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Notes to Accounts of Can Fin Homes Ltd.

Mar 31, 2016

1.1 During the previous year the Company has allotted 61,34,992 Equity Shares of the face value of Rs.10/- each for cash at a price of Rs.450/- each (inclusive of a premium of Rs.440/- per share) on Rights basis on March 9, 15 and the allotment of 10,583 equity shares are kept in abeyance pending receipt of final order by the Hon''ble High Court of Kerala.

1.2 Terms and Rights attached to Equity Shares: The Company has one class of Equity shares having a face value of Rs.10/- per share and each shareholder is eligible for one vote per share held. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholdings.

2.1 Special Reserve has been created over the years in terms of Income Tax Act 1961, out of the distributable Profits of the Company.

2.2 As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profits every year to a reserve before any dividend is declared. For this purpose, any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible Transfer U/S 29C of the NHB Act, 1987 also. The Company has transferred a sum of Rs.5,500 Lakh (previous year Rs.2,850 Lakh) to Special Reserve which is interms of Section 36(1)(viii) of the Income Tax Act, 1961 and 3,200 Lakh (previous year Rs.1,800 Lakh) to Additional Reserve U/S 29C of the NHB Act, 1987 during the FY 2015-16.

2.3 Vide Circular NHB(ND)/DRS/Pol.62/2014 dated May 27, 2014, the National Housing Bank (NHB) had directed Housing Finance Companies (HFCs) to provide for deferred tax liability in respect of the balance in the "Special Reserve" created under section 36(1) (viii) of the Income Tax Act, 1961 as on March 31, 14 and permitted to adjust the same from Retained Earnings. Further, vide Circular NHB(ND)/DRS/Pol.65/2014 dated August 22, 2014, NHB has permitted HFCs to adjust the Deferred Tax Liability in a phased manner, over a period of three years in the ratio of 25:25:50 starting from FY 2014-15. Accordingly the Company has to adjust the DTL of Rs.7,399.96 Lakh in three years. In the current year the Company has transferred Rs.1,850.00 Lakh (previous year Rs.1,850 Lakh) from the General Reserve to DTL on The Special Reserve outstanding as on March 31, 14.

2.4 Further, Deferred Tax Liability (net) of Rs.1,675.56 (previous year Rs.797.91 Lakh) is charged off to the Statement of Profit & Loss, on account of various components of assets & liabilities including Special Reserve appropriated during the current year.

2.5 The Company has in the previous year reworked the useful life on various Fixed Assets as prescribed in Part C of Schedule II of the Companies Act, 2013. In respect of those assets whose remaining useful life as on April 1, 14 was NIL, the same had been adjusted to the General Reserve as prescribed under 7(b) to the notes of the said Schedule II of the Companies Act, 2013.

2.6 The Company has in the current year recommended a Dividend of Rs.10/- on the Equity Shares of the face value of Rs.10/- each.

2.7 Presentation of Reserve Fund as per NHB''s policy circular reference NHB(ND)/ DRS/ Pol.Circular.61/ 2013-14 dated April 7, 2014:

3.1 The borrowings from National Housing Bank, HUDCO, Canara Bank, HDFC Bank, Bank of Baroda, Kotak Mahindra Bank, Federal Bank, Deutsche Bank and State Bank of India are secured by way of specific charge on book debts, outstanding, receivables, etc.,/ promissory notes and / or a negative lien on assets of the Company. The tenure of the Long term borrowings are between 2-15 years and that of short term borrowings is less than 1 year.

3.2 During the year the Company has issued Secured Redeemable Non-Convertible Non-Cumulative Taxable Debentures worth Rs.1,54,000 Lakh (previous year Rs.30,000 Lakh) through private placement totaling to Rs.2,09,000 Lakh. These debentures are secured by way of floating charge on the assets i.e., loan receivables specifically earmarked for the purpose. The debentures to the extent of Rs.25,000 Lakh (raised in the year 2013-14) are secured by way of floating charge on the assets i.e., loan receivables specifically earmarked for the purpose and also by mortgage of an immovable property (an apartment located at Kodigehalli, Hebbal, Bengaluru) in favour of the Debenture Trustees.

3.3 Further, the Company has issued Unsecured Debentures in the nature of Tier II Bonds worth NIL (previous year Rs.10,000 Lakh) for a term of 10 years through private placement. These Debentures are subordinated to present and future senior indebtedness of the Company and qualify as Tier II Capital under the National Housing Bank (NHB) guidelines for assessing capital adequacy. Based on the balance term to maturity as at March 31, 2016, 100% of the book value of the subordinated debt is considered as Tier II Capital for the purpose of Capital Adequacy computation.

3.4 As per the Directions of the National Housing Bank, the Company has created floating charge on Statutory Liquid Assets (Investments in Govt. Securities and Deposits in Commercial Banks) in favour of the Trustees of the depositors in a manner prescribed by the National Housing Bank in terms of sub-sections (1) & (2) of section 29B of the NHB Act, 1987.

4.1 The Overdraft account with related party includes Rs.8,980.76 Lakh (previous year Rs.5,312.48 Lakh) being the cheques issued towards disbursements to borrowers and towards expenses but not encashed as on March 31, 2016.

4.2 The Company has issued Commercial Paper at a discount to the face value and the discount is amortised for the current year to the extent accrued and the unamortised amount of Rsm3,863.46 Lakh (previous year Rs.2,929.13 Lakh) is shown under Current Asset.

4.3 Other Liabilities include Nil (Previous Year Nil) payable to "Suppliers" registered under The Micro, Small & Medium Enterprises Development Act 2006. No interest has been paid by the company during the year to the "suppliers" covered under The Micro, Small & Medium Enterprises Development Act 2006. The above information takes into account only those suppliers who have responded to inquiries made by the company for this purpose.

4.4 As required under Section 125 of the Companies Act, 2013, the Company has transferred Rs.3.62 Lakh (Previous Year Rs.19.43 Lakh) to Investor Education and Protection Fund (IEPF) during the year as of March 31, 2016, except to the extent of Rs.21.41 Lakh (previous year Rs.5.51 Lakh) in respect of claims that are disputed. As of March 31, 2016, no amount was due for transfer to the IEPF.

4.5 Provision for Expenses includes provision made for interest on NHB borrowings of Rs.7,025.46 Lakh (previous year Rs.NIL) and interest on Debentures of Rs.8,544.83 Lakh (previous year Rs.1,333.95 Lakh).

5.1 Loans and installments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and /or

(b) Other securities, assignment of life insurance policies and/or

(c) Bank guarantees, company guarantees or personal Guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

5.2 Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2016. Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs.935.73 Lakh (Previous year Rs.758.38 Lakh) against which the company, by way of prudence and abundant caution has maintained cumulative provision of Rs.1,975.73 Lakh (Previous year Rs.1,435.19 Lakh).

6.1 Other Advances includes unamortised discount on Commercial Paper (CP) amounting to Rs.3,863.46 Lakh (previous year Rs.2,929.13 Lakh) and Advance Taxes paid (net of provisions) Rs.8,464.16 Lakh (previous year Rs.4,906.04 Lakh).

7.1 Employee Benefit Expenses include Rs.407.50 Lakh (Previous Year Rs.215.90 Lakh) towards provision made in respect of Gratuity, accumulated leave salary (PL encashment), Statutory Provident Fund and Leave Travel Assistance which is in the nature of Long Term Employee Benefits and has been actuarially determined as per the Accounting Standard on Employee Benefits (AS 15).

8.1 The Company has entered into lease cum licence agreement with M/s Encore Theme Technologies Pvt. Ltd., for implementation of Integrated Business Suit (IBS) software. The expenditure incurred in this regard amounting to Rs.277.87 Lakh (Previous Year Rs.239.08 Lakh) is charged off to the P & L account under Professional fees – IBS.

9. The Company has provided 100% provision for Non-Performing assets. Additional Provision provided in the current year is Rs.540.53 Lakh (previous year Rs.224.77 Lakh).

10. Disclosure required as per NHB

The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dt. October 11, 2010 issued by the National Housing bank.

11. Disclosure on Employee Benefits – AS 15 Revised

Gratuity is an Employee Benefit payable on retirement / superannuation / resignation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/Employee is entitled to 30 days of PL every year, which can be accumulated upto a max of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit, which an Officer/Employee is entitled to 15 days in a year, which can be accumulated upto a maximum of 270 days.

Leave Fare Concession is an employee benefit wherein all confirmed Employees/Officers are entitled once in two years

12. Segment Reporting – There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the company''s primary business is of housing finance.

13. The transactions with related parties as per Accounting Standard 18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India and as required under the Listing Agreement with Stock Exchanges are furnished below:

14. The National Housing Bank has levied penalty of Rs.NIL/- (previous year Rs.2,000/-) for a single instance of delayed submission of one Statutory Return.

15. There were no adverse comments on the company by the National Housing Bank on Regulatory compliance, which requires disclosure.

16. The Company has constituted Corporate Social Responsibility (CSR) Committee to prescribe CSR policies and its implementation as per the section 135 of Companies Act, 2013. The CSR policy has been approved by the Committee on January 19, 2015 and the Board of Directors on January 20, 2015 and the same is already uploaded in the Company''s website. The total amount to be spent under the CSR for the FY15-16 is to the extent of Rs.372.00 Lakh (including the unspent amount of Rs.158.90 Lakh for FY 14-15). The Company has so far spent Rs.108.72 Lakh (previous year Rs. 3.10Lakh), during the year. The balance unspent amount of Rs.263.28 Lakh (previous year Rs.158.90 Lakh), will be carried forward to FY 16-17.

17. The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2010.

18. Previous year figures have been rearranged / regrouped wherever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2015

1. During the year the Company has allotted 61,34,992 Equity Shares of Rs. 10/- each for cash at a price of Rs. 450/- each (inclusive of a premium of Rs. 440/- per share) on Rights basis during March 2015 and the allotment of 10,583 equity shares are kept in abeyance pending receipt of final order by the Hon''ble High Court of Kerala.

2. Special Reserve has been created over the years in terms of Income Tax Act 1961, out of the distributable Profits of the Company.

3. As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profits every year to a reserve before any dividend is declared. For this purpose, any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible Transfer U/S 29C of the NHB Act, 1987 also. The Company has transferred a sum of Rs. 2,850 lakh (previous year Rs. 2,500 lakh) to Special Reserve which is in terms of Section 36(1)(viii) of the Income Tax Act, 1961 and Rs. 1,800 lakh (previous year Rs. 1,600 lakh) to Additional Reserve U/S 29C of the NHB Act, 1987 during the FY 2014-15.

4. Vide Circular NHB(ND)/DRS/Pol.62/2014 dated May 27, 2014, the National Housing Bank (NHB) had directed Housing Finance Companies (HFCs) to provide for deferred tax liability in respect of the balance in the "Special Reserve" created under section 36(1)(viii) of the Income Tax Act, 1961 as on 31/03/14 and permitted to adjust the same from Retained Earnings. Further, vide Circular NHB(ND)/DRS/Pol.65/2014 dated August 22, 2014, NHB has permitted HFCs to adjust the Deferred Tax Liability in a phased manner, over a period of three years in the ratio of 25:25:50 starting from FY 2014-15. Accordingly the Company has to adjust the DTL of Rs. 7399.96 lakh in three years. The Company has transferred Rs. 1850.00 lakh in the current year from the General Reserve to DTL on the Special Reserve outstanding as on 31/03/14.

5. Further, Deferred Tax Liability of Rs. 797.91 lakh (previous year Rs. 1 lakh) is charged off to the Statement of Profit & Loss, on account of Special Reserve appropriated during the current year.

6. The Company has reworked the useful life on various Fixed Assets as prescribed in Part C of Schedule II of the Companies Act, 2013. In respect of those assets whose remaining useful life as on 01/04/14 is NIL, the same has been adjusted to the General Reserve as prescribed under 7(b) to the notes of the said Schedule II of the Companies Act, 2013.

7. The borrowings from National Housing Bank, Canara Bank, HDFC Bank, Bank of Baroda, Kotak Mahindra Bank Federal Bank and Deutsche Bank are secured by way of specific charge on book debts, outstanding, receivables, etc.,/ promissory notes and / or a negative lien on assets of the Company. The tenure of the Long term borrowings are between 2-15 years and that of short term borrowings is less than 1 year.

8. During the year the Company has issued Secured Redeemable Non-Convertible Non-Cumulative Taxable Debentures worth Rs. 30,000 lakh (previous year Rs. 25,000 lakh) through private placement totalling to Rs. 55,000 lakh. These debentures are secured by way of floating charge on the assets i.e., loan receivables specifically earmarked for the purpose. The debentures to the extent of Rs. 25000 lakhs (raised in the previous year) are secured by way of floating charge on the assets i.e., loan receivables specifically earmarked for the purpose and also by mortgage of an immovable property (an apartment located at Kodigehalli, Hebbal, Bangalore) in favour of the Debenture Trustees.

9. Further, the Company has also issued Unsecured Debentures in the nature of Tier II Bonds worth Rs. 10,000 lakh (previous year NIL) for a term of 10 years through private placement. These Debentures are subordinated to present and future senior indebtedness of the Company and qualify as Tier II Capital under the National Housing Bank (NHB) guidelines for assessing capital adequacy. Based on the balance term to maturity as at March 31, 2015, 100% of the book value of the subordinated debt is considered as Tier II Capital for the purpose of Capital Adequacy computation.

10. As per the Directions of the National Housing Bank, the Company has created floating charge on Statutory Liquid Assets (Investments in Govt. Securities and Deposits in Commercial Banks) in favour of the Trustees of the depositors in a manner prescribed by the National Housing Bank in terms of sub-sections (1) & (2) of section 29B of the NHB Act, 1987.

11. The Overdraft account with related party includes Rs. 5,312.48 lakh (previous year Rs. 4,164.34 lakh) being the cheques issued towards disbursements to borrowers and towards expenses but not encashed as on 31/03/15.

12. The Company has issued Commercial Paper at a discount to the face value and the discount is amortised for the current year to the extent accrued and the unamortised amount of Rs. 2,929.13 lakh (previous year Nil) is shown under Current Asset.

13. Other Liabilities include Rs. Nil (Previous Year Rs. Nil) payable to "Suppliers" registered under The Micro, Small & Medium Enterprises Development Act 2006. No interest has been paid by the company during the year to the "suppliers" covered under The Micro, Small & Medium Enterprises Development Act 2006. The above information takes into account only those suppliers who have responded to inquiries made by the company for this purpose.

14. As required under Section 125 of the Companies Act, 2013, the Company has transferred H19.43 lakh (Previous Year H14.46 lakh) to Investor Education and Protection Fund (IEPF) during the year as of March 31, 2015, except to the extent of H5.51 lakh (previous year H5.79 lakh) in respect of claims that are disputed. As of March 31, 2015, no amount was due for transfer to the IEPF.

15. Provision for Expenses includes provision made for interest on NHB borrowings of Rs. NIL (previous year H51.41 cr), interest on Canara Bank borrowings of Rs. NIL (previous year H18.79 cr) and interest on Debentures of H13.34 cr (previous year H5.12 cr).

16. DEFERRED TAX ASSET

In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, adjustment to the deferred tax asset of Rs. 797.91 Lakh {Previous year Rs. 1 lakh} has been made and is adjusted against provision for tax for the current year. The tax effects of significant timing (temporary) differences that resulted in deferred tax assets and liabilities and description of the financial statement items are as follows:

17. Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Bank guarantees, company guarantees or personal Guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

18. The accounts where the tenure of repayment was extended on 30/1 1/2013, upon review, the Company has classified such accounts as on 31/03/2015 as Standard Assets in respect of Loan accounts having satisfactory performance of one year and where the overdues are less than 90 days. In respect of loan accounts where the overdues are more than 90 days, they have been classified as NPA.

19. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2015. Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs. 758.38 lakh (Previous year Rs. 658.65 lakh) against which the company, by way of prudence and abundant caution has maintained cumulative provision of Rs. 1435.19 lakh(Previous year Rs. 1210.42 lakh).

20. As per the National Housing Bank Circulars NHB.HFC.DIR.4/CMD/2012 dated January 19, 2012 & NHB.HFC.DIR.9 /CMD/2013 dated September 6, 2013, in addition to the provision for non performing assets, all housing finance companies are required to carry a general provision (i) at the rate of 1% of Standard Assets in respect of Commercial Real Estates other than Residential

21. contingent liabilities

(Rs. in Lakh)

Nature As of As of Risk involved of 31.03. 31.03. claims 2015 2014

Disputed 761.16 927.55 1. The Income Tax Appeals filed by Income the Department for the Asst.Years 1996-97 Tax to 1999-2000 have been dismissed by matters the Hon''ble High Court of Karnataka under and allowed in favour of the Company. appeal: The Department has filed two separate appeals before the Hon''ble Supreme Court of India for the Asst. Year 1996- 97 which has since been dismissed. 2. The appeals filed by the Company for the Asst. Year 2006-07 and 2007- 08 were dismissed by the 2nd appellate authority and the Company has preferred appeals before the Hon''ble High Court of Karnataka which are admitted and yet to be heard. The alleged demand for the Asst. Year 2006-07 (under appeal) has been recovered by the Department to the extent of Rs. 535 lakh out of the refunds determined to the Company. The alleged demand for the Asst. Year 2007- 08 (under appeal) amounting to Rs.448.13 lakh towards the alleged Income Tax and interest, is continued to be shown as such under disputed Tax.

3. An amount of Rs. 16.44 lakh demanded for the Asst. Year 2011-12 continues to be shown under disputed tax, pending receipt of rectification orders against which the Company has determined a liability of Rs. 1.97 lakh to be adjusted against the refund due to the Company.

Claims 4.66 3.16 1. There are four cases in Consumer made by Court and one case in High Court borrowers pending where compensation is of the sought against the Company. company before various Consumer Forums.

22. The Company has entered into lease cum licence agreement with M/s Theme Encore Ltd., for implementation of Integrated Business Suite (IBS) software. The expenditure incurred in this regard amounting to H239.08 lakh (Previous Year H193.04 lakh) is charged off to the P & L account under Professional fees - IBS.

The Company has provided 100% provision for Non-Performing assets. Additional Provision provided in the current year is H224.77 lakh (previous year Rs. Nil) and withdrawal of excess provision in the current year Rs. NIL (previous year H355.69 lakh)

Rs. 26 Disclosure required as per NHB

The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-1 1 dt. October 11, 2010 issued by the National Housing bank.

23. Disclosure on Employee Benefits - AS 15 Revised

Gratuity is an Employee Benefit payable on retirement / superannuation / resignation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/Employee is entitled to 30 days of PL every year, which can be accumulated upto a max of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit, which an Officer/Employee is entitled to 15 days in a year, which can be accumulated upto a maximum of 270 days.

Leave Fare Concession is an employee benefit wherein all confirmed Employees/Officers are entitled once in two years.

Segment Reporting - There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the company''s primary business is of housing finance.

(B) Key Management Personnel:

Shri C.Ilango - Managing Director

Shri K.S.Sathyaprakash - Company Secretary upto 31/03/15

Shri Atanu Bagchi - Assistant General Manager & Chief Financial Officer (CFO)

Smt. Veena G Kamath - Company Secretary w.e.f. 01/04/15

The National Housing Bank has levied penalty of Rs. 2000/- (previous year Nil) for a single instance of delayed submission of one Statutory Return.

The adverse comments on the company made in writing by the National Housing Bank on Regulatory compliance, which requires disclosure have been disclosed wherever required.

The Company has appointed one woman director from 22/09/2014 in compliance to section 149 of the Companies Act, 2013.

The Company has constituted Corporate Social Responsibility (CSR) Committee to prescribe CSR policies and its implementation as per the section 135 of Companies Act, 2013. The CSR policy has been approved by the Committee on 19/01/15 and the Board of Directors on 20/01/15 and the same is already uploaded in the Company''s website. The total amount to be spent under the CSR for the F.Y. 2014-15 is to the extent of Rs. 162 lakh (previous year Nil), out of which the Company has so far spent Rs. 3.10 lakh during the year. The balance unspent amount of Rs. 158.90 lakh will be carried forward to F.Y. 2015-16.

The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2010.

Previous year figures have been rearranged/regrouped wherever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2014

1. Special Reserve has been created over the years in terms of Income Tax Act 1961, out of the distributable Profits of the Company.

2. As per Section 29C of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profits every year to a reserve before any dividend is declared. For this purpose, any Special Reserve created by the Company under Section 36(1) (viii) of the Income Tax Act, 1961 is considered to be an eligible Transfer U/S 29C of the NHB Act, 1987 also. The Company has hitherto transferred a sum of Rs. 19,871 lakh to Special Reserve which is in terms of Section 36(1)(viii) of the Income Tax Act, 1961 and Rs. 1,100 lakh to Additional Reserve created during 2012-13 U/S 29C of the NHB Act, 1987. During the FY 2013-14, Company has transferred a sum of Rs. 2,500 lakh to the Special Reserve and Rs.1,600 lakh to the Additional Reserve.

3. Presentation of Reserve Fund as per NHB''s policy circular reference NHB(ND)/ DRS/ Pol.Circular.61/ 2013-14 dated April 7, 2014;

4. The borrowings from National Housing Bank, Canara Bank, HDFC Bank and Bank of Baroda are secured byway of specific charge on book debts, outstanding, receivables, etc.,/ promissory notes and / or a negative lien on assets of the Company. The tenure of the Long term borrowings are between 2-15 years and that of short term borrowings is less than 1 year.

5. During the year the Company has issued Secured Redeemable Non-Convertible Non-Cumulative Taxable Debentures worth Rs. 250 cr, repayable after three years with yearly fixed interest of 10.05%, through private placement. These debentures are secured by negative lien on the assets of the Company and immovable property - an apartment located at Kodigehalli, Hebbal, Bangalore.

6. As per the Directions of the National Housing Bank, the Company has created floating charge on Investments

in Govt. Securities and Deposits in Commercial Banks in favour of depositors in a manner prescribed by the National Housing Bank.

7. Other Liabilities include Rs. Nil (Previous Year Rs. Nil) payable to "Suppliers" registered under The Micro, Small S-Medium Enterprises Development Act 2006. No interest has been paid by the company during the year to the "suppliers" covered under The Micro, Small S-Medium Enterprises Development Act 2006. The above information takes into account only those suppliers who have responded to inquiries made by the company for this purpose.

8. As required under Section 205C of the Companies Act, 1956, the Company has transferred Rs. 14.46 lakh (Previous Year Rs. 6 lakh) to Investor Education and Protection Fund (IEPF) during the year as of March 31, 2014.

9. Provision for Expenses includes provision made for interest on NHB borrowings of Rs. 51.41 cr (previous year Rs. 37.57 cr), interest on Canara Bank borrowings of Rs. 18.79 cr (previous year Rs. 12.92 cr), interest on Debentures of Rs.5.12 cr (previous year NIL) and Service Tax liability under Rule 6(3B) of Cenvat Credit Rules, 2004 amounting to Rs. 0.59 cr (previous year NIL).

10. Loans and installments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal Guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

11. The Company has extended the repayment period of all individual and rural housing loans by two years uniformly on 1st November 2013 (Board approval on 15/08/13) subject to restriction of 70 years age or 30 years tenure whichever is earlier, in line with the guidelines issued by NHB vide their Circular NHB (ND)/ DRS/Pol.55/2012-13 dated April 16, 2013 and such extension is not treated as renegotiated or rescheduled account for the purpose of income recognition and asset classification norms.

12. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2014.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs. 658.65 lakh (Previous year Rs. 893.97 lakh) against which the company, by way of prudence and abundant caution has maintained cumulative provision of Rs. 1210.42 lakh(Previous year Rs. 1566.11 lakh).

13. The Company has entered into lease cum licence agreement with M/s Theme Encore Ltd., for implementation of Integrated Business Suit (IBS) software. The expenditure incurred in this regard amounting to Rs. 193.04 lakhs (Previous Year Rs. 99.88 lakhs towards partial implementation) is charged off to the P S-L account under Professional fees - IBS.

14. The Company has provided for 100% provision for Non-Performing assets, a sum of Rs. 355.69 Lakhs (Previous Year Rs. 823.81 Lakhs) representing excess provision has been withdrawn S-credited to Profit S-Loss Account.

15. Disclosure on Employee Benefits -AS 15 Revised

Gratuity is an Employee Benefit payable on retirement / superannuation / resignation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/Employee is entitled to 30 days of PL every year, which can be accumulated up to a max of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit, which an Officer/Employee is entitled to 15 days in a year, which can be accumulated up to a maximum of 270 days.

Leave Fare Concession is an employee benefit wherein all confirmed Employees/Officers are entitled once in two years.

16. Segment Reporting - There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the company''s primary business is of housing finance.

(B) Key Management Personnel:

Sri C.llango - Managing Director (From 29/04/11)

17. There are no penalties levied on the company by the National Housing Bank.

18. There are no adverse comments on the company made in writing by the National Housing Bank on Regulatory compliance, which requires disclosure.

19. The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2001.

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


Mar 31, 2013

1.1 Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Government guarantees, Bank guarantees, Company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

1.2 Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2013.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs. 894 Lakhs (Previous year Rs. 1340 Lakhs) against which the company, by way of prudence and abundant caution has maintained cumulative provision of Rs.1566 Lakhs (Previous year Rs. 2389 Lakhs).

1.3 As per the directions of NHB vide their letter – NHB (ND)/ DRS / Pol No. 45/2011-2012 dated January 19, 2012, the provision for Standard Assets in respect of commercial real estates is required to be at 1.00% and for other Standard Assets is required to be made at 0.40%. Accordingly the Company has made provision for Standard Assets as under.

2.1) Miscellaneous Expenses include provision for wealth Tax to extent of Rs.0.40 lakhs (Previous Year nil)

2.2) The Company has entered into lease cum licence agreement with M/s Theme Encore Ltd., for implementation of Integrated Business Suit (IBS) software. The expenditure incurred in this regard amounting to Rs. 99.88 Lakhs is charged off to the P & L account under Profession fees – IBS.

3. Disclosure on Employee Benefits – AS 15 Revised

Gratuity is an Employee Benefit payable on retirement / superannuation / resignation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/Employee is entitled to 30 days of PL every year, which can be accumulated upto a maximum of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit, which an Officer/Employee is entitled to 15 days in a year, which can be accumulated upto a maximum of 270 days.

Leave Fare Concession is an employee benefit wherein all confirmed Employees/Officers are entitled once in two years.

4. Segment Reporting – There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the Company''s primary business is of housing finance.

5. The transactions with related parties as per Accounting Standard 18 "Related Party Disclosures” issued by the Institute of Chartered Accountants of India and as required under the Listing Agreement with Stock Exchanges are furnished below:

(B) Key Management Personnel:

Mr. C.Ilango - Managing Director (From 29/04/11)

6. There are no penalties levied on the Company by the National Housing Bank.

7. There are no adverse comments on the Company made in writing by the National Housing Bank on Regulatory compliance, which requires disclosure.

8. The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2001.

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


Mar 31, 2012

1. Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. Instalments Due from Borrowers (net of interest suspense) include RsNil (Previous year Rs2,07,05,775/-), whicn is outstanding for over six months on account of conversion of housing loan accounts from Annual Diminishing balance method to daily diminishing balance method.

3. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2012.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs 13.40 crore (Previous year Rs11.30 crore) against which the company, by way of prudence and abundant caution has maintained cumulative provision of Rs 19.01 crore (Previous year Rs 23.48 crore).

After making 100% provision for non-performing assets, a sum of Rs3.61 crore representing the excess provision is withdrawn and credited to Profit S'' Loss account.

4. The company has securitised till date, housing loans to the extent of Rs212,88,14,120/- (Previous year Rs212,88,14,120/-) consisting of Class A PTCs of Rs157,48,69,266/-, which is subscribed by various Banks/ Financial Institutions and Class B PTCs of Rs55,39,44,854/-, which is held by the Company. The total securitised assets outstanding as on date is TNil (Previous year Rs3,92,18,489/-) consisting of Class A PTCs of RsNil (Previous year Rs85,10,079/-) and Class B PTCs of RsNil (Previous year Rs3,07,08,410/-).

5. Particulars of Provision for Standard Assets - 2011 -12.

As per the directions of NHB vide their letter - NHB/HFC.DIR/3/CMD/2011 dated August 05, 2011, the provision for Standard Assets is required to be made at 0.40%. (Previous year the provision was required for Standard Assets - Non Housing Loans only). Accordingly the Company has made provision for Standard Assets as under.

6. Creation of Floating Charge in favour of Public deposits.

As per the Directions of the National Housing Bank, the Company has created floating charge on Investments in Govt. Securities and Deposits in Commercial Banks in favour of depositors in a manner prescribed by the National Housing Bank.

7. During the year bad debts written off amounting to Rs2,80,94,105/-. (Previous year RsNil) are included in other Expenses for which full provision was existing in the books of the Company.

8. Disclosure on Employee Benefits - AS 15 Revised

Gratuity is an Employee Benefit payable on retirement/superannuation/resignation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/Employee is entitled to 30 days of PL every year, which can be accumulated upto a maximum of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit, which an Officer/Employee is entitled to 15 days in a year, which can be accumulated upto a maximum of 270 days.

Leave Fare Concession is an employee benefit wherein all confirmed Employees/Officers are entitled once in two years.

9. In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, adjustment to the deferred tax asset of 8,42,000/- (Previous year Rs75,07,000/-) has been made and is adjusted against provision for tax for the current year.

10. Segment Reporting - There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the company''s primary business is of housing finance.

(B) KEY MANAGEMENT PERSONNEL:

Dr.K.K.Deb - Managing Director (upto 29.04.2011)

Mr.C.iiango - Managing Director (From 29.04.2011)

11. There are no penalties levied on the Company by the National Housing Bank.

12. There are no adverse comments on the Company made in writing by the National Housing Bank on Regulatory compliance, which requires disclosure.

13. The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2001.

14. During the year the Company has changed the policy of accounting for penal interest from cash system to accrual system. Had the Company followed the cash system, the profit for the year would have been lower by Rs1.73 crore.

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


Mar 31, 2011

1. Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. The company has securitised till date, housing loans to the extent of Rs.212,88,14,120/- (Previous year Rs.212,88,14,120/-) consisting of Class A PTCs of Rs.157,48,69,266/-, which is subscribed by various banks/ Financial Institutions and Class B PTCs of Rs.55,39,44,854/-, which is held by the company. The total securitised assets outstanding as on date is Rs.3,92,18,489/- (Previous year Rs.6,90,20,084/-) consisting of Class A PTCs of Rs. 85,10,079/- (Previous year Rs.3,31,51,448/-) and Class B PTCs of Rs.3,07,08,410/- (Previous year Rs.3,58,68,636/-)

3. Deposit with banks includes Rs.0.39 crore (Previous year Rs.0.39 crore) given as collateral security for Mortgage Backed Securities.

4. Net Profit on sale of fixed assets amounting to Rs.60, 364/- (Profit) is included under other income during the current year. (Previous year Rs 33,327 /- Loss was shown under Miscellaneous Expenses.). Other income also includes Bad debts recovered Rs. 7,16,531/- (previous year NIL) .

5. Instalments Due from Borrowers (net of interest suspense) include Rs.2,07,05,775/ - (Previous year Rs.1,34,15,863 /-), which is outstanding for over six months.

6. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2011.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs.11.30 Crore (Previous year Rs.10.29 crore) against which the company, by way of prudence and abundant caution has maintained cumulative provision of Rs 23.48 Crore (Previous year Rs.22.46 Crore)

7. Particulars of Provision for Standard Assets- Non Housing Loans 2010-11.

As per the directions of NHB vide their letter NHB (ND)/DRS/DIR-18-07/1336/2007 dated 27.03.2007, the provision for Standard Assets – Non-Housing Loans is required to be made at 0.4% before 31st December 2007. Accordingly the Company has made provision for Standard assets on Non Housing loans as under.

8. Creation of Floating Charge in favour of Public deposits.

As per the Directions of the National Housing Bank, the Company has created floating charge on Investments in Govt. Securities and Deposits in Commercial Banks in favour of depositors in a manner prescribed by the National Housing Bank.

9. During the year, no bad debts were written off. (Previous year Bad debts written off amounting to Rs.61, 69,997/- were included in Miscellaneous Expenses).

10. In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, adjustment to the deferred tax asset of Rs.75,07,000/- (Previous year Rs.60,00,000/-) has been made and is adjusted against provision for tax for the current year.

11. Segment Reporting – There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the company''s primary business is of housing finance.

12. The transactions with related parties as per Accounting Standard 18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India and as required under the Listing Agreement with Stock Exchanges, are furnished below:

(a) related Parties:

Canara Bank Sponsor Bank

Canbank Factors Ltd.

Canbank Computer Services Ltd.

Canara Robeco Asset Management Services Ltd.

Canbank Financial Services Ltd.

Subsidiaries of Canara Bank

Canbank Venture Capital Fund

Canara Bank Securities Ltd

Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

(B) Key Management Personnel:

Mrs Mythili Krishnamurthy – Managing Director (up to 15/06/2010)

Dr. K .K. Deb – Managing Director (From 15/06/2010)

13. There are no penalties levied on the company by the National Housing Bank.

14. There are no adverse comments on the company made in writing by the National Housing Bank on Regulatory compliance, which requires disclosure.

15. The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2001.

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


Mar 31, 2010

1. Loans and instalments due from borrowers are secured, partly secured or otherwise by :

(a) Equitable mortgage of property and / or

(b) Other securities, assignment of life insurance policies and / or

(c) Government guarantees, Bank guarantees, Company guarantees or Personal guarantees and / or

(d) Negative lien and / or

(e) Undertaking to create a security.

2. The Company has securitised till date, housing loans to the extent of Rs.212,88,14,120/- (Previous year Rs.212,88,14,120/-) consisting of Class A PTCs of Rs.157,48,69,266/-, which is subscribed by various banks / Financial Institutions and Class B PTCs of Rs.55,39,44,854/-, which is held by the Company. The total securitised assets outstanding as on date is Rs.6,90,20,084/- (Previous year Rs.18,25,82,769/-) consisting of Class A PTCs of Rs.3,31,51,448/- (Previous year Rs.6,40,49,280/-) and Class B PTCs of Rs.3,58,68,636/- (Previous year Rs.11,85,33,489/-).

3. Deposit with banks include Rs.0.39crore (Previous year Rs.1.92 crore) given as collateral security for Mortgage Backed Securities.

4. Net loss on sale of fixed assets amounting to Rs.33,327/- (loss) is included under Miscellaneous Expenses during the current year. (Previous year Rs.1,53,000/- profit). Other income includes interest received on Income Tax refund Rs.2,73,44,321/- on receipt of orders for various Assessment Years (Previous year - NIL).

5. instalments Due from Borrowers (net of interest suspense) include Rs.1,34,15,863/- (Previous year Rs.1,31,41,991/-), which is outstanding for over six months.

6. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2010.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs.10 .29 crore (Previous year Rs.11.77 crore) against which the Company, by way of prudence and abundant caution has maintained cumulative provision of Rs.22.46 crore (Previous year Rs.23.94 crore).

6. Creation of Floating Charge in favour of Public deposits.

As per the Directions of the National Housing Bank, the Company has created floating charge on Investments in Govt. Securities and Deposits in Commercial Banks in favour of depositors in a manner prescribed by the National Housing Bank.

7. Miscellaneous Expenses includes Net of Bad debts written off Rs.61,69,997/- i.e (Bad Debts Written off Rs.61,75,262/- - Bad Debt Recovery Rs.5,265/-) (Previous year Bad Debts written off is Rs.28,385/-)

8. Claims against the Company not acknowledged as debt:

9. Disclosure on Employee Benefits - AS 15 Revised Gratuity is an Employee Benefit payable on retirement/ superannuation / resignation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/ Employee is entitled to 30 days of PL every year which can be accumulated upto a max of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit which an Officer / Employee is entitled to 15 days in a year.

Leave Fare Concession is an employee benefit wherein all confirmed Employees / Officers are entitled once in two years.

10. Segment Reporting – There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the Company’s primary business is of housing finance.

11. There are no penalties levied on the Company by the National Housins Bank.

12. There are no adverse comments on the Company made in writing by the National Housing Bank on Regulatory compliance, which requires disclosure.

13. The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2001.

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


Mar 31, 2009

1. Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and / or

(b) Other securities, assignment of life insurance policies and / or

(c) Government guarantees, Bank guarantees, Company guarantees or Personal guarantees and / or

(d) Negative lien and / or

(e) Undertaking to create a security.

2. The Company has securitised till date, housing loans to the extent of Rs.212,88,14,120/- (Previous year Rs.212,88,14,120/-) consisting of Class A PTCs of Rs.157,48,69,266/-, which is subscribed by various banks / Financial Institutions and Class B PTCs of Rs.55,39,44,854/-, which is held by the Company. The total securitised assets outstanding as on date is Rs.18,25,82,769./- (Previous year Rs.29,44,04,297/-) consisting of Class A PTCs of Rs.6,40,49,280/- (Previous year Rs.10,73,27,380/-) and Class B PTCs of Rs.11,85,33,489/- (Previous year Rs.18,70,76,917/-).

3. Deposit with banks include Rs.1.92 crores (Previous year Rs.1.92 crores) given as collateral security for Mortgage Backed Securities

4. Net profit on sale of fixed assets amounting to Rs 153000/- is included under other income during the current year. (During the previous year included under Fees and Other Charges amounting to Rs.1191/-).

5. Instalments Due from Borrowers (net of interest suspense) include Rs.1,31,41,991/- (Previous year Rs.2,82,15,725/-), which is outstanding for over six months.

6. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2009.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs.11.77 crores (Previous year Rs.11.00 crores) against which the Company, byway of prudence and abundant caution has maintained cumulative provision of Rs.23.94 crores (Previous year Rs.23.17 crorei).

7. Creation of Floating Charge in favour of Public deposits.

As per the Directions of the National Housing Bank, the Company has created floating charge on Investments in Govt. Securities and Deposits in Commercial Banks in favour of depositors in a manner prescribed by the National Housing Bank.

8. Miscellaneous Expenses includes Bad debts written off Rs.28,385/- (Previous year bad debts written off is Rs.24,89,206/-).

Miscellaneous Expenses also includes Bad Debts recovered Rs.14,91,208/- (Previous year Rs.1,05,167/-)

9. Disclosure on Employee Benefits - AS 15 Revised

Gratuity is an Employee Benefit payable on retirement / superannuation / resisnation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/ Employee is entitled to 30 days of PL every year which can be accumulated upto a max of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit which an Officer / Employee is entitled to 15 days in a year

Leave Fare Concession is an employee benefit wherein all confirmed Employees / Officers are entitled once in two years.

10. There are no reported Micro, Small and Medium Enterprises as defined in the MSME Development Act, 2006 to whom the Company owes Money.

11. There are no amounts payable to any small-scale industrial undertakes.

12. There are no penalities levied on the Company by the National Housing Bank.

13. There are no adverse comments on the Company made in writing by the National Housing Bank on Regulatory compliance, which requires disclosure.

14. The Company has complied with requirements as per Para 29 of the Housing Finance Companies (NHB) Directions 2001.

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


Mar 31, 2008

1. Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, Company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. The Company has securitised till date, housing loans to the extent of Rs.212,88,14,120/- (Previous year Rs.212,88,14,120/-) consisting of Class APTCs of Rs. 157,48,69,266/-, which is subscribed by various banks/ Financial Institutions and Class B PTCs of Rs.55,39,44,854/-, which is held by the Company. The total securitised assets outstanding as on date is Rs.29,44,04,297./- (Previous year Rs.45,60,43,314/-) consisting of Class A PTCs of Rs.10,73,27,380/- (Previous year Rs.20,74,76,878/-) and Class B PTCs of Rs.18,70,76,917I- (Previous year Rs.24,85,66,435/-).

3. Deposit with banks include Rs.1.92 crores (Previous year Rs.1.92 crores) given as collateral security for Mortgage Backed Securities

4. Net profit on sale of fixed assets amounting to Rs 1191/- is included under operating income viz. Fees and Other Charges, (previous year Rs.83,990/- being net profit on sale of fixed assets).

5. Instalments Due from Borrowers (net of interest suspense) include Rs.2,82,15,725-/- (Previous year Rs.83,53,370/-), which is outstanding for over six months.

6. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2008.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs. 11.00 crores (Previous year Rs.9.89 crores) against which the Company, by way of prudence and abundant caution has maintained cumulative provision of Rs.23.17 crores (Previous year Rs.22.07 crores).

7. Creation of Floating Charge in favour of depositors.

As per the Directions of the National Housing Bank, the Company during the current financial year has created floating charge on assets in favour of depositors in a manner prescribed by the National Housing Bank.

8. Miscellaneous Expenses includes Bad debts written off Rs.23,84,039/- net of recovery (Previous year bad debts written off is Rs.11,11,031/-)

9. Disclosure on Employee Benefits - AS 15 Revised

Gratuity is an Employee Benefit payable on retirement/superannuation/resignation on completion of 5 years of service.

Privilege Leave is an employee benefit wherein confirmed Officer/Employee is entitled to 30 days of PL every year which can be accumulated upto a max of 240 days.

Provident Fund is a statutory employee benefit wherein contributions are made by the employee and employer in prescribed proportion.

Sick Leave is a Benefit which an Officer/Employee is entitled to 15 days in a year.

Leave Fare Concession is an employee benefit wherein all confirmed Employees/Officers are entitled once in two years.

10. In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, adjustment to the deferred tax asset of Rs. 1,30,00,000/- (Previous year Rs.31,00,000/-) has been made and is adjusted against provision for tax for the current year.

11. Segment Reporting - There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the Companys primary business is of housing finance.

12. There are no reported Micro, Small and Medium Enterprises as defined in the MSME Development Act, 2006 to whom the Company owes Money.

13. There are no amounts payable to any small-scale industrial undertaking.

14. There are no penalities levied on the Company by the National Housing Bank.

15. There are no adverse comments on the Company made in writing by the National Housing Bank on Regulatory compliance which requires disclosure.

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


Mar 31, 2007

1. Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. The company has securitised till date, housing loans to the extent of Rs.212,88,14,120/- (Previous year Rs.212,88,14,120/-) consisting of Class A PTCs of Rs.157,48,69,266/-, which is subscribed by various banks/ Financial Institutions and Class B PTCs of Rs.55,39,44,854/-, which is held by the company. The total securitised assets outstanding as on date is Rs.45,60,43,314/- (Previous year Rs.65,26,98,847/-) consisting of Class A PTCs of Rs.20,74,76,878/- (Previous year Rs.37,15,74,678/-) and Class B PTCs of Rs.24,85,66,435/- (Previous year Rs.28,11,24,169/-).

3. Deposit with banks include Rs.5.42 crores (Previous year Rs.5.42 crores) given as collateral security for Mortgage Backed Securities Rs.1.92 crores (Previous year Rs.1.92 Crores) and Rs.3r50 Crores pending release of charge against Debentures 2002 series.

4. The company raised Rs.50 crores during the financial year 2001 -2002 by issue of secured, redeemable non-convertible debentures @ 9.30% p.a., payable semi-annually. The debentures were redeemable at par in 3 instalments in the ratio of 30%, 30% and 40% at the end of 5th, 6th and 7th years respectively from the deemed date of allotment, i.e. 18th March 2002. Further, the debentures had a put/call option at the end of 5 years from the deemed date of allotment. Accordingly, the company exercised call option during the year and the entire amount of Rs.50 Crores was redeemed at par.

5. Other income relates to interest received on refund of income tax of Rs. NIL. (Previous year Rs.17,14,883/-). Rs.83,990/- being net profit on sale of fixed assets included under operating income viz. Fees and Other Charges.(previous year Rs.45,573/- being net loss on sale of fixed assets).

6. Instalments Due from Borrowers (net of interest suspense) include Rs.83,53,370/- (Previous year Rs.76,22,479/-), which is outstanding for over six months.

7. Recognition of income and provision for non-performing assets has been made in accordance with the guidelines on prudential norms applicable as of March 31, 2007.

Provision of loans is required to be maintained as per NHB guidelines on prudential norms to the extent of Rs.9.89 Crores (Previous year Rs. 10.09 crores), against which the company, by way of prudence and abundant caution has maintained cumulative provision of Rs.22.07 crores (Previous year Rs.16.76 crores).

8. Miscellaneous Expenses includes Bad debts written off Rs.11,11,031/-(Previous year bad debts recovery Rs. 22,41,516/- net of write off)

9. In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, adjustment to the deferred tax asset of Rs.31,00,000/- (Previous year Rs.6,00,000/-) has been made and is adjusted against provision for tax for the current year.

10. Segment Reporting - There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the companys primary business is of housing finance.

11. There are no amounts payable to any small scale industrial undertaking.

12. There are no penalties levied on the company by the National Housing Bank.

13. There are no adverse comments on the company made in writing by the National Housing Bank on Regulatory compliance which requires disclosure.

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


Mar 31, 2006

1. Recognition of income and provision for non-performing assets have been made in accordance with the guidelines on prudential norms applicable as of March 31, 2006.

Provision of loans is required to be maintained as per NHB guidelines on Prudential norms to the extent of Rs.10.09 crores (Previous year Rs.10.34 crores) against which the company has maintained cumulative provision of Rs.16.76 crores (Previous year Rs.16.34 crores).

An analysis of interest derecognised and utilisation of provision is as under: -

(Rs in lakhs) Particulars Interest suspense Provision For the year For the year For the year For the year 2005-2006 2004-2005 2005-2006 2004-2005

a) Cumulative at the beginning of the year 1102.75 1348.93 1633.80* 1654.72

b) Less: Recovery/ adjustment during the year 631.42 567.61 389.34 373.40

c) Add: Additions made during the year 217.14 321.43 431.59** 352.48*

d) Cumulative at the end of the year (a)-(b)+(c) 688.47 1102.75 1676.05 1633.80

* Including additional provision of Rs.6.00 crores as on 31.03.2004.

** Including additional provision of Rs.0.67 crores as on 31.03.2006.

8. Bad debts recovery of Rs. 22,41,516/- (net of write off) is adjested against Miscellaneous expenditure. (Previous Year written off Rs. 1,98,210/-).

9. Claims against the company not acknowledged as debt;

A) Disputed tax Income tax appeals from the assessment year 1993- matters under 94 to 2003-2004 & Interest Tax appeals made by appeal: the company and the IT department from the assessment year 1996-97 to 2000-2001 are before 0 Incometax 871.76 443.09 various Appellate Athorities and certain appeals. are n) Interest tax 54.46 54.46 heard and orders passed in favour of the company.

926,22,497.55 An amount of Rs.316.50 lakhs (PYRs.316.50 lakhs) comprising of Rs.297.07 lakhs (PY Rs.297.07 lakhs) towards disputed Income Tax and Rs. 19.43 lakhs (PY Rs.19.43 lakhs) towards disputed Interest Tax has been provided in the books.

No provision has been made in respect of the balance amount of Rs.610.12 lakhs (PY Rs.181.05 lakhs) being;

a) Disputed Tax in respect of which Appeals have been already allowed in favour of the Company against which the Department has filed further Appeals-Rs.123.05 lakhs.

b) Disputed Tax in respect of Appeals filed by the Company yet to be heard and Order to be passed but on similar issues the Appeal of the Company have been allowed in Previous Years - Rs.58.00 lakhs

c) Interpretation of the quantum of benefit to be acurred u/s.36(i)(viii) of the Income TaxAct., 1961 of Assessment year 2003-04 of Rs.428.67 Lakhs and which are allowed in earlier years

B) Claims made 3.28 2.97 In most of the cases the company is only a for by borrowers mal party. In some cases the borrowers have of the company not performed their part of the contract. There before various is no liability on the company in these cases and Consumer hence no provision has been made.

Forums.

C) Claims made 7.16 Nil The Company does not recognize this claim as By Exemployees the eligibility criteria laid down by the Management is not met with. However, without prejudice to the rights of the company, and as a matter of abundant precaution, adequate provision has been made in the books.


Mar 31, 2005

1. Loans and instalments due from borrowers are secured/partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities/assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees/company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. The company has securitised till date/housing loans to the extent of Rs.212,88,14/120/- (Previous year Rs.212/88/14,120/-) consisting of Class A PTCs of Rs.1/57/48/69/266/-, which is subscribed by various banks/Financial Institutions and Class B PTCs of Rs.55,39,44,854/- which is held by the company The total securitised assets outstanding as on date is Rs.90/36,90/790/- (Previous year Rs.125/85,47,585/-) consisting of Class A PTCs of Rs.58,29,55,981/- (Previous year Rs.87,52,56/885/-) and Class B PTCs of Rs.32,07,34,809/- (Previous yearRs.38,32,90,700/-).

3. Deposit with banks include Rs.5.42 crores (Previous year Rs.5.42 crores) given as collateral security for debentures and Mortgage Backed Securities (MBS).

4. The company raised Rs.50 crores during the financial year 2001 -2002 by issue of secured/redeemable non convertible debentures @ 9.30% p.a., payable semi-annually The debentures shall be redeemed at par in 3 instalments in the ratio of 30%, 30% and 40% at the end of 5th, 6th and 7th years respectively from the deemed date of allotment of 18th March 2002. Further, the debentures have a put/call option at the end of 5 years from the deemed date of allotment.

5. Other Income include net interest received on refund of income tax/interest tax of Rs.38/38,782/-(Previous year Rs.7/68/326/-) and Rs.72/067/- being net loss on sale of Fixed Assets (Previous year loss Rs.28,611/-).

6. Instalments Duefrom Borrowers (net of interest suspense) include Rs.2,01,58,499/- (Previous year Rs.1,60,42,031/-), which is outstanding for over six months.

7. Recognition of income and provision for non-performing assets have been made in accordance with the guidelines on prudential norms applicable as of March 31, 2005.

NHB has revised Guidelines on Prudential Norms, effective from March 31, 2005 according to which an asset becomes NPA if interest or instalment is overdue for 90 days (180 days as of March 04). Accordingly provision for loans is required to be maintained to the extent of Rs, 10.34 crores (Previous year Rs.10.55 crores) against which the company has maintained cumulative provision of Rs.16.34 crores (Previous year Rs.16.55 crores).

8. Auditorsremuneration

For the year ended For the year ended March 31, 2005 March 31, 2004 Rupees Rupees

Audit Fees (Including Branch Auditors fees) 3,88,785 3,11,040

Other Services (Certificates/ Tax Audit, etc./) 1,75,911 1,70,895

Out of Pocket Expenses 1,53,536 1,50,604

Total 7,18,232 6,32,539

9. Remuneration to Managing Director

For the year ended For the year ended March 31, 2005 March 31, 2004 Rupees Rupees

Salaries etc., 3,71,311 3,60,568

Provident Fund, Gratuity etc., 94,418 96,420

10. Earnings per share has been computed as below:

Profit after tax (Rs. in lakhs) 2112.38 2069.83

No. of shares (in lakhs) (b) 204.85 204.85

Basic earnings per share (a/b) 10.31 10.10

Diluted earnings per share (a/b) 10.31 10.10

11. In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, addition to the deferred tax asset of Rs.35,00,000/- (Previous year Rs.17/00,000/-) has been made and is adjusted against provision for tax for the current year.

The tax effects of significant timing (temporary) differences that resulted in deferred tax assets and liabilities and description of the financial statement items that creates these differences are as follows:

(Rs. in lakhs) Particulars Cumulative as on Cumulative as on 31,3,2005 31,3,2004

Deferred Tax Assets:

Provision for Doubtful debts 259.00 226.00

Provision for Leave Encashment 16.00 12.00

Sub-Total (A) 275.00 238.00

Deferred Tax liability:

Depreciation on Assets 9.00 7.00

Sub-Total (B) 9.00 7.00

Cumulative Deferred Tax Asset 266.00 231.00

12. Particulars of dividend paid to Non-resident shareholders:

Year to which the dividend relates 2003-2004 2002-2003

No of Shareholders 19 16

No of Shares held 27,883 27,750

Gross amount of Dividend (Rupees) 69,708 69,375

13. Segment Reporting - There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the companys primary business is of housing finance.


Mar 31, 2004

1. Loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. The company securitised housing loans during the year to the extent of Rs.64,12,69,566/- (Previous year Rs.85,35,45,592/-) consisting of Class A PTCs of Rs.54,44,82,400/- (Previous year Rs.58,19,09,666/-) which is subscribed by various banks/Financial Institutions and Class B PTCs of Rs.9,67,87,166/-, (Previous year Rs.27,16,35,926/-) which is held by the company. The total securitised assets outstanding as on date is Rs. 125,85,47,585/- (Previous year Rs. 103,70,72,848/-) consisting of Class A PTCs of Rs.87,52,56,885/- (Previous year Rs.67,41,62,072/-) and Class B PTCs of Rs.38,32,90,700/- (Previous year Rs.36,29,10,776/-).

3. Deposit with banks include Rs.5.42 crores (Previous year Rs.5.03 crores) given as collateral security for debentures and Mortgage Backed Securities (MBS).

4. The company raised Rs.50 crores during the financial year 2001-2002 by issue of secured, redeemable non convertible debentures @ 9.30% p.a., payable semi-annually. The debentures shall be redeemed at par in 3 instalments in the ratio of 30%, 30% and 40% at the end of 5th, 6th and 7th years respectively from the deemed date of allotment of 18th March 2002. Further, the debentures have a put/call option at the end of 5 years from the deemed date of allotment.

5. The outstanding, as on the date of Balance Sheet in rupee terms, in respect of term loans availed from Banks and converted to Foreign Currency Loan to Resident Constituents - TL (FCLR-TL) is Rs.153.22 crores (Previous year - Rs. 102.33 crores). Forward contract has been booked in respect of the principal repayment and the interest/premium payable in respect of FCLR loan is recognised over the period of contract.

6. Other Income include net interest received on refund of income tax/interest tax of Rs.7,68,326/- (Previous year Rs.49,11,721/-) and Rs.28,611/- being net loss on sale of Fixed Assets (Previous year loss Rs.1295/-).

7. Instalments Due from Borrowers (net of interest suspense) include Rs.1,60,42,031/- (Previous year Rs.1,60,83,295/-), which is outstanding for over six months.

8. Interest on non-performing assets is to be recognised as per the prudential norms of NHB. Accordingly, an analysis of interest derecognised is as under: -

(Rs in lakhs) Particulars For the year For the year 2003-2004 2002-2003

(a) Cumulative interest derecognised at the beginning of the year 1560.09 1597.95

(b) Less: Recovery/adjustment of interest derecognised during the year 392.30 237.92

(c) Add: Interest derecognised for the current year 181.14 200.06

(d) Cumulative interest derecognised at the end of the year ( a) - (b) + (c) 1348.93 1560.09

9. Provision for non-performing assets have been made in accordance with the guidelines on prudential norms issued by National Housing Bank (NHB) applicable as of March 31, 2004.

NHB has revised Guidelines on Prudential Norms, effective from March 31, 2005 according to which an asset becomes NPA if interest or instalment is overdue for 90 days (180 days as of March 04). Further, an asset, becomes sub-standard/doubtful at a faster rate as per revised norms compared to the prevailing norms which necessitates higher quantum of provision w.e.f. 31.3.2005 as compared to existing norms. As suggested by NHB to strengthen the Balance Sheet and facilitate smooth transition to revised norms, as a prudent measure, an additional provision for housing loans has been made to the extent of Rs.4 crores out of which Rs.3 crores is by withdrawing from General Reserve II. Further, Rs.2 crore additional provision has been made towards loans to Corporate Bodies.

10. Miscellaneous Expenses include Bad debts written off of Rs.86,40,458/- (Previous Year Rs.28,34,760/-) and debenture issue expenses of Rs. Nil (Previous Year-Rs.9,78,110/-).

11. Auditors remuneration For the year ended For the year ended March 31, 2004 March 31, 2003 Rupees Rupees

Audit Fees (Including Branch Auditors fees) 3,11,040 2,89,800

Other Services (Certificates, Tax Audit, etc.,) 1,70,895 1,48,050

Out of Pocket Expenses 1,50,604 1,13,641

Total 6,32,539 5,51,491

12. Remuneration to Managing Director

For the year ended For the year ended March 31, 2004 March 31, 2003 Rupees Rupees

Salaries etc., 3,60,568 3,83,986

Provident Fund, Gratuity etc., 96,420 1,63,835

13. Earnings per share has been computed as below:

Profit after tax (Rs. in lakhs) (a) 2069.83 2158.48

No. of shares (in lakhs) (b) 204.85 204.85

Basic earnings per share (a/b) 10.10 10.54

Diluted earnings per share (a/b) 10.10 10.54

14. In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, addition to the deferred tax asset of Rs. 17,00,000/- (Previous year Rs.33,00,000/-) has been made and is adjusted against provision for tax for the current year.

15. Segment Reporting - There are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) as the companys primary business is of housing finance.

16. The transactions with related parties as per Accounting Standard 18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India and as required under the Listing Agreement with Stock Exchanges, are furnished below:

(A) Related Parties:

Canara Bank - Sponsor Bank

Subsidiaries of Canara Bank

Canbank Factors Ltd.

Canbank Computer Services Ltd,

Canbank Investment Management Services Ltd,

Canbank Financial Services Ltd.

Canbank Venture Capital Fund

Gilt Securities Trading Corporation Ltd.

(B) Key Management Personnel:

Sri.Peter D FCardozo - Managing Director

17. There are no amounts payable to any small scale industrial undertaking.

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


Mar 31, 2003

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. The Company securitised housing loans during the year to the extent of Rs.85,35,45,592/- (Previous year Rs.63,39,98,962/-) consisting of Class A PTCs of Rs.58,19,09,666/- (Previous year Rs.44,84,77,200/-) which is subscribed by various banks/Financial Institutions and Class B PTCs of Rs.27,16,35,926/-, (Previous year Rs.18,55,21,762/-) which is held by the Company The total securitised assets outstanding as on date is Rs.103,70,72,848/- (Previous year Rs.48,32,02,457/-) consisting of Class A PTCs of Rs.67,41,62,072/- (Previous year Rs.32,85,61,149/-) and Class B PTCs of Rs.36,29,10,776/- (Previous year Rs.15,46,41,308/-).

3. The Company raised Rs.50 crores during the financial year 2001-2002 by issue of secured, redeemable non convertible debentures @ 9.30% p.a., payable semi-annually The debentures shall be redeemed after 7 years in the ratio of 30%, 30% and 40% at the end of 5th, 6th and 7th years respectively from the deemed date of allotment of 18th March 2002. Further, the debentures have a put/call option at the end of 5 years from the deemed date of allotment.

4. During the year some of the term loans availed from Banks were converted to Foreign Currency Loan to Resident Constituents - TL (FCLR-TL) and the outstanding, as on the date of Balance Sheet in rupee terms is Rs.102.33 crores (Previous year - Nil). Forward contract has been booked in respect of the principal repayment and the interest/premium payable in respect of FCLR loan is recognised over the period of contract.

5. Other Income include net interest received on refund of income tax/interest tax of Rs.49,11,721/-(Previous year Rs.45,17,476/-) and Rs.1,295/- being net loss on sale of Fixed Assets (Previous year Profit Rs.3,33,869/-).

6. Instalments Due from Borrowers (net of interest suspense) include Rs.1,60,83,295/- (Previous year Rs. 1,64,77,028/-), which is outstanding for over six months.

7. Interest on non-performing assets is to be recognised as per the prudential norms of NHB. Accordingly, an analysis of interest derecognised is as under:-

(Rs in Lakhs) Particulars For the year For the year 2002-2003 2001-2002

(a) Cumulative interest derecognised at the beginning of the year 1597.95 1404.53

(b) less : Recovery/adjustment of interest derecognised during the year 237.92 102.74

(c) Add : Interest derecognised for the current year 200.06 296.16

(d) Cumulative interest derecognised at the end of the year (a) - (b) + (c) 1560.09 1597.95


Mar 31, 2002

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. The company securitised housing loans for the first time during the year to the extent of Rs. 63,39,98,962/- (outstanding as on date of Balance Sheet Rs. 48,32,02,457/-) consisting of Class A PTCs of Rs. 44,84,77,200/- (outstanding as on date of Balance Sheet Rs. 32,85,61,149/-), which is subscribed by various banks/Financial Institutions and Class B PTCs of Rs. 18,55,21,762/- (outstanding as on date of Balance Sheet Rs. 15,46,41,308/-), which is held by the company.

3. The company raised Rs. 50 crores during the year by issue of secured, redeemable non convertible debentures @ 9.30% p. a., payable semi-annually. The debentures shall be redeemed after 7 years in the ratio of 30%, 30% and 40% at the end of 5th, 6th and 7th years respectively from the deemed date of allotment of 18th March 2002. Further, the debentures have a put/call option at the end of 5 years from the deemed date of allotment.

4. Other Income include Rs. 3,33,869/- being Profit on sale of Fixed Assets (Previous year Profit Rs. 12,540/-) and interest on refund of income tax Rs. 45,17,476/- (Previous year Rs. 2,22,238/-).

5. Instalments Due from Borrowers (net of interest suspense) include Rs. 27,89,378/- (Previous year Rs. 37,92,773/-), which is outstanding for over six months.

6. Miscellaneous Expenses include debenture issue expenses of Rs. 18,27,000/- (Previous Year - Nil) and Bad debts written off of Rs. 1,09,91,533/- (Previous Year Rs. 50,23,499/-).

7. As the disputed Income/Interest Tax liability are under various stages of appeal, the company as a measure of abundant precaution has made a provision of Rs. 3,00,00,000 (Previous year - Nil) against a contingent liability of Rs. 4,90,35,560/- (Previous year Rs. 4,48,24,262/-) and no provision has been made for claims against the Company not acknowledged as debt of Rs. 4,18,997/- (previous year Rs. 3,23,649/-).

8. In view of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, a deferred tax asset has been created on the opening balance to the extent of Rs. 1,47,00,000/- which is credited to general reserve. During the year addition to the deferred tax asset of Rs. 34,00,000/- has been made and is adjusted against provision for tax for the current year.


Mar 31, 2001

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

2. Other Income includes Rs.12,540/- being Profit on sale of Fixed Assets (Previous year Profit Rs.1,25,349/-) and interest on refund of income tax Rs.2,22,238/-(Previous year Rs.35,61,180/-).

3. Instalments Due from Borrowers (net of interest suspense) include Rs. 37,92,773/- (Previous year Rs.1,10,93,311/-), which is outstanding for over six months.

4. As Interest Tax has been withdrawn, no provision is required to be made. (Previous year Interest on Housing Loan and other interest income have been determined after adjusting interest tax of Rs. 1,60,00,000/-).

5. Miscellaneous Expenses includes Rs.50,23,499/- being Bad debts written off (Previous Year Rs.16,91,038/-).

9. No provision has been made for disputed Income/Interest Tax liability under appeal Rs.4,48,24,262/- (Previous year Rs.2,72,86,957/-) and for Claims against the Company not acknowledged as debt Rs.3,23,649/- (previous year Rs. 5,89,775/-).

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


Mar 31, 2000

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by :

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

These include : Maximum amount due As at March As at March during the year 31, 2000 31, 1999 Rs. Rs. Rs.

Amount due from Officers of the

Company against housing loans -- -- --

2. Other Income includes Rs. 1,25,349/- being Profit on sale of Fixed Assets (Previous year Profit Rs.35,246/-) and interest on refund of income tax Rs.35,61,180/- (Previous year Rs.5,99,933/-).

3. As per the Prudential Norms prescribed by National Housing Bank, the net interest income of Rs.3,80,25,376/-(Previous year Rs.2,96,99,830/-) has not been recognised and additional provision made of Rs.60,47,739/-(Previous year Rs.1,67,29,478/-) in respect of doubtful debts.

4. Interest on Housing Loans and other interest income have been determined after adjusting Interest Tax of Rs. 1,60,00,000/-(Previous year Rs.1,35,00,000/-).

5. Miscellaneous Expenses includes Rs. 16,91,038/- being Bad debts written off (Previous Year Nil).

6. No provision has been made for disputed Income Tax liability under appeal Rs.2,72,86,957/- (Previous year Rs.2,47,84,200/-) and for Claims against the Company not acknowledged as debt Rs.5,89,775/- (Previous year Rs. 5,48,278/-).


Mar 31, 1999

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by :

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

These include : Maximum amount due As at March As at March during the year 31, 1999 31, 1998 Rupees Rupees Rupees

Amount due from Officers of the Company against housing loans 6,452 - 6,452

2. As per the Prudential Norms prescribed by National Housing Bank, the interest income of Rs.2,96,99,830/- (Previous year Rs.2,99,57,458/-) has not been recognised and additional provision made of Rs.1,67,29,478/- (Previous year Rs.1,47,40,877/-) in respect of doubtful debts.

3. Staff Training and Welfare Expenses includes Rs.23,68,000/- (Previous year Nil) being provision for leave encashment as per the policy of the Company but for which the profit would have been higher by similar amount.

4. No provision has been made for disputed Income Tax liability under appeal Rs.2,47,84,200/- (Previous year Rs.1,56,72,342/-).

5. The Management has identified the Year 2000 issue in respect of various software and hardware used by it and has carried out the remedial measures with adequate resources, maintenance strategy and contingency plan to ensure that the organisation is Y2K complaint and accordingly the problem of Y2K will not vitiate assumption of a going concern.


Mar 31, 1998

1. Housing loans and installments due from borrowers are secured, partly secured or otherwise by :

(a) Equitable mortgage of property and/or (b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or (c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or (d) Negative lien and/or (e) Undertaking to create a security.

2. As per the Prudential Norms prescribed by National Housing Bank, the interest income of Rs. 2,99,57,458/- (Previous year Rs. 76,78,725/-) has not been recognised and additional provision made of Rs. 1,46,99,073/- (Previous year withdrawn Rs. 5,91,047/-) in respect of doubtful debts.


Mar 31, 1997

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

These include:

Maximum amount due As at March As at March during the year 31, 1997 31, 1996 Rupees Rupees Rupees

Amount due from Officers of the Company against housing loans 2,68,231 NIL 2,68,231

2. As per the Prudential Norms prescribed by National Housing Bank, the interest income of Rs. 76,78,725 has not been recognised and excess provision made in earlier years have been withdrawn of Rs. 5,91,047 in respect of doubtful debts. But for this, the profit for the year would have been higher by Rs. 70,87,678.

3. Other Income includes Rs. 13,370 being Loss on sale of Fixed Assets (Previous year Profit Rs. 6,02,517) and Rs. 31,25,019 (Previous Year Rs. Nil) being interest on refund of income tax.

4. Investments are of Long Term in nature and are therefore disclosed at cost as per National Housing Bank guidelines.

5. Interest on Housing Loans and other interest income have been determined after adjusting Interest Tax of Rs. 1,16,00,000 (Previous Year Rs. 83,50,000).

6. No provision has been made for disputed Income Tax liability under appeal Rs. 1,56,72,342 (Previous Year Rs. Nil).

10. Pursuant to the legal opinion obtained, the Company qualifies for exemption under Section 370(2)(a)(v) of the Companies Act, 1956 and accordingly the provisions of Section 370 are not applicable to the Company in respect of loans and deposits given to bodies corporate


Mar 31, 1996

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

These include:

Maximum amount due As at As at during the year March 31, March 1996 31, 1995 Rupees Rupees Rupees

Amount due from Officers of the Company against housing loans 5,19,253 2,68,231 2,43,170

2. As per the Prudential Norms made mandatory by National Housing Bank as on 31st March 1996, the interest income of Rs. 1,31,74,389 has not been recognised and additional provision made of Rs. 1,00,18,313 in respect of doubtful debts. But for this, the profit would have been higher by Rs. 2,31,92,702.

3. Other Income includes Rs. 6,02,517 (Previous Year - Rs.4,05,986) being Profit on sale of Fixed Assets and Rs. Nil (Previous Year Rs. 38,39,163) being interest on refund of excess income tax paid.

4. Investments are of Long Term in nature and are therefore disclosed at cost as per National Housing Bank guidelines.

5. Interest on Housing Loans and other interest income have been determined after adjusting Interest Tax of Rs. 83,50,000 (Previous Year Rs. 68,00,000).

6. Expenditure in Foreign Currency

For the year For the year ended ended March 31,1996 March 31,1995 Rupees Rupees

Foreign Travel 86,670 42,121

Foreign Exhibition 1,27,830 - -------- ------ Total 2,14,500 42,121 ======== ======

7. Auditors' remuneration For the year For the year ended ended March 31,1996 March 31,1995 Rupees Rupees

Audit Fees 1,40,000 1,40,000

Other Services (Certificates, Tax Audit, etc.) 44,500 59,000

Out of Pocket Expenses 56,169 83,681 -------- -------- 2,40,669 2,82,681 ======== ========

8. a) Remuneration of Managing Director on deputation from Canara Bank For the year For the year (including amount reimbursed/ ended ended reimbursable) March 31,1996 March 31, 1995 Rupees Rupees

Salaries etc., 1,76,459 1,62,241

Provident Fund etc., 9,673 57,703

9. Pursuant to the legal opinion obtained, the Company qualifies for exemption under Section 370(2)(a)(v) of the Companies Act, 1956, and accordingly the provisions of Section 370 are not applicable to the Company in respect of loans and deposits given to bodies corporate.

10. Particulars of dividend paid to Non-resident shareholders are as under:

Year to which the dividend relates 1994-95 1993-94

No. of Shareholders 4 4

No. of Shares held 1,700 1,700

Gross amount of Dividend (Rupees) 3,400 3,060

11. Previous year figures have been rearranged/reqrouped wherever necessary.


Mar 31, 1995

1.Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

(c) Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

(d) Negative lien and/or

(e) Undertaking to create a security.

These include: Maximum amount due As at As at during the year March 31,1995 March 31. 1994 Rupees Rupees Rupees

Amount due from an Officer of the Company against housing loan 2,59,167 2,43,170 2,59,167

2. Contingent Liability in respect of guarantees provided by the Company amounts Rs. NIL (Previous Year Rs. 26,72,736).

Other Income includes Rs.38,39,163 (Previous Year - Rs.8,08,680) being interest on refund of excess income tax paid and Rs.4,05,986 (Previous Year - Rs.3,99,842) being profit on sale of fixed assets.

Interest on Housing Loans and other interest income have been determined after using Interest Tax of Rs. 68,00,000 (Previous Year Rs. 48,50,000).

b) Shareholders' approval is proposed to be obtained in the ensuing Shareholders' Annual General Meeting for the appointment of Mr V.G. Baliga as Managing Director for the period from November 28, 1994 to January 31, 1997 and the remuneration paid/payable to him Rs. 70,267, which is in accordance with the service regulations of Canara Bank, is within the limits prescribed in Schedule XIII to the Companies Act, 1956.

8. Pursuant to the legal opinion obtained, the Company qualifies for exemption under Section 370(2)(a)(v) of the Companies Act, 1956, and accordingly the provisions of Section 370 are not applicable to the Company in respect of loans and deposits given to bodies corporate.

9. Particulars of dividend paid to Non resident shareholders are as under:

Year to which the dividend relates 1993-94 1992-93

No of Shareholders 4 2 No of Shares held 1,700 10,00,600 Gross amount of Dividend (Rupees) 3,060 16,00,960

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


Mar 31, 1994

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

a. Equitable mortgage of property and/or b. Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

c. Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

d. Negative lien and/or

e. Undertaking to create a security.

2. Other income includes Rs.8,08,680 (Previous Year Rs.26,285) being interest on refund of excess advance tax paid and Rs.3,99,842 (Previous Year Rs.1,09,187) being profit on sale of fixed assets.

3. Reimbursement of expenses to Canara Bank have been included under respective heads of accounts in the Profit and Loss Account.

Expenditure in Foreign Currency -Foreign Travel Rs.1,67,204 -Foreign Exhibition Rs.1,29,508

8. Pursuant to the legal opinion obtained, the Company qualifies for exemption under Section 370(2)(a)(v) of the Companies Act, 1956, and accordingly the provisions of Section 370 are not applicable to the Company in respect of loans and deposits given to bodies corporate.


Mar 31, 1993

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by:

a. Equitable mortgage of property and/or b. Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

c. Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

d. Negative lien and/or

e. Undertaking to create a security.

2. Other income includes Rs.26,285 (Previous Year Rs.7,95,753) been interest on refund of excess advance tax paid and Rs.1,09,187 (Previous Year Rs.84,450) being profit on sale of fixed assets.

3. Reimbursement of expenses to Canara Bank have been included under respective heads of accounts in the Profit and Loss Account.

Expenditure in Foreign Currency Subscription to Magazines, etc. Rs.5,400.

8. Pursuant to the legal opinion obtained, the Company qualifies for exemption under Section 370(2)(a)(v) of the Companies Act, 1956, and accordingly the provisions of Section 370 are not applicable to the Company in respect of loans and deposits given to bodies corporate.


Mar 31, 1992

1. Housing loans and instalments due from borrowers are secured, partly secured or otherwise by: a. Equitable mortgage of property and/or

b. Pledge of shares, units of Unit Trust of India, other securities, assignment of life insurance policies and/or

c. Government guarantees, bank guarantees, company guarantees or personal guarantees and/or

d. Negative lien and/or e. Undertaking to create a security.

Other Income includes Rs.7,95,753 (Previous Year Nil) being interest on refund of excess advance tax paid and Rs.84,450 (Previous Year Rs.19,323) being profit on sale of fixed assets.

Advances Recoverable in Cash or in Kind or for value to be received include Rs.14,91,599 (Previous Year Rs.32,48,823) towards purchase of flats etc.

No provision for gratuity in respect of the Company's employees has been made in the accounts as none of the employees have completed 5 years of service.

Expenditure in Foreign Currency Subscription to Magazines, etc. Rs.3,910.


Mar 31, 1991

Housing loans are secured or partly secured by

a. Equitable mortgage of proporty or b. Pledge od shares/units, bank guarantees, company guarantees or personal guarantees. c. Negative lien or d. Undertaking to create a security.

Other income includes Rs.19,323 being profit on sale of fixed assets.

Advances Recoverable in cash or kind or for value to be received include Rs.32,48,823 (Previous year Rs.27,61,500) towards purchase of flats etc.

No provision for gratuity in respect of the company's employees has been made in the accounts as none of the employees have completed 5 years of service.

The company's application to the company law board for preparing the accounts in the present order is pending allotment.


Mar 31, 1990

Housing loans are secured by equitable mortgage or otherwise except in certain cases where these are secured by third party guarantees pending compliances with certain formalities of execution of security documents etc.

The accounts of the previous period was for 6 months while those of the current year is for 12 months, accordingly the figures are not comparable.

Other income includes Rs.3,72,330 being interest on refund of excess advance tax paid and Rs.3,283 being profit on sale of fixed assets.

No provision for gratuity in respect of the company's employees has been made in the accounts as none of the employees have completed 5 years of service.

Expenditure in foreign currency Subscription to Magazines-Rs.1,215.


Mar 31, 1989

Housing loans are secured by equitable mortgage of property or otherwise except in certain cases where these are secured by personal guarantees of the borrowers pending compliances with certain formalities of execution of security documents.

No provision for gratuity has been made since none of the employees have completed 5 years of service.

Expenditure in Foreign Currency Foreign Travel Rs.37,000 Subscription to Magazines, etc. Rs. 1,079

The company proposes to amend the objects clause of the MOA the ensuing AGM so as to enable the central board of direct taxes to grant approval under section 36(1)(viii) of the Income Tax Act 1961, for which application has already been made. Assuming that the aforesaid mentioned will be given with retrospective effect, the liability for income tax has been calculated after considering the deduction available under section 36(1)(viii) of the Income Tax Act as applicable to a housing finance company, resulting in a reduction in provision for tax liability of Rs.8,77,000 approximately.

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