Annual Report 2011-12 - India Infoline Finance Limited

Contents
Chairman’s
Message
02
Business
Overview
12
Corporate
Identity
04
IIFL Group
Initiative
14
IIFL
Overview
06
Directors’
Report
16
Performance
Highlights
08
Standalone
Auditors’ Report
21
Risk Mitigation
Framework
09
Standalone
Financial Statements
24
Industry
Consolidated
Overview
10
Financial Statements
49

It gives me immense pleasure to be
talking to you again. The fiscal year
2011-12 was a tough year for the
Indian economy as it grappled with
high inflation rates, tight monetary
stand by RBI (which pushed up the cost
of borrowing), policy paralysis and
weak global conditions – all resulting in
a slowing down of the GDP growth
rate. The Indian rupee also witnessed
high volatility during the year and
declined to a low of ` 54.30 in mid
December 2011, largely driven by rising
risk aversion amidst intensification of
European debt crisis, widening trade
deficit and weak domestic
fundamentals leading to a drying up of
foreign portfolio inflows.
The Government has shown some
resolve to correct the situation through
some key announcements in the Fiscal
Budget 2012-13. It has committed to a
fiscal consolidation path and set the
deficit target of 5.1% of GDP as against
an upwardly revised estimate of 5.9%
of GDP for the year 2011-12. There are
some positive signs like inflation
showing signs of moderation recently
with the Wholesale Price Index (WPI)
having slipped to about 7% in March
2012 after persistently staying above
9% for the past one year through
November 2011. The RBI, in a pathbreaking
move, deregulated the
interest rates on domestic savings
CHAIRMAN’S
MESSAGE
deposit and non-resident deposits
during the last year. The NBFCs, which
serve the vital credit needs of underserved
sectors like small and medium
enterprises, emerged stronger during
the financial year, thanks to their robust
risk framework. The growth of this
sector has attracted specific attention
of the regulator, Reserve Bank of India
(RBI), which has ushered in a series of
measures to tighten NBFCs functioning
and credit flows to this segment,
particularly funding and operational
framework of segmental NBFCs. I am
confident that these measures would
strengthen the overall performance of
NBFCs in the long run and weed out
the opportunistic and unhealthy
practices adopted by some of the
players. At the same time, your
Company, as a highly professional and
a diversified lender with an excellent
balanced portfolio as well as robust
systems and processes, considers this as
an opportunity to grow healthily from
strength to strength in its focused
segments in the years to come.
Your Company believes in helping
customers pursue their dreams. All of
us dream and strive to fulfill them.
Dreams need money to make them
come true. It could be higher education
for your children, a foreign trip or a
holiday, planning an own house or for
an independent retired life. We help in
“Financing your Dreams” and leave no
stone unturned to ensure that they are
realised. You can choose from our
ready-made loans or we will tailor-make
loans for you. In servicing our
customers, our aim is to provide fast
and customised loans that best suit the
customer, with a focus on honest
guidance and transparent terms.
Following this aim, your Company has
built a well diversified portfolio with
exposures in multiple segments of
lending such as home loans and
mortgage loans, loans against
securities, loans against gold and loans
against healthcare equipment. Now we
have the products and geographic
presence to cater to multiple funding
needs of individuals, SMEs and large
corporates. I am happy to inform you
that your Company has ramped up the
retail branches during the year and
have over 1,200 branches as on March
2012 spread across the country. We
continue to invest in people,
technology and distribution network in
line with our strategy to build a
balanced and quality asset portfolio,
grow in these segments and thus
enhance stakeholder value.
During the year, your Company
successfully completed its maiden bond
issue for ` 7,500 million through a
public issue of debentures, which
received a good response with a large
number of retail investors participating
in the issue. The capital adequacy of
your Company as per RBI norms stands
at 17.86% as on March 31, 2012 as
against RBI mandate of 15%.
During the financial year, your
Company doubled its loan portfolio,
which rose from ` 32.9 billion as on
March 31, 2011 to ` 67.5 billion as on
March 31, 2012. Home loans/loans
against property contributed to about
45% of the portfolio, gold loans at
41% while loan against shares /margin
financing contributed about 12%. The
newly launched medical equipment
loans constituted about 2% of the loan
portfolio. The year–on-year growth in
the loan book of continuing products
was 22%; however, the overall growth
of the loan book was 105%, primarily
due to contribution of new products,
namely gold loans and medical
equipment loans. Gross NPAs continue
to be maintained at similar levels of the
overall portfolio in spite of an increase
in the asset base. Our focus will remain
on secured lending, and we intend to
introduce new business lines like loans
to education sector besides scaling up
home loans segment.
During the Financial Year, your
Company was able to scale up the
business momentum in all its segments
and markets in which it operates. The
new service lines like loans against gold
and healthcare equipment financing
have achieved scale. The healthcare
segment received recognition from the
leading vendors as the preferred
financier.
The risk management policy of your
Company, which is monitored at the
highest level, is based on a thorough
review of key risk areas of credit,
market, operational and compliance
risks. The asset and liability
management group continues to play a
pivotal role in managing the balance
sheet, both for liquidity and interest
rate risk. The Company has put in place
an Asset Liability Management (ALM)
system, the ALM unit has been
proactive in its approach and has
provided valuable feedback for timely
decisions. In the Indian context, for the
next two decades, sectors that would
require flow of debt capital on a large
scale include infrastructure, education
and healthcare. The variety, enormity
and complexity of projects in these
verticals will require assistance from the
entire financial system, comprising not
just banks but also complemented by
NBFCs. Education and healthcare
should also get covered as part of
infrastructure which would then allow
certain tax concessions and external
borrowing to ensure rapid and healthy
growth of these vital sectors. These
investments have to be made for the
country to enjoy the demographic
dividend of a young population.
Your Company’s ability to grow in a
rapidly evolving external environment
and changing regulatory framework is
due to its customer centric approach,
balanced nature of its lending portfolio,
focused products and presence across
all regions including Tier II and Tier III
towns and important geographical
pockets. As we continue to add
customers across the business verticals,
we remain convinced of the huge
potential of your Company to grow in
every service line and market in the
lending space. The key will be our
ability to remain relevant to the market
and customer needs and service with
ease and speed to meet their
requirements.
In spite of short-term challenges, our
business has immense long-term
potential. We will take all steps to
ensure that we grow our book with a
focus on building a quality asset
portfolio and thus, enhance
shareholders’ value. I take this
opportunity to thank all the
stakeholders including customers,
regulators, institutions, bankers and
employees for their continued support
in the growth of your Company as I will
now be laying down my office on the
conclusion of the forthcoming annual
general meeting of the Company.
A. K. PURWAR
Non Executive Chairman
During the
financial year,
your Company
doubled its loan
portfolio, which
rose from ` 32.9
billion as on
March 31, 2011
to ` 67.5 billion
as on March 31,
2012.
2 |India Infoline Finance Limited
Annual Report 2011-12 |
3

IIFL TODAY
GROUP OVERVIEW
India Infoline Finance Limited (IIFL) is a subsidiary of India
Infoline Limited (IIL), having the following the businesses:
Key Businesses
Equities
Commodities and Currency
Credit and Finance
Wealth Management
Financial Products Distribution
Property Services
Vision
To become the Most
Respected Company in
the financial services
space in India.
Values
Team IIFL adheres to a set of values that can be summarised as GIFTS namely Growth, Integrity, Fairness,
Transparency and Service.
Growth
We are driven to grow
faster than the rest of
the industry and
encourage calculated
risks and empowerment
at all levels.
Integrity
We ensure utmost
honesty and integrity, in
letter and in spirit, in all
our dealings with people
– internal or external.
Fairness
We believe in fair dealings,
devoid of any fear or favour,
with all stakeholders including
employees, customers and
vendors.
Transparency
We believe in as much
transparency as practically
possible, with our stakeholders,
media and public at large.
Service
We are a service organisation,
committed to delight our
customers with superior advice
and service, delivered with
humility and sincerity.
AWARDS
IIFL TODAY
1 million+
Customers across
various Businesses
3000+
Business locations across
India
8
Presence in countries globally
10,000+
India Infoline team members
as on March 31, 2012
Best Commodities
Investment, February 2012
Best Wealth Management
House – India, September 2011
200+
Stocks covered by
our research team
240+
` billion HNI wealth under
advice
Best Broking House with Global
Presence, October 2011
Reducing dependence on capital markets
Broking and related income (% of total income)
50% 48%
41%
45%
37% 34%
26%
23%
Ranked No. 1 in ‘Fixed
Best Equity Broker of the Year
March 2011
Income Portfolio
Management’ in India,
February 2012
Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar 12
• Strategically, IIFL Group has reduced dependence on capital markets, which are inherently volatile
• Going forward, IIFL Group’s strategy will be to focus on growth of NBFC, financial products distribution and wealth
Best Broker - India,
management business for sustained growth
June 2011
4 |India Infoline Finance Limited
Annual Report 2011-12 |
5

MILESTONES
2004
IIL (then, IIFL)
incorporated India
Infoline Investment
Services Limited as a
private limited
company to undertake
financing activities
2007
1. IIISL became a public
limited company
2. IIISL acquired Moneyline
Credit Limited, an NBFC
and commenced consumer
loan business
2010
Launched Gold Loans
2012
Received registration
from PFRDA to act as
Aggregator under NPS
IIFL OVERVIEW
India Infoline Finance Limited (IIFL), a subsidiary of India Infoline Limited (IIL) is registered with Reserve Bank of India as a Non
Banking Finance Company. The name of the Company was changed from “India Infoline Investment Services Limited” to “India
Infoline Finance Limited” after receiving due approvals from the concerned regulatory authorities during the year under review.
Product Portfolio
1) Mortgage Loans
Mortgage loans include Loans for the
purchase of property and Loans against
property. These loans are offered to
individuals, partnerships and
companies; and are against the security
of residential or commercial collaterals.
Through the vast distribution network
of IIFL, a large number of customers
are catered to for their housing and/or
business needs. Competitive loan
features like loan-to-value, flexible loan
structuring as well as quick turn around
times make it an attractive proposition
for the customers
2) Capital Market Funding
It includes product suite of Loan
against securities, Margin funding, IPO
financing and Open offer financing.
With a tenure ranging from 3 to 12
months, it can help in financing dreams
that require short-term funding.
3) Gold Loans
Gold Loans include finance against
security of gold ornaments, and helps
unlock the hidden value of gold
jewellery. It can help in funding
emergency requirements, with speedy
loan disbursals taking place in a matter
of few minutes.
4) Healthcare Finance
Healthcare Finance is a loan product
offered to Doctors, Hospitals, Eye
Centres, Diagnostics Centres, Nursing
Homes etc. catering to the entire range
of their financial requirements such as
purchase of medical equipment,
refinancing of existing lien free medical
equipment and expansion of existing
healthcare facilities. A team of
experienced and well trained
professionals cater to the varied needs
of the target segment. The loan
procedure is quick and hassle-free &
attractive schemes are available to the
customers.
Filings and Listings
India Infoline Finance Limited is registered with the RBI as systemically important, non-deposit taking, non-banking financial
service company (NBFC-ND-SI). India Infoline Housing Finance Ltd., the housing finance arm, is registered with the National
Housing Bank.
India Infoline Finance Limited successfully completed Initial Public Offering of Secured Redeemable Non-Convertible Debentures
(“NCDs”) of ` 3.75 billion with green shoe option to retain additional ` 3.75 billion in FY 2011-12. These NCDs are listed and
traded on the National Stock Exchange and Bombay Stock Exchange.
2005
Received RBI license for
undertaking NBFC
activities and
commenced business
IIFL FINANCE: STRATEGY FOR GROWTH
Capital adequacy
Maintain adequate margin of safety
Raise subordinated debt, down sell
loan portfolio
Raise equity whenever capital
markets conducive
Resources
Ability to diversify resource profile
and mobilise long term debt
Experienced team in place to help
raise resources
Regular interactions with lenders
Asset quality
Focus on asset backed secured
2009
1. Acquired registration for Housing
Finance business from NHB
2. Mr. A.K. Purwar, ex-SBI chairman
joined the Board and appointed as
Chairman of IIISL
3. Preferential allotment to Orient
Global Tamarind Fund Pte. Ltd.,
Singapore, an FII
lending, add product lines in systematic
way
Robust credit and underwriting
process to ensure creditworthiness
along with in-built culture of audit
Management
Distinguished Board and experienced
management team with relevant
industry knowledge
Work extensively with renowned
consultants to set up systems and
processes before scaling up
Earnings
Judicious mix of products to ensure
healthy NIM
2011
Launched Medical
Equipment Financing
Asset growth without compromising
on credit
At Group level, diversify sources of
earnings
Venturing into new products and
scaling up only after putting robust
processes in place and testing them
Liquidity
Asset liability management – a focus
area for top management
Loan portfolio has healthy mix of
both short and long tenure products
Keep unutilised bank lines to
manage short term tightness
6 |India Infoline Finance Limited
Annual Report 2011-12 |
7

PERFORMANCE HIGHLIGHTS
RISK MITIGATION FRAMEWORK
CAGR 55.2%
1.6
2.4
2.3
5.2
9.5
CAGR 67.0%
524.8
1,665.1
1,741.8
2,263.1
4,080.5
CAGR 44.9%
239.4
691.2
537.9
922.5
1,053.8
CAGR 5.9%
11,354
12,108
12,644
13,412
14,282
IIFL’s Capital Adequacy Ratio
is well above RBI norms
47.7% 47.7%
8000
Comfortable Asset Liability
Management
6000
29.9% 29.7%
17.9% 15.5%
4000
Assets
Liabilities
2000
FY10
FY11
FY12
0
Capital Adequacy
Tier-I Ratio
0 1 3 5 >5
2007-08
2008-09
2009-10
2010-11
2011-12
Revenue (` billion)
2007-08
2008-09
2009-10
2010-11
2011-12
Net Interest Income
(` million)
2007-08
2008-09
2009-10
2010-11
2011-12
Profit after tax
(` million)
2007-08
2008-09
2009-10
2010-11
2011-12
Net worth (` million)
Non-performing Assets are
significantly lower than industry
levels
0.60%
0.46% 0.44%
0.36%
0.56%
0.40%
100%
80%
60%
Provisioning Norms are more stringent
than those prescribed by the RBI
CAGR 29.3%
1.59
2.91
2.27
3.89
4.44
CAGR 6.2%
47.88
51.06
53.32
56.55
60.92
CAGR 63.8%
9.37
9.56
16.27
32.89
67.46
FY10 FY11 FY12
Gross NPA Net NPA
40%
20%
0%
1 4 6 12 16 24 28 36 48 51 62
Banks
NBFCs
IIFL
Note: Provision for standard loans in the NBFC is 0.25% at 90dpd provisioning done for HFC loans
Norms used by IIFL more stringent than those prescribed by RBI
More than 90% of the assets are low risk as per CRISIL’s Risk Continuum
Mortgage
Loans
Gold
Loans
Healthcare
finance
New vehicle
finance
Second hand
vehicle finance
Loans
against
shares
Personal Credit card
loans receivables
2007-08
2008-09
2009-10
2010-11
2011-12
2007-08
2008-09
2009-10
2010-11
2011-12
2007-08
2008-09
2009-10
2010-11
2011-12
45% 41%
% of
FY12
portfolio
Low Risk
2% – – 12% 0.2% –
Secured
Loans
In order of increasing risk
Unsecured
Loans
IIFL offering
Non-IIFL offering
Product
Earning per share (`)
Book value per share (`)
Book Size (` billion)
8 |India Infoline Finance Limited
Annual Report 2011-12 |
9

INDUSTRY
OVERVIEW
The Indian economy is expected to
grow at a rate of about 6.5% in FY13
(RBI estimates). This growth is
represented by a burgeoning middle
class with a high level of disposable
income. India has a strong middle class
of 250-300 million expected to double
in the next two decades. The country is
set to become the fifth largest
consumer economy with aggregate
consumption likely to grow to 1.53
trillion US$ in 2025. (Source: PwC
ASSOCHAM: Opportunities &
Challenges: Indian Financial Markets –
Roadmap 2020). Owing to the higher
level of disposable income, people are
now ready to finance their needs
through credit. Consumers are
borrowing in increasing numbers to
fund their purchases of assets such as
homes and cars as well as to fulfill
needs such as higher education. Factors
such as growing number of credit
worthy households, increasing desire
and readiness by consumers to acquire
assets on credit, and legislative changes
offering greater protection to lenders
against faults have contributed to the
growth of the consumer lending
market in India.
The Indian financial sector primarily
comprises banks, non-banking financial
corporations (NBFCs) and Housing
Finance Corporations (HFCs). It
reported a compounded annual growth
rate (CAGR) of 19% over the last three
years, with a credit portfolio of about
` 49 trillion at the end of 2011. Banks
accounted for nearly 86% of the credit
portfolio, NBFCs accounted for about
10%, while HFCs accounted for around
4% of this credit portfolio. However,
the focus of banks is mostly on lending
to industrial and corporate houses and
salaried individuals, which leaves a
huge market of small businesses, selfemployed
individuals and retail
consumers largely untapped. Even in
rural areas, focus of the bank branches
has been high on deposit raising and
meeting priority sector lending targets,
and low on credit delivery. This
represents a tremendous growth
potential to the NBFCs, especially
because of their reach to a wider
audience across the country. The
proximity of the NBFCs to their clients is
what distinguishes NBFCs from banks,
which would also enable the
government and the regulator to fulfill
the mission of financial inclusion.
Housing Loans
Currently, about 30 per cent of the
country's population lives in cities and
urban areas, and this is projected to
reach 50% by 2030 (Source: National
Housing Board). In spite of this, the
outstanding housing loans account for
only 7.25 per cent of India's GDP, when
compared with China (12 per cent),
Thailand (17 per cent), and Malaysia
(29 per cent). The sector faces a
number of hurdles such as increasing
interest rates due to the antiinflationary
stance by RBI and
uncertainties relating to landacquisition
policy.
The key drivers for the growth in the
housing loan industry are:-
- Property is increasingly being viewed
as a savings or investment vehicle
- Tax incentives on home loans for
interest repayment
- Changing social structure, with
increasing rate of urbanisation and
number of nuclear families
- Large proportion of population in
India is below the age of 30 years who
is increasingly looking to buy their own
residential property
- Increase in supply of affordable
homes and expectations of price
increase in the residential real estate
market, leading to increasing
investments in the real estate sector
Thus, if the hurdles that the sector is
facing are overcome through policy
changes by the policy makers, it offers
a huge potential of growth.
Loans against Property
Loan against property is a secured
avenue for lending to small businesses
against the mortgage of property to
fund their working capital and/or
project finance needs. The loan is given
as a percentage of the property’s
market value, and helps unlock the
hidden value in the property owned.
Since the loan is backed by a security,
the borrower is able to borrow funds at
a lower rate, and for a longer tenure.
With an increasing number of people
turning to real estate as an investment
avenue, loans against property is set to
get a boost as investors may look to
borrow against the invested property
for funding their financial
requirements.
Gold Loans
According to estimates, the organised
gold loan market in India stands at
` 350-400 billion. The organised gold
loan market has witnessed a 40%
CAGR from 2002 to 2010. NBFCs have
been a major driving force behind this
growth because of their features such
as extensive network, faster turnaround
time, higher loan-to-value ratios and
the ability to serve non-bankable
customers.
RBI came out with certain regulations
for companies offering gold loans in
March 2012. These regulations are
expected to have some short term
impacts on volumes; however, in the
long run, they are expected to have a
positive impact on the sector because it
will ensure that prudential risk
management policies are practiced by
the companies.
These guidelines are also expected to
protect the gold loan companies from
sudden or steep fall in gold prices. They
have been issued with a view to create
a robust capital structure for the
companies.
Growth in asset size of
NBFCs offering Gold Loans
Total Asset size (` in billion)
FY09
54.8
FY12
445.1
(Source: RBI Financial Stability Report)
Loans against Capital
Market Instruments
Loans against shares is an avenue for
lending to individuals with a need for
instant liquidity for meeting
contingencies and needs of personal
nature or for subscribing to rights or
new issue of shares/debentures against
the security of existing
shares/debentures. A loan against
shares is simply obtained by pledging
the shares owned by the individual
with the lending agency. The
performance of this product depends
largely on the performance of the
capital markets. The volatility in the
markets and negative sentiments
impacted the product performance in
the current financial year.
Healthcare Financing
There is a growing demand for better
healthcare facilities in India, given the
growth rate of 2.5% per annum of the
Indian population along with the
increasing discretionary income
available for spending on higher quality
healthcare and medical facilities. The
medical device consumer base
constituted mostly by middle class and
richer social classes, is expected to
grow by 17% annually, to exceed 268
million by 2015. Medical tourism is
another major driver of growth of the
Indian healthcare sector, expected to
grow to ` 67 billion till the end of the
year. Thus, healthcare financing
represents a huge potential market,
waiting to be tapped.
Indian Medical Devices Size
and Market Forecast (2009-13)
in US$ millions
2,772.9
3,403.0
4,185.7
5,189.3
6,409.9
2009
2010
2011
2012
2013
Source: CII-KPMG Report on Excellence
in Diagnostic Care
Outlook
Notwithstanding global turmoil,
regulatory tightening and cyclical
economic downtrend, financial services
industry in India on the whole, will
continue to march ahead at a healthy
pace. Your company has a de-risked
business model with multiple products
and is well placed to participate in the
industry growth.
Demand for home loans, mortgages,
gold loans and health care equipment
loans should continue to register
healthy growth, driven by favorable
demographics, growth in disposable
income and under- penetration of
credit. We expect interest rates to
remain stable or move southward and
liquidity to ease. This should augur well
for demand growth in financing and
lending business.
10 |India Infoline Finance Limited
Annual Report 2011-12 |
11

BUSINESS
OVERVIEW
market instruments and medical
equipments.
Future Roadmap
The division expects to leverage the
flagship company’s extensive pan-India
branch network to grow its loan book.
With Tier II and Tier III cities being the
focal points driving India’s growth story
in the coming decade, the division
plans to cater to the funding needs of
the aspiring and enterprising
population in these cities. It will also be
important to maintain the ongoing
investment in technology, logistics and
manpower - all of which will be the
foundation for managing this extensive
distribution network.
While the regulatory environment
continues to be increasingly
challenging, and the macro-economic
environment and high interest rate
scenario continuing to impact business
sentiments, selection of customer and
pricing the product appropriately is the
key to managing loan portfolio
effectively.
Communication and customer service
par excellence will continue to be a
priority. Delighting the customer with
superior service, within reasonable
time, will be a key differentiator
amongst competition.
Loan Portfolio growth driven
mainly by new products
Existing Products
New Products
9.6
16.3
1.4
29.2
31.5 38.2
FY09 FY10 FY11 FY12
(Figures in ` billion)
FINANCING YOUR DREAMS
Be it a house or a holiday abroad or an
entrepreneurial venture, we offer tailormade
loans against the security of an
asset, be it home, property, stocks or
gold. We also help doctors and medical
practitioners make their dreams of own
clinic or modern, sophisticated clinic
come true. We help you to unlock the
value of your asset to fulfil your
dreams.
Brief Snapshot
India Infoline Finance Limited offers
credit and finance through a wide
range of secured loan products
including home loan, loan against
property (for individuals and
corporates), loan against capital market
instruments, healthcare equipment
financing and loans against gold. The
Company is on an upward growth
trajectory, with 105% yoy growth in the
loan book in 2011-12.
IIFL’s robust credit and risk
management processes have resulted in
NPAs being less than 1%. The Company
has deployed proprietary loanprocessing
software that enables
stringent credit checks and fast
application processing.
Major Highlights
• Size of loan book increased to ` 67.5
billion as on March 31, 2012 from
` 32.9 billion at the close of 2010-11,
thus registering a yoy growth of more
than 100%.
• Home loans and loan against
property contributed to 44.8% of the
total loan book. Additionally,
proportion of loan against gold
increased from 3.9% in 2010-11 to
41% in 2011-12. Loan against capital
market products reduced significantly
from 35.2% in 2010-11 to 11.8% due
to high volatility and downturn in the
markets. Other loan products including
medical equipment financing and
personal loans contributed to 2.4% of
the total loan book.
• The overall Gross NPA of the
Company stood at 0.56%. Capital
Adequacy Ratio was maintained at
17.86%, well above the level of 15% as
required by the RBI regulations.
• The Company successfully completed
initial Public Offering of Secured
Redeemable Non-Convertible
Debentures (“NCDs”) aggregating to
` 7,500 million. These NCDs are listed
and traded on Wholesale Debt Market
(WDM) segment of the National Stock
Exchange and Bombay Stock Exchange
and have been rated ‘[ICRA]AA-
(stable)’ by ICRA, and ‘CARE AA-' by
CARE
• Merging of Moneyline Credit Limited,
a step down NBFC subsidiary with India
Infoline Finance Limited has enabled
consolidation of all lending and
investments businesses (except housing
loans) under one NBFC subsidiary to
ensure better operations and control
Core Competencies
• Team of experienced professionals
with work experience at globally
respected financial houses
• Pan-India network and a strong
distribution of over 1200 branches with
wide-spread presence in Tier-II and III
cities
• Presence of a proprietary loanprocessing
system that enables
stringent credit checks, faster loan
processing, extensive data capture and
higher accuracy.
• Diversified range of secured loan
portfolio against property, gold, capital
Dependence on commercial paper and short term funds reduced
significantly from 38% to 29% despite increase in overall book.
Borrowing Profile: FY11
Loans from
banks 46%
FY09
Non Convertible
Debentures 16%
19%
24%
57%
Commercial
paper 38%
6%
52%
1%
35%
4%
Loans from
banks 51%
The loan book is now well-diversified
42% 59% 45%
FY10 FY11 FY12
Borrowing Profile: FY12
2%
12%
41%
Mortgage Gold Capital market Healthcare Unsecured
Non Convertible
Debentures 20%
Commercial
paper 29%
12 |India Infoline Finance Limited
Annual Report 2011-12 | 13

IIFL GROUP INITIATIVE
FOR FINANCIAL LITERACY
FLAME
Launched a comprehensive Financial Literacy Certification Course for the students of Standards VIII, IX and X. Across the
country, over 45 schools participated in the FLAME contest with over 5,000 students. Merit certificates were awarded to
students who secured 75% and above. Other participants were given Participation Certificates for taking initiative in
educating themselves.
Sponsored Swadhaar Finaccess (SFA), an NGO to
impart financial education to women living in
slum communities. The course covered key
financial concepts like understanding the
different sources of income, budgeting, savings
and credit management.
Tied-up with K J Somaiya and launched a sixmonth
program to impart financial
knowledge to physically handicapped and
underprivileged sections of the society. It was
a six-month long program which covered
lessons on savings, budgeting, banking,
microfinance and self-help groups (SHGs).
Financial literacy workshops conducted for
engineering students and Industrial Training
Institute (ITI) students of Don Bosco Institute of
Technology, Vidya Vihar, Kurla. Students were
introduced to key concepts of money, principles
of savings and budgeting, banking, taxation,
prudent investment avenues and basic
accountancy.
Held over 270 free-of-cost FLAME
workshops across the country, including
Tier-II and Tier-III cities. Further, we are
also co-conducting sessions with other
organisations and institutions in order to
reach a wider audience.
14 |India Infoline Finance Limited
Annual Report 2011-12 | 15

DIRECTORS’ REPORT
Your Directors have pleasure in presenting the Eighth Annual Report of your Company with the audited financial statements for
the financial year ended March 31, 2012.
Standalone Financial Results
(` million)
Particulars 2011-12 2010-11
Gross Total Income 9,103.7 4,519.0
Less: Expenditure 7,663.7 (3,324.6)
Profit/(Loss) Before Taxation 1,440.0 1,194.4
Less: Taxation - Current 506.9 380.5
- Deferred (80.0) (22.9)
- Short Provision of Tax for earlier year (5.3) 10.2
Net Profit/(Loss) After Tax 1,018.4 826.6
Consolidated Financial Results
(` million)
Particulars 2011-12 2010-11
Gross Total Income 9,535.9 5,194.9
Less: Expenditure 8,034.2 (3,854.5)
Profit /(Loss) Before Taxation 1,501.7 1,340.5
Less: Taxation - Current 528.1 427.6
- Deferred (81.7) (22.3)
- Short Provision of Tax for earlier year 1.5 12.7
Net Profit/(Loss) After Tax 1,053.8 922.5
Review of Business
Your Company’s loan book almost doubled during the year to
` 67,470 million from ` 32,890 million in 2011-12. Home
loans and loans against property constituted 44.68% and
gold loan 41.07% of the loan portfolio, while capital market
products stood at 11.86%. The newly commenced medical
equipment portfolio constituted 2.23% of the loan portfolio.
Our unsecured portfolio of personal loans which was
discontinued in 2008 stood at 0.16% of the total portfolio.
On a consolidated basis, your Company’s income significantly
increased by 83.56% to ` 9,535 million and profit after tax
increased by 14.23% to ` 1,053 million during the year.
The growth in loan book in the current year was driven by
your Company’s capability to originate retail and wholesale
assets against collateral of properties through its distribution
network and scaling up of gold loan portfolio through its
nationwide network.
Change of Name
During the year under review, the name of the Company was
changed from “India Infoline Investment Services Limited” to
“India Infoline Finance Limited” after receiving due approvals
from the concerned regulatory authorities.
16 |India Infoline Finance Limited Limited

Merger of Moneyline Credit Limited with
the Company
Moneyline Credit Limited (“MCL”), a wholly-owned subsidiary,
has been amalgamated with the Company with effect from
April 01, 2011. The Scheme of Amalgamation was
sanctioned by the Hon'ble High Court of Judicature at
Bombay vide order dated February 10, 2012 and filed with
ROC on March 26, 2012. Pursuant to the Scheme, the
Authorised Share Capital of your Company increased to
` 3,200 million.
Public Issue of Debentures
During the year under review, your Company successfully
completed its maiden Public Issue of Secured Redeemable
Non-Convertible Debentures (“NCDs”) aggregating to ` 7,500
million (the “Issue”). These NCDs are listed and traded on
Wholesale Debt Market (WDM) segment of the National
Stock Exchange and Bombay Stock Exchange.
Assignment of loan portfolio
During 2011-12, your Company assigned a loan portfolio to
the extent of ` 4,644.40 million to various banks. These
assignments of loans are made on true sale basis.
Transfer to Reserve
During 2011-12, your Company transferred ` 208.39 million
(20% of the net profit for the year) to Special Reserve as
required under the provisions of Section 45 IC of The Reserve
Bank of India Act, 1934.
Deposits
The Company has not accepted any deposits within the
meaning of Section 58A of the Companies Act, 1956 and the
rules made there under.
Risk Management and Internal Controls
Your Company’s business strategy is to have a diversified
secured loan portfolio in niche and promising segments
including home loans and loans against property, loans
against securities, gold loans and medical equipment
financing segments. In accordance with this, your Company
has built a well diversified and balanced business portfolio
and set to grow the same. This minimises the risks from any
single sector exposure.
The lending business is regulated by RBI and NHB who
introduced a series of regulatory changes and tightening
measures particularly in the last one year, some of which
pertain to sectoral lending within the overall lending
businesses such as gold loan business. The Company adhered
to all the regulatory requirements stipulated by the regulators
from time to time, and also implemented in strengthening
the systems and processes across the entire spectrum of its
functioning.
The Company’s well-defined organisational structure,
documented policies and Standard Operating Procedures
(SOP’s), authority matrix and internal controls ensure
efficiency of operations, compliance with internal policies and
regulatory requirements. The internal control system is
supplemented by concurrent and internal audits as well as
special audits such as credit audit and regular reviews by
management. The Audit Committee of the Board reviews
internal audit reports along with management comments.
The Audit Committee also monitors the implementing the
status of comments/actions.
The credit proposals are considered and approved by the
multi level Credit and Investment Committees comprising
Directors of the board/Head of Departments. The Company
has put in place standard operating procedures for every
segment of lending business including loans against
properties, gold loans, loans against securities and medical
equipment loans.
Your Company has in place the Risk Management Committee
and Asset Liability Management Committee (ALCO)
comprising Directors and senior officials which regularly
meets and reviews the policies, systems, controls and
positions of credit and finance business. The Risk Committee
reviews the risk management processes covering credit and
underwriting controls, operations, technology and
compliance risks. The ALCO committee reviews the strategic
management of interest rates and liquidity risk, review of
product pricing for various loans and advances, desired
maturity profile and mix of the incremental asset and
liabilities. It also reviews the funding policies of your
Company in the light of interest rate movements and desired
fund mixes particularly fixed/floating rate funds,
wholesale/retail funds, money market funding, among others.
In order to enable frequent reviews and actions, an internal
ALCO committee has also been put in place comprising the
business heads of credit and finance, and finance heads
which meet on a monthly basis, analyse and initiate
appropriate actions keeping in view the emerging conditions.
Your Company also engaged a senior consultant with wide
banking and treasury management experience to advise on
setting up ALCO systems and review process.
Your Company retained a reputed global firm Ernst & Young
as its Group Internal Auditor. The Company also had in place
a few specialised audit firms to carry out specific/concurrent
audit of some critical functions such as KYC process, branches
audits and loan documentation audits among others. During
the year, the Company also carried an elaborate credit audit
Annual Report 2011-12 | 17

and systems and process audit covering all segments of the
loan portfolio through experienced professionals. Your
Company has an internal team of audit professionals at head
office in Mumbai, supported by regional teams at zonal
offices. The internal team undertakes special situation audits
and follows up on implementation of Internal Auditors’
recommendations. The Auditors’ reports and
recommendations and rectifications/implementations are
reviewed by the top management and Audit Committee at
regular intervals. The internal processes were designed to
ensure adequate checks and balances at every stage. The
Company also has to comply with several specific audits that
are required by regulatory authorities and the reports are
submitted to the regulators periodically.
Corporate Governance
The Company has fully complied with the Corporate
Governance Guidelines for NBFCs issued by Reserve Bank of
India vide circular No. DNBS(PD) CC No. 94/03.10.042/2006-
07 dated May 8, 2007. In accordance with the said Corporate
Governance Guidelines, the Company has put in place the
Audit Committee, Nomination Committee, Risk Management
Committee and Asset Liability Committee and ensures best
corporate practices to increase the investors and other
stakeholders confidence.
Audit Committee
As per the requirements of Section 292A of the Companies
Act, 1956, the Company constituted an Audit Committee
comprising the following Directors:
a) Mr. Nilesh Vikamsey (Chairman and Independent Director)
b) Mr. Pratima Ram (Wholetime Director and CEO)
c) Mr. M. N. Singh (Independent Director)
Nomination Committee
a) Mr. M. N. Singh (Independent Director)
b) Mr. Nilesh Vikamsey (Independent Director)
c) Mr. Nirmal Jain (Director)
d) Mr. R. Venkataraman (Director)
Risk Management Committee
a) Mr. Arun Kumar Purwar (Non-Executive Chairman)
b) Mr. Nilesh Vikamsey (Independent Director)
c) Mr. Nirmal Jain (Director)
d) Mr. L. P. Agarwal (Group Chief Financial Officer)
Assets and Liabilities Committee
a) Mr. A. K. Purwar (Non-Executive Chairman)
b) Mr. Nirmal Jain (Director)
c) Ms. Pratima Ram (Wholetime Director and CEO)
d) Mr. L. P. Aggarwal (Group Chief Financial Officer)
All the above Committees regularly meet and review the
policies and status of implementation.
Additionally, your Company is broadly in compliance with
most of the requirements of the Corporate Governance
Voluntary Guidelines, 2009 issued by the Ministry of
Corporate Affairs, Government of India and is in the process
of implementing other suggestions. Important compliances
implemented by the Company are given below:
a) Separation of offices of Chairman and Chief
Executive: The roles and offices of Chairman and Chief
Executive are separated. Mr. A. K. Purwar is a Non-Executive
Chairman of the Company and Ms. Pratima Ram is the
Wholetime Director and Chief Executive Officer of the
Company.
b) Remuneration of Directors: The Directors of the
Company who are Wholetime Directors of India Infoline
Limited, the holding company, draw remuneration from India
Infoline Limited. The other Directors on the Board are paid
sitting fees for attending the meetings of the Board and/or
any Committee thereof. The Commission is paid to
Independent Directors.
c) Independent Directors: Independent Directors are not
involved in the day-to-day management of the Company.
d) Number of companies in which an individual may
become a Director: The Company appraised its board
members about the restriction on number of other
directorships.
e) Internal Auditors: The Company has an internal audit
department which carries out audits in designated areas.
f) Internal Control: The Board and Audit Committee reviews
the effectiveness of your Company’s system of internal
controls including financial, operational and compliance
controls and risk management systems on a periodical basis.
Regulatory Compliance
The Company complied with all the applicable guidelines
prescribed by RBI for NBFCs regarding KYCs, PMLA,
accounting standards, prudential norms including income
recognition, capital adequacy, and guidelines on Corporate
Governance, among others.
Capital Adequacy:
Your Company has a Capital to Risk Assets Ratio (CRAR) of
17.86% as on March 31, 2012, which is well above the
prescribed minimum CRAR of 15% by the Reserve Bank of
India.
Directors
In accordance with the provisions of Section 255 and 256 of
18 |India Infoline Limited

the Companies Act, 1956 and in terms of applicable
provisions of the Articles of Association of the Company, Mr.
Nirmal Jain and Mr. M. N. Singh, Directors of the Company
retire by rotation and being eligible, offer themselves for
reappointment.
Directors’ Responsibility Statement
As required under the Section 217(2AA) of the Companies
Act, 1956, your Directors declare and certify that: -
(a) in the preparation of the annual accounts, the applicable
accounting standards have been followed
(b) the Board of Directors have selected the accounting
policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of your Company at
the end of the financial year and of the profit of the
Company for that period.
(c) the Board of Directors have taken proper and sufficient
care for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act, 1956
for safeguarding the assets of your Company and preventing
and detecting fraud and other irregularities.
(d) the Board of Directors have prepared the annual accounts
on a going concern basis.
Auditors
M/s Sharp & Tannan Associates, Chartered Accountants,
Statutory Auditors of the Company retire at the conclusion of
the ensuing Annual General Meeting and being eligible offer
themselves for reappointment. Certificate under Section
224(1B) has been obtained from M/s Sharp & Tannan
Associates, to the effect that they are eligible to be appointed
as the Statutory Auditors of the Company.
Your Board and Audit Committee recommends appointment
of M/s Sharp & Tannan Associates as the Statutory Auditors
of the Company to hold office from this Annual General
Meeting to the next Annual General Meeting.
Subsidiaries
As on March 31, 2012, the Company has the following two
subsidiaries:
a) India Infoline Housing Finance Limited
b) India Infoline Distribution Company Limited
Pursuant to the general exemption granted by the Ministry of
Corporate Affairs vide circular dated February 08, 2011, the
Board of Directors had at their meeting held on May 07,
2011 approved attaching the consolidated financials of all
the subsidiaries of the Company along with that of the
Company. The copies of the Balance Sheet, Profit and Loss
Account, Report of the Board of Directors and Report of the
Auditors of each of the subsidiary companies are not
attached to the accounts of the Company for financial year
2011-12. The Company will make available these
documents/details upon request by any member of the
Company. These documents/details will also be available for
inspection by any member of the Company at its registered
office and also at the registered offices of the concerned
subsidiaries. As required by Accounting Standard - 21 (AS-21)
issued by the Institute of Chartered Accountants of India,
your Company’s consolidated financial statements included in
this Annual Report incorporates the accounts of its
subsidiaries. A summary of key financials of the Company’s
subsidiaries is also included in this Annual Report.
Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings
and Outgo
The Disclosure of Information on Conservation of Energy,
Technology Absorption etc, required to be disclosed in terms
of Section 217 (I) (e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 have not been given since
your Company is engaged in financial services industry, and
has not carried on any manufacturing activity. The operations
of the Company are not energy-intensive. However, it is the
policy of the management to keep itself abreast of
technological developments in the field in which your
Company is operating and to ensure that your Company uses
the most suitable technology.
The Company had no foreign exchange earnings and outgo
during the year.
Particulars of Employees
There are no employees who are in receipt of remuneration in
excess of the rates or amounts as specified under Section
217(2A) of the Companies Act, 1956, read with Companies
(Particulars of Employees) Rules, 1975.
Acknowledgements:
Your Directors take this opportunity to thank the Reserve
Bank of India, Banks and Financial Institutions and other
stakeholders for their continued support and assistance
during the period under review. Your Directors would also like
to thank the employees for their dedication towards the
growth of the Company.
Date: 15th May, 2012
Place: Mumbai
For and on behalf of the Board
sd/-
A.K. Purwar
Non Executive Chairman
Annual Report 2011-12 |
19

20 |India Infoline Finance Limited
FINANCIAL SECTION

Auditors’ Report
To the members of
India Infoline Finance Limited
(Formerly, India Infoline Investment Services Limited)
We have audited the attached Balance Sheet of India Infoline
Finance Limited, as on 31st March 2012, the statement of Profit
and Loss and also the Cash Flow Statement for the period ended
on that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is
to express an opinion on these financial statements based on our
audit.
We have conducted our audit in accordance with the auditing
standards generally accepted in India. Those standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In accordance with the provisions of section 227 of the Companies
Act, 1956, we report that:
1. As required by the Companies (Auditor’s Report) Order, 2003,
issued by the Central Government of India under sub-section
(4A) of section 227 of the Companies Act, 1956, and on the
basis of such checks of books and records of the Company as
we considered appropriate and according to the information
and explanations given to us, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of
the said Order.
2. Further to our comments in the Annexure referred to above,
we report that:
i) We have obtained all the information and explanations,
which to the best of our knowledge and belief were
necessary for the purpose of our audit;
ii) In our opinion, proper books of account as required by law
have been kept by the Company so far as appears from our
examination of the books;
iii) The balance sheet, statement of profit and loss and also
the cash flow statement dealt with by this report are in
agreement with the books of account;
iv) In our opinion, the balance sheet, statement of profit and
loss and also the cash flow statement dealt with by this
report comply with the accounting standards referred to in
sub-section (3C) of Section 211 of the Companies Act,
1956;
v) On the basis of written representations received by the
Company from its Directors as on 31st March, 2012 and
taken on record by the Board of Directors, we report that
none of the director is disqualified as on 31st March, 2012
from being appointed as a Director in terms of the clause
(g) of sub section (1) of section 274 of the Companies Act,
1956;
In our opinion, and to the best of our information and according
to the explanations given to us, the said accounts, read together
with the significant accounting policies and notes to accounts,
give the information required by the Companies Act, 1956, in the
manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India;
a. In case of Balance sheet, of the state of affairs of the Company
as at March 31, 2012;
b. In case of Statement of Profit and Loss, of the profit for the
year ended on that date; and
c. In case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No.109983W
By the hand of
Tirtharaj Khot
Place: Mumbai
Partner
Date: May 15, 2012 Membership No.: (F) 037457
Annual Report 2011-12 |
21

Annexure to Auditors’ Report
Annexure referred to in paragraph 1 of our report dated 15th May, 2012 to the members of India Infoline Finance Limited
1. (a) The Company has maintained adequate records to show
full particulars, including quantitative details and situation
of the fixed assets. However updation for the current year
transactions is in progress.
(b) The Company has formulated a programme of physical
verification of its fixed assets in a phased manner. In
accordance with this program, a physical verification of
certain fixed assets has been carried out by management
during the year and there are no material discrepancies
observed between assets physically verified and book
balances. In our opinion, the periodicity of verification is
reasonable having regard to the size of the Company and
the nature of its assets.
(c) The Company has not disposed of any substantial part of
its fixed assets so as to affect its going concern status.
2. The Company is not carrying on any manufacturing or trading
activity. Therefore, the provisions of sub clause (a), (b) and (c)
of clause (ii) of paragraph 4 of the Order are not applicable to
the Company.
3. (a) The Company has granted loan to three companies
covered under register maintained under Section 301 of
the Companies Act, 1956. The maximum amount involved
during the year was Rs.336,60,59,425/- and the year, end
balance of the loan granted to such Company was
Rs.244,47,00,001/-
(b) The rate of Interest on loan given is, in our opinion, not
prima facie prejudicial to the interest of the Company.
There are no other terms and conditions prescribed.
c)There are no stipulations as to repayment of principal and
interest amount.
(d) There is no overdue amount in excess of Rs.1 Lakh in
respect of loan granted to company listed in the register
maintained under Section 301 of the Companies Act,
1956, since repayment schedule is not stipulated.
(e) The Company has not taken any loans from the
companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act,
1956. As the Company has not taken any loans, the
provisions of sub clause (e), (f), and (g) of clause (iii) of
paragraph 4 of the Order are not applicable to the
Company.
4. In our opinion and according to the information and
explanations given to us, there are adequate internal control
systems commensurate with the size of the Company and
nature of its business, for the purchase of fixed assets and sale
of services. Further, on the basis of our examination of the
books and records of the Company, and according to the
information and explanations given to us, we have neither
come across nor have we been informed of any continuing
failure to correct major weaknesses in the aforesaid internal
control systems.
5. (a) In our opinion and according to the information and
explanations given to us, the particulars of contracts or
arrangements that need to be entered into a Register in
pursuance of Section 301 of the Companies Act, 1956 and
those brought to our notice, have been so entered.
(b) In our opinion and according to the information and
explanations given to us, the transactions in pursuance of
such contracts or arrangements entered in the register
maintained under section 301 of the Companies Act, 1956
and exceeding the value of rupees five lakhs in respect of
any party during the year, have been made at prices which
are not comparable since the prevailing market prices of
such services, in view of the management, are not readily
available.
6. The Company has not accepted any deposits from the public
of the nature which attracts the provisions of Section 58A,
58AA or any other relevant provisions of the Companies Act,
1956 and the rules made there under. Therefore, the provision
of clause (vi) of paragraph 4 of the Order is not applicable to
the Company.
7. In our opinion, the Company has an internal audit system
commensurate with its size and nature of its business.
8. As per the information and explanations given to us, in respect
of the class of industry the Company falls under, the
maintenance of cost records has not been prescribed by the
Central Government under section 209 (1) (d) of the
Companies act, 1956. Therefore, the provision of clause (viii) of
paragraph 4 of the Order is not applicable to the Company.
9. (a) According to the information and explanations given to us,
and as per the records of the Company, in our opinion the
Company is generally regular in depositing undisputed
statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees’ State
Insurance, Income tax, Sales tax, Wealth tax, Service tax,
Customs duty, Excise duty, Cess and other material
statutory dues with the appropriate authorities, where
applicable. Based on the information furnished to us, there
are no undisputed statutory dues as on 31st March 2012,
which are outstanding for a period exceeding six months
from the date they became payable, except for profession
tax amounting to Rs.4, 41,108/-, which has remained
outstanding for a period exceeding six months, pending
due to complexities in registration of numerous branch
offices according to respective state/union territory laws.
22 |India Infoline Finance Limited

(b) According to the information and explanations given to us, and as per the records of the Company examined by us, there are no
cases of non-deposit with the appropriate authorities of disputed dues of sales tax / income tax / customs tax / wealth tax / service
tax / excise duty and cess as at 31st March, 2012 which have been not deposited on account of dispute pending, and amount
involve and the forum where disputes is pending as under :
Name of the Nature of the Amount of Period to which the Forum where
Statute disputed dues Tax (`) amount relates dispute is pending
Income Tax Disallowance Demand of Rs.44,69,700/- amount A.Y. 2007-2008 Commissioner of
Act, 1961 u/s 14(A) of IT act. paid Rs.44,69,700/-, Balance income tax appeal
outstanding NIL
Income Tax Disallowance Total amount of Demand A.Y. 2009-2010 Commissioner of
Act, 1961 u/s 14(A) of IT act. Rs.16, 87, 60,654/-plus interest income tax appeal
amounting to Rs.25, 40,448/-,
amount paid Rs.16, 56, 57,381/-.
Balance outstanding Rs.56,43,721/-
10. At the end of the financial year, the Company has no
accumulated losses exceeding fifty percent of its net worth.
Further, the Company has not incurred cash loss during the
financial year covered by our audit, and has not incurred cash
losses during the financial year immediately preceding financial
year.
11. Based on our audit procedures and according to the
information and explanations given to us, we are of the
opinion that the Company has not defaulted in repayment of
its dues to its financial institution, bank and debenture holders.
12. The Company has maintained adequate records in cases of
loans and advances granted on the basis of security by way of
pledge of shares, debentures or other securities.
13. The Company is not a chit fund or a nidhi / mutual benefit
fund / society. Therefore, the provisions of sub clause (a), (b),
(c) and (d) of clause (xiii) of paragraph 4 of the Order are not
applicable to the Company.
14. Based on our examination of the records, evaluation of the
related internal controls and records of the Company examined
by us, the Company has maintained proper records of
transactions and contracts in respect of its dealing or trading
in shares, securities, debentures and other investments, as
applicable, and timely entries have been made therein. The
aforesaid securities have been held by the Company in its own
name, except to the extent of the exemption granted under
Section 49 of the Companies Act, 1956.
15. The Company has not granted any guarantee for loans taken
by others from bank or financial institutions. Therefore, the
provision of clause (xv) of paragraph 4 of the order’s not
applicable to the Company.
16. According to the records verified by us, and based on
information and explanations given to us, the term loans have
been applied for which they were raised.
17. According to the information and explanations given to us and
on an overall examination of the balance sheet of the
Company, we report that no funds raised on short-term basis
have been used for long-term investments.
18. The Company has not made preferential allotment of shares to
parties and companies including those, covered in the register
maintained under Section 301 of the companies Act, 1956.
19. During the period covered by our audit report, the Company
has issued debentures. The Company has created security in
respect of debentures issued except for three non-convertible
debentures, issued on 31st January,2012, 2nd February,2012
and 1st March,2012, respectively, total amounting to Rs.60,
50, 00,000/-. We were explained that the Company is in
process of completing the procedure for creating security for
the same.
20. The Company has raised money by way of Secured
Redeemable Non-Convertible Debentures during the year. The
same has been utilized by the Company for the purpose and
objectives mentioned in the prospectus filed with Regulators.
21. During the course of our examination of the books and records
of the Company, carried out in accordance with the generally
accepted auditing practices in India, and according to the
information and explanation given to us, we have neither
come across any instances of material fraud on or by the
Company, noticed or reported during the year nor have we
been informed of such case by management.
Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No.109983W
By the hand of
Tirtharaj Khot
Place: Mumbai
Partner
Date: May 15, 2012 Membership No.: (F) 037457
Annual Report 2011-12 |
23

Standalone Balance Sheet as at March 31, 2012
(Amount in `)
Note As at As at
Particulars No. March 31, 2012 March 31, 2011
I. EQUITY AND LIABILITIES
1) Shareholders’ funds
a) Share Capital 3 2,371,540,300 2,371,540,300
b) Reserves and Surplus 4 11,953,360,867 10,858,789,813
14,324,901,167 13,230,330,113
2) Share application money pending allotment – –
3) Non-current Liabilities
a) Long-term borrowings 5 31,437,201,723 9,990,300,000
b) Deferred tax liabilities (Net) – –
c) Other long-term liabilities – –
d) Long-term provisions 6 161,554,348 71,501,232
31,598,756,071 10,061,801,232
4) Current liabilities
a) Short-term borrowings 7 20,339,362,175 8,932,109,110
b) Trade payables – –
c) Other current liabilities 8
- Borrowings 6,407,741,851 1,908,000,000
- Others 3,170,188,154 1,951,903,209
d) Short-term provisions 6 299,513,279 8,663,269
30,216,805,459 12,800,675,588
Total 76,140,462,697 36,092,806,933
II. ASSETS
1) Non-current assets
a) Fixed assets
i) Tangible assets 9 699,607,482 113,418,186
ii) Intangible assets 10 224,876 –
iii) Capital work-in-progress 12,147,314 –
iv) Intangible assets under development – –
711,979,672 113,418,186
b) Non-current investments 11 4,420,150,304 3,417,266,200
c) Deferred tax assets (Net) 12 115,410,103 30,046,072
d) Long-term loans & advances 13
- Loans 20,081,837,461 9,987,900,166
- Others 2,313,068,575 1,849,865,185
e) Other non-current assets 14 405,156,811 –
27,335,623,254 15,285,077,623
2) Current assets
a) Current investments 15 3,041,925,944 1,000,497,891
b) Inventories 16 107,386,579 223,833,262
c) Trade receivables – –
d) Cash and Bank balances 17 2,266,937,295 312,859,962
e) Short-term loans & advances 13
- Loans 39,526,189,298 18,579,134,212
- Others 2,496,027,798 251,968,451
f) Other current assets 14 654,392,857 326,017,346
Sub total 48,092,859,771 20,694,311,124
Total 76,140,462,697 36,092,806,933
See accompanying notes forming part of the financial statements 1-41
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
24 |India Infoline Finance Limited

Standalone Statement of Profit and Loss for the year ended March 31, 2012
(Amount in `)
Particulars Note No. 2011-2012 2010-2011
Revenue
Revenue from operations 18 8,681,269,848 4,255,090,338
Other Income 19 422,427,578 263,968,873
Total Revenue 9,103,697,426 4,519,059,211
Expenses
Employee benefit expenses 20 1,044,389,882 600,236,315
Finance cost 21 4,616,534,404 2,070,420,816
Depreciation & amortisation expenses 22 149,597,434 8,510,416
Other expenses 23 1,599,077,846 535,433,884
Provisions & Write off 24 254,108,578 110,035,611
Total Expenses 7,663,708,144 3,324,637,042
Profit / (Loss) before tax 1,439,989,282 1,194,422,169
Tax expenses :
Current tax expense for current year 506,869,182 380,494,244
Deferred tax (80,049,606) (22,884,625)
Current tax expense relating to prior years (5,341,730) 10,235,259
Total tax expense 421,477,846 367,844,878
Profit (loss) for the period 1,018,511,436 826,577,291
Earnings per equity share
(1) Basic 25 4.29 3.49
(2) Diluted 25 4.21 3.40
Face Value - 10.00 10.00
See accompanying notes forming part of the financial statements 1-41
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
Annual Report 2011-12 |
25

Cash Flow Statement for the year ended March 31, 2012
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before taxation, and extraordinary item 1,439,989,282 1,194,422,169
Adjustments for:
Depreciation 149,597,434 8,510,416
Provision for Doubtful Loans (Note : 24) 79,468,349 (537,830)
Provision for Standard Loans(Note : 24) 86,899,489 71,501,232
Provision for diminution in value of investments (Note : 24) 2,029,581 –
Provision for Contingencies (Note : 24) 46,707,807 –
Gratuity & Leave Enchasment 27,057,728 391,760,388 3,896,043 83,369,861
Operating profit before working capital changes 1,831,749,670 1,277,792,029
Increase / (Decrease) in trade payables – –
Increase / (Decrease) in long term provisions 3,153,627 –
Increase / (Decrease) in short term provisions (2,925,879) (3,521,073)
Increase / (Decrease) in Other liabilities 1,438,295,299 1,879,710,995
Increase / (Decrease) in Other long term liabilities – –
Decrease / (Increase) in trade receivables – –
Decrease / (Increase) in trade inventories 114,417,102 (110,140,074)
Decrease / (Increase) in long term loans & advances (10,572,788,472) (5,373,879,556)
Decrease / (Increase) in short term loans & advances (23,191,114,435) (8,137,500,770)
Decrease / (Increase) in other current assets (333,689,936) (209,233,362)
Decrease / (Increase) in other non current assets (111,863,067) (32,656,515,761) 69,772,568 (11,884,791,272)
Cash generated from operations (30,824,766,092) (10,606,999,242)
Tax (Paid) / Refund (565,348,014) (368,296,677)
Net cash from operating activities (31,390,114,106) (10,975,295,919)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets,including intangible assets,
Capital work-in-progress and Capital advances (748,158,920) (156,965,773)
Proceeds from sale of fixed assets
Proceeds of non-current investments (2,539,813,104) (295,211,200)
Purchase of non-current investments –
Purchase of current investments (2,041,428,053) (65,804,491)
Proceeds from sale/maturity of current investments –
Purchase of Investments (Subsidiaries) 1,536,929,000 (680,000,000)
Purchase consideration for amalgamation 76,059,618 –
Net cash from investing activities (3,716,411,458) (1,197,981,464)
26 |India Infoline Finance Limited

Cash Flow Statement for the year ended March 31, 2012
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid – (138,271,175)
Share issue expenses – (16,500,000)
Proceeds from long term borrowings 25,946,643,574 –
Repayment of long term borrowings – –
Proceeds from short term borrowings 11,407,253,065 –
Repayment of short term borrowings – –
Proceeds from borrowings (net) – 11,625,309,110
Net cash used in financing activities 37,353,896,639 11,470,537,935
Net increase in cash and cash equivalents 2,247,371,075 (702,739,448)
Opening Cash and cash equivalents
Cash on hand and balances with banks 312,859,962 1,015,599,411
312,859,962 1,015,599,411
Closing Cash and cash equivalents
Cash on hand and balances with banks 2,560,231,039 312,859,962
1. Cash flow statement has been prepared under the
Indirect Method as set out in the Accounting
Standard (AS-3)"Cash Flow Statement" issued by the
Institute of Chartered Accountants of India
2. Previous year's figure are re-grouped \ re-arranged
wherever necessary
3. Cash & cash equivalent as at the end of the year include:
Cash & bank balances (Refer Note 17) 2,266,937,295 312,859,962
Add: Fixed deposits considered under Other Non
current asset (refer Note 12) 293,293,744 –
Cash & cash equivalent at the end of the year 2,560,231,039 312,859,962
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
Annual Report 2011-12 |
27

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 1. CORPORATE INFORMATION:
The Company is a systemically important Non-Banking Financial Company (“NBFC”) registered with the Reserve Bank of India (RBI) under
section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company has received
the certificate of registration on May 12, 2005, enabling the Company to carry on business as Non-Banking Financial Company. The
Company offers broad suite of lending and other financial products such as mortgage loan, gold loan, loan against securities and health
care finance to retail and corporate clients. During the year under review, the name of the Company was changed from “India Infoline
Investment Services Limited” to “India Infoline Finance Limited” after receiving due approvals from the concerned regulatory authorities.
During the year under review, Moneyline Credit Limited, a wholly owned subsidiary, merged with the Company pursuant to order issued
by Hon'ble High Court at the judicature of Bombay.
Note: 2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of preparation of financial statements:
The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP)
to comply with all material aspects of the applicable Accounting Standards notified under the Companies (Accounting Standards)
Rules, 2006 (as amended), the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve bank of India
(RBI) as applicable to NBFCs. The financial statements have been prepared on accrual basis under the historical cost convention. The
accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
2.2 Prudential norms:
The Company follows the Reserve Bank of India (“RBI”) Directions in respect of “Non-Banking Financial (Non-Deposit Accepting or
Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 (“RBI Directions, 2007) dated February 22, 2007, as amended
from time to time in respect of income recognition, income from investments, accounting of investments, asset classification,
provisioning and disclosures in the Balance Sheet, Accounting Standards (AS) as notified by the Companies (Accounting Standards)
Rules, 2006 (as amended) and Guidance Notes issued by The Institute of Chartered Accountants of India (“ICAI”) are followed in so
far as they are not inconsistent with the RBI Directions.
2.3 Presentation and disclosure of financial statements:
During the year ended March 31, 2012, the Revised Schedule VI as notified under the Companies Act, 1956, has become applicable
to the Company, for preparation and presentation of its financial statements. Pursuant to applicability of Revised Schedule VI on
presentation of financial statements for the financial year ended March 31, 2012; the Company has classified all its assets / liabilities
into current / non-current portion based on the time frame of twelve months from the date of financial statements. Accordingly,
assets / liabilities expected to be realised / settled within twelve months from the date of financial statements are classified as current
and other assets / liabilities are classifies as non-current. Except accounting for dividend on investments in subsidiary companies, the
adopted Revised Schedule VI does not impact recognition and measurement principle followed for preparation of financial
statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has
also reclassified the previous year figures in accordance with the requirement applicable in the current year.
2.4 Use of estimates:
The preparation of financial statements in conformity with the generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statements and
the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are
recognized in the period in which the results are known / materialised.
2.5 Fixed assets and depreciation and amortisation:
Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss, if any, thereon. Depreciation is
charged using the straight line method based on the useful life of fixed assets as estimated by the management as specified below,
or the rates specified in accordance with the provisions of schedule XIV of the Companies Act, 1956, whichever is higher. In case of
transfer of used fixed assets from group companies, depreciation is charged over the remaining useful life of asset.
Depreciation is charged from the month in which new assets are put to use. No depreciation is charged for the month in which assets
are sold. Individual assets / group of similar assets costing upto Rs.5,000/- has been depreciated in full, in the year of purchase.
Estimated useful life of the assets is as under:
Class of assets
Useful life in years
Buildings 20
Computers 3
Electrical and office equipment 5
Furniture and fixtures 5
Vehicles 5
Software 3
2.6 Assignment of loan portfolio:
The Company derecognises the loans assigned to other parties due to surrender of effective control on such loans. Future interest
28 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
spread receivables in case of a par structure deals are recognised over the tenure of agreements as per guidelines issued by the RBI.
Expenditure in respect of direct assignment is recognised as and when incurred. Credit enhancement in the form of cash collateral
provided by the Company is included under Cash and bank balance / Loans and advances, as applicable.
2.7 Revenue recognition:
The Company complies, in all material respects, with the Accounting Standards, Prudential Norms relating to income recognition,
asset classification and the minimum provisioning for bad and doubtful debts and standard assets, specified in the directions issued
by the RBI, as applicable to it, and
• Interest income is recognised on the time proportionate basis as per agreed terms.
• Income recognised and remaining unrealised for ninety days or more for all the loans, except Capital Market Financing loans, are
reversed and are accounted as income when these are actually realised.
• Interest income on non-performing assets is recognised on cash basis.
• Dividend income is recognised when the right to receive payment is established.
• In respect of the other heads of income, the Company accounts the same on accrual basis.
• Processing fees received from customers is recognised as income on receipt basis.
2.8 Preliminary expenses:
Preliminary Expenses is written off in same financial year in which they are incurred.
2.9 Employee benefits:
The Company’s contribution towards Provident Fund and Family Pension Fund, which are defined contribution, are accounted for on
an accrual basis and recognised in the Statement of Profit & loss.
The Company has provided “Compensated Absences” on the basis of actuarial valuation.
Gratuity is post employment benefit and is in the nature of Defined Benefit Plan. The liability recognized in the Balance Sheet in
respect of gratuity is the present value of defined benefit obligation at the Balance Sheet date together with the adjustments for
unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is calculated at or near the Balance
Sheet date by an independent actuary using the projected unit credit method.
2.10 Provisions, Contingent liabilities and Contingent assets:
Non-performing loans are written off / provided for, as per management estimates, subject to the minimum provision required as per
Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. Provision
on standard assets is made as per notification dated January 17, 2011 issued by RBI. All such provisions are classified as long term
provisions.
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is
a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that
the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent Assets are neither recognized nor disclosed in the financial statements.
2.11 Taxes on income:
Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income-tax Act, 1961 enacted in India. Provision for current tax is computed based on estimated
tax liability computed after adjusting for allowance, disallowance and exemptions in accordance with the applicable tax laws.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the
current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rate and the tax laws enacted
or substantively enacted at the Balance Sheet date. The deferred tax asset is recognised or unrecognised, to the extent that it has
become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available. At each
reporting date, the Company re-assesses unrecognized deferred tax assets. Deferred tax liability is recognised as and when arisen.
2.12 Operating Leases:
Lease rentals in respect of operating lease arrangements are charged to the Statement of Profit & Loss in accordance with Accounting
Standard 19, issued by the Institute of Chartered Accountants of India.
2.13 Investments:
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments
are made, are classified as current investments. All other Investments are classified as non – current investments. Current investments
are stated at lower of cost or market / fair value. Non – current investments are carried at cost. Provision for diminution in value of
Annual Report 2011-12 |
29

Standalone Financial Statements of India Infoline Finance Limited
NOTES
non – current investments is made, if in the opinion of the management, such diminution is other than temporary. For investment in
mutual funds, the net assets value (NAV) declared by the mutual funds at the Balance Sheet date is considered as the fair value.
2.14 Inventories:
Closing stock is valued at cost or market value, whichever is lower. Cost is computed on FIFO basis.
2.15 Earnings Per Share:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Note: 3. SHARE CAPITAL
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Authorised Share Capital
300,000,000 Equity Shares (Previous year 300,000,000 equity shares) of Rs. 10 each 3,000,000,000 3,000,000,000
1,999,600 Equity Shares of Rs. 100 each # 199,960,000 –
150 Preference Shares of Rs. 100 each # 15,000 –
250 11% Non- cumulative redeemable preference shares of Rs 100 each # 25,000 –
Total 3,200,000,000 3,000,000,000
Issued, Subscribed and Paid-up share capital
237,154,030 Equity Shares (Previous year 237,154,030 Equity Shares) of Rs.10 each
with voting rights 2,371,540,300 2,371,540,300
# Pursuant to the merger of Moneyline Credit Ltd, a wholly owned subsidiary, with the Company, Refer Note 26 for details.
(i) Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period
As at March 31, 2012 As at March 31, 2011
Particulars No. of shares Amount in ` No. of shares Amount in `
At the beginning of the period 237,154,030 2,371,540,300 23,715,403 237,154,030
Issued during the period – Bonus issue – – 21,34,38,627 2,134,386,270
Outstanding at the end of the period 237,154,030 2,371,540,300 237,154,030 2,371,540,300
(ii) Rights attached to equity shares
The Company has only one class of issued equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees.
(iii) Details of shareholders holding more than 5% shares in the Company
As at March 31, 2012 As at March 31, 2011
Particulars No. of shares % holding No. of shares % holding
Equity shares of Rs.10 each fully paid
India Infoline Limited 234,467,549 98.87% 182,000,000 76.74%
India Infoline Marketing Services Limited* – – 52,838,700 22.28%
*India Infoline Marketing Services Limited (“IIMSL”), a wholly owned subsidiary of India Infoline Limited (IIL), has been merged with IIL with
effect from April 1, 2011. The merger was sanctioned by the Hon'ble High Court of Judicature at Bombay; vide its order dated 27th April
2012. Pursuant to the merger all the investments of IIMSL stand transferred to IIL.
(iv) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the
period of five years immediately preceding the reporting date:
March 31, 2012 March 31, 2011 March 31, 2010 March 31, 2009 March 31, 2008
Particulars No. of shares No. of shares No. of shares No. of shares No. of shares
Bonus issue – 213,438,627 – – –
(v) The Company has implemented Employee Stock Option Scheme – 2007. Under the said scheme 4,920,000 (Previous year 5,825,000),
stock options are in force as on March 31, 2012.
30 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 4. RESERVES AND SURPLUS
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Securities Premium Reserve
Opening balance 8,657,487,836 10,808,374,106
Addition during the year – –
Deduction during the year , for issue of bonus shares
and adjustment of share issue expenses. – (2,150,886,270)
Closing balance 8,657,487,836 8,657,487,836
General Reserve
Opening balance 83,000,000 –
Addition due to transfer during the year from surplus in the Statement of profit and loss – 83,000,000
Closing balance 83,000,000 83,000,000
Special Reserve (Pursuant to section 45-IC of Reserve Bank of India Act, 1934)
Opening balance 471,706,337 305,706,337
Addition due to merger of Moneyline Credit Limited with the Company (Refer Note 26) 19,907,015 –
Addition due to transfer during the year from surplus in the Statement of profit and loss 208,386,648 166,000,000
Closing balance 700,000,000 471,706,337
Debenture Redemption Reserve
Opening balance – –
Addition on account of NCD public issue 630,000,000 –
Closing balance 630,000,000 –
Surplus / (Deficit) in statement of profit and loss
Opening balance 1,646,595,640 1,207,289,524
Addition: Profit / (Loss) for the year 1,018,511,436 826,577,291
Addition due to merger of Moneyline Credit Limited with the Company (Refer Note 26) 56,152,603 –
Less: Appropriations
Interim dividend – (118,577,015)
Dividend distribution tax – (19,694,160)
Special reserve (208,386,648) (166,000,000)
General reserve – (83,000,000)
Debenture redemption reserve (630,000,000) –
Closing balance 1,882,873,031 1,646,595,640
Total 11,953,360,867 10,858,789,813
Note: 5.
LONG TERM BORROWINGS
(Amount in `)
Non-current portion
Current maturity
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Secured
Loan from banks (secured against receivables) –
Refer Note 5.1 below 21,129,166,667 7,625,000,000 5,078,741,851 875,000,000
Non Convertible Debentures (secured against immovable
property, stock and book debts) – Refer Note 5.2 below 8,768,886,000 2,365,300,000 1,329,000,000 1,033,000,000
Sub total 29,898,052,667 9,990,300,000 6,407,741,851 1,908,000,000
Unsecured
Non Convertible Debentures – Refer Note 5.3 below 1,539,149,056 - - -
Amount disclosed under the head
“Other current liabilities”(Refer Note 8) - - (6,407,741,851) (1,908,000,000)
Sub total 1,539,149,056 - (6,407,741,851) (1,908,000,000)
Total 31,437,201,723 9,990,300,000 - -
During the year, the Company has raised Secured Term Loans aggregating ` 18,250,000,000/- (Previous Year ` 7,750,000,000/-) from
various banks.
The Company has also raised ` 8,384,900,000/- (P.Y. ` 2,783,200,000/-) by issue of Secured Non Convertible Debentures.
Annual Report 2011-12 |
31

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 5.1. TERM LOANS FROM BANKS - SECURED:
(Amount in `)
Non current
March 31, 2012 March 31, 2011
Maturities 1-3 years 3-5 years Total 1-3 years 3-5 years Total
Rate of interest *
10.00% to 11.00% – – – 3,000,000,000 – 3,000,000,000
11.01% to 12.00% – – – 2,875,000,000 1,750,000,000 4,625,000,000
12.01% to 13.00% 16,879,166,667 4,250,000,000 21,129,166,667 – – –
Total 16,879,166,667 4,250,000,000 21,129,166,667 5,875,000,000 1,750,000,000 7,625,000,000
*The rate of interest for the above term loans are linked to the base rates of the banks and are subject to change from time to time. The
above categorisation of loans has been based on the interest rates prevalent as on the respective reporting dates.
The above loans are secured by way of first pari passu charge over the current assets in the form of receivables, book debts, bills,
outstanding monies receivables including future movable assets, other than those specifically charged. The above loans are also guaranteed
by India Infoline Limited, holding company.
Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED
(Amount in `)
Non-current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
11.50 % Non-Convertible Debentures of Face value
Rs.10,000 Each Redeemable on 2-Mar-2017 300,000,000 – – –
11.70 % Non-Convertible Debentures of Face value
Rs.1,000 Each Redeemable on 18-Aug-2016 202,408,000 – – –
11.90 % Non-Convertible Debentures of Face value
Rs.1,000 Each Redeemable on 18-Aug-2016 2,896,847,000 – – –
11.50 % Non-Convertible Debentures of Face value
Rs.10,000 Each Redeemable on 30-Jan-15 225,000,000 – – –
11.70 % Non-Convertible Debentures of Face value
Rs.1,000 Each Redeemable on 18-Dec-14 330,974,000 – – –
Equity Linked Non-Convertible Debentures Series I-018 of
Face value Rs.100,000 Each Redeemable on 18-Oct-14 77,500,000 – – –
Equity Linked Non-Convertible Debentures Series I-019 of
Face value Rs.100,000 Each Redeemable on 18-Oct-14 41,000,000 – – –
Equity Linked Non-Convertible Debentures Series I-014 of
Face value Rs.100,000 Each Redeemable on 13-Oct-14 32,000,000 – – –
Equity Linked Non-Convertible Debentures Series I-015 of
Face value Rs.100,000 Each Redeemable on 13-Oct-14 15,400,000 – – –
Equity Linked Non-Convertible Debentures Series I-016 of
Face value Rs.100,000 Each Redeemable on 13-Oct-14 38,500,000 – – –
11.70% Non-Convertible Debentures of Face value
Rs.1,000 Each Redeemable on 18-Aug-14 3,417,457,000 – – –
Equity Linked Non-Convertible Debentures Series I-017 of
Face value Rs.100,000 Each Redeemable on 13-May-14 75,500,000 – – –
Equity Linked Non-Convertible Debentures Series I-012 of
Face value Rs.100,000 Each Redeemable on 29-Jul-13 56,500,000 56,500,000 – –
Equity Linked Non-Convertible Debentures Series I-004 of
Face value Rs.100,000 Each Redeemable on 10-Sep-12 – 30,000,000 30,000,000 –
Equity Linked Non-Convertible Debentures Series I-003 of
Face value Rs.100,000 Each Redeemable on 9-May-13 30,000,000 30,000,000 – –
Equity Linked Non-Convertible Debentures Series I-001 of
Face value Rs.100,000 Each Redeemable on 5-May-13 92,600,000 92,600,000 – –
Equity Linked Non-Convertible Debentures Series I-002 of
Face value Rs.100,000 Each Redeemable on 5-May-13 52,200,000 52,200,000 – –
Equity Linked Non-Convertible Debentures Series I-009 of
Face value Rs.100,000 Each Redeemable on 30-Apr-13 50,000,000 50,000,000 – –
32 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED (Contd...)
(Amount in `)
Non-current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Equity Linked Non-Convertible Debentures Series I-006 of
Face value Rs.100,000 Each Redeemable on 29-Apr-13 11,000,000 11,000,000 – –
8.00% Non-Convertible Debentures of Face value
Rs. 1,000,000 Each Redeemable on 20-Apr-13 734,000,000 734,000,000 – –
Equity Linked Non-Convertible Debentures Series I-010 of
Face value Rs.100,000 Each Redeemable on 19-Apr-13 10,000,000 10,000,000 – –
12.20% Non-Convertible Debentures of Face value
Rs.1,000,000 Each Redeemable on 16-Apr-13 80,000,000 – – –
Equity Linked Non-Convertible Debentures Series I-007 of
Face value Rs.100,000 Each Redeemable on 30-Mar-13 – 20,000,000 20,000,000 –
Equity Linked Non-Convertible Debentures Series I-008 of
Face value Rs.100,000 Each Redeemable on 30-Mar-13 – 4,000,000 4,000,000 –
Equity Linked Non-Convertible Debentures Series I-005 of
Face value Rs.100,000 Each Redeemable on 29-Mar-13 – 25,300,000 25,300,000 –
Equity Linked Non-Convertible Debentures Series I-013 of
Face value Rs.100,000 Each Redeemable on 4-Oct-12 – 86,200,000 86,200,000 –
Equity Linked Non-Convertible Debentures Series I-011 of
Face value Rs.100,000 Each Redeemable on 28-Jul-12 – 30,500,000 30,500,000 –
8.25% Non-Convertible Debentures of Face value
Rs.1,000,000 Each Redeemable on 10-May-12 – 400,000,000 400,000,000 –
8.00% Non-Convertible Debentures of Face value
Rs.1,000,000 Each Redeemable on 21-Apr-12 – 733,000,000 733,000,000 –
8.30% Non-Convertible Debentures of Face value
Rs.1,000,000 Each Redeemable on 15-Sep-11 – – – 300,000,000
8.00% Non-Convertible Debentures of Face value
Rs.1,000,000 Each Redeemable on 21-Apr-11 – – – 733,000,000
Total 8,768,886,000 2,365,300,000 1,329,000,000 1,033,000,000
The above debentures are secured by way of charge over immoveable property and/or current assets, book debts, receivables (both present
and future) and other assets of the Company. Debentures outstanding as on March 31, 2012, amounting to Rs. 734,000,000 (Previous
year Rs. 1,467,000,000) are secured by way of exclusive charge on certain receivables of the Company. Secured non convertible debentures
aggregating to Rs. 2,365,300,000/- (Previous year Rs.3,398,300,000/-) are also guaranteed by India Infoline Ltd., the holding Company.
During the year under review, Company successfully completed its maiden public issue of Secured Redeemable Non-Convertible Debentures
(“NCDs”) aggregating to Rs. 7,500,000,000. The Company has utilized the entire proceeds of NCD public issue for the slated purposes
mentioned in the Final Prospectus dated July 29, 2011. During the year under review, Company extinguished 652,314 Secured Redeemable
Non-Convertible Debentures aggregating to Rs. 652,314,000.
Pursuant to Section 117C of the Companies Act, 1956 read with circular issued by the Ministry of Company Affairs (“MCA”), the Company
being an NBFC was required to create Debenture Redemption Reserve of a value equivalent to 50% of the debentures offered through a
public issue. Accordingly, Rs. 630,000,000/- has been transferred to Debenture Redemption Reserve Account for the financial year ended
March 31, 2012.
Annual Report 2011-12 |
33

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 5.3. NON CONVERTIBLE DEBENTURES – UNSECURED
(Amount in `)
Non Current
Particulars March 31, 2012 March 31, 2011
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 30-Mar-2019 (SBMIB VII – 7 years) 350,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 30-Mar-2019 (SBMIB VI - 7 years) 50,000 –
12.00% Non-Convertible Debentures of Face value Rs.1,000,000 each redeemable
on 28-Mar-2019 * 250,000,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 2-Mar-2019 (SBMIB V – 7 years) 88,000 –
12.00% Non-Convertible Debentures of Face value Rs.1,000,000 each redeemable
on 27-Feb-2019 * 750,000,000 –
12.75% Non-Convertible Debentures of Face value Rs.1000 each redeemable
on 23-Feb-2019 (SBMIB IV – 7 years) 474,000 –
11.50% Non-Convertible Debentures of Face value Rs.1,000,000 each redeemable
on 20-Feb-2019 * 500,000,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 7-Feb-2019 (SBMIB III – 7 years) 250,000 –
12.75% Non-Convertible Debentures of Face value Rs.1000 each redeemable
on 7-Feb-2019 (SBMIB II – 7 years) 30,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 18-Jan-2019 (SBMIB I – 7 years) 1,160,000 –
12.25% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 30-Mar-2018 (SBDB V – 6 years) 1,788,000 –
12.25% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 30-Mar-2018 (SBDB IV – 6 years) 1,440,000 –
12.25% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 1-Mar-2018 (SBDB III – 6 years) 2,406,000 –
12.25% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 7-Feb-2018 (SBDB II – 6 years) 2,540,000 –
12.25% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 23-Jan-2018 (SBDB I – 6 years) 3,755,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 30-Mar-2017 (SBMIB VII – 5 years) 2,330,056 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 30-Mar-2017 (SBMIB VI – 5 years) 3,234,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 2-Mar-2017 (SBMIB V – 5 years) 3,129,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 23-Feb-2017 (SBMIB IV – 5 years) 3,789,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 7-Feb-2017 (SBMIB III – 5 years) 4,769,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 7-Feb-2017 (SBMIB II – 5 years) 3,297,000 –
12.75% Non-Convertible Debentures of Face value Rs.1,000 each redeemable
on 18-Jan-2017 (SBMIB I – 5 years) 4,270,000 –
Total 1,539,149,056 –
* For these Non Convertible Debentures, the Company has a call option after 5 years from the date of allotment subject to prior approval
from the Reserve Bank of India for redemption. The Non Convertible Debentures does not have any put option.
34 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 6.
PROVISIONS
(Amount in `)
Short-term
Long-term
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Provision for employee benefits
Provision for leave encashment 14,562,900 374,970 – –
Provision for gratuity (Refer Note 20) 9,943,919 – – –
Provision – others
Contingent provision against standard assets – – 161,554,348 71,501,232
Provision for expenses 275,006,460 8,288,299 – –
Total 299,513,279 8,663,269 161,554,348 71,501,232
Note: 7. SHORT TERM BORROWINGS
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Secured
Cash credit from banks 1,489,362,175 109,110
Loan from financial Institution 1,000,000,000 –
Sub-Total 2,489,362,175 109,110
Unsecured
Loan from banks 400,000,000 –
Non Convertible Debentures – 272,000,000
Commercial papers 17,450,000,000 8,660,000,000
Sub-Total 17,850,000,000 8,932,000,000
Total 20,339,362,175 8,932,109,110
The above secured borrowings are secured by way of first pari passu charge over the current assets in the form of receivables, book debts,
bills, outstanding monies receivables including future movable assets, other than those specifically charged. The above secured borrowings
are also guaranteed by India Infoline Limited, holding company.
Note: 8. OTHER CURRENT LIABILITIES
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Current maturities of long term borrowings 6,407,741,851 1,908,000,000
Sub-total 6,407,741,851 1,908,000,000
Other Payable
Interest accrued but not due on borrowings 862,599,700 178,865,803
Debenture application money received pending allotment 2,060,000 –
Payables on account of assignments 175,732,572 –
Temporary overdrawn bank balance as per books 1,483,327,497 1,686,890,914
Advances from customers 274,834,566 8,637,325
Payables to vendors for health care Loans 182,560,942 –
Contractually reimbursable expenses 125,163,838 37,374,734
Income received in advance 34,838,647 18,623,500
Statutory remittances (Contributions to PF and ESIC, Withholding Taxes,
Excise Duty, VAT, Service Tax, etc.) 17,713,885 16,843,196
Others 11,356,509 4,667,737
Sub-total 3,170,188,154 1,951,903,209
Total 9,577,930,005 3,859,903,209
Annual Report 2011-12 |
35

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 9.
TANGIBLE ASSETS
Electrical Office Air Furniture &
Particulars Premises Computer Equipment Equipment Conditions Fixture Total
Cost or valuation
as at April 1, 2011 145,000 9,642,669 21,463,482 19,431,926 3,031,904 69,281,119 122,996,100
Additions – 81,487,281 151,032,004 129,939,117 33,138,414 327,563,709 723,160,525
Asset acquired on
merger (Refer note 26) – 8,135,597 2,619,640 5,484,024 – 13,989,776 30,229,037
Deductions/Adjustments
during the year – 46,802 – – 160,448 32,642 239,892
As at March 31, 2012 145,000 99,218,745 175,115,126 154,855,067 36,009,870 410,801,962 876,145,770
Depreciation
As at April 1, 2011 23,561 1,020,804 1,353,074 909,172 316,927 5,954,376 9,577,914
Depreciation on merger – 6,757,260 1,764,817 2,152,218 – 7,488,450 18,162,745
Depreciation for the year 7,250 21,049,624 26,220,325 18,989,925 5,968,323 76,844,173 149,079,620
Deductions/Adjustments
during the year – 46,799 – – 203,754 31,438 281,991
Up to March 31, 2012 30,811 28,780,889 29,338,216 22,051,315 6,081,496 90,255,561 176,538,288
Net Block as at
March 31, 2012 114,190 70,437,856 145,776,910 132,803,753 29,928,372 320,546,401 699,607,482
Net Block as at
March 31, 2011 121,440 8,621,865 20,110,408 18,522,754 2,714,977 63,326,743 113,418,186
Note: 10. INTANGIBLE ASSETS
Note: 11. NON-CURRENT INVESTMENTS
(Amount in `)
(Amount in `)
Software
Cost or valuation as at April 1, 2011 –
Additions –
Asset acquired on merger of Moneyline Credit Ltd. (Refer note 26) 4,939,762
Deductions / Adjustments during the year –
As at March 31, 2012 4,939,762
Amortisation
As at April 1, 2011 –
Amortisation on merger of Moneyline Credit Ltd. (Refer note 26) 4,197,073
Amortisation For the year 517,813
Deductions / Adjustments during the year –
Up to March 31, 2012 4,714,886
Net Block as at March 31, 2012 224,876
Net Block as at March 31, 2011 –
(Amount in `)
Face As at March 31, 2012 As at March 31, 2011
Particulars Value Number Amount Number Amount
Unquoted, Trade, Long Term (valued at cost)
Investment in subsidiaries
Equity Shares
India Infoline Housing Finance Limited 10 10,900,000 1,005,000,000 10,900,000 1,005,000,000
India Infoline Distribution Company Limited 10 1,400,100 85,126,000 1,400,100 85,126,000
Moneyline Credit Limited (Refer Note 26) 100 – – 1,450,000 1,536,929,000
Preference Shares
India Infoline Housing Finance Limited 10 20,000,000 300,000,000 20,000,000 300,000,000
Sub-total 1,390,126,000 2,927,055,000
Unquoted, Non-Trade, Long Term
(Valued at cost)
Units of India Infoline venture Capital Fund
(IIFL Opportunity fund) 100,000 3,850 385,000,000 3 850 385,000,000
Arch Pharmalabs Limited 10 263,028 105,211,200 263,028 105,211,200
Sub-total 490,211,200 490,211,200
36 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 11. NON-CURRENT INVESTMENTS (Contd...)
(Amount in `)
Face As at March 31, 2012 As at March 31, 2011
Particulars Value Number Amount Number Amount
Debentures and Bonds - for Financing
Real Estate Projects
Add Albatross Properties Pvt Ltd 100,000 2,500 249,800,000 – –
Ankur Energy Resources Private Limited 100,000 780 78,000,000 – –
Galleria Mall Developers Pvt Ltd 100,000 800 80,000,000 – –
Kumar Housing Corporation Limited 100,000 4,000 400,000,000 – –
Lily Realty Pvt Ltd (17%) 100,000 2,770 277,000,000 – –
Lily Realty Pvt Ltd (18%) 100,000 2,540 254,000,000 – –
Neptune Developers Ltd 100,000 900 90,000,000 – –
Prince Foundation Ltd 100,000 985 98,516,858 – –
Sahyog Homes Limited 100,000 3,650 365,000,000 – –
Satra Properties (India) Limited 100,000 3,158 315,760,000 – –
Sheth Developers Pvt Ltd 100,000 1,200 120,000,000 – –
Vijay Associates (Wadhwa)
Construction Pvt Ltd 53,360 3,968 211,736,246 – –
Sub-total 2,539,813,104 –
Total 4,420,150,304 3,417,266,200
Note: 12.
The Company recognized deferred tax assets since the management is reasonably/virtually certain of its profitable operations in future. As
per Accounting Standard 22 'Accounting for Taxes on Income’, the timing differences mainly relates to following items and result in a net
deferred tax asset:
Deferred Tax Assets
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
On provision for doubtful debts 49,108,497 6,685,872
On provision for standard assets 52,416,308 23,750,922
On depreciation 13,885,298 (108,968)
On gratuity – (281,754)
Total 115,410,103 30,046,072
Note: 13. LOANS & ADVANCES
(Amount in `)
Non Current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Loans & Advances
- Secured 20,118,660,255 9,878,149,799 39,497,673,381 18,571,823,817
- Unsecured 18,330,849 125,584,064 78,013,680 11,604,258
Less : Provision for doubtful loans (55,153,643) (15,833,697) (49,497,763) (4,293,863)
Sub-total 20,081,837,461 9,987,900,166 39,526,189,298 18,579,134,212
Others loans & advances
Dues from customers
- Secured – – 1,959,709,929 209,529,097
- Unsecured – – 36,317,869 42,439,354
Inter corporate deposit – unsecured 1,944,700,003 1,702,300,003 500,000,000 –
Deposits – unsecured 231,982,538 60,471,184 – –
Capital advances – unsecured 22,721,938 37,250,464 – –
Advance income tax (net of provisions Rs. 1,363,625,598
(previous year Rs. 839,006,058) - unsecured 113,664,096 49,843,534 – –
Sub-total 2,313,068,575 1,849,865,185 2,496,027,798 251,968,451
Total 22,394,906,036 11,837,765,351 42,022,217,096 18,831,102,663
Annual Report 2011-12 |
37

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 14. OTHER ASSETS
(Amount in `)
Non Current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Fixed deposits 293,293,744 - - -
Unamortised debenture issue expenses 111,863,067 - 54,128,088 -
Prepaid expenses - - 588,767,157 315,357,448
Service tax input - - 9,670,188 9,940,585
Excess funding in gratuity fund - - - 848,210
Staff loans - - 649,982 -
Others - - 1,177,441 (128,897)
Total 405,156,811 - 654,392,857 326,017,346
Note: 15. CURRENT INVESTMENTS
(Amount in `)
Face As at March 31, 2012 As at March 31, 2011
Particulars Value Number Amount Number Amount
Unquoted, Non - Trade, Current
(valued at cost or market whichever is less)
Mutual Funds
DWS - Short Maturity Fund-
Institutional Growth Plan* 10 - - 87,860,573 1,000,497,891
DWS - Fixed Term Fund * 10 36,000,000 360,000,000 - -
360,000,000 1,000,497,891
Non convertible Debentures
- for Financing Real Estate Projects
Ankur Energy Resources Private Limited 100,000 3,750 375,000,000 - -
Galleria Mall Developers Pvt Ltd 100,000 1,607 160,700,000 - -
Grand View Estates Private Limited 10,000,000 70 694,470,000 - -
Kumar Housing Corporation Limited 100,000 1,000 100,000,000 - -
Lily Realty Pvt Ltd (17%) 100,000 2,772 275,210,247 - -
Neptune Developers Ltd 100,000 600 60,000,000 - -
Prince Foundation Ltd 100,000 750 74,983,143 - -
Sahyog Homes Limited 100,000 3,650 365,000,000 - -
Satra Properties (India) Limited 100,000 4,705 470,540,000 - -
Vijay Associates (Wadhwa) Construction Pvt Ltd 53,360 1,987 106,022,554 - -
Subtotal 2,681,925,944 - -
Total 3,041,925,944 1,000,497,891
Aggregate cost of mutual fund units 360,000,000 1,000,497,891
NAV of mutual fund units 387,216,000 1,030,358,506
Aggregate cost of quoted investments - -
Aggregate market value of quoted investments - -
Aggregate cost of unquoted investments 2,681,925,944 -
*Investment in units of DWS Mutual Fund made by the Company is subject to pledge/lien of Deutsche Bank for Overdraft facility provided
to IIFL Realty Ltd, the fellow subsidiary.
38 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 16. INVENTORIES (Valued at lower of cost and net realisable value)
(Amount in `)
Face As at March 31, 2012 As at March 31, 2011
Particulars Value Number Amount Number Amount
Equity Shares
HDFC Ltd 2 - - 130,000.00 87,352,207
Reliance Industries Ltd 10 - - 52,000.00 53,113,780
United Phosphorous Ltd 2 - - 184,000.00 27,498,412
Sub-total - - 167,964,399
Options *
Strike Price
Nifty Call 28-06-2012 4100 6,900 9,936,000 6 900 9,936,000
Nifty Call 28-06-2012 5100 (5,100) (4,287,621) (5 100) (4,287,621)
Nifty Call 28-06-2012 5200 1,200 383,400 1,200 984,000
Nifty Call 27-12-2012 5000 14,900 10,195,325 14,900 14,420,071
Nifty Call 27-12-2012 5100 6,500 2,925,000 6,500 6,064,500
Nifty Call 27-12-2012 5200 10,650 4,473,000 10,650 9,841,878
Nifty Call 27-12-2012 5300 5,750 2,765,750 5,750 5,318,750
Nifty Call 27-06-2013 5200 12,950 11,085,200 12,950 13,591,285
Nifty Call 26-06-2014 4500 13,550 15,514,750 - -
Nifty Call 26-06-2014 4600 9,000 10,620,000 - -
Nifty Call 26-06-2014 6500 (10,000) (2,950,000) - -
Sub-total 60,660,804 55,868,863
Non convertible Debentures *
Equity linked Non convertible Debentures of
Macquarie Finance (India) Private Limited 100 000 473 46,725,775 - -
Sub-total 107,386,579 55,868,863
Total 107,386,579 223,833,262
Aggregate market value-stock on hand -Quoted 109,708,660 245,294,050
*Held to cover possible payout in respect of certain Equity Linked Non-Convertible Debentures issued by the Company.
Note: 17. CASH AND BANK BALANCES
(Amount in `)
Non Current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Cash on hand - - 266,254,810 55
Balances with banks in current accounts - - 1,353,000,255 162,859,907
Fixed deposits 293,293,744 - 647,682,230 150,000,000
Amount disclosed under other assets – non- current (293,293,744) - - -
Total - - 2,266,937,295 312,859,962
Note: 18. REVENUE FROM OPERATIONS
(Amount in `)
Particulars March 31, 2012 March 31, 2011
Income from financing activities 8,475,498,157 4,013,422,364
Profit from sale of investments and trading activities 169,974,664 193,319,092
Dividend income 35,797,027 48,348,882
Total 8,681,269,848 4,255,090,338
Note: 19. OTHER INCOME
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Processing fee 336,407,986 258,801,881
Interest on fixed deposits 44,162,957 497,983
Administration fee & other charges from customer 38,646,619 4,102,972
Miscellaneous income 3,210,016 566,037
Total 422,427,578 263,968,873
Annual Report 2011-12 |
39

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 20. EMPLOYEE BENEFIT EXPENSE
(Amount in `)
Particulars March 31, 2012 March 31, 2011
Salaries and bonus 985,939,886 571,343,497
Contribution to provident and other funds 22,267,139 10,544,130
Gratuity expenses 11,092,286 2,439,484
Staff welfare expenses 25,090,571 15,909,204
Total 1,044,389,882 600,236,315
The Company is recognising and accruing the employee benefit as per accounting standard (AS) – 15 on “Employee Benefits”. Details are given
below:
Particulars 2011-12 2010-11
Assumptions
Discount rate 8.50% 8.00%
Salary escalation 5.00% 5.00%
Rate of return on plan assets 8.60% 8.00%
Change in benefit obligation
Liability at the beginning of the year 2,439,484 -
Interest cost 195,159 -
Current service cost 2,582,606 -
Liability transferred in 593,324 3,010,576
Benefit paid (98,996) (60,577)
Actuarial (Gain)/ Loss on obligations 8,692,059 (510,515)
Liability at the end of the year 14,403,636 2,439,484
Amount recognised in the Balance Sheet
Liability at the end of the year 14,403,636 2,439,484
Fair value of plan assets at the end of the year (4,459,717) (3,227,117)
Funded status (Surplus) 9,943,919 (787,633)
Net Liability/(Asset) recognised in the Balance Sheet 9,943,919 (787,633)
Expenses recognised in the Income statement
Liability transferred in - 3,010,576
Interest cost 195,159 -
Current service cost 2,582,606 -
Expected return on plan assets (258,240) -
Benefit paid - (60,577)
Actuarial (Gain) or Loss 8,572,761 (510,515)
Expense recognised in P&L 11,092,286 2,439,484
Balance Sheet reconciliation
Opening net liability (787,633) -
Net transfer in (354,233) -
Expenses as above 11,092,286 2,439,484
Employers contribution (6,501) (3,287,694)
Benefit paid - (60,577)
Net Liability/(Asset) recognised in the Balance Sheet 9,943,919 (787,633)
Note: 21. FINANCE COSTS
(Amount in `)
Particulars March 31, 2012 March 31, 2011
Interest expenses on borrowings 4,509,864,170 2,044,451,312
Other borrowing cost 106,670,234 25,969,504
Total 4,616,534,404 2,070,420,816
The Company is recognising and accruing the employee benefit as per accounting standard (AS) – 15 on “Employee Benefits”. Details are
given below:
40 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 22. DEPRECIATION AND AMORTISATION EXPENSES
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Depreciation of tangible assets (Note : 9) 149,079,621 8,510,416
Amortisation of intangible assets (Note : 10) 517,813 -
Total 149,597,434 8,510,416
Note: 23. OTHER EXPENSES
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Advertisement 82,342,650 64,116,587
Bank charges 67,824,823 1,256,175
Communication 70,906,256 28,825,527
Electricity 50,982,978 18,655,432
Direct operating expenses 37,692,281 32,815,126
Legal & professional Fees 97,401,588 61,033,300
Miscellaneous expenses 9,296,184 1,287,075
Office expenses 287,818,414 28,679,853
Postage & courier 14,085,558 12,644,484
Printing & stationary 54,879,874 16,625,743
Marketing expenses 213,914,560 69,133,418
Rent 430,436,543 139,568,352
Repairs & maintenance
- Computer - -
- Others 43,064,869 11,317,558
Remuneration to auditors :
- Audit fees 625,000 225,000
- Certification expenses 76,500 31,000
- Out of pocket expenses 12,520 8,950
Software charges 74,492,999 16,334,456
Travelling & conveyance 63,224,249 32,875,848
Total 1,599,077,846 535,433,884
Note: 24. PROVISIONS AND WRITE OFF
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Bad debts written off 39,003,352 39,072,209
Provision for contingencies 46,707,807 -
Provision for diminution in value of investments 2,029,581 -
Provision for doubtful loans 79,468,349 (537,830)
Provision for standard loans 86,899,489 71,501,232
Total 254,108,578 110,035,611
Note: 25. BASIC AND DILUTED EARNINGS PER SHARE [“EPS”] COMPUTED IN ACCORDANCE WITH ACCOUNTING STANDARD
(AS) 20 “EARNINGS PER SHARE”
(Amount in `)
Particulars March 31, 2012 March 31, 2011
BASIC
Profit after tax as per statement of Profit and Loss A 1,018,511,436 826,577,291
Number of shares subscribed B 237,154,030 237,154,030
EPS (Rupees) A/B 4.29 3.49
DILUTED
Profit after tax as per statement of Profit and Loss C 1,018,511,436 826,577,291
Number of shares subscribed 237,154,030 237,154,030
Add: Potential equity shares on account conversion of Employees Stock Options 4,920,000 5,825,000
Weighted average number of shares outstanding D 242,074,030 242,979,030
EPS (Rupees) C/D 4.21 3.40
Annual Report 2011-12 |
41

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 26.
During the year under review, Moneyline Credit Limited, a wholly owned subsidiary, was merged with the Company pursuant to the order
issued by Hon'ble High Court. The merger has been effected with the filing of the order of the Hon'ble High Court with Registrar of
Companies on March 26, 2012. The appointed date of the merger was April 1, 2011. Accordingly, the financial results of Company for
the period ended March 31, 2012 are prepared after giving effect to the said merger.
The erstwhile Moneyline Credit Limited was registered as NBFC with Reserve bank of India and was engaged in the business of lending
mortgage and personal loans.
The amalgamation has been accounted for under the “Pooling of Interest” method as prescribed by the Accounting standard (AS) 14 on
“Accounting for Amalgamations” notified under the Companies (Accounting Standard) Rules. The scheme has, accordingly, been given
effect to in these financial statements as under:
All the Assets, Liabilities and Special Reserve have been transferred to the Company at value appearing in the books of accounts of
Moneyline Credit Limited as on March 31, 2011. Excess of liabilities over assets amounting to Rs.1,389,000/- is considered as goodwill and
written off from the balance of Statement of Profit & Loss and net amount of Rs.56,152,603/- (Rs.57,541,603-Rs.1,389,000) added in the
Statement of Profit & Loss of the Company.
Upon effectiveness of the Scheme, the authorised share capital of the Company increased to 3,200,000,000 consisting of following:
(Amount in `)
Authorised Share Capital March 31, 2012
300,000,000 equity shares (Previous year 300,000,000 equity shares) of Rs. 10 each 3,000,000,000
1,999,600 equity shares of Rs. 100 each 199,960,000
150 Preference Shares of Rs. 100 each 15,000
250 11% Non- cumulative redeemable preference shares of Rs 100 each 25,000
Total 3,200,000,000
Note: 27. ASSIGNMENT OF LOAN PORTFOLIO :
During the year 2011-12, the Company has assigned loan portfolio to the extent of 4,644,419,392/- to various Banks.
Note: 28.
As of March 31, 2012, we had certain contingent liabilities not provided for, including the following:
(Amount in `)
Sr. No. Name of the Statute March 31, 2012 March 31, 2011
(i) In respect of Income tax demands 20,742,911 4,469,700
(ii) Guarantees and counter guarantees 99,880,250 -
Total 120,623,161 4,469,700
Note: 29.
At the Balance Sheet date, there were outstanding commitments of capital expenditure of Rs. 120,633,998/- (net of advances) (Previous
Year 92,639,763/-), out of the total contractual obligation entered upto the end of the year.
Note: 30.
The Company has taken office premises on operating lease at various locations. Lease rents in respect of the same have been charged to
Statement of Profit and Loss. The agreements are executed for a period ranging 1 to 5 years with a renewable clause. Some agreements
have a clause for a minimum lock-in period. The agreements also have a clause for termination by either party giving a prior notice period
between 30 to 90 days. The minimum Lease rentals outstanding as at March 31, 2012, are as under:
(Amount in `)
Minimum Lease Rentals March 31, 2012 March 31, 2011
Up to one year 48,766,836 2,734,940
One to five years 1,771,900 666,000
Total 50,538,736 3,400,940
Note: 31.
The Company operates from and uses the premises, infrastructure and other facilities and services as provided to it by its holding Company/
subsidiaries / group companies, which are termed as ‘Shared Services’. Hitherto, such shared services consisting of administrative and other
revenue expenses paid for by the Company were identified and recovered from them based on reasonable management estimates, which
are constantly refined in the light of additional knowledge gained relevant to such estimation. These expenses are recovered on an actual
basis and the estimates are used only where actual were difficult to determine.
Note: 32. SEGMENT REPORTING:
In the opinion of the management, there is only one reportable business segment (Financing & Investing) as envisaged by AS17 'Segment
Reporting', issued by the Institute of Chartered Accountants of India. Accordingly, no separate disclosure for segment reporting is required
to be made in the financial statements of the Company. Secondary segmentation based on geography has not been presented as the
Company operates primarily in India and the Company perceives that there is no significant difference in its risk and returns in operating
from different geographic areas within India.
42 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 33.
There are no dues to micro & small enterprises (MSEs) outstanding for more than 45 days.
Note: 34. RETURN ON ASSETS:
The return on assets for the financial year 2011-12 was 1.71% (Previous year 2.53%).
Note: 35.
During the year under review, the Company witnessed fraud amounting to Rs. 12,168,031 in its lending operations.
Note: 36.
As on March 31, 2012, the gold loan portfolio comprises 36.34 % (Previous Year 0.02%) of the total loan portfolio of the Company.
Note: 37. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES.
Nature of relationship
Name of party
a) Related parties where control exists
Holding company
Direct subsidiaries
Fellow subsidiaries
Group companies
(b) Key management personnel
Other related parties:
India Infoline Limited
Moneyline Credit Limited*
India Infoline Housing Finance Limited
India Infoline Distribution Company Limited
India Infoline Commodities Limited
India Infoline Media & Research Services Limited
IIFL Capital Limited
India Infoline Trustee Company Limited
India Infoline Asset Management Company Limited
India Infoline Marketing Services Limited #
India Infoline Insurance Services Limited ##
India Infoline Insurance Brokers Limited ##
IIFL Wealth Management Limited
IIFL Realty Limited
IIFL Alternate Asset Advisors Limited
IIFL (Asia) Pte. Limited
IIFL Capital Ceylon Limited
IIFL Securities Ceylon (Pvt) Limited
IIFL Private Wealth Hong Kong Limited
IIFL Private Wealth (Mauritius) Limited
IIFL Private Wealth (Dubai) Limited
India Infoline Commodities DMCC
IIFL Inc. USA
IIFL Wealth (UK) Limited
Finest Wealth Managers Private Limited
IIFL Trustee Services Limited
IIFL (Thane) Private Limited
IIFL Energy Limited
IIFL Capital Pte. Limited
IIFL Securities Pte Limited
Nirmal Jain
R Venkataraman
Madhu Jain (wife of Mr. Nirmal Jain)
Aditi Venkataraman ( wife of Mr. R Venkataraman)
India Infoline Venture Capital Fund
*Merged with the Company pursuant to the order issued by Hon'ble High Court. Refer note 26 for details.
# India Infoline Marketing Services Limited (“IIMSL”), a wholly owned subsidiary of India Infoline Limited, merged with India Infoline
Limited with effect from April 1, 2011. The merger was sanctioned by the Hon'ble High Court of Judicature at Bombay; vide its order dated
27th April 2012. The figures of previous year in respect of fellow subsidiaries include the amount of transactions with IIMSL and hence
not comparable with current year figures.
## These companies, being subsidiaries of IIMSL, were considered as group companies in previous year and hence not comparable with
current year figures.
Annual Report 2011-12 |
43

Standalone Financial Statements of India Infoline Finance Limited
NOTES
c) Significant Transactions with Related Parties (Amount in `)
Nature of transaction Holding Fellow Group Direct Other Total
Company Subsidiaries Companies Subsidiaries related parties
Interest income - 166,888,434 - 4,184,456 - 171,072,890
(160,697,900) (223,185,232) - - - (383,883,132)
Interest expense 129,807,805 1,529,697 - 131,337,502
(599,761,055) - - - - (599,761,055)
Service charges income - - - 2,641,962 - 2,641,962
- - - - - -
Dividend paid - - - - - -
(91,000,000) (26,419,350) - - - (117,419,350)
ICD repaid/issued - 2,037,500,000 - - - 2,037,500,000
- (1,409,686,035) - - - (1,409,686,035)
ICD taken/received 1,085,100,000 430,000,000 - - - 1,515,100,000
- (2,429,827,534) - - - (2,429,827,534)
Purchase / cancellation
of assigned portfolio / - - - 1,222,146,814 - 1,222,146,814
foreclosures / EMIs - - - (4,586,040,139) - (4,586,040,139)
Sale/cancellation assigned - - - 2,895,426,262 - 2,895,426,262
portfolio/foreclosures/EMIs - - - - - -
Brokerage 494,094 - - - - 494,094
(1,987,407) - - - - (1,987,407)
Investment (net) - - - - - -
- - - (680,000,000) (190,000,000) (870,000,000)
Advances returned (net) / 49,953,541,943 1,264,858,371 - 6,663,590,229 – 57,881,990,543
reimbursement of expenses (167,540,712,620) (5,847,741) (576,024) (5,817,797,631) - (173,364,934,016)
Advances taken ( net) / 49,953,541,943 1,264,858,371 - 6,663,590,229 – 57,881,990,543
allocation of expenses (167,540,712,620) (5,847,741) (576,024) (5,817,797,631) - (173,364,934,016)
* Figures in bracket represent previous year’s figure and are not comparable with current year classification due to merger.
Closing balance
(Amount in `)
Nature of transaction Holding Fellow Group Direct Other Total
Company Subsidiaries Companies Subsidiaries related parties
Sundry payable - - - - - -
- - - - - -
Sundry receivables - 2,444,700,001 - - - 2,444,700,001
- (1,702,300,003) - - - (1,702,300,003)
* Figures in bracket represent previous year’s figure are not comparable with current year classification due to merger.
Note: 38.
Previous year’s figures are regrouped, reclassified and rearranged wherever considered necessary to confirm to current year’s presentation.
Note: 39.
Disclosure as required under Notification No. DNBS. 200/CGM(PK)-2008 dated 01 August 2008 issued by Reserve Bank of India
a. Capital Adequacy Ratio
Items March 31, 2012 March 31, 2011
CRAR (%) 17.86% 29.95%
CRAR - Tier I Capital (%) 15.46% 29.73%
CRAR - Tier II Capital (%) 2.40% 0.22%
44 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
b. Exposure to Real Estate
(` in Lacs)
Category March 31, 2012 March 31, 2011
a) Direct exposure
(i) Residential mortgages -
Lending fully secured by mortgages on residential property that is or will be
occupied by the borrower or that is rented;
- Upto Rs.15 Lacs 2,688 2,588
- More than Rs.15 Lacs 139,353 100,598
(ii) Commercial real estate -
Lending secured by mortgages on commercial real estate’s (office buildings retail space
multipurpose commercial premises multi-family residential buildings multi-tenanted
commercial premises industrial or warehouse space hotels land acquisition development
and construction etc.). Exposure would also include non-fund based (NFB) limits; 81,958 56,329
(iii) Investments in Mortgage Backed Securities (MBS) and other securitized exposures -
a. Residential 49,282 -
b. Commercial real estate. 2,935 -
b) Indirect exposure
Inter corporate loan 19,447 8,372
Fund based and non-fund based exposures on National Housing Bank (NHB) and
Housing Finance Companies (HFCs). 13,050 13,050
c. Maturity pattern of certain items of assets and liabilities
(` in Lacs)
Liabilities
Assets
Borrowing Market Advances Investments
from banks Borrowings
1 day to 30/31 days (one month) 14,889 28,000 119,069 8,925
Over one to 2 months - 21,435 28,010 -
Over 2 to 3 months 4,000 128,500 46,994 1,250
Over 3 to 6 months 7,813 1,805 79,447 1,250
Over 6 to 12 months 42,979 18,055 155,302 12,243
Over 1 to 3 years 168,792 53,691 75,821 33,202
Over 3 to 5 years 42,500 34,154 33,625 -
Over 5 years - 15,230 113,339 17,751
Total 280,973 300,870 651,607 74,621
Note: 40. ASSET CLASSIFICATION
Asset classification
Note:
a. In terms of RBI circular a general provision of Rs.161,554,348/- (Previous Year: 71,501,232/-) has been made during the year
at 0.25 % of the Standard Assets under the head ‘Provision on Standard loans’ in Note 24.
b. Provision is created after considering credit for securities available against the loans.
Debentures and bonds subscribed by the Company for financing Real Estate Projects amounting to Rs.5,221,739,047/- shown
under Non –current and current investments are considered in the standard assets mentioned above.
c. Figures in bracket represent previous year’s figure.
Outstanding
Balance
(` in Lacs)
Provision
Standard assets 645,659.13 1,615.54
(284,811.97) (715.01)
Sub-standard assets 859.12 85.91
(981.92) (153.06)
Doubtful assets 2,769.95 904.63
(19.87) (8.94)
Loss Assets 55.98 55.98
(57.86) (39.27)
Annual Report 2011-12 |
45

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Note: 41.
Particulars as per RBI Directions (as required in terms of paragraph 13 of Non-Banking Financial (Non-Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Directions 2007).
(` in Lacs)
Amount Amount
Liabilities Side Outstanding Overdue
1. Loans and advances availed by the NBFCs inclusive of
interest accrued there on but not paid :
(a) Debentures:
Secured 1077,19 NIL
Unsecured (Other than falling within the meaning of public deposits) 155,53 NIL
(b) Deferred Credits NIL NIL
(c) Term Loans 2820,64 NIL
(d) Inter – corporate loans and borrowings 106,33 NIL
(e) Commercial Paper 1745,00 NIL
(f) Other Loans (specify nature) NIL NIL
Assets Side
(` in Lacs)
Amount
Outstanding
2. Break – up of Loans and Advances including bills Receivables [Other than included in (4) below ]
(a) Secured 595,578
(b) Unsecured 48,593
3. Break- up of Leased Assets and stock on hire and other assets counting towards AFC activities
(i) Lease assets including lease rentals under sundry debtors
(a) Financial lease
NIL
(b) Operating lease
NIL
(ii) Stock on hire including hire charges under sundry debtors
(a) Assets on hire
NIL
(b) Repossessed Assets
NIL
(iii) Other Loans counting towards AFC activities
(a) Loans where assets have been repossessed
NIL
(b) Loans other than (a) above
NIL
4. Break – up of Investments:
Current Investments :
1 Quoted :
(i) Shares:
(a) Equity
NIL
(b) Preference
NIL
(ii) Debentures and Bonds 52,217
(iii) Units of mutual funds 3,600
(iv) Government Securities
NIL
(v) Others (Certificate of Deposits)
NIL
2 Unquoted:
(i) Shares: –
(a) Equity 1,052
(b) Preference
NIL
(ii) Debentures and Bonds
NIL
(iii) Units of mutual funds
NIL
(iv) Government Securities
NIL
(v) Others (please specify)
NIL
Long Term Investments :
1 Quoted : –
(i) Shares:
(a) Equity
NIL
(b) Preference
NIL
(ii) Debentures and Bonds
NIL
(iii) Units of mutual funds
NIL
(iv) Government Securities
NIL
(v) Others (please specify)
NIL
46 |India Infoline Finance Limited

Standalone Financial Statements of India Infoline Finance Limited
NOTES
Assets Side
(` in Lacs)
Amount
Outstanding
4. Break – up of Investments:
Long Term Investments :
2 Unquoted:
(i) Shares:
(a) Equity of subsidiary companies 10,901
(b) Preference of subsidiary companies 3,000
(ii) Debentures and Bonds
NIL
(iii) Units of mutual funds
NIL
(iv) Government Securities
NIL
(v) Others (please specify) India Infoline Venture Capital Fund 3,850
5. Borrower group-wise classification of all assets financed as in (2) and (3) above:
Amount net of provisions
Category Secured Unsecured Total
1. Related Parties
(a) Subsidiaries - - -
(b) Companies in the same group - 24,447 24,447
(c) Other related parties - - -
2. Other than related parties 595,578 24,146 619,724
Total 595,578 48,593 644,171
6. Investor group wise classification of all investments(current and long term) in shares and securities (both quoted and
unquoted)
(` in Lacs)
Market Value/ Book value
break up or fair (net of
Category value or NAV provisions)
1 Related Parties**
a) Subsidiaries 13,901 13,901
b) Companies in the same group – –
c) Other related parties 3,850 3,850
2 Other than related parties 57,142 56,870
Total 74,893 74,621
** As per Accounting Standard of ICAI
7. Other Information:
Particulars
(` in Lacs)
(` in Lacs)
Amount
(i) Gross Non-Performing Assets -
(a) Related parties -
(b) Other than related parties 3,685
(ii) Net Non-Performing Assets -
(a) Related parties -
(b) Other than related parties 2,639
(iii) Assets acquired in satisfaction of debt -
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
Annual Report 2011-12 |
47

Statement relating to subsidiary companies
Pursuant to approval granted U/S 212 (8) of the Companied Act, 1956
Sr India Infoline India Infoline
No Particulars Distribution Company Limited Housing Finance Limited
1 Share Capital 14,001,000 309,000,000
2 Reserves 58,451,652 1,115,128,592
3 Total assets 73,113,634 2,960,052,076
4 Total liabilities 73,113,634 2,960,052,076
5 Investments (other than investment in subsidiaries) – –
6 Total turnover 911,340 431,257,656
7 Profit/(loss) before taxation (688,105) 62,401,089
8 Provision for taxation(including deferred tax) (42,831) 26,458,183
9 Profit after taxation (645,274) 35,942,906
10 Extent of Interest in subsidiaries 100.00% 100.00%
11 Proposed Dividend – -
48 |India Infoline Finance Limited

Consolidated Financial Statement 2011-2012
To The Board of Directors
India Infoline Finance Limited
(Formerly, India Infoline Investment Services Limited)
Sub: Report on Consolidated Financial Statement as at March 31, 2012
We have audited the attached Consolidated Balance Sheet of India
Infoline Finance Limited, formerly, India Infoline Investment
Services Limited (the Company) and its subsidiaries namely, (1)
India Infoline Distribution Company Limited, (2) India Infoline
Housing Finance Limited, (collectively referred to as “the group”),
as at 31st March, 2012, the Consolidated statement of Profit and
Loss and the consolidated Cash Flow Statement for the year ended
on that date annexed thereto. These financial statements are the
responsibility of the Company’s management and have been
prepared by the management on the basis of separate financial
statements and other financial information regarding
components. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan
and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on test basis, evidence
supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
We report that the consolidated financial statements have been
prepared by the Company’s management in accordance with the
requirements of the Accounting Standard (AS) 21, “Consolidated
Financial Statement”, issued by the Institute of Chartered
Accountants of India, and on the basis of the separate audited
financial statements of the Group included in the consolidated
financial statements.
We report that on the basis of the information and explanation
given to us and on the separate audit report on individual audited
financial statements of the Group, we are of the opinion that the
consolidated financial statements, read together with significant
accounting policies and notes appearing thereon, give true and
fair view in conformity with the accounting principles generally
accepted in India:
a. In the case of Consolidated Balance Sheet, of the state of
affairs of the Group as at March 31, 2012;
b. In the case of Consolidated statement Profit and Loss , of the
profit of the Group for the year ended on that date; and
c. In the case of the Consolidated Cash Flow Statement, of the
cash flows of the Group for the year ended on that date.
Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No.109983W
By the hand of
Tirtharaj Khot
Place: Mumbai
Partner
Date: May 15, 2012 Membership No.: (F) 037457
Annual Report 2011-12 |
49

Consolidated Balance Sheet as at March 31, 2012
(Amount in `)
Note As at As at
Particulars No. March 31, 2012 March 31, 2011
I. EQUITY AND LIABILITIES
1) Shareholders’ funds
(a) Share Capital 3 2,371,540,300 2,371,540,300
(b) Reserves and Surplus 4 12,076,238,066 11,040,486,305
14,447,778,366 13,412,026,605
2) Share application money pending allotment – –
3) Non-current Liabilities
(a) Long-term borrowings 5 32,237,201,723 11,523,633,333
(b) Deferred tax liabilities (Net) – –
(c) Other long-term liabilities – –
(d) Long-term provisions 6 177,815,344 82,366,463
32,415,017,067 11,605,999,796
4) Current liabilities
(a) Short-term borrowings 7 20,339,362,175 8,932,109,110
(b) Trade payables
(c) Other current liabilities 8
- Borrowings 6,807,741,851 2,474,666,667
- Others 3,486,559,736 2,495,820,626
(d) Short-term provisions 6 302,055,931 16,340,564
30,935,719,693 13,918,936,967
Total - Equity and Liabilities 77,798,515,126 38,936,963,368
II. ASSETS
1) Non-current assets
(a) Fixed assets
(i) Tangible assets 9 699,607,482 125,484,474
(ii) Intangible assets 10 224,876 742,689
(iii) Goodwill (on consolidation) 16,421,955 34,479,263
(iv) Capital work-in-progress 12,147,314 37,492,396
(iv) Intangible assets under development –
728,401,627 198,198,822
(b) Non-current investments 11 3,030,024,304 490,211,200
(c) Deferred tax assets (Net) 12 126,125,349 44,385,805
(d) Long-term loans & advances 13
- Loans 22,492,742,411 13,520,817,969
- Others 2,333,126,355 2,068,142,689
(e) Other non-current assets 14 515,308,280 302,010,373
28,497,326,699 16,425,568,036
2) Current assets
(a) Current investments 15 3,041,925,944 1,000,522,891
(b) Inventories 16 107,386,579 223,833,262
(c) Trade receivables – –
(d) Cash and Bank balances 17 2,537,445,412 841,511,688
(e) Short-term loans & advances 13
- Loans 39,644,339,571 19,342,029,511
- Others 2,582,322,011 569,729,180
(f) Other current assets 14 659,367,283 335,569,978
48,572,786,800 22,313,196,510
Total - Assets 77,798,515,126 38,936,963,368
See accompanying notes forming part of the financial statements 1-39
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
50 |India Infoline Finance Limited

Consolidated Standalone Statement of Profit and Loss for the year ended March 31, 2012
(Amount in `)
Particulars Note No. 2011-2012 2010-2011
Revenue
Revenue from operations 18 9,084,576,504 4,711,265,041
Other Income 19 451,289,918 483,650,415
Total Revenue 9,535,866,422 5,194,915,456
Expenses
Employee benefit expenses 20 1,092,738,207 687,114,886
Finance cost 21 4,798,307,372 2,213,041,429
Depreciation & amortisation expenses 22 149,597,434 16,976,905
Other expenses 23 1,730,161,075 741,984,337
Provision & Write off 24 263,360,067 195,352,860
Total Expenses 8,034,164,155 3,854,470,417
Profit / (Loss) before tax 1,501,702,267 1,340,445,039
Tax expenses :
Current tax expense for current year 528,144,633 427,618,473
Deferred tax (81,739,544) (22,332,930)
Current tax expense relating to prior years 1,488,109 12,659,147
Total tax expense 447,893,198 417,944,690
Profit (loss) for the period 1,053,809,069 922,500,349
Earnings per equity share
(1) Basic 25 4.44 3.89
(2) Diluted 25 4.35 3.80
Face Value - 10.00 10.00
See accompanying notes forming part of the financial statements 1-39
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
Annual Report 2011-12 |
51

Consolidated Cash Flow Statement for the year ended March 31, 2012
(Amount in `)
Particulars March 31, 2012 March 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before taxation, and extraordinary item 1,501,702,267 1,340,445,039
Adjustments for:
Depreciation 149,597,434 16,976,905
Provision for Doubtful Loans (note : 24) 79,302,268 2,028,274
Provision for Standard Loans (note : 24) 95,318,881 82,496,463
Provision for diminution in value of investments (note : 24) 2,029,581 –
Provision for Contingencies (note : 24) 46,707,807 –
Gratuity & Leave Enchasment 25,919,026 398,874,997 2,055,306 103,556,948
Operating profit before working capital changes 1,900,577,264 1,444,001,987
Increase / (Decrease) in trade payables – – –
Increase / (Decrease) in long term provisions 130,000 –
Increase / (Decrease) in short term provisions (2,023,517) (5,522,619)
Increase / (Decrease) in other liabilities 1,252,558,968 1,973,561,153
Increase / (Decrease) in other long term liabilities – –
Decrease / (Increase) in trade receivables – 4,439,302
Decrease / (Increase) in trade inventories 116,446,683 (110,140,074)
Decrease / (Increase) in long term loans & advances (9,259,924,032) (7,182,285,614)
Decrease / (Increase) in short term loans & advances (22,361,610,698) (8,529,276,608)
Decrease / (Increase) in other current assets (323,797,304) (208,419,269)
Decrease / (Increase) in other non current assets (108,848,728) (30,687,068,630) 60,130,232 (13,997,513,497)
Cash generated from operations (28,786,491,366) (12,553,511,510)
Tax (Paid) / Refund (585,919,085) (425,025,431)
Net cash from operating activities (29,372,410,451) (12,978,536,941)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets,including intangible
assets,CWIP and capital advances (697,857,546) (161,459,021)
Proceeds from sale of fixed assets – –
Proceeds of non-current investments – –
Purchase of non-current investments (2,541,842,685) (295,211,200)
Purchase of current investments – –
Proceeds from sale/maturity of current investments (2,041,403,053) (65,733,491)
Purchase consideration for amalgamation – –
Net cash from investing activities (5,281,103,284) (522,403,712)
52 |India Infoline Finance Limited

Consolidated Cash Flow Statement for the year ended March 31, 2012
(Amount in `)
Particulars March 31, 2012 March 31, 2011
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid – (138,271,175)
Share issue expenses – (16,500,000)
Proceeds from long term borrowings 25,046,643,574 –
Repayment of long term borrowings – –
Proceeds from short term borrowings 11,407,253,065 –
Repayment of short term borrowings – –
Proceeds from borrowings (net) – 12,730,985,519
Net cash used in financing activities 36,453,896,639 12,576,214,345
Net increase in cash and cash equivalents 1,800,382,904 (924,726,308)
Opening cash and cash equivalents
Cash on hand and balances with banks 1,136,206,627 2,060,932,935
1,136,206,627 2,060,932,935
Closing cash and cash equivalents
Cash on hand and balances with banks 2,936,589,530 1,136,206,627
1. Cash flow statement has been prepared under
the Indirect Method as set out in the Accounting
Standard (AS-3) "Cash Flow Statement" issued by the
Institute of Chartered Accountants of India
2. Previous year's figures are re-grouped\re-arranged
wherever necessary
3. Cash & cash equivalent as at the end of the
year include:
Cash & bank balances (Refer Note 17) 2,537,445,412 841,511,688
Add: Fixed deposits considered under Other
Non-current assets (refer Note 12) 399,144,118 294,694,939
Cash & cash equivalent at the end of the year 2,936,589,530 1,136,206,627
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
Annual Report 2011-12 |
53

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 1. CORPORATE INFORMATION:
The Company is a systemically important Non-Banking Financial Company (“NBFC”) registered with the Reserve Bank of India (RBI) under
section 45-IA of the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company has received
the certificate of registration on May 12, 2005, enabling the Company to carry on business as Non-Banking Financial Company. The
Company offers broad suite of lending and other financial products such as mortgage loan, gold loan, loan against securities and health
care finance to retail and corporate clients. During the year under review, the name of the Company was changed from “India Infoline
Investment Services Limited” to “India Infoline Finance Limited” after receiving due approvals from the concerned regulatory authorities.
During the year under review, Moneyline Credit Limited, a wholly owned subsidiary, merged with the Company pursuant to order issued
by Hon'ble High Court at the judicature of Bombay.
Note: 2. SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of consolidation:
i. Basis of preparation of financial statements:
The individual Balance Sheet and Profit and Loss Account of India Infoline Finance Limited (‘the Company’) and its subsidiaries
(‘companies and / or subsidiaries’), collectively referred to as ‘Group’, have been consolidated as per principles of consolidation
enunciated in Accounting Standard (AS) 21- ‘Consolidated Financial Statements’ issued by the Council of The Institute of
Chartered Accountants of India.
The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian
GAAP) to comply with all material aspects of the applicable Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act, 1956 and the guidelines issued by the
Reserve bank of India (RBI) as applicable to NBFCs. The financial statements have been prepared on accrual basis under the
historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with
those followed in the previous year.
ii.
Principles of consolidation:
The financial statements of the group companies of India Infoline Finance Limited have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) to comply with all material aspects of the applicable Accounting
Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The
effects of all inter-group transactions and balances have been eliminated on consolidation. The accounting policies adopted in
the preparation of the financial statements are consistent with those followed in the previous year by the Company.
iii. Presentation and disclosure of financial statements:
During the year ended March 31, 2012, the Revised Schedule VI as notified under the Companies Act, 1956, has become
applicable to the Company, for preparation and presentation of its financial statements. Pursuant to applicability of Revised
Schedule VI on presentation of financial statements for the financial year ended March 31, 2012; the Company has classified all
its assets / liabilities into current / non-current portion based on the time frame of twelve months from the date of financial
statements. Accordingly, assets / liabilities expected to be realised / settled within twelve months from the date of financial
statements are classified as current and other assets / liabilities are classified as non-current. Except accounting for dividend on
investments in subsidiary companies, the adopted Revised Schedule VI does not impact recognition and measurement principle
followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the
financial statements. The Company has also reclassified the previous year figures in accordance with the requirement applicable
in the current year.
iv. List of subsidiaries consolidated:
The individual Balance Sheet as at March 31, 2012 and Statement of Profit and Loss for the year ended March 31, 2012 of
following subsidiaries are included in consolidation:
India Infoline Distribution Company Limited (IIDCL)
India Infoline Housing Finance Ltd (IIHFL)
2.2 Use of estimates:
The presentation of financial statements in conformity with the Generally Accepted Accounting Principles requires the management
54 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of the financial statements
and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates
are recognized in the period in which the results are known / materialized.
2.3 Fixed asset, depreciation and amortization :
Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss, if any thereon. Depreciation is
charged using the straight line method based on the useful life of fixed assets as estimated by the management as specified below,
or the rates specified in accordance with the provisions of schedule XIV of the Companies Act, 1956, which-ever is higher. In the case
of transfer of used fixed assets from group companies, depreciation is charged over the remaining useful life of the asset.
Depreciation is charged from the month in which new assets are put to use. No depreciation is charged for the month in which assets
are sold. Individual assets / group of similar assets costing upto ` 5,000/- has been depreciated in full, in the year of purchase.
Estimated useful life of the assets is as under:
Class of assets
Useful life in years
Buildings 20
Computers 3
Electrical and office equipment 5
Furniture and fixtures 5
Vehicles 5
Software 3
2.4 Assignment of loan portfolio:
The Company derecognises the loans assigned to other parties due to surrender of effective control on such loans. Future interest
spread receivables in case of a par structure deals are recognised over the tenure of agreements as per guidelines issued by the RBI.
Expenditure in respect of direct assignment is recognised as and when incurred. Credit enhancement in the form of cash collateral
provided by the Company is included under Cash and bank balance / Loans and advances, as applicable.
2.5 Revenue recognition:
The Company complies, in all material respects, with the Accounting Standards, Prudential Norms relating to income recognition,
asset classification and the minimum provisioning for bad and doubtful debts and standard assets, specified in the directions issued
by the RBI, as applicable to it, and
• Interest Income is recognised on the time proportionate basis as per agreed terms.
• Income recognised and remaining unrealised for ninety days or more for all the loans, except Capital Market Financing loans, are
reversed and are accounted as income when these are actually realised.
• Interest income on non-performing assets is recognised on cash basis.
• Dividend income is recognised when the right to receive payment is established.
• In respect of the other heads of income, the Company accounts the same on accrual basis.
• Processing fees received from customers is recognised as income on receipt basis.
2.6 Preliminary expenses:
Preliminary Expenses are written off in the financial year in which they are incurred.
2.7 Employee benefits:
The Company’s contribution towards Provident Fund and Family Pension Fund, which are defined contribution, are accounted for on
an accrual basis and recognised in the statement of profit & loss.
The Company has provided “Compensated Absences” on the basis of actuarial valuation.
Gratuity is post employment benefit and is in the nature of Defined Benefit Plan. The liability recognized in the Balance Sheet in
respect of gratuity is the present value of defined benefit obligation at the Balance Sheet date together with the adjustments for
unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is calculated at or near the Balance
Sheet date by an independent actuary using the projected unit credit method.
Annual Report 2011-12 |
55

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
2.8 Provisions, Contingent liabilities and Contingent assets:
Non-performing loans are written off / provided for, as per management estimates, subject to the minimum provision required as per
Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. Provision
on standard assets is made as per notification dated January 17, 2011 issued by RBI. All such provisions are classified as long term
provisions.
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is
a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that
the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent Assets are neither recognized nor disclosed in the financial statements.
2.9 Taxes on income:
Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income Tax Act, 1961 enacted in India. Provision for current tax is computed based on estimated
tax liability computed after adjusting for allowance, disallowance and exemptions in accordance with the applicable tax laws.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during
the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rate and the tax laws
enacted or substantively enacted at the Balance Sheet date. At each reporting date, the Company re-assesses unrecognized deferred
tax assets. The deferred tax asset is recognised or unrecognised, to the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be available. Deferred tax liability is recognised as and when arisen.
2.10 Operating leases:
Lease rentals in respect of operating lease arrangements are charged to the statement of profit & loss in accordance with Accounting
Standard 19 – Leases, issued by the Institute of Chartered Accountants of India.
2.11 Investments:
Investments, which are readily realisable and intended to be held for not more than one year from the date on which such
investments are made, are classified as current investments. All other investments are classified as non – current investments. Current
investments are stated at lower of cost or market / fair value. Non – current investments are carried at cost. Provision for diminution
in value of non – current investments is made, if in the opinion of the management, such diminution is other than temporary. For
investment in mutual funds, the net assets value (NAV) declared by the mutual funds at the Balance Sheet date is considered as the
fair value.
2.12 Inventories:
Closing stock is valued at cost or market value, whichever is lower. Cost is computed on FIFO basis.
2.13 Earnings per share:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.
56 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 3. SHARE CAPITAL
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Authorised Share Capital
300,000,000 Equity shares(Previous year 300,000,000 equity shares) of ` 10 each 3,000,000,000 3,000,000,000
1,999,600 Equity shares of ` 100 each # 199,960,000 -
150 Preference Shares of ` 100 each # 15,000 -
250 11% Non- cumulative redeemable preference shares of ` 100 each # 25,000 –
Total 3,200,000,000 3,000,000,000
Issued, Subscribed and Paid-up share capital
237,154,030 Equity Shares (Previous year 237,154,030 Equity Shares) of ` 10 each with
voting rights 2,371,540,300 2,371,540,300
# During the year under review, Moneyline Credit Limited, a wholly owned subsidiary was merged with the Company pursuant to the order
issued by Hon'ble High Court. The merger has been effected with the filing of the order of the Hon'ble High Court with Registrar of
Companies on March 26, 2012. The appointed date of the merger was April 1, 2011. Accordingly, the financial results of the Company
for the period ended March 31, 2012 are prepared after giving effect to the said merger.
(i) Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period
As at March 31, 2012 As at March 31, 2011
Particulars No. of shares Amount in ` No. of shares Amount in `
At the beginning of the period 237,154,030 2,371,540,300 23,715,403 237,154,030
Issued during the period – bonus issue – – 21,34,38,627 2,134,386,270
Outstanding at the end of the period 237,154,030 2,371,540,300 237,154,030 2,371,540,300
(ii) Rights attached to equity shares
The Company has only one class of issued equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees.
(iii) Details of shareholders holding more than 5% shares in the Company
As at March 31, 2012 As at March 31, 2011
Particulars No. of shares % holding No. of shares % holding
Equity shares of ` 10 each fully paid
India Infoline Limited 234,467,549 98.87% 182,000,000 76.74%
India Infoline Marketing Services Limited* – – 52,838,700 22.28%
* India Infoline Marketing Services Limited (“IIMSL”), a wholly owned subsidiary of India Infoline Limited (IIL), has been merged with IIL
with effect from April 1, 2011. The merger was sanctioned by the Hon'ble High Court of Judicature at Bombay; vide its order dated 27th
April 2012. Pursuant to the merger all the investments of IIMSL stand transferred to IIL.
(iv) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the
period of five years immediately preceding the reporting date:
March 31, 2012 March 31, 2011 March 31, 2010 March 31, 2009 March 31, 2008
Particulars No. of shares No. of shares No. of shares No. of shares No. of shares
Bonus issue – 213,438,627 – – –
(v) The Company has implemented Employee Stock Option Scheme – 2007. Under the said scheme 4,920,000 (Previous year 5,825,000),
stock options are in force as on March 31, 2012.
Annual Report 2011-12 |
57

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 4.
RESERVES AND SURPLUS
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Securities Premium Reserve
Opening balance 8,655,737,836 10,806,624,106
Addition during the year –
Deduction during the year , for issue of bonus shares
and adjustment of share issue expenses. – (2,150,886,270)
Closing balance 8,655,737,836 8,655,737,836
General Reserve
Opening balance 83,000,000 –
Addition due to transfer during the year from surplus
in the Statement of Profit and Loss – 83,000,000
Deduction during the year – –
Closing balance 83,000,000 83,000,000
Special Reserve*
Opening balance 508,681,186 323,181,186
Addition due to transfer during the year from
surplus in the Statement of Profit and Loss 216,318,814 185,500,000
Closing balance 725,000,000 508,681,186
* Pursuant to Section 45 1C of Reserve Bank of India Act, 1934 and Section 29C of
National Housing Bank Act,1987)
Debenture Redemption Reserve
Opening balance – –
Addition on account of NCD public issue 630,000,000 –
Closing balance 630,000,000 –
Surplus / (Deficit) in Statement of Profit and Loss
Opening balance 1,793,067,282 1,277,338,109
Addition during the year 1,053,809,069 922,500,349
Less: Appropriations
Goodwill write off on Moneyline Credit Limited merger (18,057,308) –
Interim dividend – (118,577,015)
Dividend distribution tax – (19,694,160)
Special reserve (216,318,814) (185,500,000)
General reserve – (83,000,000)
Debenture redemption reserve (630,000,000) –
Closing balance 1,982,500,229 1,793,067,283
Total 12,076,238,066 11,040,486,305
Note: 5.
LONG TERM BORROWINGS
(Amount in `)
Non-current portion
Current maturity
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Secured
Loan from banks (secured against receivables) –
Refer Note 5.1 below 21,929,166,667 9,158,333,333 5,478,741,851 1,441,666,667
Non Convertible Debentures (secured against immovable
property, stock and book debts) – Refer Note 5.2 below 8,768,886,000 2,365,300,000 1,329,000,000 1,033,000,000
Sub total 30,698,052,667 11,523,633,333 6,807,741,851 2,474,666,667
Unsecured
Non Convertible Debentures – Refer Note 5.3 below 1,539,149,056
Amount disclosed under the head “Other current
liabilities”(Refer Note : 8) (6,807,741,851) (2,474,666,667)
Sub total 1,539,149,056 – (6,807,741,851) (2,474,666,667)
Total 32,237,201,723 11,523,633,333 – –
During the year, the Company has raised Secured Term Loans aggregating ` 18,250,000,000/- (Previous Year ` 7,750,000,000/-) from
various banks.
The Company has also raised ` 8,384,900,000/- (P.Y. ` 2,783,200,000/-) by issue of Secured Non Convertible Debentures.
58 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 5.1. TERM LOANS FROM BANKS - SECURED:
(Amount in `)
Non current
March 31, 2012 March 31, 2011
Maturities 1-3 years 3-5 years Total 1-3 years 3-5 years Total
Rate of interest *
10.00% to 11.00% – – – 3,333,333,333 – 3,333,333,333
11.01% to 12.00% – – – 3,675,000,000 2,150,000,000 5,825,000,000
12.01% to 13.00% 17,679,166,667 4,250,000,000 21,929,166,667 – – –
Total 17,679,166,667 4,250,000,000 21,929,166,667 7,008,333,333 2,150,000,000 9,158,333,333
The rate of interest for the above term loans are linked to the base rates of the banks and are subject to change from time to time. The
above categorisation of loans has been based on the interest rates, prevalent as on the respective reporting dates.
The above loans are secured by way of first pari passu charge over the current assets in the form of receivables, book debts, bills,
outstanding monies receivables including future movable assets, other than those specifically charged. The above loans are also
guaranteed by India Infoline Limited, holding company.
Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED
(Amount in `)
Non-current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
11.50% Non-Convertible Debentures of Face value
` 10,000 each redeemable on 2-Mar-2017 300,000,000 – – –
11.70% Non-Convertible Debentures of Face value
` 1,000 each redeemable on 18-Aug-2016 202,408,000 – – –
11.90% Non-Convertible Debentures of Face value
` 1,000 each redeemable on 18-Aug-2016 2,896,847,000 – – –
11.50% Non-Convertible Debentures of Face value
` 10,000 each redeemable on 30-Jan-15 225,000,000 – – –
11.70% Non-Convertible Debentures of Face value
` 1,000 each redeemable on 18-Dec-14 330,974,000 – – –
Equity Linked Non-Convertible Debentures Series I-018
of Face value ` 100,000 each redeemable on 18-Oct-14 77,500,000 – – –
Equity Linked Non-Convertible Debentures Series I-019
of Face value ` 100,000 each redeemable on 18-Oct-14 41,000,000 – – –
Equity Linked Non-Convertible Debentures Series I-014
of Face value ` 100,000 each redeemable on 13-Oct-14 32,000,000 – – –
Equity Linked Non-Convertible Debentures Series I-015
of Face value ` 100,000 each redeemable on 13-Oct-14 15,400,000 – – –
Equity Linked Non-Convertible Debentures Series I-016
of Face value ` 100,000 each redeemable on 13-Oct-14 38,500,000 – – –
11.70% Non-Convertible Debentures of Face value
` 1,000 each redeemable on 18-Aug-14 3,417,457,000 – – –
Equity Linked Non-Convertible Debentures Series I-017
of face value ` 100,000 each redeemable on 13-May-14 75,500,000 – – –
Equity Linked Non-Convertible Debentures Series I-012
of Face value ` 100,000 each redeemable on 29-Jul-13 56,500,000 56,500,000 – –
Equity Linked Non-Convertible Debentures Series I-004
of Face value ` 100,000 each redeemable on 10-Sep-12 – 30,000,000 30,000,000 –
Equity Linked Non-Convertible Debentures Series I-003
of Face value ` 100,000 each redeemable on 9-May-13 30,000,000 30,000,000 – –
Equity Linked Non-Convertible Debentures Series I-001
of Face value ` 100,000 each redeemable on 5-May-13 92,600,000 92,600,000 – –
Equity Linked Non-Convertible Debentures Series I-002
of Face value ` 100,000 each redeemable on 5-May-13 52,200,000 52,200,000 – –
Equity Linked Non-Convertible Debentures Series I-009
of Face value ` 100,000 each redeemable on 30-Apr-13 50,000,000 50,000,000 – –
Annual Report 2011-12 |
59

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED (Contd...)
(Amount in `)
Non-current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Equity Linked Non-Convertible Debentures Series I-006
of Face value ` 100,000 each redeemable on 29-Apr-13 11,000,000 11,000,000 – –
8.00% Non-Convertible Debentures of Face value
` 1,000,000 each redeemable on 20-Apr-13 734,000,000 734,000,000 – –
Equity Linked Non-Convertible Debentures Series I-010
of Face value ` 100,000 each redeemable on 19-Apr-13 10,000,000 10,000,000 – –
12.20% Non-Convertible Debentures of Face value
` 1,000,000 each redeemable on 16-Apr-13 80,000,000 – – –
Equity Linked Non-Convertible Debentures Series I-007
of Face value ` 100,000 each redeemable on 30-Mar-13 – 20,000,000 20,000,000 –
Equity Linked Non-Convertible Debentures Series I-008
of Face value ` 100,000 each redeemable on 30-Mar-13 – 4,000,000 4,000,000 –
Equity Linked Non-Convertible Debentures Series I-005
of Face value ` 100,000 each redeemable on 29-Mar-13 – 25,300,000 25,300,000 –
Equity Linked Non-Convertible Debentures Series I-013
of Face value ` 100,000 each redeemable on 4-Oct-12 – 86,200,000 86,200,000 –
Equity Linked Non-Convertible Debentures Series I-011
of Face value `100,000 each redeemable on 28-Jul-12 – 30,500,000 30,500,000 –
8.25% Non-Convertible Debentures of Face value
` 1,000,000 each redeemable on 10-May-12 – 400,000,000 400,000,000 –
8.00% Non-Convertible Debentures of Face value
` 1,000,000 each redeemable on 21-Apr-12 – 733,000,000 733,000,000 –
8.30% Non-Convertible Debentures of Face value
` 1,000,000 each redeemable on 15-Sep-11 – – – 300,000,000
8.00% Non-Convertible Debentures of Face value
` 1,000,000 each redeemable on 21-Apr-11 – – – 733,000,000
Total 8,768,886,000 2,365,300,000 1,329,000,000 1,033,000,000
The above debentures are secured by way of charge over immoveable property and/or current assets, book debts, receivables (both present
and future) and other assets of the Company. Debentures outstanding as on March 31, 2012, amounting to ` 734,000,000 (Previous year
` 1,467,000,000) are secured by way of exclusive charge on certain receivables of the Company. Secured non convertible debentures
aggregating to ` 2,365,300,000/- (Previous year ` 3,398,300,000/-) are also guaranteed by India Infoline Ltd., the holding Company.
During the year under review, the Company successfully completed its maiden public issue of Secured Redeemable Non-Convertible
Debentures (“NCDs”) aggregating to ` 7,500,000,000. The Company has utilized the entire proceeds of NCD public issue for the stated
purposes mentioned in the Final Prospectus dated July 29, 2011. During the year under review, Company extinguished 652,314 Secured
Redeemable Non-Convertible Debentures aggregating to ` 652,314,000.
Pursuant to Section 117C of the Companies Act, 1956 read with circular issued by the Ministry of Company Affairs (“MCA”), the Company
being an NBFC was required to create Debenture Redemption Reserve of a value equivalent to 50% of the debentures offered through a
public issue. Accordingly, ` 630,000,000/- has been transferred to Debenture Redemption Reserve Account for the financial year ended
March 31, 2012
60 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 5.3. NON CONVERTIBLE DEBENTURES – UNSECURED
(Amount in `)
Non Current
Particulars March 31, 2012 March 31, 2011
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 30-Mar-2019 (SBMIB VII – 7 years) 350,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 30-Mar-2019 (SBMIB VI - 7 years) 50,000 –
12.00% Non-Convertible Debentures of Face value ` 1,000,000 each redeemable
on 28-Mar-2019 * 250,000,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 2-Mar-2019 (SBMIB V – 7 years) 88,000 –
12.00% Non-Convertible Debentures of Face value ` 1,000,000 each redeemable
on 27-Feb-2019 * 750,000,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 Each Redeemable
on 23-Feb-2019 (SBMIB IV – 7 years) 474,000 –
11.50% Non-Convertible Debentures of Face value ` 1,000,000 each redeemable
on 20-Feb-2019 * 500,000,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 7-Feb-2019 (SBMIB III – 7 years) 250,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 7-Feb-2019 (SBMIB II – 7 years) 30,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 18-Jan-2019 (SBMIB I – 7 years) 1,160,000 –
12.25% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 30-Mar-2018 (SBDB V – 6 years) 1,788,000 –
12.25% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 30-Mar-2018 (SBDB IV – 6 years) 1,440,000 –
12.25% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 1-Mar-2018 (SBDB III – 6 years) 2,406,000 –
12.25% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 7-Feb-2018 (SBDB II – 6 years) 2,540,000 –
12.25% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 23-Jan-2018 (SBDB I – 6 years) 3,755,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 30-Mar-2017 (SBMIB VII – 5 years) 2,330,056 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 30-Mar-2017 (SBMIB VI – 5 years) 3,234,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 2-Mar-2017 (SBMIB V – 5 years) 3,129,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 23-Feb-2017 (SBMIB IV – 5 years) 3,789,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 7-Feb-2017 (SBMIB III – 5 years) 4,769,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 7-Feb-2017 (SBMIB II – 5 years) 3,297,000 –
12.75% Non-Convertible Debentures of Face value ` 1000 each redeemable
on 18-Jan-2017 (SBMIB I – 5 years) 4,270,000 –
Total 1,539,149,056 –
* For these Non Convertible Debentures, the Company has a call option, after 5 years from the date of allotment subject to prior approval
from the Reserve Bank of India for redemption. The Non Convertible Debentures does not have any put option
Annual Report 2011-12 |
61

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 6.
PROVISIONS
(Amount in `)
Short-term
Long-term
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Provision for employee benefits
Provision for leave encashment 14,619,192 667,602 – –
Provision for gratuity 9,943,919 – – –
Subtotal 24,563,111 667,602 – –
Provision others
Contingent provision against standard assets – – 177,815,344 82,366,463
Provision for expenses 277,492,820 15,672,962 – –
Subtotal 277,492,820 15,672,962 177,815,344 82,366,463
Total 302,055,931 16,340,564 177,815,344 82,366,463
Note: 7. SHORT TERM BORROWINGS
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Secured
Cash credit from banks 1,489,362,175 109,110
Loan from financial Institution 1,000,000,000 –
Sub total 2,489,362,175 109,110
Unsecured
Loan from banks 400,000,000 –
Commercial Paper 17,450,000,000 8,660,000,000
Non Convertible Debentures – 272,000,000
Sub total 17,850,000,000 8,932,000,000
Total 20,339,362,175 8,932,109,110
The above secured borrowings are secured by way of first pari passu charge over the current assets in the form of receivables, book debts,
bills, outstanding monies receivables including future movable assets, other than those specifically charged. The above loans are also
guaranteed by India Infoline Limited, holding company.
Note: 8. OTHER CURRENT LIABILITIES
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Current maturities of long term borrowings 6,807,741,851 2,474,666,667
Sub – total 6,807,741,851 2,474,666,667
Others
Interest accrued but not due on borrowings 875,339,427 194,153,476
Debenture application money received pending allotment 2,060,000 –
Payables on account of assignment 189,334,616 –
Temporary overdrawn bank balance as per books 1,623,873,595 1,903,896,595
Advances from customers 381,295,858 180,842,870
Payables to vendors for health care loans 182,560,942 –
Contractually reimbursable expenses 167,270,824 172,473,371
Income received in advance 34,838,647 18,623,500
Statutory remittances (Contributions to PF and ESIC, Withholding Taxes,
Excise Duty, VAT, Service Tax, etc.) 18,629,321 21,163,077
Others 11,356,506 4,667,737
Sub – total 3,486,559,736 2,495,820,626
Total 10,294,301,587 4,970,487,293
62 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 9.
TANGIBLE ASSETS
(Amount in `)
Premises Computer Electrical Office Furniture & Total
Equipment Equipment Fixture
Cost or valuation as at April 1, 2011 145,000 17,778,265 24,083,123 27,947,855 83,270,890 153,225,133
Additions – 81,487,282 151,032,004 163,077,530 327,563,714 723,160,530
Deductions/Adjustments during the year* – 46,802 – 160,449 32,642 239,893
As at March 31, 2012 145,000 99,218,745 175,115,127 190,864,936 410,801,962 876,145,770
Depreciation
As at April 1, 2011 23,561 7,778,064 3,117,891 3,378,316 13,442,827 27,740,659
Depreciation for the year 7,250 21,049,624 26,220,325 24,958,248 76,844,174 149,079,621
Deductions/Adjustments during the year – 46,799 – 203,754 31,439 281,992
Up to March 31, 2012 30,811 28,780,889 29,338,216 28,132,810 90,255,562 176,538,288
Net Block as at March 31, 2012 114,189 70,437,856 145,776,911 162,732,126 320,546,400 699,607,482
Net Block as at March 31, 2011 121,440 10,000,201 20,965,232 24,569,539 69,828,063 125,484,474
Note: 10. INTANGIBLE ASSETS
(Amount in `)
Software
Cost or valuation as at April 1, 2011 4,939,762
Additions –
Deductions/Adjustments during the year * –
As at March 31, 2012 4,939,762
Amortisation
As at April 1, 2011 4,197,073
Amortisation for the year 517,813
Deductions/Adjustments during the year * –
Up to March 31, 2012 4,714,886
Net Block as at March 31, 2012 224,876
Net Block as at March 31, 2011 742,689
Note: 11. NON-CURRENT INVESTMENTS
(Amount in `)
Face As at March 31, 2012 As at March 31, 2011
Particulars Value Number Amount Number Amount
Unquoted, Non-Trade, Long Term
(Valued at cost)
Units of India Infoline venture Capital Fund
(IIFL Opportunity fund) 100,000 3,850 385,000,000 3,850 385,000,000
Arch Pharmalabs Limited 10 263,028 105,211,200 263,028 105,211,200
Sub-total 490,211,200 490,211,200
Debentures and Bonds - for Financing
Real Estate Projects
Add Albatross Properties Pvt Ltd 100,000 2,500 249,800,000 – –
Ankur Energy Resources Private Limited 100,000 780 78,000,000 – –
Galleria Mall Developers Pvt Ltd 100,000 800 80,000,000 – –
Kumar Housing Corporation Limited 100,000 4,000 400,000,000 – –
Lily Realty Pvt Ltd (17%) 100,000 2,770 277,000,000 – –
Lily Realty Pvt Ltd (18%) 100,000 2,540 254,000,000 – –
Neptune Developers Ltd 100,000 900 90,000,000 – –
Prince Foundation Ltd 100,000 985 98,516,858 – –
Sahyog Homes Limited 100,000 3,650 365,000,000 – –
Satra Properties (India) Limited 100,000 3,158 315,760,000 – –
Sheth Developers Pvt Ltd 100,000 1,200 120,000,000 – –
Vijay Associates (Wadhwa)
Construction Pvt Ltd 53,360 3,968 211,736,246 – –
Sub-total 2,539,813,104 –
Total 3,030,024,304 490,211,200
Annual Report 2011-12 |
63

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 12.
The Company recognized deferred tax assets since the management is reasonably/virtually certain of its profitable operations in future. As
per Accounting Standard 22 'Accounting for Taxes on Income’, the timing differences mainly relates to following items and result in a net
deferred tax asset:
Deferred Tax Assets
(Amount in `)
As at
As at
Particulars March 31, 2012 March 31, 2011
Depreciation 14,282,973 3,142,078
On gratuity/ leave encashment – (504,157)
Provision for doubtful debts 49,565,723 8,931,646
Provision for standard assets 56,043,819 26,894,535
Other 6,232,834 5,921,703
Total 126,125,349 44,385,805
Note: 13. LOANS & ADVANCES
(Amount in `)
Non Current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Loans
- Secured 22,530,974,442 13,417,828,417 39,615,823,654 19,334,719,116
- Unsecured 18,330,849 125,584,064 78,013,680 11,604,258
Less : Provision for doubtful loans (56,562,880) (22,594,512) (49,497,763) (4,293,863)
Sub-total 22,492,742,411 13,520,817,969 39,644,339,571 19,342,029,511
Dues from customers -
- Secured – – 2,039,798,354 462,536,211
- Unsecured – – 42,523,657 107,192,969
Inter corporate deposit
– unsecured 1,944,700,003 1,922,300,003 500,000,000 –
Deposits – unsecured 237,272,362 73,696,978 – –
Capital advances - unsecured 22,734,188 12,250 – –
Advance income tax (net of provisions ` 1,442,620,570
(previous year ` 934,880,264) – Unsecured 128,419,802 72,133,459 – –
Sub-total 2,333,126,355 2,068,142,689 2,582,322,011 569,729,180
Total 24,825,868,766 15,588,960,658 42,226,661,582 19,911,758,691
Note: 14. OTHER ASSETS
(Amount in `)
Non Current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Fixed deposits 399,144,118 294,694,939 – –
Unamortised debenture issue expenses 111,863,067 – 54,128,088 –
Prepaid expenses 4,301,095 7,315,434 591,848,212 321,471,004
Service tax input – – 10,108,298 11,022,011
Excess funding in gratuity fund – – 1,455,261 1,517,746
Staff loans – – 649,982 509,772
Others – – 1,177,442 1,049,445
Total 515,308,280 302,010,373 659,367,283 335,569,978
64 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 15. CURRENT INVESTMENTS
(Amount in `)
Face As at March 31, 2012 As at March 31, 2011
Particulars Value Number Amount Number Amount
Unquoted, Non - Trade, Current (valued
at cost or market whichever is less)
Mutual Funds
DWS Short Maturity Fund- Institutional
Growth Plan* 10 - – 87,860,573 1,000,497,891
DWS Fixed Term Fund* 10 36,000,000 360,000,000 – –
Birla Mutual Fund 10 – – 913 25000
360,000,000 1,000,522,891
Non convertible Debentures
- for Financing Real Estate Projects
Ankur Energy Resources Private Limited 100,000 3,750 375,000,000 – –
Galleria Mall Developers Pvt Ltd 100,000 1,607 160,700,000 – –
Grand View Estates Private Limited 10,000,000 70 694,470,000 – –
Kumar Housing Corporation Limited 100,000 1,000 100,000,000 – –
Lily Realty Pvt Ltd (17%) 100,000 2,772 275,210,247 – –
Neptune Developers Ltd 100,000 600 60,000,000 – –
Prince Foundation Ltd 100,000 750 74,983,143 – –
Sahyog Homes Limited 100,000 3,650 365,000,000 – –
Satra Properties (India) Limited 100,000 4,705 470,540,000 – –
Vijay Associates (Wadhwa)
Construction Pvt Ltd 53,360 1,987 106,022,554 – –
Subtotal 2,681,925,944 – –
Total 3,041,925,944 1,000,522,891
Aggregate cost of mutual fund units 360,000,000 1,000,522,891
NAV of mutual fund units 387,216,000 1,030,358,506
Aggregate cost of quoted investments – –
Aggregate market value of quoted investments – –
Aggregate cost of unquoted investments 2,681,925,944 –
* Investment in units of DWS Mutual Fund made by the Company is subject to pledge/lien of Deutsche Bank for Overdraft facility provided
to IIFL Realty Ltd, a fellow subsidiary.
Annual Report 2011-12 |
65

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 16. INVENTORIES (Valued at lower of cost and net realisable value)
(Amount in `)
Face As at March 31, 2012 As at March 31, 2011
Particulars Value Number Amount Number Amount
Equity Shares
HDFC Ltd 2 – – 130,000.00 87,352,207
Reliance Industries Ltd 10 – – 52,000.00 53,113,780
United Phosphorous Ltd 2 – – 184,000.00 27,498,412
Sub-total – – 167,964,399
Options*
Strike Price
Nifty Call 28-06-2012 4100 6,900 9,936,000 6 900 9,936,000
Nifty Call 28-06-2012 5100 (5,100) (4,287,621) (5 100) (4,287,621)
Nifty Call 28-06-2012 5200 1,200 383,400 1,200 984,000
Nifty Call 27-12-2012 5000 14,900 10,195,325 14,900 14,420,071
Nifty Call 27-12-2012 5100 6,500 2,925,000 6,500 6,064,500
Nifty Call 27-12-2012 5200 10,650 4,473,000 10,650 9,841,878
Nifty Call 27-12-2012 5300 5,750 2,765,750 5,750 5,318,750
Nifty Call 27-06-2013 5200 12,950 11,085,200 12,950 13,591,285
Nifty Call 26-06-2014 4500 13,550 15,514,750 – –
Nifty Call 26-06-2014 4600 9,000 10,620,000 – –
Nifty Call 26-06-2014 6500 (10,000) (2,950,000) – –
Sub-total 60,660,804 55,868,863
Non convertible Debentures*
Equity linked Non convertible Debentures
of Macquarie Finance (India) Private Limited 100,000 473 46,725,775 – –
Sub-total 107,386,579 55,868,863
Total 107,386,579 223,833,262
Aggregate market value - stock
on hand - Quoted 109,708,660 245,294,050
* Held to cover possible payout in respect of certain Equity Linked Non-Convertible Debentures issued by the Company.
Note: 17. CASH AND BANK BALANCES
(Amount in `)
Non Current
Current
Particulars March 31, 2012 March 31, 2011 March 31, 2012 March 31, 2011
Cash on hand – – 266,790,821 279,502,969
Balances with banks in current accounts – – 1,622,972,361 411,172,022
Fixed deposits 399,144,118 294,694,939 647,682,230 150,836,697
Amount disclosed under non-current assets (399,144,118) (294,694,939) – –
Total – – 2,537,445,412 841,511,688
Note: 18. REVENUE FROM OPERATIONS
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Income from financing activities 8,878,804,813 4,469,597,067
Profit from sale of Investments and trading activities 169,974,664 193,319,092
Dividend income 35,797,027 48,348,882
Total 9,084,576,504 4,711,265,041
Note: 19. OTHER INCOME
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Processing fee 345,012,921 340,888,628
Interest on fixed deposits 44,441,151 25,219,902
Administration fee & other charges from customer 57,714,489 49,890,823
Miscellaneous income 4,121,357 67,651,062
Total 451,289,918 483,650,415
66 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 20. EMPLOYEE BENEFIT EXPENSE
(Amount in `)
Particulars March 31, 2012 March 31, 2011
Salaries and bonus 1,034,955,864 655,232,097
Contribution to provident and other funds 22,444,645 11,329,111
Gratuity expenses 9,953,584 1,069,761
Staff welfare expenses 25,384,114 19,483,917
Total 1,092,738,207 687,114,886
The Company is recognising and accruing the employee benefit as per accounting standard (AS) – 15 on “Employee Benefits”. Details are
given below.
Particulars 2011-12 2010-11
Assumptions
Discount rate 8.50% 8.00%
Salary Escalation 5.00% 5.00%
Rate of return on plan assets 8.60% 8.00%
Change in benefit obligation
Liability at the beginning of the year 3,527,983 3,051,546
Interest cost 282,239 228,866
Current service cost 3,008,733 2,476,576
Liability transferred in 593,324 (971,015)
Benefit paid (99,100) (60,577)
Actuarial (Gain)/ Loss on obligations 7,168,731 (604,089)
Liability at the end of the year 14,481,910 4,121,307
Amount recognised in the Balance Sheet
Liability at the end of the year (14,481,910) (4,121,307)
Fair value of plan assets at the end of the year 5,993,252 5,578,476
Funded status (Surplus) 11,399,180 1,457,169
Net Liability/(Asset) recognised in the Balance Sheet 11,399,180 1,457,169
Expenses recognised in the Income statement
Liability transferred in – (971,015)
Interest cost 282,239 228,866
Current service cost 3,008,733 2,476,576
Expected return on plan assets (370,645) –
Benefit paid – (60,577)
Actuarial (Gain) or Loss 7,033,257 (604,089)
Expense recognised in P&L 9,953,584 1,069,761
Balance Sheet reconciliation
Opening net liability (1,164,769) 3,051,546
Net transfer in (354,233) –
Expenses as above 9,953,688 1,069,761
Employers contribution (6,605) (5,578,476)
Benefit paid – (60,577)
Net Liability/(Asset) recognised in the Balance Sheet 8,488,658 (1,517,746)
Note: 21. FINANCE COSTS
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Interest expenses on borrowings 4,686,586,269 2,183,788,559
Other borrowing cost 111,721,103 29,252,870
Total 4,798,307,372 2,213,041,429
Annual Report 2011-12 |
67

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 22. DEPRECIATION AND AMORTISATION EXPENSES
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Depreciation of tangible assets (Note : 23) 149,079,621 15,383,383
Amortisation of intangible assets ( Note :23) 517,813 1,593,522
Total 149,597,434 16,976,905
Note: 23. OTHER EXPENSES
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Advertisement 84,675,921 65,955,379
Bank charges 67,890,246 5,351,960
Communication 71,504,185 33,190,138
Electricity 58,613,338 28,691,714
Direct operating expenses 58,543,167 55,608,252
Legal & professional fees 103,357,771 78,997,791
Marketing expenses 300,313,536 169,579,049
Miscellaneous expenses 9,309,301 1,516,908
Office expenses 289,111,702 41,312,743
Postage & courier 14,629,477 14,483,626
Printing & stationary 55,322,238 21,015,746
Rent 432,994,177 153,608,268
Repairs & maintenance
- Computer 318,740 3,448,318
- Others 43,064,869 11,317,558
Remuneration to Auditors :
- Audit fees 725,000 395,000
- Certification expenses 110,500 73,000
- Out of pocket expenses 18,776 21,987
Software charges 74,494,824 16,471,470
Travelling & conveyance 65,163,307 40,945,430
Total 1,730,161,075 741,984,337
Note: 24. PROVISIONS AND WRITE OFF
Particulars March 31, 2012
(Amount in `)
March 31, 2011
Bad debts written off 40,001,530 110,958,123
Provision for contingencies 46,707,807 –
Provision for diminution in value of investments 2,029,581 –
Provision for doubtful loans 79,302,268 2,028,274
Provision for standard loans 95,318,881 82,366,463
Total 263,360,067 195,352,860
Note: 25. BASIC AND DILUTED EARNINGS PER SHARE [“EPS”] COMPUTED IN ACCORDANCE WITH ACCOUNTING STANDARD
(AS) 20 “EARNINGS PER SHARE”
(Amount in `)
Particulars March 31, 2012 March 31, 2011
BASIC
Profit after tax as per statement of profit and loss A 1,053,809,068 922,500,348
Number of shares subscribed B 237,154,030 237,154,030
EPS (Rupees) A/B 4.44 3.89
DILUTED
Profit after tax as per statement of profit and loss C 1,053,809,068 922,500,348
Number of shares subscribed 237,154,030 237,154,030
Add: Potential equity shares on account conversion of
Employees Stock Options 4,920,000 5,825,000
Weighted average number of shares outstanding D 242,074,030 242,979,030
EPS (Rupees) C/D 4.35 3.80
68 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 26.
The summary of consolidated Financial Statements represents consolidation of accounts of the Company with its following subsidiaries,
all incorporated within India, as detailed below:
Proportion of ownership interest
Subsidiary March 31, 2012 March 31, 2011
India Infoline Distribution Company Limited 100% 100%
India Infoline Housing Finance Limited 100% 100%
Note: 27. ASSIGNMENT OF LOAN PORTFOLIO :
During the year 2011-12, the Company has assigned loan portfolio to the extent of ` 5,456,426,443/- to various Banks.
Note: 28.
As of March 31, 2012, we had certain contingent liabilities not provided for, including the following:
(Amount in `)
Sr. No. Name of the Statute March 31, 2012 March 31, 2011
(i) In respect of Income tax demands 20,742,911 5,993,972
(ii) In respect of Service tax demands 15,324,272 15,324,272
(iii) Guarantees and counter guarantees 99,880,250 –
Note: 29.
At the Balance Sheet date, there were outstanding commitments (net of advances) of capital expenditure of ` 120,633,998/- (Previous
Year ` 93,176,908/-) out of the total contractual obligation entered during the year.
Note: 30.
The Company has taken office premises on operating lease at various locations. Lease rent in respect of the same has been charged to
statement of Profit and Loss. The agreements are executed for a period ranging 1 to 5 years with a renewable clause. Some agreements
have a clause for a minimum lock-in period. The agreements also have a clause for termination by either party giving a prior notice period
between 30 to 90 days. The Company has also taken some other assets under operating lease. The minimum Lease rentals outstanding as
at March 31, 2011, are as under:
(Amount in `)
Minimum Lease Rentals March 31, 2012 March 31, 2011
Up to one year 48,766,836 2,734,940
One to five years 1,771,900 666,000
Total 50,538,736 3,400,940
Note: 31.
The Company operates from and uses the premises, infrastructure and other facilities and services as provided to it by its holding company/
subsidiaries / group companies which are termed as ‘Shared Services’. Hitherto, such shared services consisting of administrative and other
revenue expenses paid for by the company were identified and recovered from them based on reasonable management estimates, which
are constantly refined in the light of additional knowledge gained relevant to such estimation. These expenses are recovered on an actual
basis and the estimates are used only where actual were difficult to determine.
Note: 32. SEGMENT REPORTING:
In the opinion of the management, there is only one reportable business segment (Financing and Investing) as envisaged by AS 17
'Segment Reporting', issued by the Institute of Chartered Accountants of India. Accordingly, no separate disclosure for segment reporting
is required to be made in the financial statements of the Company.
Secondary segmentation based on geography has not been presented as the Company operates primarily in India and the Company
perceives that there is no significant difference in its risk and returns in operating from different geographic areas within India.
Note: 33.
There are no dues to Micro and Small Enterprises (MSEs) outstanding for more than 45 days.
Note: 34. RETURN ON ASSETS:
The return on assets for the financial year 2011-12 was 1.68% (Previous year 2.37%).
Note: 35.
During the year under review, the Company witnessed fraud amounting to ` 12,168,031 in respect in our lending operations.
Note: 36.
As on March 31, 2012 the gold loan portfolio comprises 35.56 % (Previous Year ` 1.28%) of the total loan portfolio of the Company.
Annual Report 2011-12 |
69

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
Note: 37. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES.
Nature of relationship
Name of party
a) Related parties where control exists
Holding company
India Infoline Limited
Direct subsidiaries
Moneyline Credit Limited*
India Infoline Housing Finance Limited
India Infoline Distribution Company Limited
Fellow subsidiaries
India Infoline Commodities Limited
India Infoline Media & Research Services Limited
IIFL Capital Limited
India Infoline Trustee Company Limited
India Infoline Asset Management Company Limited
India Infoline Marketing Services Limited #
India Infoline Insurance Services Limited ##
India Infoline Insurance Brokers Limited ##
IIFL Wealth Management Limited
IIFL Realty Limited
IIFL Alternate Asset Advisors Limited
IIFL (Asia) Pte. Limited
IIFL Capital Ceylon Limited
IIFL Securities Ceylon (Pvt) Limited
IIFL Private Wealth Hong Kong Limited
IIFL Private Wealth (Mauritius) Limited
IIFL Private Wealth (Dubai) Limited
India Infoline Commodities DMCC
IIFL Inc. USA
IIFL Wealth (UK) Limited
Group companies
Finest Wealth Managers Private Limited
IIFL Trustee Services Limited
IIFL (Thane) Private Limited
IIFL Energy Limited
IIFL Capital Pte. Limited
IIFL Securities Pte Limited
b) Other related parties:
Key management personnel
Nirmal Jain
R Venkataraman
Other related parties:
Madhu Jain (wife of Mr. Nirmal Jain)
Aditi Venkataraman ( wife of Mr. R Venkataraman)
India Infoline Venture Capital Fund
* Merged with the Company pursuant to the order issued by Hon'ble High Court.
# India Infoline Marketing Services Limited (“IIMSL”), a wholly owned subsidiary of India Infoline Limited, merged with India Infoline
Limited with effect from April 1, 2011. The merger was sanctioned by the Hon'ble High Court of Judicature at Bombay; vide its order
dated 27th April 2012. The figures of previous year in respect of fellow subsidiaries include the amount of transactions with IIMSL and
hence not comparable with current year figures.
## These companies, being subsidiaries of IIMSL, were considered as group companies in previous year and hence not comparable with
current year figures.
70 |India Infoline Finance Limited

Consolidated Financial Statements of India Infoline Finance Limited
NOTES
c) Significant Transactions with Related Parties (Amount in `)
Nature of transaction Holding Fellow Group Other Total
Company Subsidiaries Companies related parties
Interest Income on ICD 801,245 166,888,434 – – 167,689,679
(160,697,900) (223,185,232) (19,824,583) – (403,707,715)
Interest Expenses on ICD 131,927,155 – – – 131,927,155
(599,761,055) – – – (599,761,055)
Dividend Paid – – – – –
(91,000,000) (26,419,350) – – (117,419,350)
Brokerage 494,094 – – – 494,094
(1,987,407) – – – (1,987,407)
Investments – – – – –
– – – (190,000,000) (190,000,000)
ICD repaid/issued – 2,037,500,000 – – 2,037,500,000
(1,409,686,035) (220,000,000) – (1,629,686,035)
ICD taken/received 1,085,100,000 430,000,000 – – 1,515,100,000
– (2,429,827,534) (220,000,000) – (2,649,827,534)
Advances Returned (net) / reimbursement of 50,330,350,319 1,264,870,011 – – 51,595,220,330
expenses (167,717,013,891) (7,433,163) (60,275,347) – (167,784,722,401)
Advances taken (net) / allocation of expenses 50,330,350,319 1,264,870,011 – – 51,595,220,330
(167,717,013,891) (7,433,163) (60,275,347) – (167,784,722,401)
(Amount in `)
Nature of transaction Holding Fellow Group Other Total
Company Subsidiaries Companies related parties
Sundry payables – – – – –
– – – – –
Sundry receivables – 2,444,700,001 – – 2,444,700,001
– (1,702,300,003) (220,000,000) – (1,922,300,003)
* Figures in bracket represent previous year’s figure and are not comparable with current year classification due to merger.
Note: 38.
Figures pertaining to subsidiary companies have been reclassified wherever necessary to bring them in line with parent company’s financial
statements.
Note: 39.
Previous year’s figures are regrouped and rearranged wherever necessary.
As per our attached report of even date
For Sharp & Tannan Associates
Chartered Accountants
ICAI Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors
Tirtharaj Khot Pratima Ram R Venkataraman Dilip Vaidya
Partner Whole Time Director Director Company Secretary
Membership No (F) 037457
Place : Mumbai
Dated: May 15, 2012
Annual Report 2011-12 |
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