1.  Termination of Shareholders Agreement
 
 a) The Shareholders agreement dated June 16, 2005 entered into between
 the Company, Tube Investments of India Limited (TII) and DBS Bank
 Limited, Singapore (DBS) was terminated on April 08, 2010 pursuant to
 the purchase of the entire shareholding of DBS in the Company by Tube
 Investments of India Ltd., & New Ambadi Estates Private Ltd.,
 (constituents of the Murugappa Group). Consequently, the Company ceased
 to be a Joint Venture between Murugappa Group and DBS, with effect from
 April 08, 2010 and has become a subsidiary of Tube Investments of India
 Limited effectve from that date.
 
 b) Consequent to the above, the name of the company and its
 subsidiaries have been changed as follows:
 
 i) Cholamandalam DBS Finance Limited changed to Cholamandalam
 Investment and Finance Company Limited
 
 ii) DBS Cholamandalam Securities Limited changed to Cholamandalam
 Securities Limited
 
 iii) DBS Cholamandalam Distribution Limited changed to Cholamandalam
 Distribution Services Limited
 
 2.  Premature Redemption of Commercial Paper
 
 Gain / (Loss) on premature redemption of commercial papers is
 recognised in the Profit and Loss Account and included under
 Miscellaneous Income (2010-11) (Schedule 13(B)) and Other Financing
 Expenses (2009-10) (Schedule 14).
 
 3.  Other Financial Information
 
 Notes :
 
 1.  In recognising the Upfront Income on Bilateral Assignment of
 Receivables, the Company has obtained professional opinion confirming
 that bilateral assignment of receivables is outside the purview of the
 RBI Guidelines on Securitsation of Standard Assets introduced with
 effect from February 1, 2006.
 
 2.  Upfront income on Bilateral Assignment of Receivables is net of
 Provision for Credit Enhancements and Servicing Cost on assets
 derecognized Rs.519.32 lakhs (2010 - Rs.2,411.46 lakhs).
 
 3.  During the year, the company assigned Consumer Loan Receivables
 aggregating to Rs.2,515.34 lakhs (2010 - Rs.23,419.67 lakhs) having a
 net book value of Rs.1,243.50 lakhs (2010 - Rs.8,573.95 lakhs) to
 Cholamandalam Factoring Limited (subsidiary) on non recourse basis for
 Rs.1,095.05 lakhs (2010 - Rs.8,569.22 lakhs), as determined by an
 independent agency.
 
 4.  Managerial Remuneration
 
 Notes:
 
 i) The appointment and remuneration of the Managing Director is subject
 to the approval of the shareholders in the ensuing Annual General
 Meeting of the Company.
 
 ii) In computing the Managing Directors Remuneration, perquisites have
 been valued in terms of actual expenditure incurred by the company in
 providing the benefits except that in case of certain expenses where
 the actual amount of expenditure cannot be ascertained with reasonable
 accuracy, notional amount as per Income Tax Rules has been considered.
 
 iii) The Managing Directors Remuneration includes an amount of
 Rs.21.45 lakhs being the maximum incentive payable for the year.
 
 iv) Actuarial valuation based contribution / provision with respect to
 gratuity and provision for compensated absences have not been included
 as these are for the Company as a whole.
 
 (d) Based on the above, the total remuneration as stated in 8 (a) and
 (b) above are within the maximum permissible limits under the Companies
 Act, 1956.
 
 5.  Segment Reporting
 
 The Company is primarily engaged in the business of financing. All the
 actvities of the Company revolve around the main business. Further, the
 Company does not have any separate geographic segments other than
 India. As such there are no separate reportable segments as per AS-17
 Segmental Reporting.
 
 6.  Related Party Disclosures (As per AS-18 Related Party
 Disclosures) 
 
 List of Related Partes:
 
 - Companies holding Substantial   Tube Investments of India Limited
 Interest in Voting Power:         DBS Bank Limited, Singapore 
                                   (upto April 7, 2010)
 
 - Subsidiaries:                   Cholamandalam Securities Limited
 
                                   Cholamandalam Distribution 
                                   Services Limited 
 
                                   Cholamandalam Factoring Limited
 
 - Fellow Subsidiaries:            Cholamandalam MS General 
                                   Insurance Company Limited
 
                                   Cholamandalam MS Risk Services 
                                   Limited (w.e.f. May 11, 2010)
 
 - Key Management Person:          Mr.N.Srinivasan, Director 
                                   (Upto August 18, 2010)
 
                                   Mr.Vellayan Subbiah, Managing 
                                   Director (w.e.f. August 19, 2010)
 
 7. Contingent Liabilities
 
 (a) Counter Guarantees provided to Banks – Rs.78.02 lakhs (2010- Rs.108
 lakhs) and Shortall Undertaking provided to the lender of Cholamandalam
 Factoring Limited (Subsidiary) – Rs.6,000 lakhs (2010- Rs.7,500 lakhs)
 
 (b) Contested Claims Not Provided for:
 
                                                        Rupees in Lakhs
 Particulars                        As at 31.03.2011   As at 31.03.2010
 
 Income tax and Interest Tax 
 issues where the company is in
 appeal                                     2,128.67             612.89
 
 Decided in the companys favour 
 by Appellate Authorities and 
 for which the Department                     105.19              39.64
 is in further appeal with 
 respect to Income Tax
 
 Disputed claims against the company 
 lodged by various parties under              912.47             895.36
 litigation (to the extent 
 quantifiable)
 
 Note:
 
 The Company is of the opinion that the above demands are not
 sustainable and expects to succeed in its appeals / defence.
 
 8. Leases
 
 Assets taken on Non-cancellable operating lease consists of Plant and
 Machinery, Furniture and Fixtures and Office Equipments.
 
 9.  Employee Stock Option Plan
 
 a) The Board at its meeting held on June 22, 2007, approved an issue of
 Stock Options up to a maximum of 5% of the issued Equity Capital of the
 Company (before Rights Issue) aggregating to 1,904,162 Equity Shares in
 a manner provided in the SEBI (Employee Stock Option Scheme and
 Employee Stock Purchase Scheme) Guidelines, 1999 subject to the
 approval of the shareholders under Section 81(1A) of the Companies Act,
 1956. The Shareholders of the company at the Annual General Meeting
 held on July 30, 2007 approved the aforesaid issue of 1,904,162 Equity
 Shares of the company under one or more Employee Stock Option
 Scheme(s). The Compensation and Nomination Committee has approved the
 following grants to a list of senior level executives of the company
 and some of its Subsidiaries in accordance with the Stock Option Scheme
 -2007:
 
 b) Share application money pending allotment represents application
 money received on exercise of 3,652 options on March 31, 2011 which
 were subsequently allotted on April 11, 2011.
 
 10. Sharing of Costs
 
 The Company shares certain costs / service charges with other companies
 in the Group. These costs have been allocated between the Companies on
 a basis mutually agreed to between the Companies, which has been relied
 upon by the Auditors.
 
 11. Previous Year Figures
 
 Previous years figures have been regrouped /rearranged, where
 necessary to conform to current years presentation.