Shriram City Union Finance Limited - Karvy

Income Tax/Wealth TaxDisputed Income tax/Wealth Tax demands contested in appeal as on March 31 st , 2008 amount toRs.1,603.12 lacs(March 31 st 2007: Rs.1,397.89 Lacs. In view of favourable appellate decisions in respectof earlier years on similar issues, the company is confident of getting full relief. Hence the amount is notconsidered as contingent liability.Service TaxThe applicability of Service tax has been challenged in respect of its hire purchase/lease activities andhas obtained a stay in its favour granted by Madras High Court. However provision is made in the booksfor any liability that may arise.13. The Company during the year converted 20,55,000 warrants issued to Shriram Enterprise HoldingsPrivate Limited into equity shares of Rs.10/- each at a premium of Rs.150/-. The total amount of Rs.3,082.50 lacs received from the said preferential allotment was utilized for the purpose of increasing thenet worth and working capital of the Company.14. Employee Stock Option PlanSeries IDate of grant October 19, 2007Date of Board Approval October 19, 2007Date of Shareholder’s approval October 30, 2006Number of options granted 13,27,500Method of Settlement (Cash/Equity)After 1 year of grant dateAfter 2 years of grant dateAfter 3 years of grant dateAfter 4 years of grant dateEquity10% of options granted20% of options granted30% of options granted40% of options grantedExercisable periodVesting Conditions10 years from vesting dateon achievement of pre –determined targetsF-105