1. SIGNIFICANT ACCOUNTING POLICIES:

i)Basis of Preparation of Financial Statements:

The financial statements are brpared under the historical cost convention as a going concern. The accounts have been brpared by adopting the accrual system of accounting and in accordance with directions brscribed by the Reserve Bank of India for Non Banking Financial Companies. Accounting Policies, not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles.

ii)Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange brvailing on the date of the transactions. Monetary assets and liabilities related to foreign currency transactions remaining unsettled are translated at year end rate.

The difference in translation of Monetary assets and liabilities and realized gains and losses on foreign exchange transaction are recognized in profit & loss account.

Foreign currency gain/loss relating to translation of net investment in non-integral foreign operation is recognized in the foreign currency translation reserve.

iii)Fixed Assets and Debrciation :

a)Fixed Assets

Fixed Assets are stated at their cost of acquisition less accumulated debrciation. Cost comprises of all cost, net of income (if any), incurred to bring the assets to their brsent location and working condition and other related overheads till such assets are ready for intended use.

b)Debrciation

Debrciation on all Fixed Assets of the Company is provided on Straight Line Method at the rates specified in Schedule II to the Companies Act, 2013, as amended up to date or at the rates calculated to write off 95% of the value of the assets over the remaining useful life of the assets, as determined by the management.

iv)Investments:

Long term investments are stated at cost. When there is a decline other than temporary in their value, the carrying amount is reduced on an individual investment basis and decline is charged to the Profit and Loss Account. Appropriate adjustment is made in carrying cost of investment in case of subsequent rise in value of investments.

v)Retirement Benefits: Defined Benefit Plans:

Leave Encashment and Gratuity are defined benefit plans. The Company has provided for the liability at the year end based on actuarial valuation using the Projected Unit Credit Method. Actuarial gains and losses are recognized as and when incurred.

vi)Taxation:

Provision is made for income-tax liability estimated to arise on the results for the year at the current rate of tax in accordance with Income-Tax Act, 1961.

Deferred tax resulting from timing differences between book profits and tax profits is accounted for, at the rate on the Balance Sheet date, to the extent that the timing differences that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred Tax Assets arising from timing differences are recognized to the extent there is a reasonable/virtual certainty that the assets can be realized in future.

5.Loans and advances repayable on demand (other than those considered as non performing assets) includes ^8271.09 lacs (Previous year Rs. 9353.54 lacs) due from various O.P. Jindal Group companies which currently have accumulated losses in their books as per latest available audited balance sheet. The Company has mechanism for review and monitoring of all such loans and is confident of recovering these amounts, which are considered good in nature, as and when called for payment. The Company would take necessary action for recovery of these amounts, if required.

6.In the opinion of the Board, Value of all assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7.a) Provision for standard assets amounting to Rs. Nil has been made at 0.25% of the outstanding standard assets as at 31st March, 2015 in terms of Notification No. DNBS.222/CGM (US)-2011 dated 17-01-2011 issued by Reserve Bank of India.

b) The Company has made adequate provision for the Non-Performing Assets identified. Accordingly provision for Sub-Standard and Doubtful assets is made with the guidelines issued by The Reserve Bank of India.

8.The company operates in single primary segment (i.e. investment and finance.)

9.(i) Provision for Non Performing Loans and Advances amounting to Rs. 1612.00 lacs (brvious year Rs. Nil) on doubtful loans has been decided

by the management considering prudential norms brscribed by the Reserve Bank of India as also financial health of the borrower was not good. The borrower has also approached the company to waive the interest due to the liquidity crisis. However, the borrower promises to pay principal amount of the loan after the outcome of Arbitration Proceeding, which is most likely to be in the favour of the borrower.

10. The Company has given loans to various companies, which are repayable on demand. During the year, interest on such loans has been serviced by converting into principal, and the same has also been acknowledged by the borrowers.

11.As per Notification No. DNBR.008/CGM (CDS) - 2015 dated March 27, 2015 issued by Reserve Bank of India, Company is a Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Company because asset size of the Company is less than Rs. 500 Crore.

Concentration of single/group exposure norms is not applicable to the Company since the Company is a non- systemic NBFC Company.

12.The Board of Directors of the Company on 11th February, 2013 has decided to convert the company in Core Investment Company (CIC). The Necessary Correspondence is being pursued to the Reserve Bank of India (RBI).

MAHENDER KUMAR GOEL

Executive Director & CEO (DIN 00041866)

RAJINDER PARKASH JINDAL

Director

(DIN 00004594)

M.P. GUPTA

Chief Financial Officer

BHARTENDU HARIT

Company Secretary

Place : Hisar

Date : 29th May, 2015