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Notes to Accounts of GRUH Finance Ltd.

Mar 31, 2017

1 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is '' 0.61 crore (Previous Year Rs, 0.68 crore).

2. Contingent liability in respect of Income-tax and Interest-tax demands, amounts to Rs, 11.16 crores (Previous year Rs, 22.95 crores) disputed by GRUH and matters in dispute are under appeal. GRUH expects to succeed in these matters before appellate authority and hence no additional provision is considered necessary. Against the said demand, Rs, 8.24 crores (Previous year Rs, 18.89 crores) has been paid / adjusted and will be received as refund, if the matters are decided in favour of GRUH.

3. Disclosure on Corporate Social Responsibility (CSR) activities u/s 135 of the Companies Act, 2013 is as under :

(a) Gross amount required to be spent by GRUH during the year : Rs, 6.04 crores (Previous year Rs, 4.94 crores)

(b) Amount spent, utilized and charged during the year on :

4. In opinion of GRUH, there is only one identified reportable Business segment i.e. Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on ''Segment Reporting'' (AS 17).

5 There are no indications which reflects that any of the assets of GRUH had got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on ''Impairment of Assets'' (AS 28).

6 Figures less than Rs, 50,000 which are required to be shown separately, have been shown as actual in brackets.

7 Previous year''s figures have been re-grouped / re-classified wherever necessary to correspond with current year''s classification disclosure.


Mar 31, 2015

1.1 (a) Reconciliation of Number of Shares

(b) Aggregate number of shares allotted as fully paid-up by way of Bonus Shares (During 5 years immediately preceding March 31, 2015)

During the year, pursuant to approval of share holders at the 28th Annual General Meeting (AGM) of the Company held on May 28, 2014, the Company allotted 18,01,31,150 Bonus Equity Shares of Rs. 2 each as fully paid-up shares in the proportion of 1:1. In order to facilitate issue of bonus equity shares, the authorised Share Capital of the Company is increased from Rs. 50 crores to Rs. 100 crores.

1.2 Terms/Rights attached to Equity Shares

The Company has one class of share referred to as equity shares having a par value of Rs. 2 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

2.1 Shares reserved for issue under options

(a) During the year, the Company has issued 31,22,280 (Previous Year 16,54,475) shares on exercise of options granted to its employees and Directors under ESOS Schemes.

(c) Intrinsic Value Method has been used to account for the employee share based payment plans. The intrinsic value of each stock option granted under the ESOS - 2015, ESOS - 2011 (Tranche I and II) plan is Rs. Nil, since the market price of the underlying share at the grant date was same as the exercise price and consequently the accounting value of the option (compensation cost) is Rs. Nil.

3.1 As per section 29C(i) of the National Housing Bank Act, 1987, the Company is required to transfer at least 20% of its net profit every year to 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. The Company has transferred an amount of Rs. 56.87 crores (Previous Year Rs. 45 crores) to Special Reserve in terms of section 36(1)(viii) of the Income Tax Act, 1961. The Company doesn''t anticipate any withdrawal from Special Reserve in foreseeable future.

3.2 Vide circular NHB(ND)/DRS/Policy Circular 65/2014-15 dated August 22, 2014, the National Housing Bank ("NHB") has directed Housing Finance Companies (HFCs) to provide for a deferred tax liability in respect of amount transferred to "Special Reserve" created under section 36(1)(viii) of the Income Tax Act, 1961. As per the circular, NHB has advised HFCs to create deferred tax liability in respect of accumulated balance of Special Reserve as on April 1, 2014 from the reserves over a period of 3 years starting with current financial year, in a phased manner in the ratio of 25:25:50. Accordingly, the Company has created 25% of deferred tax liability of Rs. 19.20 crores on accumulated Special Reserve as on April 1, 2014 out of General Reserve.

Also, the Company has charged its Statement of Profit and Loss by Rs. 19.33 crores for the year ended March 31, 2015 with the deferred tax liability on additional amount appropriated towards Special Reserve out of profits. The deferred tax liability charged to the Statement of Profit and Loss has been separately disclosed.

3.3 The Company has transferred an amount of Rs. Nil (Previous Year Rs. 15 crores) to Additional Reserve u/s 29C of the National Housing Bank Act, 1987. During the year, an amount of Rs. Nil (Previous Year Rs. 7.26 crores) net of Deferred Tax of Rs. Nil (Previous year Rs. 3.74 crores) has been transferred from Additional Reserve as per section 29C of the National Housing Bank Act, 1987 pursuant to circular NHB(ND)/DRS/ Pol-No.03/2004-05 dated August 26, 2004 to Provision for Contingencies Account.

3.4 A sum of Rs. 36.03 crores was utilised out of the Securities Premium Account in accordance with section 52 of the Companies Act, 2013 for the issue of fully paid-up bonus shares to the equity shareholders of the Company.

3.5 In respect of equity shares issued pursuant to Employee Stock Option Scheme, the Company has paid dividend of Rs. Nil for the year 2013- 14 (Previous year Rs. 0.23 crore) and tax on dividend of Rs. Nil (Previous year Rs. 0.04 crore) as approved by the shareholders at the Annual General Meeting.

3.6 In terms of requirement of NHB''s Circular No. NHB(ND)/DRS/Pol.Circular.61/2013-14 dated April 7, 2014 following information on Reserve Fund under section 29C of the National Housing Bank Act, 1987 is provided :

4.1 Refinance from National Housing Bank (NHB) and Term Loans from Banks :

(a) Nature of Security

Refinance from National Housing Bank (NHB) and Term Loans from Banks are secured against negative lien on all the assets of the Company excluding :

(i) The specific immovable property mortgaged in favour of Debenture Trustees against the Secured Redeemable Non-Convertible Debentures;

(ii) The Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits; and

(iii) Dwelling units financed under line of credit of KfW through HDFC .

4.2 Redeemable Non-Convertible Debentures :

Nature of Security

Redeemable Non-Convertible Debentures are secured by the mortgage of specific immovable property created in favour of Debenture Trustees and by a negative lien on all the assets of the Company excluding (i) the Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits and (ii) Dwelling units financed under the line of credit of KfW through HDFC.

4.3 Term Loan under Line of Credit from Kreditanstalt fur Wiederaufbau (KfW) through HDFC :

Nature of Security

Loan from HDFC is secured by negative lien on dwelling units financed under line of credit of KfW.

4.4 Unsecured Non-Convertible Subordinated Debentures :

Redeemable Non-Convertible Subordinated Debentures, for value aggregating to Rs. 35 crores are subordinated debt to present and future senior indebtedness of the Company and qualify as Tier II Capital under National Housing Bank''s (NHB) guidelines for assessing capital adequacy. These NCDs are redeemable at par on March 22, 2023 (Rs. 10 crores) and on March 25, 2023 (Rs. 25 crores).

4.5 Public Deposits :

Public deposits as defined in paragraph 2(1)(y) of the Housing Finance Companies (NHB) Directions, 2010, are secured by floating charge on the Statutory Liquid Assets maintained in terms of sub-sections (1) & (2) of section 29B of the National Housing Bank Act, 1987.

5.1 Term Loans from Banks : -

Nature of Security

Term Loans from Banks are secured against negative lien on all the assets of the Company excluding :

(i) The specific immovable property mortgaged in favour of Debenture Trustees against the Secured Redeemable Non-Convertible Debentures;

(ii) The Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits; and

(iii) Dwelling units financed under line of credit of KfW through HDFC.

Rate of interest

Secured Loans from Banks carry interest rate 10.20% per annum.

5.2 Public Deposits

Public deposits as defined in paragraph 2(1)(y) of the Housing Finance Companies (NHB) Directions, 2010, are secured by floating charge on the Statutory Liquid Assets maintained in terms of sub-sections (1) & (2) of section 29B of the National Housing Bank Act, 1987.

6 TRADE PAYABLES

Trade Payables Rs. 0.92 crore (Previous Year Rs. 0.80 crore) include Rs. Nil (Previous Year Rs. Nil) payable to "Suppliers" registered under the Micro, Small and Medium Enterprises Development Act, 2006. No interest has been paid / payable by the Company during the year to the "Suppliers" covered under the Micro, Small and Medium Enterprise Development Act, 2006.

7.1 There are no amounts due for payment to the Investor Eduction and Protection Fund under section 205C of the Companies Act, 1956 (1 of 1956) as at the year end in respect of Unclaimed Matured Deposits and Unpaid Dividends.

8.1 The above Investments are made as Statutory Liquid Assets in accordance with the norms prescribed by the National Housing Bank.

8.2 In case of quoted investments, where quotes are not available, book value has been considered as market value.

9.1 Loans granted by the Company are secured or partly secured by :

(a) Equitable mortgage of property and / or

(b) Pledge of Shares, Units, Other Securities, assignments of Life Insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security.

9.2 Loans includes Rs. 0.47 crore (Previous Year Rs. 0.42 crore) given to the related parties of the Company under the Staff Loan Scheme.

9.3 The Company has complies with the norms prescribed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non- Performing Assets (NPAs) in preparation of Accounts. As per the norms, NPAs are recognised on the basis of 90 days overdue. NPAs are to be treated as Bad & Doubtful, if they remain outstanding for more than 15 months. The Company has made adequate provisions on Non-Performing Assets and Standard Assets in respect of Housing and Non-Housing Loans as prescribed under Housing Finance Companies (NHB) Directions, 2010.

10.1 Surplus from deployment in Cash Management Schemes of Mutual Funds amounting to Rs. 0.34 crore (Previous Year Rs. 1.24 crores) is in respect of Investments held as Current Investments.

10.2 Fees and Other Charges is net of Loan Referral Charges of Rs. 8.10 crores (Previous Year Rs. 6.63 crores).

2 DISCLOSURE REQUIRED BY NATIONAL HOUSING BANK

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

3. In compliance with the Accounting Standard on ''Employee Benefits'' (AS 15) (Revised 2005), following disclosures have been made :

The Rules of the Company''s Provident Fund administered by a Trust require that if the Board of the Trustees are unable to pay interest at the rate declared for Employees'' Provident Fund by the Government under para 60 of the Employees'' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company. Having regard to the assets of the fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

3.1 State Plans

The Company has recognised expenses of Rs. 0.40 crore (Previous Year Rs. 0.30 crore) in Statement of Profit and Loss for Contribution to State Plan namely Employees'' Pension Scheme.

3.2 Defined Benefit Plans

(a) Leave Encashment/Compensated Absences :

Salaries and Bonus includes Rs. 0.41 crore (Previous Year Rs. 0.48 crore) towards provision made as per actuarial valuation in respect of accumulated leave salary encashable on retirement.

4.1 Contingent liability in respect of Income-tax and Interest-tax demands, amounts to Rs. 17.77 crores (Previous year Rs. 15.63 crores) disputed by the Company and matters in dispute are under appeal. The Company expects to succeed in these matters before appellate authority and hence no additional provision is considered necessary. Against the said demand, Rs. 15.58 crores (Previous year Rs. 14.48 crores) has been paid / adjusted and will be received as refund if the matters are decided in favour of the Company.

4.2 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 0.03 crore (Previous Year Rs. Nil).

4 Changes in Accounting Policies and estimates :

(a) Depreciation :

The Company has reviewed its policy of providing for depreciation on its tangible fixed assets and has also reassessed their useful lives. On and from April 1, 2014, the straight line method is being used to depreciate all classess of fixed assets. Previously, the straight line method was used for depreciating buildings while other tangible fixed assets were being depreciated using the reducing balance method. The revised useful lives, as assessed by management, match those specified in Part C of Schedule II to the Companies Act, 2013, for all classes of assets other than Computers. Management believes that the revised useful lives of the assets reflect the periods over which these assets are expected to be used.

As a result of (a) the change in accounting policy, the depreciation charge for the year is lower by Rs. 2.89 crores and (b) the change in useful lives estimates, the depreciation charge is higher by Rs. 0.62 crore as compared to the method and estimated useful lives used respectively during previous year.

(b) Incentive on Deposits :

The Company has reviewed its accounting policy of incentive payable on public deposits. On and from April 1, 2014, the Company has started amortising incentive paid over the period of the deposit. Previously, incentive was charged to revenue on accrual basis.

As a result of the change, the incentive amortisation charge for the year is lower by Rs. 1.24 crores compared to the method used previously.

5 In the opinion of the Company, there is only one identified reportable Business Segment i.e. Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on ''Segment Reporting'' (AS 17).

6 As per the Accounting Standard on ''Related Party Disclosures'' (AS 18), the related parties of the Company with whom the Company had carried out transactions are as follows. These transactions were carried out in ordinary course of business and were at arm''s length price.

(a) Holding Company

Housing Development Finance Corporation Limited (HDFC)

(b) Fellow Subsidiary Companies

(i) HDFC Standard Life Insurance Co. Limited

(ii) HDFC ERGO General Insurance Co. Limited

(c) Key Management Personnel

(i) Mr. Sudhin Choksey, Managing Director

(ii) Mr. Kamlesh Shah, Executive Director

(iii) Mr. Marcus Lobo, Company Secretary

(iv) Mr. Jayesh Jain, Chief Financial Officer (Resigned w.e.f. August 19, 2014)

(v) Mr. Hitesh Agrawal, Chief Financial Officer (Appointed w.e.f. January 19, 2015)

(d) Entities in which Key Management Personnel exercise significant influence

(i) GRUH Foundation

7 In accordance with the Accounting Standard on ''Earnings Per Share'' (AS 20), the Earnings Per Share is as follows :

7.1 The number of equity shares considered in the above computation includes 18,01,31,150 equity shares allotted as fully paid-up Bonus Shares during the year. The figures for the previous year have been adjusted for the Bonus Shares in accordance with the Accounting Standard - 20 on "Earnings per share".

8 During previous year, some of software amounting to Rs. 0.56 crore being integral part of hardware and inseparable from hardware was shown as intangible assets. The same was not deducted from Net owned funds (NOF) reported to National Housing Bank in Statutory Return and NOF was therefore overstated to that extent.

9 There are no indications which reflects that any of the assets of the Company had got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on ''Impairment of Assets'' (AS 28).

10 Figures less than Rs. 50,000 which are required to be shown separately, have been shown as actual in brackets.

11 Previous year''s figures have been re-grouped / re-classified wherever necessary to correspond with current year''s classification disclosure.


Mar 31, 2014

1.1 There are no amounts due for payment to the Investor Education and Protection Fund under section 205C of the Companies Act, 1956 as at the year end in respect of Unclaimed Matured Deposits and Unpaid Dividends.

2.1 The above Investments are made as Statutory Liquid Assets in accordance with the norms prescribed by the National Housing Bank.

2.2 In case of quoted investments, where quotes are not available, book value has been considered as market value.

3.1 Loans granted by the Company are secured or partly secured by :

(a) Equitable mortgage of property and / or

(b) Pledge of Shares, Units, Other Securities, assignments of Life Insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security.

3.2 Loans includes Rs. 0.14 crore (Previous Year Rs. 0.16 crore) given to the Officer of the Company under the Staff Loan Scheme.

3.3 The Company has complied with the norms prescribed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non-Performing Assets (NPA) in preparation of Accounts. As per the norms, NPAs are recognised on the basis of 90 days overdue. NPAs are to be treated as Bad & Doubtful, if they remain outstanding for more than 15 months. The Company has made adequate provisions on Non-Performing Assets and Standard Assets in respect of Housing and Non-Housing Loans as prescribed under Housing Finance Companies (NHB) Directions, 2010.

3.4 Installments due from borrowers includes Rs. 10.28 crores (Previous Year Rs. 9.51 crores) which are accrued but not due.

3.5 Surplus from deployment in Cash Management Schemes of Mutual Funds amounting to Rs. 1.24 crores (Previous Year Rs. 4.07 crores) is in respect of Investments held as Current Investments.

4.1 Fees and Other Charges is net of Loan Referral Charges of Rs. 6.63 crores (Previous Year Rs. 4.94 crores).

5. DISCLOSURE REQUIRED BY NATIONAL HOUSING BANK

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

26. In compliance with the Accounting Standard on ''Employee Benefits'' (AS 15) (Revised 2005) following disclosures have been made :

6. Defined Contribution Plans

The Company has recognised the following amounts in Statement of Profit and Loss which are included under Contribution to Provident Fund and Other Funds :

The Rules of the Company''s Provident Fund administered by a Trust require that if the Board of the Trustees are unable to pay interest at the rate declared for Employees'' Provident Fund by the Government under para 60 of the Employees'' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company. Having regard to the assets of the fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

7. State Plans

The Company has recognised expenses of Rs. 0.30 crore (Previous Year Rs. 0.29 crore) in Statement of Profit and Loss for Contribution to State Plan namely Employees'' Pension Scheme.

8. Defined Benefit Plans

(a) Leave Encashment/Compensated Absences :

Salaries and Bonus includes Rs. 0.48 crore (Previous Year Rs. 0.81 crore) towards provision made as per actuarial valuation in respect of accumulated leave salary encashable on retirement.

9. Contingent liability in respect of Income-tax and Interest-tax demands, amount of Rs. 15.63 crores (Previous year Rs. 13.36 crores) disputed by the Company and matters in dispute are under appeal. The Company expects to succeed in these matters before appellate authority and hence no additional provision is considered necessary. Against the said demand, Rs. 14.48 crores has been paid / adjusted and will be received as refund if the matters are decided in favour of the Company.

10. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. Nil (Previous Year Rs. 0.34 crore).

11. In the opinion of the Company, there is only one identified reportable Business segment i.e. Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on ''Segment Reporting'' (AS 17).

12. Consequent to the Accounting Standard on ''Related Party Disclosure'' (AS 18), following persons will be considered as related persons for the year ended as on March 31, 2014 :

(a) Holding Company

Housing Development Finance Corporation Limited (HDFC)

(b) Fellow Subsidiary Companies

(i) HDFC Developers Limited

(ii) HDFC Investments Limited

(iii) HDFC Holdings Limited

(iv) HDFC Asset Management Co. Limited

(v) HDFC Trustee Co. Limited

(vi) HDFC Standard Life Insurance Co. Limited

(vii) HDFC Realty Limited

(viii) HDFC ERGO General Insurance Co. Limited

(ix) HDFC Sales Private Limited

(x) HDFC Ventures Trustee Company Limited

(xi) HDFC Property Ventures Ltd.

(xii) HDFC Ventures Capital Limited

(xiii) GRIHA Investments

(xiv) GRIHA Pte Ltd. Singapore

(xv) Credila Financial Services Pvt. Ltd.

(xvi) HDFC Education and Development Services Private Limited

(xvii) HDFC Life Pension Fund Management Company Limited

(xviii) H T Parekh Foundation

(xix) Windermere Properties Pvt. Ltd.

(xx) Grandeur Properties Pvt. Ltd.

(xxi) Winchester Properties Pvt. Ltd.

(xxii) Pentagram Properties Pvt. Ltd.

(xxiii) Haddock Properties Pvt. Ltd.

(c) Key Management Personnel

(i) Mr. Sudhin Choksey, Managing Director

(ii) Mr. Kamlesh Shah, Executive Director

(Related party relationships are as identified by the Company and relied upon by the auditors.)

13. There are no indications which reflects that any of the assets of the Company had got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on ''Impairment of Assets'' (AS 28).

14. Figures less than Rs. 50,000 which are required to be shown separately, have been shown as actual in brackets.

15. Previous year''s figures have been re-grouped / re-classified wherever necessary to correspond with current year''s classification disclosure.


Mar 31, 2013

1.1 (a) Sub-division of Shares

With effect from July 26, 2012, the nominal face value of equity shares of the Company was sub-divided from Rs. 10 per share to Rs. 2 per share. Accordingly, each option exercised after July 26, 2012 is entitled to 5 equity shares of Rs. 2 each. Number of shares for the previous year / period have been adjusted to give effect of sub-division.

1.2 Terms/Rights attached to Equity Shares

The Company has one class of share referred to as equity shares having a par value of Rs. 2 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(a) Intrinsic Value Method has been used to account for the employee share based payment plans. The intrinsic value of each stock option granted under the ESOS - 2011 Tranche II and ESOS - 2011 Tranche I plan is Rs. Nil, since the market price of the underlying share at the grant date was same as the exercise price and consequently the accounting value of the option (compensation cost) is Rs. Nil.

2.1 As per Section 29C(i) of the 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. The Company has transferred an amount of Rs. 37 crores (Previous Year Rs. 28 crores) to Special Reserve in terms of Section 36 (1)(viii) of the Income Tax Act, 1961. The Company doesn''t anticipate any withdrawal from Special Reserve in foreseeable future.

2.2 National Housing Bank (NHB) vide circular no. NHB.HFC.DIR.3/CMD dated August 5, 2011 had introduced provisioning for Standard Individual Home Loans. Company utilised Rs. Nil (Previous Year Rs. 7.79 crores) Net of Deferred Tax of Rs. Nil (Previous Year Rs. 3.75 crores) out of General Reserve to meet additional provision required on Standard Individual Home Loan Assets as at March 31, 2011.

2.3 The Company has transferred an amount of Rs. 12.50 crores (Previous Year Rs. 7.50 crores) to Additional Reserve u/s 29C of the National Housing Bank Act, 1987.

2.4 In respect of equity shares issued pursuant to Employee Stock Option Scheme, the Company has paid dividend of Rs. 0.22 crore for the year 2011-12 (Previous year Rs. 0.09 crore) and tax on dividend of Rs. 0.04 crore (Previous year Rs. 0.01 crore) as approved by the shareholders at the Annual General Meeting held on June 18, 2012.

3.1 Refinance from National Housing Bank (NHB) and Term Loans From Banks :

(a) Nature of Security

Refinance from National Housing Bank (NHB) and Term Loans from Banks are secured against negative lien on all the assets of the Company excluding

(i) The specific immovable property mortgaged in favour of Debenture Trustees against the Secured Redeemable Non-Convertible Debentures;

(ii) The Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits; and

(iii) Dwelling units financed under line of credit of KfW through HDFC.

Loan from HDFC is secured by negative lien on dwelling units financed under line of credit of KfW.

3.2 Redeemable Non-Convertible Debentures :

(a) Nature of Security

Redeemable Non-Convertible Debentures are secured by the mortgage of specific immovable property created in favour of Debenture Trustees and by a negative lien on all the assets of the Company excluding (i) the Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits and (ii) Dwelling units financed under the line of credit of KfW through HDFC .

3.3 Unsecured Non-Convertible Subordinated Debentures :

Redeemable Non-Convertible Subordinated Debentures, for value aggregating to Rs. 35 crores are subordinated debt to present and future senior indebtedness of the Company and qualify as Tier II Capital under National Housing Bank''s (NHB) guidelines for assessing capital adequacy. These NCDs are redeemable at par on March 22, 2023 (Rs. 10 crores) and on March 25, 2023 (Rs. 25 crores).

3.4 Public Deposits :

Public deposits as defined in Paragraph 2(1)(y) of the Housing Finance Companies (NHB) Directions, 2010, are secured by floating charge on the Statutory Liquid Assets maintained in terms of sub-sections (1) & (2) of Section 29B of the National Housing Bank Act, 1987.

4.1 Public Deposits

Public deposits as defined in Paragraph 2(1)(y) of the Housing Finance Companies (NHB) Directions, 2010, are secured by floating charge on the Statutory Liquid Assets maintained in terms of sub-sections (1) & (2) of Section 29B of the National Housing Bank Act, 1987.

5 TRADE PAYABLES

Trade Payables include Rs. Nil (Previous Year Rs. Nil) payable to "Suppliers" registered under the Micro, Small and Medium Enterprises Development Act, 2006. No interest has been paid / payable by the Company during the year to the "Suppliers" covered under the Micro, Small and Medium Enterprise Development Act, 2006.

6.1 There are no amounts due for payment to the Investor Eduction and Protection Fund under section 205C of the Companies Act, 1956 as at the year end in respect of Unclaimed Matured Deposits and Unpaid Dividends.

7.1 The above Investments are made as Statutory Liquid Assets in accordance with the norms prescribed by the National Housing Bank.

7.2 In case of quoted investments, where quotes are not available, book value has been considered as market value.

8.1 Loans granted by the Company are secured or partly secured by :

(a) Equitable mortgage of property and / or

(b) Pledge of Shares, Units, Other Securities, assignments of Life Insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security.

8.2 Loans includes Rs. 0.16 crore (Previous Year Rs. 0.18 crore) given to the Officer of the Company under the Staff Loan Scheme.

8.3 The Company has complied with the norms prescribed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non-Performing Assets (NPA) in preparation of Accounts. As per the norms, NPAs are recognised on the basis of 90 days overdue. NPAs are to be treated as Bad & Doubtful, if they remain outstanding for more than 15 months. The Company has made adequate provisions on Non-Performing Assets and Standard Assets in respect of Housing and Non- Housing Loans as prescribed under Housing Finance Companies (NHB) Directions, 2010.

9.1 Instalments due from borrowers includes Rs. 9.51 crores (Previous Year Rs. 10.43 crores) which are accrued but not due.

10.1 Surplus from deployment in Cash Management Schemes of Mutual Funds amounting to Rs. 4.07 crores (Previous Year Rs. 1.44 crores) is in respect of Investments held as Current Investments.

10.2 Fees and Other Charges is net of Loan Referral Charges of Rs. 4.94 crores (Previous Year Rs. 3.11 crores).

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

12. In compliance with the Accounting Standard on ''Employee Benefits'' (AS 15) (Revised 2005) notified by Companies (Accounting Standards) Rules, 2006, the following disclosures have been made :

The Rules of the Company''s Provident Fund administered by a Trust require that if the Board of the Trustees are unable to pay interest at the rate declared for Employees'' Provident Fund by the Government under para 60 of the Employees'' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company. Having regard to the assets of the fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

13.1 State Plans

The Company has recognised expenses of Rs. 0.29 crore (Previous Year Rs. 0.25 crore) in Statement of Profit and Loss for Contribution to State Plan namely Employees'' Pension Scheme.

13.2 Defined Benefit Plans

(a) Leave Encashment/Compensated Absences :

Salaries and Bonus includes Rs. 0.81 crore (Previous Year Rs. 0.42 crore) towards provision made as per actuarial valuation in respect of accumulated leave salary encashable on retirement.

14.1 Contingent liability in respect of Income-tax and Interest-tax demands, amount of Rs. 13.86 crores (Previous year Rs. 14.21 crores) disputed by the Company and matters in dispute are under appeal. The Company expects to succeed in these matters before appellate authority and hence no additional provision is considered necessary. The said amount has been paid / adjusted and will be received as refund if the matters are decided in favour of the Company.

14.2 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 0.34 crore (Previous Year Rs. Nil).

15. In the opinion of the Company, there is only one identified reportable Business segment i.e. Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on ''Segment Reporting'' (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

16. Consequent to the Accounting Standard on ''Related Party Disclosure'' (AS 18) notified by Companies (Accounting Standards) Rules, 2006 following persons will be considered as related persons for the year ended as on March 31, 2013:

17. In accordance with the Accounting Standard on ''Earnings Per Share'' (AS 20) notified by the Companies (Accounting Standards) Rules, 2006, the Earnings Per Share is as follows :

18. There are no indications which reflects that any of the assets of the Company had got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on ''Impairment of Assets'' (AS 28) notified by the Companies (Accounting Standards) Rules, 2006.

19. Figures less than Rs. 50,000 which are required to be shown separately, have been shown as actual in brackets.

20. Previous year''s figures have been re-grouped / re-classified wherever necessary to correspond with current year''s classification disclosure.


Mar 31, 2012

1.1 Terms/Rights attached to Equity Shares

The Company has one class of shares referred to as equity shares having a par value of Rs 10/- each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

1.2 Shares reserved for issue under options

(a) During the year, the Company has issued 1,45,005 (Previous Year 4,32,483) shares on exercise of Options granted to its employees and Directors under ESOS Scheme - 2007.

(c) Intrinsic Value Method has been used to account for the employee share based payment plans. The intrinsic value of each stock option granted under the ESOS - 2011 Tranche II, ESOS - 2011 Tranche I and ESOS - 2007 plan is Rs Nil since the market price of the underlying share at the grant date was same as the exercise price and consequently the accounting value of the option (compensation cost) is Rs Nil.

(e) The Black-Scholes-Mertons Option Pricing Model have been used to derive the estimated value of stock option granted if the fair value method to account for the employee share based payment plans were to be used. The estimated value of each stock options and the parameters used for deriving the estimated value of Stock Option granted under Black-Scholes-Mertons Option Pricing Model is as follows:

2.1 As per Section 29C(i) 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. The Company has transferred an amount of Rs 28,00,00,000/- (Previous Year Rs 22,00,00,000/-) to Special Reserve in terms of Section 36(1)(viii) of the Income Tax Act, 1961. The Company doesn't anticipate any withdrawal from Special Reserve in foreseeable future.

2.2 National Housing Bank (NHB) vide circular no. NHB.HFC.DIR.3/CMD dated August 5, 2011 has introduced provisioning for Standard Individual Home Loans. The Company utilised Rs 7,79,45,765/- (Previous Year Rs Nil) Net of Deferred Tax of Rs 3,74,35,428/- (Previous Year Rs Nil) out of General Reserve to meet additional provision required on Standard Individual Home Loan Assets as at March 31, 2011.

2.3 The Company has transferred an amount of Rs 7,50,00,000/- (Previous Year Rs Nil) to Additional Reserve u/s 29C of the National Housing Bank Act, 1987.

2.4 In respect of equity shares issued pursuant to Employee Stock Option Scheme, the Company has paid dividend of Rs 9,00,592/- for the year 2010-11 (Previous year Rs 8,02,325/-) and tax on dividend of Rs 1,46,098/- (Previous year Rs 1,33,256/-) as approved by the share holders at the Annual General Meeting held on July 14, 2011.

3.1 Refinance from National Housing Bank (NHB) and Term Loans from Banks:

(a) Nature of Security

Refinance from National Housing Bank and Term Loans from Banks are secured against negative lien on all the assets of the Company excluding :

(i) The specific immovable property mortgaged in favour of Debenture Trustees against the Secured Redeemable Non-Convertible Debentures; and

(ii) The Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits.

3.2 Redeemable Non-Convertible Debentures

(a) Nature of Security

Redeemable Non-Convertible Debentures are secured by the mortgage of specific immovable property created in favour of Debenture Trustees and by a negative lien on all the assets of the Company excluding the Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits.

3.3 Unsecured Non-Convertible Subordinated Debentures

8.18% Redeemable Non-Convertible Subordinated Debentures of Rs 40,00,00,000/- are subordinated debt to present and future senior indebtedness of the Company and qualify as Tier II Capital under National Housing Bank's guidelines for assessing capital adequacy. These NCDs are redeemable at par on February 13, 2013.

3.4 Public Deposits

Public Deposits as defined in Paragraph 2(1)(y) of the Housing Finance Companies (NHB) Directions, 2010, are secured by floating charge on the Statutory Liquid Assets maintained in terms of Sub-sections (1) & (2) of section 29B of the National Housing Bank Act, 1987.

4.1 Term Loans from Banks Nature of Security

Term Loans from Banks are secured against negative lien on all the assets of the Company excluding :

(a) The specific immovable property mortgaged in favour of Debenture Trustees against the Secured Redeemable Non-Convertible Debentures; and

(b) The Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits.

4.2 Public Deposits

Public Deposits as defined in Paragraph 2(1)(y) of the Housing Finance Companies (NHB) Directions, 2010, are secured by floating charge on the Statutory Liquid Assets maintained in terms of Sub-sections (1) & (2) of section 29B of the National Housing Bank Act, 1987.

5 TRADE PAYABLES

Trade Payables include Rs Nil (Previous Year Rs Nil) payable to "Suppliers" registered under the Micro, Small and Medium Enterprises Development Act, 2006. No interest has been paid / payable by the Company during the year to the "Suppliers" covered under the Micro, Small and Medium Enterprise Development Act, 2006.

6.1 There are no amounts due for payment to the Investor Education and Protection Fund under section 205C of the Companies Act, 1956 as at the year end in respect of Unclaimed Matured Deposits and Unpaid Dividends.

7.1 The above Investments are made in Statutory Liquid Assets in accordance with the norms prescribed by the National Housing Bank.

7.2 In case of quoted investments, where quotes are not available, book value has been considered as market value.

8 DEFERRED TAX ASSET

In accordance with Accounting Standard on 'Accounting for Taxes on Income' (AS 22) notified by Companies (Accounting Standards) Rules, 2006 the Company is accounting for Deferred Tax.

9.1 Loans granted by the Company are secured or partly secured by :

(a) Equitable mortgage of property and / or

(b) Pledge of shares, Units, Other Securities, assignments of Life Insurance policies and / or

(c) Hypothecation of assets and / or

(d) Bank guarantees, Company guarantees or Personal guarantees and / or

(e) Undertaking to create a security.

9.2 Loans includes Rs 10,63,17,517/- (Previous Year Rs 4,66,80,441/-) in respect of properties held for disposal under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

9.3 Loans includes Rs 17,98,148/- (Previous Year Rs 19,70,000/-) and Rs Nil (Previous Year Rs 3,26,671/-) respectively given to the Officer and Executive Director of the Company under the Staff Loan Scheme.

10.1 The Company has complied with the norms prescribed under Housing Finance Companies (NHB) Directions, 2010 for recognising Non-Performing Assets (NPAs) in preparation of Accounts. As per the norms, NPAs are recognised on the basis of 90 days overdue. NPAs are to be treated as Bad & Doubtful, if they remain outstanding for more than 15 months. The Company has made adequate provisions on Non-Performing Assets and Standard Assets in respect of Housing and Non-Housing Loans as prescribed under Housing Finance Companies (NHB) Directions, 2010.

11.1 Instalments due from borrowers includes Rs 10,42,50,060/- (Previous Year Rs 7,58,67,799/-) which are accrued but not due.

12.1 Surplus from deployment in cash management schemes of Mutual Funds amounting to Rs 1,43,56,394/- (Previous Year Rs Nil) is in respect of investments held as current Investments.

12.2 Fees and other charges is net of Loan Referral charges of Rs 3,10,69,565/- (Previous Year Rs 1,67,08,419/-).

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

14. In compliance with the Accounting Standard on 'Employee Benefits' (AS 15) (Revised 2005) notified by Companies (Accounting Standards) Rules, 2006, the following disclosures have been made :

The Rules of the Company's Provident Fund administered by a Trust require that if the Board of the Trustees are unable to pay interest at the rate declared for Employees' Provident Fund by the Government under para 60 of the Employees' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Company. Having regard to the assets of the fund and the return on the investments, the Company does not expect any deficiency in the foreseeable future.

14.1 State Plans

The Company has recognised expenses of Rs 25,30,771/- (Previous Year Rs 21,35,352/-) in Statement of Profit and Loss for Contribution to State Plan namely Employees' Pension Scheme.

14.2 Defined Benefit Plans

(a) Leave Encashment/Compensated Absences :

Salaries and Bonus includes Rs 42,05,985/- (Previous Year Rs 49,48,632/-) towards provision made as per actuarial valuation in respect of accumulated leave salary encashable on retirement.

15. The Company has disputed demands of Rs 14,20,98,417/- (Previous Year Rs 14,27,04,086/-) in respect of Income Tax and Interest Tax in the appellate proceedings. The Company expects to succeed in these proceedings and hence no additional provision is considered necessary.

16. In the opinion of the Company, there is only one identified reportable Business segment i.e. Housing Finance Business Segment geographically only located in India for the purpose of Accounting Standard on 'Segment Reporting' (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

17. In accordance with the Accounting Standard on 'Earnings Per Share' (AS 20) notified by the Companies (Accounting Standards) Rules, 2006, the EPS are as follows :

18. There are no indications which reflects that any of the assets of the Company had got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on 'Impairment of Assets' (AS 28) notified by the Companies (Accounting Standards) Rules, 2006.

19. The Revised Schedule VI has become effective from April 1, 2011 for the preparation of Financial Statements. This has significantly impacted the disclosure and presentation made in the Financial Statements. Previous Year's figures have been regrouped / reclassified wherever necessary to correspond with current Year's classification / disclosure.

20. Balance Sheet under Pre-revised Schedule VI :

Till the year ended March 31, 2011, the Company was reporting its financial statements as per pre-revised Schedule VI to the Companies Act, 1956. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company and accordingly previous year figures have been reclassified to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts the presentation and disclosures, particularly presentation of Balance Sheet. The following is a summary of the Balance Sheet as at March 31, 2012 under pre-revised Schedule VI of the Companies Act.


Mar 31, 2010

1. During the year, the Company has issued 69,292 and 3,898 (Previous Year Nil and 4,261) shares on exercise of Options granted to its employees and directors under ESOS Scheme - 2007 and 2005 respectively.

2. As per Section 29C(i) 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(l)(viii) of the Income-tax Act, 1961 is considered to be an eligible transfer. The Company has transferred an amount of Rs. 17.50 Crores (Previous Year Rs. 12 Crores) to Special Reserve in terms of Section 36(l)(viii) of the Income Tax Act, 1961. Company doesnt anticipate any withdrawal from Special Reserve in foreseeable future.

3. Secured Loans :

(a) Refinance from National Housing Bank (NHB) and Term Loans from Banks are secured against negative lien on all the assets of the Company excluding

i. The specific immovable property mortgaged in favour of Debenture Trustees against the Secured Redeemable Non-Convertible Debentures; and

ii. The Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits.

(b) Redeemable Non-Convertible Debentures amounting to Rs. 135 Crores are secured by mortgage of specific immovable property created in favour of Debenture Trustees and by a negative lien on the assets of the Company excluding the Statutory Liquid Assets having floating charge in favour of the Public Deposit Trustees against the Public Deposits. These NCDs are redeemable at par in one or more instalments, on various dates, with the earliest redemption date being November 19, 2014 and the last being December 3, 2014.

4. Unsecured Loans :

(a) Redeemable Non-Convertible Subordinated Debentures of Rs. 40 Crores are subordinated debt to present and future senior indebtedness of the Company and qualify as Tier II Capital under National Housing Banks (NHBs) guidelines for assessing capital adequacy. These NCDs are redeemable at par on February 13, 2013.

(b) The maximum amount of Commercial Paper outstanding at any time during the year was Rs. 500 Crores (Previous Year Rs. 500 Crores). As at March 31, 2010 there were no Commercial Paper outstanding.

(c) Public Deposits include Rs. 107,22,08,642/- (Previous Year Rs. 77,75,04,557/-) due within one year. The Public Deposits are secured by floating charge on the Statutory Liquid Assets.

5. Loans granted by the Company are secured or partly secured by :

(a) Equitable mortgage of property and / or

(b) Pledge of Shares, Units, Other Securities, Assignments of Life Insurance Policies and / or

(c) Hypothecation of assets and / or

(d) Bank Guarantees, Company Guarantees or Personal Guarantees and / or

(e) Undertaking to create a security.

6. (a) The Company has complied with the norms prescribed under Housing Finance Companies (NHB) Directions, 2001

for recognising Non-Performing Assets (NPA) in preparation of Accounts. As per the norms, NPAs are recognised on the basis of 90 days overdue. NPAs are to be treated as Bad & Doubtful, if they remain outstanding for more than 15 months. The Company has made adequate provisions on Non-Performing Assets and Standard Assets in respect of Housing and Non Housing Loans as prescribed under Housing Finance Companies (NHB) Directions, 2001.

7. Loans include Rs. 4,91,92,175/- (Previous Year Rs. 5,82,36,952/-) in respect of properties held for disposal under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

8. (a) The instalments due from borrowers includes Rs. 7,25,02,076/- (Previous Year Rs. 8,14,87,042/-) which are accrued but not due.

(b) Advances recoverable in cash or kind include Advance Tax of Rs. 108,81,92,341/- (Previous Year Rs. 80,85,20,047) after adjusting Rs. 98,56,10,063/- (Previous Year Rs. 68,89,60,063/-) towards Provision for Taxation.

9. As required under Section 205C of the Companies Act, 1956 the Company has transferred Rs. 4,92,002/- (Previous Year Rs. 4,32,900/-) to the Investor Education and Protection Fund (IEPF) during the year.

10. (a) Interest on loans includes income from home loans Rs. 247,83,46,013/- (Previous Year Rs. 229,78,70,905/-) and Income from other loans Rs. 27,98,84,270/- (Previous Year Rs. 32,02,19,705/-).

(b) Other Operating Income includes Interest on Bank Deposit Rs. 19,49,05,130/- (Previous Year Rs. 16,92,84,257/-), Dividend from Mutual Funds Rs. 1,59,29,648/- (Previous Year Rs. 3,44,63,250/-), Income from Long Term Investments amounting to Rs. 2,03,57,010/- (Previous Year Rs. 1,55,32,166/-) and Income on Sold Loans Rs. (3,48,04,675/-) (Previous Year Rs. 2,72,17,313/-).

11. In compliance with the Accounting Standard on Employee Benefits (AS 15) (Revised 2005) notified by Companies (Accounting Standards) Rules, 2006 the following disclosures have been made :

b) State Plans

The Company has recognised Rs. 17,99,242/- (Previous Year Rs. 16,41,193/-) in the Profit and Loss Account for Contribution to State Plan namely Employees Pension Scheme.

c) Defined Benefit Plans

i) Leave Encashment/Compensated Absences :

Salaries and Bonus includes Rs. 31,82,164/- (Previous Year Rs. 41,12,761/-) towards provision made as per actuarial valuation in respect of accumulated leave salary encashable on retirement.

ii) Contribution to Gratuity Fund :

The details of the Companys post-retirement benefit plans for its employees including the Managing Director are given below which is certified by the actuary and relied upon by the auditors :

12. The Company has disputed demands of Rs. 12,72,09,365/- (Previous Year Rs. 11,07,56,815/-) in respect of Income Tax, Fringe Benefit Tax and Interest Tax in the appellate proceedings. The Company expects to succeed in these proceedings and hence no additional provision is considered necessary.

13. In the opinion of the Company, there is only one identified reportable segment i.e. Housing Finance Business Segment for the purpose of Accounting Standard on Segment Reporting (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

14. Consequent to the Accounting Standard on Related Party Disclosure (AS 18) notified by Companies (Accounting Standards) Rules, 2006 following persons will be considered as related persons for the period ended as on March 31, 2010 :

Sr. No. Name of the Related Party Nature of Relationship

(i) Housing Development Finance Corporation Limited (HDFC) Holding Company

(ii) HDFC Developers Limited Fellow Subsidiary

(iii) HDFC Investments Limited Fellow Subsidiary

(iv) HDFC Holdings Limited Fellow Subsidiary

(v) HDFC Asset Management Co. Limited Fellow Subsidiary

(vi) HDFC Trustee Co. Limited Fellow Subsidiary

(vii) HDFC Standard Life Insurance Co. Limited Fellow Subsidiary

(viii) HDFC Realty Limited Fellow Subsidiary

(ix) HDFC ERGO General Insurance Co. Limited Fellow Subsidiary

(x) HDFC Sales Private Limited Fellow Subsidiary

(xi) HDFC Ventures Trustee Company Limited Fellow Subsidiary

(xii) HDFC Property Ventures Ltd. Fellow Subsidiary

(xiii) HDFC Ventures Capital Limited Fellow Subsidiary

(xiv) HDFC Asset Management Company (Singapore) PTE Ltd. Fellow Subsidiary

(xv) GRIHA Investments Fellow Subsidiary

(xvi) Mr. Sudhin Choksey, Managing Director Key Management Personnel

(Related party relationships are as identified by the Company and relied upon by the auditors.)

15. In accordance with Accounting Standard on Accounting for Taxes on Income (AS 22) notified by Companies (Accounting Standards) Rules, 2006 the Company is accounting for deferred tax. The Company has taken credit of Rs. 4,22,43,231/- (Previous Year Rs. 97,26,845/-) in the Profit & Loss Account for the year ended March 31, 2010 towards deferred tax asset (net) for the year, arising on account of timing differences.

b) Intrinsic Value Method has been used to account for the employee share based payment plans. The intrinsic value of each stock option granted under the ESOS - 2007 plan is Rs. Nil since the market price of the underlying share at the grant date was same as the exercise price and consequently the accounting value of the option (compensation cost) is Rs. Nil.

16. Sundry Creditors include Rs. Nil (Previous Year Rs. Nil) payable to "Suppliers" registered under the Micro, Small and Medium Enterprises Development Act, 2006. No interest has been paid / payable by the Company during the year to the "Supplier" covered under the Micro, Small and Medium Enterprise Development Act, 2006.

17. Miscellaneous Expenses includes Expenses for Recovery Rs. 78,25,257/- (Previous Year Rs. 70,08,536/-), Expenses on Statutory Advertisement of Rs. 12,04,338/- (Previous Year Rs. 9,43,611/-) and Loss on Sale of Acquired Properties Rs. 16,46,932/- (Previous Year Rs. 12,67,097/-).

18. There are no indications which reflect that any of the assets of the Company had got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on Impairment of Assets (AS 28) notified by Companies (Accounting Standards) Rules, 2006.

19. Figures for the Previous Year have been re-grouped or recast wherever necessary.

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