1.  Estimated amounts of contracts remaining to be executed on capital
 account and not provided for (net of advances) are Rs.15,000,000
 (Previous year Rs.13,601,880).
 
 2.  Contingent liabilities in respect of :
 
 a) Corporate Undertaking of Rs.143,500,000 (Previous year
 Rs.143,500,000) for Securitization transactions.
 
 b) Claims against the Company not acknowledged as debts Rs.837,732
 (Previous year Rs.620,367).
 
 c) The Company has received a demand of Rs.35,00,000, Rs.2,78,45,437
 (including interest of Rs.82,68,945), Rs.6,33,61,000 (including
 interest of Rs.1,06,36,607), Rs.2,08,00,000, Rs.9,36,81,691 (including
 interest of Rs.7,21,90,337), Rs.35,71,94,000 (including interest of
 Rs.6,67,93,988), Rs.23,85,58,159 (including interest of Rs.1,38,71,157)
 and Rs.33,10,50,489 on completion of income tax assessment for the
 assessment years1999-00, 2001-02, 2002-03, 2003-04, 2004-05, 2005-06,
 2006-07 and 2007-08 respectively. The said amounts are disputed and the
 Company has preferred an appeal against the same. The amounts for the
 respective years have been paid under protest to the Central
 Government.
 
 3.  (i) Retail / Project Loans are secured, wholly or partly, by any or
 all of the following as applicable, based on their categorization :
 
 a) Equitable / Registered Mortgage of Property
 
 b) Assignment of Life Insurance Policies, NSC, KVP, FD of Nationalized
 Bank
 
 c) Assignment of Lease Rent Receivables
 
 d) Company guarantees or personal guarantees
 
 e) Negative lien
 
 f) Undertaking to create a security
 
 (ii) Loans to employees other than for Housing are secured by lien over
 Provident Fund balances and / or Hypothecation of Vehicles.
 
 4.  As per NHB Circular dated December 24, 2010 provision @2% is
 required on Teaser Loans (Standard). In order to comply with this
 circular, the Company vide its letter dated March 22, 2011 has sought
 clarification from NHB about the treatment of loans under different
 schemes as teaser loans, which is awaited. Based on Companys
 assessment, Retail Loans with outstanding balance of Rs.1,284,042.02
 lacs (previous period Rs.Nil) have been classified as Teaser Loans
 (Standard) and provision of Rs.25,680.84 lacs (previous period Rs.Nil)
 has been made.
 
 5.  Housing Loans include loans amounting to Rs.93,948,812 (Previous
 year Rs.95,116,460) against which the Company has taken possession of
 the properties under Securitisation and Reconstruction of Financial
 Assets and Enforcement of Security Interest Act, 2002 and held such
 properties for disposal. Of this, fair value of the assets possessed,
 against the loans of Rs.11,427,401 (Previous year Rs.16,794,754), is
 not available as at March 31, 2011. The balance loans amounting to
 Rs.82,521,411 (Previous year Rs.78,321,705), have fair value of
 Rs.78,100,730 (Previous year Rs.75,010,517), being lower of the fair
 value of the asset possessed and the outstanding due under the loans as
 at March 31, 2011.
 
 6.  Provision for contingencies includes:
 
 a) Provision for untapped corporate undertaking given for
 securitization of housing loans. The outflows in respect of untapped
 corporate undertaking would arise in the event of a shortfall, if any,
 in the cash flows of the pool of the securitized receivables.
 
 7.  The Company has sold 1730 equity shares of Rs.10/- each of LIC
 Mutual Fund Asset Management Company Limited and 2000 equity shares of
 Rs.10/- each of LIC Mutual Fund Trustee Company Private Limited to
 Nomura Asset Management Strategic Investment Pte. Ltd. for a total
 consideration of Rs.1,384,092,086. Profit on sale of these equity
 shares amounting to Rs.1,351,822,428 is included under Income from
 Investment.
 
 8.  Fixed Deposits with Banks include Rs.162,099,208 (Previous Year
 Rs.12,099,208) kept with designated banks for repayment to Public
 Deposit Holders. The Company has beneficial interest on the income
 earned from these deposits.
 
 9.  Miscellaneous income includes Rs.4,795,758 (Previous Year
 Rs.5,000,000) being management fee from Kotak India Real Estate Venture
 Fund, Rs.297,412 (Previous Year Rs.203,288) being interest income on
 staff loans/advances, Rs.60,608,310 (Previous Year Rs.66,205,419) being
 gain on unwinding of Interest rate swap, Rs.7,588,729 (Previous Year
 Rs.6,365,491) being old outstanding and unclaimed amounts written back,
 Rs.15,500,000 (Previous Year Rs. NIL) being Investment written off
 realized.
 
 10. Temporary Book Overdraft of Rs.10,925,892,271 (Previous Year
 Rs.8,660,552,460) represents cheques issued towards disbursements to
 borrowers for Rs.10,818,265,123 (Previous Year Rs.8,495,884,847) and
 cheques issued for payment of expenses of Rs.107,627,148 (Previous Year
 Rs.164,667,613), but not encashed as at March 31, 2011.
 
 11.  The Company has requested its suppliers to confirm the status as
 to whether they are covered under the Micro, Small and Medium
 Enterprises Development Act, 2006. In the absence of confirmations from
 the suppliers, disclosures, if any, relating to unpaid amount as at the
 year end together with interest paid / payable as required under the
 said Act have not been given.
 
 12.  Derivative instruments:
 
 a) Interest Rate Swaps for hedging underlying liability aggregate to
 Rs.11,460,000,000 (Previous year Rs.6,000,000,000).
 
 b) For underlying liability of Rs.6,500,000,000 (Previous year
 Rs.6,500,000,000), Coupon Swap has been entered into which remains
 unhedged in respect of movement in respective currencies affecting the
 coupon amount.
 
 c) The Company as on March 31, 2011 had outstanding interest rate and
 coupon swaps covering the underlying liability aggregating to
 Rs.17,960,000,000 (Previous year Rs.12,500,000,000). The fair value of
 all such Swaps as at March 31, 2011 was unfavourable to the extent of
 Rs.1,913,600,263 (Previous year Rs.1,606,912,869).
 
 Gratuity Premium is paid to LIC of India under Gratuity Scheme of LIC.
 
 The Companys best estimate of contributions expected to be paid to the
 plan during the annual period beginning after March 31, 2011 is
 Rs.12,630,116 (Previous Year Rs.22,869,846).
 
 In the absence of detailed information regarding Plan Assets which is
 funded with Life Insurance Corporation of India, the composition of
 each major category of plan assets, the percentage or amount for each
 category to the total fair value of plan assets has not been disclosed.
 
 The details of experience adjustments arising on account of plan assets
 and plan liabilities as required by paragraph 120(n) (ii) of AS 15
 (Revised) on “Employee Benefits” are not readily available in the
 valuation statement received from LIC of India and hence, are not
 furnished.
 
 13.  Segment reporting:
 
 The Company is engaged in the business of providing loans for purchase,
 construction, repairs and renovation etc., of houses / flats to
 Individuals, Corporate Bodies, Builders and Co-operative Housing
 Societies and has its operations within India. There being only one
 business segment and geographical segment, the segment information
 is not provided.
 
 14.  Related party disclosure:
 
 a) Names of related parties where control exists:
 
 Sr. No. Name of the related party    Nature of relationship
 
 1.  LICHFL Care Homes Limited        Wholly owned subsidiary company
 
 2.  LICHFL Financial Services Ltd.   Wholly owned subsidiary company
 
 3.  LICHFL Asset Management Company 
     Ltd. (Formerly known             Subsidiary company with 90% 
                                      share holding
     as LICHFL Asset Management 
     Company Private Ltd.)
 
 4.  LICHFL Trustee Company 
     Private Ltd.                     Wholly owned subsidiary
                                      company
 
 b) Details of other related parties with whom transactions have taken
 place:
 
 Sr. 
 No. Name of the related party     Nature of relationship
 
 1.  Life Insurance Corporation 
     of India (LIC)                Enterprise having significant
                                   influence
 
 2.  LIC Nomura Mutual Fund Asset  Associate
     Management Company Limited 
     (Formerly Known as LIC Mutual 
     Fund Asset Management 
     Company Ltd.)
  
 3.  LIC Nomura Mutual Fund        Associate till 14.01.2011
     Trustee Company Private 
     Limited (Formerly Known 
     as LIC Mutual Fund Trustee 
     Company Pvt. Ltd.)
 
 4.  Mr. R.R. Nair, Director and 
     Chief Executive 
     (Up to 29-11-2010)           Key Management Personnel
 
 5.  Mr. V.K. Sharma, Director 
     and Chief Executive (
     From 01-12-2010)             Key Management Personnel
 
 15.  Operating Leases:
 
 The Company has taken various office and residential premises on
 cancelable operating lease basis for periods which range from 11 to 120
 months with an option to renew the lease by mutual consent on mutually
 agreeable terms. Lease payments recognized in the Profit and Loss
 Account for such premises are Rs.126,934,672 (Previous year
 Rs.116,264,536).
 
 16.  Current tax:
 
 Provision for current tax is made on the basis of accounting practices
 consistently followed by the Company, including method of accounting
 for interest on housing loans and is after availing deduction under
 section 36(1)(viii) of the Income Tax Act, 1961. For the purpose of
 determining the quantum of deduction available under section
 36(1)(viii), the methodology applied for the bifurcation of income and
 expenses for long term housing finance has been relied upon by the
 auditors.
 
 17. Disclosure regarding provisions made for substandard, doubtful and
 loss assets and depreciation in investments as per the Prudential Norms
 contained in the Housing Finance Companies (NHB) Directions, 2010.
 (Figures in brackets are for the previous year). The provisions given
 below are in accordance with the approval given by the Board of
 Directors, which are higher than those required as per the Prudential
 Norms.
 
 18.  Disclosure regarding penalty or adverse comments as per Housing
 Finance Companies (NHB) Directions, 2010. During the current year, the
 Company has:
 
 a) neither been imposed any penalty by National Housing Bank
 
 b) nor received any adverse comments in writing from National Housing
 Bank on regulatory compliances.
 
 19.  Disclosure as per Clause 32 of the Listing Agreement :
 
 Loans and advances in the nature of Loans given to Subsidiaries and
 Associates: -
 
 Notes:
 
 a) In respect of the above loans there is no repayment schedule and
 they are repayable on demand.
 
 b) No interest is charged on the loan. However, the provisions of
 section 372A of the Companies Act, 1956 are not applicable to above
 loans in view of the loanees being subsidiaries of the company.
 
 c) Loans and Advances to employees / customers and investments by such
 employees / customers in the shares of the Company, if any, are
 excluded from the above disclosure.
 
 Figures in bracket are in respect of the previous year.
 
 20.  During the year the Company has split its Equity Shares having
 face value of Rs.10/- each into Equity Shares having face value of
 Rs.2/- each.
 
 21.  Disclosure regarding provisions made for Asset Liability
 Management (ALM) System for the Housing Finance Companies as per NHB
 Circular dated October 11, 2010.
 
 22.  Previous years figures are regrouped wherever necessary to
 correspond with the figures of the Current year.