2. Liability in respect of units disposed off but in dispute - amount indeterminate.

3. The contingent liabilities in respect of claims lodged against the Corporation by ex-employees/pensbners and other claims (20 cases) are to the extent of Rs.8.90 crore (approx.) not acknowledged. In addition to above there are 13 court cases/appeals filed by the employees/ex-employees against which amount is indeterminate.

4. Sale Tax assessments for the financial years 2004-05,2005-06, 2006-07 & 2007-08 have been completed by the Assessing Authority, Panchkula & Sales TaxA/AT liability for these financial years has been assessed at Rs. 124.41 lakh. As the Corporation has filed appeals with higher authority the above liability of Rs.124.41 lakh has not been provided in the accounts against these orders. There is no pending demand in Sales Tax/VAT for the subsequent years.

5. SIDBI vide their lettter dated 10.01.2011 approved one time settlement of outstanding refinance amount of Rs.181.68 crore at Rs.130 crore with no further interest (outstanding and future) to be paid withir three years. The Corporation has paid the entire OTS amount of Rs. 130.00 crore to SIDBI. The last installmen of Rs.10.33crore was paid during the current financial year. The Corporation also paid a sum of Rs.5,12,255/- to SIDBI towards interest on the defaulted amount for the defaulted period as per OTS. The Corporation ha; taken the principal waiver Refinance amount Rs.51.68 crore during the current financial year as its income.

6. The Corporation appointed IFCI Ltd. to study the pros, and cons, of merger/winding up of the Corporation The report of the financial consultant was deliberated by the Board of Directors of the Corporation (BoD) in it; meeting held on 10.07.2012. BoD/HFC decided to complete the process of sale of properties owned by the Corporation/settlement of liabilities by 31.03.15 and deploy the surplus staff to other departments. The Corporatioi has disposed off its two properties (Faridabad and Delhi) during the current financial year and income has been recognized as Profit on Sale of Assets of Rs. 9.06 crore. There is outstanding advance of Rs. 37.24 crore from HSIIDC as on 31.03.2015 against other properties at Panchkula (Residential flats and Corporate building). All the liabilities towards borrowings of the Corporation have been settled during the current financial year. The Corporatioi has also initiated steps for the deployment of surplus staff and got 22 employees deployed in Haryane Government / Haryana Government Undertaking through Surplus Staff Cell of Haryana. Due to the abov< facts, the Corporation has not created a provision of Deferred Tax liability.

7. No amount towards deferred tax asset is outstanding in the books of accounts of the Corporation. The Corporatioi has not sanctioned any advance since 2010. In such circumstances it is not feasible to create any deferred ta liability for the current financial year.

8. Subvention amounting to Rs.7,17,53,106/- is receivable from State Govt, for payment of the minimur guaranteed dividend for the financial years 1996-97 to 2000-01 (upto 05.09.2000) against the guarantee givei by the State Govt, under Section 6 read with Section 35 of the State Financial Corporations Act, 1951 for whic claim has been lodged with the State Govt. Against above,the Corporation has since paid Rs. 1,65,56,484/- to th retail investors/others from its own sources, the said amount has been shown under the head - Dividend Pai (adjustable against subvention to be received from State Govt.) in Schedule 'K' - Other Current Assets'. The State Govt.guarantee has been withdrawn w.e.f. 06.09.2000 as per SFCs ( Amendment ) Act, 2000 and thereafter no dividend has been provided / declared.

9. The value of primary and collateral securities of all the Loans and Advances as on the date of Balanc sheet is not re-assessed. However, adequate provision against non-performing assets (NPAs) has been mad in the books of accounts as on 31.03.2015 as per the provisioning norms of SIDBI.

10. The Corporation had advanced loans (prior to 01.04.2001) in the name of various equipment supplier to lessees for purchase of Leasing Equipments. In some of the cases, the lessees have not submitted bills an other documents against purchase of these equipments. The entire outstanding amount of Rs. 5,71,48,124/ of Loans for Leasing Equipment (advance) and Rs. 2,74,73,338/- of Vehicle Sub Leasing has been prudential written off during the year.

11. As per guidelines issued by SIDBI, provision towards diminution in the value of investments in respect of listed & Un-listed shares is required to be made to the extent of Rs. 3.94 crore upto 31.03.2015 against which the Corporation has already made provision of Rs. 4.18 crore upto 31.03.2014. Therefore, provision of Rs. 0.24 crore has been written back during the year which has been shown in Schedule 'E' - Provisions.

12. depreciated on Capital Recovery Method.The leased assets financed by the Corporation belong to the period prior to 01 04.2001, hence the equipment leasing has not been classified as Loans and Advances as per the Accounting Standard (AS-19) because it is applicable only on the leasing activities done after 01.04.2001.

13. The State Govt, has appointed Corporation as agent for disbursement of its various subsidies, seed money and agency loans. Unutilized amount against various subsidies has been shown under the sub head "(b)(1) State Govt. Funds (As an Agency)" of Schedule 'D' - Other Current Liabilities. Liabilities towards State Govt, against Agency & Seed Money Loans have been shown against '(b)(2)' under the said sub head.The balance of Agency and Seed Money loans has been shown in Schedule 'K' - Other Current Assets. The amount of interest accrued in these loans is credited to respective interest account under Other Liabilities and debited to relevant loan account as the amount so received from the borrowers on this account is payable to the State Government.

14. Sundry Deposits under Schedule 'D' - Other Current Liabilities include a sum of Rs.1095 lakh being the sale price in case of M/s Surendera Enterprises Pvt. Ltd., Rewari, a joint financing case with Haryana State Industrial and Infrastructure Development Corporation Ltd. ( HSIIDC ). A new loan account of Rs. 821.25 lakh in the name of auction purchaser namely M/s Balaji Enterprises under the head Loan & Advances was opened after receipt of Rs. 273.75 lakh i.e. 25% of the sale amount. Being joint financing case, the sale proceeds are yet to be shared between HFC and HSIIDC on pro-rata.

15. Claim Recoverable under Schedule 'K' - Other Assets includes a sum of Rs. 38,09,712/- ( Rupees thirty eight lakh nine thousand seven hundred twelve only ) recoverable in case of M/s S.K. Wood Products, Yamunanagar. In this case the collateral security was sold to Sh. S.K. Saini and Sh. Robin Saini (auction purchasers) for Rs. 24.30 lakh on 23.08.2007. Later on Auction Purchasers filed writ petition in the Hon'ble Punjab & High Court, Chandigarh seeking relief that the property purchased by them had no access and the Corporation may provide the access to the auctioned land or refund the amount. The case was decided with the directions to the Corporation to refund the amount alongwith interest. Accordingly the Corporation refunded a sum of Rs. 38,01,285/- to the auction purchaser by debiting Claim Recoverable Account as the loan account of loanee M/s S.K. Wood Products has already been adjusted. The Corporation again auctioned the above property at a price of Rs. 56.00 lakh and received Rs. 14.00 lakh upto 30.04.2015.

16. Disclosure requirements under the RBI guidelines dated 7th July, 1999 on forward rate agreements under Interest Rate Swaps NIL

17. Figures have been rounded off to the nearest rupee and wherever necessary figures for the previous year hav* been rearranged/regrouped in order to make it in conformity with current year's figures.

18. Schedules 'A' to 'S' form integral part of the Balance Sheet and Profit & Loss Account.