FUTURE ADITYA BIRLA NUVO Notes to Accounts

NOTE: 1

DISCONTINUING OPERATIONS

The Company, in its Committee of Directors meeting held on 6th April,
2013, had decided to divest the Carbon Black business with effect from
1st April, 2013, on a going concern basis, by way of a slump sale, to
SKI Carbon Black (India) Private Limited.

In accordance with approval given by the shareholders, the Company had
accounted for slump sale of Carbon Black business (identified as
reportable segment under AS-17) with effect from 1st April, 2013, on a
going concern basis to SKI Carbon Black (India) Private Limited
pursuant to Business Transfer Agreement entered into with them and
accordingly, in the previous year, a gain of Rs. 24.06 Crore on the
said slump sale had been recognised as an exceptional item and a net
tax credit of Rs. 40.70 Crore (including reversal of deferred tax
credit) had been netted off with the tax expense.

NOTE: 2

RETIREMENT BENEFITS

Disclosure in respect of Employee Benefits pursuant to Accounting
Standard-15 (Revised)

(a) The details of the Company''s Defined Benefit Plans in respect of
Gratuity (funded by the Company): General Description of the Plan

The Company operates gratuity plan through a trust wherein every
employee is entitled to the benefit equivalent to fifteen days salary
last drawn for each completed year of service. The same is payable on
termination of service or retirement, whichever is earlier. The benefit
vests after five years of continuous service. In case of some
employees, the Company''s scheme is more favourable as compared to the
obligation under Payment of Gratuity Act, 1972.

NOTE: 3

LIST OF RELATED PARTIES PARTIES WHERE CONTROL EXIST SUBSIDIARIES

Aditya Birla Financial Services Limited (ABFSL) (formerly Aditya Birla
Financial Services Private Limited)

Aditya Birla Capital Advisors Private Limited (ABCAPL)

Aditya Birla Customer Services Limited (ABCSL) (formerly Aditya Birla
Customer Services Private Limited)

Aditya Birla Trustee Company Private Limited (ABTCPL)

Aditya Birla Money Limited (ABML)

Aditya Birla Commodities Broking Limited (ABCBL)

Aditya Birla Financial Shared Services Limited (ABFSSL)

Aditya Birla Finance Limited (ABFL)

Aditya Birla Securities Private Limited (ABSPL) (up to 10th September,
2014)

Aditya Birla Insurance Brokers Limited (ABIBL)

Birla Sun Life Asset Management Company Limited (BSAMC)

Birla Sun Life AMC (Mauritius) Ltd.

Aditya Birla Sun Life AMC Ltd., Dubai

Aditya Birla Sun Life AMC Pte. Ltd., Singapore

India Advantage Fund Ltd. (IAFL)

International Opportunities Fund SPC (IOF)

Birla Sun Life Trustee Company Private Limited (BSTPL)

Aditya Birla Housing Finance Ltd. (ABHFL) (formerly LIL Investment
Limited)

Aditya Birla Money Mart Limited (ABMML)

Aditya Birla Money Insurance Advisory Services Limited (ABMIASL)

ABNL IT & ITES Limited (IT&ITES)

Aditya Birla Minacs BPO Private Limited (ABMBPL)

Aditya Birla Minacs Worldwide Limited (ABMWL) (up to 8th May, 2014)

Aditya Birla Minacs Philippines Inc. (ABMPI) (up to 8th May, 2014)

AV TransWorks Limited. (AVTL) (up to 8th May, 2014)

Aditya Birla Minacs Worldwide Inc. (ABMWI) (up to 8th May, 2014)

Aditya Birla Minacs BPO Limited (ABMBL) (up to 8th May, 2014)

Minacs Worldwide SA de CV (MWSC) (up to 8th May, 2014)

The Minacs Group (USA) Inc. (MGI) (up to 8th May, 2014)

Bureau of Collection Recovery, LLC (BCR) (up to 8th May, 2014)

Bureau of Collections Recovery (BCR) Inc. (up to 8th May, 2014)

Minacs Limited (ML) (up to 8th May, 2014)

Minacs Worldwide GmbH (MWGH) (up to 8th May, 2014)

Minacs Kft. (up to 8th May, 2014)

Aditya Vikram Global Trading House Limited (AVGTHL) (up to 29th
September, 2014)

Birla Sun Life Insurance Company Limited (BSLICL)

Birla Sun Life Pension Management Limited (BSLPML) (w.e.f. 19th
January, 2015)

ABNL Investment Limited (ABNL Inv)

Shaktiman Mega Food Park Private Limited (SMFP)

Madura Garments Lifestyle Retail Company Limited (MGLRCL)

Indigold Trade and Services Limited (ITSL)

Pantaloons Fashion & Retail Limited (PFRL)

OTHER RELATED PARTIES JOINT VENTURES

IDEA Cellular Limited (IDEA) ASSOCIATES

Birla Securities Limited (BSL) (up to 14th November, 2014) K

EY MANAGEMENT PERSONNEL (KMP)

Mr. Lalit Naik - Managing Director (Deputy Managing Director upto 30th
June, 2014)

Mr. Sushil Agarwal - Whole-time Director

Dr. Rakesh Jain - Managing Director (Upto 30th June, 2014)

ENTERPRISES HAVING COMMON KEY MANAGEMENT PERSONNEL (KMP)

Aditya Birla Science & Technology Company Private Limited (ABSTCPL)
(Common KMP Mr. Lalit Naik) (w.e.f. 30th March, 2015)

NOTE: 4

OTHER SIGNIFICANT NOTES

(i) The Company has presented segment information in its Consolidated
Financial Statements, which are part of the same annual report.
Accordingly, in terms of provisions of Accounting Standard on Segment
Reporting (AS-17) no disclosure related to the segment are presented in
the Standalone Financial Statements.

(ii) The Company is one of the Promoter members of Aditya Birla
Management Corporation Private Limited, a Company limited by guarantee
which has been formed to provide a common pool of facilities and
resources to its members, with a view to optimise the benefits of
specialisation and minimize cost to each member. The Company''s share of
expenses under the common pool has been accounted for under the
appropriate head.

(iii) The Company has a process whereby periodically all long-term
contracts are assessed for material foreseeable losses. At the year
end, the Company has reviewed and ensured that adequate provision as
required under any law/accounting standards for material foreseeable
losses on such long-term contracts has been made in the books of
account.

(iv) The Company''s pending litigations comprise of claims by or against
the Company primarily by the workers/employees/ customers/suppliers,
etc., and proceedings pending with tax and other government
authorities. The Company has reviewed its pending litigations and
proceedings and has adequately provided for where Provisions are
required and disclosed the contingent liabilities where applicable, in
its financial statements. The Company does not expect the outcome of
these proceedings to have a materially adverse effect on its financial
results. In respect of litigations, where the management assessment of
a financial outflow is probable, the Company has made adequate
provision in the financial statements and appropriate disclosure for
contingent liabilities is given in Note 25.

(v) ABNL IT & ITeS Limited, a wholly owned subsidiary of the Company,
at its meeting of the Board of Directors, held on 30th January, 2014,
had approved the divestment of shares held by it in its IT-ITeS
subsidiary, Aditya Birla Minacs Worldwide Limited, and had executed a
Share Purchase Agreement with a group of investors led by Capital
Square Partners and CX Partners subject to fulfilment of requisite
consents and approvals.

All requisite consents and approvals which were part of closing
conditions had been completed. With this divestment, Aditya Birla
Minacs Worldwide Limited and its eleven subsidiaries ceased to be
subsidiaries of Aditye Birla Nuvo Limited, with effect from 9th May,
2014.

(vi) The Board of Directors of Aditya Birla Nuvo Limited (the Company)
at its meeting held on May 03, 2015, have considered and approved a
Composite Scheme of Arrangement between the Company, Madura Garments
Lifestyle Retail Company Limited (MGLRCL) (100% subsidiary) and
Pantaloons Fashion & Retail Limited (PFRL) (72.62% subsidiary) and
their respective shareholders and creditors u/s Sections 391 to 394 of
the Companies Act, 1956 ["Composite Scheme"].

Pursuant to the said scheme Madura Fashion, a branded apparel retailing
division of the Company and Madura Lifestyle, a luxury branded apparel
retailing division of MGLRCL will be demerged into PFRL. Shareholders
to the Company will get 26 new equity shares of PFRL for every 5 equity
shares held in the Company pursuant to demerger of Madura Fashion.
Shareholders of MGLRCL will get 7 new equity shares of PFRL for every
500 equity shares held in MGLRCL. Preference shareholders of MGLRCL
will get 1 new equity share of PFRL. After the scheme of arrangement
new holding of the Company (directly and through other subsidiaries) in
PFRL would be 9.06%.

The Scheme is subject to the necessary statutory and regulatory
approvals including approvals of the respective High Courts, the Stock
Exchanges, SEBI, the respective Shareholders and lenders/creditors of
each of the companies involved in the Composite Scheme. The appointed
date of the Scheme will be 1st April, 2015, and expected to be
consummated in next 6 to 9 months.

(vii) Figures of Rs. 50,000 or less have been denoted by ''?''.

(viii) Previous Year''s figures have been regrouped/rearranged, wherever
necessary.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
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