1.  Contingent liabilities
 
 i) Liability in respect of units disposed off but in dispute - amount
 indeterminate.
 
 ii) The contingent liabilities in respect of claims lodged against the
 Corporation by ex-employees/pensioners and other claims ( 16 cases )
 are to the extent of Rs.5.53 crore (approx.) not acknowledged In addition
 to above there are 25 court cases/appeals filed by the
 employees/ex-employees against which amount is indeterminate.
 
 (iii) As per Moll signed by the Corporation with SIDBI on 25th March
 2004 and renewed on 7th August, 2009, certain benefits, relief and
 concessions were provided by SIDBI, to the Corporation which as per
 terms of the MoU can ipso-facto be withdrawn at the sole discretion of
 SIDBI in the event of non-compliance of terms and conditions of this
 MoU. There shall be a liability of Rs. 1384.35 lacs upto 31.05.2010, if
 the reliefs/concessions so given by the SIDBI are withdrawn. Further in
 view of One-time Settlement of outstanding refinance by SIDBI as
 discussed in note 3 below, the provision of accrued interest w.e.f.
 01.06.2010 onwards has not been made during the current financial year.
 
 (iv) A demand of Rs.1 59 crore (approx.) (after adjusting the refund of Rs.
 1.10 crore against assessment year 2005- 06) has been raised by the
 income Tax Department for the AYs 1981- 82 and 1982- 83 on account of
 excess amount refunded by income tax department in the earlier years
 against which appeals are pending with ITAT.
 
 (v) Sale Tax assessments for the financial years 2004-05, 2005-06,
 2006-07 & 2007-08 has been completed by the Assessing Authority,
 Panchkula & sales tax/VAT liability for these financial years has been
 assessed atRs.119.41 lacs. As the Corporation has filed appeals with
 higher authority so the above liability ofRs.119.41 lacs has not been
 provided in the accounts against these orders.
 
 (vi) Gratuity to staff is covered under the Group Gratuity Scheme of
 Life Insurance Corporation of India. The Board of Directors in its
 meeting held on 22.12.2011 has approved the enhancement of gratuity
 limit payable to staff ( w.e.f. 01-04-09 ) from 3.50 lakh to Rs. 10.00
 lakh. However, provision for shortfall on account of enhanced gratuity
 limit amounting to Rs.3.11 crore as per actuarial valuation of Life
 Insurance Corporation of India (LIC) has not been provided in the books
 of account, as the same is yet to be approved by State Government.
 
 2.  SIDBI vide their lettter dated 10.01.2011 has approved one time
 settlement of outstanding refinance amount of Rs.181.68 crore at Rs. 130
 crore with no further interest ( outstanding and future ) to be paid
 within three years subject to the condition that in the event of
 default(s) in the payment of OTS dues, SIDBI shall have right to
 reverse the waiver of dues as envisaged under OTS and restore the
 original liability, including the State Government Gaurantee. Keeping
 in view the above OTS, no provision of accrued interest w.e.f.
 01.06.2010 onwards has been made during the current financial year. The
 effect of principal waiver (Rs.51.68 crore) has not been given in the
 books of account and the effect of waiver shall be made in the year of
 final payment as per OTS, as the waiver is linked with the payment of
 OTS amount to be paid within a period of three years.  Against the
 total OTS amount of Rs. 130 crore, the Corporation has paid Rs. 43.33 crore
 upto 31.03.12 being the 1/3rd of the total OTS amount. During the
 Financial year 2012-13 the Corporation has also paid Rs.5.00 crore to
 SIDBI.
 
 3.  The report of the financial consultant namely IFCI Ltd. appointed
 by the Corporation to study the pros, and cons, of merger/winding up of
 the Corporation has been received. After considering the report of the
 financial consultant , the Board of Directors of the Corporation in its
 meeting held on 10 - 07 - 2012 has decided to complete the process of
 sale of properties/settlement of liabilities by 31- 03 - 2015. The
 Board of directors of the Corporation as well State Govt., Haryana have
 approved transfer of three properties of the Corporation to HSIIDC for
 Rs. 46.45 crore and disposal of other properties of the Corporation
 through open auction. The Corporation has requested the respective
 agencies ( HUDA/Housing Board etc.) for necessary permission for
 transfer / sale of properties. The steps in this direction are being
 taken by the Corporation.
 
 4.  Subvention amounting to Rs. 7,17,53,106 is receivable from State
 Govt, for payment of the minimum guaranteed dividend for the period of
 financial years 1996-97 to 2000-01 (upto 05.09.2000) against the
 guarantee given by the State Govt, under Section 6 read with Section 35
 of the State Financial Corporations Act, 1951 for which claim has been
 lodged with the State Govt.. Against above, the Corporation has since
 paid Rs. 1,65,56,484 to the retail investors/others from its own sources.
 The said amount has been shown under the head - Dividend Paid
 (adjustable against subvention to be received from State Govt.) in
 ‘Schedule ‘K'' - Other Assets''. The State Govt, guarantee has
 been withdrawn w.e.f. 06.09.2000 as per SFCs (Amendment) Act, 2000 and
 thereafter no dividend has been provided / declared.
 
 5.  The value of primary and collateral securities of all the Loans and
 Advances as on the date of Balance sheet is not re-assessed. However,
 adequate provision against non-performing assets (NPAs) has been made
 in the books of accounts as on 31.03.2012 as per the provisioning norms
 of SIDBI.
 
 6.  The Corporation advanced loans in the name of various equipment
 suppliers to lessees for purchase of Leasing Equipments. In some of the
 cases, the lessees have not submitted bills and other documents against
 purchase of these equipments. A sum of Rs. 5,71,48,124/- is still
 outstanding in this regard as on 31.03.2012 which has been shown under
 the head “ Loans for Leasing Equipments (Advance)'''' in Schedule -
 T - ‘Loans and Advances''. The Corporation has already initiated
 necessary action for recovery of this amount.
 
 Corporation has made additional provision of Rs.0.01 crore against
 standard assets and has written back excess provision ofRs. 1.59 crore
 against Non-performing loan assets during the Year.
 
 Provision on Leasing Portfolio has been provided at 100 percent of the
 portfolio. No additional provision has been made during the year, as
 the provision of Rs.13.96 crore has already been provided upto 31.03.11.
 
 7.  As per guidelines issued by SIDBI, provision towards diminution in
 the value of investments of Rs.3.10 crore in respect of listed shares and
 Rs.1.31 crore in respect of unlisted shares, totalling toRs.4.41 crore is
 required to be made upto 31.03.2012 against which the Corporation has
 already made provision of Rs.4.43 crore upto 31.03.2011. Therefore,
 provision of Rs.0.02 crore has been written back during the year which
 has been shown in Schedule ‘F'' - Provisions.
 
 8.  Amount of Rs.3,74,17,846/- shown as Building-Office under Schedule
 ‘ J ''- Fixed Assets includes Rs.68,06,312/- paid andRs.30,88,000/- to
 be paid by the Corporation against allotment of 4 suites in HUDCO
 Place, Andrews Ganj, New Delhi. Though the physical possession of the
 same is with Corporation, but title documents in this regard are yet to
 be executed in favour of the Corporation.
 
 9.  The Leasing Assets under Schedule ''J'' - Fixed Assets, have been
 depreciated on Capital Recovery Method.  The leased assets financed by
 the Corporation belong to the period prior to 01.04.2001, hence the
 equipment leasing has not been classified as Loans and Advances as per
 the Accounting Standard (AS-19) because it is applicable only on the
 leasing activities done after 01.04.2001.
 
 10.  The State Govt, has appointed Corporation as agent for
 disbursement of its various subsidies, seed money and agency loans.
 Unutilized amount against various subsidies has been shown under the
 sub head “(b)(1) State Govt. Funds (As An Agency) of Schedule ''E'' -
 Other Liabilities. Liabilities towards State Govt, against Agency &
 Seed Money Loans have been shown against ''(b)(2)'' under the said sub
 head.The balance of Agency and seed Money loans have been shown in
 Schedule ‘K'' - Other Assets. The amount of interest accrued in
 these loans is credited to respective interest account under Other
 Liabilities and debited to relevant loan account as the amount so
 received from the borrowers on this account is payable to the State
 Govt. These are outstanding since long and are subject to confirmation
 by the State Government.
 
 11.  During the year the Corporation has received State Government
 guarantee in respect of SLR Bonds already issued (61st series to 67th
 series). As on 31.03.2012 a sum of Rs. 15.00 crore is outstanding against
 65th to 67th series of SLR Bonds.
 
 12.  During the financial year 2007-08, the Corporation created
 deferred tax assets amounting to Rs. 33.50 crore on the basis of timing
 difference in depreciation and long term capital loss and a part of
 above amount was set off against the profits earned during the year
 2008-2009. During financial year 2010-11, the Corporation decided to
 stop fresh operational activities and a financial consultant was also
 appointed to study the pros, and cons, of merger/ winding up of the
 Corporation. The Comptroller & Auditor of General of India (CAG) in its
 Separate Audit Report (SAR) for the financial year 2010-11 observed
 that deferred tax assets were overstated and accumulated losses were
 understood by Rs. 30.80 crore. The Corporation while giving the comments
 on the above report, agreed to reverse the entries of deferred tax
 assets after the final decision on winding up/merger of the Corporation
 is taken by the Corporation / State Government Keeping in view the
 above facts the outstanding amount of deferred tax assets ofRs.30.80
 crore has been reversed by debiting the profit and loss account during
 the year.