Indiabulls Financial Services

1.  Overview:
 
 Indiabulls Financial Services Limited (the Company, IBFSL) was
 incorporated on January 10 2000 as a Private Limited Company to invest
 in various subsidiaries and also to invest, acquire, hold, purchase or
 procure equity shares, debentures, bonds, mortgages, obligations,
 securities of any kind issued or guaranteed by any company and provides
 loans and other credit facilities.
 
 On March 30,2001, the Company was registered under section 45-IA of the
 Reserve Bank of India (R.B.I.) Act, 1934 to carry on the business of a
 Non Banking Financial Company but does not have permission from the
 R.B.I.  to accept public deposits. The Company was converted into a
 public limited company pursuant to Section 44 of the Companies Act,
 1956 on February 03,2004.
 
 2.  Contingent liability not provided for in respect of: Indiabulls
 Financial Services Limited:
 
 (a) Corporate counter guarantees outstanding in respect of credit
 facilities availed by subsidiaries for the year ended March 31,2008
 amounting to Rs. 2,000,000,000 (Previous Year Rs. 6,400.000,000)
 against which collateral fixed deposits of Rs. Nil (Previous Year Rs.
 2,300,000,000) has been provided by the subsidiary for whom the counter
 guarantee was given.
 
 (b) Corporate counter guarantees outstanding in respect of assignment
 /Securitisation agreements entered oy companys subsidiary with
 different assignees as at March 31,2008 is Rs. 776,420,547 (Previous
 Year as at March 31,2007 Rs. 813,914,501) against which collateral
 deposit of Rs. 378,886 172 for year ended March 31,2008 (Previous Year
 Rs. 556,525,501) is being provided to the assignees by the companys
 subsidiary in the form of Fixed Deposit Receipts.
 
 (c) Corporate counter guarantee outstanding in respect of credit
 facilities availed by erstwhile subsidiary companies Rs. 6,050,000,000
 (Previous Year Nil) against which collateral fixed deposits of Rs.
 3,025,000,000 (Previous Year Nil) has been provided by those erstwhile
 subsidiaries for whom the counter guarantee was given.
 
 (d) Capital commitments as at March 31,2008 (net of advances) Rs.
 11,856,408 (Previous Year Rs 7,550,592).  Of the above, an amount of
 Rs. 971,726 (Previous Year Rs. Nil) is payable in US$.
 
 Indiabulls Housing Finance Limited:
 
 (a) Capital commitments in respect of interior works and acquisition of
 fixed assets at various branches as at the year end (net of advances
 paid) Rs. 63,307 (Previous Year Rs. 400,595).
 
 (b) Corporate counter guarantees outstanding in respect of assignment
 agreements entered by Companys holding company with different
 assignees is Rs. 26,448,954 (Previous Year Rs.35,901,864) against which
 collateral deposit of Rs. 102,468,800 (Previous Year Rs. 102,468,800)
 is being provided to the assignees by holding company in form of fixed
 deposit receipts.
 
 Indiabulls Commercial Credit Limited:
 
 (a) Corporate counter guarantee outstanding in respect of
 assignment/Securitisation agreements entered by companys holding with
 different assignees as at March 31,2008 is Rs. 73,008,195 (Previous
 Year Rs. Nil) against which collateral deposit of Rs. 127,102,648 for
 year ended March 31,2008 (Previous Year Rs. Nil) is being provided to
 the assignees by the companys holding in the form of Fixed Deposit
 Receipts.
 
 Indiabulls Securities Limited:
 
 (a) Capital commitments in respect of interior works and acquisition of
 fixed assets as at the year end (net of advances) Rs. Nil (Previous
 Year Rs. 15.401,012).
 
 (b) Bank guarantees outstanding in respect of credit facilities availed
 from banks Rs. Nil (Previous Year Rs.  4,600,000,000).
 
 3.  The Company has complied with all the Non-Banking Financial
 (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
 Bank) Directions, 2007 as issued by the Reserve Bank of India vide
 notification dated February 22, 2007, except for the compliance of
 group exposure norms for which the company had received specific
 extension of time up to March 31, 2008 for compliance of such norms
 vide RBI letter No.: DNBS.CO.ZMD-N/204/55.09.016/2007-08 dated July
 04,2007.
 
 4.  Restructuring of the Company:
 
 Under Sections 391 - 394 of the Companies Act, 1956, the Board of
 Directors of the Company at their meeting held on February 15,2007 had
 approved The Scheme of Arrangement (the Scheme) providing for the
 amalgamation of Indiabulls Credit Services Limited (ICSL) with the
 Company and the demerger of the securities broking and advisory
 business (a part of fee income) of the Company as a going concern, to
 Indiabulls Securities Limited (ISL).  The Scheme had been sanctioned
 by the Honble High Court of Judicature at Delhi on November 23,2007.
 Upon coming into effect of the Scheme on December 24,2007 and with
 effect from the Appointed Date on April 01,2007, ICSL stands
 amalgamated with the Company and the securities broking and advisory
 business (a part of Fee Income) of the Company stands demerged from the
 Company and transferred to and vested in ISL on a going concern basis.
 As per the Scheme, with effect from the Appointed date on April
 01,2007:
 
 Terms of Amalgamation of Indiabulls Credit Services Limited
 
 i) In terms of the Scheme, all business activities of ICSL carried out
 on or after the Appointed Date are deemed to have been carried out by
 ICSL on behalf of the Company on a going concern basis and
 consequently, all profits and losses of ICSL and related taxes paid,
 are deemed to be the profits, losses and taxes of the Company. The
 Scheme has accordingly been given effect to from the Appointed Date
 i.e. April 01,2007 in the third quarter ended December 31,2007 when the
 Court Order sanctioning the Scheme was received by the Company.
 
 ii) The Company has issued and allotted 25,680,708 shares of Face Value
 Rs. 2 each amounting to Rs.  51,361,416 to the equity shareholders of
 ICSL other than Indiabulls Financial Services Limited, whose names were
 recorded in the register of members and records of the depository as
 members of ICSL, on December 24, 2007, in the ratio of 3 (three) equity
 shares in IBFSL of Rs. 2 each credited as fully paid up for every 10
 (ten) equity shares of Rs. 10 each (the Share Exchange Ratio) held by
 such equity shareholder in ICSL.
 
 iii) The book value of investments held by IBFSL in ICSL amounting to
 Rs. 2,113,525,000 stands cancelled.
 
 iv) All the assets and liabilities as on the Appointed Date, recorded
 in the books of ICSL have been recorded by the Company at their book
 values as appearing in the books of ICSL. All incomes and expenses from
 the Appointed Date relating to ICSL have been incorporated in the
 accounts of the company. Accordingly, the figures in respect of the
 current financial year are not comparable with those of the previous
 financial year.
 
 v) The Reserve Fund in the books of ICSL amounting to Rs. 214,180,291,
 created as per Section 45IC of the Reserve Bank of India Act, 1934 and
 outstanding as on the Appointed Date have been transferred and credited
 to Reserve Fund of the Company created as per Section 45 IC of the
 Reserve Bankof India Act, 1934.
 
 vi) The Securities Premium Account in the books of ICSL aggregating to
 Rs. 2,717,569,548, being the Securities Premium in the books of ICSL
 outstanding as on the Appointed Date amounting to Rs.  2,661,200,436
 and the Securities Premium received on ICSL ESOS exercised subsequent
 to the Appointed Date amounting to Rs. 56,369,112, have been
 transferred and credited to the Securities Premium Account of the
 Company.
 
 vii) The surplus in the Profit and Loss Account of ICSL amounting to
 Rs. 870,900,645, as on the Appointed Date have been transferred and
 credited to Profit and Loss Account of the Company.
 
 viii) After adjusting for the face value of shares issued as per
 sub-clause (ii) above and the book value of net assets taken over as
 per sub-clause (iv), after accounting for the cancellation in
 sub-clauses (iii) above and after crediting the Reserve Fund,
 Securities Premium Account and Profit & Loss Account as per sub-clause
 (v), (vi) and (vii) above, a net amount of Rs. 375,862,816 has been
 reduced from the opening surplus of Profits Loss Account.
 
 ix) The erstwhile wholly owned subsidiaries of ICSL i.e. Indiabulls
 Collection Agency Limited and Fast Loan Services Limited are now wholly
 owned subsidiaries of IBFSL and are held at book values of Rs.
 10,500,000 and Rs. 500,000 respectively.
 
 x) All tax assets and liabilities of ICSL as on the Appointed Date have
 been incorporated in the books of accounts of the Company.
 
 xi) As a result of the above, the earnings per share and the figures in
 respect of the current year are not comparable with those of previous
 year.
 
 Terms of Demerger of securities broking and advisory business (a part
 of fee income)
 
 i) In terms of the Scheme, all business activities of the Company,
 relating to the security broking and advisory business, carried out on
 or after the Appointed Date are deemed to have been carried out by the
 Company on behalf of ISL on a going concern basis and consequently, all
 profits and losses of the Company and related taxes paid, relating to
 the security broking and advisory business, are deemed to be the
 profits losses and taxes of ISL. The Scheme has accordingly been given
 effect to from the Appointed Date i.e. April 01,2007 in the third
 quarter ended December 31,2007 when the Court Order sanctioning the
 Scheme was received by the Company.
 
 ii) The book value of investments held by IBFSL in ISL amounting to Rs.
 197,169,757, stands cancelled.
 
 iii) Assets comprising of fixed assets, investment (in Indiabulls
 Commodities Private Limited, held at a book value of Rs. 6,000,000),
 sundry debtors, loans and advances, security deposits and cash
 aggregating to Rs.  461,032,891, current liabilities amounting to Rs.
 272,156,401 (including general purpose liabilities amounting to
 Rs.250,269,203) and proportionate liability of Rs. 45,946,335 in
 respect of Preference Share Capital have been transferred to ISL. A net
 amount of Rs.340,099,912 has been adjusted against Securities Premium
 Account.
 
 iv) On August 02, 2006, the Company had issued and allotted 9,966,667
 Cumulative, Redeemable, Non Convertible Preference shares at Rs. 300
 per share to Oberon Limited. The face value per preference share had
 been reduced to Rs.162 per preference share on the demerger of the real
 estate business of the Company to Indiabulls Real Estate Limited in the
 previous year. The face value of the existing 9,966,667 Cumulative,
 redeemable, non-convertible Preference Shares of face value of Rs 162
 each of the Company has been allocated proportionately as per the ratio
 of the net worth of the Demerged Undertaking to the net worth of the
 Company immediately before the Demerger - i.e. 2.84% and accordingly,
 ISL has issued and allotted 9,966,667 Cumulative, redeemable,
 non-convertible preference shares of a face value of Rs. 4.61 per share
 (being 2.84% of the erstwhile face value of Rs.162 per share) to the
 respective preference shareholder of the Company as on the record date.
 The terms and conditions, including dividend and redemption, on which
 the Companys preference shares were issued and allotted would mutatis
 mutandis apply to the preference shares issued by ISL. The dividend
 rate on these preference shares has increased from 5% to 10% with
 effect from February 02,2008 in terms of its issue by the Company. The
 preference dividend for the half year ended September 30,2007 @ 5% on
 the face value of Rs. 162 had already been declared and paid by the
 Company. Consequent to the transfer of Preference Share Capital to ISL
 amounting to Rs. 45,946,335, an amount of Rs. 1,343,873 being ISLs
 share of proportionate dividend including corporate dividend tax
 thereon on the demerged face value of Rs. 4.61 each for the half year
 ended September 30,2007 has been charged to ISL.
 
 v) An amount of Rs. 93,001,590 being Advisory income amounting to Rs.
 108,500,000, net of expenses amounting to Rs. 14,154,537 and preference
 dividend and corporate dividend tax thereon amounting to Rs. 1,343,873,
 for the current year, which had been recorded by the Company, as the
 business had been run by IBFSL in trust on behalf of ISL, has been
 transferred to ISL.
 
 vi) Consequent upon the Scheme being given effect to by the Company,
 the Company had declared January 08, 2008 as the Record Date for
 determining the eligible shareholders for allotting shares of ISL. Such
 eligible shareholders (including the promoters of IBFSL) have been
 allotted equity shares by ISL. The shares of ISL have since been listed
 on the Stock Exchanges on April 02,2008.
 
 vii) As a result of the above, the earnings per share and the figures
 in respect of the current year are not comparable with those of
 previous year.
 
 5.  Changes in capital structure during the year ended March 31,2008:
 
 a.  On April 11,2007, the Company has converted 11,500,000 Preference
 Shares into Equity Shares at Rs. 2 each. As a result of the same, the
 paid up equity share capital of the Company has increased by Rs.
 23,000,000 and Securities Premium account by Rs. 1,840,000,000.
 
 b.  On April 23, 2007 and November 24, 2007, the Promoters exercised
 their options in respect of the Companys Share Warrants II, allotted
 to them on June 08,2006, and the Company received a sum of Rs.
 1,213,800,000 being the balance exercise money due. An amount equal to
 10% of the Share Warrants II exercisable amounting to Rs 134,900,000
 had been paid upfront at the time of subscription in the previous year
 and the same was adjusted against conversion price paid for the
 allotment of the equity shares on conversion of the said warrants.
 Consequently, the Board of Directors of the Company allotted 10,000,000
 Equity Shares to the Promoters (5,000,000 Equity Shares of face value
 of Rs. 2 each at a price of Rs. 134.87 per share to its Promoters on
 conversion of the said Share Warrants II at their meetings held on
 April 23, 2007 and November24,2007 each).
 
 c.  On May 16, 2007 the Company has issued 22,970,903 Global Depository
 Receipts (GDRs) which were listed at the Luxembourg Stock Exchange, at
 an offer price of US$ 13.06 per GDR. Each GDR represents 1 Equity Share
 of Rs. 2 each of the Company.
 
 d.  On December 24,2007 the Company has issued 25,680,708 Equity Shares
 to the minority shareholders of Indiabulls Credit Services Limited
 under the scheme of arrangement - refer note B .4 above.
 
 e.  On March 06,2008, the Company has increased its Authorised Capital
 to Rs. 15,434,750,000 divided into 2,000,000,000 Equity Shares of Rs. 2
 each, 25,000,000 Preference Shares of Rs. 300 each and 25,000,000
 Preference Shares of Rs. 157.39 each.
 
 As a consequence of the above and the Scheme of Arrangement (Refer note
 B. 4 above) as at March 31 2008, the Issued, Subscribed and Paid-up
 Equity Share Capital of Face Value Rs. 2 and Preference Share Capital
 of Face Value Rs. 157.39 of the Company stands at Rs. 506.853 978 and
 Rs. 1,568,653,719 respectively.
 
 6.  Minority Interest includes:
 
 1) As at March 31,2008 3,233,696 (Previous Year 3,233,696) Equity
 Shares of Rs. 10 each fully paid up issued by subsidiary company
 Indiabulls Finance Company Private Limited.
 
 2) As at March 31,2008 Nil (Previous Year 82,660,865) Equity Shares of
 Rs. 10 each fully paid up issued by subsidiary company Indiabulls
 Credit Services Limited (ICSL).
 
 3) Proportionate share in the movements in Reserves & Surplus of the
 subsidiaries.
 
 7.  Goodwill / Capital Reserve:
 
 As at the beginning of the year, the Company had recorded Capital
 Reserve on consolidation of Rs. 151,244,306.  Consequent to the Scheme
 of arrangement becoming effective on December 24,2007 and with effect
 from the Appointed Date on April 01,2007, the securities, broking and
 advisory business of the company stood demerged from IBFSLand got
 transferred to and vested in Indiabulls Securities Limited on a going
 concern basis and ICSL stands merged with the Company. Capital Reserve
 was adjusted to the extent of Rs. 292,359,132 on account of the same.
 Afterthe above adjustment the net capital reserve on consolidation has
 increased to Rs. 443,603,438.
 
 8.  Details of Assignment/ Securtisation of loans undertaken by the
 Group: Indiabulls Financial Services Limited:
 
 (a) The Company (including erstwhile Indiabulls Credit Services
 Limited) has entered into various agreements for the
 assignment/securitisation of loans with assignees, wherein it has
 assigned/securitised a part of its secured and unsecured loan portfolio
 amounting to Rs. 17,785,785,562 upto March, 31, 2008, being the
 principal value outstanding. The Companys subsidiaries Indiabulls
 Commercial Credit Limited (ICCL) and Indiabulls Housing Finance
 Limited (IHFL) have issued corporate guarantees aggregating to Rs.
 99,457,149 in favour of the assignees. The Company does not anticipate
 any losses on account of the said corporate guarantees, in the event of
 the rights under guarantee being exercised by the assignees. Fixed
 deposits amounting to Rs. 486,154,854 is provided by Indiabulls Real
 Estate Limited to an assignee against principal value of Rs.
 3,283,325,043 as cash collateral.
 
 (b) The Company (including erstwhile Indiabulls Credit Services
 Limited) assigned/securitised various loan portfolios to banks and/or
 other institutions which are derecognised in the books of accounts of
 the Company in terms of accounting policy mentioned at schedule 0 (A)
 (X) above and the purchase consideration not received upfront is
 recognised as deferred purchase consideration under loans and advances.
 Due to foreclosures and repurchase transactions with different
 assignees during the year, the company has reinstated the repurchased
 loan balances in the books of account aggregating to Rs. 523,295,134.
 The Company has also reversed the proportionate upfront income so
 accounted on assignment/securitisation.  The Company has recognized
 income on assignment of Rs. 1,302,218,502 which is net of income
 reversal on account of foreclosure and repurchase of assigned loans
 during the year amounting to Rs. 527,155,317 in the Profit & Loss
 Account.
 
 Indiabulls Housing Finance Limited (IHFL).
 
 (a) Indiabulls Housing Finance Limited has entered into various
 agreements for the assignment/securitisation of loans with assignees,
 wherein it has assigned/securitised a part of its secured loan
 portfolio amounting to Rs. 10,169,722,057 (Previous Year Rs.
 3,337,613,307) upto March 31, 2008, being the principal value
 outstanding. The Companys holding company, Indiabulls Financial
 Services Limited (IBFSL) and its subsidiary have issued various
 corporate guarantees aggregating to Rs. 901,827,085 (Previous Year Rs.
 366,846,621) in favour of the assignees. The Company does not
 anticipate any losses on account of the said corporate guarantees, in
 the event of the rights under guarantee being exercised by the
 assignees. Cash Collateral in form of fixed deposits amounting to Rs.
 177,657,173 (Previous Year Rs. 129,995,592) is provided by Indiabulls
 Financial Services Limited and investments in mutual funds amounting to
 Rs.  75,015,191 (Previous Year Rs. NIL) is provided by Indiabulls
 Capital Services Limited to some assignees against principal value of
 Rs. 3,688,009,000 (Previous Year Rs. 2,078,137,245).
 
 (b) The Company assigned/securitised various loan portfolios to banks
 and/or other institutions which are derecognised in the books of
 accounts of the Company in terms of accounting policy mentioned at
 Schedule O (A) (X) above and the purchase consideration not received
 upfront is recognised as deferred purchase consideration under Loans
 and Advances. The Company, due to foreclosures and repurchase
 transactions with different assignees during the year, has reinstated
 the repurchased loan balances in the books of account aggregating to
 Rs. 47,089,093 (Previous Year Rs. 112,532,884). The Company has also
 reversed the proportionate upfront income so accounted on
 assignment/securitisation. The Company has recognised income from
 assignment of Rs. 461,901,036 (Previous Year Rs. 727,057,970) net of
 income reversal on account of foreclosure and repurchase of assigned
 loans during the year amounting to Rs. 324,991,714 (Previous Year Rs.
 29,473,944) in the Profit & Loss Account.
 
 9.  Secured loans from banks and others include:
 
 Vehicle Loans for Rs. 15,875,480 (Previous Year Rs. 56,100,601) from
 Banks and Secured loans from others Rs.  38,819,981,874 (Previous Year
 Rs. 3,301,820,966) secured against hypothecation of vehicle and
 balances of receivables lying in loans and other credit facilities, and
 pledge of current assets as collateral against exposure / loan given
 respectively.
 
 10.  Secured Loans and Other Credit Facilities given to customers
 amounting to Rs. 60,768,693.048 are secured against securities both
 tradable and listed, Commercial Vehicles, Tractors, Two Wheelers, Gold
 and Mortgage of Properties and personal guarantees accepted as
 collateral security.
 
 Secured Loans comprising loan against shares given to customers are
 secured against
 
 - securities both tradable and listed and;
 
 - equitable mortgage of property / properties or registered mortgage of
 property / properties, securities.
 
 Secured loans in the nature of Commercial Vehicle, Tractor finance, Two
 Wheeler are secured against hypothecation of the respective vehicle.
 Other secured loans are secured by equitable mortgage of property or
 registered mortgage of property / properties, securities and personal
 guarantees accepted as collateral security Unsecured Loans comprise of
 Business Loans, Personal Loans, Personal Loans Plus, Small Business
 Loans Big Ticket Unsecured Loans given to customers and Inter corporate
 Deposits (ICD) aggregating to Rs.  16,846,793,944.
 
 Provision for Loans and Other Credit Facilities in respect of Unsecured
 and Secured Loans granted is made as per the Prudential Norms
 applicable to Non-Banking Finance Companies. The Company has made
 additional provision based on the underlying risk factors and on the
 best estimates of the management taking into consideration the
 outstanding balances / ageing of the loans.
 
 11.  Fixed deposits includes:
 
 (a) As on March 31,2008 Rs. Nil (March 31,2007 Rs. 2,300,000,000)
 pledged against bank guarantees issued by various banks for base
 capital and additional base capital
 
 (b) Fixed Deposit as on March 31, 2008 amounting Rs. 5,442,972,830
 (March 31, 2007- Rs 1.536,379.365).  are placed as collateral with bank
 for assignment / securitization deals on which assignees have a hen
 
 (c) Fixed Deposit as on March 31, 2008 amounting Rs. 9,000,000,000
 (March 31, 2007 Rs 50.000.000). are placed as collateral with bank for
 cash credit facility
 
 12.  Loans and Advances include loans amounting to Rs. 3,735,757
 (Previous Year Rs NIL), being loans given by us subsidiary Company to
 two of its employees under normal terms and conditions as applicable to
 employees.  prior to them being appointed as directors of subsidiary
 Company w.e.f. January 15, 2008. The recovery of principal and interest
 thereon is as per stipulations
 
 13.  The profit on squaring off of erroneous transactions as on March
 31,2008 is Rs. Nil (March 31.2007 loss Rs 2,171,724 (Net)) has been
 adjusted to Profit and Loss account.
 
 14.  Disclosures under the Micro, Small and Medium Enterprises
 Development Act, 2006:
 
 (a) An amount of Rs. Nil and Rs. Nil was due and outstanding to
 suppliers as at the end of the accounting year on account of Principal
 and Interest respectively.
 
 (b) No interest was paid during the year in terms of section 16 of the
 Micro, Small and Medium Enterprises Development Act, 2006 and no amount
 was paid to the supplier beyond the appointed day.
 
 (c) No interest is payable at the end of the year other than interest
 under Micro, Small and Medium Enterprises Development Act, 2006.
 
 (d) No amount of interest was accrued and unpaid at the end of the
 accounting year.
 
 The above information and that given in Schedule H - Current
 Liabilities and Provisions regarding Micro, Small and Medium
 Enterprises has been determined to the extent such parties have been
 identified on the basis of information available with the Company. This
 has been relied upon by the auditors.
 
 15.  The Company has not entered into any derivative instrument during
 the year. The Company does not have any foreign currency exposures
 towards receivables, payables or any other derivative instrument that
 have not been hedged.
 
 16.  As per the best estimate of the management, no provision is
 required to be made as per Accounting Standard (AS) 29 - Provisions,
 Contingent Liabilities and Contingent Assets as notified by Companies
 (Accounting Standards) Rules, 2006, in respect of any present
 obligation as a result of a past event that could lead to a probable
 outflow of resources, which would be required to settle the obligation.
 
 17.  Pursuant to Accounting Standard (AS) 15 (Revised) - Employee
 Benefits, as notified by Companies (Accounting Standards) Rules, 2006-
 issued during the year, provision for employee remuneration and
 benefits has been made in accordance with revised AS 15. There has been
 no impact on reserves or profit during the period due to the above
 implementation.
 
 18.  During the year, the Company has entered into a Memorandum of
 Understanding with MMTC Limited, the largest commodity trading business
 in India to establish a Commodities Exchange with 26% ownership with
 MMTC. Whilst the Ministry of Commerce, Government of India has given
 its in-principle approval, the formal approval of the Forward Markets
 Commission is awaited.
 
 19.  The Company had, during the year, entered into an MOU with
 Sogecap, the life insurance arm of Societe Generate of France, for its
 upcoming life insurance Joint Venture. Sogecap will bring in Rs 150
 crore to subscribe to 26% of the paid up capital in the Joint Venture.
 The Company has already obtained approval from the Reserve Bank of
 India for holding 49.50% equity stake in the life insurance venture,
 and has also been issued R1 by the Insurance Regulatory and Development
 Authority (IRDA), the insurance regulator, for initiating necessary
 regulatory approvals.  Subsequent to the year end, the Company has
 entered into a Joint Venture Agreement with Sogecap. for its upcoming
 life insurance joint venture formalizing the earlier MOU. The Company
 together with its promoters / associates will hold 74% while Sogecap
 will hold the remaining 26% in the JV
 
 20.  During the year, Securities and Exchange Board of India (SEBI) has
 approved setting up of an Asset Management Company and a Trustee
 Company for setting up a Mutual Fund. As a result thereof, the Company
 is in the process of setting up of an Asset Management Company and a
 Trustee Company for setting up the Mutual Fund.
 
 21.  In respect of amounts as mentioned under Section 205C of the
 Companies Act. 1956, there were no dues required to be credited to the
 Investor Education and Protection Fund as on March 31,2008.
 
 22.  Previous years figures have been regrouped and / or re-arranged
 wherever necessary to confirm to current years groupings and
 classifications.