1.  AS-15 - Employee Benefits
 
 The estimates of rate of escalation in salary considered in actuarial
 valuation, take into account inflation, seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 The expected rate of return is determined considering several
 applicable factors, mainly the composition of plan assets held,
 assessed risks, historical results of return on plan assets and the
 company''s policy for plan assets management. The retirement benefit
 liability in respect of staff on deputation from Indian Bank is borne
 by Indian Bank.
 
 The company has contributed Rs.7.92 lakhs towards Gratuity liability in
 the year 2010-11.
 
 2. AS-17-Segment Reporting
 
 The business segments have been identified as the Primary Segment
 considering the nature of service, organisational structure and
 internal financial reporting system. The services of the reported
 domestic business segments are classified as Fund Based” and Fee
 Based” activities. Fund Based activities consists of Leasing, Hire
 purchase, Intercorporate deposits and Investments. Fee Based activities
 include Merchant Banking, Stock Broking, Depository Participant
 services, distribution of Financial Products and allied activities.
 There is no Secondary Reportable Segment
 
 3. AS-18 - Related Party Transactions
 
 The Company has identified all related parties and transactions with
 the related parties as per details given below:
 
 Name                          Relationship
  
 Indian Bank                   Holding Company
 
 Ind Bank Housing Limited      Fellow Subsidiary
 
 Indfund Management Limited    Fellow Subsidiary
 
 Key Management Personnel      Mr. G. Rangarajan, President & Wholetime
                               Director
 
 The transactions with Holding company and fellow subsidiaries has not
 been disclosed in view of exemption for State- controlled enterprises
 from making any disclosure pertaining to their transactions with other
 related parties which are also state-controlled enterprises.
 
 The related party transactions with key management personnel have been
 disclosed in Managerial Remuneration - Note 15 of Notes on Accounts.
 
 4. AS-19- Leases
 
 In case of assets taken on lease
 
 The lease agreements provide for option to the company to renew the
 lease period after the non-cancellable period. There are no
 exceptional/restrictive covenants in the lease agreements.
 
 5. AS-22 - Provision for Taxation
 
 a) In view of losses (as per Income tax) as well as book losses (as per
 MAT computation) no provision for tax is required for the year.
 
 b) No provision is made for the disputed demands of income tax keeping
 in view the judicial pronouncements and/or legal opinion on the issues.
 
 6. AS-24 - Discontinued operations
 
 The Company had discontinued fund-based activities consequent to SEBI
 regulations coming into force with effect from December 1997 and had
 decided to undertake only fee-based activities. The existing fund based
 exposures as on December 1997 are continued to run down to their
 contracted period. The Company had obtained cancellation of
 registration as NBFC from RBI consequent to repayment of fixed deposits
 and transfer of unclaimed fixed deposits to an escrow account with a
 nationalised bank for repayment as and when claimed. The Company is now
 governed only by SEBI regulations.
 
 7. AS-29-Contingent Liablities
 
 A. Disputed demand on taxes
 
 i) Income Tax                            Rs.Lakhs
 
                         2010-11
 Asst Year       Tax Demand      Interest     Total
 
 1996-97               0.00          0.00      4.79
 
 1997-98              55.35          0.37     55.72
 
 1998-99              52.42          5.42     57.84
 
 2000-01             100.14         94.20    194.34 
 
 2001-02             311.31        139.07    450.38 
 
 2003-04              11.33         10.48     21.81 
 
 2004-05             232.58        160.90    393.48
 
 2005-06             181.56         58.60    240.16 
 
 2006-07             237.51         78.38    315.89
 
 2007-08             778.39        254.95   1033.34 
 
 2008-09             881.37        272.39   1153.76
 
 Total              2841.96       1074.76   3916.72
 
                  
 
                              2009-10
 Asst Year         Tax Demand      Interest    Total 
 1996-97                 4.79          0.00     4.79         
 
 1997-98                55.36          0.37    55.73 
 
 1998-99               194.78        259.12   453.90
 
 2000-01               242.95        345.16   588.11
 
 2001-02               311.30        136.07   450.37
 
 2003-04                11.33         10.48    21.81
 
 2004-05               232.58        160.90   393.48
 
 2005-06               181.56         58.60   240.16
 
 2006-07               237.51         78.38   315.89 
 
 2007-08               881.37        272.39  1153.76                        
 
 2008-09                 0.00          0.00     0.00
 
 Total                2250.55       1307.03  3557.58         
 
 
 ii) Interest Tax         
                               Rs.Lakhs
                             2010-11   
 Asst Year      Tax Demand    Interest   Total
 
 1996-97             17.21       18.45   35.66
 
 1997-98              5.01       11.24   16.25 
 
 2000-01              3.36        2.45    5.81
 
 Total               25.58       32.14   57.72
 
 Asst Year      Tax Demand     Interest  Total
 
 1996-97             17.21        18.45  35.66
 
 1997-98              5.01        11.24  16.25
 
 2000-01              3.36         2.45   5.81
 
 Total               25.58        32.14  57.72
 
 
 iii) Sales Tax demand disputed in appeal - Rs. 110.72 lakhs (Previous
 year Rs. 110.72 lakhs).
 
 B Guarantees - Counter guarantee issued to bank for guarantees -
 Rs.200.00 lakhs (Previous Year- Rs.200.00 lakhs) 
 
 C Estimated amount of contracts remaining to be executed on
 capital account and not provided for - Rs. 124 Lakhs (Previous 
 Year - Nil ).
 
 8.  Loans from lndian Bank is Secured by first charge on Assets given on
 Lease, Stock on Hire & other Current Assets and has been fully repaid 
 during the year 2007-08. During the previous year the company had 
 received a claim from Indian Bank for payment of interest of Rs.2397.48
 lakhs (involving a waiver of Rs. 1808.84 lakhs) under the right of 
 recompense clause, out of the interest waived by them in the past 
 aggregating to Rs.4206.32 lakhs. The company has represented to the 
 Bank for payment of the same over a period of time based on the 
 profits generated. The bank has permitted the company to pay the 
 balance Rs 1147.48 lakhs in instalments on or before 30.9.2013. Out 
 of this, the company has paid Rs.250 lakhs (previous year Rs.1250
 lakhs) during the year which has been considered in the accounts. 
 The balance interest payable to IndianBank is Rs 897.48 lakh.
 
 9.  As at March 31, 2011, the Company has no outstanding dues to
 medium and small enterprises. There is no liability towards interest 
 on delayed payments under the Micro, Small and Medium Enterprises 
 Development Act, 2006 during the year.
 
 10.  Managerial Remuneration:
 
 President and Whole Time Director of the Company is on deputation from
 Indian Bank and the remuneration is in accordance with the service
 rules of the said Bank and also in terms of appointment as Whole Time
 Director'' by the shareholders of the Company.
 
 11.  Profit on sale of investments (Net) under investment income
 includes loss on sale of investments of Rs. 108.79 lakhs (Previous 
 year - Profit of Rs.332.15 lakhs). Loss incurred under Proprietary 
 Trading of Rs.189.80 lakhs (Previous year - Profit of Rs.29.44 lakhs) 
 and income from reversal of provisions made for investments no longer 
 required of Rs.207.52 lakhs (Previous year Rs.289.21 lakhs).
 
 12.  In the opinion of the Management all Fixed Assets, Current Assets,
 Loans & Advances will have value on realisation in the ordinary course
 of business atleast equal to the amounts at which they are stated in
 the accounts.
 
 13.  The previous year''s figures in the Balance Sheet, Profit and Loss
 Account and Cash Flow Statement have been regrouped and reclassified,
 wherever necessary, to conform to the current year''s classification.