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Notes to Accounts of GIC Housing Finance Ltd.

Mar 31, 2016

Note .1.

a) As per Section 29C(1) of National Housing Bank Act 1987, the Company is required to transfer at least 20% of its Net Profit 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.

b) The Company has transferred an amount of Rs, 3,372 Lacs (Previous Year Rs, 2,856 Lacs) to Special Reserve in terms of Section 36(1)(viii) of the Income Tax Act, 1961.

Note 2.

For the year ended 31st March 2016, the Board of Directors has proposed a dividend of Rs, 5 per equity share (previous year Rs, 5 per equity share) on approval in consequent Annual General Meeting, the total dividend appropriation would be Rs, 3,241 lacs inclusive of Corporate Dividend Distribution Tax. (Previous year Rs, 3,241 Lacs inclusive of Corporate Dividend Distribution Tax.)

Note:

There is no outstanding amount payable/overdue to Micro and Small Enterprises.

During the year no interest has been paid to such partes. This information has been determined to the extent, such partes have been identified on the basis of information available with the Company.

1. Housing loans are secured by:

a) Equitable mortgage of property and/or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral Securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:

a) The Company has pending Income Tax disputes of Rs, 276 Lacs (Previous Year – Rs, 326 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantees:

i) Rs, 75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year – Rs, 75 Lacs).

ii) Rs, 50 Lacs given in favour of Future Generali India Life Insurance Company Ltd. in lieu of premium deposit for "Future Generali Loan Suraksha Plan" policy contract to avail Credit Life Group Plan Cover for borrowers (Previous Year - Rs, NIL).

3. During the year the Company has incurred expenditure on foreign travel amounting to Rs, NIL (Previous Year Rs, NIL).

4. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs, 5,166 Lacs (Previous Year Rs, 3,781 Lacs).

5. Employee Benefits:

Defined Contribution Plan:

The Company makes contribution to Employees'' Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees to Defined contribution plans. The Company recognized Rs, 17 Lacs (Previous year Rs, 15 Lacs) for Employees'' Pension Scheme and Rs, 1 Lacs (Previous year Rs, 1 Lacs) for Employee State Insurance Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

Defined Benefit Plans:

Provident Fund

An amount of Rs, 140 Lacs (Previous year Rs, 102 Lacs) has been charged to Statement of Profit and Loss on account of this Defined benefit scheme.

Leave Encashment

An amount of Rs, 72 Lacs (Previous year Rs, 105 Lacs) has been charged to Statement of Profit and Loss for this benefit scheme during the year.

Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

The estimate of future salary increase considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.

6. Segment Reporting:

The Company''s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Instate of Chartered Accountants of India and notified under the Companies (Accounting Standards) Amendment Rules, 2014.

7. Deferred tax Assets:

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) notified under the Companies (Accounting Standards)Amendment Rules, 2014,the Company has charged Rs, 551 Lacs (Previous year has taken credit of Rs, 214 Lacs) in the Statement of Profit and Loss during the current financial year.

Pursuant to National Housing Bank (NHB) Circular No. NHB/(ND)/DRS/Policy Circular 65/2014-15 dated 22nd August, 2014, the Company has opted to create Deferred Tax Liability (DTL) on the balance in Special Reserve under Section 36(1)(viii) of Income-tax Act, 1961 as at 31st March, 2014, over the period of 3 years starting from the financial year 2014-15, in a phased manner in the rato of 25:25:50. Accordingly, expenditure, due to the creation of DTL on Special Reserve, amounting to Rs, 2,066 Lacs, not previously charged to the Statement of Profit and Loss, has now been adjusted directly from the General Reserves (Previous year Rs, 2,066 Lacs). Had this amount been charged to the Statement of Profit and Loss in accordance with the generally accepted Accounting principles in India, the amount of Profit for the year had been lower by such amount.

The estimated amount of expenditure to be adjusted directly from Reserve, due to non-creation of DTL on Special Reserve up to 31st March, 2014, for the financial year 2016-17 would be Rs, 4,131 Lacs.

Outlow in respect of above provisions; both tming & certainty would depend on developments/Outcome of these events.

8. Disclosure regarding provisions made for sub-standard, doubtul and loss assets and depreciation in investments as per the Prudential Norms (revised) contained in the National Housing Bank Guidelines.

9. The Classification of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.

10. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current financial year:

a) No penalty has been imposed by National Housing Bank on the Company.

b) NHB during their annual inspection had observed that the Company had overstated NOF & CRAR by Rs, 251 Lacs & 0.05%, respectively for the financial year 2013-14 due to negative amortization cases amounting to Rs, 1,828 Lacs not considered as NPA. This has no impact for the current financial year.

11. Disclosure in the Balance Sheet as per NHB Guidelines on Asset Liability Management (ALM) System for HFCs – Guidelines (NHB/ND/DRS/Pol-No. 35/2010-11) dated 11th October, 2010.


Mar 31, 2015

Terms/ Rights attached to equity shares

The company has only one class of Equity shares having par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share.

The holders of equity shares are entitled to dividends,if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1.1 :

Note 1.2 : The Company has forfeited 53,800 Equity Shares on which amount originally paid up is Rs. 2,69,000

a) As per Section 29C(1) of National Housing Bank Act 1987, the Company is required to transfer atleast 20% of its Net profit 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.

b) The Company has transferred an amount of Rs. 2856 Lacs (Previous Year Rs. 2860 Lacs) to Special Reserve in terms of Section 36(1)(viii) of the Income Tax Act,1961.

Note 1.3 :

For the year ended 31st March 2015, the Board of Directors has proposed a dividend of Rs. 5 per equity share (previous year Rs. 6 per equity share including one time Silver Jubilee dividend of Rs. 1 per equity share). On approval in consequent Annual General Meeting, the total dividend appropriation would be Rs. 3241 lacs (previous year Rs. 3780 lacs), inclusive of Corporate Dividend Distribtion Tax of Rs. 548 lacs (Previous year Rs. 549 lacs)

The NCD are redeemable at par. The NCD are secured by way of first charge on book-debts equivalent to loan outstanding and mortgage on immovable property.

The details of Non Convertible Redeemable Debentures (NCD''s) are as under:

There is no outstanding amount payable/overdue to Micro,Small and Medium Enterprises. During the year no interest has been paid to such parties.This information has been determined to the extent, such parties have been identified on the basis of information available with the Company.

Note 2.1 :

Non Current portion of Long Term Borrowings Refer Note 4 Note 8.2 :

a) The Company has transferred Rs. 6.91 Lacs (Previous Year Rs. 4.19 Lacs) to Investor Education and Protection Fund during the year.

b) The Interest Subsidy is payable to eligible borrowers on receipt from Government of India under 1% Interest Subvention scheme.

c) Application money received for allotment of securities and due for refund and interest accured thereon Rs. Nil (Previous year Rs. 0.06 Lacs)

NOTE:

In terms of the order of Honorable High Court, Bombay, the face value of equity shares of GIC Asset Management Company Ltd.has been reduced to Rs. 1.50 from Rs. 2 Consequently the Company has received a sum of Rs. 10.50 Lacs towards the reduction in face value of its investments.

(d) The Company is carrying aggregate provision for dimunition in the value of investments of Rs. 982 lacs (Previous year Rs. 992 Lacs) (Refer Point no.14 of Note no. 26 (Notes forming part of Accounts))

Note 3.1:

Interest Subsidy Receivable from Government of India under 1% Interest Subvention scheme.

Note 4.1 :

During the year Company has received Dividend amounting to Rs. 0.075 Lacs (Previous Year Rs. 0.125 Lacs)

1. Housing loans are secured bv:

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:

a) The Company has pending Income Tax disputes of Rs. 326 Lacs (Previous Year - Rs. 472 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs. 75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs. 75 Lacs)

3. Debts due from:

Company Secretary: Rs. NIL on account of Housing Loan. (Previous Year - Rs. 0.30 Lacs)

(Maximum balance due during the year Rs. 0.30 Lacs & Previous Year - Rs. 5 Lacs)

4. During the year the Company has incurred expenditure on foreign travel amounting to Rs. NIL (Previous Year Rs. 0.55 Lacs)

5. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs. 3,198 Lacs (Previous Year Rs. 2,394 Lacs)

6. Employee Benefits:

Defined Contribution Plan:

The Company makes contribution to Employees'' Pension Scheme, 1995 for all employees and Employee State Insurance Scheme for all eligible employees to defined contribution plans. The Company recognized Rs. 15 Lacs (Previous year Rs. 13 Lacs) for Employees'' Pension Scheme and Rs. 1 Lacs (Previous year Rs. 2 Lacs) for Employee State Insurance Scheme in the Statement of Profit and Loss. The contributions payable by the Company are at rates specified in the rules of the schemes.

Defined Benefit Plans:

Provident Fund

An amount of Rs. 102 Lacs (Previous year Rs. 95 Lacs) has been charged to Statement of Profit and Loss on account of this defined benefit scheme.

Leave Encashment

An amount of Rs. 105 Lacs (Previous year Rs. 24 Lacs) has been charged to Statement of Profit and Loss for this benefit scheme during the year.

Gratuity Plan

Gratuity is payable to all the members at the rate of 15 days salary for each completed year of Service.

The estimate of future salary increase considered in actuarial valuation, takes into account inflation, seniority, promotions and other relevant factors such as demand and supply in the employment market.

Expected contribution to Gratuity Fund in next year aggregates to Rs. 4 Lacs. (Previous Year Rs. 15 Lacs)

8. Segment Reporting:

The company''s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standards) Amendment Rules, 2011.

9. Related Party Transactions:

Names of Related Parties and description of relationship Key Management Personnel:

Managing Director & CEO - Shri Warendra Sinha (on deputation from GIC Re.)

10. Leases:

Company has entered into agreements for taking on lease basis certain office premises. Lease payments recognized in the Statement of Profit and Loss for the year is Rs. 475 Lacs (Previous Year Rs.382 Lacs)

Future lease rental obligation under these leases:

a) Not later than one year: Rs. 410 Lacs (PY. Rs. 274 Lacs)

b) Later than one year and not later than five years. : Rs. 1353 Lacs (PY. Rs. 800 Lacs)

c) Later than five years. : Rs. 146 Lacs (PY. Rs. 247 Lacs)

12. Deferred tax Assets:

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) notified under the Companies (Accounting Standards) Amendment Rules, 2011, the Company has charged Rs. 214 Lacs (Previous year has taken credit of Rs. 879 Lacs) in the Statement of Profit and Loss during the current financial year.

Pursuant to National Housing Bank (NHB) Circular No. NHB/(ND)/DRS/Policy Circular 65/2014-15 dated 22nd August 2014, the Company has opted to create 25% of Deferred Tax Liability (DTL) on the balance in Special Reserve under Section 36(1)(viii) of Income-tax Act, 1961 as at March 31, 2014, over the period of 3 years starting from the financial year 2014- 15, in a phased manner in the ratio of 25:25:50. Accordingly, expenditure, due to the creation of DTL on Special Reserve, amounting to Rs. 2,066 Lacs, not previously charged to the Statement of Profit and Loss, has now been adjusted directly from the Reserves. Had this amount been charged to the Statement of Profit and Loss in accordance with the generally accepted accounting principles in India, the amount of Profit for year had been lower by such amount.

The estimated amount of expenditure to be adjusted directly from Reserve, due to non creation of DTL on Special Reserve upto March 31,2014, forthe financial year2015-16 and 2016-17 would be Rs. 2,066 Lacs and Rs. 4,131 Lacs, respectively.

Major components of deferred tax assets and liabilities are as follows:

''Including Floating Provision

Outflow in respect of above provisions; both timing & certainty would depend on developments/Outcome of these events.

14. Disclosure regarding provisions made for substandard, doubtful and loss assets and depreciation in investments as per the Prudential Norms (revised) contained in the National Housing Bank Guidelines.

15. The Classification of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Schedule III to the Companies Act, 2013.

16. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current financial year:

a) No penalty has been imposed by National Housing Bank on the Company.

b) The Company has not received any adverse comments on regulatory compliances required to be disclosed.

17. Disclosure in the Balance Sheet as per NHB Guidelines on Asset Liability Management (ALM) System for HFCs - Guidelines (NHB/ND/DRS/Pol-No. 35/2010-11) dated October 11,2010.

Note: Advances and Investments under the head ''Assets'', are shown net off provisions as per the NHB Guidelines on Asset Liability Management (ALM) System for HFCs.

18. Disclosure in the Balance Sheet as per NHB Guidelines on Reserve Fund under Section 29C of the NHB Act, 1987 - Guidelines (NHB(ND)/DRS/Pol.Circular.61/2013-14) dated April 7, 2014.

19. For the year ended March 31,2015, 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 April 01, 2014 is NIL, the same has been charged to the Statement of Profit & Loss. Due to above, depreciation charge for the year ended March 31, 2015 is higher by Rs. 196 Lacs.

20. Figures for previous year have been regrouped / reclassified wherever necessary.

21. Figures have been rounded off to the nearest Rupees in Lacs wherever necessary.


Mar 31, 2013

1. Housing loans are secured by :- a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:- a) The Company has pending Income Tax disputes of Rs.322 Lacs (Previous Year – Rs.270 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs.75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan” Policy contract to avail Term Group Plan cover for borrowers. (Previous Year – Rs.75 Lacs)

c) In accordance with "Share transfer agreement” with ''Nomura Asset Management Strategic Investments Pte. Ltd.'' for sale of shares of LIC Mutual Fund Asset Management Company Ltd and LIC Mutual Fund Trustee Company Pvt. Ltd, the maximum contingent liability is Rs.1344 Lacs (Previous Year Rs.1344 Lacs).

3. Debts due from:

Directors : Rs.NIL on account of Housing Loan.

(Maximum balance due during the year Rs.24 Lacs)

Company Secretary : Rs.5 Lacs on account of Housing Loan.

(Maximum balance due during the year Rs.6 Lacs )

4. During the year the Company has incurred expenditure on foreign travel amounting to Rs.2 Lacs (Previous Year. – Rs.3 Lacs).

5. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs.2236 Lacs. (Previous Year Rs.3175 Lacs)

6. EMPLOYEE BENEFITS (AS-15) :

Short Term employee benefi ts:

All employee benefi ts payable wholly within twelve months of rendering the service are classifi ed as short term employee benefi ts. These benefi ts are recognized as expense in statement of Profi t and Loss in the year in which the expense is incurred.

Long Term employee benefi ts:

Defi ned Contribution Plan:

Defi ned Contribution plans are Employees'' Pension Scheme, 1995 for all employees and Employee State Insurance Scheme and EDLI for eligible employees. An amount of Rs.15 Lacs has been charged to Statement of Profi t and Loss of these defi ned Contribution Plan.

Defi ned Benefi t Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis.

For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees.

An amount of Rs.75 Lacs (Previous Year Rs.58 Lacs) has been charged to Statement of Profi t and Loss account, on account of this defi ned benefi t scheme.

Gratuity Plan

The Company''s gratuity benefi t scheme is a defi ned benefi t plan. The Company''s net obligation in respect of the gratuity benefi t scheme is calculated by estimating the amount of future benefi t that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefi ts to its employees under the Leave Encashment pay plan which is a non-contributory defi ned benefi t plan. The employees of the Company are entitled to receive certain benefi ts in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefi ts payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit. An amount of Rs.12 Lacs (Previous Year Rs.12 Lacs) has been charged to Statement of Profi t and Loss for this benefi t scheme.

7. Segment Reporting (AS-17)

The company''s main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India and notifi ed under the Companies (Accounting Standards) Amendment Rules, 2011.

8. Related Party Transactions (AS -18)

Names of related parties and description of relationship:

Key Management Personnel : Managing Director - Shri. M Sivaraman,(on deputation from United India Insurance Company Ltd.)(For the period 01.04.2012 to 31.10.2012)

9. Leases (AS-19)

Company has entered into agreements for taking on leave and license basis certain Offi ce premises. Lease payments recognized in the statement of profi t and loss for the year is Rs.316 Lacs (Previous Year Rs.292 Lacs)

Future lease rental obligation under these leases:

i) Not later than one year: Rs.223 Lacs

ii) Later than one year and not later than fi ve years : Rs.707 Lacs

iii) Later than fi ve years : Rs.192 Lacs

10. Deferred Tax Assets (AS-22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income” (AS-22) issued by the Institute of Chartered Accountants of India and notifi ed under the Companies (Accounting Standards) Amendment Rules, 2011, the Company has taken credit of Rs.909 Lacs in Statement of Profi t and Loss during the current fi nancial year.

11. Disclosure regarding provisions made for substandard, doubtful and loss assets and depreciation in investments as per the Prudential Norms (revised) contained in the National Housing Bank Guidelines. (Figures in brackets are for the previous year).

12. The Classifi cation of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profi le as per the requirement of Revised Schedule VI to Companies Act, 1956.

13. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current fi nancial year the company has:-

a) neither been imposed any penalty by National Housing Bank.

b) nor received any adverse comments in writing from National Housing Bank on regulatory compliances.

c) observations during regular inspection have been replied.

14. Figures for previous year have been regrouped / reclassifi ed wherever necessary.


Mar 31, 2012

1. Housing loans are secured by :-

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or anyother acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:-

a) The Company has pending Income Tax disputes of Rs. 270 Lacs (Previous Year - Rs. 170 Lacs). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs. 75 Lacs given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Group Plan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs. 75 Lacs).

c) In accordance with "Share transfer agreement" with 'Nomura Asset Management Strategic Investments Pte. Ltd.' for sale of shares of LIC Mutual Fund Asset Management Company Ltd. and LIC Mutual Fund Trustee Company Pvt. Ltd., the maximum contingent liability is Rs. 1,344 Lacs.

3. Debts due from:

Directors Rs. 24 Lacs on account of Housing Loan.

(Maximum balance due during the year Rs. 25 Lacs)

Company Secretary : Rs. 6 Lacs on account of Housing Loan.

(Maximum balance due during the year Rs. 7 Lacs)

4. During the year the Company has incurred expenditure on foreign travel amounting to Rs.3 Lacs (Previous Year. - Rs. 1 Lac)

5. Housing Loans include loans against which the company has commenced action under Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs.3,175 Lacs.(Previous Year Rs. 3,843 Lacs)

6. The Company has requested its Suppliers to confirm the status as to whether they are covered under the Micro, Small & Medium Enterprises Development Act, 2006. In absence of confirmations from the suppliers, disclosures, if any, relating to unpaid amount as at the year end together with interest paid / payable as required under the said Act have not been given.

7. EMPLOYEE BENEFITS (AS-15 ):

Short Term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits are recognized as expense in Profit and Loss account in the year in which the expense is incurred.

Long Term employee benefits:

Defined Contribution Plan:

The Company does not provide any long term employee benefit which can be categorised under Defined Contribution Plan.

Defined Benefit Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund.

For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees. An amount of Rs.58 Lacs has been charged to the Profit & Loss Account on account of this defined benefit scheme.

Gratuity Plan

The Company's gratuity benefit scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

8. Segment Reporting (AS-17)

The company's main business is to provide loans for the purchase or construction of residential units. Hence, there are no separate reportable segments as per Accounting Standard on Segment Reporting (AS-17) issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standards) Rules, 2006.

9. Leases - (AS-19)

Company has entered into agreements for taking on leave and license basis certain Office premises. Lease payments recognized in the profit and loss account for the year is Rs. 292 Lacs (Previous Year Rs. 211 Lacs)

Future lease rental obligation under these leases:

i) Not later than one year: Rs.218 Lacs

ii) Later than one year and not later than five years. : Rs. 613 Lacs

iii) Later than five years. : Rs. 296 Lacs

10. Deferred Tax Assets: (AS - 22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India, the Company has taken credit of Rs. 628 Lacs in Profit and Loss Account during the current financial year.

11. The Classification of Assets and Liabilities into Current and Non-Current is carried out based on their residual maturity profile as per the requirement of Revised Schedule VI to Companies Act, 1956.

12. Disclosure regarding penalty or adverse comments as per Housing Finance Companies (NHB) Directions, 2010. During the current financial year the company has:

a) neither been imposed any penalty by National Housing Bank.

b) nor received any adverse comments in writing from National Housing Bank on regulatory compliances.

c) observations during regular inspection have been replied.

13. Till the year ended 31 March 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act, 1956, has reclassified previous year figures to conform to this year's classification.


Mar 31, 2011

1. Housing loans are secured by :-

a) Equitable mortgage of property and / or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:-

a) The Company has pending Income Tax disputes of Rs. 1,69,99,155/- (Previous Year - Rs. 33,82,627/-). It has preferred appeal/s against the same and also has made payments under protest.

b) Bank Guarantee of Rs. 75,00,000/- given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Groupplan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs. 75,00,000/-)

c) In accordance with "Share transfer agreement" with Nomura Asset Management Strategic Investments Pte. Ltd. for sale of shares of LIC Mutual Fund Asset Management Company Ltd and LIC Mutual Fund Trustee Company Pvt. Ltd, the maximum contingent liability is Rs. 13,44,02,072/-

3. In terms of the order of Honorable High Court, Bombay, the face value of equity shares of GIC Asset Management Company Ltd. has been reduced to Rs. 4/- from Rs. 10/-. Consequently the Company has received a sum of Rs. 1,25,99,976/- towards the reduction in face value of its investments.

4. Debts due from:

Directors : Rs. 15,00,000/-on account of Housing Loan.

(Maximum balance due during the year Rs. 15,00,000)

Company Secretary : Rs. 6,74,025.64 on account of Housing Loan.

(Maximum balance due during the year Rs. 7,31,462.23)

5. During the year the Company has incurred expenditure on foreign travel amounting to Rs.62,102 /- (Previous Year. - Rs.NIL)

6. Housing Loans include loans against which the company has commenced action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to Rs.3,842.80 lakhs. (Previous Year Rs. 3,209.12 lakhs).

7. EMPLOYEE BENEFITS (AS-15 ) :

Short Term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits are recognized as expense in Profit and Loss account in the year in which the expense is incurred.

Long Term employee benefits:

Defined Contribution Plan:

The Company does not provide any long term employee benefit which can be categorised under Defined Contribution Plan.

Defined Benefit Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund.

For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees. An amount of Rs.56,42,920/- has been charged to the Profit & Loss Account on account of this defined benefit scheme.

Gratuity Plan

The Companys gratuity benefit scheme is a defined benefit plan. The Companys net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

8. Leases - (AS-19)

Company has entered into agreements for taking on leave and license basis certain Office premises. Lease payments recognized in the profit and loss account for the year is Rs. 2,11,05,237/- (Previous Year Rs. 1,83,34,880/-)

Future lease rental obligation under these leases:

i) Not later than one year: Rs.2,23,92,985/-

ii) Later than one year and not later than five years. : Rs. 6,30,33,757/-

iii) Later than five years. : Rs. 3,51,71,455/-

9. Deferred Tax Assets: (AS-22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India, the Company has taken credit of Rs. 13,19,08,646/- in Profit and Loss Account during the current financial year.

10. Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act, 2006 have not furnished the information regarding filing of necessary memorandum with the appropriate authority. In view of this, information required to be disclosed u/s 22 of the said Act is not given.

11. Figures for previous year have been regrouped wherever necessary.


Mar 31, 2010

1. Housing loans are secured by :-

a) Equitable mortgage of property and/or;

b) Assignment of Life Insurance Policies and/or guarantee of solvent guarantors and/or any other acceptable collateral securities wherever applicable, and,

c) Corporate Guarantees, wherever applicable.

2. Contingent Liabilities:-

a) Tax disputes in appeal Rs.33,82,627/- (Previous Year - Rs.28,09,707/-)

b) Bank Guarantee Rs.75,00,000/- given in favour of Kotak Mahindra Old Mutual Life Insurance Ltd. in lieu of premium deposit for "Kotak Term Groupplan" Policy contract to avail Term Group Plan cover for borrowers. (Previous Year - Rs.75,00,000/-)

c) Claims against the Company not acknowledged as debts Rs. NIL (Previous Year-Rs. NIL)

3. Leases - (AS-19)

Company has entered into agreements for taking on leave and license basis certain Office premises. Lease payments recognized in the profit and loss account for the year is Rs. 1,83,34,880/- (Previous Year- Rs. 1,37,30,900/-)

Future lease rental obligation under these leases:

i) Not later than one year: Rs. 1,72,12,140/-

ii) Later than one year and not later than five years : Rs. 5,60,21,927/-

iii) Later than five years : Rs. 2,56,88,531/-

4. Deferred Tax Assets: (AS - 22)

In compliance with the Accounting Standard relating to "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India, the Company has taken credit of Rs. 3,46,39,926/- in Profit and Loss Account during the current financial year.

5. Debts due from:

Directors

Rs. 15,00,000/- on account of Housing Loan. (Maximum balance due during the year Rs. 15,00,000)

Company Secretary

Rs.7,31,462.23 on account of Housing Loan. (Maximum balance due during the year Rs.7,86,103.39)

6. EMPLOYEE BENEFITS (AS-15 ) :

Short Term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. These benefits are recognized as expense in Profit and Loss account in the year in which the expense is incurred.

Long Term employee benefits:

Defined Contribution Plan:

The Company does not provide any long term employee benefit which can be categorised under Defined Contribution Plan.

Defined Benefit Plans:

Provident Fund

The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate.

Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund. For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident fund scheme, contributions are also made by the employees. An amount of Rs.29,48,106/- has been charged to the Profit & Loss Account on account of this defined benefit scheme.

Gratuity Plan

The Companys gratuity benefit scheme is a defined benefit plan. The Companys net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.

Leave Encashment

The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

7. Housing Loans include loans against which the company has commenced action under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 including possession of properties and part recovery of auction proceeds aggregating to lakhs. (Previous Year-Rs.2,024.80 lakhs.)

8. Figures for previous year have been regrouped wherever necessary.

 
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