Notes to Accounts of GDL Leasing & Finance Ltd.

Mar 31, 2024

Provisions and Contingent Liabilities

a) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive)
as a result of a past event, and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of obligation. Provisions are measured at the best estimate of the
expenditure required to settle the present obligation, at the balances sheet date.

If the effect of the time value of money is material, provisions are discounted to reflect its
present value using a current pre-tax rate that reflects the current market assessments of
the time value of money and the risks specific to the obligation. When discounting is used,
the increase in the provision due to the passage of time is recognised as a finance cost.

b) Contingent Liabilities

A disclosure for a contingent liability is made when there is a possible obligation arising
from past events, the existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation arising as a result of past event that probably will not
require an outflow of resources or where a reliable estimate of the obligation cannot be
made.

c) Provision for NPA & Standard Assets

All loans and other credit exposures, where the installments are overdue for a period of six
months or more are classified as NPA. Provision is made in respect of NPA and SA in
accordance with the stipulations of Prudential Norms prescribed in the “Non-Banking
Financial company - Non-systemically Important Non-deposit taking company (Reserve
Bank) Directions, 2016” by the RBI.

Revenue Recognition

a) Revenue is recognized to the extent that it is probable that the economic benefit will flow to
the company and the revenue can be reliably measured. The following specific recognition
criteria must be fulfilled before revenue is recognized.

b) Interest and other dues are accounted on accrual basis except in the case of non¬
performing loans where it is recognized upon realization, as per the income recognition and
assets classification norms prescribed by the RBI.

c) Income or discounted instruments are recognized over the tenure of the investment on a
straight line method.

d) Dividend is accounted when the right to receive is established.

e) Front end fees on processing of loans are recognized upfront as income.

f) All other fees are recognized when reasonable right to recovery is established, revenue can
be reliably measured as and when they become due.

g) Other revenue is recognized on accrual basis and no significant uncertainty exists as to its
realization or collection.

h) The Company has concluded that the impact of COVID - 19 is not material based on such
evaluation. Due to the nature of the pandemic, the Company will continue to monitor
developments to identify significant uncertainties relating to revenue in future periods.

Employee Benefits

Short Term Employee Benefits

All Employee benefits payable within twelve months of rendering the services are classified as
short term benefits. Such benefits include salaries, wages, bonus, awards, ex-gratia,
performance incentive/pay etc. and the same are recognized in the period in which the
employee renders the related services.

Operating leases

Operating leases where the lessor effectively retains substantially all the risks and benefits of
ownership over the leased term are classified as operating leases. Operating lease rentals are
recognized as an expense in the statement of profit and loss on straight line basis over the
lease term, unless the payments are structured to increase in line with the expected general
inflation to compensate for the lessor in expected inflationary cost increase.

Taxation

Tax expense for the year comprises of Current Tax and Deferred Tax.

a) Current Tax

Current income tax, assets and liabilities are measured at the amount expected to be paid
to or recovered from the taxation authorities in accordance with the Income Tax Act, 1961
and the Income Computation and Disclosure Standards (ICDS) enacted in India by using
tax rates and the tax laws that are enacted at the reporting date.

b) Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at
the reporting date. Deferred tax assets and liabilities are recognised for all deductible
temporary differences, the carry forward of unused tax credits and any unused tax losses.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised. The carrying amount of deferred
tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date
and are recognised to the extent that it has become probable that future taxable profits will
allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the year when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.

Earnings per Share:

Basic earnings per share is calculated by dividing net profit of the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year
attributable to equity shareholders and the weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive potential equity shares.

NOTE 18: OTHER NOTES TO ACCOUNTS

18.1 Contingent Liabilities and Commitments: There is no Contingent liability and
commitment to capital advance during the year.

18.2 No provision for gratuity has been made, as the provisions of Gratuity Act 1972 is not
applicable on the Company in respect of total no. of employees.

18.3 As required Under the Micro, Small and Medium Enterprise Development Act, 2006 there
have generally been no reported cases of delays in payments to Micro, Small and Medium
Enterprise or of interest payments due to delays in such payments. They are in the process
of compiling relevant information from its suppliers about their coverage under the Micro,
Small and Medium Enterprise Development Act, 2006.

18.4 Expenditure in Foreign Exchange: Nil

18.5 Earnings in Foreign Exchange: Nil

18.6 According to the management of the company the Loans and Advances of the value
3,13,850.73 given by the company outstanding as on 31.03.2024 are all standard assets
and hence provision under Prudential Norms prescribed in the “Non-Banking Financial
company - Non-systemically Important Non-deposit taking company (Reserve Bank)
Directions, 2016” by the RBI has accordingly been made.

The fair value of the financial assets and liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than
in a forced or liquidation sale. The following methods and assumptions were used to
estimate the fair values:

1. The Company has disclosed financial instruments such as trade receivables, cash and
cash equivalents, other bank balances, trade payables, other financial assets and
liabilities at carrying value because their carrying amounts are a reasonable
approximation of the fair values due to their short-term nature.

2. Financial instruments with fixed and variable interest rates are evaluated by the
Company based on parameters such as interest rates and individual credit worthiness of
the counter party. Based on this evaluation, allowances are taken to the account for the
expected losses of these receivables.

18.11 Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital
management.

The Company manages its capital so as to safeguard its ability to continue as a going
concern and to optimize returns to shareholders. The capital structure of the Company is
based on management’s judgement of its strategic and day-to-day needs with a focus on
total equity to maintain investor, creditors and market confidence.

The management and the Board of Directors monitors the return on capital as well as the
level of dividends to shareholders. The Company may take appropriate steps in order to
maintain, or if necessary adjust, its capital structure.

18.12 Financial risk management objectives and policies

The Company’s principal financial liabilities, comprise of trade and other payables. The
main purpose of these financial liabilities is to finance the Company’s operations. The
Company’s principal financial assets include loans and advances, cash and cash
equivalents and other bank balances that are derived directly from its operations.

The Company’s financial risk management is an integral part of how to plan and execute its
business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company’s senior management oversees the management of these risks. The senior
professionals working to manage the financial risks and the appropriate financial risk
governance framework for the Company are accountable to the Board of Directors and
Audit Committee.

This process provides assurance to Company’s senior management that the Company’s
financial risk-taking activities are governed by appropriate policies and procedures and that
financial risk are identified, measured and managed in accordance with Company policies
and Company risk objective.

The management reviews and agrees policies for managing each of these risks which are
summarized as below:

a) Market Risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument
will fluctuate because of changes in market prices. Market prices comprises three types
of risk: currency rate risk, interest rate risk and other price risks, such as equity price
risk and commodity price risk. Financial instruments affected by market risks include
borrowings, security deposits, investments and foreign currency receivables and
payables. The sensitivity analyses in the following sections relate to the position as at
March 31, 2024. The analyses exclude the impact of movements in market variables on;
the carrying values of gratuity and other post-retirement obligations; provisions; and the
non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is
the effect of the assumed changes in the respective market risks. This is based on the
financial assets and financial liabilities held as of March 31, 2024.

i) Interest Rate Risk

Interest rate is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. Company’s

financial liabilities comprises of trade and other payables; however, these are not
exposed to risk of fluctuation in market interest rate as the rates are fixed at the time
of contract/agreement and do not change for any market fluctuation.

b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a
financial instrument, leading to a financial loss. The Company is exposed to credit risk
from its operating activities (primarily trade receivables) and from its financing activities,
including deposits with banks, foreign exchange transactions and other financial
instruments.

i) Financial instruments and cash & bank deposits

Credit risk from balances with banks and financial institutions is managed by the
Company’s finance department in accordance with the Company’s policy. Investments
of surplus funds are made in bank, deposits. The limits are set to minimize the
concentration of risks and therefore mitigate financial loss through counter party’s
potential failure to make payments.

The Company’s maximum exposure to credit risk for the components of the balance
sheet at March 31, 2024 is the carrying amounts which are given below. Trade
Receivables and other financial assets are written off when there is no reasonable
expectation of recovery, such as debtor failing to engage in the repayment plan with
the Company.

Balances with banks is subject to low credit risks due to good credit ratings assigned
to these banks.

The Company has considered the latest available credit-ratings of customers in view
of COVID-19 to ensure the adequacy of allowance for expected credit loss towards
trade and other receivables.

c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its
obligations on time or at reasonable price. The Company’s objective is to at all times
maintain optimum levels of liquidity to meet its cash and liquidity requirements. The
Company closely monitors its liquidity position and deploys a robust cash management
system. It maintains adequate source of financing through the use of short-term bank
deposits, short term investments and cash credit facility. Processes and policies related
to such risks are overseen by senior management. Management monitors the Company’s

liquidity position through rolling forecasts on the basis of expected cash flows. The
Company assessed the concentration of risk with respect to its debt and concluded it to
be very low.

Maturity profile of financial liabilities

The table below provides the details regarding the remaining contractual maturities of
financial liabilities at the reporting date:

The fair value of the financial assets and liabilities is included at the amount at which
the instrument could be exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale. The fair-value of the financial-instruments
factor the uncertainties arising out of COVID-19, where applicable.

18.13 Previous year figures have been regrouped / reclassified wherever it considered

necessary.

For S. Agarwal & Co. For and behalf of the Board

(Chartered Accountants) For GDL Leasing and Finance Limited

FRN: 000808N

Sd/- Sd/-

Sd/- Prem Kumar Jain Ashish Jain

S N Agarwal (Director) (Director)

M. No.012103 DIN: 001151409 DIN: 02196387

Sd/-

Arvind Kumar Baid
(CFO)

Date: 29.05.2024

Place: New Delhi

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Mar 31, 2014

1. Corporate Information

GDL Leasing and Finance Limited is a public company domiciled in India and incorporated under the Companies Act, 1956. The company is a non-deposit accepting non banking finance company or NBFC-ND-SI registered with Reserve Bank of India (RBI). The company is engaged in the business of financing of Loans, Sales and Purchase of Shares and Stock.

2. Basis of Preparation

The financial statement of the company has been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statement to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statement has been prepared on an accrual basis and under historical cost convention

The company follows the prudential norms issued by the Reserve Bank of India for Assets classification, Income recognition and provisioning for non-performing assets. Besides additional amount is written/off provided for when the management, on a review, considers it necessary.

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Mar 31, 2013

1. Additional Information Pursuant to the provisions of paragraph 3 & 4 of part II schedule VI of the Companies Act, 1956.

a) Expenditure of employees who were in receipt of remuneration of not less than Rs. 60,00,000/- p.a. or Rs. 5,00,000/- p.m. when employed for the part of the year: Nil (Prev. Year-Nil).

b) Capacity and production consumption of raw material-N.A.

2. Loans Granted by the company are secured/ partly secured by:

a. Pledge of shares & other securities.

b. Personnel Guarantee

Interest has been charged from all the parties at different rates to whom Loans have been made.

3. Balance of Debtors, Creditors and parties to whom loans and advances have given, are subject to confirmation.

4. Previous year figures have been regrouped or rearranged wherever necessary. Figures shown in the Bracket shows the opposite of given account.

5. Note 1 to 17 form an integral part of the balance sheet and the Profit & Loss account have been duly authenticated.

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Mar 31, 2010

Current Year Previous Year.

1. Contingent Liabilities.

2. Transaction in which Directors are Interested: NIL

3. Loans Granted by the company are secured/ partly secured by:

a. Pledge of shares & other securities.

b. Personnel Guarantee

Interest has been charged from all the parties at different rates to whom Loans have been made.

4. Balance of Debtors, Creditors and parties to whom loans and advances have given, are subject to confirmation.

5. Previous year figures have been regrouped or rearranged wherever necessary. Figures shown in the Bracket shows the opposite of given account.

6. Schedule I to 8 from an integral part of the balance sheet and the Profit & Loss account have been duly authenticated B.

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Mar 31, 2009

Current Year Previous Year

1 Contingent Liabilities.

2 Transaciion in which directors are interested: NIL Rent paid tor office premises to Mr. Deepak Gangwani S/O Sh. Gopi Chand Gangwam.

Current Year Previous Year

Rs. 96000/- 84000/-

3. Additional Information Pursuant to the provisions of paragraph 3 & -I of part II schedule VI of the Companies Act. 1956

a) Expenditure of employees who were in receipt of remuneration of not less than Rs. 24.00.000/- p.a. or. Rs. 2-00-000/- p.m. when • employed for the part of the year: Nil (Prev. Year Nil).

b) Capacity and production consumption of raw material-N.A.

4. Loans Granted bv the conipaio are secured/ partly secured by:

a. Pledge of shares & either securities.

b. Personnel Guarantee Interest has been charged front all the parties at different rates to whom Loans have been made.

5. Balance of Debtors. Creditors and parties to whom loans and advances, have given are subject to confirmation.

6. Previous year figures have been regrouped or rearranged wherever necessary. Figures shown in the Bracket shows the opposite of given account.