Note 27: Employee benefit plans Defined contribution plans

The eligible employees of the Company are entitled to receive benefits under Provident Fund, a defined contribution plan in which both employees and the company makes monthly contributions at a specified percentage of the covered employees' salary, the contributions as specified under the Law are paid to the Provident Fund and Pension Fund to the provident fund authorities.

Leave Encashment - The eligible Leave encashment liability to the employees other than those deputed by Indian Bank has been provided for on the basis of actuarial valuation based on number of days unutilized leave at each reporting date. The actuarial gain or loss is recognized in the Statement of Profit and Loss as per Ind AS 19.

The total expense recognized in profit or loss of Rs. 29,39,999 (for the year ended March 31, 2017 Rs.31,06,303) represents contributions payable to these plans by the Company at rates specified in the rules of the plans.

Defined benefit plans

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days' salary payable for each completed year of service. Vesting occurs upon the completion of five years of service. The Company makes an annual contribution to gratuity fund established as a Trust through a Group Gratuity Policy with Life Insurance Corporation of India. The Company's liability towards Gratuity is actuarially determined at the reporting date using the Project Unit Credit (PUC) method. Actuarial gains and losses on gratuity are recognized in Other Comprehensive Income as per Ind AS 19.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk Since the company contributes to an approved Gratutiy Fund, it is not exposed to any risk.

- The company has paid Rs. 18 lakhs for this Assessment Year in terms of the orders passed by the CIT on the stay petition filed by the company.

-- The company has paid Rs. 132 lakhs for this Assessment Year in terms of the orders passed by the CIT and High Court, Madras on the stay petition filed by the company.

ii) Sales Tax demand disputed in appeal - Rs.42.78 lakhs (Previous year Rs.42.78 lakhs).

B. Guarantees - Counter guarantee issued to bank for guarantees - Nil (Previous Year - Nil)

C. Estimated amount of contracts remaining to be executed on capital account and not provided for - Nil (Previous Year - Nil).

Note 29: Disclosure in respect of Related Parties pursuant to Ind AS 24

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

Key Management Personnel Mr. A K Bajpai, President & Whole Time Director

Key Management Personnel Mr. K S Sujay, Vice President & CFO

Key Management Personnel Ms. S S Deepthi, Company Secretary & Compliance Officer

Vice President & CFO of the Company is on deputation from Indian Bank and the remuneration is in accordance with the service rules of the said Bank.

Company Secretary & Compliance Officer has been recruited directly by the company and the remuneration is in accordance with the terms of offer of employment given by the company.

Note 30. Segment information

Information reported to the Chief Operating Decision Maker (CODM - Board of Directors) for the purposes of resource allocation and assessment of segment performance focuses on the Company as a whole. Hence, the management has concluded that the Company has only one segment.

Note 32: Financial instruments Capital management

The Company manages its Capital to ensure that it continues as a Going Concern while maximizing the return to its stakeholders through the optimization of equity balance.

The capital structure of the Company does not consist of any debt. The business activities are carried out using internal accruals and the equity balance of the Company.

Financial risk management objectives

The Company has fixed prudential limits for giving exposure to its clients and also has a elaborate collection process for mitigating the risks. The exposure norms prescribed by various statutory authorities (SEBI, NSDL and RBI) are being adhered to. The risk management policy shall be reviewed every two years.

The risks include market risk, credit risk and liquidity risk.

Market Risk

The Company is not exposed to market risks due to foreign currency exchange rates and interest rates as there are no borrowings and no transactions in foreign currency.

Credit risk management

The credit risk associated with broking comprises failure of the client, intermediary, clearing agents and the exchanges in meeting their respective payment obligations. The Company has a power of attorney to sell the underlying securities when there is delay in receipts from the customers at its discretion. The Company also has fixed margin requirements which have to be adhered to by the customers in order to transact with the Company. Hence, the Company's exposure to credit risk is minimal.

Interest Rate Risk Management

The Company has not obtained any borrowings. Hence, it has no exposure due to interest rate fluctuations.

Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk

Note 33: First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at end for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company's opening balance sheet was prepared as at 1 April 2016, the Company's date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

1 Since there is no change in the functional currency, the Company has elected to continue with the carrying value as at 1st April, 2016 for all of its investment property and property plant & equipment as recognized in its Previous GAAP financial as deemed cost at the transition date.

2 Under previous GAAP, long term investments were measured at cost less diminution in value which is other than temporary. Under Ind AS, the investments in Bought Out Deals have been classified as at FVTOCI and that in equity instruments have been classified as at FVTPL.

3 Under previous GAAP, current investments were measured at lower of cost or fair value. Under Ind AS, the investments in equity instruments have been classified as FVTPL on the date of transition. The fair value changes are recognized in profit or loss.

4 Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income.

5 Under previous GAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurernent of the net defined benefit liability / asset which is recognized in other comprehensive income. The actuarial gains for the year ended March 31, 2018 were Rs.6.98 lakhs and for March 31, 2017 were Rs.2.72 lakhs.

Effect of the Transition to Ind AS

Reconciliations of the Company's balance sheets prepared under Indian GAAP and Ind AS as of April 1, 2016 and March 31, 2017 are also presented in Note 34 & 35. Reconciliations of the Company's income statements for the year ended March 31, 2017 prepared in accordance with Indian GAAP and Ind AS in Note 36.