ILandFS Investment Managers

1) Contingent Liabilities
 
 Claims against the Company 
 not acknowledged as debts:                             (Amount Rupees)
                                    The March 31, 2009  March 31, 2008
 
 Income Tax Demands
 Company has preferred appeals 
 against the income tax demands and         35,604,531      29,510,777
 same are pending with CIT (Appeals)
 
 a) The Company calculates the employee compensation cost using the
 Intrinsic Value of the Options. The Exercise Price of the Options
 granted is generally based on the Market Price as on the date of the
 Grant. The Company had issued 164,237 Options at an exercise price
 lower than the market price and accordingly, the Intrinsic Value of
 those Options was Rs 11,496,590/-, which is amortised over the vesting
 period. Accordingly, an amount of Rs Nil (Previous Year Rs 1,637,870/-)
 is charged to the Profit and Loss account for the year
 
 b) No Options were granted during the year and hence calculation of the
 weighted average Fair Value of Options granted during the year (based
 on the calculation of external valuers using Black Scholes Model) is
 not applicable
 
 c) In the event the Company had used the Fair Value of Options for
 calculating the employee compensation cost, the employee compensation
 cost of the Options granted would have been Rs 8,744,243/- which would
 have reduced the Profit before Tax of the Company by Rs 8,744,243/- and
 the Basic and Diluted EPS would have reduced to Rs 8.89 and Rs 8.80
 respectively
 
 d) No Options were exercised during the year and hence calculation of
 the weighted average Market Price at the date of exercise, for options
 during the year is not applicable
 
 e) The range of Exercise Price for Stock Options outstanding as at
 March 31, 2009 is Rs 24/- to Rs 96/- and the weighted average remaining
 contractual life is 3.2 years
 
 Method and significant assumptions used to estimate the Fair Value of
 the Options for ESOP 2004 and ESOP 2006:
 
 The Fair Value of Options has been calculated by an independent valuer.
 The valuation has been done using the Black-Scholes model based on the
 assumptions, which are as below:
 
 i) Expected Life of Options is the period within which the Options are
 expected to be exercised. The Options can be exercised immediately on
 vesting. All the Options vest at the end of one to three years from the
 date of Grant. The Options can be exercised at any time upto 4 years
 from the vesting date
 
 Considering above the average life of option period has been assumed as
 expected life of Options ii) Risk free interest rate has been assumed
 at 7.5%
 
 ii) Share Price is the market price on the National Stock Exchange
 with reference to the Grant date
 
 iii) Volatility is calculated based on period to represent a consistent
 trend in the price movement after adjusting abnormal events, if any v)
 Expected dividend yield has been calculated as follows:
 
 Dividend per share / Market price of the share on the Grant Date
 
 2) Deferred tax provision has been made in accordance with the
 requirements under the Accounting Standard - 22 “Accounting for Taxes
 on Income”
 
 a) During the current year ended March 31, 2009 the timing difference
 has resulted in a net deferred tax liability of Rs 11,318,000/-
 
 3) Unclaimed dividend of Rs. 7,412,578/- relates to the period from FY
 2001-2002 to FY 2007-2008. During the year, an amount of Rs. 653,128/-
 has been transferred to Investor Education and Protection Fund
 pertaining to FY 2000-2001
 
 4) Segment Reporting
 
 The Company is in the business of providing asset management and other
 related service. As such, there are no separate reportable business
 segment or geographical segment as per Accounting Standard 17 on
 “Segment Reporting”. It is considered appropriate by the Management to
 have a single segment i.e. “Asset Management and other related service”
 
 5) Disclosure as required under Accounting Standard -15 on “Employee
 Benefits” is as under:
 
 a) The Company has recognised Rs.  8,793,833/- (Previous Year - Rs
 6,431,671/-) in Profit and Loss Account under Companys Contribution to
 Provident Fund, which is maintained with the office of Regional
 Provident Fund Commissioner
 
 6) The Company has entered into Operating Lease arrangements towards
 provision for vehicles and Business Centre arrangement towards use of
 office facility. The minimum future payments during non-cancellable
 periods under the foregoing arrangements in the aggregate for each of
 the following periods is as follows:
 
 (i) Not later than one year - Rs. 16,414,655/-
 
 (ii) Later than one year and not later than five years - Rs.
 32,086,863/-
 
 (iii) Later than five years - Rs. Nil
 
 During the current year ended March 31, 2009 the lease payments
 recognised in the Profit and Loss account for the aforesaid arrangement
 amounts to Rs 23,267,027/-
 
 7) On the basis of the information available with the Company there
 are no suppliers registered under the Micro, Small, Medium Enterprises
 Development Act, 2006
 
 8) Figures for the previous year have been regrouped and rearranged
 wherever considered necessary