Notes to Accounts of HB Leasing & Finance Co Ltd.

Mar 31, 2025

3.8 Provisions :

Provisions are recognised when there is a present obligation 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 there is a reliable estimate of the amount
of the obligation. Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate.

The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the end of the reporting period, taking into
account the risks and uncertainties surrounding the obligation.

Provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and the risks
specific to the liability.

When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.

3.9 Employee Benefits:

A) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid if the Company has
a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.

B) Contribution to provident fund and ESIC

Company''s contribution paid/payable during the year to provident fund and
ESIC is recognised in the Statement of profit and loss.

C) Gratuity

The Company''s liability towards gratuity scheme is determined by independent
actuaries, using the projected unit credit method. The present value of the
defined benefit obligation is determined by discounting the estimated future
cash outflows by reference to market yields at the end of the reporting period
on government bonds that have terms approximating to the terms of the related
obligation. Past services are recognised at the earlier of the plan amendment /
curtailment and recognition of related restructuring costs/ termination benefits.

The net interest cost is calculated by applying the discount rate to the net
balance of the defined benefit obligation and the fair value of plan assets. This
cost is included in employee benefit expense in the Statement of profit and loss.

Remeasurement gains/ losses-

Remeasurement of defined benefit plans, comprising of actuarial gains / losses,
return on plan assets excluding interest income are recognised immediately in
the balance sheet with corresponding debit or credit to Other Comprehensive
Income (OCI). Remeasurements are not reclassified to Statement of profit and
loss in the subsequent period.

Remeasurement gains or losses on long-term compensated absences that are
classified as other long-term benefits are recognised in Statement of profit and
loss.

D) Leave encashment / compensated absences / sick leave -

The Company provides for the encashment / availment of leave with pay
subject to certain rules. The employees are entitled to accumulate leave subject
to certain limits for future encashment / availment. The liability is provided based
on the number of days of unutilized leave at each balance sheet date on the
basis of an independent actuarial valuation.

3.10 Revenue recognition

A) Recognition of interest income on loans

Interest income is recognised in Statement of profit and loss using the effective
interest method for all financial instruments measured at amortised cost, debt
instruments measured at FVOCI and debt instruments designated at FVTPL.
The ''effective interest rate'' is the rate that exactly discounts estimated future
cash payments or receipts through the expected life of the financial instrument.

The calculation of the effective interest rate includes transaction costs and fees
that are an integral part of the contract. Transaction costs include incremental
costs that are directly attributable to the acquisition of financial asset.

If expectations regarding the cash flows on the financial asset are revised
for reasons other than credit risk, the adjustment is recorded as a positive or
negative adjustment to the carrying amount of the asset in the balance sheet
with an increase or reduction in interest income. The adjustment is subsequently
amortised through Interest income in the Statement of profit and loss.

The Company calculates interest income by applying the EIR to the gross
carrying amount of financial assets other than credit-impaired assets. When
a financial asset becomes credit-impaired, the Company calculates interest
income by applying the effective interest rate to the net amortised cost of the
financial asset. If the financial asset cures and is no longer creditimpaired,
the Company reverts to calculating interest income on a gross
basis.

Additional interest and interest on trade advances, are recognised when they
become measurable and when it is not unreasonable to expect their ultimate
collection.

Income from bill discounting is recognised over the tenure of the instrument so
as to provide a constant periodic rate of return.

B) Fees and commission income :

Fee based income are recognised when they become measurable and when it
is probable to expect their ultimate collection.

Commission and brokerage income earned for the services rendered are
recognised as and when they are due.

C) Dividend and interest income on investments :

- Dividends are recognised in Statement of profit and loss only when the
right to receive payment is established, it is probable that the economic
benefits associated with the dividend will flow to the Company and the
amount of the dividend can be measured reliably.

- Interest income from investments is recognised when it is certain that the
economic benefits will flow to the Company and the amount of income
can be measured reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective interest rate
applicable.

3.11 Finance costs

Finance costs include interest expense computed by applying the effective interest
rate on respective financial instruments measured at Amortised cost. Financial
instruments include bank term loans, non-convertible debentures, fixed deposits
mobilised, commercial papers, subordinated debts and exchange differences arising
from foreign currency borrowings to the extent they are regarded as an adjustment to
the interest cost. Finance costs are charged to the Statement of profit and loss.

3.12 Taxation - Current and deferred tax:

Income tax expense comprises of current tax and deferred tax. It is recognised in
Statement of profit and loss except to the extent that it relates to an item recognised
directly in equity or in other comprehensive income.

A) Current tax :

Current tax comprises amount of tax payable in respect of the taxable income or
loss for the year determined in accordance with Income Tax Act, 1961 and any
adjustment to the tax payable or receivable in respect of previous years. The
Company''s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

B) Deferred tax :

Deferred tax assets and liabilities are recognized for the future tax consequences
of temporary differences between the carrying values of assets and liabilities
and their respective tax bases. Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting period. The
measurement of deferred tax liabilities and assets reflects the tax consequence
that would follow from the manner in which the Company expects, at the end of
the reporting period, to recover or settle the carrying amount of its assets and
liabilities.

Deferred tax assets are recognized to the extent that it is probable that future
taxable income will be available against which the deductible temporary
difference could be utilized. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial recognition of
assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit. The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.

3.13 Leases

As a lessee

The Company has applied Ind AS 116. For these short term and low value leases, the
company recognizes the lease payments as an expense in the Statement of Profit
and Loss on a Straight line basis over the term of lease.

3.14 Exceptional items

When items of income and expenses within profit or loss from ordinary activities
are of such size, nature or incidence that their disclosure is relevant to explain the
performance of the enterprise for the period, the nature and amount of such items is
disclosed separately as Exceptional items.

3.15 Earning per share

The Company reports basic and diluted earnings per equity share. Basic earnings per
equity share have computed by dividing net profit/loss attributable to the equity share
holders for the year by the weighted average number of equity shares outstanding
during the year. Diluted earnings per equity share have been computed by dividing
the net profit attributable to the equity share holders after giving impact of dilutive
potential equity shares for the year by the weighted average number of equity shares
and dilutive potential equity shares outstanding during the year, except where the
results are anti-dilutive.

3.16 Recent accounting development

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended March 31, 2025, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.

29. DUE TO MICRO, SMALL AND MEDIUM ENTERPRISES

To the extent information available with the company, it has no dues to the Micro,Small and
medium enterprises as at 31st March, 2025 and 31st March, 2024.

30. CAPITAL MANAGEMENT

The Company''s policy is to maintain a strong capital base so as to maintain investor,
creditor and market confidence and to sustain future development of the business.

The company has adequate cash and bank balances. The company monitors its capital
by careful scrutiny of the cash and bank balances, and a regular assessment of any debt
requirements. In the absence of any significant amount of debt, the maintenance of debt
equity ratio etc. may not be of any relevance to the Company.

31. FINANCIAL RISK MANAGEMENT
Financial risk factors

The Company''s principal financial liabilities, comprise borrowings and trade and other
payables. The main purpose of these financial liabilities is to manage finances for the
Company''s operations. The Company''s principal financial assets include inter corporate
deposits, loans, cash and cash equivalents and other receivables. The Company''s
activities expose it to a variety of financial risks:

I. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market prices. Market prices comprise three
types of risk: currency rate risk, interest rate risk and other price risks, such as
commodity risk. Financial instruments affected by market risk include loans and
borrowings, deposits, investments.

The company is exposed to market risk primarily related to the market value of its
investments.

Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of Financial
Instruments will fluctuate because of change in market interest rates.The company
does not have exposure to the risk of changes in market interest rate as it has interest
free debt obligations.

Currency risk

Currently company does not have transaction in foreign currencies and hence the
company is not exposed to currency risk.

Equity Price Risk

(a) Exposure

The company is exposed to equity price risk arising from Investments held by
the company and classified in the balance sheet as fair value through P & L. To
manage its price risk arising from investment in equity securities, the company
diversifies its portfolio. Diversification of portfoio is done in accordance with the
limits set by the company. The majority of the company''s equity instruments are
listed on the Bombay stock exchange (BSE) or the National stock exchange
(NSE) in India.

(b) Sensitivity analysis- Equity price risk

The table below sumarise the impact of increase/ decrease of the index on the
company''s equity and the profit for the period. The analysis is based on the
assumption that the equity/ index had increased by 2% or decreased by 2% with
all other variable held constant, and that all the company''s equity instruments
moved in line with the Index.

II. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss.The company is exposed
to credit risk from its financing activities towards inter corporate loans where no
significant impact on credit risk has been identified.

III. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and
future cash and collateral obligations without incurring unacceptable losses.The
Company manages its liquidity requirement by analysing the maturity pattern of
Company''s cash flows of financial assets and financial liabilities.

33. FAIR VALUES

The management assessed that Fair Values of Financial Assets and Liabilities are approximately their carrying values.

34. FAIR VALUE HIERARCHY

The company determines fair values of its financial instruments according to the following hierarchy:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use Inputs that have a significant effect on the recorded fair value that are not based on observable market data.
The following table presents the carrying value and fair value of each category of financial assets and liabilities as at March 31,2025:

36. LITIGATION :

The company does not have any pending litigations. However, the company is subject to
legal proceedings and claims which arises during the ordinary course of business. The
management does not reasonably expect that these legal proceedings when ultimately
concluded and decided will have a material and adverse effect on the result of operations
or financial statements.

37. SEGMENT REPORTING:

In the opinion of Management there are no separate reportable segments as per Indian
Accounting Standard (Ind AS-108).

38. The company was not required to spend any amount on Corporate social responsibility
activities during the current and previous year.

39. The Company did not have any long term contracts including derivative contracts for which
there were any material foreseeable losses.

Note: - In the absence of purchase price of share held by struck off companies face
value is considered for reporting purpose.

iii The Company does not have any charges or satisfaction which is yet to be registered
with ROC beyond the statutory period

iv The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year.

v The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.

vi The Company has not advanced or loaned or invested funds to any other person(s)
or entity(ies), including foreign entities (Intermediaries) with the understanding that
the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

vii The Company has not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing
or otherwise) that the Group shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)
or

(b) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries,

viii The Company has not any such transaction which is not recorded in the books of
accounts that has been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.

d) Intra Group Exposures: -

The Company has invested in group companies totalling to Rs. 48.10 Lakhs as at the
year end (Previous Rs. 36.42 Lakhs).

e) Unhedged foreign currency exposure

The Company does not have any unhedged foreign currency exposures as at March
31,2025 and March 31,2024.

f) Disclosure of complaints

The Company does not have any customer interface and thus there are no complaints
received by the NBFCs from customers and from the Offices of Ombudsman during
the year ended March 31,2025 and March 31, 2024.

g) Related Party Disclosure

For related party disclosures refer to Note 25 of the notes to financial statements.

43. The Previous year figures have been regrouped/reclassified,wherever necessary to
confirm to the Current Year''s presentation.

The accompanying notes form an integral part of the Standalone Financial Statements.
As Per our Report of even date attached

FOR N. C. AGARWAL & CO. FOR AND ON BEHALF OF THE

CHARTERED ACCOUNTANTS BOARD OF DIRECTORS OF

Firm Registration Number : 003273N HB LEASING & FINANCE COMPANY LIMITED

Sd/- Sd/- Sd/-

G. K. AGARWAL LALIT BHASIN ANIL GOYAL

(PARTNER) (CHAIRMAN) (MANAGING DIRECTOR)

MEMBERSHIP NO. : 086622 DIN: 00002114 DIN: 00001938

Sd/- Sd/-

PLACE: GURUGRAM C.P SINGH SHAHBAZ KHAN

DATED: 26^th MAY, 2025 (CHIEF FINANCIAL OFFICER) (COMPANY SECRETARY)

---

Mar 31, 2024

3.8 Provisions :

Provisions are recognised when there is a present obligation 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 there is a reliable estimate of the amount
of the obligation. Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate.

The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation at the end of the reporting period, taking into
account the risks and uncertainties surrounding the obligation.

Provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and the risks
specific to the liability.

When there is a possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is made.

3.9 Employee Benefits :

A) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid if the Company has
a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.

B) Contribution to provident fund and ESIC

Company''s contribution paid/payable during the year to provident fund and
ESIC is recognised in the Statement of profit and loss.

C) Gratuity

The Company''s liability towards gratuity scheme is determined by independent
actuaries, using the projected unit credit method. The present value of the
defined benefit obligation is determined by discounting the estimated future
cash outflows by reference to market yields at the end of the reporting period
on government bonds that have terms approximating to the terms of the related
obligation. Past services are recognised at the earlier of the plan amendment /
curtailment and recognition of related restructuring costs/ termination benefits.

The net interest cost is calculated by applying the discount rate to the net
balance of the defined benefit obligation and the fair value of plan assets. This
cost is included in employee benefit expense in the Statement of profit and loss.

Remeasurement gains/ losses-

Remeasurement of defined benefit plans, comprising of actuarial gains / losses,
return on plan assets excluding interest income are recognised immediately in
the balance sheet with corresponding debit or credit to Other Comprehensive
Income (OCI). Remeasurements are not reclassified to Statement of profit and
loss in the subsequent period.

Remeasurement gains or losses on long-term compensated absences that are
classified as other long-term benefits are recognised in Statement of profit and
loss.

D) Leave encashment / compensated absences / sick leave -

The Company provides for the encashment / availment of leave with pay
subject to certain rules. The employees are entitled to accumulate leave subject
to certain limits for future encashment / availment. The liability is provided based
on the number of days of unutilized leave at each balance sheet date on the
basis of an independent actuarial valuation.

3.10 Revenue Recognition

A) Recognition of interest income on loans

Interest income is recognised in Statement of profit and loss using the effective
interest method for all financial instruments measured at amortised cost, debt
instruments measured at FVOCI and debt instruments designated at FVTPL.
The ''effective interest rate'' is the rate that exactly discounts estimated future
cash payments or receipts through the expected life of the financial instrument.

The calculation of the effective interest rate includes transaction costs and fees
that are an integral part of the contract. Transaction costs include incremental
costs that are directly attributable to the acquisition of financial asset.

If expectations regarding the cash flows on the financial asset are revised
for reasons other than credit risk, the adjustment is recorded as a positive or
negative adjustment to the carrying amount of the asset in the balance sheet
with an increase or reduction in interest income. The adjustment is subsequently
amortised through Interest income in the Statement of profit and loss.

The Company calculates interest income by applying the EIR to the gross
carrying amount of financial assets other than credit-impaired assets.

When a financial asset becomes credit-impaired, the Company calculates
interest income by applying the effective interest rate to the net amortised cost
of the financial asset. If the financial asset cures and is no longer creditimpaired,
the Company reverts to calculating interest income on a gross basis.

Additional interest and interest on trade advances, are recognised when they
become measurable and when it is not unreasonable to expect their ultimate
collection

Income from bill discounting is recognised over the tenure of the instrument so
as to provide a constant periodic rate of return.

B) Fees and commission income :

Fee based income are recognised when they become measurable and when it
is probable to expect their ultimate collection.

Commission and brokerage income earned for the services rendered are
recognised as and when they are due.

C) Dividend and interest income on investments :

- Dividends are recognised in Statement of profit and loss only when the right
to receive payment is established, it is probable that the economic benefits
associated with the dividend will flow to the Company and the amount of the
dividend can be measured reliably.

-Interest income from investments is recognised when it is certain that the
economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable.

3.11 Finance costs

Finance costs include interest expense computed by applying the effective interest
rate on respective financial instruments measured at Amortised cost. Financial
instruments include bank term loans, non-convertible debentures, fixed deposits
mobilised, commercial papers, subordinated debts and exchange differences arising
from foreign currency borrowings to the extent they are regarded as an adjustment to
the interest cost. Finance costs are charged to the Statement of profit and loss.

3.12 Taxation - Current and Deferred Tax:

Income tax expense comprises of current tax and deferred tax. It is recognised in
Statement of profit and loss except to the extent that it relates to an item recognised
directly in equity or in other comprehensive income

A) Current Tax :

Current tax comprises amount of tax payable in respect of the taxable income or
loss for the year determined in accordance with Income Tax Act, 1961 and any
adjustment to the tax payable or receivable in respect of previous years. The
Company''s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period.

B) Deferred Tax :

Deferred tax assets and liabilities are recognized for the future tax consequences
of temporary differences between the carrying values of assets and liabilities
and their respective tax bases. Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting period. The
measurement of deferred tax liabilities and assets reflects the tax consequence
that would follow from the manner in which the Company expects, at the end of
the reporting period, to recover or settle the carrying amount of its assets and
liabilities.

Deferred tax assets are recognized to the extent that it is probable that future
taxable income will be available against which the deductible temporary
difference could be utilized. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial recognition of
assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit. The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the
asset to be recovered.

3.13 Leases

As a lessee

The Company has applied Ind AS 116. For these short term and low value leases, the
company recognizes the lease payments as an expense in the Statement of Profit
and Loss on a Straight line basis over the term of lease.

3.14 Exceptional items

When items of income and expenses within profit or loss from ordinary activities
are of such size, nature or incidence that their disclosure is relevant to explain the
performance of the enterprise for the period, the nature and amount of such items is
disclosed separately as Exceptional items.

3.15 Earning Per Share

The Company reports basic and diluted earnings per equity share. Basic earnings per
equity share have computed by dividing net profit/loss attributable to the equity share
holders for the year by the weighted average number of equity shares outstanding
during the year. Diluted earnings per equity share have been computed by dividing
the net profit attributable to the equity share holders after giving impact of dilutive
potential equity shares for the year by the weighted average number of equity shares
and dilutive potential equity shares outstanding during the year, except where the
results are anti-dilutive.

3.16 Recent Accounting Development

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended 31st March, 2024, MCA has not notified any
new standards or amendments to the existing standards applicable to the Company

Description of the nature and purpose of Other Equity:

Capital Reserve

The company recognise profit and Loss on purchase, sale, issue or cancellation of its own
equity instrument to capital reserve.

Securities Premium

Securities premium represents amount received in excess of face value of the equity
shares. The Securities premium can be applied by the company for limited purposes such
as issuance of bonus shares, buy back of shares etc. in accordance with the provisions of
Section 52 of the Companies Act, 2013.

Stautory Reserve

Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI
Act, 1934 through transfer of specified percentage (20%) of net profit every year before
any dividend is declared. The reserve fund can be utilised only for limited purposes as
specified by RBI from time to time and every such utilisation shall be reported to the RBI
within specified period of time from the date of such utilisation.

Retained Earnings

Retained earnings or accumulated surplus represents total of all profits retained since
Company''s inception. Retained earnings are credited with current year profits, reduced
by losses, if any, dividend payouts, transfers to General reserve or any such other appro¬
priations to specific reserves. Debit balance in retained earnings represents balance of
accumulated losses.

Other Comprehensive Income-Remeasurement gain/ (losses) on defined benefit
plan

The Company recognises change on account of remeasurement of the net defined benefit
liability/(asset) as part of other comprehensive income.

29. DUE TO MICRO, SMALL AND MEDIUM ENTERPRISES

To the extent information available with the company, it has no dues to the Micro,Small and
medium enterprises as at 31st March, 2024 and 31st March, 2023.

30. CAPITAL MANAGEMENT

The Company''s policy is to maintain a strong capital base so as to maintain investor,
creditor and market confidence and to sustain future development of the business.

The company has adequate cash and bank balances. The company monitors its capital
by careful scrutiny of the cash and bank balances, and a regular assessment of any debt
requirements. In the absence of any significant amount of debt, the maintenance of debt
equity ratio etc. may not be of any relevance to the Company.

31. Financial Risk Management
Financial risk factors

The Company''s principal financial liabilities, comprise borrowings and trade and other
payables. The main purpose of these financial liabilities is to manage finances for the
Company''s operations. The Company''s principal financial assets include inter corporate
deposits, loans, cash and cash equivalents and other receivables. The Company''s
activities expose it to a variety of financial risks

I. Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market prices. Market prices comprise three
types of risk: currency rate risk, interest rate risk and other price risks, such as
commodity risk. Financial instruments affected by market risk include loans and
borrowings, deposits, investments.

The company is exposed to market risk primarily related to the market value of its
investments.

Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of Financial
Instruments will fluctuate because of change in market interest rates.The company
does not have exposure to the risk of changes in market interest rate as it has interest
free debt obligations.

Currency Risk

Currently company does not have transaction in foreign currencies and hence the
company is not exposed to currency risk.

Equity Price Risk

(a) Exposure

The company is exposed to equity price risk arising from Investments held by
the company and classified in the balance sheet as fair value through P & L. To
manage its price risk arising from investment in equity securities, the company
diversifies its portfolio. Diversification of portfoio is done in accordance with the
limits set by the company. The majority of the company''s equity instruments are
listed on the Bombay stock exchange (BSE) or the National stock exchange
(NSE) in India.

(b) Sensitivity Analysis- Equity Price Risk

The table below sumarise the impact of increase/ decrease of the index on the
company''s equity and the profit for the period. The analysis is based on the
assumption that the equity/ index had increased by 2% or decreased by 2% with
all other variable held constant, and that all the company''s equity instruments
moved in line with the Index.

II. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss.The company is exposed
to credit risk from its financing activities towards inter corporate loans where no
significant impact on credit risk has been identified.

III. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and
future cash and collateral obligations without incurring unacceptable losses.The
Company manages its liquidity requirement by analysing the maturity pattern of
Company''s cash flows of financial assets and financial liabilities.

The table below summarises the maturity profile of the undiscounted cash flows of
the Company''s financial assets and liabilities.

39. The Company did not have any long term contracts including derivative contracts for which
there were any material foreseeable losses.

40. Other statutory information

i The Company does not have any Benami property, where any proceeding has been
initiated or pending against the Group for holding any Benami property.

ii The company has performed an assesment to identify transactions with Struck off
Companies as at 31/03/2024 and the details of which are as under:

36. LITIGATION :

a) The Company is in appeal in respect of various income tax matters.The Contingent
liability in respect thereof is disclosed in note no. 27 (a).Besides,in respect of appeals
decided in favour of the company,the department is in appeals in certain cases.

b) A party has filed a suit for claim of Rs. 158.03/- Lakhs with future interest against the
company in respect of certain leasing and hire purchases agreements pertaining to
more than 20 years back. The company does not acknowledge any debt.

In addition,the company is subject to legal proceedings and claims,which have arisen
in the ordinary course of business.The Company''s management does not reasonably
expect that the above legal claims and proceedings, when ultimately concluded and
decided will have a meterial and adverse effect on the company''s results of opera¬
tions or financial statements.

37. SEGMENT REPORTING:

In the opinion of Management there are no separate reportable segments as per Indian
Accounting Standard (Ind AS-108).

38. The company was not required to spend any amount on Corporate social responsibility
activities during the current and previous year.

Note: - In the absence of purchase price of share held by struck off companies face
value is considered for reporting purpose.

iii The Company does not have any charges or satisfaction which is yet to be registered
with ROC beyond the statutory period

iv The Company has not traded or invested in Crypto currency or Virtual Currency
during the financial year.

v The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.

vi The Company has not advanced or loaned or invested funds to any other person(s)
or entity(ies), including foreign entities (Intermediaries) with the understanding that
the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiarie

vii The Company has not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing
or otherwise) that the Group shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)
or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficia¬
ries,

viii The Company has not any such transaction which is not recorded in the books of
accounts that has been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961

c) Sectoral Exposure

The Company does not have any exposures, in the nature of loans as at 31st March,
2024 and 31st March, 2023.

d) Intra Group Exposures: -

The Company has invested in group companies totalling to Rs. 36.42 Lakhs as at the
year end (Previous Rs. 31.31 Lakhs).

e) Unhedged foreign currency exposure

The Company does not have any unhedged foreign currency exposures as at 31st
March,2024 and 31st March,2023

f) Disclosure of complaints

The Company does not have any customer interface and thus there are no complaints
received by the NBFCs from customers and from the Offices of Ombudsman during
the year ended 31st March, 2024 and 31st March, 2023.

g) Related Party Disclosure

For related party disclosures refer to Note 25 of the notes to financial statements.

43. The Previous year figures have been regrouped/reclassified,wherever necessary to
confirm to the Current Year''s presentation.

The accompanying notes form an integral part of the Standalone Financial Statements.
As Per our Report of even date attached

FOR N. C. AGARWAL & CO. FOR AND ON BEHALF OF THE

CHARTERED ACCOUNTANTS BOARD OF DIRECTORS OF

Firm Registration Number : 003273N HB LEASING & FINANCE COMPANY LIMITED

Sd/- Sd/- Sd/-

G. K. AGARWAL LALIT BHASIN ANIL GOYAL

(PARTNER) (CHAIRMAN) (MANAGING DIRECTOR)

MEMBERSHIP NO. : 086622 DIN: 00002114 DIN: 00001938

Sd/- Sd/-

PLACE: GURUGRAM C.P. SINGH SONALI SHARMA

DATED: 17^TH MAY, 2024 (CHIEF FINANCIAL OFFICER) (COMPANY SECRETARY)

---

Mar 31, 2015

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(a) Income Tax demand disputed Rs. 17,46,60,436/-(Previous year Rs. 13,43,03,760/-) against which appeals are pending with appropriate authorities.

(b) Claims against the company not acknowledged as debts Rs. 1,58,02,781/- (Previous Year Rs. 1,58,02,781/-)

(c ) Guarantees given on behalf of Related Parties:- NIL/- (Previous Year Rs. 7,00,00,000/-)

2. RELATED PARTY TRANSACTIONS

2.1 List of related parties with whom transactions have taken place and relationship:

a) Companies under direct or indirect common influence:

1. HB Securities Ltd.

2. HB Estate Developers Ltd.

3. RRB Master securities Delhi Ltd.

b) Persons having direct/Indirect significant influence 1. Sh. Lalit Bhasin

c) Key Managerial Personnel

1. Sh. C.P. Singh,Chief Financial Officer

2. Swati Vaish,Company Secretary (w.e.f. 19.08.2014)

b) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March 2015 is Rs. 3,22,524/- (Previous Year Rs. 3,22,524/-).

c) General description of the lease arrangement.

The lease is for an initial period of 3 years, which may be renewal for further period as may be mutually agreed upon.

Restrictions imposed by lease arrangement:- - The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

- The lessee shall use the premises for commercial purposes only.

3. Due to Micro, Small and Medium Enterprises

To the extent information available with the company,it has no dues to the Micro,Small and medium enterprises as at 31st March, 2015 and 31st March, 2014.

4. During the year,the company has revised depreciation rates on fixed assets as per the useful life specified in Schedule II to the Companies Act, 2013. Based on the Current estimates, depreciation of Rs 1,66,773/- on account of assets whose useful life has already exhausted as on April 1, 2014 has been added to the depreciation for the year ended March 31,2015.

5. Litigation

a) The Company is in appeal in respect of various income tax matters.The Contingent liability in respect thereof is disclosed in note no. 19 (a). Besides,in respect of appeals decided in favour of the company,the department is in appeals in certain cases.

b) In respect of block assessment for the period 01.04.1987 to 07.08.1997 the assessing officer,has made an assessment order determining demand of Rs. 15,66,41,461/-. The Company has filed application before Income Tax Settlement Commission wherein, the liability admitted and paid was Rs. 9,00,000/-only.In respect of certain directions passed by one member of Settlement commission, the Company has challenged the legality of such directions before the Hon'ble Delhi High Court which has sought reply from the Income Tax Department and,in the meantime, stayed further proceedings before the Settlement commision.

c) A party has filed a suit for claim of Rs. 1,58,02,718/- with future interest against the company in respect of certain leasing and hire purchases agreements pertaining to more than 20 years back. The Company does not have acknowledge any debt.

In addition,the company is subject to legal proceedings and claims,which have arisen in the ordinary course of business.The Company's management does not reasonably expect that the above legal claims and proceedings, when ultimately concluded and decided will have a meterial and adverse effect on the company's results of operations or financial statements.

6. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

7. The Previous year figures have been regrouped/reclassified,wherever necessary to confirm to the Current Year's presentation

---

Mar 31, 2014

* Issued Share capital of the Company has only one class of shares referred to as equity shares having Par value of Rs. 10/. Each holder of Equity Shares is entitled to One vote per share.

* In the event of the Liquidation of the company, the holder of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all Preferential amounts.The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Note: Provision for Sub-Standard and doubtful assets has been sepretely shown in Note no. 6 (Short term Provisions) instead of netting it from the value of asset. This is being done as required in the Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms(Reserve Bank) Directions 2007

2. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(a) Income Tax demand disputed Rs. 13,43,03,760/-(Previous year Rs. 13,43,03,760/-) against which appeals are pending with appropriate authorities.

(b) Claims against the company not acknowledged as debts Rs. 1,58,02,781/- (Previous Year Rs. 1,58,02,781/-)

(c) Guarantees given on behalf of Related Parties:- Rs. 700,00,000/- (Previous Year Rs. 7,00,00,000/-)

In the Opinion of the Management,the aforesaid guarantees had been given in view of overall long term business involvement/relation of the company with the aforesaid companies and the giving of aforesaid guarantees will not have any prejudicial impact on the company.

3. SEGMENT REPORTING

In the opinion of Management there are no separate reportable segments as per Accounting Standard Segment reporting (AS-17).

4. a) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March, 2014 is Rs. 3,22,524/- (Previous Year Rs. 3,22,524/-).

b) General description of the lease arrangement.

The lease is for an initial period of 3 years, which may be renewal for further period as may be mutually agreed upon.

Restrictions imposed by lease arrangement:-

* The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

* The lessee shall use the premises for commercial purposes only.

5. Due to Micro, Small and Medium Enterprises

To the extent information available with the company, it has no dues to the Micro, Small and Medium enterprises as at 31st March, 2014 and 31st March, 2013.

---

Mar 31, 2013

1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(a) Income Ta x demand disputed Rs. 13,43,03,760/- (Previous year Rs. 13,13,42,090/-) against which appeals are pending with appropriate authorities.

(b) Claims against the company not acknowledged as debts Rs. 1,58,02,781/- (Previous Year Rs. 1,58,02,781/-)

(c ) Guarantees given on behalf of Related Parties:- Rs. 7,00,00,000/- (Previous Year Rs. 7,00,00,000/-)

In the Opinion of the Management,the aforesaid guarantees had been given in view of overall long term business involvement/relation of the company with the aforesaid companies and the giving of aforesaid guarantees will not have any prejudicial impact on the company.

2 RELATED PARTY TRANSACTIONS

2.1 List of related parties with whom transactions have taken place and relationship:

a) Companies under direct or indirect common infuence:

1. HB Securities Ltd. 2. HB Estate Developers Ltd.

3. RRB Master securities Delhi Ltd.

b) Persons having direct/Indirect signifcant infuence 1. Sh.Lalit Bhasin

3 Disclosure pursuant to Accounting Standard AS-19 for Leases: - Operating Lease

a) Particulars of the minimum lease payments under Operating Lease:- Not Later than One year Rs. 3,22,524/- (Previous Year Rs. 3,16,608/-) Later than one year but not Rs. NIL/- (Previous Year Rs. NIL/-)

Later than fve years

Later than fve years Rs. NIL/- (Previous Year Rs. NIL/-)

b) Minimum lease payments recognised in the statement of proft & loss account during the year ended 31st March 2013 is Rs. 3,22,524/- (Previous Year Rs. 3,16,608/-).

c) General description of the lease arrangement.

The lease is for an initial period of 3 years, which may be renewal for further period as may be mutually agreed upon.

Restrictions imposed by lease arrangement:- – The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

– The lessee shall use the premises for commercial purposes only.

4 Due to Micro, Small and Medium Enterprises

To the extent information available with the company,it has no dues to the Micro, Small and medium enterprises as at 31st March, 2013 and 31st March, 2012.

---

Mar 31, 2012

The Previous year figures have been regrouped/reclassifed,wherever necessary to conform to the Current Year's presentation

— Issued Share capital of the Company has only one class of shares referred to as equity shares having Par value of Rs. 10/. Each holder of Equity Shares is entitled to One vote per share.

— In the event of the Liquidation of the company, the holder of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(*) Created by way of transfer of specified percentage of profits as per section 45IC of Reserve Bank of India (Amendment) Act,1997.Appropriation from Reserves shall be for the purposes as may be specified by Reserve Bank of India.

(**) Created in earlier years out of Profit and Loss account as per then prevailing provisions of Income tax act.

1.1 In the opinion of the Management, no Provision is required to be made for diminution amounting to Rs. 163651514 (Previous Year Rs. 159420723/-) in the value of Long term/Non current investments as the same is considered to be temporary.

*Includes to Related Party HB Estate Developers Ltd. Rs. 1,15,00,000/- (Previous year Rs. 1,15,00,000/-)

Note: Provision for Sub- Standard and doubtful assets has been separately shown in Note no. 5 (Short term Provisions) instead of netting it from the value of asset. This is being done as required in the Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.

Note: Provision for Sub- Standard and doubtful assets has been separately shown in Note no. 5 (Short term Provisions) instead of netting it from the value of asset. This is being done as required in the Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.

2 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(a) Income Tax demand disputed Rs. 13,13,42,090/- (Previous year Rs. 68,52,164/-) against which appeals are pending with appropriate authorities.

(b) Claims against the company not acknowledged as debts Rs. 1,58,02,781/- (Previous Year Rs. 1,58,02,781/-)

(c ) Guarantees given on behalf of Related Parties:- Rs. 7,00,00,000/- (Previous Year Rs. 22,00,00,000/-)

In the Opinion of the Management, the aforesaid guarantees had been given in view of overall long term business involvement/relation of the company with the aforesaid companies and the giving of aforesaid guarantees will not have any prejudicial impact on the company.

3 RELATED PARTY TRANSACTIONS

3.1 List of related parties with whom transactions have taken place and relationship:

a) Companies under direct or indirect common influence:

1. HB Securities Ltd.

2. HB Estate Developers Ltd.

3. RRB Master securities Delhi Ltd.

4. RRB Securities Ltd.

b) Persons having direct/Indirect significant influence

1. Sh.Lalit Bhasin

4 SEGMENT REPORTING

In the opinion of Management there are no separate reportable segments as per Accounting Standard Segment reporting (AS-17).

5 Disclosure pursuant to Accounting Standard AS-19 for Leases: - Operating Lease

a) Particulars of the minimum lease payments under Operating Lease:-

Not Later than One year Rs. 3,16,608/- (Previous Year Rs. 3,16,608/-)

Later than one year but not Rs. NIL/- (Previous Year Rs. NIL/-)

Later than five years

Later than five years Rs. NIL/- (Previous Year Rs. NIL/-)

b) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March 2012 is Rs. 3,16,608/- (Previous Year Rs. 3,16,608/-).

c) General description of the lease arrangement.

The lease is for an initial period of 3 years, which may be renewal for further period as may be mutually agreed upon.

Restrictions imposed by lease arrangement:- – The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

– The lessee shall use the premises for commercial purposes only.

6 Due to Micro,Small and Medium Enterprises

To the extent information available with the company, it has no dues to the Micro,Small and medium enterprises as at 31st March, 2012 and 31st March,2011.

7 Disclosure relating to outstanding derivative exposures in securities :-

a) Shares/securities having book value of Rs. 174046870 /-(Previous year Rs.144492184/-) were given as margin at the year end.

b) Detail of Open Interest in Equity Stock Futures Contracts as at the year-end 31.03.2012

---

Mar 31, 2011

1. Contingent Liabilities not provided for

Particulars Current Year Previous Year

(a) Income tax demands disputed including interest etc. against which appeals are pending with appropriate authorities 68,52,164/- 68,52,164/-

(b) Claims against the Company not acknowledged as debts 1,58,02,781/- 1,58,02,781/-

(c) *Guarantee issued on behalf of – 15,00,00,000/- Nil HB Securities Ltd. – a company under the same management.

RRB Master Securities Delhi Ltd.7,00,00,000/- Nil

* Subsequent to the year, HB Securities Ltd. has written to their bank for withdrawal of Guarantee as the same was no longer required by them. Accordingly the company has also written to the bank of HB Securities Ltd. for withdrawal of Guarantee. The aforesaid guaranties were given in view of overall long terms business involvement/relation of the company with them. In the opinion of the management, the giving of aforesaid guaranties will not have any prejudicial impact on the company.

2. In the opinion of the management, current assets, loans and advances are approximately of the value stated if realised in the ordinarily course of business.

3. In the opinion of management, there are no separate reportable segments as per accounting standard – segment reporting (AS-17).

4. Disclosure of related party transaction in accordance with Accounting Standard (AS-18) ‘Related Party Disclosures' is as per annexure attached.

5. Operating Lease (Disclosure pursuant to Accounting Standard AS-19 for Leases)

a) Particulars of the minimum lease payments under Operating Lease :- 1. Not Later than One year Rs. 3,16,608/- (Previous year Rs. 3,16,608/-)

ii Later than one year, but not later than five years Rs. Nil

(Previous year Rs. Nil)

iii. Later than five years Rs. Nil

(Previous year Rs. Nil)

b) Minimum lease payments recognised in the statement of profit & loss account during the period ended 31st March 2011 is Rs. 3,16,608/- (Previous year Rs. 3,16,608/- )

c) General description of the lease arrangement.

– The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

– The lessee shall use the premises for commercial purposes only. – The lease can be terminated by the lessee by serving one month notice to the lessor.

6. In the opinion of management, no provisions is required to be made for diminution amounting to Rs. 15,94,20,723/- (Previous year : Rs. 14,75,05,806/- ) in the value of long term investments as the same is considered to be temporary.

7. a) To the extent information available with the company, Sundry Creditorsinclude Nil,

(Previous year Nil) due to Small Scale Industrial Undertaking. b) The company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. To the extent information available with the company, the company does not owe any sum including interest required to be disclosed under the said Act.

8. Disclosure with regard to outstanding derivative exposure in securities :- a) Cash Margin amounting to Rs. Nil (Previous year Rs. Nil) on equity derivative instruments contracts has been paid and also Shares/Securities costing Rs. 14,44,92,184/- were given as margin as at the year end (Previous year – Rs. 4,82,71,858/- )

9. The previous year figures have been regrouped/rearranged wherever considered necessary.

---

Mar 31, 2010

1. Contingent Liabilities not provided for

Particulars Current Year Previous Year

(a) Income tax demands disputed including interest etc. against which appeals are pending with appropriate authorities 68,52,164/- 1,36,79,205/-

(b) Claims against the Company not acknowledged as debts 1,58,02,781/- 1,58,02,781/-

2. In the opinion of the management, current assets, loans and advances are approximately of the value stated if realised in the ordinarily course of business.

3. In the opinion of management, there are no separate reportable segments as per accounting standard – segment reporting (AS-17).

4. Disclosure of related party transaction in accordance with Accounting Standard (AS-18) ‘Related Party Disclosures’ is as per annexure attached.

6. Operating Lease (Disclosure pursuant to Accounting Standard AS-19 for Leases)

a) Particulars of the minimum lease payments under Operating Lease :-

1. Not Later than One year Rs.3,16,608/-

(Previous year Rs. 3,16,605/-)

ii Later than one year, but not later than five years Rs. Nil

(Previous year Rs. Nil)

iii. Later than five years Rs. Nil

(Previous year Nil)

b) Minimum lease payments recognised in the statement of profit & loss account during the period ended 31st March 2010 is Rs. 3,16,608/- (Previous year Rs. 3,22,031/- )

c) General description of the lease arrangement.

- The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

- The lessee shall use the premises for commercial purposes only.

- The lease can be terminated by the lessee by serving one month notice to the lessor.

7. Disclosure pursuant to Accounting Standard - 15

a) The company has, adjusted Rs.Nil (Previous Year Rs.86,587/-) towards the earlier years effect of defined benefit obligation in respect of employee benefits in the Profit & Loss Account below the line.

8. In the opinion of management, no provisions is required to be made for diminution amounting to Rs.14,75,05,806/- (Previous year : Rs.16,14,09,556/- ) in the value of long term investments as the same is considered to be temporary.

9. Miscellaneous Income includes Rs.18,877/- (Previous Year Rs.Nil) interest income on FDR (TDS Rs.1,888/- (Previous Year Rs.Nil ) and Rs.2,47,000/- (Previous Year NIL) being the recovery of certain shares earlier written off.

10. a) To the extent information available with the company, Sundry Creditors include Nil, (Previous year Nil) due to Small Scale Industrial Undertaking.

b) The company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. To the extent information available with the company, the company does not owe any sum including interest required to be disclosed under the said Act.

11. Disclosure pursuant to Guidance Note issued by The Institute of Chartered Accountants of India on ‘Accounting for Equity Index & Equity Stock Futures & Options’:-

a) Cash Margin amounting to Rs.Nil (Previous year Rs.Nil) on equity derivative instruments contracts has been paid and also Shares/Securities costing Rs.4,82,71,858/- were given as margin as at the year end (Previous year - Rs.4,81,31,858/-)

12. The previous year figures have been regrouped/rearranged wherever considered necessary.

13. Additional information pursuant to Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed.

14. Additional information pursuant to Part IV of Schedule VI to the Companies Act, 1956 is annexed.

15. Schedule A to J form an integral part of our accounts.