Notes to Accounts of Motor & General Finance Ltd.

Mar 31, 2018

1. COMPANY OVERVIEW

The Motor & General Finance Limited (referred to as “MGF” or “the Company” was incorporated under the laws of the Republic of India with its registered office at MGF House, 4/17-B, AsafAli Road, New Delhi-110002, is the flagship company of MGF Group. Incorporated in 1930, MGF has been one of the oldest finance companies of India. The Company is engaged in the single primary business of “Lease/ Renting of Immovable Property”, and has only one reportable segment.

1.1. GENERAL INFORMATION AND STATEMENT OF COMPLIANCE WITH IND AS

The Company is headquartered in New Delhi, India. The shares of the Company are listed on the National Stock Exchange and the Bombay Stock Exchange.

The Standalone Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (IND AS) notified under Companies (Indian Accounting Standards) Rules, 2015. For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

These are the Company’s First Financial Statements prepared in accordance with Ind AS. The Company has followed the provisions of Ind AS 101-”First Time adoption of Indian Accounting Standards” (Ind AS 101), in preparing its opening Ind AS Balance Sheet as of the date of transition, i.e. April 1, 2017. In accordance with Ind AS 101, the Company has presented reconciliations of Shareholders’ equity under Previous GAAP and Ind AS, as at March 31, 2017, and April 1, 2016 and of the Profit/(Loss) after Tax as per Previous GAAP and Total Comprehensive Income under Ind AS for the year ended March 31, 2017. (see note 38 for explanation of the transition to IND AS).

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

i. Certain Financial Assets and Financial Liabilities and Contingent Consideration that are measured at fair value

ii. Assets held for sale measured at lower of cost or fair value less cost to sell

iii. Defined benefit plan assets measured at fair value

The Company has uniformly applied the Accounting Policies during the period presented unless otherwise stated.

All amounts are stated in

The Standalone Financial Statements for the year ended March 31, 2018 were authorized and approved by the Board of Directors on May 28, 2018.

Note -02 A

Refer Note No 17 A for Property, Plant & Equipment pledged as security.

Note -3 A

The Company has one class of equity shares having a par value of Rs. 10 per Share. Each Shareholder is eligible for one vote per share held. The dividend proposed (if any) by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend(if any). In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note -3 B

Reserves and Surplus

Nature and purpose of Other Reserves

CAPITAL RESERVE

The reserve was created on merger of companies under common control.

SECURITIES PREMIUM ACCOUNT

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium reserve.

REVALUATION RESERVE

When the value of fixed assets in written up in the books of account of a company on revaluation, a corresponding credit is given to the Revaluation Reserve. Such reserve represents the difference between the estimated present market values and the book values of the fixed assets.

PROPERTY RESERVE

When the value of Investment Property is depreciated, a corresponding credit is given to Property Reserve. The reserve was transferred to General Reserve in FY 2016-17

RETAINED EARNINGS

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

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 Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.

OTHER COMPREHENSIVE INCOME

Other Comprehensive Income 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.

Note -4 A

(a) Term Loan from Bank is secured by way of mortgage of one of company’s properties and hypothecation of trade receivables including all present and future lease rentals and personal guarantee of two directors. This term loan is repayable by way of monthly instalments and the rate of interest ranging from 9.50% to 13.00 %.

(b) Term loan from other is secured against the securities of mutual funds, shares etc. held by the directors and there family members and group entities. The rate of interest is ranging from 9.00% to 12.25%.

(c) Vehicle Loan from NBFC is secured against hypothecation of vehicle and personal guarantee of one of the directors of the Company. This loan is repayable by way of monthly instalments and rate of interest is 9.80 %.

Note - 5 A

The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under :

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. The liability for the same is recognised on the basis of actuarial valuation.

Compensated Absences

The Company has a other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 60 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2017-18 is accounted for on the basis ofActuarial Valuation.

Note -6

Disclosure as per Indian Accounting Standard (Ind AS) 108 “Operating Segments”

The Company’s business activities predominantly relate to leasing and development of premises. Accordingly revenue from the leasing of premises comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Ind AS 108 is not applicable.

Geographical Information

The operations of the Company are mainly carried out within the country and therefore, geographical segments are not disclosed.

Information about major customers

Four Customers of Company (previous Year Five Customers) accounted for 10% or more of revenue during financial year ending March 31, 2018 and March 31, 2017.

Revenue from these customers contribute 75% of total revenue (Previous Year 79% of total revenue) of Company.

Note -7

Leases

Operating Lease Commitments — As Lessor

The Company has entered into operating leases on its Investment Property, Portfolio consisting of certain office and manufacturing buildings. These leases have terms of between five and 20 years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

For future minimum rentals receivable under non-cancellable operating leases as at 31 March refer Note 4

Non Financial Transactions

(i) Shri Rajiv Gupta and Shri Arun Mitter have given personal guarantee to banks for company’s borrowings.

(ii) Disclosures in respect of transactions with identified related parties are given only for such period during which such relationships existed. Other Information

Sundry Expenses include Rs. 1,28,750/- (Previous Year Rs. 1,03,450/-) paid towards Directors’ Sitting Fees for attending Board Meetings. No Meeting Fee was paid for attending Committee Meetings.

Transport, Travelling and Motor Car Expenses include Rs. 1,90,936/- (Previous Year Rs. 90,951/-) for Directors Travelling.

Note -8

FAIR VALUE HIERARCHY

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 group 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.

Note -9

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.

10.1. 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;

Commodity 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.

10.1.1. 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.

The Company has laid policies and guidelines which it adheres to in order to minimise price risk arising from investments in Equity Shares & Mutual Funds.

The majority of investments of the Company are publicly traded and listed in BSE Index. Carrying amounts of the Company’s investment in Equity Shares at the end of the reporting period are given in Note 28

10.1.2.PRICE RISK - SENSITIVITY TO RISK

The following tables demonstrate the sensitivity to a reasonably possible change in equity index where investments of the Company are listed. The impact on the company profit before tax is due to changes in the BSE Index.

10.1.3. COMMODITY PRICE RISK - POTENTIAL IMPACT OF RISK & MANAGEMENT POLICY

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing manufacture of industrial and domestic cable and therefore require a continuous supply of Copper and Aluminium being the major input used in the manufacturing. Due to the significantly increased volatility of the price of the Copper and Aluminium, the Company has entered into various purchase contracts for these material for which there is an active market The Company’s Board of Directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The Company partly mitigated the risk of price volatility by entering into the contract for the purchase of these material based on average price of for each month.

10.1.4. 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 upto 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.

The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate of borrowings.

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:

10.1.5. INTEREST RATE RISK - SENSITIVITY

The sensitivity analysis below has been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year.

10.2. 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, forex transactions and other financial instruments) for receivables, cash and cash equivalents, short-term investments, financial guarantees and derivative financial instruments.

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 time 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.

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of Financial Assets.

A : Low Credit Risk on financial reporting date

B : Moderate Credit Risk

C : High Credit Risk

The Company provides for Expected Credit Loss based on the following:

10.3. 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 March 31, 2018 and March 31, 2017.

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.

The following table shows the 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.

10.3.2.COLLATERAL

Vehicle Loan is secured against hypothecation of vehicle and personal guarantee of one of the directors of the Company. Term Loan from Bank is secured by way of mortgage of one of company’s properties and hypothecation of trade receivables including all present and future lease rentals and personal guarantee of two directors. The counter parties have an obligation to return the securities to Company.

There are no other significant terms and conditions associated with the use of collateral.

Note -11

CAPITAL MANAGEMENT

11.1. 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 plus net debt. The Company’s policy is to keep the Gearing Ratio within 30%.

Note -12

FIRST TIME ADOPTION OF IND AS

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 1, 2017, with a transition date of April 1, 2016. These financial statements for the year ended March 31, 2018 are the first financial statements the Company has prepared under Ind AS. For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP’).

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended March 31, 2018, together with the comparative information as at and for the year ended March 31, 2017 and the opening Ind AS Balance Sheet as at April 1, 2016 the date of transition to Ind AS.

In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).

This note explains the adjustments made by the Company in restating its financial statements prepared under previous GAAP, including the Balance Sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

13.1 OPTIONAL EXEMPTIONS FROM RETROSPECTIVE APPLICATION

Ind AS 101 permits first-time adopters certain exemptions from retrospective application of certain requirements under Ind AS. The Company has elected to apply the following optional exemptions from retrospective application:

A. DEEMED COST FOR PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTY

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its Property, Plant and Equipment and Investment Property recognised as at April 1, 2016 measured as per the Previous GAAP and use that carrying value as the deemed cost of the Property, Plant and Equipment and Investment Property.

B. INVESTMENTS IN JOINT VENTURES

The Company has elected to measure its investments in joint ventures at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

C. LEASES

Appendix C to Ind AS 17-” Leases” requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind-AS except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.

13.2 MANDATORY EXCEPTIONS FROM RETROSPECTIVE APPLICATION

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101:

A. ESTIMATES

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

B. CLASSIFICATION AND MEASUREMENT OF FINANCIAL ASSETS

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of facts and circumstances that exist on the date of transition to Ind AS. Accordingly, the Company has applied the above requirement prospectively. Classification of financial assets to be measured at amortised cost or fair value through other comprehensive income is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

C. DERECOGNITION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. Accordingly, the Company has applied the derecognition requirement for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after date of transition to Ind AS.

D. IMPAIRMENT OF FINANCIAL ASSETS

Ind AS 101 requires an entity to assess and determine the impairment allowance on financial assets as per Ind AS 109 using the reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments which were initially recognised and compare that to the credit risk at the date of transition to Ind AS. The Company has applied this exception prospectively.

13.3 TRANSITION TO IND AS - RECONCILIATIONS

Ind AS 101 requires that an entity should explain how the transition from previous GAAP to Ind ASs affected its reported balance sheet, financial performance and cash flows, accordingly the Company has prepared:

i. Reconciliation of Balance sheet as at April 1, 2016

ii. Reconciliation of Balance sheet as at March 31, 2017

iii. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2017

iv. Reconciliation of Equity as at March 31, 2017 & as at April 1, 2016

v. Reconciliation of Total Comprehensive Income for the year ended on March 31, 2017

vi. Impact of Ind AS adoption on the Standalone Statements of Cash Flows for the year ended on March 31, 2017

Note-13.4

NOTES TO THE RECONCILIATION OF BALANCE SHEET AS AT APRIL 1, 2016 AND MARCH 31, 2017 AND THE TOTAL COMPREHENSIVE INCOME FOR THE YEAR ENDED MARCH 31, 2017.

A. FAIR VALUE OF INVESTMENTS

Under previous GAAP, investments in Equity Instruments and Mutual Funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the Profit & Loss for the year ended March 31, 2017.

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognised in FVOCI - Equity Investment Reserve as at the date of transition and subsequently in Other Comprehensive Income (OCI) for the year ended March 31, 2017. This increased other reserves by Rs. 28,509/- as at March 31, 2017 (April 1, 2016 - Rs. 2,475/-)

B. BORROWINGS

Under previous GAAP, transaction costs incurred towards origination of borrowings were charged to profit or loss as and when incurred. Ind AS 109 requires these transaction costs to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method.

Accordingly, borrowings as at March 31, 2017 have been reduced by Rs. 71,62,005/-(April 1, 2016 Rs. 93,31892/-) with a corresponding adjustment to retained earnings. The total equity increased by an equivalent amount. The profit for the year ended March 31, 2017 reduced by Rs. 15,35,016/- as a result of the additional interest expense.

C. SECURITY DEPOSITS

Under previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS.

Difference between the fair value and transaction value of the security deposit has been recognised as advance rent. Consequent to this change, the amount of security deposits decreased by Rs. 2,01,54,820/- as at March 31, 2017 (April 1, 2016 Rs. 2,21,13,585/-). The advance rent increased by Rs. 1,71,67,095/- as at March 31, 2017 (1st April, 2016 - Rs. 1,97,60,732/-). Total equity increased by Rs. 29,87,725/- at March 31, 2017 (April 1, 2016 Rs. 23,52,853/-). The profit for the year as at March 31, 2017 increased by Rs. 3,78,308/- due to recognition of income on advance rent of Rs. 25,93,637/- which is partially off-set by the notional finance cost of Rs. 22,15,329/recognised on security deposits.

D. RE-MEASUREMENT OF DEFINED BENEFIT OBLIGATION

Both under previous GAAP and Ind AS, the Company Group recognised costs related to its post employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in balance sheet through other comprehensive income. Thus, employee benefits expense is increased by Rs. 1,98,722/- and is recognised in other comprehensive income during the year ended March 31, 2017. The related tax expense has also been reclassified from Profit and loss account to other comprehensive income. There is no impact on the total equity as at April 1, 2016 & March 31, 2017.

E. DEFERRED TAX

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Previous GAAP

F. RETAINED EARNINGS

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments

G. OTHER COMPREHENSIVE INCOME

Under previous GAAP, the Company has not presented Other Comprehensive Income (OCI) separately. Hence, it has reconciled Indian GAAP profit to profit as per Ind AS. Further, Indian GAAP profit is reconciled to total comprehensive income as per Ind AS.

Note -14

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 this year. The company has incurred Rs. NIL (Previous Year Rs. NIL) on promotion of education.

Note -15

Investment in Associates

These financial statement are separate financial statements prepared in accordance with Ind AS-27 “ Separate Financial Statements”.

Note -16

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

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Mar 31, 2016

1. In view of the Company''s substantial holding in Jayabharat Credit Limited (JBCL) and to preserve company''s reputation and image, the Board of Directors of the Company, on the legal opinion obtained, had taken a conscious decision to give Inter-Corporate Deposit (ICD), at the rate of interest mutually agreed in the financial year 2010-11 to meet the contingency in repayment of public deposits and banks of JBCL. The amount due as on March 31, 2016 is Rs. 16.50 crores (Previous Year ended March 31, 2015 Rs. 17.38 crores). The Company has taken steps to realize the balance outstanding amount at the earliest.

2. Deferred Taxation

In accordance with AS-22 on “Accounting for Taxes on Income”, the Company has recognized deferred tax assets on such timing differences based on the future income available so that such deferred tax assets can be reversed. Deferred Tax Assets have been recognized on account of timing difference arising between book depreciation and tax depreciation, provision for leave encashment, gratuity, diminution in the value of investments and carry forward of business losses.

3. Current Taxation:-

4. Provision for income tax (MAT) for the year has been made after considering relief available under the Income Tax Act, 1961.

5. Income tax assessments up to the financial year 2012-13 (Assessment Year 2013-14) have been completed and there are no pending demands against the Company.

6. Segment information:-

The Company''s business activities predominantly relate to leasing and development of premises. Accordingly revenue from the leasing of premises comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Accounting Standard - 17 is not applicable.

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

8. Disclosure of details pertaining to related party transactions entered into during the year in terms of Accounting Standard -18 “Related Party Disclosures” are given below:

9. List of Related Parties

10. Under Common Control

India Lease Development Limited, Jayabharat Credit Limited, Bahubali Services Limited, MGF Estate Private Limited, MGF Securities Private Limited, Cards Services India Private Limited, Associated Traders & Engineers Private Limited ,Local Goods Carriers Private Limited, Ram Prakash & Co. Private Limited, Grosvenor Estates Private Limited and GEE GEE Holdings Private Limited.

11. Key Management Personnel

Shri Rajiv Gupta (Chairman & Managing Director & Chief Executive Officer)

Smt Arti Gupta (Joint Managing Director)

Shri Arun Mitter (Executive Director)

Shri M.K. Madan (Vice President & Company Secretary & Chief Financial Officer)

12. Directors Sitting Fees

Sundry Expenses include Rs. 100,225/- (Previous Year Rs. 212,472/-) paid towards Directors'' Sitting Fees for attending Board Meetings. No Meeting Fee was paid for attending Committee Meetings.

13. Directors Travelling

Transport, Travelling and Motor Car Expenses include Rs. 126,155/- (Previous Year Rs. 203,887/-) for Directors Travelling.

14. Earnings Per Share/(Loss) (E.P.S)

15. 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 this year. However, in continuing with the plan as per last year, the company has incurred Rs. 1,402,000 on promoting of education.

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

17. The assets and liabilities are classified between current and noncurrent considering 12 months period as operating cycle.

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

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Mar 31, 2015

1. Share Capital

a.) The Company has one class of equity shares having a par value of Rs. 10 per Share. Each Shareholder is eligible for one vote per share held. The dividend proposed (if any) by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend(if any). In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2. OTHER NOTES TO FINANCIAL STATEMENTS

i) CONTINGENT LIABILITIES: (Amount in Rs.)

Particulars March 31, March 31 2015 2014

a) Guarantees given to Sales Tax and 464,509 518,471 other authorities, on behalf of the Company (against pledge of fixed deposits

b) Other disputed demands not acknowledged as debts

i) Electricity Charges (BSES) 6,924,304 6,924,304

ii) Service Tax 10,351,192 -

iii) Employee's State Insurance 7,475,606 - Corporation

ii) In view of the company's substantial holding in Jayabharat Credit Limited (JBCL) and to preserve company's reputation and image, the Board of Directors of the company, on the legal opinion obtained, had taken a conscious decision to give Inter-Corporate Deposit (ICD), at the rate of interest mutually agreed in the financial year 2010-11 to meet the contingency in repayment of public deposits and banks of JBCL. During the year the Company has recovered substantial amount against the aforesaid outstanding. The amount due as on March 31, 2015 is Rs. 17.38 crores (Previous Year ended March 31, 2014 Rs. 41.44 crores). The company has taken steps to realize the balance outstanding amount at the earliest.

iii) Deferred Taxation

In accordance with AS-22 on "Accounting for Taxes on Income", the company has recognized deferred tax assets on such timing differences based on the future income available so that such deferred tax assets can be reversed. Deferred Tax Assets have been recognized on account of timing difference arising between book depreciation and tax depreciation, provision for leave encashment, gratuity, diminution in the value of investments and carry forward of business losses.

iv) Current Taxation:-

a) Provision for income tax (MAT) for the year has been made after considering relief available under the Income Tax Act, 1961.

b) Income tax assessments up to the financial year 2011-12 (Assessment Year 2012-13) have been completed and there are no pending demands against the Company.

v) Segment information:-

The Company's business activities predominantly relate to leasing and development of premises. Accordingly revenue from the leasing of premises comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Accounting Standard - 17 is not applicable.

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

vii) Disclosure of details pertaining to related party transactions entered into during the year in terms of Accounting Standard -18 "Related Party Disclosures" are given below:

a) List of Related Parties

i) Under Common Control

India Lease Development Limited, Jayabharat Credit Limited, Bahubali Services Limited, MGF Estate Private Limited, MGF Securities Private Limited, Cards Services India Private Limited, Associated Traders & Engineers Private Limited ,Local Goods Carriers Private Limited, Ram Prakash & Co. Private Limited, Grosvenor Estates Private Limited and GEE GEE Holdings Private Limited.

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

Nil

iii) Key Management Personnel

Shri Rajiv Gupta (Chairman & Managing Director & Chief Executive Officer)

Smt Arti Gupta (Joint Managing Director)

Shri Arun Mitter (Executive Director)

Shri M.K. Madan (Vice President & Company Secretary & Chief Financial Officer)

ii) Directors Sitting Fees

Sundry Expenses include Rs. 212,472/- (Previous Year Rs. 129,216/-) paid towards Directors' Sitting Fees for attending Board Meetings. No Meeting Fee was paid for attending Committee Meetings.

iii) Directors Travelling

Transport, Travelling and Motor Car Expenses include Rs. 203,887/- (Previous Year Rs. 55,484/-) for Directors Travelling.

x) 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 except for two buildings where different useful life is taken based on independent 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. 872,230.

xi) Corporate Social Responsibility

As per the provisions of section 135 of the Companies Act, 2013 the Company was required to spend Rs. 833,000 on corporate social responsibility. However, the Company has incurred Rs.15,40,000 on promoting of education.

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

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

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

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Mar 31, 2014

Notes 1:

a) Term Loans from Kotak Mahindra Bank Limited are secured by way of mortgage of one of company''s properties and hypothecation of trade receivables including all present and future lease rentals and personal guarantee of two directors. The principal of term loans are repayble by way of monthly installments and the rate of interest ranging from 13.25 % to 13.50%. Loan repayble in FY 2015-16 Rs. 54,447,235/-, FY 2016-17 Rs. 21,016,392/- FY 2017-18 Rs. 24,019,974/- FY 2018-19 Rs. 12,109,248/-.

b) Term Loan from Kotak Mahindra Prime Ltd. is secured by way of first & exclusive equitable mortgage of one of the properties of the company and personal guarantee of two Directors. The principal of term loan is repayble by way of monthly instalments and the rate of interest is ranging from 13.25% to 13.50%. Loan repayble in FY 2015-16 Rs. 25,850,436/-.

c) Working Capital Loan from Kotak Mahindra Investments Limited is secured against the securities of mutual funds, shares etc. held by the directors and their family members and group entities. The loan is repayble in sixty months and the rate of interest is 12.25% .

2. OTHER NOTES TO FINANCIAL STATEMENTS

i) CONTINGENT LIABILITIES: (Rs.)

Particulars March 31, 2014 March 31, 2013

a)Guarantees given to Sales 518,471 481,895 Tax and other authorities, on behalf of the company (against pledge of fixed deposits)

b)Other disputed demands not acknowledged as debts

i)Electricity charges(BSES) 6,924,304 6,992,324

ii)Property Tax (MCD) - 4,479,446

ii) The Company opted to voluntary exit from the NBFC activities and surrendered the Certificate of Registration to the Reserve Bank of India, which has been cancelled vide their order dated June 18,2013 and as such, it is no longer a NBFC

iii) In view of the company''s substantial holding in Jayabharat Credit Limited (JBCL) and to preserve company''s reputation and image, the Board of Directors of the company had taken a conscious decision to give Inter-Corporate Deposit (ICD), at the rate of interest mutually agreed in the financial year 2010-11 to meet the contingency in repayment of public deposits and banks of JBCL. The outstanding amount of the ICD is Rs. 41,43,50,000 (Previous Year Rs. 34,59,00,000) will be settled once JBCL becomes a debt free company. However, the interest on the ICD is being recovered regularly.

iv) 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 subject to provision for diminution in value, other than temporary in nature. However, considering the long term nature and other related matters, investments in quoted companies amounting to Rs. 90,505,731 (Previous Year Rs. 90,505,731) have been valued at cost and the temporary short fall of Rs. 51,126,419 (Previous Year Rs. 28,042,951.) has not been provided for. As in the opinion of the management, the same is temporary in nature.

v) The company in one of the properties, on the demand raised by the Municipal Corporation of Delhi, had deposited Rs. 12,111,019 towards conversion charges and additional FAR charges for commercial use. The matter is under negotiation with tenant and the management is hopeful to recover the same. Any further demand, if raised, will be deposited from the amount recovered from the tenants.

vi) Deferred Taxation

In accordance with AS-22 on "Accounting for Taxes on Income", the company has recognized deferred tax assets on such timing differences based on the future income available so that such deferred tax assets can be reversed. Deferred Tax Assets have been recognized on account of timing difference arising between book depreciation and tax depreciation, provision for leave encashment, gratuity, diminution in the value of investments and carry forward of business losses.

vii) Current Taxation:-

a) Provision for Income Tax (MAT) for the year has been made after considering relief available under the Income Tax Act, 1961.

b) Income Tax assessments up to the Financial Year 2010-11 (Assessment Year 2011-12) have been completed and there are no pending demands against the company.

viii) Segment information:-

The company''s business activities predominantly relate to leasing and development of premises. Accordingly revenue from the leasing of premises comprises the primary basis of segmental reporting. Hence segmental reporting as defined in Accounting Standard - 17 is not applicable.

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

x) During the year, completion certificate in respect of commercial project has been received. It has been shown under the head non-current investments amounting to Rs. 8443.80 lacs as on March 31, 2013. As per the management''s decision the same has been transferred as on March 31, 2014 under the head stock in trade.

xi) Disclosure 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

India Lease Development Limited, Jayabharat Credit Limited, Bahubali Services Limited, MGF Estate Private Limited, MGF Securities Private Limited, Cards Services India Private Limited, Associated Traders & Engineers Private Limited ,Local Goods Carriers Private Limited,Ram Prakash & Co.Private Limited, Grosvenor Estates Private Limited and GEE GEE Holdings Private Limited.

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

Nil

iii) Key Management Personnel

Shri Rajiv Gupta, Smt Arti Gupta and Shri Arun Mitter.

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

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

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

---

Mar 31, 2013

1. CONTINGENT LIABILITIES: (Rs.)

Particulars March 31, 2013 March 31, 2012

a) Guarantees given to Sales Tax and other authorities, on behalf 481,895 424,439 of the company (against pledge of fixed deposits)

b) Other disputed demands not acknowledged as debts

i) Electricity charges(BSES) 6,992,324 6,924,303

ii) Interest on Property Tax (MCD) 4,752,630 -

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

3. In terms of Notification No.RBI/2006-07/200/DNBS/PDCC No.85/03.02.089 dated December 6, 2006 for continuation of business of NBFI, under Section 45-1A of the RBI Act,1934 pending issuance of fresh certificate of registration, the company continues to correspond to the classification as per the certificate issued under the NBFCs norms.

4. In view of the Company''s substantial holding in Jayabharat Credit Limited (JBCL) and to preserve Company''s reputation and image, the Board of Directors of the Company had taken a conscious decision to give Inter-Corporate Deposit (ICD), at the rate of interest mutually agreed in the financial year 2010-11 to meet the contingency in repayment of public deposits and banks of JBCL. The outstanding amount of the ICD is Rs. 345,900,000 (Previous Year Rs. 254,100,000) will be settled once JBCL becomes a debt free company. However, the interest on the ICD is being recovered regularly.

5. 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 provision for diminution in value, other than temporary in nature. However, considering the long term nature and other related matters, investments in quoted companies amounting to Rs. 90,505,731 (Previous Year Rs. 90,505,731) have been valued at cost and the temporary short fall of Rs. 28,042,951. (Previous Year Rs. 30,598,031) has not been provided for. As in the opinion of the management, the same is temporary in nature.

6. The Company could not comply with the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 with regard to credit concentration exposure in respect of one company which have become in excess of prescribed limits. However, RBI has been requested to give exemption in exceeding the exposure.

7. The Company in one of the properties, on the demand raised during the year, by the Municipal Corporation of Delhi, has deposited Rs. 1,40,29,312/- towards conversion charges and additional FAR charges for commercial use. The matter is under negotiation with tenants and the management is hopeful to recover the same. Further for the current year, the same is being contested with MCD and on finality of the same, the amount, if any, will be deposited from the amount recovered from the tenants.

8. 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.

9. Current Taxation:-

a) Provision for Income Tax for the year has been made after considering relief available under the Income Tax Act, 1961.

b) Income Tax assessments up to the financial year 2009-10 (Assessment Year 2010-2011) have been completed and there are no pending demands against the Company.

10. Segment information :-

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.

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

12. Disclosure 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

India Lease Development Limited, Jayabharat Credit Limited and Bahubali Services Limited. ii) Enterprises over which the key management personnel are able to exercise significant influence.

MGF Motors Private Limited, Kerala Cars Private Limited, Ram Prakash & Co.Private Limited and Grosvenor Estates Pvt.Limited.

iii) Key Management Personnel

Shri Rajiv Gupta, Smt Arti Gupta and Shri. Arun Mitter.

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

14. 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.

---

Mar 31, 2012

Notes:-

a) Term Loan from Kotak Mahindra Bank Limited is secured by way of mortgage of one of company's properties and hypothecation of trade receivables including all present and future lease rentals and personal guarantee of two directors.

b) The principal of term loan is payable by way of monthly installments and the floating rate of interest is 15.30%. The principal amount of loan repayable in Financial Year 2012-13 is Rs. 167,400,000/-, 2013-14 Rs. 122,300,000/-, 2014-15 Rs. 83,400,000/- and in 2015-16 Rs. 36,100,000/- respectively.

c) Working capital loan is secured by way of first & exclusive equitable mortgage of one of the properties of the company and personnel guarantee of two Directors.

d) Working capital loan is repayable in 36 equal installments after 12 months of moratorium period. The rate of interest on working capital loan is 15.55%

e) Vehicle loan is secured against the hypothecation of vehicle

f) The principal of vehicle loan is payable by way of monthly installments and the rate of interest is 13%. The principal amount of loan repayable in financial year 2012-13 is Rs. 3,522,242/-, 2013-14, Rs. 3,931,732/-, 2014-15 Rs. 4,762,707/- and in 2015-16 Rs. 4,485,049/- respectively.

1.1 The Company has charged Rs. 903,675/- (previous year Rs. 3,531,078/-) to Statement of Profit & Loss for the year ended 31st March, 2012 towards Gratuity Liability as per Payment to Gratuity Act, 1972. The closing Gratuity liability(current & non current) as on 31st March, 2012 is Rs. 10,951,169/-( previous year Rs. 10,047,494/-).

2. CONTINGENT LIABILITIES: (Amount in Rs.)

Particulars 31.3.2012 31.3.2011

a) Guarantees given to Sales Tax and other authorities, on behalf 424,439 424,439 of the company (against pledge of fixed deposits)

b) Other disputed demands not acknowledged as debts

i) Electricity charges(BSES) 6,924,303 6,924,303



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. In terms of Notification No.RBI/2006-07/200/DNBS/PDCC No.85/03.02.089 dated December 6, 2006 for continuation of business of NBFI, under Section 45-1A of the RBI Act,1934 pending issuance of fresh certificate of registration, the company continues to correspond to the classification as per the certificate issued under the NBFCs norms.

5. In view of the Company's substantial holding in Jayabharat Credit Limited (JBCL) and to preserve Company's reputation and image, the Board of Directors of the Company had taken a conscious decision to give Inter-Corporate Deposit (ICD) to meet the contingency in repayment of public deposits and banks of JBCL. The outstanding amount of the ICD is Rs. 254,100,000 (Previous Year Rs. 137,575,000), will be settled once JBCL becomes a debt free company. However, the interest on the ICD is being recovered regularly.

6. 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 provision for diminution in value, other than temporary in nature. However, considering the long term nature and other related matters, investments in quoted companies amounting to Rs. 90,505,731 (Previous Year Rs.81,701,231) have been valued at cost and the temporary short fall of Rs.30,598,031 (Previous Year Rs.38,224,543) has not been provided for.

7. The Company could not comply with the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 with regard to credit concentration exposure in respect of one company which have become in excess of prescribed limits.

8. The Company in one of the properties, on the demand raised during the year, by the Municipal Corporation of Delhi, has deposited Rs. 1,40,29,312/- towards conversion charges and additional FAR charges for commercial use. The matter is under negotiation with tenants and the management is hopeful to recover the same.

9. 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.

10. Current Taxation:-

a) Provision for Income Tax for the year has been made after considering reliefs available under the Income Tax Act, 1961.

b) Income Tax assessments up to the financial year 2008-2009 (Assessment Year 2009-2010) have been completed and there are no pending demands against the Company.

11. Segment information :-

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.

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

13. Disclosure 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

India Lease Development Limited, Jayabharat Credit Limited, Bahubali Services Limited, MGF Services Limited (amalgamated with India Lease Development Limited w.e.f. April 29, 2011) and Grossvenor Estates Pvt. Limited.

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

MGF Motors Private Limited, Capital Vehicle Sales (P) Ltd, Kerala Cars Private Limited, Columbia Holding Private Limited and Ram Prakash & Co. Private Limited.

iii) Key Management Personnel

Shri Rajiv Gupta, Smt Arti Gupta and Shri. Arun Mitter.

ii Directors Sitting Fees

Sundry Expenses include Rs. 80,000 (Previous Year Rs.85,000) paid towards Directors' Sitting Fees for attending Board Meetings. No Meeting Fee was paid for attending Committee Meetings.

ii) Directors Travelling Transport, Travelling and Motor Car Expenses include Rs.181,371 (Previous Year Rs.1,713,329) for Directors Travelling

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

15. 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

1. CONTINGENT LIABILITIES:

(Rs. in Lacs)

31.03.2010 31.03.2009

a) Guarantees given to Sales Tax and

other Authorities, on behalf of the 4.27 3.74

company. (against pledge of Fixed

Deposits)

b) Other disputed demands not

acknowledged as debts:

i) Property Tax - 300.00

ii) Electricity Charges 69.24 60.72

2. a) The Net Owned Funds (NOF) having become positive there is full compliance of the Reserve Bank of India guidelines prescribed for Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998.

b) The company has no plans to accept fresh public deposits in future, Reserve Bank of India accordingly has changed its existing category “A” i.e. Deposit Accepting Non Banking Finance Company to category “B” vide RBI Letter no.NBSNDNo/ MSB/05.20.070/2009-10 dated December 22, 2009 i.e. Non Accepting Deposits Non Banking Finance Company.

c) In terms of Reserve Bank of Indias Notification No.RBI/2006-07/200/DNBS/PDCC No.85/03.02.089 dated December 6, 2006 for continuation of business of NBFI, the company submitted to the Reserve Bank of India certificate under Section 45-1A for a fresh certificate of registration. Subject to issuance of fresh certificate of registration, the company continues to correspond to the classification as per the existing NBFCs norms.

3. 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 Indias guidelines, subject to provision for diminution in value, other than temporary in nature. However, considering the long term nature and other related matters, investments in quoted companies amounting to Rs.817.01 Lacs (Previous Year Rs. 817.01 Lacs) have been valued at cost and the temporary short fall of Rs.329.54 Lacs (Previous Year Rs. 270.24 Lacs) has not been provided for.

4. Honble High Court of Delhi, in writ petition fled by the company, vide order no. WP(C) 4539 of 2010 dated 13-07-2010 have stayed, till further orders, recovery of Service Tax in respect of renting of immovable property.

5. 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.

6. Current Taxation:-

(a) Provision for Income Tax for the year has been made after considering reliefs available under the Income Tax Act, 1961.

(b) Income Tax assessments up to the financial year 2006-2007 (Assessment Year 2007-2008) have been completed and there are no pending demands against the Company.

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

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

9. The Company has not received information from vendors regarding their status under

"The Micro Small and Medium Enterprises Development Act, 2006" and hence disclosure related to amounts unpaid as at the year end together interest paid/payable under this Act has not been given.

10. Figures of the Previous Year have been regrouped / rearranged wherever considered necessary to make them comparable with Current Years figures.