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.