Notes to Accounts of India Lease Development Ltd.

Mar 31, 2024

3.14 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the
applicable Ind AS. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance
sheet date and are adjusted to reflect the current best estimate.

3.14.1 PROVISIONS

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized
when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an
outflow of resources, that can be reliably estimated, will be required to settle such an obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows
to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value
of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement
of profit and loss as a finance cost.

3.14.2 CONTINGENT LIABILITIES

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Guarantees are also provided in the normal course of business. There are certain obligations which management of the
Company has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult
to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected
as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal
proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its
financial position or profitability.

3.14.3 CONTINGENT ASSETS

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is
probable.

3.15 CASH FLOW STATEMENT

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit/ (loss)
before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated
based on the available information.

3.16 SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker
“CODM” of the Company.

3.17 FAIR VALUE MEASUREMENT

The Company measures financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place either:

• In the principal market for asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimizing the use of unobservable
inputs.

Other Fair Value related disclosures are given in the relevant notes.

3.18 EXCEPTIONAL ITEMS

Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a full
understanding of the Company’s financial performance. Items which may be considered exceptional are significant
restructuring charges, gains or losses on disposal of investments of subsidiaries, associate and joint ventures and
impairment losses/ write down in the value of investment in subsidiaries, associates and joint ventures and significant
disposal of fixed assets.

Note No 15 A

Nature and purpose of Other Reserves
Securities Premium

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes
such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Statutory Reserve (Created U/s 45 IC Reserve Bank of India Act)

Statutory reserve represents reserve fund created pursuant to Section 45-IC of the RBI Act, 1934 through transfer of specified
percentage 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.

General Reserve

General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is
apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declared
dividend, however under the Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.

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
appropriations to specific reserves.

Other Comprehensive Income

Other Comprehensive Income (OCI) Reserve represents the balance in equity for items to be accounted in Other Comprehensive
Income. OCI is classified into i). Items that will not be reclassified to profit and loss ii). Items that will be reclassified to profit and loss.

The carrying amount of Trade Receivables, Cash & Cash Equivalent, Security Deposits Paid, Other Bank Balances, Other
Financial Liabilities & Other Financial Assets are considered to be the same as their Fair Values due to their short term nature.

The carrying amount of the Financial Assets and Liabilities carried Amortised Cost is considered a reasonable approximation
of Fair Value.

Note No 33

Fair Value Hierarchy

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or
most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether
that price is directly observable or estimated using a valuation technique. In order to show how fair values have been derived,
financial instruments are classified based on a hierarchy of valuation techniques, as explained in accounting policies of the
company.

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a)
recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial
statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its
financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows
underneath the table.

The fair value of financial instruments as referred to in note above has been classified into three categories depending on the inputs
used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical assets or
liabilities (level 1 measurement) and lowest priority to unobservable inputs (level 3 measurements).

The categories used are as follows:

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

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company’s policy is to recognize transfers into and transfer out of fair value hierarchy levels as at the end of the reporting
period.

During the year there were no transfers between level 1 and level 2. Similarly, there were no transfers from or transfer to level 3.

Note -34

Financial Risk Management

The Company’s businesses are subject to several risks and uncertainties including financial risks. The Company’s documented
risk management polices, act as an effective tool in mitigating the various financial risks to which the business is exposed to in the
course of their daily operations. The risk management policies cover areas such as liquidity risk, commodity price risk, foreign
exchange risk, interest rate risk, counterparty and concentration of credit risk and capital management.

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.

Note - 34 A Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial
instruments:

Price Risk;

Interest Rate Risk

The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s
exposure to and management of these risks are explained below.

Price Risk - Potential Impact of Risk & Management Policy

The Company is mainly exposed to the price risk due to its investment in Equity Shares & Mutual Funds. The price risk arises due to
uncertainties about the future market values of these investments.

Interest Rate Risk - Potential Impact of Risk & Management Policy

The Company is mainly exposed to the interest rate risk due to its investment in term deposits with banks. The Company invests in
term deposits for a period of up to one year. Considering the short-term nature, there is no significant interest rate risk pertaining to
these deposits.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s
long-term debt obligations with floating interest rates and term deposits. The Company’s fixed rate borrowings and deposits are
carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying
amount nor the future cash flows will fluctuate because of a change in market interest rates.

Interest Rate Risk - Sensitivity

The company does not have any borrowings accordingly, the company is not exposed to Interest Rate Risk.

Note - 34 B Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The
Company has adopted a policy of obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial
loss from defaults.

The Company is exposed to credit risk from its operating activities (primarily trade receivables and also from its investing activities
including deposits with banks and cash and cash equivalents.

In respect of its investments, the Company aims to minimize its financial credit risk through the application of risk management
policies. Credit limits are set based on a counterparty value. The methodology used to set the list of counterparty limits includes,
counterparty Credit Ratings (CR) and sector exposure. Evolution of counterparties is monitored regularly, taking into consideration
CR and sector exposure evolution. As a result of this review, changes on credit limits and risk allocation are carried out.

For financial instruments, the Company attempts to limit the credit risk by only dealing with reputable banks and financial
institutions having high credit-ratings assigned by international credit-rating agencies. Defined limits are in place for exposure to
individual counterparties in case of mutual funds schemes and bonds. The carrying value of the financial assets other than cash
represents the maximum credit exposure.

None of the Company’s cash equivalents, including flexi deposits with banks, are past due or impaired.

Trade receivables are subject to credit limits, controls & approval processes. These terms and conditions are determined on a case
to case basis with reference to the customer’s credit quality and prevailing market conditions. The credit quality of the Company’s
customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. Due to large
geographical base & number of customers, the Company is not exposed to material concentration of credit risk. Basis the historical
experience, the risk of default in case of trade receivable is low. Provision is made for doubtful receivables on individual basis
depending on the customer ageing, customer category, specific credit circumstances & the historical experience of the group. The
solvency of customers and their ability to repay the receivable is considered in assessing receivables for impairment. Where
receivables are impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit
terms.

Note - 34C Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses. In doing this, management considers both normal and stressed conditions.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024;
31st March, 2023.

Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and other
operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest
bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on
investments while ensuring sufficient liquidity to meet its liabilities.

For maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows along with its
carrying value as at the Balance Sheet date refer Note on Maturity Analysis of Assets and Liabilities. (Note No. 30)

Capital Management
Capital Risk Management

Capital management is driven by Company’s policy to maintain a sound capital base to support the continued development of its
business. The Board of Directors seeks to maintain a prudent balance between different components of the Company’s capital.
The Management monitors the capital structure and the net financial debt at individual currency level. Net financial debt is defined
as current and non-current financial liabilities less cash and cash equivalents and short term investments.

The Company monitors capital using gearing ratio, which is net debt divided by total capital. The Company’s policy is to keep the
Gearing Ratio within 30%.

Note -37
Going Concern

The Accumulated Losses (including Other Comprehensive Income) as at the close of the year amounts to '' 1842.45 Lacs. After
adjustment of the accumulated losses (including other comprehensive income) with General Reserve, Securities Premium and
Paid-Up Share Capital is '' 1103.84 Lacs which results in positive net worth. The Company is already a debt free company. In view
of utilization of funds to liquidate the liabilities there has been no fresh exposure of business undertaken by the Company.

The management is of the considered view that considering the availability of assets and its realization there will be sufficient
cushion available to repay all other liabilities. The accounts, as such, have been prepared on a Going Concern basis.

The Company continues to hold the certificate issued by Reserve Bank of India in Category “B” as Non-Accepting Deposits Non
Banking Finance Company.

Note -38

Corporate Social Responsibility

As per the provisions of Section 135 of the Companies Act , 2013 the company is not falling in the criteria as is prescribed in the said
section and as such, CSR is not applicable during the year.

Note -39

Other Significant Matters

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which
the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and
will record any related impact in the period the Code becomes effective

Note - 40

Additional regulatory information required by Schedule III

i. Details of Benami Property held

No proceedings have been initiated on or are pending against the company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

ii. Willful Defaulter

Company has not been declared Willful defaulter by any bank or financial institution or government or any government
authority.

iii. Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

iv. Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

v. Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961, that has not been recorded in the books of account.

vi. Details of Crypto currency or Virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

vii. Valuation of Property, Plant & Equipments, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.

with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

x. There is no transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of
Companies Act, 1956 during the year.

xi. The Company has not declared or paid dividend during the year 2023-2024.

Note - 41

Previous year figures have been regrouped/rearranged, wherever considered necessary.

As per our Report of even date For and on behalf of

For Jagdish Chand & Co. India Lease Development Limited

Chartered Accountants CIN: L74899DL1984PLC019218

ICAI Firm Registration No: 000129N

(Preeti Basniwal) Rajiv Gupta Arun Mitter

Partner Chairman Director

Membership No. 531468 DIN:00022964 DIN:00022941

Murali. S Rohit Madan

Chief Executive Officer Manager, Company Secretary & CFO

ACS:13636

Place of Signing : New Delhi
Dated : May 28, 2024

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Mar 31, 2015

1. Going Concern

The accumulated losses as at the close of the year amounts to Rs. 193,780,556 (after adjustment of General Reserve) against the Paid-Up Capital and other Reserves amounting to Rs. 274,304,176 which results in positive net worth. The Company is now a debt free company. In view of utilization of funds to liquidate the liabilities there has been no fresh exposure of business undertaken by the Company.

The management is of the considered view that considering the availability of assets and its realization there will be sufficient cushion available to repay all other liabilities. The accounts, as such, have been prepared on a Going Concern basis.

2. The net owned funds (NOF) although have become positive yet the Company could not comply with the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank Directions, 1988), with regard to (i) Maintenance of Minimum Capital Adequacy Ratio,(ii) the credit / investment exposures which have become in excess of prescribed limits.

3. The Company continues to hold the certificate issued by Reserve Bank of India in Category "B" as Non-Accepting Deposits Non Banking Finance Company

4. There is no amount due to the Micro Small and Medium Enterprises in terms of "The Micro Small and Medium Enterprises Development Act, 2006"

5. Current Taxation:- (a) Provision for Income Tax for the year has not been considered necessary in view of the accumulated carry forward losses and unabsorbed depreciation available for set off under the Income Tax Act, 1961 and Rules made thereunder.

(b) Income Tax Assessments of the Company have been made up to and including the Assessment Year 2012-13. The Company's appeals for certain years are pending in respect of certain disallowances made. In view of the favourable appellate orders for earlier years, the company expects decisions in respect of the pending matters in its favour and no provision has, therefore, been made considering the taxes already paid are more than sufficient to meet the liability, if any, upon finalization of assessment.

6. Deferred Taxation:

On a prudent and conservative basis, Deferred Tax Assets, due to timing differences, arising from Unabsorbed Depreciation, Business Loss and Provisions for Non Performing Assets have not been recognised in the absence of any certainty that sufficient future taxable income will be available in the foreseeable future against which the net Deferred Tax Assets can be realised.

7. Balance in parties accounts whether in debit or in credit are subject to confirmation.

8. Segment Reporting

The Company's business activities predominantly relate to providing finance by way of Hire Purchase and Leasing Operations. Accordingly revenue from financing activities comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Accounting Standard – 17 is not applicable.

9. Related Party Disclosures

Disclosures of details pertaining to related party transactions entered into during the year in terms of Accounting Standard-18 "Related Party Disclosures" .

a) List of Related Parties (i) Under common control:

The Motor and General Finance Limited

Jayabharat Credit Limited

Bahubali Services Limited

MGF Estates Pvt. Ltd.

MGF Securities Pvt. Ltd.

Cards Services India Pvt. Ltd.

Associated Traders & Engineers Pvt. Ltd.

Local Goods Carrier Pvt. Ltd.

Ram Prakash & Co. Pvt. Ltd.

Grosvenor Estates Pvt. Ltd.

Gee Gee Holdings Pvt. Ltd.

(ii) Enterprises over which the key management personnel are able to exercise significant influence: MGF Development Limited (iii) Key Managerial Personnel:

Shri Rajiv Gupta, Chairman,

Shri Arun Mitter, Director

Shri Rohit Madan, Manager & Company Secretary

10. Assets given under Finance Lease from 1st April, 2001 in accordance with the Accounting Standard 19 (AS-19), "Leases", with contractual maturities in lease financing activities (including hire purchase agreements with an option to the hirer to acquire the assets) are set out below:

11. Lease Rental in respect of offices premises taken on operating lease are charged to the Profit and Loss account on a straight- line basis over the lease term. The rentals charged during the year aggregate to Rs. NIL (Previous Year Rs. 20,988).

12. Pursuant to enactment of the Companies Act, 2013, during the year ended March 31, 2015, the Company has applied useful lives of tangible fixed assets as prescribed in Schedule II of the Companies Act, 2013, based on technical evaluation, taking into account the nature of the asset, the estimated usage of the asset and the operating conditions surrounding the use of the asset etc. Accordingly the depreciation has been provided by depreciating the carrying value of the asset (Net of residual value of 5%) over the revised/remaining life of individual assets. Had the Company continued with the previously assessed useful lives, charge for depreciation for the year ended March 31, 2015 would have been higher by Rs. 160,004.

13. (a) The assets and liabilities are classified between current and non current considering 12 months period as operating cycle.

(b) The Company has regrouped previous year figures wherever considered necessary.

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Mar 31, 2014

1. Going Concern

The accumulated losses as at the close of the year amounts to Rs. 191,144,373 (after adjustment of General Reserve) against the Paid-Up Capital and other Reserves amounting to Rs. 274,304,176 which results in positive net worth. The Company had liquidated the entire public deposits liability and made it a debt free company. In view of utilization of funds to liquidate the liabilities there has been no fresh exposure of business undertaken by the Company.

The management is of the considered view that considering the availability of assets and its realization there will be sufficient cushion available to repay all other liabilities. The accounts, as such, have been prepared on a Going Concern basis.

2. The net owned funds (NOF) although have become positive yet the Company could not comply with the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank Directions, 1988), with regard to (i) Maintenance of Minimum Capital Adequacy Ratio,(ii) the credit / investment exposures which have become in excess of prescribed limits.

3. The Company continues to hold the certificate issued by Reserve Bank of India in Category "B" as Non-Accepting Deposits Non Banking Finance Company.

4. Non Current Long Term Investments are to be valued at cost in terms of Accounting Standard-13 "Accounting for Investments" issued by The Institute of Chartered Accountants of India and as recommended by Reserve Bank of India''s guidelines, subject to provisions for diminution in value, other than temporary in nature. However, considering the long term nature and other related matters, investments in quoted company amounting to Rs. 3,128,160 (Previous Year Rs. 3,128,160) have been valued at cost and the temporary short fall of Rs. 832,013 (Previous Year Rs. NIL) has not been provided for.

5. There is no amount due to the Micro Small and Medium Enterprises in terms of "The Micro Small and Medium Enterprises Development Act, 2006"

6. Current Taxation:-

(a) Provision for Income Tax for the year has not been considered necessary in view of the accumulated carry forward losses and unabsorbed depreciation available for set off under the Income Tax Act, 1961 and Rules made thereunder.

(b) Income Tax Assessments of the Company have been made up to and including the Assessment Year 2010-11. The Company''s appeals for certain years are pending in respect of certain disallowances made. In view of the favourable appellate orders for earlier years, the company expects decisions in respect of the pending matters in its favour and no provision has, therefore, been made considering the taxes already paid are more than sufficient to meet the liability, if any, upon finalization of assessment.

7. Deferred Taxation:

On a prudent and conservative basis, Deferred Tax Assets, due to timing differences, arising from Unabsorbed Depreciation, Business Loss and Provisions for Non Performing Assets have not been recognised in the absence of any certainty that sufficient future taxable income will be available in the foreseeable future against which the net Deferred Tax Assets can be realised.

8. Balance in parties accounts whether in debit or in credit are subject to confirmation.

9. Segment Reporting

The Company''s business activities predominantly relate to providing finance by way of Hire Purchase and Leasing Operations. Accordingly revenue from financing activities comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Accounting Standard - 17 is not applicable.

10. Related Party Disclosures

Disclosures of details pertaining to related party transactions entered into during the year in terms of Accounting Standard-18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India:

a) List of Related Parties

(As identified and certified by the management)

(i) Under common control:

The Motor and General Finance Limited Jayabharat Credit Limited Bahubali Services Limited MGF Estates Pvt. Ltd. MGF Securities Pvt. Ltd. Cards Services India Pvt. Ltd. Associated Traders & Engineers Pvt. Ltd. Local Goods Carrier Pvt. Ltd. Ram Prakash & Co. Pvt. Ltd. Grosvenor Estates Pvt. Ltd. Gee Gee Holdings Pvt. Ltd.

(ii) Enterprises overwhich the key management personnel are able to exercise significant influence: MGF Development Ltd.

(iii) Key Managerial Personnel:

Shri Rajiv Gupta, Chairman Shri Arun Mitter, Director Shri Sharad Aggarwal, Director Shri M.K. Madan, Director

Shri Rohit Madan, Manager & Company Secretary (relative of Director)

11. Lease Rental in respect of offices premises taken on operating lease are charged to the Profit and Loss account on a straight- line basis over the lease term. The rentals charged during the year aggregate to Rs. 20,988 (Previous Year Rs.78,733).

12. Contingent Liabilities & Provisions

a) Details of Provisions'' in term of Accounting Standard 29 "Contingent Liabilities & Provisions" issued by the Institute of Chartered Accountants of India are as under.

(Amount in Rs.)

Particulars Opening Additions/ Closing Balance Movement of Balance 1st April, (Net 31st March, 2013 Adjustments) 2014

Provisions for Gratuity (current and non current) 2,017,482 (335,788) 1,681,694

Provisions for Non Performing Assets as per RBI guidelines 79,363,780 (2,638,321) 76,725,459

13. a The assets and liabilities are classified between current and non current considering 12 months period as operating cycle.

b. Previous year figures have been regrouped/rearranged wherever considered necessary.

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Mar 31, 2013

1. Going Concern

The accumulated losses as at the close of the year amounts to Rs. 18,93,31,142 (after adjustment of general reserve) against the Paid-Up Capital and other Reserves amounting to Rs. 274,304,176 which results in positive net worth. The Company had liquidated the entire public deposits liability and made it a debt free company. In view of utilization of funds to liquidate the liabilities there has been no fresh exposure of business undertaken by the Company.

The management is of the considered view that considering the availability of assets and its realization there will be sufficient cushion availabletorepay all other liabilities.The accounts, as such, have been preparedona Going Concern basis.

2. The net owned funds (NOF) although have become positive yet the Company could not comply with the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank Directions, 1988), with regard to (i) Maintenance of Minimum Capital Adequacy Ratio,(ii) the credit / investment exposures which have become in excessofprescribed limits.

3. The Company continues to hold the certificate issued by Reserve Bank of India in Category "B" as Non-Accepting Deposits Non Banking Finance Company.

4. Non Current Long Term Investments are to be valued at cost in terms of Accounting Standard-13 "Accounting for Investments" issued by the Institute of Chartered Accountants of India and as recommended by Reserve Bank of India''s guidelines, subject to provisions for diminution in value, other than temporary in nature. However, considering the long term nature and other related matters, investmentsin quoted company amountingtoRs. 3,128,160 (Previous Year Rs. 3,128,160) have been valuedatcost and the temporary short fallof Rs. Nil (PreviousYear Rs. 332,171) has not been provided for.

5. There is no amount due to the Micro Small and Medium Enterprises in terms of "The Micro Small and Medium Enterprises Development Act, 2006"

6. Current Taxation:- (a) Provision for Income Ta x for the year has not been considered necessary in view of the accumulated carried forward of losses and unabsorbed depreciation available for set off under the IncomeTa xAct, 1961 and Rules made thereunder.

(b) Income Ta x Assessments of the Company have been made up to and including the Assessment Year 2009-10. The Company''s appeals for certain years are pending in respect of certain disallowances made. In view of the favorable appellate orders for earlier years, the Company expects decisions in respect of the pending matters in its favour and no provision has, therefore, been made considering the taxes already paid are more than sufficient to meet the liability, if any, upon finalizationofassessment.

7. Deferred Taxation:

On a prudent and conservative basis, Deferred Ta xAssets, due to timing differences, arising from Unabsorbed Depreciation, Business Loss and Provisions for Non Performing Assets have not been recognised in the absence of any certainty that sufficient future taxable income will be available in the foreseeable future against which the net Deferred Ta x Assets can be realised.

8. Balance in parties accounts whether in debit or in credit are subject to confirmation.

9. Segment Reporting

The Company''s business activities predominantly relate to providing finance by way of Hire Purchase and Leasing Operations. Accordingly revenue from financing activities comprises the primary basis of segmental reporting. Hence segmental reportingasdefinedinAccounting Standard – 17 isnot applicable.

10. Related Party Disclosures

Disclosures of details pertaining to related party transactions entered into during the year in termsofAccounting Standard-18 "Related Party Disclosures" issued byThe Instituteof CharteredAccountantsofIndia:

a) ListofRelated Parties

(As identified and certified bythe management)

(i) Undercommon control:

The Motor and General Finance Limited, Jayabharat Credit Limited.

(ii) Enterprises over which the key management personnel are abletoexercise significant influence:

Bahubali Services Limited,

(iii) Key Managerial Personnel:

Shri Rajiv Gupta, Chairman,

ShriArun Mitter, Director,

Shri SharadAggarwal, Director,

Shri M.K. Madan, Director

Shri Rohit Madan, Manager &Company Secretary (relative of Director)

11. Lease Rental in respect of offices premises takenon operating lease are chargedtothe Profit and Loss account on astraight- line basis over the lease term.The rentals charged during the year aggregateto Rs. 78,733 (PreviousYear Rs.126,958).

12. Contingent Liabilities & Provisions

a) Details of Provisions'' in term of Accounting Standard 29 "Contingent Liabilities & Provisions" issued by The Institute of Chartered Accountants of India are as under.

(Amount in Rs.)

Particulars Opening Balance Additions/ Closing Balance

01.04.12 Movement (Net of 31.03.13

Adjustments)

Provisions for Gratuity (current and non current) (2,103,914) (86,432) 2,017,482

Provisions for Non Performing Assets as per RBI guidelines 79,522,541 (158,763) 79,363,780

13. The assets and liabilities are classified between current and non current considering 12 months period as operating cycle. The Company has regrouped previous year figures wherever considered necessary.

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Mar 31, 2012

1. Going Concern

The accumulated losses as at the close of the year amounts to Rs. 186,373,224 (after adjustment of general reserve) against the Paid-Up Capital and other Reserves amounting to Rs. 274,304,176 which results in positive net worth. The Company had liquidated the entire public deposits liability and made it a debt free company. In view of utilization of funds to liquidate the liabilities there has been no fresh exposure of business undertaken by the Company.

The management is of the considered view that considering the availability of assets and its realization there will be sufficient cushion available to repay all other liabilities. The accounts, as such, have been prepared on a Going Concern basis.

2. The net owned funds (NOF) although have become positive yet the Company could not comply with the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank Directions, 1988), with regard to (i) Maintenance of Minimum Capital Adequacy Ratio,(ii) the credit / investment exposures which have become in excess of prescribed limits.

3. The Company continues to hold the certificate issued by Reserve Bank of India in Category "B" as Non-Accepting Deposits Non Banking Finance Company.

4. Non Current Long Term Investments are to be valued at cost in terms of Accounting Standard-13 "Accounting for Investments" issued by the Institute of Chartered Accountants of India and as recommended by Reserve Bank of India's guidelines, subject to provisions for diminution in value, other than temporary in nature. However, considering the long term nature and other related matters, investments in quoted company amounting to Rs. 3,128,160 (Previous Year Rs. 3,128,160) have been valued at cost and the temporary short fall of Rs. 332,171 (Previous Year Rs. 472,752) has not been provided for.

5. There is no amount due to the Micro Small and Medium Enterprises in terms of "The Micro Small and Medium Enterprises Development Act, 2006"

6. Current Taxation:- (a) Provision for Income Tax for the year has not been considered necessary in view of the accumulated carried forward of losses and unabsorbed depreciation available for set off under the Income Tax Act, 1961 and Rules made thereunder .

(b) Income Tax Assessments of the Company have been made up to and including the Assessment Year 2008-09. The Company's appeals for certain years are pending in respect of certain disallowances made. In view of the favorable appellate orders for earlier years, the Company expects decisions in respect of the pending matters in its favour and no provision has, therefore, been made considering the taxes already paid are more than sufficient to meet the liability, if any, upon finalization of assessment.

7. Deferred Taxation:

On a prudent and conservative basis, Deferred Tax Assets, due to timing differences, arising from Unabsorbed Depreciation, Business Loss and Provisions for Non Performing Assets have not been recognised in the absence of any certainty that sufficient future taxable income will be available in the foreseeable future against which the net Deferred Tax Assets can be realised.

8. Balance in parties accounts whether in debit or in credit are subject to confirmation.

9. Segment Reporting

The Company's business activities predominantly relate to providing finance by way of Hire Purchase and Leasing Operations. Accordingly revenue from financing activities comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Accounting Standard – 17 is not applicable.

10. Related Party Disclosures

Disclosures of details pertaining to related party transactions entered into during the year in terms of Accounting Standard-18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India:

a) List of Related Parties

(As identified and certified by the management)

(i) Under common control:

The Motor and General Finance Limited, Jayabharat Credit Limited.

(ii) Enterprises over which the key management personnel are able to exercise significant influence:

MGF Development Limited MGF Automobile Limited, Bahubali Services Limited,

(iii) Key Managerial Personnel:

Shri Rajiv Gupta, Chairman,

Shri Arun Mitter, Director,

Shri Sharad Aggarwal, Director,

Shri M.K. Madan, Director

Shri Rohit Madan, Manager & Company Secretary (relative of Director)

11. Assets given under Finance Lease from 1st April, 2001 in accordance with the Accounting Standard 19 (AS-19), "Leases", issued by the Institute of Chartered Accountants of India, with contractual maturities in lease financing activities (including hire purchase agreements with an option to the hirer to acquire the assets) are set out below:

12. Lease Rental in respect of offices premises taken on operating lease are charged to the Profit and Loss account on a straight- line basis over the lease term. The rentals charged during the year aggregate to Rs. 126,958 (Previous Year Rs. 249,458).

13. The financial statements have been prepared in line with requirements of revised Schedule VI of the Companies Act 1956, as introduced by Ministry of Corporate Affairs, from the financial year ended March 31, 2012. Accordingly, the assets and liabilities are classified between current and non current considering 12 months period as operating cycle. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. Consequently, the Company has reclassified previous year figures to conform to this year's classification.

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Mar 31, 2010

(Rs. in Lacs) 31.03.2010 31.03.2009

1. Contingent Liabilities

Demands (including for interest and penalty) raised by Sales Tax 117.98 117.98

Authorities on the Company not provided for being disputed and in appeal (from A.Y.1992-1993 to A.Y. 2003-2004). In terms of agreement with the parties, tax, if any, crystallized will be to their account.

2. Going Concern

The accumulated losses as at the close of the year amount to Rs. 2164.25 Lacs (after adjustment of profit for the year amounting to Rs. 2.75 Lacs) against the Paid Up Capital and Free Reserves amounting to Rs. 2139.02 Lacs, which continue to result in negative net worth. The Company had liquidated the entire public deposits liability and made it a debt free company. In view of utilization of funds to liquidate the liabilities there has been no fresh exposure of business undertaken by the Company.

The management is of the considered view that considering the availability of assets and its realization there will be sufficient cushion available to repay all other liabilities. The accounts, as such, have been prepared on a Going Concern basis.

3. In view of negative net worth it has a consequential effect of non compliance of the Reserve Bank of Indias guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 with regard to (i) Maintenance of minimum Capital Adequacy Ratio. (ii) The credit/investment (including investment in real estates) exposures which had become in excess of prescribed limits.

4. The Company has not received information from vendors regarding their status under "The Micro Small and Medium Enterprises Development Act, 2006" and hence disclosure relating amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

5. Current Taxation:-

(a) Provision for Income Tax for the year has not been considered necessary in view of the accumulated carried forward of losses and unabsorbed depreciation available for set off under the Income Tax Act, 1961 and Rules made thereunder .

(b) Income Tax assessments of the Company have been made up to and including the Assessment Year 2007-08. The Companys appeals for certain years are pending in respect of certain disallowances made. In view of the favorable appellate orders for earlier years, the Company expects decisions in respect of the pending matters in its favour and no provision has, therefore, been made considering the taxes already paid are more than sufficient to meet the liability, if any, upon finalization of assessment.

6. Deferred Taxation:

On a prudent and conservative basis, Deferred Tax Asset, due to timing differences, arising from Unabsorbed Depreciation, Business Loss and Provisions for Non Performing Assets have not been recognised in the absence of any certainty that sufficient future taxable income will be available in the foreseeable future against which the net Deferred Tax Assets can be realised.

7. Balance in parties accounts whether in debit or in credit are subject to confirmation.

8. Segment Reporting

The Companys business activities predominantly relate to providing finance by way of Hire Purchase and Leasing Operations. Accordingly revenue from financing activities comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Accounting Standard - 17 is not applicable.

9. Related Party Disclosures

Disclosures of details pertaining to related party transactions entered into during the year in terms of Accounting Standard-18 “Related Party Disclosures” issued by the Institute of Chartered Accountants of India:

a) List of Related Parties

(As identified and certified by the management)

(i) Under common control:

The Motor and General Finance Limited, MGF Services Limited, Jayabharat Credit Limited.

(ii) Key Managerial Personnel:

Shri Rajiv Gupta, Director,

Shri Arun Mitter, Director,

Shri Sharad Aggarwal, Director,

Shri M.K. Madan, Director

Shri Rohit Madan, Manager & Company Secretary

(iii) Enterprises over which the key management personnel is able to exercise significant influence:

Compact Motors Limited, MGF Automobile Limited, Bahubali Services Limited, Makro Lease Pvt. Ltd, Oaykay Forgings Pvt. Ltd

10. Lease rental in respect of offices premises taken on operating lease are charged to the Profit and Loss account on a straight-line basis over the lease term. The rentals charged during the year aggregate to Rs. 2.56 Lacs (Previous Year Rs.3.34 Lacs).

11. Contingent Liabilities & Provisions

Details of Contingent Liabilities & Provisions in term of Accounting Standard 29 "Contingent Liabilities & Provisions" issued by The Institute of Chartered Accountants of India are as under.

(Rs. In Lacs)

Particulars Opening Balance Additions/ Closing Balance 01.04.09 Movement (Net of 31.03.10 Adjustments)

Provisions for Gratuity 13.54 1.14 14.68

Provisions for Non Performing Asset as per RBI guidelines 1639.60 (91.48) 1548.12

Provisions for Income Tax 31.65 - 31.65

Provision for Diminution in value of

Investment as per RBI norms. 1.03 (0.83) 0.20

12. Figures of the previous years have been regrouped / rearranged wherever considered necessary to make them comparable with Current years figures.