NOTE NO.1 : CORPORATE INFORMATION
 
 First Leasing Company of India Limited (FLCI) is a Public Company
 incorporated in India, in the year 1973, under the Companies Act, 1956
 and having its Shares listed in Madras, Mumbai and National Stock
 Exchanges. FLCI is classified as Deposit Accepting Asset Finance
 Company by the Reserve Bank of India. FLCI is primarily engaged in the
 business of Leasing / Hire Purchase and also granting loans to
 Corporate and other entities. It also earns income from the activity of
 Electricity generation from Wind Energy.
 
 NOTE NO.2 : BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
 BASIS OF PREPARATION
 
 The Company maintains its books of account and prepares the Financial
 Statements on accrual basis following the historical cost convention in
 accordance with generally accepted accounting principles (GAAP) and
 in compliance with provisions of the Companies Act, 1956 and the
 Accounting Standards as specified in the Companies (Accounting
 Standard) Rules, 2006 prescribed by the Central Government to the
 extent applicable to this Company.
 
 The Company follows Capital adequacy norms besides prudential norms for
 income recognition and provisioning for Non-Performing and Standard
 Assets as prescribed by Reserve Bank of India for Non-Banking Financial
 Companies from time to time.
 
 a. Terms / Rights attached to Equity Shares
 
 The Company has only one class of equity shares having a par value of
 Rs.10/- per share. Each holder of equity shares is entitled to one vote
 per share. The company declares and pays dividends in Indian rupees.
 The dividend proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing annual general meeting.
 
 During the year ended 31st March 2012, a dividend of Rs. 1.80 per
 Share, is recommended by Board of Directors (Previous year - Rs. 2.00
 per Share).
 
 In the event of liquidation of the Company, the holders of equity
 shares will be entitled to receive remaining assets of the company,
 after payment of preferential amounts. The distribution will be in
 proportion to the number of equity shares held by the Shareholders.
 
 a) Term Loans obtained from other parties (Financial Institutions) are
 secured by hypothecation of Equipments hired out and assignment of
 rentals thereof and repayable in 41 instalments.
 
 b) Deposits from public and Share holders carry interest ranging
 between 8.00% and 9.96%. No deposit is accepted with a maturity period
 of less than 12 months period and more than 36 months. Rs. 1,373.81
 Lacs out of the Long Term Public Deposit is repayable within one to two
 years and the balance of Rs. 842.98 Lacs is repayable after two years
 from the reporting date.
 
 c) Inter Corporate Deposits are accepted for short term period of not
 more than 180 days with interest rate ranging from 9.50% to 14.00%
 
 d) There are no loans taken from related party during the current year.
 (Rs. 821.85 Lacs)
 
 e) The Company has not defaulted in repayment of any Loan or Deposit
 and interest thereon.
 
 II AS - 17 - SEGMENT REPORTING:
 
 The Company is primarily engaged in Hire Purchase/Lease Finance. There
 is no reportable segment other than primary segment, in terms of the
 above accounting standard.
 
 III AS - 18 - RELATED PARTY DISCLOSURE:
 
 (i) List of Related party where control exists:
 
 Key Management Personnel: Mr. Farouk Irani - Managing Director
 
 (ii) Related Party Transactions
 
 Remuneration - Rs. 104.59 Lacs (Rs. 177.95 Lacs)
 
 Interest paid on Fixed Deposits - Rs. Nil (Rs. 54.77 Lacs)
 
 IV AS - 19 - LEASE / HIRE PURCHASE TRANSACTIONS:
 
 (1) Leases
 
 (I) Aggregate of Minimum lease payments - Rs. 23,096.87 Lacs (Rs.
 26,089.71 Lacs)
 
 (ii) Net carrying amount - Rs. 18,849.81 Lacs (Rs. 19,991.96 Lacs)
 
 (iii) Maturity pattern of Gross / Net receivable:
 
 (iv) Unearned Finance income - Rs. 4,247.06 Lacs (Rs. 6,097.75 Lacs)
 
 (v) All initial direct costs are recognised as expenses in the Profit
 and Loss statement at the inception of the lease.
 
 (vi) Accumulated provision for uncollectible minimum lease payments
 receivable Rs. 32.50 Lacs (Rs. 181.88 Lacs)
 
 (2) Stock on Hire:
 
 (i) Aggregate of Minimum Hire Rentals - Rs 1,64,924.59 Lacs (Rs.
 1,37,192.38 Lacs)
 
 (ii) Net carrying amount - Rs 1,42,154.68 Lacs (Rs. 1,23,145.02 Lacs)
 
 (iii) Maturity pattern of Gross / Net receivable
 
 (iv) Unearned Finance income - Rs. 22,769.91 Lacs (Rs 14,047.36 Lacs)
 
 (v) Accumulated provision for uncollectible hire payments receivable is
 Rs. 72.07 Lacs (Rs.167.39 Lacs)
 
 VI AS - 22 - ACCOUNTING FOR TAXES ON INCOME:
 
 Deferred Tax:
 
 Rs. 604.96 Lacs (Rs. 1,111.97 Lacs) is recognised towards the current
 year provision, arising out of timing differences, as per the
 Accounting Standard - 22.
 
 VII AS - 28 - IMPAIRMENT OF ASSETS:
 
 Assets have been reviewed at balance sheet date for impairment, as per
 the above Accounting Standard
 
 VIII AS - 29 - CONTINGENT LIABILITIES & ASSETS
 
 (i) Pending contracts to be executed
 
 Particulars                       As at 31.03.2012      As at 31.03.2011
 
 Estimated amount of contracts 
 remaining to be executed on
 Capital Account/Lease & H.P. 
 Disbursements not provided for           821.28              620.72
 
 (ii) Claims against the Company not acknowledged as debts:
 
 Tax Demands against the Company not acknowledged as Debts
 
 (a) Income Tax demand of Rs. 1,841.29 Lakhs (Rs. 1,879.12 Lacs) against
 the Company in respect of which appeals have been preferred and are
 pending with Appellate Authorities. However the Company has paid under
 protest Rs. 858.44 Lacs besides a refund of Rs. 63.50 Lacs due from and
 adjusted by the department (Rs. 955.91 Lacs) and balance demand has
 been stayed by the Appellate authorities. Based on expert legal
 opinion, the Company is of the view that it has fair chances of success
 in the appeal and entitled for refund of the amount paid.
 
 (b) Interest Tax demand of Rs. 48.93 Lakhs (Rs. 48.93 Lacs) has been
 contested in appeal proceedings. The Company has paid Rs. 39.13 Lacs
 (Rs. 39.13 Lacs). The Company is of the view that it has a fair chance
 of success in the appeal and hence no provision has been made for the
 balance amount of Rs. 9.80 Lacs in the books of account.
 
 (c) Liability towards Fringe Benefit Tax of Rs. 22.58 Lacs (Rs. 22.58
 Lacs) has not been provided for in the accounts as the Company has
 challenged the validity of such a levy before the Hon''ble Supreme Court
 of India. There is no liability to be provided in this regard with
 effect from 1st April, 2009 in view of the repeal of the levy.
 
 (d) Sales Tax demands of various states aggregating to Rs. 1,644.72
 Lacs (Rs. 1,224.41 Lacs) have been contested before different Appellate
 authorities including the Hon''ble Supreme Court. These demands have
 been stayed by respective Appellate Authorities. The company is
 confident of successful outcome in the appeals and in the event of any
 liability arising the same would devolve upon the ultimate hirers
 /lessees and hence no provision has been made in the books of account.
 The Company has furnished Bank Guarantees amounting to Rs. 49.17 Lacs
 (Rs. 49.17 Lacs) and its own guarantee of Rs. 993.93 Lacs (Rs. 51.53
 Lacs)
 
 IX NON CURRENT LIABILITIES
 
 Long term borrowings
 
 Long Term borrowings include Loans availed from Banks, Financial
 Institutions and as Public Deposits which are due beyond 12 months from
 the reporting date.
 
 X CURRENT LIABILITIES
 
 a.  Short Term Borrowings
 
 Short Term Borrowings include loans, Commercial Papers, Public Deposits
 and Cash Credit facilities availed from various Banks that are due and
 payable in the next 12 months from the reporting date.
 
 The maximum amount outstanding towards borrowing under Commercial Paper
 at any point of time, during the year is Rs. 20,000 Lacs (Rs. 20,000
 Lacs) and the outstanding as at 31st March 2012 is Rs. 8,000 Lacs (Rs.
 14, 500 Lacs)
 
 As per the directions of the Reserve Bank of India, the Company has
 created a floating charge in favour of IDBI Trusteeship Services Ltd.,
 the Trustee, on the Statutory Liquid Assets maintained by the Company.
 
 b.  Other Current Liabilities
 
 There is no amount due and payable to Micro and Small Enterprises , in
 terms of sec.22 of the Micro, Small, Medium Enterprises Development
 Act, 2006. The information has been determined on the basis of the
 information available with the Company.
 
 The figures stated under the unpaid Dividends, Unpaid matured Deposits
 and unpaid interest do not include any amount due to be credited to
 Investors Education & Protection Fund.
 
 XI NON CURRENT ASSETS
 
 a.  Intangible Asset:
 
 Computer Software is grouped under Intangible Asset and is being
 depreciated @40% under written down value method.
 
 b.  Long Term Loans & Advances:
 
 In the opinion of the Board of Directors, the Long Term Loans and
 Advances will have value, on realisation in the ordinary course of
 business, at least equal to the amounts at which they are stated in the
 accounts.
 
 XII CURRENT ASSETS
 
 Confirmation of balances from parties listed under Trade Receivable, is
 being obtained.
 
 XIII General
 
 Figures have been re-grouped, re-arranged and re-classified wherever
 necessary to conform to the revised Schedule VI Format under the
 Companies Act, 1956. The figures in brackets relate to the year ended
 31st March 2011.