG5DWH    4,68,787

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “3” (Continued) 3(b) Rights, preferences and restrictions attached to Equity Shares  7KH &RPSDQ\ KDV RQH FODVV RI HTXLW\ VKDUHV KDYLQJ D SDU YDOXH RI ` SHU VKDUH (DFK VKDUHKROGHU LV HOLJLEOH IRU RQH YRWH SHU VKDUH KHOG 7KH GLYLGHQG SURSRVHG E\ WKH %RDUG RI 'LUHFWRUV LI DQ\ LV VXEMHFW WR WKH DSSURYDO RI WKH VKDUHKROGHUV DW WKH HQVXLQJ $QQXDO *HQHUDO 0HHWLQJH[FHSWLQFDVHRILQWHULPGLYLGHQG,QWKHHYHQWRIOLTXLGDWLRQWKHHTXLW\VKDUHKROGHUVDUH HOLJLEOHWRUHFHLYHWKHUHPDLQLQJDVVHWVRIWKH&RPSDQ\DIWHUGLVWULEXWLRQRIDOOSUHIHUHQWLDODPRXQWV LQSURSRUWLRQWRWKHLUVKDUHKROGLQJ

3(c) Investment by Tata Sons Limited (the Holding Company) and its Subsidiaries/Associates/JVs. No. of equity Name of company Particulars of issue ` in lakh shares Opening Balance as on April 01, 2016   Tata Sons Limited $GG3XUFKDVHG   (the Holding Closing Balance as on March 31, 2017   Company) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016   Tata Investment $GG3XUFKDVHG ± ± Corporation Limited Closing Balance as on March 31, 2017   (Subsidiary of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016   Tata Industries $GG3XUFKDVHG ± ± Limited (Subsidiary Closing Balance as on March 31, 2017   of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016   Tata International $GG3XUFKDVHG ± ± Limited Closing Balance as on March 31, 2017   (Subsidiary of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016  433 Tata Motors Limited $GG3XUFKDVHG ± ± (Associate of Tata Closing Balance as on March 31, 2017  433 Sons Limited)- $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  433 Opening Balance as on April 01, 2016   Tata Chemicals $GG3XUFKDVHG ± ± Limited Closing Balance as on March 31, 2017   (Associate of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  

 NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “3” (Continued) No. of equity Name of company Particulars of issue ` in lakh shares Opening Balance as on April 01, 2016   Tata Global $GG3XUFKDVHG ± ± Beverages Limited Closing Balance as on March 31, 2017   (Associate of Tata Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018   Opening Balance as on April 01, 2016   $GG3XUFKDVHG   Total Closing Balance as on March 31, 2017   $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  

8.33% Cumulative Redeemable Preference Shares Face Value ` 1,000 fully paid up No. of Name of company Particulars of issue preference ` in lakh shares Opening Balance as on April 1, 2016   Trent Limited $GG3XUFKDVHG ± ± (Associate of Tata Closing Balance as on March 31, 2017   Sons Limited) $GG3XUFKDVHG ± ± Closing Balance as on March 31, 2018  

7.50% Cumulative Redeemable Preference Shares Face Value ` 1,000 fully paid up No. of Name of company Particulars of issue preference ` in lakh shares Opening Balance as on April 1, 2016 ±± Voltas Limited $GG3XUFKDVHG ± ± (Associate of Tata Closing Balance as on March 31, 2017 ±± Sons Limited) $GG3XUFKDVHG   Closing Balance as on March 31, 2018  

7.33% Cumulative Redeemable Preference Shares Face Value ` 1,000 fully paid up No. of Name of company Particulars of issue preference ` in lakh shares Opening Balance as on April 1, 2016 ±± Voltas Limited $GG3XUFKDVHG ± ± (Associate of Tata Closing Balance as on March 31, 2017 ±± Sons Limited) $GG3XUFKDVHG   Closing Balance as on March 31, 2018  

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “3” (Continued) 3(d) List of Shareholders holding more than 5% Equity Shares as at March 31, 2018 March 31, 2017 Name of Shareholder No. of Shares No. of Shares % of Holding % of Holding held held 7DWD6RQV/LPLWHG 2,63,44,33,946 93.22  

3(e) Rights, preferences and restrictions attached to Preference Shares  7KH &RPSDQ\ KDV LVVXHG &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV ³&536´  RI IDFH YDOXH `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

No. of Early Redemption Particulars Tranche Allotment Date Redemption Date Shares Date * $  $XJXVW $XJXVW 1$ &XPXODWLYH 5HGHHPDEOH3UHIHUHQFH %  2FWREHU 2FWREHU 1$ ` 6KDUHVRI HDFK C  'HFHPEHU 'HFHPEHU 1$ LVVXHGDWSUHPLXPRI` SHUVKDUHDQGUHGHHPDEOH '  -DQXDU\ -DQXDU\ 1$ DWDSUHPLXPRI`SHU (  )HEUXDU\ )HEUXDU\ 1$ VKDUH )  0DUFK 0DUFK 1$

&XPXODWLYH 0  $XJXVW $XJXVW 6HSWHPEHU 5HGHHPDEOH3UHIHUHQFH 1  $SULO $SULO 6HSWHPEHU ` 6KDUHVRI HDFK O  6HSWHPEHU 6HSWHPEHU 6HSWHPEHU 3  6HSWHPEHU 6HSWHPEHU 1RYHPEHU 4  6HSWHPEHU 6HSWHPEHU 1RYHPEHU 5  2FWREHU 2FWREHU 1RYHPEHU &XPXODWLYH S  2FWREHU 2FWREHU 1RYHPEHU 5HGHHPDEOH3UHIHUHQFH T 6KDUHVRI`HDFK  0DUFK 0DUFK 0D\ 8  -XO\ -XO\ 2FWREHU 9  -XO\ -XO\ 2FWREHU W  -XO\ -XO\ 2FWREHU &XPXODWLYH X  -XO\ -XO\ 2FWREHU 5HGHHPDEOH3UHIHUHQFH <  $XJXVW $XJXVW 2FWREHU 6KDUHVRI`HDFK &XPXODWLYH Z  6HSWHPEHU 6HSWHPEHU -DQXDU\ 5HGHHPDEOH3UHIHUHQFH   6KDUHVRI`HDFK &XPXODWLYH $$  6HSWHPEHU 6HSWHPEHU -DQXDU\ 5HGHHPDEOH3UHIHUHQFH   6KDUHVRI`HDFK Total 1,86,18,457

 NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “3” (Continued)  )RU&XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHV&XPXODWLYH5HGHHPDEOH3UHIHUHQFH 6KDUHV  &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV  &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH6KDUHV&XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHVRI`HDFKWKH&536 KROGHUKDVD3XW2SWLRQDQGWKH&RPSDQ\KDVD&DOO2SWLRQWRVHHNHDUO\UHGHPSWLRQRIWKH&536 E\WKHGDWHVDVVSHFL¿HG

Tranches of Cumulative Redeemable Preference Shares (“CRPS”) redeemed during the year  7KH &RPSDQ\ KDV H[HUFLVHG LWV FDOO RSWLRQ RQ &536 RI IDFH YDOXH `  HDFK ZKLFK ZHUH DOORWHG DQG UHGHHPDEOH DW SDU ZLWKLQ WKH UDQJH RI (DUO\ 5HGHPSWLRQ 'DWHV7KH VDLG &536 ZHUH UHGHHPHGDORQJZLWKWKHSURUDWHGGLYLGHQGXSWRWKHGDWHRIUHGHPSWLRQ

No. of Actual Redemption Original Redemption Particulars Tranche Allotment Date Shares Date Date G  -XQH -XO\ -XQH +  0D\ -XO\ 0D\ &XPXODWLYH ,  -XO\ 6HSWHPEHU -XO\ 5HGHHPDEOH3UHIHUHQFH 6KDUHVRI`HDFK J  6HSWHPEHU -XO\ 6HSWHPEHU K  1RYHPEHU -DQXDU\ 1RYHPEHU /  $SULO -DQXDU\ 0DUFK Total 48,43,510

3(f) List of Shareholders holding more than 5% Preference Shares as at March 31, 2018 March 31, 2017 Name of Shareholder No. of No. of % of Holding % of Holding Shares held Shares held 12.50% Cumulative Redeemable Preference Shares of ` 1,000 each $]LP3UHPML7UXVW 3,33,333    :LSUR(QWHUSULVHV3YW/WG   ± ± ,QWHUQDWLRQDO7UDFWRUV/WG     8.33% Cumulative Redeemable Preference Shares of ` 1,000 each 6KUHH&HPHQWV/LPLWHG     7.50% Cumulative Redeemable Preference Shares of ` 1,000 each 6KUHH&HPHQW/WG     :LSUR(QWHUSULVHV3ULYDWH/LPLWHG     ,QWHUQDWLRQDO7UDFWRUV/WG ± ±   $GXUMHH$QG%URV3YW/WG ± ±   7.33% Cumulative Redeemable Preference Shares of ` 1,000 each +LQGXVWDQ&RPSRVLWV/LPLWHG   ± ± Simran and Shanaya Company   ± ± /LPLWHG 7.10% Cumulative Redeemable Preference Shares of ` 1,000 each &ODULV/LIHVFLHQFHV/WG   ± ± +LQGXVWDQ&RPSRVLWV/LPLWHG   ± ±

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “4” (`LQODNK As at As at RESERVES AND SURPLUS March 31, 2018 March 31, 2017 (a) Capital Redemption Reserve 2SHQLQJ%DODQFH 575  Closing Balance 575 575 (b) Securities Premium Account 2SHQLQJ%DODQFH 14,144  /HVV7UDQVIHUWR6WDWHPHQWRI3UR¿WDQG/RVVSXUVXDQWWR –  6FKHPHRI5HGXFWLRQRI6KDUH&DSLWDO 6HFXULWLHV3UHPLXP $FFRXQW  5HIHU1RWH /HVV$GMXVWPHQWRIVKDUHLVVXHH[SHQVHV (613)  Closing Balance 13,531 14,144 (c) Special Reserve Account/Statutory Reserve 2SHQLQJ%DODQFH 15,839  $GG7UDQVIHUIURP6XUSOXVLQWKH6WDWHPHQWRI3UR¿WDQG 4,036  /RVV 5HIHU)RRWQRWH Closing Balance 19,875 15,839 (d) Capital Reserve 2SHQLQJ%DODQFH 93 ± $GG&UHDWHGRQ6FKHPHRI$PDOJDPDWLRQ –  Closing Balance 93 93 H  6XUSOXVLQ6WDWHPHQWRI3UR¿WDQG/RVV 2SHQLQJ%DODQFH 11,962  $GG,QFUHDVHLQEDODQFHRQ6FKHPHRI$PDOJDPDWLRQ QHW –  RIWD[HV $GG3UR¿WIRUWKH\HDU 20,178  3UR¿WDYDLODEOHIRUDSSURSULDWLRQV 32,140 29,275 /HVV$SSURSULDWLRQV 7UDQVIHUWR6SHFLDO5HVHUYH$FFRXQW 5HIHU)RRWQRWH   'LYLGHQGRQ3UHIHUHQFH6KDUHVLQFOXGLQJGLYLGHQGGLVWULEXWLRQWD[  (19,685)  (17,313) 5HIHU)RRWQRWHWR Closing Balance 12,455 11,962 TOTAL 46,529 42,613 Footnotes:- 7KHDPRXQWDSSURSULDWHGRXWRIVXUSOXVLQWKH6WDWHPHQWRI3UR¿WDQG/RVVLVDVXQGHU   7UDQVIHU WR 6SHFLDO 5HVHUYH `  ODNK 3UHYLRXV

 NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “5” (`LQODNK As at As at LONG-TERM BORROWINGS March 31, 2018 March 31, 2017 D  'HEHQWXUHV XQVHFXUHG  1RQ&RQYHUWLEOH'HEHQWXUHV 1&'V  5HIHUQRWH D 57,500  Total 57,500 

NOTE “5(a)” Particulars of Privately Placed Unsecured Non-Convertible Debentures (“NCDs”) outstanding as on March 31, 2018 Number As at As at Description of NCD Issue Date Redemption Date of March 31, 2018 March 31, 2017 NCDs ` in lakh ` in lakh 7&/8QVHFXUHG1&'$ -XQH -XQH  20,000  )< 7&/8QVHFXUHG1&'% -XO\ -XO\  20,000  )< 7&/8QVHFXUHG1&'& -XO\ -XO\  10,000  )< 7&/8QVHFXUHG1&'' $XJXVW $XJXVW  22,500  )<2SWLRQ, 7&/8QVHFXUHG1&'' $XJXVW $XJXVW  2,500  )<2SWLRQ,, 7&/8QVHFXUHG1&'$ $SULO $SULO  2,500 ± )< 7&/8QVHFXUHG1&'% 0D\ 0D\  22,500 ± )< 7&/8QVHFXUHG1&'& -XQH -XQH  10,000 ± )< 7&/8QVHFXUHG1&'' 6HSWHPEHU 0DUFK  20,000 ± )< TOTAL 1,30,000 75,000 2IZKLFKFXUUHQWPDWXULWLHVFODVVL¿HGXQGHU³2WKHU&XUUHQWOLDELOLWLHV´LQQRWH  – TOTAL 57,500 75,000 Note: &RXSRQ UDWH RI DERYH RXWVWDQGLQJ DV DW 0DUFK   YDULHV IURP  WR  3UHYLRXV

NOTE “6” (`LQODNK As at As at OTHER LONG-TERM LIABILITIES March 31, 2018 March 31, 2017 D  3UHPLXP RQ UHGHPSWLRQ SD\DEOH WR SUHIHUHQFH 10,355  VKDUHKROGHUV E  6HFXULW\GHSRVLW 6,171 ± Total 16,526 10,355

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “7” (`LQODNK As at As at LONG - TERM PROVISIONS March 31, 2018 March 31, 2017 D  3URYLVLRQIRUHPSOR\HHDQGUHWLUHPHQWEHQH¿WV 305  E  &RQWLQJHQWSURYLVLRQDJDLQVWVWDQGDUGDVVHWV 50  5HIHU1RWH L Total 355 339

NOTE “8” (`LQODNK As at As at SHORT-TERM BORROWINGS March 31, 2018 March 31, 2017 D  2WKHUORDQVDQGDGYDQFHV XQVHFXUHG &RPPHUFLDOSDSHUV 5HIHUQRWH D >1HWRIXQDPRUWLVHGGLVFRXQWRI`ODNK 51,932  DVDW0DUFK`ODNK ] E  %DQN2YHUGUDIW VHFXUHG –  Total 51,932 62,203

NOTE “8(a)” 'LVFRXQWRQ&RPPHUFLDOSDSHUVYDULHVIURPWR 3UHYLRXV

As at As at TRADE PAYABLES March 31, 2018 March 31, 2017 2WKHUWKDQPLFURHQWHUSULVHVDQGVPDOOHQWHUSULVHV 1,042  D  $FFUXHGH[SHQVHV Total 1,042 1,821 Note - 7KH LQIRUPDWLRQ DV UHTXLUHG WR EH GLVFORVHG XQGHU WKH 0LFUR 6PDOO DQG 0HGLXP (QWHUSULVHV 'HYHORSPHQW$FWKDVEHHQGHWHUPLQHGWRWKHH[WHQWVXFKSDUWLHVKDYHEHHQLGHQWL¿HGRQWKHEDVLV RI LQIRUPDWLRQ DYDLODEOH ZLWK WKH &RPSDQ\ 7KH DPRXQW RI SULQFLSDO DQG LQWHUHVW RXWVWDQGLQJ GXULQJ WKH \HDULVJLYHQEHORZ

NOTE “9(a)” (`LQODNK

TOTAL OUTSTANDING DUES OF MICRO ENTERPRISES As at As at AND SMALL ENTERPRISES March 31, 2018 March 31, 2017 D  3ULQFLSDODPRXQWDQGLQWHUHVWWKHUHRQUHPDLQLQJXQSDLGDW – ± WKHHQGRI\HDU E  ,QWHUHVWSDLGLQFOXGLQJSD\PHQWPDGHEH\RQGDSSRLQWHG – ± day during the year F  ,QWHUHVWGXHDQGSD\DEOHIRUGHOD\GXULQJWKH\HDU – ± G  $PRXQWRILQWHUHVWDFFUXHGDQGXQSDLGDVDW\HDUHQG – ± H  7KHDPRXQWRIIXUWKHULQWHUHVWGXHDQGSD\DEOHHYHQLQ – ± WKHVXFFHHGLQJ\HDU Total ––

 NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “10” (`LQODNK As at As at OTHER CURRENT LIABILITIES March 31, 2018 March 31, 2017 D  &XUUHQWPDWXULWLHVRIORQJWHUPERUURZLQJV XQVHFXUHG  72,500 ± 1RQ&RQYHUWLEOH'HEHQWXUHV 1&'V  5HIHUQRWH D E  ,QWHUHVWDFFUXHGEXWQRWGXH 7,797  F  6HFXULW\GHSRVLW –  G  $FFUXHGHPSOR\HHEHQH¿WVH[SHQVH 3,432  H  ,QFRPHUHFHLYHGLQDGYDQFH 539  I  6WDWXWRU\GXHV 325  J  8QSDLGGLYLGHQG 0* ± K  2WKHUSD\DEOHV 4 4 Total 84,597 11,728 $PRXQWOHVVWKDQ`

NOTE “11” (`LQODNK As at As at SHORT - TERM PROVISIONS March 31, 2018 March 31, 2017 D  3URYLVLRQIRUHPSOR\HHDQGUHWLUHPHQWEHQH¿WV 56 45 E  &RQWLQJHQWSURYLVLRQDJDLQVWVWDQGDUGDVVHWV 5HIHU1RWH L 510 453 Total 566 498

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “12” : PROPERTY, PLANT AND EQUIPMENT (`LQODNK

Gross Block Accumulated depreciation Net Opening Closing Opening Closing Carrying balance balance balance balance Amount Particulars Depreci- as at Additions Deletions as at as at ation for Deletions as at as at April 1, March 31, April 1, the year March 31, March 31, 2017 2018 2017 2018 2018 Tangible Assets %XLOGLQJV 5,281 – – 5,281 956 211 – 1,166 4,115 5HIHU)RRWQRWH 5,281 – – 5,281 745 211 – 956 4,325 %XLOGLQJV*LYHQRQ 7,818 0* – 7,818 1,324 312 – 1,636 6,181 RSHUDWLQJOHDVH 7,818 – – 7,818 1,011 313 – 1,324 6,494 5HIHU)RRWQRWH 175 – – 175 81 19 – 100 75 3ODQWDQG0DFKLQHU\ 180 0* (5) 175 65 19 (3) 81 94 829 1 – 830 357 85 – 442 388 )XUQLWXUH )L[WXUHV 829 0* – 829 268 89 – 357 472 190 75 (61) 204 96 40 (58) 78 126 9HKLFOHV 175 63 (48) 190 99 41 (44) 96 94 337 4 – 341 303 26 – 329 12 2I¿FH(TXLSPHQW 345 1 (9) 337 275 37 (9) 303 34 23 11 – 34 13 5 – 18 16 &RPSXWHU(TXLSPHQW 23 4 (4) 23 12 4 (3) 13 10 14,653 91 (61) 14,683 3,130 698 (58) 3,770 10,913 TOTAL 14,651 68 (66) 14,653 2,475 715 (59) 3,130 11,523 Capital work-in- – progress 1 10,913 TOTAL 11,524 $PRXQWOHVVWKDQ` Footnotes: -   3UHYLRXV\HDU¿JXUHVDUHJLYHQLQItalics   3RUWLRQRIWKH&RPSDQ\¶VEXLOGLQJKDVEHHQOHWRXWWRLWVVXEVLGLDULHVXQGHURSHUDWLQJOHDVHDUUDQJHPHQW7KLV DUUDQJHPHQWLVFDQFHOODEOHDQGGRHVQRWFRQWDLQDQ\PLQLPXPOHDVHRUFRQWLQJHQF\OHDVHUHQWDOV   %XLOGLQJV  *LYHQ RQ RSHUDWLQJ OHDVH UHSUHVHQW SUHPLVHV OHW RXW WR FRPSDQ\¶V VXEVLGLDULHV DQG RWKHU WKDQ UHODWHG SDUW\ XQGHU RSHUDWLQJ OHDVH DUUDQJHPHQW 7KLV DUUDQJHPHQW LV FDQFHOODEOH DQG GRHV QRW FRQWDLQ DQ\ PLQLPXPOHDVHRUFRQWLQJHQF\OHDVHUHQWDOV

 NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “13” : NON - CURRENT INVESTMENTS Scrip-wise details of Investments as on March 31, 2018 Face value As at March 31, 2018 As at March 31, 2017 Particulars Per Unit ` No. of Units ` In lakh No. of Units ` In lakh INVESTMENT IN SUBSIDIARIES Unquoted : Investment in Equity Shares (Trade) 3,38,717 3,41,341 7DWD&DSLWDO)LQDQFLDO6HUYLFHV/LPLWHG  1,29,75,50,000 2,59,255   7DWD&DSLWDO+RXVLQJ)LQDQFH/LPLWHG  25,33,33,332 27,600   7DWD6HFXULWLHV/LPLWHG 5HIHUQRWH  38,29,418 0*   7DWD&DSLWDO3WH/LPLWHG 6*' 3,22,82,000 10,807   7DWD&OHDQWHFK&DSLWDO/LPLWHG  28,63,84,842 41,055   7&7UDYHODQG6HUYLFHV/LPLWHG 5HIHUQRWH  ––  7DWD&DSLWDO)RUH[/LPLWHG 5HIHUQRWHDQG  ––  Investment in Compulsorily Convertible Cumulative Preference Shares (Trade) 2,65,817 1,78,217 7DWD&DSLWDO)LQDQFLDO6HUYLFHV/LPLWHG  1,52,00,00,000 1,52,000   7DWD&DSLWDO+RXVLQJ)LQDQFH/LPLWHG  1,12,50,00,000 1,12,500   7DWD6HFXULWLHV/LPLWHG 5HIHUQRWH  1,50,00,000 1,317   Investment in Non-Convertible Debentures (Trade) 12,500 5,000 3HUSHWXDO'HEHQWXUHVRI7DWD&DSLWDO)LQDQFLDO  6HUYLFHV/LPLWHG 1,250 12,500 ±± 3HUSHWXDO'HEHQWXUHVRI7DWD&DSLWDO)LQDQFLDO  6HUYLFHV/LPLWHG ––  Investment in Venture Capital Units 17,082 19,217 7DWD&DSLWDO*URZWK)XQG 1 2,50,00,00,000 17,082   7DWD&DSLWDO*URZWK)XQG&ODVV%8QLWV 1 10,000 0*   INVESTMENTS IN ASSOCIATES / JOINT VENTURE Unquoted : Investment in Equity Shares 18,528 18,528 7DWD$XWRFRPS6\VWHPV/LPLWHG 1RQ7UDGH  4,83,07,333 18,528   Investment in Venture Capital Units 18,251 20,074 7DWD&DSLWDO6SHFLDO6LWXDWLRQV)XQG  4,181 4,181   7DWD&DSLWDO6SHFLDO6LWXDWLRQV)XQG&ODVV%8QLWV  50 0*   7DWD&DSLWDO+HDOWKFDUH)XQG, 1 1,00,00,00,000 6,553   7DWD&DSLWDO+HDOWKFDUH)XQG,&ODVV%8QLWV 1 10,000 0*   7DWD&DSLWDO,QQRYDWLRQV)XQG  750,000 7,516   7DWD&DSLWDO,QQRYDWLRQV)XQG&ODVV%8QLWV 1 10,000 0*   INVESTMENTS IN OTHERS Investments in Equity Shares Quoted (Non-Trade) 125 110 7DWD6WHHO/LPLWHG )XOO\SDLG  15,660 111   7DWD6WHHO/LPLWHG 3DUWO\SDLG  5HIHUQRWH YLL  1,080 2 ±± 7KH,QGLDQ+RWHOV&RPSDQ\/LPLWHG 1 17,640 12   Unquoted 9,945 10,967 7DWD6N\/LPLWHG 1RQ7UDGH  10,072,871 5,242   5RRWV&RUSRUDWLRQ/LPLWHG 1RQ7UDGH  2,089,269 1,880   7DWD3URMHFWV/LPLWHG 1RQ7UDGH  44,810 2,823   7DWD%XVLQHVV6XSSRUW6HUYLFHV/LPLWHG 7UDGH  ––  Investments in Preference Shares (Trade) – 1,500 &XPXODWLYH5HGHHPDEOH3UHIHUHQFH6KDUHVRI  7DWD%XVLQHVV6XSSRUW6HUYLFHV/LPLWHG ––  Investments in Mutual Funds (Non - Trade) 1,000 8,056 201 7,658 190 Total Cost of Non-Current Investments (A) 681,167 595,144 3URYLVLRQIRUGLPLQXWLRQLQYDOXHRILQYHVWPHQWV % (3,351)  Total Non-Current Investments (A + B) 677,816 591,797

Particulars Non-Current Non-Current Investment Investment ` in lakh ` in lakh &RVWRI4XRWHG,QYHVWPHQWV 125  %RRN9DOXHRI4XRWHG,QYHVWPHQWV QHW 107  0DUNHWYDOXHRI4XRWHG,QYHVWPHQWV 114  &RVWRI8QTXRWHG,QYHVWPHQWV 6,81,042  %RRN9DOXHRI8QTXRWHG,QYHVWPHQWV QHW 6,77,709  $PRXQWOHVVWKDQ`

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “14” (`LQODNK As at As at DEFERRED TAX ASSETS March 31, 2018 March 31, 2017 D  (PSOR\HHEHQH¿WV 74  E  7LPLQJ GLIIHUHQFH LQ UHVSHFW RI GHSUHFLDWLRQ RQ SURSHUW\ 138  SODQW HTXLSPHQW F  &RQWLQJHQWSURYLVLRQDJDLQVWVWDQGDUGDVVHWV 193  G  'HIHUUHGUHYHQXHH[SHQGLWXUH 8 ± H  3URYLVLRQIRUEDGGHEWV 59 ± Total 472 362

NOTE “15” (`LQODNK LONG-TERM LOANS AND ADVANCES As at As at (Unsecured, Considered Good) March 31, 2018 March 31, 2017 D  6HFXULW\GHSRVLWV 287  E  2WKHUV  L  3UHSDLGH[SHQVHV 64   LL  $GYDQFHSD\PHQWRILQFRPHWD[>1HWRISURYLVLRQIRU 1,835  WD[`/DNK DVDW0DUFK`/DNK  LLL  0$7FUHGLWHQWLWOHPHQW 1,163 ± Total 3,349 2,493

NOTE “16” (`LQODNK As at As at OTHER NON-CURRENT ASSETS March 31, 2018 March 31, 2017 D 'HIHUUHGUHYHQXHH[SHQGLWXUH 5HIHUQRWH D 19  E 5HQWDOLQFRPHDFFUXHG 43 13 F *UDWXLW\DVVHW 1HW 33  Total 95 125

 NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “17” (`LQODNK As at As at TRADE RECEIVABLES March 31, 2018 March 31, 2017 D  2YHUVL[PRQWKV – ± L  6HFXUHGFRQVLGHUHGJRRG – ± LL  8QVHFXUHGFRQVLGHUHGJRRG –  LLL  'RXEWIXO 106 ± 106  /HVV3URYLVLRQIRUWUDGHUHFHLYDEOHV (106) ± –  E  2WKHU L  6HFXUHGFRQVLGHUHGJRRG – ± LL  8QVHFXUHGFRQVLGHUHGJRRG 666  LLL  'RXEWIXO 62 ± 728  /HVV3URYLVLRQIRUWUDGHUHFHLYDEOHV (62) ± 666  Total 666 1,012

NOTE “18” (`LQODNK As at As at CASH AND CASH EQUIVALENTS March 31, 2018 March 31, 2017** D  %DODQFHVZLWKEDQNVLQFXUUHQWDFFRXQW 49  E  ,QHDUPDUNHGDFFRXQWV  ± 8QSDLGGLYLGHQG 0* ± Total 49 96  $PRXQWOHVVWKDQ`  7KH &RPSDQ\ GLG QRW KROG DQ\ FDVK RQ KDQG DV RQ 0DUFK   DQG KHQFH GHWDLOV RI WKH 6SHFL¿HG %DQN 1RWHV 6%1  KHOG DQG WUDQVDFWHG GXULQJ WKH SHULRG 1RYHPEHU   WR 'HFHPEHU   DV SHU 0&$ 1RWL¿FDWLRQ *65  (  GDWHG 0DUFK    DUH QRW DSSOLFDEOH

NOTE “19” (`LQODNK SHORT-TERM LOANS AND ADVANCES As at As at (Unsecured, Considered Good) March 31, 2018 March 31, 2017 D  &DSLWDODGYDQFHV 72 13 E  /RDQVDQGDGYDQFHVWRUHODWHGSDUWLHV 5  F  6HFXULW\GHSRVLWV 198  G  ,QWHUFRUSRUDWHGHSRVLWVWRUHODWHGSDUWLHV 33,784  H  2WKHUV  L  2WKHU$GYDQFHV 62   LL  3UHSDLGH[SHQVHV 122   LLL  %DODQFHVZLWKJRYHUQPHQWDXWKRULWLHV 45  Total 34,288 62,223

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE BALANCE SHEET AS AT MARCH 31, 2018

NOTE “20” (`LQODNK As at As at OTHER CURRENT ASSETS March 31, 2018 March 31, 2017 D  'HIHUUHGUHYHQXHH[SHQGLWXUH 5HIHUQRWH D 67  E  ,QWHUHVWDFFUXHGEXWQRWGXH 59  F  $VVHWVKHOGIRUVDOH 47  G  5HQWDOLQFRPHDFFUXHG 13  Total 186 672

7KH &RPSDQ\ KDG UHSRVVHVVHG DVVHWV ODQG DQG EXLOGLQJV  RI `  ODNKV RQ EHKDOI RI LWV VXEVLGLDU\ 7DWD &DSLWDO )LQDQFLDO 6HUYLFHV /LPLWHG LQ VHWWOHPHQW RI LWV ORDQ RXWVWDQGLQJ 'XULQJ )< WKH &RPSDQ\ UHDOL]HG DQ DPRXQW DJJUHJDWLQJ WR `  ODNKV RQ DFFRXQW RI GLVSRVDO RI VRPH RI WKH UHSRVVHVVHGDVVHWV

NOTE “20(a)” (`LQODNK As at As at DEFERRED REVENUE EXPENDITURE March 31, 2018 March 31, 2017 (a) Unamortised share issue expenses 2SHQLQJ%DODQFH –  $GGH[SHQVHVLQFXUUHGGXULQJWKH\HDU – ± /HVVZULWWHQRIIDJDLQVW6HFXULWLHV3UHPLXP –  /HVVZULWWHQRIIGXULQJWKH\HDU – ± Closing Balance – – (b) Unamortised debenture issue expenses 2SHQLQJ%DODQFH 110 ± $GGH[SHQVHVLQFXUUHGGXULQJWKH\HDU 89  /HVVZULWWHQRIIGXULQJWKH\HDU 113  Closing Balance 86  Total 86 110

 NOTES TO AND FORMING PART OF THE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

NOTE “21” (`LQODNK For the year ended For the year ended REVENUE FROM OPERATIONS March 31, 2018 March 31, 2017 D 'LYLGHQGIURP1RQ&XUUHQW,QYHVWPHQWV 23,261  E ,QFRPHIURPDGYLVRU\VHUYLFHV 4,835  F ,QWHUHVWRQ,QWHU&RUSRUDWH'HSRVLWV 8,342  G ,QWHUHVWRQQRQFXUUHQWLQYHVWPHQWV 90  Total 36,528 33,667 ,QFOXGHVGLYLGHQGLQFRPHIURPVXEVLGLDU\FRPSDQLHV` ODNK 3UHYLRXV

NOTE “22” (`LQODNK For the year ended For the year ended OTHER INCOME March 31, 2018 March 31, 2017 D  ,QFRPHIURPPDQDJHULDOVHUYLFHV 2,901  E  ,QFRPHIURPSURSHUW\PDQDJHPHQW 1,217  F  0LVFHOODQHRXVLQFRPH 878  Total 4,996 3,355 0LVFHOODQHRXV,QFRPHIRUWKH\HDUHQGHG0DUFKLQFOXGHVLQWHUHVWRQUHIXQGRI,QFRPH7D[IRU $<DPRXQWLQJWR`/DNK

NOTE “23” (`LQODNK For the year ended For the year ended FINANCE COSTS March 31, 2018 March 31, 2017 D  ,QWHUHVWH[SHQVH 9,931  E  'LVFRXQWLQJFKDUJHVRQFRPPHUFLDOSDSHUV 4,163  Total 14,094 11,946

NOTE “24” (`LQODNK For the year ended For the year ended EMPLOYEE BENEFITS EXPENSES March 31, 2018 March 31, 2017 D  6DODULHVZDJHVDQGERQXV 6,973  E  &RQWULEXWLRQWRSURYLGHQWDQGRWKHUIXQGV 5HIHUQRWH 320  F  6WDIIZHOIDUHH[SHQVHV 65  Total 7,358 6,441

 Annual Report 2017-18

NOTES TO AND FORMING PART OF THE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

NOTE “25” (`LQODNK For the year ended For the year ended OTHER OPERATING EXPENSES March 31, 2018 March 31, 2017 D  $GYHUWLVHPHQWVDQGSXEOLFLW\ 98  E  %UDQG(TXLW\DQG%XVLQHVV3URPRWLRQ 72  F  &RUSRUDWHVRFLDOUHVSRQVLELOLW\ 5HIHUQRWH F –  G  'LUHFWRUV¶UHPXQHUDWLRQ 184  H  3RZHUDQGIXHO 26  I  ,QVXUDQFH 38  J  ,7FRVWV 136  K  /HJDODQGSURIHVVLRQDOIHHV 927  L  3ULQWLQJDQGVWDWLRQHU\ 25  M  3URYLVLRQ IRU GLPLQXWLRQ LQ YDOXH RI QRQFXUUHQW 2,628  LQYHVWPHQWV N  :ULWHRIIRIQRQFXUUHQWLQYHVWPHQW –  /HVVWUDQVIHUIURPVHFXULWLHVSUHPLXP 5HIHU1RWH ––  ± O  3URYLVLRQVDJDLQVWVWDQGDUGDVVHWV 89  P  3URYLVLRQIRU%DGDQG'RXEWIXO'HEWV 171 ± Q  5DWHVDQGWD[HV (334)  R  5HQW LQFOXGLQJPDLQWHQDQFH 285  S  5HSDLUVWREXLOGLQJV 6  T  7UDYHOOLQJDQGFRQYH\DQFH 490  U  2WKHUV 5HIHUQRWH D 147  Total 4,988 4,443 $VDW0DUFKWKH&RPSDQ\ZDVFDUU\LQJDSURYLVLRQIRU3URSHUW\WD[SHUWDLQLQJWRLWVSURSHUW\ DW3HQLQVXOD%XVLQHVV3DUN3DUHO7KHSURYLVLRQZDVLQOLQHZLWKWKHGHPDQGQRWLFHUHFHLYHGIRU)< WR)<3XUVXDQWWRDUHYLVHGGHPDQGQRWLFHUHFHLYHGLQWKHFXUUHQW¿QDQFLDO\HDUWKH&RPSDQ\ SDLG3URSHUW\WD[DPRXQWLQJWR`ODNKDQGUHYHUVHGWKHUHPDLQLQJSURYLVLRQDPRXQWLQJWR`ODNK LQWKH6WDWHPHQWRI3UR¿W /RVV

NOTE “25(a)” (`LQODNK For the year ended For the year ended AUDITORS’ REMUNERATION (excl. GST) March 31, 2018 March 31, 2017 D  $XGLWIHHV 21  E  7D[DXGLWIHHV 2  F  2WKHUVHUYLFHV 2 1 G  7RZDUGVUHLPEXUVHPHQWRIH[SHQVHV 1 1 Total 26 21 2WKHUVHUYLFHVLQFOXGHIHHVIRUFHUWL¿FDWLRQ

 NOTES TO AND FORMING PART OF THE STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2018

NOTE “25(b)” (`LQODNK For the year ended For the year ended EXPENDITURE IN FOREIGN CURRENCIES March 31, 2018 March 31, 2017 D  $GYHUWLVHPHQWVDQG3XEOLFLW\ 7 ± E  0HPEHUVKLSDQGVXEVFULSWLRQ 29  F  /HJDODQGSURIHVVLRQDOIHHV 11  (d) Travelling and conveyance 99  H  6WDIIZHOIDUHH[SHQVHV 1  I  ,7([SHQVHV 2 ± Total 149 151

NOTE “25(c)” : CORPORATE SOCIAL RESPONSIBILITY *URVVDPRXQWUHTXLUHGWREHVSHQWE\WKH&RPSDQ\GXULQJWKH\HDULV1,/ 3UHYLRXV

NOTE “26” : PROVISIONS AND CONTINGENT LIABILITIES L 0RYHPHQWLQ&RQWLQJHQW3URYLVLRQDJDLQVW6WDQGDUG$VVHWVGXULQJWKH\HDULVDVXQGHU (`LQODNK For the year ended For the year ended Particulars March 31, 2018 March 31, 2017 Opening Balance 471 451 $GGLWLRQVGXULQJWKH\HDU   8WLOLVHGGXULQJWKH\HDU – ± Closing Balance 560 471

LL &ODLPVQRWDFNQRZOHGJHGE\WKH&RPSDQ\UHODWLQJWRFDVHVFRQWHVWHGE\WKH&RPSDQ\DQGZKLFK DUHQRWOLNHO\WREHGHYROYHGRQWKH&RPSDQ\UHODWLQJWRWKHIROORZLQJDUHDV (`LQODNK As at As at Particulars March 31, 2018 March 31, 2017 ,QFRPH7D[ 3HQGLQJEHIRUH$SSHOODWHDXWKRULWLHV 10,535  9DOXH$GGHG7D[ 3HQGLQJEHIRUH6DOHV7D[ 102  $SSHOODWH$XWKRULWLHV Total 10,637 10,425

 Annual Report 2017-18

NOTE “27” : COMMITMENTS : L &RPPLWPHQW WR LQYHVW LQ 7DWD &DSLWDO 6SHFLDO 6LWXDWLRQV )XQG DPRXQWLQJ WR `  ODNK DV DW 0DUFK`ODNK  LL &RPPLWPHQW WR LQYHVW LQ 7DWD &DSLWDO +HDOWKFDUH )XQG , DPRXQWLQJ WR `  ODNK DV DW 0DUFK`ODNK  LLL &RPPLWPHQW WR LQYHVW LQ 7DWD &DSLWDO *URZWK )XQG DPRXQWLQJ WR `  ODNK DV DW 0DUFK`ODNK  LY &RPPLWPHQW WR LQYHVW LQ 7DWD &DSLWDO ,QQRYDWLRQV )XQG DPRXQWLQJ WR `  ODNK DV DW 0DUFK`ODNK  Y &RPPLWPHQWWRFRLQYHVWZLWK2PHJD7&+ROGLQJV3WH/WG86'0LOOLRQ `ODNK  DVDW 0DUFK86'0LOOLRQ `ODNK  YL *XDUDQWHHV LVVXHG WR 1DWLRQDO +RXVLQJ %DQN RQ EHKDOI RI 7DWD &DSLWDO +RXVLQJ )LQDQFH /LPLWHG `  ODNK $V DW 0DUFK   `  ODNK  DJDLQVW ZKLFK WKH DPRXQW OLDEOH E\ 7DWD &DSLWDO +RXVLQJ )LQDQFH /LPLWHG LV `  ODNK DV DW 0DUFK   $V DW 0DUFK   `  ODNK  3XUVXDQW WR WKH WHUPV RI WKH *XDUDQWHH WKH &RPSDQ\¶V OLDELOLW\ RQ LQYRFDWLRQ LV FDSSHGDWWKHRXWVWDQGLQJDPRXQW YLL 8QFDOOHGOLDELOLW\RQSDUWO\SDLGHTXLW\VKDUHVRI7DWD6WHHO/LPLWHGDPRXQWLQJWR`/DNK DV DW0DUFK1LO

NOTE “28” : EMPLOYEE STOCK PURCHASE / OPTION SCHEME : D  ,Q 0DUFK  WKH &RPSDQ\ DW LWV H[WUDRUGLQDU\ JHQHUDO PHHWLQJ DSSURYHG WKH ³7DWD &DSLWDO /LPLWHG(PSOR\HH6WRFN3XUFKDVH2SWLRQ6FKHPH´ WKH³(6236FKHPH´ 3XUVXDQWWRWKLVVFKHPH D 7UXVW XQGHU WKH QDPH RI ³7&/ (PSOR\HH :HOIDUH 7UXVW´ KDV EHHQ FRQVWLWXWHG WR DGPLQLVWHU WKH (623VFKHPH E  7KH &RPSDQ\ KDV LVVXHG  (TXLW\ 6KDUHV RI `  HDFK DW D SUHPLXP RI `  SHU VKDUH LQ )<  DQG  (TXLW\ 6KDUHV RI `  HDFK DW D SUHPLXP RI `  SHU VKDUH LQ )<  WR WKH 7UXVW 7KH 7UXVW WUDQVIHUV VKDUHV WR WKH HPSOR\HHV RI WKH &RPSDQ\  LWV VXEVLGLDULHVXQGHUWKH(623VFKHPH F  7KH &RPSDQ\ KDG SURYLGHG ¿QDQFH RI `  ODNK LQ WKH )<  WR WKH7UXVW WR HQDEOH LW WR ¿QDQFHWKH&RPSDQ\¶VVKDUHVVXEVFULEHGIRUE\LW G  %DVHG RQ WKH JXLGDQFH QRWH RQ ³(PSOR\HH 6KDUH  %DVHG 3D\PHQWV´ LVVXHG E\ ,QVWLWXWH RI &KDUWHUHG$FFRXQWDQWV RI ,QGLD WKH &RPSDQ\ KDV DGRSWHG WKH LQWULQVLF PHWKRG RI DFFRXQWLQJ IRU (623 H  7KHIROORZLQJLVWKHGLVFORVXUHDVUHTXLUHGXQGHUWKHDIRUHPHQWLRQHGJXLGDQFHQRWH  L  7KH LPSDFW RQ (DUQLQJV SHU 6KDUH LI WKH µIDLU YDOXH¶ RI WKH RSWLRQV RQ WKH GDWH RI WKH JUDQW  ZHUHFRQVLGHUHGLQVWHDGRIWKHµLQWULQVLFYDOXH¶LVDVXQGHU (`LQODNK  For the year ended Particulars March 31, 2018 March 31, 2017 1HW3UR¿W DVUHSRUWHG   /HVV)DLUYDOXHFRPSHQVDWLRQFRVWV   1HW3UR¿W SURIRUPD   %DVLF(36 DVUHSRUWHG  `)   'LOXWHG(36 DVUHSRUWHG  `)   %DVLF(36 SURIRUPD  `)   'LOXWHG(36 SURIRUPD  `)  

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For the year ended March 31, 2018 March 31, 2017 Particulars No. of WAEP No. of WAEP options # (`)* options # (`)* 2XWVWDQGLQJDWWKHEHJLQQLQJ  31   RIWKH\HDU Granted during the year ± ±  33 )RUIHLWHG/DSVHGGXULQJWKH  31   year ([HUFLVHGGXULQJWKH\HDU     2XWVWDQGLQJDWWKHHQGRI  33  31 the year ([HUFLVDEOHDWWKHHQGRIWKH  33   year :$(3 :HLJKWHG$YHUDJH([HUFLVH3ULFH   1RRIRSWLRQVIRUSUHYLRXV\HDUKDYHEHHQUHJURXSHGUHFODVVL¿HGUHFWL¿HGDVDSSOLFDEOH

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NOTE “29” : EMPLOYEE BENEFITS 'H¿QHG&RQWULEXWLRQ3ODQV 7KH &RPSDQ\ PDNHV 3URYLGHQW )XQG DQG 6XSHUDQQXDWLRQ )XQG FRQWULEXWLRQV WR GH¿QHG FRQWULEXWLRQ UHWLUHPHQW EHQH¿W SODQV IRU HOLJLEOH HPSOR\HHV 8QGHU WKH VFKHPHV WKH &RPSDQ\ LV UHTXLUHG WR FRQWULEXWHDVSHFL¿HGSHUFHQWDJHRIWKHSD\UROOFRVWVWRIXQGWKHEHQH¿WV7KHFRQWULEXWLRQVDVVSHFL¿HG XQGHU WKH ODZ DUH SDLG WR WKH SURYLGHQW IXQG VHW XS DV D 7UXVW E\ WKH &RPSDQ\ 7KH &RPSDQ\ LV JHQHUDOO\ OLDEOH IRU DQQXDO FRQWULEXWLRQV DQG DQ\ GH¿FLHQF\ LQ LQWHUHVW FRVW FRPSDUHG WR LQWHUHVW FRPSXWHG EDVHG RQ WKH UDWH RI LQWHUHVW GHFODUHG E\ WKH &HQWUDO *RYHUQPHQW XQGHU WKH (PSOR\HHV¶ 3URYLGHQW)XQG6FKHPHLVUHFRJQLVHGDVDQH[SHQVHLQWKH\HDULWLVGHWHUPLQHG 7KH SURYLGHQW IXQG VHW XS DV D 7UXVW E\ WKH &RPSDQ\ PDQDJHV WKH FRQWULEXWLRQV IURP WKH &RPSDQ\ DQG RWKHU SDUWLFLSDWLQJ VXEVLGLDULHV $V RI 0DUFK   WKH DFFXPXODWHG PHPEHUV¶ FRUSXV RI WKH &RPSDQ\LV`ODNKZKHUHDVWKHWRWDOIDLUYDOXHRIWKHDVVHWVRIWKHIXQGDQGWKHWRWDODFFXPXODWHG PHPEHUV¶ FRUSXV LV `  ODNK DQG `  ODNK UHVSHFWLYHO\ ,Q DFFRUGDQFH ZLWK DQ DFWXDULDO YDOXDWLRQWKHUHLVQRGH¿FLHQF\LQWKHLQWHUHVWFRVWDVWKHSUHVHQWYDOXHRIWKHH[SHFWHGIXWXUHHDUQLQJV RQWKHIXQGLVJUHDWHUWKDQWKHH[SHFWHGDPRXQWWREHFUHGLWHGWRWKHLQGLYLGXDOPHPEHUVEDVHGRQWKH H[SHFWHGJXDUDQWHHGUDWHRILQWHUHVWRI7KHDFWXDULDODVVXPSWLRQVLQFOXGHGLVFRXQWUDWHRI 7KH&RPSDQ\UHFRJQLVHGDFKDUJHRI`ODNK 3UHYLRXV\HDU`ODNK IRUSURYLGHQWIXQGDQGIDPLO\ SHQVLRQ IXQG FRQWULEXWLRQ DQG `  ODNK 3UHYLRXV \HDU `  ODNK  IRU 6XSHUDQQXDWLRQ FRQWULEXWLRQ LQ 6WDWHPHQWWKH3UR¿WDQG/RVV

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Particulars 2017-18 2016-17 &KDQJHLQ'H¿QHG%HQH¿W2EOLJDWLRQ 2SHQLQJ'H¿QHG%HQH¿W2EOLJDWLRQ 1,113  &XUUHQW6HUYLFH&RVW   ,QWHUHVW&RVW   $FTXLVLWLRQV&RVW &UHGLW (4)  $FWXDULDO/RVVHV *DLQ   %HQH¿WV3DLG   &ORVLQJ'H¿QHG%HQH¿W2EOLJDWLRQ  1,113 Change in the Fair Value of Assets 2SHQLQJ)DLU9DOXHRI3ODQ$VVHWV   7UDQVIHULQ (4)  ([SHFWHG5HWXUQRQ3ODQ$VVHWV   &RQWULEXWLRQVE\(PSOR\HU  441 $FWXDULDO*DLQV /RVVHV 3  %HQH¿WVSDLG  &ORVLQJ)DLU9DOXHRI3ODQ$VVHWV   Composition of the plan assets Investment Pattern *RYHUQPHQWERQGV   (TXLW\PXWXDOIXQGV   %RQGV'HEHQWXUHV   2WKHUV LQFOXGLQJDVVHWVXQGHU6FKHPHVRI,QVXUDQFH   Total   Reconciliation of present value of the obligation and the fair value of the plan assets )DLU9DOXHRISODQDVVHWVDWWKHHQGRIWKH\HDU   3UHVHQWYDOXHRIWKHGH¿QHGREOLJDWLRQVDWWKHHQGRIWKH\HDU  1,113 )XQGHGVWDWXV>6XUSOXV 'H¿FLW @ 33  1HW$VVHW /LDELOLW\ UHFRJQLVHGLQWKH%DODQFH6KHHW 33  Net Gratuity cost 6HUYLFH&RVW   ,QWHUHVWRQ'H¿QHGEHQH¿W2EOLJDWLRQ   ([SHFWHGUHWXUQRQSODQDVVHWV   1HWDFWXDULDOORVVUHFRJQLVHGLQWKH\HDU   1HW*UDWXLW\&RVWDVLQFOXGHGLQ(PSOR\HH%HQH¿W([SHQVHV   >5HIHU1RWH E @ $FWXDO&RQWULEXWLRQDQGEHQH¿WSD\PHQWVIRUWKH\HDU $FWXDOEHQH¿WSD\PHQWV   $FWXDOFRQWULEXWLRQV  441

 Annual Report 2017-18

Particulars 2017-18 2016-17 $VVXPSWLRQV 'LVFRXQW5DWH   ([SHFWHG5DWHRI5HWXUQRQ3ODQ$VVHWV SD SD 6DODU\(VFDODWLRQ5DWH SDIRU¿UVW\HDUV SDIRU¿UVW\HDUV DQGWKHUHDIWHU DQGWKHUHDIWHU 0RUWDOLW\5DWH ,QGLDQDVVXUHGOLYHV0RUWDOLW\ ,QGLDQDVVXUHGOLYHV0RUWDOLW\   PRGL¿HG 8OW   PRGL¿HG 8OW :LWKGUDZDO5DWH \HDUV \HDUV \HDUV \HDUV \HDUV \HDUV \HDUV PRUH \HDUV PRUH

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Experience History 2017-18 2016-17 2015-16 2014-15 2013-14 'H¿QHG%HQH¿W2EOLJDWLRQ (1,261) (1,113)    3ODQ$VVHWV 1,294   414  )XQGHG6WDWXV 33     ([SHULHQFH*DLQ /RVV $GMXVWPHQW 2Q3ODQ/LDELOLWLHV 12    (13) 2Q3ODQ$VVHWV 3    11 $FWXULDO*DLQ /RVV GXHWRFKDQJH 7    31 LQDVVXPSWLRQV 7KH&RPSDQ\H[SHFWVWRFRQWULEXWHDSSUR[LPDWHO\1,/ 3UHYLRXV\HDU`ODNK WRWKHJUDWXLW\IXQGIRU WKH\HDU

Long-Term Service Award : /RQJ7HUP6HUYLFHDZDUGLVDQHPSOR\HHEHQH¿WLQUHFRJQLWLRQIRUWKHLUOR\DOW\DQGFRQWLQXLW\RIVHUYLFH IRU ¿YH \HDUV DQG DERYH WKH VDPH LV DFWXDULDOO\ YDOXHG 8QIXQGHG  7KH /RQJ7HUP 6HUYLFH DZDUGV H[SHQVH IRU ¿QDQFLDO \HDU  LV 1,/ 3UHYLRXV \HDU `  ODNK  DQG WKH SURYLVLRQ DV DW 0DUFK  LV`ODNK 3UHYLRXV\HDU`ODNK 

 NOTE “30” : Disclosure as required by Accounting Standard (AS) – 18 on “Related Party 'LVFORVXUHV´QRWL¿HGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUG 5XOHV i. List of related parties and relationship:

Holding Company 7DWD6RQV/LPLWHG Subsidiaries 7DWD&DSLWDO)LQDQFLDO6HUYLFHV/LPLWHG 7DWD&DSLWDO+RXVLQJ)LQDQFH/LPLWHG 7DWD&OHDQWHFK&DSLWDO/LPLWHG 7DWD&DSLWDO3WH/LPLWHG 7DWD6HFXULWLHV/LPLWHG 7&7UDYHODQG6HUYLFHV/LPLWHG FHDVHGZHI2FWREHU 7DWD&DSLWDO )RUH[ /LPLWHG IRUPHUO\ 77 +ROGLQJV  6HUYLFHV /LPLWHG  FHDVHGZHI2FWREHU 7DWD&DSLWDO*URZWK)XQG Indirect Subsidiaries 7DWD&DSLWDO0DUNHWV3WH/LPLWHG 7DWD&DSLWDO$GYLVRUV3WH/LPLWHG 7DWD&DSLWDO3OF 7DWD&DSLWDO*HQHUDO3DUWQHUV//3 7DWD&DSLWDO+HDOWKFDUH*HQHUDO3DUWQHUV//3 7DWD2SSRUWXQLWLHV*HQHUDO3DUWQHUV//3 Associates 7DWD$XWR&RPS6\VWHPV/LPLWHG 7DWD&DSLWDO6SHFLDO6LWXDWLRQV)XQG 7DWD&DSLWDO+HDOWKFDUH)XQG 7DWD&DSLWDO,QQRYDWLRQ)XQG Fellow Subsidiaries 7DWD$,**HQHUDO,QVXUDQFH&RPSDQ\/LPLWHG (with which the Company had 7DWD$,$/LIH,QVXUDQFH&RPSDQ\/LPLWHG WUDQVDFWLRQV 7DWD&RQVXOWDQF\6HUYLFHV/LPLWHG &RQQHTW %XVLQHVV 6ROXWLRQV /LPLWHG IRUPHUO\ 7DWD %XVLQHVV 6XSSRUW 6HUYLFHV/LPLWHG  FHDVHGZHI1RYHPEHU 7DWD7HOHVHUYLFHV 0DKDUDVKWUD /LPLWHG (ZDUW,QYHVWPHQWV/LPLWHG Key Management Personnel 0U3UDYHHQ3.DGOH0DQDJLQJ'LUHFWRU &(2

 Annual Report 2017-18

ii. Transactions with related parties : (`LQODNK Sr.No. Party Name Nature of transaction 2017-18 2016-17 1 7DWD6RQV/WG a) ([SHQGLWXUH ±%UDQG(TXLW\&RQWULEXWLRQ 72  ±7UDLQLQJ([SHQVHV 2 ± ±&RQVXOWDQF\FKDUJHV 15 ± E 5HLPEXUVHPHQWRI([SHQVHV 0* ± c) %DODQFH3D\DEOH 72  d) %DODQFH5HFHLYDEOH 0* ±  Tata Capital a) ,QYHVWPHQWVLQ&RPSXOVRULO\FRQYHUWLEOH 57,500  )LQDQFLDO6HUYLFHV &XPXODWLYH3UHIHUHQFHVKDUHVPDGHGXULQJ /LPLWHG the year E ,QYHVWPHQWLQ3HUSHWXDO'HEW 12,500  c) ,&'VSODFHGGXULQJWKH\HDU 4,63,617  d) ,&'VUHSDLGEDFNGXULQJWKH\HDU 4,74,662  e) 6HFXULW\'HSRVLWRXWVWDQGLQJ3D\DEOH 5,847  I 6HFXULW\'HSRVLWUHIXQGHG 4,665 ± g) 6HFXULW\'HSRVLWSDLG 2 1 h) 6HFXULW\'HSRVLWUHIXQGUHFHLYHG 2 1 i) 'LYLGHQGUHFHLYHGGXULQJWKH\HDU 13,267  j) ,QWHUHVW,QFRPHRQ,&'¶VDQG,QYHVWPHQWV 6,837  N 5HQWDO,QFRPH 953  l) 0DUNHWLQJ 0DQDJHULDO6HUYLFH)HHV,QFRPH 2,091  m) ([SHQGLWXUH ±5HQWH[SHQVH 43  ±*XHVWKRXVHFKDUJHV 2  ±2WKHU([SHQVHV 0* ± n) 5HLPEXUVHPHQWRI([SHQVHV ±,QVXUDQFH([SHQVHV 26 31 ±(OHFWULFLW\H[SHQVH 51  ±7HOHSKRQHH[SHQVH 21 ± ±2WKHUH[SHQVHV 3 ± ±0DUNHWLQJ 0DQDJHULDO6HUYLFH 351 333 o) 3D\PHQWWRZDUGVDUUDQJHUIHHV 561  p) ,&'V2XWVWDQGLQJ5HFHLYDEOH 33,784  T %DODQFH5HFHLYDEOH 412  r) %DODQFH3D\DEOH 9 ± 3 Tata Capital a) ,QYHVWPHQWV LQ &RPSXOVRULO\ &RQYHUWLEOH 30,100  +RXVLQJ)LQDQFH &XPXODWLYH 3UHIHUHQFH VKDUHV PDGH GXULQJ /LPLWHG the year E ,&'VSODFHGGXULQJWKH\HDU 2,05,185  c) ,&'VUHSDLGEDFNGXULQJWKH\HDU 2,15,185  d) ,&'V2XWVWDQGLQJ5HFHLYDEOH –  e) 6HFXULW\'HSRVLWSDLG 3 ± I 6HFXULW\'HSRVLWUHIXQGUHFHLYHG 3 ± g) ,QWHUHVWRQ'HSRVLWVDQG,QYHVWPHQWV 611  h) 0DUNHWLQJ 0DQDJHULDO6HUYLFH)HHV,QFRPH 801  i) 'LYLGHQGUHFHLYHGGXULQJWKH\HDU 8,047  j) 5HLPEXUVHPHQWRI([SHQVHV ±7HOHSKRQH([SHQVHV 0* ± ±,QVXUDQFH([SHQVHV 7  ±0DUNHWLQJ 0DQDJHULDO6HUYLFH 147  N %DODQFH5HFHLYDEOH 124 

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 Annual Report 2017-18

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NOTE “31” : EARNINGS PER SHARE (EPS) 2017-18 2016-17 3UR¿WDIWHUWD[ ` in lakh 20,178  /HVV3UHIHUHQFHGLYLGHQGSDLGWRFXPXODWLYH ` in lakh 15,649  UHGHHPDEOHSUHIHUHQFHVKDUHKROGHUV 3UR¿WDIWHUWD[DYDLODEOHIRUHTXLW\ ` in lakh 4,529  VKDUHKROGHUV :HLJKWHGDYHUDJHQXPEHURI(TXLW\VKDUHV 1RV 2,82,60,18,170  XVHGLQFRPSXWLQJ%DVLF(36 )DFHYDOXHRIHTXLW\VKDUHV ` 10  Basic EPS ` 0.16 0.15 3UR¿WDIWHUWD[DYDLODEOHIRUHTXLW\ ` in lakh 4,529  VKDUHKROGHUV :HLJKWHGDYHUDJHQXPEHURI(TXLW\6KDUHV 1RV 2,82,60,18,170  XVHGLQFRPSXWLQJ%DVLF(36 $GG3RWHQWLDOZHLJKWHGDYHUDJHQXPEHURI 1RV –  (TXLW\VKDUHV :HLJKWHGDYHUDJHQXPEHURIVKDUHVLQ 1RV 2,82,60,18,170  FRPSXWLQJ'LOXWHG(36 )DFHYDOXHRIHTXLW\VKDUHV ` 10  Diluted EPS ` 0.16 0.15 Notes :   6KDUHVXQGHUWKH(6236FKHPHVDUHLVVXHGDWLQWULQVLFYDOXH>5HIHUQRWH [LY @   7KH HDUQLQJV SHU HTXLW\ VKDUH LV FDOFXODWHG RQ WKH EDVLV RI QHW SUR¿W IRU WKH \HDU DIWHU GHGXFWLQJ WKH DPRXQW RI SUHIHUHQFH GLYLGHQGV RQ &XPXODWLYH 5HGHHPDEOH 3UHIHUHQFH 6KDUHV DQG WD[HV DWWULEXWDEOHWKHUHWRQHWRIVHWRIIDYDLODEOH

 Annual Report 2017-18

NOTE “32” : SEGMENT REPORTING  ,Q DFFRUGDQFH ZLWK $FFRXQWLQJ 6WDQGDUG  RQ 6HJPHQW 5HSRUWLQJ WKH &RPSDQ\ KDV LGHQWL¿HG WKUHH EXVLQHVV VHJPHQWV LH ,QYHVWPHQW $FWLYLW\$GYLVRU\ VHUYLFHV DQG 2WKHUV LQFOXGHV SURSHUW\ PDQDJHPHQW VHUYLFHV DQG PDQDJHULDO  PDUNHWLQJ VHUYLFHV  DQG RQH *HRJUDSKLFDO 6HJPHQW YL] ,QGLDDVVHFRQGDU\VHJPHQW (`LQODNK For the year ended For the year ended Particulars March 31, 2018 March 31, 2017 I Segment Revenue (a) ,QYHVWPHQW$FWLYLW\ 33,383  E $GYLVRU\VHUYLFHV 9,329  (c) 2WKHUV 4,329  (d) 8QDOORFDWHG 607  Total 47,648 42,482 II Segment Results (a) ,QYHVWPHQW$FWLYLW\ 22,909  E $GYLVRU\VHUYLFHV (2,572)  (c) 2WKHUV 1,510  (d) 8QDOORFDWHG (1,450)  3UR¿WEHIRUHWD[DWLRQ 20,397 18,905 /HVV3URYLVLRQIRUWD[DWLRQ 219  3UR¿WDIWHUWD[DWLRQ 20,178 18,016 As at As at Particulars March 31, 2018 March 31, 2017 III Segment Assets (a) ,QYHVWPHQW$FWLYLW\ 6,79,080  E $GYLVRU\VHUYLFHV 33,170  (c) 2WKHUV 10,064  (d) 8QDOORFDWHG 5,520  Total 7,27,834 6,70,304 IV Segment Liabilities (a) ,QYHVWPHQW$FWLYLW\ 1,53,442  E $GYLVRU\VHUYLFHV 38,482  (c) 2WKHUV 6,587  (d) 8QDOORFDWHG 14,007  Total 2,12,518 1,61,944 For the year ended For the year ended Particulars March 31, 2018 March 31, 2017 V Capital Expenditure (including Capital Work-in-Progress) (a) ,QYHVWPHQW$FWLYLW\ – ± E $GYLVRU\VHUYLFHV – ± (c) 2WKHUV – ± (d) 8QDOORFDWHG 149  Total 149 81

 (`LQODNK For the year ended For the year ended Particulars March 31, 2018 March 31, 2017 VI Depreciation (a) ,QYHVWPHQW$FWLYLW\ – ± E $GYLVRU\VHUYLFHV 24  (c) 2WKHUV 588  (d) 8QDOORFDWHG 87  Total 698 715 VII 6LJQL¿FDQW 1RQ&DVK ([SHQVHV 2WKHU WKDQ Depreciation (a) ,QYHVWPHQW$FWLYLW\ 255  E $GYLVRU\VHUYLFHV 2,745 131 (c) 2WKHUV – ± (c) 8QDOORFDWHG –  Total 3,000 1,391

NOTE “33” : Details of the Company’s interest in its Joint Venture, having Joint Control, as per the requirement of Accounting Standard (AS) - 27 on “Financial Reporting of Interests in Joint Venture” (`LQODNK Nectar Loyalty Management India Ltd Sr. No. Particulars (Incorporated and Registered in India) For the year ended For the year ended March 31, 2017 March 31, 2018 [Refer footnote 1] 6KDUHV+HOG 0%  (a) $VVHWV E /LDELOLWLHV (c) ,QFRPH N.A 1$ (d) ([SHQVHV (e) 2WKHU0DWWHUV±&RQWLQJHQW/LDELOLW\

Footnote:   1HFWDU/R\DOW\0DQDJHPHQW,QGLD/LPLWHGZDVDMRLQWYHQWXUHZLWK$,0,$ IRUPHUO\NQRZQDV*URXSH $HURSODQ,QF WRODXQFKDPXOWLSDUW\FRDOLWLRQOR\DOW\SURJUDPLQ,QGLD7DWD&DSLWDOKHOGLQWKH MRLQWYHQWXUHZKLFKZDVGLYHVWHGGXULQJ)<DWDORVVRI`ODNKV7KH&RPSDQ\KDGIXOO\ SURYLGHG IRU LWV LQYHVWPHQW LQ GHEHQWXUHV DQG HTXLW\ VKDUHV LQ WKH MRLQW YHQWXUH DV WKH RSHUDWLRQV RI 1HFWDUZHUHKHOGLQDEH\DQFHVLQFHDFRXSOHRI\HDUV

 Annual Report 2017-18

NOTE “34” : Core Investment Company (“CIC”) Compliance Ratios

As at As at Sr. No. Particulars March 31, 2018 March 31, 2017 (a) ,QYHVWPHQWV  ORDQV WR JURXS FRPSDQLHV DV D 94%  SURSRUWLRQRI1HW$VVHWV  E ,QYHVWPHQWV LQ HTXLW\ VKDUHV DQG FRPSXOVRULO\ 87%  FRQYHUWLEOH LQVWUXPHQWV RI JURXS FRPSDQLHV DV DSURSRUWLRQRI1HW$VVHWV  (c) &DSLWDO$GHTXDF\5DWLR  >$GMXVWHG1HWZRUWK 41%  5LVN:HLJKWHG$VVHWV@ (d) /HYHUDJH 5DWLR 7LPHV  > 2XWVLGH OLDELOLWLHV  0.85  $GMXVWHG1HWZRUWK@

NOTE “35” : Exposure to Real Estate Sector (`LQODNK Category As at As at March 31, 2018 March 31, 2017 i) Direct Exposure Residential Mortgages - NIL 1,/ /HQGLQJIXOO\VHFXUHGE\PRUWJDJHVRQUHVLGHQWLDOSURSHUW\ WKDWLVRUZLOOEHRFFXSLHGE\WKHERUURZHURUWKDWLVUHQWHG ,QGLYLGXDOKRXVLQJORDQVXSWR`ODNK NIL 1,/ ,QGLYLGXDOKRXVLQJORDQVDERYH`ODNK NIL 1,/ Commercial Real Estate - NIL 1,/ /HQGLQJVHFXUHGE\PRUWJDJHVRQFRPPHUFLDOUHDOHVWDWHV RI¿FHEXLOGLQJVUHWDLOVSDFHPXOWLSXUSRVHFRPPHUFLDO SUHPLVHVPXOWLIDPLO\UHVLGHQWLDOEXLOGLQJVPXOWLWHQDQWHG FRPPHUFLDOSUHPLVHVLQGXVWULDORUZDUHKRXVHVSDFH KRWHOVODQGDFTXLVLWLRQGHYHORSPHQWDQGFRQVWUXFWLRQHWF  ([SRVXUHLQFOXGHVQRQIXQGEDVHG 1)% OLPLWV ,QYHVWPHQWVLQ0RUWJDJH%DFNHG6HFXULWLHV 0%6 DQGRWKHU VHFXULWLVHGH[SRVXUHV 5HVLGHQWLDO NIL 1,/ &RPPHUFLDO5HDO(VWDWH NIL 1,/ ii) Indirect Exposure )XQGEDVHGH[SRVXUHRQ+RXVLQJ)LQDQFH&RPSDQLHV 1,40,100  1RQIXQGEDVHGH[SRVXUHRQ1DWLRQDO+RXVLQJ%DQN>5HIHU 1,20,000  QRWH YL @

 NOTE “36” : Asset Liability Management 0DWXULW\SDWWHUQRIFHUWDLQLWHPVRI$VVHWVDQG/LDELOLWLHV %DVHGRQ5%,*XLGHOLQHV For the year 2017-18 (`LQODNK Liabilities Assets Particulars Borrowings Market Advances Investments from Banks Borrowings GD\WRGD\V 2QHPRQWK ± ± ± ± 2YHUPRQWKWRPRQWKV ±  ± ± 2YHUPRQWKVWRPRQWKV ±  ± ± 2YHUPRQWKVWRPRQWKV ±  ± ± 2YHUPRQWKVWR\HDU ±    2YHU\HDUWR\HDUV ±  ± ± 2YHU\HDUVWR\HDUV ± ± ± ± 2YHU\HDUV ± ± ±  Total – 1,81,932 33,784 6,77,816 For the year 2016-17 (`LQODNK Liabilities Assets Particulars Borrowings Market Advances Investments from Banks Borrowings GD\WRGD\V 2QHPRQWK    ± 2YHUPRQWKWRPRQWKV ±   ± 2YHUPRQWKVWRPRQWKV ±   ± 2YHUPRQWKVWRPRQWKV ±   ± 2YHUPRQWKVWR\HDU ± ±  ± 2YHU\HDUWR\HDUV ±  ±  2YHU\HDUVWR\HDUV ± ± ± ± 2YHU\HDUV ± ± ±  Total 200 1,37,003 61,721 5,91,797

 Annual Report 2017-18

NOTE “37” : Disclosure of details as required by RBI/DNBR/2016-17/39 i.e. Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016 dated August 25, 2016 (Updated as on November 09, 2017)

Liabilities Side: (`LQODNK Amount Outstanding as at Amount Overdue as at Sr. Particulars No. March 31, March 31, March 31, March 31, 2018 2017 2018 2017 (1) Loans and advances availed by the CIC inclusive of interest accrued thereon but not paid: (a) 'HEHQWXUHV RWKHUWKDQWKRVHIDOOLQJ ZLWKLQWKHPHDQLQJRI3XEOLFGHSRVLWV (i) Secured – ± – ±  LL 8QVHFXUHG 1,37,797  – ± E  'HIHUUHG&UHGLWV – ± – ± F  7HUP/RDQV – ± – ± G  ,QWHUFRUSRUDWHORDQVDQGERUURZLQJ – ± – ± H  &RPPHUFLDO3DSHU 51,932  – ± I  2WKHUORDQV %DQN2YHUGUDIW –  – ±

Assets Side: (`LQODNK Amount Outstanding as at Sr. Particulars No. March 31, March 31, 2018 2017 (2) Break up of Loans and Advances including bills receivables (other than those included in (4) below) a) Secured – ± E  8QVHFXUHG 37,637  (3) Break up of Leased Assets and stock on hire and other assets counting towards AFC activities L  /HDVHDVVHWVLQFOXGLQJOHDVHUHQWDOVXQGHUVXQGU\GHEWRUV  D  )LQDQFLDO/HDVH – ±  E  2SHUDWLQJ/HDVH – ± LL  6WRFNRQKLUHLQFOXGLQJKLUHFKDUJHVXQGHUVXQGU\GHEWRUV  D  $VVHWVRQKLUH – ±  E  5HSRVVHVVHGDVVHWV – ± iii) 2WKHUORDQVFRXQWLQJWRZDUGV$VVHW)LQDQFLQJ&RPSDQ\DFWLYLWLHV  D  /RDQVZKHUHDVVHWVKDYHEHHQUHSRVVHVVHG – ±  E  /RDQVRWKHUWKDQ D DERYH – ±

 Amount Outstanding as at Sr. Particulars No. March 31, March 31, 2018 2017 (4) Break up of Investments &XUUHQW,QYHVWPHQWV   4XRWHG (i) 6KDUHV : D (TXLW\ –  ± E 3UHIHUHQFH –  ± (ii) 'HEHQWXUHVDQG%RQGV –  ± (iii) 8QLWVRI0XWXDO)XQGV –  ± (iv) *RYHUQPHQW6HFXULWLHV –  ± (v) 2WKHUV –  ±   8QTXRWHG (i) 6KDUHV D (TXLW\ –  ± E 3UHIHUHQFH –  ± (ii) 'HEHQWXUHVDQG%RQGV –  ± (iii) 8QLWVRI0XWXDO)XQGV –  ± (iv) *RYHUQPHQW6HFXULWLHV –  ± (v) 2WKHUV –  ± /RQJ7HUP,QYHVWPHQWV   4XRWHG (i) 6KDUHV (a) (TXLW\ 125  E 3UHIHUHQFH –  ± (ii) 'HEHQWXUHVDQG%RQGV –  ± (iii) 8QLWVRI0XWXDO)XQGV –  ± (iv) *RYHUQPHQW6HFXULWLHV –  ± (v) 2WKHUV –  ±   8QTXRWHG (i) 6KDUHV (a) (TXLW\ 3,67,190  E 3UHIHUHQFH 2,65,817  (ii) 'HEHQWXUHVDQG%RQGV 12,500  (iii) 8QLWVRI0XWXDO)XQGV 201  (iv) *RYHUQPHQW6HFXULWLHV – ± Y  2WKHUV 9HQWXUH&DSLWDO)XQGV 35,333 

 Annual Report 2017-18

  %RUURZHUJURXSZLVHFODVVL¿FDWLRQRIDVVHWV¿QDQFHGDVLQ  DQG  DERYH For 2017-18 (`LQODNK Category Amount net of provisions Secured Unsecured Total (1) 5HODWHG3DUWLHV (a) 6XEVLGLDULHV ±  33,788 E &RPSDQLHVLQWKHVDPHJURXS ± ± – (c) 2WKHUUHODWHGSDUWLHV ±  269 (d) 2WKHUWKDQUHODWHGSDUWLHV ±  3,580 Total – 37,637 37,637

For 2016-17 (`LQODNK Category Amount net of provisions Secured Unsecured Total (1) 5HODWHG3DUWLHV (a) 6XEVLGLDULHV ±  61,756 E &RPSDQLHVLQWKHVDPHJURXS ± ± – (c) 2WKHUUHODWHGSDUWLHV ±  269 (d) 2WKHUWKDQUHODWHGSDUWLHV ±  2,691 Total – 64,716 64,716

  ,QYHVWRU JURXSZLVH FODVVL¿FDWLRQ RI DOO LQYHVWPHQWV FXUUHQW DQG ORQJWHUP  LQ VKDUHV DQG securities (both quoted and unquoted) (`LQODNK As at March 31, 2018 As at March 31, 2017 Market Market Value / Value / Book Value Book Value Category Breakup Breakup (Net of (Net of Value or Value or Provisions) Provisions) Fair Value Fair Value or NAV * or NAV * (1) 5HODWHG3DUWLHV  D  6XEVLGLDULHV 6,33,057 6,33,057    E  &RPSDQLHVLQWKHVDPHJURXS 18,528 18,528    F  2WKHUUHODWHG3DUWLHV 21,340 21,340    G  2WKHUWKDQUHODWHGSDUWLHV 4,898 4,891   TOTAL 6,77,823 6,77,816 5,91,836 5,91,797

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 Annual Report 2017-18

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  Annual Report 2017-18

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Registered Office Address: Tower A, 11th Floor, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai - 400013. Telephone : +91 22 6606 9000