Vide Sub-Lease Agreement dated 18th May, 2011 CR Retail Malls (India) Ltd.

leased out seven screen multiplex at Phoenix Mills, Lower Parel to PVR Ltd. According to clause No. 3.5 of the Sub-Lease Agreement CR Retail is liable to pay property tax in respect of the property/multiplex space an amount not exceeding of Rs. 80,39,000/- (Rupees Eighty Lacs Thirty Nine Thousand Only) annually. In case the annual property tax amount increase by BMC the excess amount over and above Rs.80,39,000/- p.a. shall be borne by PVR. BMC has revised the property tax rates under Capital Value system and therefore, levied the property tax Rs. 1,24,86,160/- p.a. w.e.f. 01.04.2010. According to which there is total outstanding of Rs. 1,33,33,970/- towards balance property tax for period 1/4/2010 to 31/3/2013. As per clause above same shall be borne by PVR Ltd. PVR intends to object such increase in the property tax and is therefore preparing for filing the complaint/appeal with the appropriate Authority of BMC/Courts of Law under letter of authority from CR Retail. Accordingly till the final outcome of the complaint/appeal CR Retail shall pay its share of annual property tax to the extent of Rs. 80,39,000/- p.a. against annual demand of Rs.1,24,86,160/That PVR shall be liable to pay the Property Tax in respect of the Multiplex Space over and above Rs. 80,39,000/- p.a. and also any interest/penalty, if any levied by BMC for delay of payment of the increased amount of property tax which is in excess of Rs.80,39,000/- p.a. To this effect PVR has issued Undertaking cum Indemnity dated 12 June 2013 favouring CR Retail.