Notes to Accounts of Invigorated Business Consulting Ltd.

Mar 31, 2025

2.13 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation,
its carrying amount is the present value of those cash flows (when the effect of the time value of money is
material).

When some or all of the economic benefits required to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured reliably.

2.14 Financial Instruments

A. Initial recognition

Financial assets and financial liabilities are recognised when a Company entity becomes a party to the
contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in profit or loss.

Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into
known amounts of cash that are subject to an insignificant risk of change in value and having original
maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash
equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

B. Subsequent measurement

I. Non-derivative financial instruments

a. Financial assets carried at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within
a business whose objective is to hold these assets in order to collect contractual cash flows and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

b. Financial assets at fair value through other comprehensive income

Investment in equity instruments (other than subsidiaries / associates / joint ventures) - All equity
investments in scope of Ind-AS 109 are measured at fair value. Equity insturments which are hled
for trading are generally classified at fair value through profit and loss (FVTPL). For all other equity
instruments, the Company decides to classify the same either at fair value through other comprehensive
income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an
instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the other comprehensive income (OCI). There
is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company

may transfer the cumulative gain or loss within equity. Dividends on such investments are recognised
in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

c. Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortised
cost or at fair value through other comprehensive income on initial recognition. The transaction costs
directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss
are immediately recognised in profit or loss.

d. Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method,
except for contingent consideration recognized in a business combination which is subsequently
measured at fair value through profit and loss. For trade and other payables maturing within one year
from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of
these instruments.

II. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new
ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.

C. Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under
Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s
Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.15 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and
assumptions that are based on market conditions and risks existing at each reporting date. The methods
used to determine fair value include discounted cash flow analysis, available quoted market prices and
dealer quotes. All methods of assessing fair value result in general approximation of value, and such value
may never actually be realised.

2.16 Impairment of financial assets (other than at fair value)

The Company assesses at each date of balance sheet whether a financial asset or a group of financial
assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance.
The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that
do not constitute a financing transaction. For all other financial assets, expected credit losses are measured
at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected
credit losses if the credit risk on the financial asset has increased significantly since initial recognition

b. The Company has other commitments, for purchase of goods and services and employee benefits, in
normal course of business. The Company does not have any long-term commitments/contracts including
derivative contracts for which there will be any material foreseeable losses.

c. Contingent liabilities *

(i) Sales tax demands against the Company not acknowledged as debt and not provided for in respect of
which the Company is in appeal is Rs. 2.93 lacs (Previous Year Rs. 2.93 lacs).

(ii) Claims/demands under litigation against the Company not acknowledged as debt and not provided for
in the books. Amount is presently not ascertainable.

* The provisions and the disclosures with regard to matters under litigations have been made based upon
the management representation.

# The above disclosure has been determined to the extent such parties have been identified on the basis of
information available with the Company. This has been relied upon by the auditors.

24 The Company has conducted routine physical verification of its property, plant and equipment during the year
in order to ensure their location, existence and assess their working condition. No discrepancies have been
reported during such verification.

25 All Property, Plant & Equipment and Intangible Assets of the Company are depreciated in accordance with the
provisions of the Companies Act, 2013. For assets that are fully depreciated but continue to be in use, the
minimum residual value is retained in the books of account.

26 The Company had accumulated losses as at the close of the financial year with its net worth continuing to
stand fully eroded. Presently, the Company continues to focus on recovery of old delinquent loan assets through
settlement/ compromise /legal action etc. arising out of it''s earlier NBFC business. The financial information in
these financial statements has been prepared on a going concern basis, which assumes that the Company will
continue it''s operational existence in the foreseeable future as the management of the company is considering
various options to undertake suitable business(s) and is also exploring the options of revival or restructuring of
the Company.

27 The Company is no longer registered with Reserve Bank of India (RBI) as Non Banking Financial Institution
(NBFI) after cancellation of it''s earlier registration vide RBI letter no DNBS(NDI) S.3242/MSA/06.05.001/2015-
16 dated 6 May 2016. Accordingly, the related provisions pertaining to NBFI are currently not applicable to the
Company.

28 In opinion of the Board, the loans & advances (net of related provisions) and other current assets have a value,
which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

29 Trade receivables amounting to Rs. 699.70 lacs (Previous Year Rs. 699.70 lacs) represents cases against which
legal actions/ settlements/compromises for recovery are in process. However, full provision is held against such
receivables.

30 95,00,000 - 1% Cumulative Redeemable Preference Shares (CRPS) have been allotted, by the Board of Directors
of the Company at its meeting held on November 03, 2022, to Escorts Kubota Limited (formerly Escorts Limited),
at par, for consideration other than cash i.e. in lieu of redemption of 95,00,000 - 10% CRPS in compliance of
NCLT Order dated May 13, 2022.

31 The Company is a subsidiary of M/s Escorts Kubota Limited (formerly Escorts Limited) (the "Holding Company").
The Holding Company bailed out the liability of the Company towards its unclaimed/unpaid matured fixed
deposits from time to time since 2007 in terms of a Scheme of Arrangement and Compromise filed before the
Hon''ble Delhi High Court. Accordingly, the amount of Rs. 14,805.82 lacs repaid to the respective fixed deposit
holders under the directions of the Court and balance amount of Rs 1056.22 lacs on account of unclaimed/
unpaid fixed deposits including interest thereon deposited in Investor Education Protection Fund till the end of
previous financial year. Therefore, the same has been shown aggregately as "FD Redemption through Court
approved arrangements" under "Non-Current Financial Liabilities" in the books of account.

32 The name of the Company has been changed to Invigorated Business Consulting Limited from Escorts Finance
Limited with effect from 14 June 2023, in accordance with the special resolution passed at the Annual General
Meeting of the Company, held on 30 September 2022, pursuant to the directions of Reserve Bank of India (RBI)
received vide its letter dated 12 May 2022, directing to change the name of the Company not reflecting financial
business activities.

33 In view of uncertainty of future taxable profits, the Company has not recognized deferred tax asset (net of
deferred tax liabilities) at the year end.

34 Additional regulatory information

(i) There are no proceedings that have been initiated or pending against the Company for holding any benami
property under the Prohibition of Benami Property Transactions Act, 1988 (as amended from time to time)
(earlier Benami Transactions (Prohibition) Act, 1988) and the rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(iii) There are no transactions / relationship with struck off companies.

(iv) The Company does not have any transaction not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income-tax Act, 1961). Further, there
was no previously unrecorded income and no additional assets were required to be recorded in the books
of account during the year.

(v) The Company has neither traded nor invested in Crypto currency or Virtual Currency during the year ended
March 31, 2025. Further, the Company has also not received any deposits or advances from any person for
the purpose of trading or investing in Crypto Currency or Virtual Currency.

(vi) The Company does not have any charges or satisfaction of charges which are yet to be registered with the
Registrar of Companies beyond the statutory period.

(vii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person or entity, including foreign entities ("Intermediaries")
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall, whether
directly or indirectly lend or invest in other persons/entities identified in any other manner whatsoever by or
on behalf of the Company (''ultimate beneficiaries'') or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

(viii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
("Funding party") with the understanding (whether recorded in writing or otherwise) that the Company
shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding party (ultimate beneficiaries); or provide any guarantee, security or the like on
behalf of the ultimate beneficiaries.

(ix) The Company has not granted any loans or advances in the nature of Loans to the promoters, directors,
KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any
other person which are repayable on demand or without specifying any terms or year of repayment (March
31, 2024: Nil).

(x) Valuation of PP&E, 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 year.

(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017, and there are no companies beyond
the specified layers.

39 The Company has a single reportable segment namely financial services (limited to recovery of loan assets) for
the purpose of Ind AS-108.

40 There are no other event observed after the reported period which have an impact on the Company''s
operation.

41 The figures for the previous period have been regrouped / rearranged / reclassified wherever necessary.

In terms of our report attached

For Kapish Jain & Associates, For and on behalf of the Board of Directors

Chartered Accountants
Firm''s Registration No. 022743N

CA Kapish Jain Ashok Kumar Behl Sumit Raj

Partner Whole Time Director Director

Membership No. 514162 DIN: 10146894 DIN: 07171298

Chakshoo Mehta Donald Fernandez

Place: Faridabad Company Secretary Chief Financial Officer

Date: 05 May, 2025 M. No.: A42309 PAN AAAPF9140N

---

Mar 31, 2024

2.13 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2.14 Financial Instruments

A. Initial recognition

Financial assets and financial liabilities are recognised when a Company entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

B. Subsequent measurement

I. Non-derivative financial instruments

a. Financial assets carried at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b. Financial assets at fair value through other comprehensive income

Investment in equity instruments (other than subsidiaries / associates / joint ventures) - All equity investments in scope of Ind-AS 109 are measured at fair value. Equity insturments which are hled for trading are generally classified at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the other comprehensive income (OCI). There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity. Dividends on such investments are recognised in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the P&L.

c. Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or loss.

d. Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

II. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares and share options are recognised as a deduction from equity, net of any tax effects.

C. Derecognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.15 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may never actually be realised.

2.16 Impairment of financial assets (other than at fair value)

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

22 Commitments and contingencies

a. The estimated amount of contracts remaining to be executed on capital amount and not provided for (net of advances) amount to Rs. Nil (31 March 2023: Rs. Nil).

b. The Company has other commitments, for purchase of goods and services and employee benefits, in normal course of business. The Company does not have any long-term commitments/contracts including derivative contracts for which there will be any material foreseeable losses.

c. Contingent liabilities *

(i) Sales tax demands against the Company not acknowledged as debt and not provided for in respect of which the Company is in appeal is Rs. 2.93 lacs (Previous Year Rs. 2.93 lacs).

(ii) Claims/demands under litigation against the Company not acknowledged as debt and not provided for in the books. Amount is presently not ascertainable.

# The above disclosure has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

24 The Company has conducted routine physical verification of its property, plant and equipment during the year in order to ensure their location, existence and assess their working condition. No discrepancies have been reported during such verification.

25 All the property, plant & equipment and intangible assets of the Company are fully depreciated in accordance with the provisions of Companies Act, 2013. The minimum residual value is carried in books of accounts.

26 The Company had accumulated losses as at the close of the financial year with its net worth continuing to stand fully eroded. Presently, the Company continues to focus on recovery of old delinquent loan assets through settlement/ compromise /legal action etc. arising out of it''s earlier NBFC business. The financial information in these financial statements has been prepared on a going concern basis, which assumes that the Company will continue it''s operational existence in the foreseeable future as the management of the company is considering various options to undertake suitable business(s) and is also exploring the options of revival or restructuring of the Company.

27 The Company is no longer registered with Reserve Bank of India (RBI) as Non Banking Financial Institution (NBFI) after cancellation of it''s earlier registration vide RBI letter no DNBS(NDI) S.3242/MSA/06.05.001/2015-16 dated 6 May 2016. Accordingly, the related provisions pertaining to NBFI are currently not applicable to the Company.

28 In opinion of the Board, the loans & advances (net of related provisions) and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

29 Trade receivables amounting to Rs. 699.70 lacs (Previous Year Rs. 699.70 lacs) represents cases against which legal actions/ settlements/compromises for recovery are in process. However, full provision is held against such receivables.

30 95,00,000 - 1% Cumulative Redeemable Preference Shares (CRPS) have been allotted, by the Board of Directors of the Company at its meeting held on November 03, 2022, to Escorts Kubota Limited (formerly Escorts Limited), at par, for consideration other than cash i.e. in lieu of redemption of 95,00,000 - 10% CRPS in compliance of NCLT Order dated May 13, 2022.

31 The Company is a subsidiary of M/s Escorts Kubota Limited (formerly Escorts Limited) (the "Holding Company"). The Holding Company bailed out the liability of the Company towards its unclaimed/unpaid matured fixed deposits from time to time since 2007 in terms of a Scheme of Arrangement and Compromise filed before the Hon''ble Delhi High Court. Accordingly, the amount of Rs. 14,805.82 lacs repaid to the respective fixed deposit holders under the directions of the Court and balance amount of Rs 1056.22 lacs on account of unclaimed/unpaid fixed deposits including interest thereon deposited in Investor Education Protection Fund till the end of previous financial year. Therefore, the same had been shown aggregately as "FD Redemption through Court approved arrangements" under "Non-Current Financial Liabilities" in the books of account.

32 Employee benefits plans

A. Defined contribution plans:

The Company makes Provident fund and Employee State Insurance Scheme contribution which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to the fund. The contribution payable to these plans by the Company are at rates specifed in the rules of the schemes. Employers''s contribution to Provident Fund and Employee''s State Insurance Scheme recognised as expenses in the Statement of Profit and Loss for the year are as under:

33 The name of the Company has been changed to Invigorated Business Consulting Limited from Escorts Finance Limited with effect from 14 June 2023, in accordance with the special resolution passed at the Annual General Meeting of the Company, held on 30 September 2022, pursuant to the directions of Reserve Bank of India (RBI) received vide its letter dated 12 May 2022, directing to change the name of the Company not reflecting financial business activities.

34 In view of uncertainty of future taxable profits, the Company has not recognized deferred tax asset (net of deferred tax liabilities) at the year end.

35 The Board of the Directors of the Company on 01 February 2021 had approved for sale of 14,60,000 shares of Rs 10/-each in Escorts Securities Limited, a investee company. The Company had entered into a Share Purchase Agreement dated on 08 April 2021 and amendment agreement dated on 14 February 2022, to sell the aforesaid shares to Choice Equity Broking Private Limited ("purchaser"). In terms of the agreement, upon necessary regulatory approvals and on the Closing date, the aforesaid shares had been transferred to the purchaser, at an aggregate consideration to be decided subject to post closing adjustments as per the audited financial of Escorts Securities Limited as at 14 February 2022 in terms of 4.6.5. of Share Purchase Agreement. Accordingly, provisional purchase consideration of Rs. 146.00 lacs had been realised towards transfer of equity shares to Choice Equity Broking Private Limited after the necessary regulatory approvals during the previous year i.e. financial year 2021-22.

Based on audited financials as on 14 February 2022 of Escorts Securities Limited (currently Shreeyam Securities Limited), the final purchase consideration of Rs 139.51 lacs has been decided towards the aforesaid sale. Accordingly, an amount of Rs 6.49 lacs has been repaid to Choice Equity Broking Private Limited on account of excess of provisional purchase consideration received over final purchase consideration and shown as ''Adjustment towards share purchase agreement'' under "Other Expenses" during the year 2022-23.

41 The Company has a single reportable segment namely financial services (limited to recovery of loan assets) for the purpose of Ind AS-108.

42 There are no other event observed after the reported period which have an impact on the Company''s operation.

43 The figures for the previous period have been regrouped / rearranged / reclassified wherever necessary.

In terms of our report attached

For Kapish Jain & Associates, For and on behalf of the Board of Directors

Chartered Accountants Firm''s Registration No. 022743N

CA Kapish Jain Ashok Kumar Behl Sumit Raj

Partner Whole Time Director Director

Membership No. 514162 DIN: 10146894 DIN: 07171298

Donald Fernandez

Place: Faridabad Chief Financial Officer

Date: 29 April 2024 PAN AAAPF9140N

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Mar 31, 2016

1. Estimated amounts of contracts remaining to be executed on capital account- (Net of advances)-Rs. Nil (Previous Year Rs. Nil)

2. Contingent Liabilities: Contingent liabilities not provided for in accounts in respect of:

3. Sales tax demands against the Company not acknowledged as debt and not provided for in respect of which the Company is in appeal is Rs. 2.93 lacs (Previous Year Rs.2.93 lacs).

4. Claims/demands under litigation against the Company not acknowledged as debt and not provided for in the books. Amount is presently not ascertainable.

5. Preference Share dividend amounting to Rs. 1615 lacs (Previous Year Rs. 1520 lacs) pertaining to 10% Redeemable Cumulative Preference Shares of Rs. 10/- each.

6.. Due to continued financial constraints the Company was not able to maintain investment in Government Securities as liquid assets in terms of Section 45-IB of Reserve Bank of India Act, 1934.

7. Due to paucity of funds and no fresh business having been conducted by Company, the Minimum Capital Adequacy Ratio could not be maintained as required for Non-Banking Financial Companies.

8. The Company had filed an application with the Reserve Bank of India (RBI) for deregistration of its NBFC status and accordingly Certificate of Registration (COR) has been surrendered. Subsequently to Balance Sheet date of 31st March, 2016, the approval for deregistration of the NBFC status of the Company has been received vide letter dated 06th May, 2016.

9. The credit rating for the Fixed Deposits programme of the Company was revised in November, 2005 by CARE Limited to CARE (B) i.e. Susceptible to default. No rating has been sought thereafter.

10. In accordance with the Hon''ble Delhi High Court''s Order / direction dated 04th March 2011, Escorts Benefit Trust (EBT) created by Escorts Limited, repaid matured fixed deposit liability against the claims received till 03rd March 2013. Claims received after the said date have also been entertained and settled after due verification. As at 31st March 2016, the unpaid/unclaimed matured fixed deposits liability is Rs. 1278.78 lacs (Previous Year Rs. 1357.40 lacs) which are pending to be deposited in the Investor Education & Protection Fund.

11. Due to the continued financial constraints faced by the Company, there is considerable delay/ difficulty in collection/recovery of loans and advances vide Note No. 09. Full provision is held against such loans and advances.

12. The Company had accumulated losses at the close of the financial year with its net worth continuing to stand fully eroded. The Company has not carried out any fresh business as a Non- Banking Financial Institution (NBFI) during the year and had filed an application with the Reserve Bank of India for de-registration of its NBFC status. However, the Company continues to focus on recovery of delinquent assets through settlement/compromise/ legal action etc. Besides the efforts on recovery of loan assets, the possibilities of venturing into newer business areas shall be examined subsequently. The accounts of the Company have been prepared on Going Concern Basis.

13. Trade receivables amounting to Rs. 793.52 lacs (Previous Year Rs. 846.99 lacs) vide Note No. 11 represent certain cases against which legal actions/ settlements/compromises are in process. However, full provision is held against such receivables.

14. Due to accumulated losses and loss for the year, the Company has not made any provision for preference dividend on cumulative preference shares amounting to Rs. 95.00 lacs as at March 31, 2016.

15. The Company has not obtained Actuarial Valuation with regards to Employee''s terminal benefits i.e., Gratuity and Leave Encashment as mandated by Accounting Standard 15 issued by the Institute of Chartered Accountants of India. In view of lesser number of employees on rolls, the Company has made provision for these benefits on actual basis as on the Balance Sheet date.

16. The Company is engaged primarily in the business of financing (limited to recovery of loan assets) and accordingly there are no separate reportable segments as per the Accounting Standard - 17 ''Segmental Reporting''.

17. Related Party Disclosure as identified and certified by the management:

Related party disclosures as required under Accounting Standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below:

18. Joint Ventures and Associates:

- Escorts Assets Management Limited.

- Surendra Ambalal Dave, Trustee of Escorts Benefit & Welfare Trust.

19. Key Management Personnel:

- Mr. P. K. Marwah - Manager

- Mr. Donald Fernandez -Chief Financial Officer

- Mr. Vicky Chauhan- Company Secretary

20. Related Party Transactions:

- Investment in shares of Escorts Assets Management Limited as on 31st March, 2016 is Rs. 489.93 lacs (as on 31st March, 2015 Rs. 489.93 lacs)

21. In opinion of the Board, the loans & advances and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

22. In view of uncertainty of future taxable profits, the Company has not recognized deferred tax asset (net of deferred tax liabilities) at the year end.

23. Balances appearing under loans & advances, trade receivables and current liabilities are subject to confirmation in certain cases.

24. The figures in the Balance Sheet and Profit & Loss Statement have been presented in Rupees Lacs and to the nearest thousand in terms of decimals under section 129(1) of the Companies Act, 2013.

25. As per the information available, there are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. (Previous Year: Rs. Nil).

26. Previous year figures have been regrouped / reclassified wherever necessary.

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Mar 31, 2015

1. Estimated amounts of contracts remaining to be executed on capital account- (Net of advances)-Rs. Nil (Previous Year Rs.Nil)

2. Contingent Liabilities:

(a) Sales tax demands against the Company not acknowledged as debt and not provided for in respect of which the Company is in appeal is Rs. 2.93 lacs (Previous Year Rs.2.93 lacs).

(b) Claims/demands under litigation against the Company not acknowledged as debt and not provided for in the books. Amount is presently not ascertainable.

3. Due to continued financial constraints the Company was not able to maintain investment in Government Securities as liquid assets in terms of Section 45-IB of Reserve Bank of India Act, 1934.

4. Due to paucity of funds and no fresh business having been conducted by Company, the minimum Capital Adequacy Ratio could not be maintained as required for Non-Banking Financial Companies.

5. The Company had filed an application with the Reserve Bank Of India (RBI) for deregistration of its NBFC status and accordingly Certificate of Registration (COR) has been surrendered.

6. The credit rating for the Fixed Deposits programme of the Company was revised in November, 2005 by CARE Limited to CARE (B) i.e. Susceptible to default. No rating has been sought thereafter.

7. In accordance with the Hon'ble Delhi High Court's Order / direction dated 04th March 2011, Escorts Benefit Trust (EBT) created by Escorts Limited, repaid matured fixed deposit liability against the claims received till 03rd March 2013. Claims received after the said date have also been entertained and settled after due verification. As at 31st March 2015, the unpaid/unclaimed matured fixed deposits liability is Rs. 1357.40 lacs (Previous Year Rs. 1606.08 lacs) which are pending to be deposited in the Investor Education & Protection Fund.

8. Due to the continued financial constraints faced by the Company, there is considerable delay/ difficulty in collection/recovery of loans and advances vide Note No. 09. Adequate provision is held against such loans and advances.

9. The Company has not carried out any fresh business as a Non- Banking Financial Institution (NBFI) during the year in view of the restrictions placed by and application filed for deregistration with Reserve Bank of India. However the Company continues to focus on recovery of delinquent assets through settlement/compromise/legal action etc. Pending completion of deregistration formalities and recovery of loan assets, the possibilities of venturing into newer business areas shall be examined subsequently. The accounts of the Company have been prepared on Going Concern Basis.

10. Trade receivables amounting to Rs. 846.99 lacs (Previous Year Rs. 865.51 lacs) vide Note No. 11 represent certain cases against which legal actions/ settlements/compromises are in process. However, full provision is held against such receivables.

11. Due to accumulated losses and loss for the year, the Company has not made any provision for preference dividend on cumulative preference shares.

12. The Company has not obtained Actuarial Valuation with regards to Employee's terminal benefits i.e., Gratuity and Leave Encashment as mandated by Accounting Standard 15 issued by the Institute of Chartered Accountants of India. In view of lesser number of employees on rolls, the Company has made provision for these benefits on actual basis as on the Balance Sheet date.

13. Pursuant to the notification of Schedule II of the Companies Act 2013 ("The Act") by the Ministry of Corporate Affairs effective April 01, 2014, the management has internally reassessed the useful lives and residual value of the assets. Accordingly the carrying amount as at April 01, 2014 is being depreciated over the revised remaining useful life of the assets after retaining the residual value.

14. The Company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per the Accounting Standard - 17 'Segmental Reporting'.

15. Related Party Disclosure as identified and certified by the management:

Related party disclosures as required under Accounting Standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below:

(a) Joint Ventures and Associates:

* Escorts Assets Management Limited.

* Surendra Ambalal Dave, Trustee of Escorts Benefit & Welfare Trust.

(b) Key Management Personnel:

* Mr. P. K. Marwah - Manager

* Mr. Donald Fernandez -Chief Financial Officer

* Mr. Vicky Chauhan- Company Secretary

(c) Related Party Transactions:

* Investment in shares of Escorts Assets Management Limited as on 31st March, 2015 is Rs. 489.93 lacs (as on 31st March, 2014 Rs. 489.93 lacs)

16. In opinion of the Board, the loans & advances and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

17. In view of uncertainty of future taxable profits, the Company has not recognized deferred tax asset (net of deferred tax liabilities) at the year end.

18. Balances appearing under loans & advances, trade receivables and current liabilities are subject to confirmation in certain cases.

19. The figures in the Balance Sheet and Profit & Loss Statement have been presented in Rupees Lacs and to the nearest thousand in terms of decimals under section 129(1) of the Companies Act, 2013.

20. Earning Per Share

I) Basic

S. Particulars 31st March 2015 31st March 2014 No.

1 Opening No. of shares 40172500 40172500

2 Total Shares outstanding 40172500 40172500

3 Profit/ (Loss) after tax (8.68) 12.56 (Rs. Lacs)

4 Earning per Share (Rupees) (0.02) 0.03

II) Diluted: None of the potential equity shares are dilutive.

21. As per the information available, there are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. (Previous Year: Rs. Nil).

22. Previous year figures have been regrouped / reclassified wherever necessary.

---

Mar 31, 2014

1. SHARE CAPITAL

Out of the above:

(a) 10% Redeemable Cumulative Preference Share redeemable on 27th June, 2017.

(b) The details of Shareholder holding more than 5% shares:

2. Estimated amounts of contracts remaining to be executed on capital account- (Net of advances)-Rs. Nil (Previous Year Rs. Nil)

3. Contingent Liabilities:

a. Sales tax demands against the Company not acknowledged as debt and not provided for in respect of which the Company is in appeal is Rs. 2.93 lacs (Previous Year Rs.2.93 lacs).

b. Claims/demands under litigation against the Company not acknowledged as debt and not provided for in the books. Amount is presently not ascertainable.

4. Due to continued financial constraints the Company was not able to maintain investment in Government Securities as liquid assets in terms of Section 45-IB of Reserve Bank of India Act, 1934.

5. Due to paucity of funds and no fresh business having been conducted by Company, the minimum Capital Adequacy Ratio could not be maintained as required for Non-Banking Financial Companies.

6. The Company has filed an application with the Reserve Bank Of India (RBI) for deregistration of its NBFC status and accordingly Certificate of Registration (COR) has been surrendered.

7. The credit rating for the Fixed Deposits programme of the Company was revised in November, 2005 by CARE Limited to CARE (B) i.e. Susceptible to default. No rating has been sought thereafter.

8. In accordance with the Hon''ble Delhi High Court''s Order / direction dated 4th March 2011, Escorts Benefit Trust (EBT) created by Escorts Limited, repaid matured fixed deposit liability against the claims received till 3rd March 2013. Claims received after said date are also being entertained and settled after due verification. As at 31st March 2014, the unpaid/unclaimed matured fixed deposits liability is Rs. 1606.08 lacs (Previous Year Rs. 1747.43 lacs).

9. Due to the continued financial constraints faced by the Company, there is considerable delay/difficulty in collection/recovery of loans and advances vide Note No. 9. Adequate provision is held against such loans and advances.

10. The Company has not carried out any fresh business as a Non- Banking Financial Institution (NBFI) during the year in view of the restrictions placed by and application filed for deregistration with Reserve Bank of India. However the Company continues to focus on recovery of delinquent assets through settlement/compromise/legal action etc. The management is also exploring possibilities of establishing the Company in the businesses other than NBFI and accordingly the accounts of the Company have been prepared on going concern basis.

11. Trade receivables amounting to Rs. 865.51 lacs (Previous Year Rs. 904.64 lacs) vide Note No. 11 represents certain cases against which legal actions/ settlements/compromises are in process. However, full provision is held against such receivables.

12. Although the Company has made profit during the year, it has accumulated losses as at end of financial year and also has incurred losses in the immediately preceding financial year, the Company has not made any provision for preference dividend on cumulative preference shares.

13. The Company has not obtained Actuarial Valuation with regards to Employee''s terminal benefits i.e., Gratuity and Leave Encashment as mandated by Accounting Standard 15 issued by the Institute of Chartered Accountants of India. In view of lesser number of employees on rolls, the Company has made provision for these benefits on actual basis as on the Balance Sheet date.

14. The Company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per the Accounting Standard - 17 ''Segmental Reporting''.

15. Related Party Disclosure as identified and certified by the management:

Related party disclosures as required under Accounting Standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below:

(a) Joint Ventures and Associates:

* Escorts Assets Management Limited.

* Surendra Ambalal Dave, Trustee of Escorts Benefit & Welfare Trust.

(b) Key Management Personnel:

* Mr. P. K. Marwah - Manager

(c) Related Party Transactions:

* Investment in shares of Escorts Assets Management Limited as on 31st March, 2014 is Rs. 489.93 lacs (as on 31st March, 2013 Rs. 489.93 lacs)

16. In view of uncertainty of future taxable profits, the Company has not recognized deferred tax asset (net of deferred tax liabilities) at the year end.

17. In opinion of the Board, the loans & advances and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

18. Balances appearing under loans & advances, trade receivables and current liabilities are subject to confirmation in certain cases.

19. Earning Per Share

Diluted: None of the potential equity shares are dilutive.

20. The figures in the Balance Sheet and Profit & Loss Statement have been presented in Rupees Lacs and to the nearest thousand in terms of decimals. The approval of the Government of India for the same has been obtained under section 211(1) of the Companies Act, 1956.

21. As per the information available, there are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. (Previous Year: Rs. Nil).

22. Previous year figures have been regrouped/reclassified wherever necessary.

---

Mar 31, 2013

1. Estimated amounts of contracts remaining to be executed on capital account- (Net of advances)-Rs. Nil (Previous Year Rs.Nil)

2. Contingent Liabilities: (Rs. in Lacs)

Particulars 31st March 2013 31st March 2012

Sales tax demands against the Company not acknowledged as 2.93 2.93 debt and not provided for in respect of which the Company is in appeal.

3. Due to continued fnancial constraints the Company was not able to maintain investment in Government Securities as liquid assets in terms of Section 45-IB of Reserve Bank of India Act, 1934.

4. Due to paucity of funds and no fresh business having been conducted by Company, the minimum Capital Adequacy Ratio could not be maintained as required for Non-Banking Financial Companies.

5. The company has fled an application with the Reserve Bank Of India (RBI) for deregistration of its NBFC status and accordingly Certifcate of Registration (COR) has been surrendered.

6. The credit rating for the Fixed Deposits programme of the Company was revised in November, 2005 by CARE Limited to CARE (B) i.e. Susceptible to default. No rating has been sought thereafter.

7. In accordance with the Hon''ble Delhi High Court''s Order / direction dated 4th March 2011, Escorts Beneft Trust (EBT) created by Escorts Limited, repaid matured fxed deposit liability against the claims received till 3rd March 2013. As at 31st March 2013, the unpaid/unclaimed matured fxed deposits liability is Rs.1747.43 lacs (Previous Year Rs.2101.88 lacs).

8. Investments in securities amounting to Rs.1.25 lacs at cost (Previous Year Rs. 1.25 lacs) are currently not traceable in the records. Adequate provision for the same has been made in the books of account as at the year end.

9. Due to the continued fnancial constraints faced by the Company, there is considerable delay/ diffculty in collection of installments due and recovery of advances. Adequate provision has been made in all such cases.

10. The company has not carried out any fresh business as a Non- Banking Financial Institution (NBFI) during the year in view of the restrictions placed by Reserve Bank of India. However the company continues to focus on recovery of delinquent assets through settlement/compromise/legal action etc. The management is also exploring possibilities of establishing the company in the businesses other than NBFI and accordingly the accounts of the company have been prepared on going concern basis.

11. Trade receivables amounting to Rs. 904.64 lacs (Previous Year Rs. 919.09 lacs) vide Note No.-11 represent certain receivables against which legal actions/ settlements/compromises are in process. However, full provision is held against such receivables.

12. Due to accumulated losses and loss for the year, the company has not made any provision for preference dividend on cumulative preference shares.

13. The Company has not obtained Actuarial Valuation with regards to Employee''s terminal benefts i.e., Gratuity and Leave Encashment as mandated by Accounting Standard 15 issued by the Institute of Chartered Accountants of India. In view of limited number of employee''s left on rolls, the Company has made full provision for these benefts as on the Balance Sheet Date.

14. The Company is engaged primarily in the business of fnancing and accordingly there are no separate reportable segments as per the Accounting Standard – 17 ''Segmental Reporting''.

15. Related Party Disclosure as identifed and certifed by the management:

Related party disclosures as required under Accounting Standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below:

(a) Joint Ventures and Associates:

Escorts Assets Management Limited.

Surendra Ambalal Dave, Trustee of Escorts Beneft & Welfare Trust.

(b) Key Management Personnel:

Mr. P. K. Marwah - Manager

(c) Related Party Transactions:

Investment in shares of Escorts Assets Management Limited as on 31st March, 2013 is Rs. 489.93 lacs (as on 31st March, 2012 Rs. 489.93 lacs)

16. In view of uncertainty of future taxable profts, the company has not recognized deferred tax asset (net of deferred tax liabilities) at the year end.

17. In opinion of the Board, the loans & advances and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

18. Balances appearing under loans & advances, trade receivables and current liabilities are subject to confrmation in certain cases.

II) Diluted: None of the potential equity shares are dilutive.

19. The fgures in the Balance Sheet and Proft & Loss Statement have been presented in Rupees Lacs and to the nearest thousand in terms of decimals. The approval of the Government of India for the same has been obtained under section 211(1) of the Companies Act, 1956.

20. As per the information available, there are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identifed on the basis of information available with the Company. (Previous Year: Rs. Nil).

21. Previous year fgures have been regrouped / reclassifed wherever necessary.

---

Mar 31, 2012

1. Estimated amounts of contracts remaining to be executed on capital account - (Net of advances) - Rs. Nil (Previous period Rs. Nil)

2. Contingent Liabilities:

Particulars 31st March 31st March 2012 2011

Sales tax demands against the Company not acknowledged as debt and not provided for 2.93 2.93 in respect of which the Company is in appeal.

3. Due to continued financial constraints the Company was not able to maintain investment in Government Securities as liquid assets in terms of Section 45-IB of Reserve Bank Of India Act,1934.

4. The unpaid matured/unclaimed fixed deposit liability (including interest there on) amounting to Rs. 2,091.64 lacs as on 31st March 2012 (Rs. 3,244.69 lacs as on 31st March 2011) shall be met out of funds/assets of requisite value kept with Escorts Benefit Trust created by Escorts Limited in terms of direction of the Hon'ble Delhi High Court, issued while disposing off the Scheme of Compromise and Arrangement filed by the company along with Escorts Limited before the Hon'ble court vide which Escorts Limited had undertaken to bail out the fixed deposit holders and creditors of the Company.

5. Investments in securities amounting to Rs. 1.25 lacs (P.Y. Rs. 20.85 lacs) are currently in the process of being transferred in the name of the Company as the same has not been traceable in the records.

6. The Company had sold 48,99,300 Equity Shares of Rs. 10/- each of Escorts Assets Management Limited during the financial year 2002-03. These shares were not transferred in the name of buyer due to non-receipt of regulatory approvals. During the year, the transaction of sale has been annulled with mutual consent and consequently the investment in these shares has been restored in the books of accounts.

7. Due to paucity of funds and no fresh business having been conducted by Company, the minimum Capital Adequacy Ratio could not be maintained as required for Non-Banking Financial Companies.

8. The credit rating for the Fixed Deposits programme of the Company was revised in November, 2005 by CARE Limited to CARE (B) i.e. Susceptible to default. After submission of the Scheme of Compromise and Arrangement filed before the Hon'ble Delhi High Court, no rating has been sought thereafter.

9. Due to the continued financial constraints faced by the Company, there is considerable delay/difficulty in collection of installments due and recovery of advances. Adequate provision has been made in all such cases.

10. The company has not carried out any fresh business as a Non- Banking Financial Institution (NBFI) during the year in view of the restrictions placed by Reserve Bank of India due to defaults in repayment of matured fixed deposits which happened due to large scale delinquencies in the hire purchase financing business. However the company continues to focus on recovery of such delinquent assets through settlement/compromise/legal action etc. The management is also exploring possibilities of establishing the company in the businesses other than NBFI and accordingly the accounts of the company have been prepared on going concern basis.

11. Consequent to large scale delinquencies in Hire Purchase financing business of the Company in the past, the company had, in earlier years, made full provision for doubtful debts in respect of trade receivables amounting to Rs. 20457.13 lacs. These receivables are outstanding since considerable period of time. During the year, the Company has, on a prudent basis, written-off amounts aggregating to Rs. 19531.39 lacs out of the above trade receivables as not recoverable. Further, certain related receivables amounting to Rs. 479.20 lacs shown as advance recoverable have also been written-off during the year against which full provisions were held. Consequently provision held against such receivables and advances have been written back in the books of account during the year.

Trade receivables amounting to Rs. 919.09 lacs vide Note No.-11 represent certain receivables against which legal actions/settlements/compromises are in process. However, full provision is still held against such receivables.

12. Due to accumulated losses and loss for the year, the company has not made any provision for preference dividend on cumulative preference shares.

13. The Company has not obtained Actuarial Valuation with regards to Employee's terminal benefits i.e., Gratuity and Leave Encashment as mandated by Accounting Standard 15 issued by the Institute of Chartered Accountants of India. In view of limited number of employee's left on rolls, the Company has made adequate provision for these benefits as on the Balance Sheet Date.

14. The Company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per the Accounting Standard - 17 'Segmental Reporting'.

15. Related Party Disclosure as identified and certified by the management:

Related party disclosures as required under Accounting Standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below:

(a) Joint Ventures and Associates:

- Escorts Finance Investments & Leasing Private Limited.

- Escotrac Finance and Investment Private Limited.

- Escorts Assets Management Limited.

(b) Key Management Personnel:

- Mr. P. K. Marwah - Manager

(c) Related Party Transactions:

- Nil, However Investment of Rs. 489.93 Lacs (Previous Year: Rs. Nil) in shares of Escorts Assets Management Limited reinstated during the year at cost. (Refer Note-25)

16. In view of uncertainty of future taxable profits, the Company has not recognized deferred tax Asset (net of deferred tax liabilities) at the year-end.

17. The reconciliation of advance tax/TDS recoverable with the related tax liability for the earlier years has been carried out during the year. The consequent impact of the same at Rs. 533.62 lacs has been taken to profit and loss account under the head Tax Expense.

18. In opinion of the Board, the loans & advances and other current assets have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

19. Balances appearing under loans & advances, trade receivables and current liabilities are subject to confirmation in certain cases.

20. Earning Per Share

II) Diluted: None of the potential equity shares are dilutive.

21. The figures in the Balance Sheet and Profit & Loss Account have been presented in Rupees Lacs and to the nearest thousand in terms of decimals. The approval of the Government of India for the same has been obtained under-section 211(1) of the Companies Act, 1956,

22. As per the information available, there are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31,2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. (Previous Year: Rs. Nil).

23. The financial statements for the year ended March 31,2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for the previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

---

Mar 31, 2011

1. Estimated amounts of contracts remaining to be executed on capital account – (Net of advances) - Rs. Nil (Previous period Rs. Nil)

2. Contingent Liabilities:

As at As at Particulars 31.03.11 31.03.10 (Rs. lacs) (Rs. lacs)

a) Income tax/ surtax demands against the Company not 295.83 295.83 acknowledged as debts and not provided for in respect of which the Company is in appeal before the Tribunal/ Commissioner (Appeals), excluding for those matters where a favorable order is available for earlier years.

b) Sales tax demands against the Company not 2.93 2.93 acknowledged as debt and not provided for in respect of which the Company is in appeal.

3. Due to continued financial constraints the Company was not able to maintain requisite investments in

Government Securities as liquid assets in terms of Section 45-B(I) of Reserve Bank of India Act,1934. However ,during the year the Fixed Deposit liability to the extent of Rs 13,031.92 Lacs out of total liability of Rs. 16,276.61 lacs has been liquidated in the course of implementation of the Scheme of Arrangement and Compromise (Refer Note No. 7 below) under the direction of Honble Delhi High Court. For the remaining sum, the funds/assets of requisite value have been kept in Benefit Trust created by Escorts Limited in terms of the direction of Honble Delhi High Court. Therefore, as per the Management, the Company is not required to maintain any investment in liquid assets in terms of requirements of Reserve Bank Of India.

4. Investment in Securities amounting to Rs.1.25 Lacs (P.Y. Rs.20.85 Lacs) are currently in the process of being transferred in the name of the Company as the same has not been traceable in the records.

5. Due to paucity of funds and the fresh business not having been conducted by Company, the minimum Capital Adequacy Ratio could not be maintained in terms of the Non-Banking Financial Companies Requirement.

6. The credit rating for the Fixed Deposits programme of the Company was revised in November, 2005 by CARE Limited to CARE (B) i.e. Susceptible to default. In view of the Scheme of Arrangement filed before the Honble Delhi High Court, no rating has been sought thereafter.

7. The Scheme of Arrangement and Compromise filed by the Company alongwith Escorts Ltd. before Honble Delhi High Court, vide which Escorts Ltd. had undertaken to bail out the fixed deposit holders and creditors of the company, stands disposed off. During the pendency of the scheme, on the interim directions of the Honble Court from time to time, a total payment of Rs.13,031.92 lacs have been made to those fixed deposit holders who came forward to claim the maturity value of fixed deposit in full and final settlement. The payments have been made under the overall control and supervision of the Hardship Committee constituted by the Honble Court , to whom equity shares of Escorts Ltd. of required value were allotted to enable it to dispose off the same in open market and disburse the proceeds to the claimants. On the principal objectives of the scheme having been achieved, the Company and Escorts Ltd. filed applications before the Honble Court to permit withdrawal of the Scheme/Petitions, which have been allowed by the Honble Court on compliance of certain conditions. Accordingly, the unsold 24,01,050 Equity Shares of Escorts Limited lying with the Hardship Committee have been transferred to Escorts Benefit Trust for the purpose of discharge of unclaimed Fixed Deposits in terms of the direction of the Honble Court. The unclaimed amount as on 31st March 2011 is Rs.3,244.69 lacs. The necessary adjustments have been made in the books of account by substituting Escorts Ltd. as creditor of the company in place of the fixed deposit holders to the extent of the payments made upto 31st March, 2011.

8. The accounts of the Company have been prepared on going concern basis inspite of the continued full erosion of net worth. The management is exploring possibilities to expand the business activities in to non- funded and other financial services business now since the objective of Scheme of Arrangement and Compromise have been fulfilled.

9. During the year, the Company had conducted Physical Verification of its Fixed Assets in order to ensure their locations and existence and assess their working conditions. Accordingly, WDV of Fixed Assets amounting to Rs. 41.67 Lacs have been written off during the year based on such verification.

10. Due to the continued financial constraints faced by the Company, there is considerable delay/ difficulty in collection of installments due and recovery of advances. Adequate provision has been made in all such cases.

11. The Company has not obtained Actuarial Valuation with regard to Employees terminal benefits i.e., Gratuity and Leave Encashment as mandated by Accounting Standard 15 issued by the Institute of Chartered Accountants of India. In view of limited number of employees left on rolls, the Company has made adequate provision for these benefits as on the Balance Sheet Date.

12. Computation of Net Profits as per Section 349 read with Section 309(5) and Section 198 of the Companies Act, 1956 is not furnished for the current period, as no commission is payable to the Directors.

13. The Company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per the Accounting Standard – 17 Segmental Reporting.

14. Related Party Disclosure as identified and certified by the management:

Related party disclosures as required under Accounting Standard 18 on “Related Party Disclosure” issued by the Institute of Chartered Accountants of India are given below:

a. Joint Ventures and Associates: - Escorts Finance Investments and Leasing Pvt. Ltd.

- Escotrac Finance and Investment Pvt. Ltd.

b. Key Management Personnel - Mr. P.K. Marwah - Manager

c. Related Party Transactions - NIL.

15. In view of uncertainty of future taxable profits, the Company has not recognized deferred tax Asset (net of deferred tax liabilities) at the year-end.

16. The reconciliation of advance tax/ TDS recoverable with the related provision for taxation pertaining to earlier years is in progress. The impact, if any, arising out of such reconciliation is presently not ascertainable.

17. Liability No Longer Required Written Back:

a. During the year, the Company wrote back excess liabilities amounting to Rs. 136.70 lacs which were made in earlier years and in the opinion of the management, are no longer required to be carried in the books of account as at March 31, 2011.

b. Provision No Longer Required Written Back amounting to Rs. 43.57 lacs represents certain Provision for Doubtful Advances and Doubtful Debts written back during the year.

19. The figures in the Balance Sheet and Profit & Loss Account have been presented in Rupees Lacs and to the nearest thousand in terms of decimals. The approval of the Government of India for the same has been obtained under section 211(1) of the Companies Act, 1956.

20. As per the information available, there are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. (Previous Year: Rs. Nil)

21. In opinion of the Board, the current assets, loans and advances have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

22. Balances appearing under loans, sundry debtors and sundry creditors are subject to confirmation in certain cases.

23. Previous periods figures have been regrouped/ reclassified wherever necessary.

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Mar 31, 2010

1. Estimated amounts of contracts remaining to be executed on capital account - (Net of advances) - Rs. Nil (Previous period Rs. Nil)

2. Contingent Liabilities:

As at As at

Particulars 31.03.10 31.03.09

(Rs. lacs) (Rs. lacs)

a) Income tax/ surtax demands against the Company not 295.83 295.83 acknowledged as debts and not provided for in respect of which the Company is in appeal before the Tribunal/ Commissioner (Appeals), excluding for those matters where a favorable order is available for earlier years.

b) Sales tax demands against the Company not 2.93 15.41 acknowledged as debt and not provided for in respect of which the Company is in appeal.

c) Guarantees given by the Company (Margin Money - 7.67

Deposit Rs7.67 lacs)



3. (a) Investments in Government Securities amounting to Rs. 311.25 lacs (Previous Year Rs. 311.25 lacs) and Fixed Deposits with Bank amounting to Rs. 60.93 lacs (Previous year Rs. 57.48) are held in pursuance of Rule 12 of Non-Banking Financial Companies (Reserve Bank) Directions, 1998.

(b) Due to continued financial constraints, the Company has not been able to maintain investments in Government Securities as liquid assets in terms of Section 45-B(I) of Reserve Bank of India Act, 1934.

4. Investment in securities amounting to Rs. 20.85 lacs are currently in the process of being transferred in the name of the company as the same has not been traceable in the records. The formalities for obtaining relevant share certificates are being complied with.

5. As at the year ended 31st March 2010, the Company has not maintained the minimum Capital Adequacy Ratio that is required to be maintained in terms of the Non-Banking Financial Companies Requirements.

6. As per the provisions of the Reserve Bank of India, (Amendment) Ordinance, 1997 No.2, the Company is required to create a Special Reserve equivalent to a minimum of 20% of the net profit after tax. In the absence of profit for the year, the company has not created any Special Reserve.

7. The credit rating for the Fixed Deposits programme of the Company was revised in November, 2005 by CARE Limited to CARE (B) i.e. Susceptible to default. In view of the Scheme of Arrangement filed before the Honble Delhi High Court, no rating has been sought thereafter.

8. To bail out the Company from its financial constraints and to protect the interest of fixed deposit holders and secured creditors of the Company, a Scheme of Arrangement was filed before the Honble Delhi High Court. As per directions of the Delhi High Court, the approval of fixed deposit holders and the secured creditors to the proposed scheme was obtained. As per the interim order of the Court, partial repayments have been made to certain depositors in hardship cases determined by independent committee set-up by the Court, to whom 34,04,256 shares of Escorts Limited were made available for sale and disbursement among such cases. As at the year end an amount of Rs. 1,660.05 lacs was paid by Hardship Committee out of proceeds realized by sale/transfer of some share to the identified deposits holders. The principal amount of fixed deposits and interest accrued thereon relating to identified hardship cases has been shown under Current Liabilities. Any further liabilities towards the matured fixed deposits including overdue interest, if any, shall be accounted for in accordance with the terms of approval of Scheme by the Honble Delhi High Court.

9. The company is conducting physical verification of its fixed assets in order to ensure their location/existence/working condition. The necessary adjustments arising therefrom including provisioning/impairment/write off, shall be carried out as and when completed.

10. The 10% Redeemable Cumulative Preference Shares issued by the company and which were due for redemption on 28.06.2009 are pending redemption as at the end of the financial year.

11. The accounts of the Company have been prepared on going concern basis inspite of the continued full erosion of net worth. The management plans to expand the business activities in to non-funded and other financial services business once the Scheme of Arrangement and Compromise is approved by the Honble Delhi High Court and implemented.

12. Due to the continued financial constraints faced by the Company, there is considerable delay/ difficulty in collection of installments due and recovery of advances. Adequate provision has been made in all such cases.

13. Computation of Net Profits as per Section 349 read with Section 309(5) and Section 198 of the Companies Act, 1956 is not furnished for the current period, as no commission is payable to the Directors.

14. The Company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per the Accounting Standard - 17 Segmental Reporting.

15. Related Party Disclosure as identified and certified by the management:

Related party disclosures as required under Accounting Standard 18 on "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are given below:

a. Joint Ventures and Associates: - Escorts Finance Investments and Leasing- Pvt. Ltd.

- Escotrac Finance and Investment Pvt. Ltd.

b. Key Management Personnel

Mr. P.K. Marwah - Manager

c. Related Party Transactions: NIL.

16. In view of uncertainty of future taxable profits, the Company has not recognized deferred tax Asset (net of deferred tax liabilities) at the year end.

17. The reconciliation of advance tax / TDS recoverable with the related provision for taxation pertaining to earlier years is in progress. The impact, if any, arising out of such reconciliation is presently not ascertainable.

18. The figures in the Balance Sheet and Profit & Loss Account have been presented in Rupees Lacs and to the nearest thousand in terms of decimals. The approval of the Government of India for the same has been obtained under section 211(1) of the Companies Act, 1956.

19. As per the information available, there are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. (Previous Year: Rs. Nil)

20. In opinion of the Board, the current assets, loans and advances have a value, which if realized in the ordinary course of business, will not be less than the value stated in the Balance Sheet.

21. Balances appearing under loans, sundry debtors and sundry creditors are subject to confirmation in certain cases.

22. Previous periods figures have been regrouped/ reclassified wherever necessary.