i) Assets on Finance
 
 a) Assets on Finance is net of amounts securitised / assigned of Rs.
 501,484.14 lacs (Previous Year: Rs. 481,834.74 lacs).
 
 b) Value of repossessed assets as at the year-end is Rs. 273.93 lacs
 (Previous Year: Rs. 319.89 lacs).
 
 iii) Operating Lease Rental for the year is Rs. 244.78 lacs (Previous
 Year: Rs. 991.41 lacs), included in Income from Operations.
 
 iv) Employee Benefits
 
 Gratuity and Other post-employment benefit plans
 
 The following tables summarise the components of net benefit / expense
 recognised in the Profit and Loss Account and
 
 Balance Sheet for the respective plans.
 
 v) Employee Stock Option Scheme
 
 The Nomination and Remuneration Committee of the Board of Directors had
 granted 350,800 Options (each Option entitled to 1 equity share of Rs.
 10/- each at a price of Rs. 180/- per share) to the eligible employees
 of the Company under Magma Employee Stock Option Plan 2007 on 12th
 October, 2007 (Refer note 2 (ix) (a)).
 
 The disclosures in respect of Employees Stock Option Scheme which are
 outlined in this years Annexure to the Report of the Directors are
 treated as an annexure to these accounts.
 
 vii) Business Segments
 
 The Company is engaged primarily in the business of financing and only
 in one Geographical Segment viz. India. As such no separate Business
 and Geographical reportable segments information as per Accounting
 Standard 17 (Segment Reporting) has been furnished in these accounts.
 
 ix) a) Pursuant to the approval of the shareholders at the Annual
 General Meeting held on 15th July, 2010, the equity shares of face
 value of Rs. 10/- each were sub-divided into five equity shares of face
 value of Rs. 2/- each on record date of 16th August, 2010. Accordingly,
 the EPS has been recalculated based on face value of Rs. 2/- each for
 the current year and for the earlier years as required by Accounting
 Standard 20 (Earnings Per Share).
 
 b) The Company has allotted on 30th April, 2010, 2,000,000 Warrants to
 one of the Promoter entities carrying an option to subscribe to
 equivalent number of equity shares of Rs. 10/- each at a price of Rs.
 250/- per equity share of the face value of Rs. 10/- each, on a future
 date not exceeding 18 months from the date of issue of such Warrants in
 terms of provisions of SEBI Guidelines for Preferential Issue (Chapter
 VII of the SEBI (Issue and Disclosure Requirements) Regulations, 2009).
 Following the subdivision of one equity share of the face value of Rs.
 10/- each into five equity shares of the face value of Rs. 2/- each
 during the year, the number of warrants stand increased from 2,000,000
 to 10,000,000 and the issue price stands reduced from Rs. 250/- to Rs.
 50/- per equity share of Rs. 2/- each. The Company has already received
 Rs. 1250.00 lacs being 25% of the total issue price.
 
 c) The Company has allotted on 12th May, 2010, 4,067,220 equity shares
 of Rs. 10/- each to Qualified Institutional Buyers (QIBs) in the
 Qualified Institutions Placement under chapter VIII of the SEBI (Issue
 of Capital and Disclosure Requirements) Regulations, 2009 at a price of
 Rs. 301/- per equity share of Rs. 10/- each (including premium of Rs.
 291/- per share) aggregating to Rs. 12,242.33 lacs (Refer note 2 (ix)
 (a)).
 
 d) The Company has allotted on 25th May, 2010, 25,260 equity shares of
 Rs. 10/- each and on 19th November, 2010, 425,450 equity shares of Rs.
 2/- each on preferential basis under Employee Stock Option Plan (ESOP)
 pursuant to SEBI (ESOS and ESPS) Guidelines, 1999 to the eligible
 employees of the Company (Refer note 2 (ix) (a)).
 
 e) The total paid-up Equity Share Capital of the Company stands
 increased to 129,773,550 equity shares of Rs. 2/- each aggregating to
 Rs. 2,595.47 lacs. These equity shares will rank pari passu in all
 respects, including the right to receive all dividends and other
 distributions declared.
 
 f) The Company has raised a sum of Rs. 3,500.00 lacs by allotting
 2,500,000, 12%, Cumulative Redeemable Non- Convertible Preference
 Shares of Rs. 100/- each aggregating to Rs. 2,500.00 lacs and
 1,000,000, 9.6% Cumulative Redeemable Non-Convertible Preference shares
 of Rs. 100/- each aggregating to Rs. 1,000.00 lacs respectively on
 private placement basis for augmenting the working capital requirements
 of the Company.
 
 g) The Company has transferred Rs. 421.84 lacs to Capital Redemption
 Reserve on redemption of first installment of Rs.  20/- per share in
 respect of 2,109,199 Cumulative Non-Convertible Redeemable Preference
 Shares of Rs. 100/- per share on 17th February, 2011. The paid-up value
 as at 31st March, 2011 of the above preference shares stands reduced to
 Rs. 80/- per shares.
 
 x) As per the terms of issue, the holders of the 6,500,999 Cumulative
 Non–Convertible Redeemable Preference Shares of Rs.  100/- each
 aggregating to Rs. 6501.00 lacs (equivalent to USD 15 Million) allotted
 on 26th March, 2007 are entitled to fixed Dividend at the rate
 equivalent to 6 months US Dollar Libor applicable on the respective
 dates i.e. 30th December or 29th June depending upon the actual date of
 payment plus 3.25% on subscription amount of USD 15 Million.
 Accordingly, the dividend for the financial year ended 31st March, 2011
 has been provided in accounts based on the 6 months US Dollar Libor
 applicable as on 30th December, 2010 and closing exchange rate
 applicable as on 31st March, 2011 and which might vary depending on the
 actual date of payment of the Dividend. Accordingly, the excess/
 (deficit) dividend and tax thereon of Rs. (37.06) lacs (Previous Year:
 Rs. 50.80 lacs) provided with respect to above Preference Shares for
 the previous financial year ended 31st March, 2010 has been adjusted in
 the current year with consequent impact on Earning per Share for the
 year.
 
 xi) Related Party Disclosures
 
 Aggregated Related Party Disclosures as at and for the year ended 31st
 March, 2011:
 
 Subsidiary Company
 
 Magma ITL Finance Limited (a joint venture with International Tractors
 Limited)
 
 Associate
 
 Magma HDI General Insurance Co. Limited
 
 Enterprises having significant influence
 
 AMRI Hospitals Limited, Bengal Tools Limited, Calcutta Becon
 Engineering Co. Limited, Camaro Infrastructure Private Limited, Celica
 Developers Private Limited, Chinar Builders & Contractors Limited, CLP
 Business LLP, Escort Projects Private Limited, Everfast Promoters
 Private Limited, Gagan Tradelink Private Limited, GNB Credit Private
 Limited, GNB Logistics Private Limited, Hilife Infra Private Limited,
 Hilltop Plaza Private Limited, Jaguar Advisory Services Private
 Limited, Juhi Investment Private Limited, Kanaiya Engineering & Finance
 Limited, Liberty Pharma Limited, Lifelong Realtors Private Limited,
 Magma Consumer Finance Private Limited, Mask Corp, USA, Microfirm
 Softwares Private Limited, Nadia Security Printing & Stationery Company
 Limited, Neobeam Properties Private Limited, Noblesse Crystal Private
 Limited, Pragati Cement (India) Private Limited (Formerly Purulia
 Cements Private Limited), Pragati Sales Private Limited, Romex
 Promoters Private Limited, Shivangan Developers Private Limited,
 Shrachi Developers Private Limited, Shrachi Insurance Agencies Private
 Limited, Shrachi Realty Private Limited, Sino India Agro Machinery,
 Solvex Estates LLP (Formerly Solvex Estates Private Limited), Spectra
 Realcon Private Limited, Web Development Company Limited.
 
 Key Management Personnel
 
 Mayank Poddar, Sanjay Chamria and Ravi Todi.
 
 xii) The Company along with its associates has entered into a Joint
 Venture Agreement with HDI Gerling International Holding AG (“HDI”), a
 part of the Talanx AG Group, Germany for the purpose of undertaking
 general insurance business in India through Magma HDI General Insurance
 Company Limited (the “Insurance Company”) subject to necessary
 regulatory approvals. As per the terms of the Joint Venture Agreement,
 it has been agreed between the Company and HDI that set up costs and
 expenses shall be borne by the Company and HDI equally and on
 Completion (i.e. R2 approval being received from Insurance Regulatory
 Development Authority), the Insurance Company will reimburse to the
 Company and HDI the costs incurred by them respectively. Pursuant to
 the application seeking license for carrying on the business of general
 insurance in India, the Insurance Company, has since received the
 approval for its R1 application and is in the process of obtaining the
 R2 approval from the IRDA.
 
 xiv) Contingent Liabilities not provided for
 
                                             As at        As at
                                          31.03.2011     31.03.2010
 
 i) Income Tax matters under dispute         82.37         30.50
 
 ii) VAT matters under dispute               25.85         22.66
 
 iii) Legal cases against the Company       371.79        190.27
 
 iv) Recourse obligation in respect of 
 securitised assets (net of cash
 collaterals)                            14,634.15     11,988.01
 
 v) Unexpired Bank Guarantees            30,331.49     14,400.74
 
 vi)  Corporate Guarantees given for a 
 subsidiary Company                       4,344.35     10,846.93
 
 xviii)Based on information / documents available, no creditor is
 covered under The Micro, Small and Medium Enterprises Development Act,
 2006 and hence no disclosures thereof are made in these accounts.
 
 xix) a) C.I.F. value of imports of goods acquired for asset financing
 arrangements Rs. 1,991.77 lacs (Previous Year: Rs. 3,663.51 lacs).
 
 b) Expenditure in Foreign Currency on account of Travelling and Others
 Rs. 90.52 lacs (Previous Year: Rs. 11.68 lacs).
 
 xx) a) Service Tax was imposed on Hire Purchase and Lease transactions
 with effect from 16th July, 2001. The Company has since discontinued
 such modes of financing. A writ petition under Article 226 of the
 Constitution was filed before the Honble High Court of Chennai by the
 Trade Association of Hire Purchase and Lease Financing Companies
 against the same. Thereafter the Special Leave Petition was filed
 before the Honble Supreme Court of India, which was disposed off
 during the year by the Honble Supreme Court of India which fastened a
 liability of service tax of Rs. 372.00 lacs, out of which Rs. 258 lacs
 has already been paid by the Company. Since such transaction pertains
 to the period 2002- 03 to 2006-07 and the transaction with the impugned
 p.arties have already been concluded, the resultant liability arising
 on account of service tax has been written off as charge incidental to
 carrying on business. Accordingly, the same has been charged to Income
 from Operations during the year.
 
 b) The Service Tax Authorities had raised demands of Rs. 300.65 lacs
 (Previous year: Rs. 300.65 lacs) upon the Company with respect to
 certain items which are disputed and are being duly contested by the
 Company before the appropriate authority under guidance from its legal
 and tax advisors. In view of this, the Company have not provided for
 any liability against the same.
 
 c) Fringe Benefit Tax had been levied on Fringe Benefit provided to
 employees as per Section 115W of the Income Tax Act, 1961. The Company
 had filed a Writ Petition before the Honble Court of Calcutta and had
 been granted stay order on the same. The case has since been
 transferred to Honble Supreme Court and is yet to be finally disposed
 off by the Honble Supreme Court. In view of this, the Company had not
 provided for any liability against Fringe Benefit Tax in the earlier
 years. In terms of Finance Act, 2009, Fringe Benefit Tax has been
 withdrawn effective 1st April, 2009.
 
 xxi) Previous years figures are regrouped / recast / restated,
 wherever considered necessary.
 
 xxiii)The Reserve Bank of India (RBI) vide its Notification No. DNBS.
 223/CGM (US) - 2011 dated 17th January, 2011 has issued directions to
 all NBFCs to make provision of 0.25% against standard assets with
 immediate effect. Accordingly, the Company has made provision of Rs.
 1,090.00 lacs during the year against standard assets which has been
 charged to Profit and Loss Account. The above contingent provision
 against standard assets is treated as Tier II Capital.