India Infoline

1) At balance sheet date, there were outstanding commitments for
 capital expenditure (net of advances) to the tune of Rs. 76,135,859
 (previous year Rs. 22,371,790) of the total contractual obligation
 entered during the year.
 
 2) The Company does not have contingent liabilities not provided for
 other than an income tax matter amounting to Rs. 3,413,731. The company
 has filed an appeal with the Income Tax Appellate Tribunal against the
 said demand.
 
 3) The Company has provided a Corporate Guarantees on behalf of wholly
 owned subsidiary India Infoline Commodities Limited amounting to Rs.
 129,000,000. (previous year 80,000,000)
 
 4) The Company commenced buy-back of equity shares through open market
 using Stock Exchange system pursuant to the resolution of the Board of
 Directors passed at the Meeting held on November 29, 2008 and Public
 Announcement released on December 5, 2008. As on March 31, 2009 the
 Company had bought Back 2,557,915 Equity Shares of Rs. 2 each utilizing
 Rs.108 million and the same stand extinguished.
 
 5) 11,000,000 Equity Warrants issued on Preferential Basis to seven
 identified persons including the Promoters on July 04, 2007 had lapsed
 during the year due to non-exercise of warrants. The advance received
 on the above Equity Warrants amounting to Rs. 484 million stands
 forfeited by the Company and the said amount has been credited to
 Capital Reserves.
 
 6) As disclosed in the Annual Report for 2007-08 the accounts mobilized
 through preferential allotment of equity warrants / equity shares were
 fully utilized in 2007-08. During the year the Company had not
 mobilized any equity capital and accordingly no additional disclosures
 are required.
 
 7) Company has reduced its Gross block and accumulated depreciation for
 those assets having zero net block as on 31st March 2009 amounting
 
 8) During the year Company has acquired IIFL Inc from IIFL (Asia) Pte
 Ltd (wholly owned subsidiary) for a total consideration of Rs.
 35,152,849.
 
 9) Company has pledged fixed deposits to the extent of Rs.1554.20
 million with banks for bank guarantees/overdraft facilities and with
 stock exchanges.
 
 10) In the opinion of the management, there is only one reportable
 business segment as envisaged by AS 17 Segment Reporting, issued by
 the Institute of Chartered Accountants of India. Accordingly, no
 separate disclosure for segment reporting is required to be made in the
 financial statements of the Company.
 
 Secondary segmentation based on geography has not been presented as the 
 Company operates primarily in India and the Company perceives that there 
 is no significant difference in its risk and returns in operating from 
 different geographic areas within India.
 
 11) Financial income includes dividend on non trade and other
 investments of Rs. 151,667,039 (previous year Rs. 47,844,562). The
 amount is net of TDS on interest of Rs. 162,376,930 (previous year Rs.
 275,808,967).
 
 12) Interest expenses include the interest on Debentures Rs. 28,289,522
 (Previous year Rs. 98,489,300) and Discount on Commercial paper
 Rs.47,834,812 (Previous year 75,839,398).
 
 13) The Company provides for the use of its wholly owned subsidiaries
 certain facilities like use of premises, infrastructure and other
 facilities and services and the same are termed as ‘Shared Services’.
 Such shared services consisting of administrative and other revenue
 expenses paid for by the company are recovered on an actual basis from
 subsidiaries and estimates are used where actuals are difficult to
 determine.