Notes forming part of financial statements for the year ended 31 March 2015

1. CORPORATE INFORMATION

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

2. SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Preparation

These financial statements are brpared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

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

b) Use of Estimates

The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets or liabilities for future periods.

c) Cash Flow Statement

Cash flow are reported using the indirect method where by cash flow from operating. Investing and financing activities of the Group are segregated and profit before tax Is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash or receipts.

d) Revenue Recognition

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

a. Interest and other dues are accounted on accrual basis excepf in the case of non-performing loans where it is recognized upon realization, as per the income recognition and assets classification norms brscribed by the RBI.

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

c. Dividend Is accounted when the right to receive is established.

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

e. Profit/loss on sale of Investments is recognized on trade data basis. Profit/loss on sale of Investment is determined based on 'weighted average' cost for Investment.

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

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

e) Fixed Assets

Fixed cost is stated at cost, net of accumulated debrciation and impairment losses if any. The Fixed Assets which useful life as per Schedule II of The Companies Act 2013, has already been expired is shown in residual value 8i WDV in excess of residual value is transferred to Reserve &. surplus. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Subsequent expenditure related to an item of fixed assets is added to book value only if it increases the future benefits from the existing assess beyond its brviously assessed standard of performance. All other expenses of existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from the de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of fixed asset and are recognized in the statement of profit and loss when the asset Is de-recognized.

f) Debrciation

Debrciation on fixed assets is provided using the Straight Line Basis on balance debrciable value (after retaining residual value) based on useful life brscribed under schedule II of the Companies Act, 2013.

g) Taxes on Income

Tax expenses comprise Current and Deferred Tax. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

h) Retirement and Other Employee Benefits Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has not deducted or deposited any provident fund on behalf of employee so there is no obligation of company towards provident fund.

Gratuity

The company has not made any provision for the gratuity and will be charged to the Profit 8i Loss Account in the year in which it is paid.

a) Earnings Per Share

Basic Earnings per Share Is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting all attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholder and the weighted average no of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

b) Cash and Cash Equivalent

Cash and cash equivalent for the purpose of cash flow statement comprise cash at bank and cash on hand, fixed deposit and interest accrued on deposits upto 31.03.2015.