(a) Guarantees given on behalf of Subsidiary Company, HB Securities Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)

Commitments

(b) Rs. 1,25,00,000/- (Previous Year Rs. 1,25,00,000) on account of uncalled call money in respect of Partly Paid up Shares.

2. SEGMENT REPORTING

In the opinion of Management there are no separate reportable segments as per Accounting Standard Segment reporting (AS-17).

3. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES

Operating Lease

a) Particulars of the minimum lease payments under Operating Lease:-

Not Later than One year       Rs. 9,67,692/- (Previous Year 
                              Rs. 9,67,692/-)

Later than five years

Later than five years Rs. NIL (Previous Year Rs. NIL)

b) Minimum lease payments recognised in the statement of profit & loss account during the year ended 31st March 2015 is Rs. 9,67,692/- (Previous Year Rs. 9,67,692/-).

c) General description of the lease arrangement.

* The Lessee shall not sublet or otherwise part with possession of a part or whole of the premise without the previous consent in writing of the lessor.

* The Lessee shall use the premises for commercial purposes only.

4. DUE TO MICRO, SMALL AND MEDIUM ENTERPRISES

To the extent information available with the Company, it has no dues to the Micro, Small and Medium enterprises as at 31st March, 2015 and 31st March, 2014.

5. The Company made an application for issue of Certificate of Registration with Reserve Bank of India (RBI) under Section 45IA of the Reserve Bank of India Act, 1934. The application of the Company was, however, returned by RBI vide its letter dated December 24, 2004 with an advice to resubmit the application on the completion of SEBI's enquiry against the group companies. In an Appeal filed by the Company before the Appellate Authority (in the Ministry of Finance) against the aforesaid decision of RBI, the Appellate Authority vide its Order dated September 25, 2006, directed the Company to resubmit the application along with the latest balance sheets and other relevant details within 30 days to RBI and RBI to thereafter decide the case by obtaining necessary response from SEBI within 3 months from the date of receipt of the Order. The Company resubmitted its application to RBI's Regional Office at New Delhi on 23rd October, 2006 as per the aforesaid directions of the Appellate Authority. Additional details / documents / clarifications as required by RBI from time to time were submitted.

The Company vide its letters dated 11th October, 2010 and 29th January, 2011 intimated the RBI about the disposal of pending proceeding by the SEBI and also furnished copy of SEBI orders. The RBI vide its letter dated 29th March, 2011 advised the Company to make a fresh application for issue of Certificate of Registration. As directed by RBI, the Company filed a fresh application on 20th June, 2011.The necessary queries / information raised / sought by RBI from time to time were filed.

Thereafter, the Company was advised by the Reserve Bank of India vide its letter dated 30th January, 2013 to file fresh application for registration as NBFC and accordingly the Company submitted the fresh application along with required documents / information on 29th July, 2013. The Reserve Bank of India again returned the application for submission of additional documents / information vide its letter dated 16th August, 2013 and accordingly the Company submitted the fresh application along with required documents / information on 19th March, 2014. The information / clarifications sought thereafter by RBI have also been submitted by the Company.

6. In view of the above facts, the provisions of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directors, 2007) as Superseded by "Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 201 5 are yet to be applicable to the Company. However, as a matter of prudent and proper practice, disclosure of details as required by Para 13 of aforesaid directions is being given. Similarly the transfer of profit to Reserve Fund as required by Reserve Bank of India (Amendment) Act, 1997 is also being made.

7. During the year, the Company has revised depreciation rates on fixed assets as per the useful life specified in Schedule II to the Companies Act, 2013. Based on the Current estimates, depreciation of Rs. 52,706/- on account of assets whose useful life has already exhaushed as on April 1, 2014 has been added to the depreciation for the year ended March 31,2015.

Due to aforesaid revision in depreciation rates, depreciation for the year as charged in the Profit & Loss account is higher by Rs. 85,719/-.

8. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

9. The Company does not have any pending litigation which would impact its financial position.

10. The Previous year figures have been regrouped/reclassified,wherever necessary to conform to the Current Year's presentation.