a) AMOUNTS RECEIVABLE FROM ERSTWHILE PROMOTERS
 
 Pursuant to a Share Purchase agreement (‘SPA’) between Aditya Birla
 Nuvo Limited (‘ABNL’) and Mr Prataph C Reddy and others (“Erstwhile
 Promoters”) dated August 28, 2008, ABNL had agreed to acquire 31 Lakhs
 equity shares in Aditya Birla Money Limited (“the Company”). The
 transaction was completed on March 6, 2009.
 
 As per clause 12.1 of the SPA, the Erstwhile Promoters had agreed to
 indemnify and hold harmless the Purchaser to the extent of any Losses,
 resulting from or consequent upon or relating to such breach of
 representation or warranty, covenants or agreement including but not
 limited to the recoveries of receivables and other assets in the books
 of the Company, contingencies on tax and related matters etc.
 
 In connection with the above, the Company based on its internal
 assessment of the recoverability of receivables, fixed assets and
 others assets and matters relating to tax and other contingencies have
 arrived at a total claim of Rs 163,882,296/- and has accordingly raised
 on the erstwhile promoters to remit such monies to the Company. While,
 the erstwhile promoters have not accepted the claim in its entirety it
 has however in respect of one particular claim relating to service tax
 liabilities remitted a sum of Rs 19,047,324/- during the year. The
 erstwhile promoters have not remitted nor have they denied these
 amounts as due to the Company and ABNL.
 
 In accordance with the terms of the SPA, the Company and ABNL have
 served a notice to the erstwhile promoters that they are invoking the
 arbitration mechanism for the resolution of the claims made. An
 Arbitral Tribunal was constituted and ABNL and the Company had filed
 their Statement of Claim on February 26, 2011.
 
 In addition to the above, the Company vide its letter dated March 5,
 2011 made a separate claim of Rs 5,169,379/- for amounts becoming due
 and payable on accounts of various cases initiated by the customers of
 the Company. Accordingly, as at March 31, 2011, the total claim made by
 the Company is about Rs 169,051,665/-.
 
 Pending the final outcome of the arbitration proceedings, the Company
 has identified all such receivables, assets etc which are have not been
 recovered and other items which are the subject matter of the claim to
 the extent they are in the books of accounts of the Company aggregating
 Rs 138,829,722/- and disclosed the same in Advances recoverable in cash
 or kind under Loans and Advances in Schedule 9 of the Balance Sheet and
 the balance claims relating to contingencies which have devolved on the
 Company have been included under note 2(b) of Schedule 18 below on
 contingencies.
 
 Based on legal opinion received and internal assessment, management is
 of the view that these amounts are recoverable from the erstwhile
 promoters and the Company is confident of recovering the entire dues
 through the arbitration process.
 
 b) COMMITMENTS AND CONTINGENCIES
 
 Commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account, net of advances and not provided for is Rs 4,882,875/-
 (Previous year - Rs. 11,053,000/-).
 
 Contingent Liabilities
 
 Particulars                          March 31, 2011     March 31, 2010
 
 Bank Guarantees placed 
 with exchanges                          150,000,000         92,000,000
 
 Disputed Tax Liability 
 not provided for:
 
 (a) Income Tax - for various 
 assessment years in respect              35,579,720         26,900,000
 of which Company has gone 
 on appeal. Based on judicial 
 pronouncements, the claim of 
 the Company is likely to be 
 accepted by the judicial 
 authorities.
 
 (b) Service Tax-for various 
 assessment years in respect               7,930,877         21,900,000
 of which Company has gone 
 on appeal. Based on judicial 
 pronouncements, the claim of 
 the Company is likely to be 
 accepted by the judicial 
 authorities.
 
 Particulars                           March 31, 2011     March 31, 2010
 
 Contingent Liability not 
 provided for on account of:
 
 (a) Disputed claim of SEBI 
 towards turnover fees                    27,656,667          27,656,667
 contested by the Company at 
 Hon’ble Supreme Court.
 The Company has been advised 
 by its legal counsel that it 
 is possible, but not probable,
 the action will succeed and 
 accordingly no provision for 
 any liability has been made 
 in these financial statements.
 
 (b) Claims against the Company
 not acknowledged as debts*              23,279,527           39,400,000
 
 * Represents claims made on the Company by various customers alleging
 unauthorised trades, loss of profits etc. The Company has been advised
 by its legal counsel that it is possible, but not probable, the action
 will succeed and accordingly no provision for any liability has been
 made in these financial statements.
 
 c) MANAGERIAL REMUNERATION
 
 During the previous year the Company had made an application to the
 Central Government under Section 309 (5B) of the Companies Act, 1956
 for seeking waiver of excess managerial remuneration amounting to Rs
 3,094,634/- (excluding statutory contribution to provident fund,
 gratuity and leave encashment which are exempted under Schedule VI)
 paid to Mr. P.B. Subramaniyan, the Erstwhile whole time director
 (’Erstwhile Director’) of the Company for the period from April 1, 2008
 to March 6, 2009.
 
 During the current year, the Company has received an order from the
 Central Government (CG) whereby the CG has rejected excess remuneration
 of Rs 1,534,634/- and directed the Company to collect the same from the
 Erstwhile Director.
 
 The Company has commenced the process of recovery from the Erstwhile
 Director. Pending the
 
 recovery of the same, it has been shown as advances recoverable by the
 Company in the Balance Sheet. The Company is evaluating various
 alternative options including seeking a condonation / compounding if
 these amounts are not recoverable from the Erstwhile Director.
 
 d) ISSUE OF 8% REDEEMABLE NON CONVERTIBLE NON CUMULATIVE PREFERENCE
 SHARES
 
 The Company has allotted 800,000 8% Redeemable Non Convertible Non
 Cumulative Preference Shares (‘RNCNCPS’) of Rs 100/- each, fully paid
 up at a premium of Rs 150/- per share to Aditya Birla Financial
 Services Private Limited, its holding company.
 
 The RNCNCPS are redeemable at the end of 5 years at Rs 320/- per share
 (face value Rs 100/- and a premium of Rs 220/- per share)
 
 e) EXCEPTIONAL ITEMS
 
 The company has borne one time loss of Rs 81,548,101/-, net of
 recovery, on account of certain trades of its clients which have not
 been recovered from them.
 
 j) LEASE DISCLOSURES
 
 Operating leases
 
 Lease rentals in respect of premises taken on operating lease during
 the year ended March 31, 2011 amounts to Rs.63,728,019/- (Previous Year
 Rs.Rs.42,348,809/-).
 
 The company has entered into lease / license agreements in respect of
 immovable properties with different parties. Some of the agreements
 contain escalation clause related to lease rentals / license fees from
 5% to 15% p.a.
 
 k) EMPLOYMENT BENEFIT DISCLOSURES
 
 The amounts charged to the Profit and loss account during the year for
 Provident fund contribution aggregates to Rs. 14,907,704/- (Previous
 year - Rs. 9,748,273/-) and employees’ state insurance contribution
 aggregates to Rs. 3,495,973/- (Previous year - Rs. 2,097,698/-).
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service gets a gratuity on departure at
 15 days salary (last drawn salary) for each completed year of service.
 The scheme has been funded during the current year.
 
 The following tables summarise the components of net benefit expense
 recognised in the profit and loss account and the funded status and
 amounts recognised in the balance sheet for the gratuity plan.
 
 Details of plan assets
 
 The overall expected rate of return on assets is determined based on
 the market prices prevailing on that date, applicable to the period
 over which the obligation is to be settled.
 
 Experience adjustments
 
 The estimates of future salary increases, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 l) RELATED PARTY TRANSACTIONS List of related parties
 
 Ultimate holding Company Aditya Birla Nuvo Limited
 
 Holding Company Aditya Birla Financial Services Private Limited
 
 Subsidiary Company Aditya Birla Commodities Broking Limited
 
 Entities under common control
 
 Aditya Birla Finance Limited
 
 Aditya Birla Money Mart Limited
 
 Aditya Birla Financial Shared Services Limited
 
 Birla Sun Life Insurance Company Limited
 
 m) FOREIGN CURRENCY TRANSACTIONS
 
 The Company did not enter into any foreign currency transactions in the
 current year and previous year.
 
 n) Additional information pursuant to provisions of paragraphs 3(i) to
 3(iii) except paragraph 3(ii)(c) and paragraphs 4C and 4D of Part II of
 the Schedule VI to the Companies Act, 1956 has not been provided as
 these are not relevant having regard to the nature of the business of
 the Company.
 
 o) COMPARATIVES
 
 Previous year figures have been audited by a firm other than S.R.
 Batliboi & Associates. Further previous year figures have been
 regrouped / reclassified wherever necessary to conform to current
 year’s classification.