Annual Report 2012-13 - India Infoline Finance Limited
Annual Report 2012-13 - India Infoline Finance Limited
Annual Report 2012-13 - India Infoline Finance Limited
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Inclusion Matters
CONTENTS<br />
Chairman’s Message 02<br />
Corporate Identity 04<br />
About IIFL <strong>Finance</strong> 06<br />
Highlights, <strong>2012</strong>-<strong>13</strong> 08<br />
Our Strengths 09<br />
Industry Overview <strong>13</strong><br />
Business Segments 15<br />
Risk Management 19<br />
Inclusion Matters 21<br />
Corporate Social Responsibility 30<br />
Financial Literacy Agenda for Mass Empowerment 32<br />
Director’s <strong>Report</strong> 34<br />
Standalone Financial Statement 39<br />
Consolidated Financial Statement 72
Chairman’s Message<br />
It gives me immense pleasure to<br />
<br />
taking over as Chairman of <strong>India</strong><br />
<strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>. During the<br />
<br />
economy faced more than its fair<br />
share of macroeconomic challenges.<br />
Although the economy grew at<br />
5% (as per the Central Statistical<br />
Organization), depreciating Rupee<br />
<br />
<br />
<strong>India</strong>n economy.<br />
During the year under review,<br />
<br />
acceptable levels, but remained<br />
on the higher side. The <strong>India</strong>n<br />
Rupee depreciated sharply due<br />
to an increasing current account<br />
<br />
<br />
part of the year and RBI responded<br />
by cutting interest rates. Looking<br />
forward, we are optimistic about<br />
the <strong>India</strong>n economy and feel that<br />
the worst is behind us. In the new<br />
<br />
signs of abating and we expect<br />
the softening of interest rates to<br />
commence in the second half.<br />
The role played by NBFCs in<br />
<br />
customers, otherwise excluded<br />
by the banking channels, has<br />
been well acknowledged. Multiple<br />
committees including the Thorat<br />
Committee, FSLRC and the K.U.B.<br />
Rao Committee were set up by<br />
RBI and Ministry of <strong>Finance</strong> to<br />
study NBFC issues and concerns<br />
<br />
regulation. There is a focus on<br />
augmenting regulatory provisions<br />
governing NBFCs, the guiding<br />
principle being that of bringing the<br />
regulatory framework applicable to<br />
NBFCs at par with that of banks over<br />
a transition period. It remains to be<br />
<br />
form and whether attempts are made<br />
to extend to NBFCs few relaxations<br />
currently available to banks.<br />
The recommendations from these<br />
committees are aimed towards a<br />
tightening of operations; we believe<br />
<br />
for the industry in the long-term.<br />
An example is the prudential norm<br />
amended by RBI in <strong>2012</strong> specifying<br />
the Loan to Value limit to 60% for<br />
<br />
industry at large when gold prices<br />
corrected sharply in April 20<strong>13</strong>. We<br />
are concentrated on the retail side<br />
of gold loans and focused primarily<br />
on collections and risk monitoring,<br />
2<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
this has ensured a minimal impact of<br />
gold price reduction on our portfolio.<br />
A majority of your Company’s six lakh<br />
customers belong to the emerging<br />
retail segment, who we classify as<br />
individuals with an annual income<br />
of below ` 3 lakhs. We have been<br />
serving this segment extensively<br />
through small value loans. Even<br />
now, <strong>India</strong> is a relatively underbanked<br />
retail economy and many<br />
<strong>India</strong>ns still do not enjoy an access<br />
<br />
Your company aims to provide basic<br />
<br />
individuals. Financial inclusion is a<br />
part of our core strategy and not an<br />
<br />
inclusion as a ‘cost of business’ but<br />
as an opportunity.<br />
Through our pan-<strong>India</strong> network of<br />
1,446 branches in over 600 centres,<br />
we provide small value loans,<br />
distributing 3.8 mn micro-insurance<br />
policies as a group company. Over<br />
57% of our centres are located in<br />
semi-urban and rural areas. We have<br />
<br />
services to our custome and have<br />
<br />
initiative called Financial Literacy<br />
Agenda for Mass Empowerment<br />
(FLAME), covering about 30 mn<br />
readers of the print media and<br />
school children in addition to<br />
attendees of tax and accounting<br />
programme workshops.<br />
The Reserve Bank of <strong>India</strong> invited<br />
applications for the setting up of<br />
new private sector banks to expand<br />
<br />
across the length and breadth<br />
of the country. The <strong>India</strong> <strong>Infoline</strong><br />
Group, with its distribution reach<br />
across the country and a large<br />
retail customer base, possesses the<br />
<br />
inclusion. The Company looks at the<br />
progression from an NBFC to a bank<br />
as a natural evolution.<br />
<br />
your Company continued to grow<br />
its loan book, despite challenging<br />
macroeconomic conditions,<br />
without compromising on the<br />
credit appraisal and underwriting<br />
processes. The year–on-year growth<br />
in the total loan book was 39%. Your<br />
Company’s loan portfolio rose from<br />
` 67.5 bn as on March 31, <strong>2012</strong> to<br />
` 93.8 bn as on March 31, 20<strong>13</strong>.<br />
Home loans/loans against property<br />
stood at ` 38.6 bn, gold loans<br />
portfolio stood at ` 38.6 bn, loan<br />
<br />
stood at ` 12.6 bn, and medical<br />
equipment loans stood at ` 3 bn.<br />
During the year under review, we<br />
incubated commercial vehicle<br />
(CV) loans and the outstanding<br />
loan portfolio was ` 741 mn. Your<br />
Company continued to maintain a<br />
high quality of assets and followed<br />
conservative provisioning at levels<br />
higher than statutory requirements.<br />
This was evident in low NPA<br />
levels. Gross NPAs continue to be<br />
maintained at similar levels of the<br />
overall portfolio while net NPAs were<br />
under 0.2%. Given the challenging<br />
macroeconomic conditions, your<br />
company’s performance was<br />
commendable.<br />
<br />
of its funds and increased banking<br />
relationships. We successfully raised<br />
` 5 bn through a public offering<br />
of Non-Convertible Debentures<br />
(NCD). The oversubscribed issue<br />
received an over-whelming response<br />
from public investors. The capital<br />
adequacy of your Company, as per<br />
RBI norms, stood at 21.60% as on<br />
March 31, 20<strong>13</strong>, higher than the<br />
RBI mandate of 15%, which helped<br />
diversify our resources.<br />
Your Company is aware of increasing<br />
threats in the Information Security<br />
domain. It took substantial steps<br />
to ensure that the Company was<br />
safeguarded against hacking<br />
attacks, data leakage and security<br />
breaches. IT and certain business<br />
<br />
ISO 27001 systems for practicing<br />
industry standard security<br />
implementations and processes.<br />
Your Company invested resources<br />
in implementing controls and<br />
continuously monitoring violations.<br />
Your Company deployed a Fraud<br />
Control application system for<br />
proactive risk management. This<br />
enabled access to databases<br />
of other large lenders and fraud<br />
detection based on application<br />
inconsistencies and other vital<br />
information. Other initiatives included<br />
the implementation of scorecards,<br />
policies for rural lending, business<br />
intelligence systems (underway),<br />
policies for the generation of priority<br />
sector loans and portfolio reviews/<br />
scrubs with CIBIL.<br />
In the end, I would like to thank<br />
all our shareholders, customers,<br />
regulators, institutions, bankers<br />
and employees for their continued<br />
support towards the growth of your<br />
Company.<br />
V K Chopra<br />
Non Executive Chairman<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
3
IIFL Group Today<br />
Overview<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong> (IIL), the<br />
parent company of <strong>India</strong> <strong>Infoline</strong><br />
<strong>Finance</strong> <strong>Limited</strong> (IIFL) has the<br />
following businesses:<br />
Key Businesses<br />
Credit and <strong>Finance</strong><br />
Wealth Management<br />
Financial Products Distribution<br />
Asset Management<br />
Equities, Commodities and<br />
Currency Broking<br />
Vision<br />
To become the Most Respected<br />
<br />
space in <strong>India</strong>.<br />
Values<br />
Team IIFL adheres to a set of<br />
values that can be summarised<br />
as GIFTS namely Growth,<br />
Integrity, Fairness, Transparency<br />
and Service.<br />
Growth<br />
We are driven to grow faster<br />
than the rest of the industry and<br />
encourage calculated risks and<br />
empowerment at all levels.<br />
Integrity<br />
We ensure utmost honesty and<br />
integrity, in letter and in spirit,<br />
in all our dealings with people –<br />
internal or external.<br />
Fairness<br />
We believe in fair dealings,<br />
devoid of any fear or favour,<br />
with all stakeholders including<br />
employees, customers and<br />
vendors.<br />
Transparency<br />
We believe in as much<br />
transparency as practically<br />
possible, with our stakeholders,<br />
media and public at large.<br />
Service<br />
We are a service organisation,<br />
committed to delight our<br />
customers with superior advice<br />
and service, delivered with<br />
humility and sincerity.<br />
2.1 mn<br />
No of customers<br />
3,820<br />
Business locations<br />
8<br />
Presence in countries<br />
14,000+<br />
Team strength<br />
250+<br />
Stocks covered<br />
₹400+ bn<br />
Wealth under advice<br />
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| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Awards<br />
Mr R Venkataraman received the award on behalf of IIFL at the D&B Equity Broking Awards, <strong>2012</strong><br />
Entrepreneur of the Year<br />
(Mr Nirmal Jain) - <strong>2012</strong><br />
Top Performer – Equity –<br />
FI Category – <strong>2012</strong><br />
Best Wealth Management<br />
House – <strong>India</strong><br />
2011 & <strong>2012</strong><br />
Best Market<br />
Analyst 2009 & <strong>2012</strong><br />
Best Commodities<br />
Investment <strong>2012</strong><br />
Best Broking House<br />
With Global Presence<br />
2011 & <strong>2012</strong><br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
5
At IIFL <strong>Finance</strong>, we are different because<br />
we have extended the benefits of organized<br />
financing to small retail customers.<br />
Addressing their growing needs through<br />
home loans, gold loans, loan against<br />
property, commercial vehicle financing,<br />
capital market financing as well as<br />
healthcare and equipment financing.<br />
The IIFL brand is associated with trust,<br />
knowledge and quality service across <strong>India</strong>.<br />
But more importantly, the brand stands for<br />
timely assistance provided to the country’s<br />
under-banked customers.<br />
The result is a leadership in segments and<br />
brand visibility among retail, corporate,<br />
domestic and foreign institutional investors.<br />
6<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
<strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong><br />
<strong>Finance</strong> <strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong><br />
<strong>Finance</strong> <strong>Limited</strong><br />
98.87% 100%<br />
<strong>India</strong> <strong>Infoline</strong><br />
Housing <strong>Limited</strong><br />
Engaged in housing<br />
Engaged in housing<br />
<br />
<br />
Overview<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
Overview<br />
(IIFL) is a subsidiary of <strong>India</strong><br />
<strong>India</strong> <strong>Infoline</strong> <strong>Infoline</strong> <strong>Limited</strong>. <strong>Finance</strong> The company <strong>Limited</strong> was<br />
(IIFL) incorporated is a subsidiary in 2004 of as <strong>India</strong> <strong>India</strong> <strong>Infoline</strong><br />
<strong>Infoline</strong> Investment <strong>Limited</strong>. Services The Private company <strong>Limited</strong> was<br />
incorporated and converted in into 2004 a public as <strong>India</strong> limited <strong>Infoline</strong><br />
Investment company in Services 2007. Private <strong>Limited</strong><br />
and converted into a public limited<br />
Products offered<br />
company in 2007.<br />
Home loans<br />
Products offered<br />
Home loans<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
equipments<br />
<br />
SME and Trader loans<br />
equipments<br />
Loans secured against Gold<br />
SME ornaments and Trader loans<br />
Loans <br />
secured against Gold<br />
ornaments<br />
Loans secured against property<br />
<br />
<br />
Loans against secured securities against property<br />
<br />
against securities<br />
Presence<br />
The company has 1,446<br />
Presence branches<br />
<br />
The company’s has capital 1,446 market<br />
branches <br />
The through company’s direct sales, capital branch market<br />
<br />
network, retail and wealth teams.<br />
through direct sales, branch<br />
network, retail and wealth teams.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
7
This is what we<br />
achieved in <strong>2012</strong>-<strong>13</strong><br />
Performance<br />
Performance<br />
82% growth in interest income from ` 9.1<br />
bn in 2011-12 to ` 16.5 bn<br />
` 1.1<br />
bn in 2011-12 to ` 1.9 bn<br />
CAGR (%) 68.5<br />
67.47<br />
93.75<br />
CAGR (%) 83<br />
17.4<br />
<br />
4.77% increase in return on equity from<br />
7.29% in 2011-12 to 12.06%<br />
32.87<br />
5.2<br />
9.5<br />
<br />
0.07 bps reduction in gross NPAs from<br />
0.56% in 2011-12 to 0.49%<br />
Business<br />
39% growth in total loan portfolio from<br />
` 67.4 bn in 2011-12 to ` 93.7 bn<br />
Loan<br />
portfolio<br />
2010-11<br />
2011-12<br />
<strong>2012</strong>-<strong>13</strong><br />
Revenue<br />
2010-11<br />
2011-12<br />
<strong>2012</strong>-<strong>13</strong><br />
Segments<br />
Home loans and loan against property<br />
accounted for 41.17% of the total loan<br />
book.<br />
(` bn)<br />
(` bn)<br />
CAGR (%) 43%<br />
Profit<br />
after tax<br />
(` bn)<br />
<br />
Loans against capital market products<br />
<br />
stood at <strong>13</strong>.52% in <strong>2012</strong>-<strong>13</strong> against<br />
11.87% in 2011-12<br />
<br />
to 3.28% of the total loan book against<br />
2.25% in the previous year<br />
1.1<br />
1.9<br />
29.9<br />
17.86<br />
21.6<br />
Funds management<br />
Capital adequacy ratio was maintained at<br />
21.6% (17.86% in the previous year), well<br />
above 15% required by RBI.<br />
0.9<br />
<br />
2010-11<br />
2011-12<br />
<strong>2012</strong>-<strong>13</strong><br />
Capital<br />
adequacy<br />
ratio<br />
(%)<br />
The Company was rated ‘ICRA AA-<br />
<br />
(stable)’ by ICRA, ‘CARE AA-’ by CARE<br />
and CRISIL AA–(Stable) by CRISIL<br />
2.12% growth in net interest margin from<br />
2010-11<br />
2011-12<br />
<strong>2012</strong>-<strong>13</strong><br />
7.43% in 2011-12 to 9.54%<br />
8<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Our strengths<br />
Legacy<br />
The parent company enjoys<br />
a strong brand recall among<br />
retail, institutional and<br />
corporate investors in <strong>India</strong>.<br />
The IIFL brand is associated<br />
with trust, knowledge,<br />
leadership and quality<br />
services.<br />
Asset quality<br />
The Company possesses a<br />
secured loan book; almost<br />
all its lending is backed by<br />
secured assets, acting as a<br />
cushion against the possibility<br />
of defaults.<br />
Robust system<br />
The Company’s robust credit<br />
approval mechanisms, credit<br />
control processes, audit and<br />
risk management processes<br />
as well as policies protect<br />
<br />
in a low gross NPA of 0.49%<br />
(0.56% in 2011-12).<br />
Extensive network<br />
The Company’s access to<br />
pan-<strong>India</strong> branches and large<br />
distribution network of its<br />
parent company enhances its<br />
understanding of the market<br />
and customer needs.<br />
Strong team<br />
The management team<br />
possesses a deep sectoral<br />
knowledge and experience.<br />
The members of the executive<br />
<br />
expertise in the delivery of<br />
products and services.<br />
Differentiated approach<br />
The Company is present in most<br />
major economic clusters of <strong>India</strong><br />
and explores business penetration<br />
through a cluster-centric approach<br />
following a thorough understanding<br />
about the potential of the cluster.<br />
This knowledge is leveraged for<br />
customer acquisition, portfolio<br />
monitoring and the proactive<br />
<br />
helping manage our risks.<br />
Strong processes<br />
The Company possesses<br />
robust processes that<br />
enhance customer service<br />
and direct people interaction<br />
on the one hand while<br />
bringing about a culture of<br />
excellence (procedural and<br />
operational) on the other.<br />
Technology<br />
The Company leverages<br />
technology to integrate its<br />
business, generating real-time<br />
information that facilitates<br />
informed decision-making.<br />
<br />
The Company widened its<br />
borrowing sources (loans<br />
from banks, non- convertible<br />
debentures and commercial<br />
paper).<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
9
Inclusiveness<br />
through a<br />
retail focus<br />
In the course of our business, we lend to individuals and<br />
businesses, providing them with timely access to capital<br />
that helps them in their respective businesses and personal<br />
<br />
product portfolio catering to niche promising segments,<br />
<br />
home loans, loans against property, loans against securities<br />
<br />
Over the years, IIFL <strong>Finance</strong> addressed a growing capital<br />
appetite by enhancing lending across four key segments<br />
<br />
<br />
collaterals.<br />
10<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
IIFL <strong>Finance</strong> reaches across the country to provide capital to<br />
customers where they need it.<br />
Inclusiveness<br />
through an<br />
extensive<br />
presence<br />
IIFL <strong>Finance</strong> leveraged the extensive branch network of its<br />
parent organization to penetrate deeper across more than<br />
900 <strong>India</strong>n cities.<br />
We select the regions of our presence on the basis of their<br />
<br />
We intend to leverage this extensive distribution network by<br />
extending all products within our portfolio across the entire<br />
branch network.<br />
The Company increased its pan-<strong>India</strong> reach, addressing the<br />
needs of over 600,000 customers.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
11
Big<br />
numbers<br />
₹92.2 bn<br />
Total borrowing<br />
₹93.75 bn<br />
Loan book<br />
21.6%<br />
Capital adequacy ratio<br />
9.5%<br />
Net interest margin<br />
0.17%<br />
Net non-performing assets<br />
58.16%<br />
Cost to income<br />
1,446<br />
Branches<br />
12<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Industry<br />
overview<br />
INDIA’S ECONOMIC GROWTH DECELERATED FOR THE SECOND SUCCESSIVE YEAR. IT DECLINED FROM 6.2%<br />
IN 2011-12 TO 5% IN <strong>2012</strong>-<strong>13</strong>, THE SLOWEST ECONOMIC GROWTH IN A DECADE. THIS DECLINE WAS DUE TO<br />
SHARPER-THAN-EXPECTED DECELERATION IN THE SERVICES SECTOR, A DISMAL PERFORMANCE BY THE<br />
AGRICULTURAL AND INDUSTRIAL SECTORS AND UNEMPLOYMENT WELL ABOVE PRE-CRISIS LEVELS<br />
<strong>India</strong>’s industrial output decline was<br />
led mainly by a contraction in the<br />
manufacturing, mining and capital<br />
goods sectors (proxy for investment<br />
activity). The dampened industrial<br />
sentiment could be attributed to high<br />
<br />
<br />
<br />
agriculture sector grew at 1.9%<br />
compared to 3.6% in the previous<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
<strong>13</strong>
to 2.1% from 3.5% a year ago<br />
mainly due to slowdown in the<br />
manufacturing sector. The services<br />
sector, which constitutes 59% of<br />
the GDP, reported a 7.1% growth<br />
compared to 8.2% a year ago, mostly<br />
due to the lower growth estimate for<br />
trade, hotels and communication<br />
sectors. Per-capita income at<br />
current prices rose by 11.7% to<br />
` 68,757 in <strong>2012</strong>-<strong>13</strong> from ` 61,564<br />
in the previous year. Growth in total<br />
consumption, including private<br />
consumption fell to less than half at<br />
<br />
Investment growth, as measured by<br />
<br />
1.7% from 4.4% a year ago.<br />
Segmental overview<br />
Gold loans: <strong>India</strong> is among the<br />
largest gold consumers in the world<br />
with an annual consumption of 900<br />
tonnes. Over the years, gold loan<br />
<br />
to a high acceptance as collateral.<br />
The organised gold loan market<br />
witnessed a robust CAGR of over<br />
55% in <strong>India</strong> between FY 2008 and<br />
FY <strong>2012</strong>; gold loans from banks<br />
witnessed a CAGR of 57.5% and<br />
NBFCs witnessed a CAGR of 98.5%<br />
during the period. Gold loans<br />
disbursed by NBFCs witnessed rapid<br />
growth even as banks dominate this<br />
market (72% market share, March<br />
<strong>2012</strong>).<br />
Healthcare: The <strong>India</strong>n healthcare<br />
sector is estimated to reach US$<br />
100 bn by 2015, growing 20%<br />
y-o-y (source: Fitch). The industry<br />
is expected to touch US$ 280 bn<br />
by 2020 on the back of increasing<br />
demand for specialised and quality<br />
healthcare facilities. For a growing<br />
economy, factors like lifestyle-related<br />
health issues, improving healthcare<br />
insurance penetration, government<br />
initiatives and increasing disposable<br />
incomes enhance optimism. The<br />
country witnessed the establishment<br />
of a world-class pharmaceutical<br />
manufacturing and vibrant<br />
biotechnology industry on the one<br />
hand and growth in medical tourism<br />
on the other, which catalysed health<br />
care spending and scope for related<br />
<br />
On the back of relatively low<br />
customs duty rates (9.2% to 25%)<br />
combined with an increasing number<br />
of healthcare centres specialising<br />
in advanced surgery, <strong>India</strong> offers<br />
substantial opportunities for the<br />
direct supply of high technology,<br />
specialised medical equipment,<br />
products and systems.<br />
The Ministry of Health & Family<br />
Welfare proposes that domestic<br />
funding should be increased to at<br />
least 2% of the GDP in the 12th Five<br />
Year Plan. <strong>India</strong>’s health sector was<br />
allocated ` 37,330 crore in budgetary<br />
estimates for 20<strong>13</strong>-14, a hike of<br />
8.24% over the previous year.<br />
Housing loans: <strong>India</strong>’s housing<br />
loan book is expected to witness a<br />
22% CAGR during 20<strong>13</strong>-15 for the<br />
following reasons (estimated by<br />
CARE Research):<br />
Softening of average borrowing<br />
rates<br />
Under-penetrated housing loan<br />
market (with mortgage as a<br />
percentage of GDP at 9% versus<br />
20% in China and 77% in USA)<br />
Continued traction towards Tier II,<br />
III & IV cities/loans less than ` 25<br />
lakhs<br />
Customised product offerings<br />
Loan against property: Getting<br />
loans against collateralized property<br />
are cost-effective. Financiers<br />
exercise adequate diligence in<br />
property appraisal and offer up to<br />
70% of the value as loan. In this<br />
secured loan (collateralised), the<br />
customer is eligible for a higher<br />
amount compared to an unsecured<br />
personal loan after paying<br />
administrative and processing fees<br />
(usually 0.5-1.5% of the loan value).<br />
Typically, the tenure for such a<br />
loan is one to nine years, but some<br />
companies extend it to 15 years if the<br />
loan amount is high. The interest rate,<br />
<br />
from 12-16%, which makes them<br />
cheaper than personal loans.<br />
Loan against capital market<br />
instruments: With consumer<br />
spending on the rise and loans<br />
getting expensive, individuals are<br />
<br />
<br />
shares fall under this category.<br />
The advantages here include<br />
convenience and immediate liquidity.<br />
The growth in the retail loan market<br />
is the result of a rise in consumer<br />
spending. Loan against shares can<br />
be obtained by pledging shares<br />
owned by the individual with the<br />
lending agency. The performance<br />
of this product depends largely<br />
on the performance of the capital<br />
markets. The volatility in the markets<br />
and negative sentiments impacted<br />
product performance in <strong>2012</strong>-<strong>13</strong>.<br />
14<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Business segments<br />
A. Mortgage loans<br />
35%<br />
<br />
₹40.5 bn<br />
Assets under management<br />
Highlights, <strong>2012</strong>-<strong>13</strong><br />
<br />
period ending March 31, 20<strong>13</strong> stood<br />
at ` 40.5 bn, 22.2% higher than the<br />
previous year<br />
<br />
were directed toward affordable<br />
housing<br />
Overview<br />
Mortgage loans comprise retail and<br />
corporate mortgage loans, which in<br />
turn can be bifurcated into housing<br />
loans and loans against property.<br />
<br />
the purchase of apartments, home<br />
construction, extension, apartment/<br />
home improvement and land<br />
acquisition.<br />
<br />
usually availed for working capital<br />
requirements, for business use,<br />
acquisition of new property and<br />
construction projects.<br />
The home loan segment was<br />
commissioned in 2009. The<br />
Company grew its business exposure<br />
and widened its experience. Loans<br />
against properties are expected to<br />
grow irrespective of the prevailing<br />
economic situation. The company’s<br />
focus has been on small business<br />
groups, as this segment of customers<br />
dominates the market. The company<br />
has built strong in-house capabilities<br />
to assess income earning capacity<br />
and mitigate risks.<br />
IIFL plans to reach wider and<br />
deeper, catering to a large segment<br />
needing handholding, especially<br />
in documentation, but otherwise a<br />
lucrative segment aspiring towards<br />
a luxurious lifestyle. The company<br />
provides them with attractive options<br />
within the organised sector.<br />
IIFL mortgage possesses the<br />
infrastructure to reach customers<br />
who need funding for low-income<br />
housing acquisition. IIFL also touches<br />
<br />
customers. This would not have been<br />
possible without a strong team.<br />
IIFL mortgage has four dedicated<br />
branches in addition to sharing<br />
infrastructural facilities with other<br />
NBFC businesses.<br />
Behind the business<br />
The Company’s business is backed<br />
by strong in-house collection<br />
and legal teams with a focus on<br />
<br />
<br />
prescribed and independent fraud<br />
control checks. The Company also<br />
undertakes credit and background<br />
checks for each borrower; it provides<br />
legal and technical evaluation of<br />
the security. The Company relies on<br />
external appraisals of all properties<br />
(including valuations by international<br />
property consultants) in case of large<br />
ticket mortgage loans.<br />
Strategy<br />
Going ahead, the Company aims<br />
to carve out a larger market share.<br />
The mortgage business’ biggest<br />
advantage is its presence through<br />
1,446 branches across <strong>India</strong>. The<br />
Company expects to strengthen<br />
the mortgage segment without<br />
compromising asset quality and<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
15
Business segments<br />
B. Gold loans<br />
35%<br />
<br />
₹41.6 bn<br />
Assets under management<br />
Highlights, <strong>2012</strong>-<strong>13</strong><br />
As on March 31, 20<strong>13</strong> gold loans<br />
accounted for 41% of the company’s<br />
consolidated loan book with ` 41.6<br />
bn of assets under management.<br />
The Company added close to 150<br />
branches, taking the total number<br />
to 1,446 across more than 600<br />
locations. As a strategy, we entered<br />
regions through large cities and<br />
gradually penetrated the smaller<br />
ones.<br />
The Company undertook extensive<br />
employee training; it engaged<br />
with leading training groups and<br />
academic institutions for the delivery<br />
of employee training programmes<br />
It implemented ‘Ace’, a transactioncentralised<br />
software.<br />
It strengthened regulatory<br />
compliances, capable of addressing<br />
regulatory changes with ease and<br />
speed.<br />
Overview<br />
The Company entered this space<br />
to address the growing demand for<br />
<br />
<br />
customers in big as well as semiurban<br />
and rural areas. The company<br />
<br />
needs of small businessmen,<br />
vendors, traders, farmers and the<br />
salaried class, who for reasons<br />
of convenience availed of the<br />
Company’s credit facilities rather than<br />
seeking loans from banks.<br />
IIFL implemented various schemes<br />
to suit borrowing requirements. The<br />
<br />
of gold jewellery was typically based<br />
<br />
content, valued as per centralised<br />
policies and guidelines.<br />
The average loan tenure was four<br />
months with a maximum tenure of<br />
<br />
up to 60% of the gold jewellery<br />
value, which adequately protected<br />
the company from gold price<br />
<br />
The company’s business was<br />
differentiated on account of<br />
competitive rates and customised<br />
<br />
options. The company’s gold loan<br />
branches were situated in high<br />
concentration residential areas,<br />
enhancing customer convenience.<br />
Safety and security<br />
When the company entered this<br />
business, it distinguished itself<br />
through business transparency and<br />
the online availability of relevant<br />
information. Each branch was<br />
provided a minimum of two security<br />
cameras, sensors, panic buttons,<br />
alarm and sensors connected<br />
<br />
telephone numbers (including the<br />
number of the nearest police station).<br />
The company maintained a 60-day<br />
CCTV camera recording and a<br />
<br />
<br />
technology to open the vault in<br />
addition to documenting customer<br />
<br />
industry. The company’s branches<br />
are guarded 24x7 and it engaged<br />
<br />
the police, army and navy to visit all<br />
branches monthly and undertake<br />
<br />
<br />
<br />
to verify gold purity and personal<br />
discussions). All the company’s<br />
valuers possess more than a year’s<br />
experience.<br />
The company’s gold loan book is<br />
41% of its total lending book, a<br />
sound foundation for growth and<br />
de-risking.<br />
Strategy<br />
The company’s gold loan branches<br />
were positioned as a one-stop<br />
<br />
the portfolio of the individual but also<br />
prospective family opportunities.<br />
To reinforce its service standard,<br />
the company embarked on the<br />
implementation of Customer<br />
Relationship Management software.<br />
16<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Business segments<br />
C. Healthcare financing<br />
3%<br />
<br />
₹3.1 bn<br />
Assets under management<br />
Highlights, <strong>2012</strong>-<strong>13</strong><br />
<br />
` 3,072 mn; all equipment funded<br />
were income-generating.<br />
<br />
portfolio grew 103%.<br />
Overview<br />
<br />
<br />
<br />
ancillary and refurbished equipment<br />
and receivables.<br />
The company provided healthcare<br />
<br />
pathology centres, nursing<br />
homes, hospitals and medical/<br />
dental colleges against security of<br />
equipment, personal guarantee and<br />
mortgage of property.<br />
<br />
located within the existing branch<br />
network of the mortgage and other<br />
loan branches. The sales leads<br />
were originated through branches<br />
spearheaded by independent<br />
regional sales managers,<br />
associations with direct sales agents<br />
and alternate channel partners. The<br />
preferential tie-ups with large wellreputed<br />
manufacturers of medical<br />
equipment helped generate quality<br />
leads. The business now possesses<br />
the capability to source from all IIFL<br />
<br />
distribution capabilities.<br />
Strategy<br />
The company expects to outperform<br />
the market by at least 30%, leverage<br />
existing branches to generate<br />
additional revenues, extend deeper<br />
into under-tapped markets and<br />
extend presence to semi-urban and<br />
rural areas.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
17
Business segments<br />
D. Capital Market <strong>Finance</strong><br />
12%<br />
<br />
₹12.7 bn<br />
Assets under management<br />
Highlights, <strong>2012</strong>-<strong>13</strong><br />
Assets under management grew<br />
58.33%% to ` 12.7 bn.<br />
Capital market loan origination was<br />
sourced through direct sales, branch<br />
network, retail and wealth teams, as<br />
of March 31, 20<strong>13</strong>.<br />
Overview<br />
<br />
loans against securities, margin<br />
funding for broking clients, IPO<br />
<br />
<br />
<br />
were secured by the pledge of listed<br />
equity shares, vested ESOPs, mutual<br />
fund units, structured notes bonds,<br />
debentures and collaterals approved<br />
by the credit policy.<br />
The maximum tenure for capital<br />
<br />
the average tenure was three to<br />
four months. The target customers<br />
comprised promoters, high net<br />
worth individuals, corporates and<br />
<br />
entities, private trusts or partnership<br />
of individuals and limited liability<br />
partnerships.<br />
<br />
in our margins, rapid execution of<br />
structured and unique transactions,<br />
higher single party and group<br />
exposure over peers, competitive<br />
interest rates and best-in-class loan<br />
management system, ensuring a<br />
superior client experience.<br />
Collateral and risk<br />
management<br />
The prices of securities are<br />
updated daily on the basis of the<br />
<br />
stock exchanges. On volatile days,<br />
<br />
clients are intimated, in case of any<br />
margin shortfalls.<br />
The collateral in the loan<br />
management system is matched with<br />
securities lying with depositories on<br />
a daily basis through an automated<br />
process.<br />
Margin calls are sent to clients<br />
daily; in the case of a shortfall when<br />
the client was unable to meet margin<br />
calls, the loan value was realised<br />
through the sale of securities.<br />
18<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Risk management<br />
At IIFL, risk mitigation is a comprehensive and integrated procedure that provides a clear<br />
understanding of strategies, policies, initiatives and norms, leading to structured reporting<br />
and control.<br />
ANY RISK ARISING<br />
FROM THE FAILURE<br />
OF A BORROWER<br />
TO HONOUR HIS<br />
OR HER FINANCIAL<br />
OR CONTRACTUAL<br />
OBLIGATIONS TO THE<br />
COMPANY, NEEDS TO<br />
BE MONITORED.<br />
Risk mitigation<br />
The Risk Management Committee and<br />
Asset Liability Management Committee<br />
(ALCO) comprising Directors and senior<br />
<br />
controls and positions are in place.<br />
Ongoing reviews of the risk<br />
management processes covering credit<br />
and underwriting controls, operations,<br />
technology and compliance risks is<br />
undertaken by the Risk Committee on a<br />
periodic basis.<br />
Funding policies are reassessed from<br />
time-to-time, keeping in mind factors<br />
like interest rate movements and desired<br />
<br />
funds, wholesale / retail funds, money<br />
market funding, among others.<br />
In case of margin funding, when<br />
the credit limit is breached, a systemgenerated<br />
alert makes it possible for the<br />
Company to liquidate the client’s holdings,<br />
thereby reducing risks.<br />
A stock-based categorisation allows<br />
limits to be laid down based on the<br />
liquidity and quality of the stock in<br />
question.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
19
ANY RISK ARISING<br />
FROM ANY ECONOMIC<br />
EVENT WITH A<br />
GLOBALLY PERVASIVE<br />
IMPACT CAN HAMPER<br />
THE COMPANY’S<br />
PROFITABILITY<br />
Risk mitigation<br />
IIFL possesses multifarious revenue<br />
streams across product lines and four<br />
distinct businesses, which are inherently<br />
linked to the capital and non-capital<br />
markets.<br />
IIFL’s presence in multiple product<br />
segments serves as a natural hedge<br />
against a downturn in any particular<br />
sector.<br />
The Company’s presence in the<br />
relatively volatile equity segment is<br />
balanced by its presence in the relatively<br />
<br />
A FAILURE ON THE PART<br />
OF THE CUSTOMER<br />
TO REPAY IN RESPECT<br />
OF THE INTEREST<br />
OR INSTALMENT OF<br />
PRINCIPAL FOR A<br />
SPECIFIED PERIOD OF<br />
TIME MAY RESULT IN<br />
MASSIVE WRITE-DOWNS<br />
AND ADVERSELY<br />
AFFECT ASSET<br />
QUALITY.<br />
Risk mitigation<br />
Our NBFC loan book comprises almost<br />
entirely of secured lending exercises<br />
against tangible collaterals.<br />
Asset quality in the lending portfolio is<br />
<br />
(NPAs) at less than 1%, as on March 31,<br />
20<strong>13</strong>.<br />
Constant audit checks facilitate the<br />
maintenance of a superior asset quality.<br />
INABILITY TO MEET<br />
THE FUNDING<br />
REQUIREMENTS AT<br />
ACCEPTABLE COSTS<br />
COULD DISRUPT THE<br />
NORMAL FUNCTIONING<br />
OF THE BUSINESS.<br />
Risk mitigation<br />
The Company enjoys diverse funding<br />
sources, widening the lending portfolio<br />
and reducing dependence on any single<br />
source.<br />
The funding is addressed through<br />
a prudent combination of borrowings<br />
(working capital limits from banks), nonconvertible<br />
debentures and commercial<br />
papers.<br />
The Group’s ability to raise long-term<br />
resources at competitive rates is the vital<br />
cog in the IIFL wheel. Case in point: <strong>India</strong><br />
<strong>Infoline</strong> <strong>Finance</strong> Ltd raised ` 5 bn through<br />
a retail NCD issue in <strong>2012</strong> in only three<br />
days.<br />
Our short term debt program is top<br />
rated A1+ by ICRA. ICRA and CRISIL has<br />
rated our long term debt as ICRA AA- and<br />
CRISIL AA- respectively.<br />
DEPENDENCE ON ONE<br />
SINGLE BUSINESS<br />
MAY DRY UP THE<br />
COMPANY’S REVENUE<br />
STREAM IN CASE OF<br />
MARKET VOLATILITY<br />
Risk mitigation<br />
<br />
from the fact that its revenue streams are<br />
well spread out.<br />
Improvements in secured-lending<br />
businesses contribute to the overall<br />
earnings.<br />
Return on net worth for IIFL <strong>Finance</strong><br />
increased to 12.1% from 7.6% in the<br />
previous year.<br />
20<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Inclusion matters<br />
100 small customers speak
We have surveyed and taken testimonials of IIFL<br />
customers across the country. Watch the complete audio<br />
visual on our website www.indiainfoline.com/inclusion<br />
A few excerpted transcribes placed below:<br />
“…I needed money a couple<br />
of times and approached<br />
IIFL, they gave me loan on<br />
the basis of my identity card<br />
without any other documents.<br />
Every time I go to IIFL, as<br />
my work is done hassle free<br />
there.”<br />
Govardhan Singh (Kishangarh,<br />
Rajasthan)<br />
Supervisor, Marble Unit, IIFL<br />
Customer<br />
“The system at IIFL is very<br />
good because they charge<br />
interest per day. At some other<br />
companies, the system is such<br />
that they charge minimum<br />
three months interest that is<br />
why I do not deal with them.”<br />
Rajesh Kumar Verma (Agra,<br />
Uttar Pradesh)<br />
Owner - Small Scale Shoe<br />
Manufacturing Unit, IIFL Customer<br />
22<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Inclusion matters....<br />
“I needed money urgently, so<br />
I took a gold loan from IIFL.<br />
They explained everything<br />
(terms and conditions) very<br />
well to me and released the<br />
amount immediately.”<br />
Jayesh Mehta (Uran,<br />
Maharashtra)<br />
Store Owner, IIFL Customer<br />
“I am into shoe manufacturing<br />
and need lots of money to<br />
run the business. I prefer IIFL<br />
<br />
interest is 1.5 to 2%... IIFL also<br />
helps people in starting their<br />
own business. The company<br />
has very good customer<br />
service.”<br />
Tajuddin (Agra, Uttar Pradesh)<br />
Raw Material Supplier, Leather Shoe<br />
Industry, IIFL Customer<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
23
Inclusion matters....<br />
“This is the village’s main city.<br />
<br />
any bank or institution comes<br />
here the villagers will be<br />
<br />
Hiralal Gujar (Kishangarh,<br />
Rajasthan)<br />
Worker, IIFL Customer<br />
“From what they explained to<br />
me about the interest rates<br />
<br />
and by comparing what I knew<br />
about the prevailing rates in<br />
the market, and about other<br />
companies; I liked the service<br />
of IIFL…”<br />
Manisha Sarkar (Kolkata, West<br />
Bengal)<br />
Homemaker, IIFL Customer<br />
24<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Inclusion matters....<br />
“… I have two shops in Uran.<br />
I wanted loan but the bank<br />
did not give me. So I went to<br />
<br />
dreams of making my own<br />
house…”<br />
Sarita Gupta (Uran, Maharashtra)<br />
Shop Owner, IIFL Customer<br />
“I invested ` 25,000, and the<br />
interest it helps pay for my<br />
son’s college fees…I have<br />
to take care of two kids’<br />
education, and there are<br />
seven other mouths to feed at<br />
my home…”<br />
Surendra Namdeo Bhoir (Uran,<br />
Maharashtra)<br />
Autorickshaw driver, IIFL<br />
Customer<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
25
Inclusion matters....<br />
“I have been dealing with IIFL<br />
for one-and-a-half years. First<br />
I took a gold loan from them,<br />
after repaying that, I took a<br />
loan against property... there<br />
are less formalities here... and<br />
the process was simple, which<br />
I liked a lot…”<br />
Shivcharan Agarwal<br />
(Kishangarh, Rajasthan)<br />
Textile Shop Owner, IIFL Customer<br />
“… they explained to me<br />
very clearly, like you would<br />
to a child. And because they<br />
explained so well, I now know<br />
exactly how much I have to<br />
pay, and how much loan to<br />
take, and how long the policy<br />
will cover me.”<br />
Dilip Damodar Kadu (Uran,<br />
Maharashtra)<br />
Journalist, IIFL Customer<br />
26<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Inclusion matters....<br />
“There is a young boy in<br />
my neigbourhood who was<br />
working with Saradha. He<br />
advised me to invest in<br />
Saradha as the returns will<br />
be much more… However, I<br />
told him if he can get me to<br />
invest in some trusted, reputed<br />
Company like I have done with<br />
<br />
by investing with IIFL… I am<br />
happy with this… “<br />
Sujit Nag (Kolkata, West Bengal)<br />
Cable TV operator, IIFL Customer<br />
“… I needed money for my<br />
son’s higher education. I<br />
was very disturbed. But I got<br />
loan in one and a half hour. `<br />
210,000. I was happy that at<br />
1.9% interest rate I received<br />
the loan…”<br />
Tanmoy Chakraborty (Agartala,<br />
Tripura)<br />
IIFL Customer<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
27
Inclusion matters....<br />
<br />
machine from IIFL and the loan<br />
procedure was hassle free.<br />
<br />
all my queries were handled<br />
telephonically without need for<br />
personal visit every time and<br />
the staff are very helpful.”<br />
Dr. S K .Vijayati (Kishangarh,<br />
Rajasthan)<br />
Surgeon, Saroj Hospital, IIFL<br />
Customer<br />
“We approached IIFL as we<br />
were desperately looking<br />
for funds and I received<br />
timely help from them. All<br />
documentation issues were<br />
sorted out within no time and<br />
the team of IIFL is excellent.”<br />
Kinner Nayak (Mumbai,<br />
Maharashtra)<br />
Architect, IIFL Customer<br />
28<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Inclusion matters....<br />
“… I did a course in beauty<br />
treatment. But I could not start<br />
a parlour for days due to lack<br />
of funds. One day, I came to<br />
know about IIFL Loan branch<br />
from a friend… my dreams are<br />
<br />
Jhuma Chakraborty (Agartala,<br />
Tripura)<br />
Beauty parlour owner, IIFL<br />
Customer<br />
“It is very easy to avail money<br />
from IIFL as it is hassle free<br />
and this is the reason every<br />
time I go there.”<br />
Mohd Multazim Qureshi (Agra,<br />
Uttar Pradesh)<br />
Small Scale Owner, Leather Shoe<br />
Industry, IIFL Customer<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
29
Corporate Social Responsibility<br />
Precious gift of Life: Blood donation drive for 5th year in a row<br />
‘Give the gift of life, Donate Blood’<br />
was the theme this year at IIFL’s blood<br />
<br />
blood donation drive took place at the<br />
IIFL Towers, Near Lifeline Hospital,<br />
Chennai and in various other parts of<br />
Tamil Nadu.<br />
Over 400 people came forward<br />
in Tamil Nadu to donate blood<br />
during the blood donation drives<br />
across the state conducted by<br />
IIFL Foundation. The camp was<br />
conducted in coordination with Mr.<br />
R Rajkumar, the Asian delegate of<br />
the International Federation of Blood<br />
Donor Organisations and Secretary of<br />
the <strong>India</strong>n Society of Blood transfusion<br />
and immunohematology.<br />
Every donor was given a free medical<br />
check-up prior to the blood donation.<br />
Each of them were examined for<br />
<br />
ensure that none of them suffer from<br />
anemia, high blood pressure etc.<br />
Besides the blood donation camps<br />
conducted in IIFL premises across the<br />
country, our employees proactively<br />
donate blood at various camps held in<br />
<br />
encouraging sign.<br />
Financial literacy at NASEOH<br />
<br />
literacy for students of National<br />
Society for Equal Opportunities for the<br />
Handicapped (NASEOH). Individual<br />
attention was given to these students<br />
by volunteers of KJ Somaiya Institute<br />
who we partnered for imparting<br />
<br />
enabled. This year <strong>13</strong> students<br />
<br />
course in December, <strong>2012</strong>.<br />
H Nemkumar and Nirmal<br />
Jain Scholarship<br />
<strong>India</strong> has a large number of gifted and<br />
deserving students who are unable<br />
to avail of a high-quality learning<br />
experience from reputed institutions<br />
<br />
other constraints. Young <strong>India</strong> Fellows<br />
reaches out to such students. The<br />
YIF scholarships have been made<br />
possible by generous donations by a<br />
stellar set of individuals including Mr.<br />
Nirmal Jain and Mr. H Nemkumar on<br />
behalf of IIFL Foundation.<br />
Sponsoring career guidance<br />
in Jawahar<br />
IIFL Foundation joined hands with<br />
a social development organization<br />
working across the Thane district<br />
of Maharashtra with tribal and rural<br />
communities. IIFL is actively helping<br />
in providing career guidance to the<br />
students of High School and Junior<br />
colleges in Walvanda, Jawhar.<br />
30<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Barsana camp<br />
For the last few years, IIFL Foundation<br />
has been sponsoring the Barsana<br />
camp, which has been successfully<br />
organized by the Bhaktivedanta<br />
Hospital. Like earlier years, besides<br />
the IIFL Foundation providing around<br />
` 12 lakhs for the camp, the seniors<br />
in the company have also donated<br />
generously a substantial amount for<br />
the noble initiative.<br />
Since 1992, the hospital has been<br />
conducting this free Eye and Dental<br />
camp at Barsana, in Mathura district,<br />
about 150 kms from Delhi. Thousands<br />
of villagers, majority of them above 60<br />
<br />
these camps.<br />
The camp started on Jan 29 and the<br />
screening went on till Feb 1 20<strong>13</strong>. The<br />
surgeries then continued till Feb 8.<br />
Over 2,950 patients were screened<br />
out of which 1,250 patients were<br />
<br />
& procedures.<br />
Around 800 patients were operated<br />
in the initial week while the rest were<br />
operated over a fortnight. The patients<br />
later came for follow ups after 40<br />
days where they received a pair of<br />
spectacles along with medicines.<br />
Also about 1,980 patients attended<br />
the Dental camp between Jan 29<br />
and Feb 1. All related procedures like<br />
<br />
performed by the Dental team of 45<br />
members consisting of Dentists and<br />
other Para medical staff. The hospital<br />
gave 120 dentures on the spot to the<br />
needy patients and active follow up is<br />
being done.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
31
FLAME<br />
(Financial Literacy Agenda for Mass Empowerment) is an IIFL Foundation<br />
initiative to promote financial literacy amongst the masses in order to make<br />
them an integral part of <strong>India</strong>’s spectacular growth story.<br />
Rajasthan<br />
Andhra Pradesh<br />
Kishangarh is considered the marble capital of <strong>India</strong>. IIFL<br />
has initiated a series of activities to bring a meaningful<br />
impact here. IIFL organized a session on nuances of<br />
taxation with reference to the marble industry. Financial<br />
literacy sessions were organized for the marble trade<br />
and marble artisans and labourers too. Besides Free<br />
Personal accident insurance cover, all attendees were<br />
given a copy of the best-seller ‘108 Mantras for Financial<br />
Success’ in Hindi.<br />
Besides an educational presentation on the practical<br />
aspects of money management, personal taxation and<br />
investing, the audience at Gudivada & Singarayapalem,<br />
<br />
experts from Mumbai and Hyderabad. Special help<br />
<br />
planning and tax planning. All attendees were given a<br />
free personal accident insurance cover worth ` 1 lakh<br />
each.<br />
32<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
Financial Literacy for Schools<br />
Over 50,000 school students from nearly 200 schools enrolled in the FLAME education programme.<br />
Even some teachers participated in the financial literacy initiative. Response came from schools across<br />
the country including Andaman & Nicobar Islands and Union territory of Lakshwadeep.<br />
Mumbai Bangalore Teachers also participate<br />
Financial Literacy for Corporates<br />
<br />
<br />
factory premises at Chembur. The course content included Importance of saving & Investing, Tax & tax planning, Need for<br />
Retirement planning.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
33
Directors’<br />
<strong>Report</strong><br />
<br />
<br />
Standalone Financial Results:<br />
(In Mn)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Gross Total Income 16,939.82 9,103.70<br />
Less: Expenditure 14,398.56 7,663.71<br />
2,541.26 1,439.99<br />
Less: Taxation - Current 985.23 506.87<br />
- Deferred (194.58) (80.05)<br />
- Short Provision of Tax for earlier year 3.12 (5.34)<br />
1,747.49 1,018.51<br />
Consolidated Financial Results:<br />
(In Mn)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Gross Total Income 17,371.71 9,535.87<br />
Less: Expenditure 14,634.07 8,034.16<br />
2,737.64 1,501.71<br />
Less: Taxation - Current 1,042.23 528.15<br />
- Deferred (194.88) (81.74)<br />
- Short Provision of Tax for earlier year 3.12 1.49<br />
1,887.16 1,053.81<br />
34<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Review of Business:<br />
Notwithstanding <strong>India</strong>’s macroeconomic downtrend and<br />
<br />
<strong>India</strong> continues to grow at a healthy pace. Your Company<br />
has a de-risked business model, with multiple products<br />
spread over a wide geography, and is well placed to<br />
participate in the industry growth.<br />
Your Company’s loan book during the year has grown<br />
to ` 93,750 mn from ` 67,470 mn in the previous year.<br />
Home loans and loan against property constituted 41%,<br />
Gold Loan 41%, capital market products <strong>13</strong>.52% and<br />
medical equipment constituted 3.28% of the loan portfolio.<br />
The newly started Commercial Vehicle Loan portfolio<br />
constituted nearly 0.79% of loan portfolio. Our unsecured<br />
portfolio of personal loans, which was discontinued in<br />
2008 stood at 0.01% of the loan portfolio.<br />
On a consolidated basis, the Company’s income<br />
` 17,371 mn and<br />
` 1,887 mn during<br />
the year.<br />
The Company’s product offerings include margin funding,<br />
home loan & mortgage loans, loan against securities, gold<br />
<br />
vehicle loans. During the year under review, your Company<br />
received registration from Pension Fund Regulatory and<br />
Development Authority (“PFRDA”) to act as “Points of<br />
Presence (PoP)” under National Pension System (NPS).<br />
This will enable IIFL to directly distribute pension products<br />
<br />
citizens, except Government Employees covered by NPS,<br />
and enable the common public access to their long term<br />
pension needs.<br />
<br />
driven by the Company’s capability to originate retail and<br />
wholesale assets against collateral of property through its<br />
distribution network and scaling up of gold loan portfolio<br />
through nationwide branches. The loan against securities<br />
book tends to be more volatile depending on capital<br />
market sentiment.<br />
The regulatory changes brought in the gold loan segment<br />
by way of reduction in LTV and clarity on auction process<br />
contributed to higher margin of safety of the loan portfolio<br />
and streamlining of the recovery and collection processes.<br />
A distinctive feature of the Company’s loan book has<br />
been the exceptional degree of its soundness. Despite<br />
a substantial expansion of the loan portfolio, gross nonperforming<br />
assets (NPAs) were contained at ` 459 mn<br />
as on 31st March 20<strong>13</strong>, constituting 0.49% of total loan<br />
portfolio. Net NPAs remained at 0.17% of the total loan<br />
portfolio.<br />
Public Issue of Debentures:<br />
During the year under review, your Company successfully<br />
completed the Public Offering of Unsecured Redeemable<br />
Non-Convertible Debentures (“NCDs”) aggregating to<br />
` 5,000 mn (the “Issue”) in the nature of subordinated debt<br />
to strengthen the capital adequacy. The issue received<br />
over whelming response from the public investors and was<br />
oversubscribed. These NCDs are listed and traded on the<br />
National Stock Exchange and Bombay Stock Exchange.<br />
Securitisation of Loan portfolio:<br />
During the year under review, your company securitised<br />
loan portfolio of ` 7,084 mn in compliance with the revised<br />
guidelines issued by RBI to NBFCs.<br />
Dividend<br />
During the year <strong>2012</strong>-<strong>13</strong>, your Company declared and paid<br />
interim dividend of ` 2.5 per equity share (face value of<br />
` <br />
of dividend payout (including dividend distribution tax and<br />
surcharge) was `<br />
Transfer to Reserve:<br />
During the year <strong>2012</strong>-<strong>13</strong>, the Company transferred ` 350<br />
<br />
as required under the provisions of Section 45 IC of The<br />
Reserve Bank of <strong>India</strong> Act, 1934.<br />
Deposits:<br />
The Company has not accepted any Deposits within the<br />
meaning of Section 58A of the Companies Act, 1956 and<br />
the Rules made there under.<br />
Risk Management and Internal Controls:<br />
Management of wide range of risks is an integral part<br />
of your Company’s business. Your Company has always<br />
remained very cautious while taking risks to ensure long<br />
term sustainability of your Company. Your Company has a<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
35
obust and integrated Risk Management system to ensure<br />
<br />
aggregated, mitigated and monitored effectively.<br />
Your Company has Risk Management Committee in<br />
<br />
the Company. The Company has put in place policies<br />
and standard operating procedures for each segment<br />
of lending business. All the loan proposals are routed<br />
through a very stringent risk assessment process. Team<br />
<br />
proposals at various stages and during the assessment<br />
process all the relevant information from formal and<br />
informal channels are collected to arrive at an appropriate<br />
decision. Further, the credit proposals are considered<br />
and approved by the multi level Credit and Investment<br />
Committees consisting of directors of the board / HODs.<br />
Your Company’s internal policies are more conservative<br />
and stringent than the minimum regulatory requirement.<br />
Your Company also follows best industry practices in<br />
the area of risk management to reduce the possibility<br />
of losses. For portfolio risk management, various caps<br />
are stipulated based on company’s risk appetite. Your<br />
<br />
ensure that concentration risk in terms of single borrower,<br />
group, industry and geography can be mitigated.<br />
Your Company keeps close track of macro economic<br />
development including changes and its impact on<br />
movement in interest rate, foreign exchange rate and<br />
liquidity position in the market. Your Company has Asset<br />
Liability Management Committee (ALCO) and Board Level<br />
Supervisory Asset-Liability Committee in place, which<br />
periodically reviews SBR, borrowing mix, liquidity, funding,<br />
<br />
lenders and product mix coupled with prudent lending<br />
practices ensure that adequate funding is made available<br />
to your Company at all times. For managing operational risk,<br />
<br />
policies and procedures in alignment of your Company’s<br />
business and needs. It is continuously monitored through<br />
effective control system. Checks and balances are in<br />
<br />
<br />
external communication system, your Company ensures<br />
that prompt action is taken in case of need to minimize the<br />
losses. To minimize losses from information security risk,<br />
your Company focuses on up gradation of IT infrastructure<br />
in line with the best emerging practices.<br />
The Company has invested in ensuring that its<br />
internal audit and control systems are adequate and<br />
commensurate with the nature of our business and the size<br />
of our operations. The Company has retained a reputed<br />
<br />
The Company also had in state a few specialized Audit<br />
<br />
critical functions such as KYC process, branches audits,<br />
and loan documentations audits etc. The Company also<br />
<br />
<br />
The internal team undertakes special situation audits<br />
and follows up on implementation of Internal Auditors’<br />
recommendations. Besides this the company engages<br />
specialists/consultants to undertake certain focused<br />
areas such as credit audit, vigilance audits etc. The<br />
<br />
/ implementations are reviewed by the top management<br />
and Audit Committee at regular intervals. The internal<br />
processes have been designed to ensure adequate<br />
checks and balances at every stage. The Company also<br />
<br />
by regulatory authorities and the reports are submitted to<br />
the regulators periodically.<br />
Corporate Governance:<br />
The Company has fully complied with the Corporate<br />
Governance Guidelines for NBFCs issued by Reserve<br />
Bank of <strong>India</strong> vide circular No.DNBS(PD) CC No.<br />
94/03.10.042/2006-07 dated May 8, 2007. In accordance<br />
with the said Corporate Governance Guidelines, the<br />
Company has put in place the following committees and<br />
ensures best corporate practices to increase the investors<br />
<br />
complied with all the norms prescribed by the Reserve<br />
Bank of <strong>India</strong> (RBI) including the Fair practices, Anti money<br />
laundering & know your customer (KYC) guidelines.<br />
Audit Committee:<br />
As per the requirements of section 292A of the Companies<br />
36<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Act, 1956, and the Company has constituted an Audit<br />
Committee comprising of following Directors:<br />
a) Mr. Nilesh Vikamsey (Chairman and Independent<br />
Director)<br />
b) Mr. M N Singh (Independent Director)<br />
c) Mr. Sunil Kaul (Non Executive Director)<br />
Nomination Committee<br />
a) Mr. M N Singh (Independent Director)<br />
b) Mr. Nilesh Vikamsey (Independent Director)<br />
c) Mr. Nirmal Jain (Director)<br />
d) Mr. R Venkataraman (Director)<br />
Risk Management Committee<br />
a) Mr. Sunil Kaul (Non Executive Director)<br />
b) Mr. Nilesh Vikamsey (Independent Director)<br />
c) Mr. Nirmal Jain (Director)<br />
d) Mr. V K Chopra (Independent Director)<br />
<br />
Assets and Liabilities Committee<br />
a) Mr. Sunil Kaul (Non Executive Director)<br />
b) Mr. Nirmal Jain (Director)<br />
c) Mr. V. K. Chopra (Independent Director)<br />
<br />
All the above Committees regularly meet and review the<br />
policies and status.<br />
Your Company is broadly complying with the requirements<br />
of the Corporate Governance Voluntary Guidelines, 2009<br />
issued by the Ministry of Corporate Affairs, Government<br />
of <strong>India</strong> and is in the process of implementing other<br />
suggestions.<br />
Regulatory Compliance:<br />
The Company has complied with all the applicable<br />
guidelines prescribed by RBI for NBFCs regarding<br />
accounting standards, prudential norms including<br />
income recognition, capital adequacy, and guidelines on<br />
Corporate Governance etc.<br />
Capital Adequacy:<br />
As a result of the increased leveraging, your Company<br />
had Capital to Risk Assets Ratio (CRAR) of 21.60% as on<br />
March 31, 20<strong>13</strong>, which was well above the minimum CRAR<br />
of 15% prescribed by the Reserve Bank of <strong>India</strong>.<br />
Directors:<br />
In accordance with the provisions of Section 255 and 256<br />
of the Companies Act, 1956 and in terms of applicable<br />
provisions of the Articles of Association of the Company,<br />
Mr. Nilesh Vikamsey and Mr. R. Venkataraman, Directors<br />
of the Company retire by rotation and being eligible, offer<br />
themselves for re-appointment.<br />
<br />
Director resigned from the Board of your Company.<br />
Your Directors place on record their appreciation for<br />
the valuable services rendered by Mr. Purwar and the<br />
guidance received from him during his tenure as the<br />
<br />
to her retirement from the services as Whole Time Director<br />
& CEO.<br />
Mr. V K Chopra and Mr. Mukesh Kumar Singh have<br />
been appointed as Additional Directors of the Company<br />
designated as Non Executive Chairman and Executive<br />
Director respectively. As per the provisions of Section 260<br />
of the Act, Mr. Chopra and Mr. Singh holds the position<br />
till the date of ensuing <strong>Annual</strong> General Meeting of the<br />
Company. The Company has received notice in writing<br />
from a member under Section 257 of the Act, proposing<br />
appointment of Mr. Chopra and Mr. Singh as Directors of<br />
the Company. The proposal to appoint Mr. Chopra and<br />
Mr. Singh as Directors of the Company is recommended<br />
for shareholders’ approval.<br />
Directors’ Responsibility Statement:<br />
As required under the Section 217(2AA) of the Companies<br />
Act, 1956, your Directors declare and certify that: -<br />
(a) in the preparation of the annual accounts, the<br />
applicable accounting standards, have been followed<br />
(b) the Board of Directors have selected the accounting<br />
policies and applied them consistently and made<br />
judgments and estimates that are reasonable and<br />
prudent so as to give a true and fair view of the state of<br />
<br />
<br />
<br />
care for the maintenance of adequate accounting<br />
records in accordance with the provisions of the<br />
Companies Act, 1956 for safeguarding the assets of<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> |<br />
37
the company and preventing and detecting fraud and<br />
other irregularities.<br />
(d) the Board of Directors have prepared the annual<br />
accounts on a going concern basis<br />
Auditors:<br />
Messrs Sharp & Tannan Associates, Chartered<br />
Accountants, Statutory Auditors of the Company retire at<br />
the conclusion of the ensuing <strong>Annual</strong> General Meeting<br />
and being eligible offers themselves for re-appointment.<br />
<br />
Messrs Sharp & Tannan Associates, to the effect that they<br />
are eligible to be appointed as the Statutory Auditors of<br />
the Company.<br />
Your Board and Audit Committee recommend appointment<br />
of Messrs Sharp & Tannan Associates as the Statutory<br />
<br />
General Meeting to the next <strong>Annual</strong> General Meeting.<br />
Subsidiaries:<br />
As on March 31, 20<strong>13</strong>, the Company has one subsidiary,<br />
namely <strong>India</strong> <strong>Infoline</strong> Housing <strong>Finance</strong> <strong>Limited</strong>.<br />
Pursuant to the general exemption granted by the Ministry<br />
of Corporate Affairs vide circular dated February 8, 2011,<br />
the Board of Directors had at their meeting held on May,<br />
<br />
of all the subsidiaries of the Company along with that of<br />
<br />
Loss Account, and <strong>Report</strong> of the Board of Directors and<br />
<strong>Report</strong> of the Auditors of each of the subsidiary Companies<br />
are not attached to the accounts of the Company for<br />
<br />
these documents/details upon request by any member<br />
of the Company. These documents/details will also be<br />
available for inspection by any member of the Company<br />
<br />
of the concerned subsidiaries. As required by Accounting<br />
Standard - 21 (AS-21) issued by the Institute of Chartered<br />
<br />
statements included in this <strong>Annual</strong> <strong>Report</strong> incorporates the<br />
<br />
of the Company’s subsidiaries is also included in this<br />
<strong>Annual</strong> <strong>Report</strong>.<br />
Conservation of Energy, Technology<br />
Absorption and Foreign Exchange Earnings<br />
and Outgo:<br />
The Disclosure of Information on Conservation of Energy,<br />
Technology Absorption etc, required to be disclosed in<br />
terms of Section 217 (I) (e) of the Companies Act, 1956<br />
read with the Companies (Disclosure of Particulars in the<br />
<strong>Report</strong> of the Board of Directors) Rules, 1988 have not been<br />
<br />
industry, and has not carried on any manufacturing activity.<br />
The operations of the Company are not energy intensive.<br />
However, it is the policy of the management to keep itself<br />
<br />
the Company is operating and to ensure that the Company<br />
uses the most suitable technology.<br />
The Company had no foreign exchange earnings and<br />
outgo during the year.<br />
Particulars of Employees:<br />
There are no employees who are in receipt of remuneration<br />
<br />
Section 217(2A) of the Companies Act, 1956, read with<br />
Companies (Particulars of Employees) Rules, 1975.<br />
Acknowledgements:<br />
Your Directors take this opportunity to thank the Reserve<br />
Bank of <strong>India</strong>, Banks and Financial Institutions and other<br />
stakeholders for their continued support and assistance<br />
during the period under review. Your Directors would also<br />
like to thank the employees for their dedication towards the<br />
growth of the Company.<br />
For and on behalf of the Board<br />
Place: Singapore<br />
Dated: May 10, 20<strong>13</strong><br />
V K Chopra<br />
Non Executive Chairman<br />
38<br />
| <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Independent Auditor’s <strong>Report</strong><br />
To the Members of<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<strong>Report</strong> on the Financial Statements<br />
<br />
<br />
st <br />
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<br />
<br />
Management’s Responsibility for the Financial Statements<br />
<br />
<br />
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Auditor’s Responsibility<br />
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in order to design audit procedures that are appropriate<br />
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Opinion<br />
In our opinion and to the best of our information and according<br />
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<strong>Report</strong> on Other Legal and Regulatory Requirements<br />
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Sharp & Tannan Associates<br />
Chartered Accountants<br />
<br />
by the hand of<br />
Tirtharaj Khot<br />
<br />
Partner<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 39
Annexure to the Auditors’ <strong>Report</strong><br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
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contracts or arrangements that need to be entered<br />
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in pursuance of such contracts or arrangements<br />
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the maintenance of cost records has not been prescribed<br />
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40<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
` <br />
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<br />
<br />
Status<br />
<br />
<br />
<br />
<br />
<br />
`<br />
<br />
<br />
<br />
is pending<br />
<br />
eal<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
records of transactions and contracts in respect of its<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
shares to parties and companies covered in the register<br />
<br />
<br />
<br />
<br />
<br />
has created security in respect of debentures issued<br />
<br />
st ` <br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
year there have been certain instances of fraud on the<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Sharp & Tannan Associates<br />
Chartered Accountants<br />
<br />
by the hand of<br />
Tirtharaj Khot<br />
<br />
Partner<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 41
Standalone Balance Sheet <br />
`<br />
Particulars Note No. As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
I. EQUITY AND LIABILITIES<br />
(1) Shareholders' funds<br />
<br />
<br />
- -<br />
Sub-Total 15,383,327,090 14,324,901,167<br />
(2) Share application money pending allotment - -<br />
(3) Non-Current Liabilities<br />
<br />
- -<br />
- -<br />
<br />
Sub-Total 42,946,458,486 31,598,756,071<br />
(4) Current liabilities<br />
<br />
- -<br />
<br />
<br />
<br />
- Others <br />
<br />
Sub-Total 51,210,697,786 30,216,805,459<br />
TOTAL 109,540,483,362 76,140,462,697<br />
II ASSETS<br />
(1) Non-current assets<br />
(a) Fixed assets<br />
<br />
<br />
<br />
- -<br />
- -<br />
Sub-Total 983,639,530 711,979,672<br />
<br />
<br />
<br />
<br />
<br />
- Others <br />
<br />
Sub-Total 34,899,462,761 27,335,623,254<br />
(2) Current assets<br />
<br />
<br />
- -<br />
<br />
<br />
<br />
<br />
- Others <br />
<br />
Sub-Total 73,657,381,071 48,092,859,771<br />
TOTAL 109,540,483,362 76,140,462,697<br />
<br />
<br />
<br />
For Sharp & Tannan Associates <br />
Chartered Accountants<br />
<br />
<br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
<br />
<br />
<br />
42<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Statement of Profit & Loss <br />
`<br />
Particulars Note No. <strong>2012</strong>-<strong>13</strong> 2011-12<br />
INCOME<br />
<br />
Other Income <br />
Total Revenue 16,939,821,901 9,103,697,426<br />
EXPENDITURE<br />
20 <br />
<br />
22 <br />
<br />
<br />
Total Expenses 14,398,560,725 7,663,708,144<br />
2,541,261,176 1,439,989,282<br />
<br />
<br />
<br />
<br />
Total tax expense 793,769,396 421,477,846<br />
1,747,491,780 1,018,511,436<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
For Sharp & Tannan Associates <br />
Chartered Accountants<br />
<br />
<br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
<br />
<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 43
Standalone Cash Flow Statement <br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
CASH FLOWS FROM OPERATING ACTIVITIES<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
3,211,000,716 1,831,749,670<br />
- -<br />
<br />
<br />
<br />
- -<br />
- -<br />
<br />
<br />
advances<br />
<br />
<br />
<br />
advances<br />
<br />
<br />
<br />
<br />
Cash generated from operations (21,851,146,151) (30,824,766,092)<br />
<br />
Net cash from operating activities (A) (22,774,550,869) (31,390,114,106)<br />
CASH FLOWS FROM INVESTING ACTIVITIES<br />
<br />
<br />
advances<br />
<br />
<br />
- -<br />
<br />
- -<br />
<br />
- -<br />
<br />
- <br />
Net cash from investing activities (B) (2,587,767,884) (3,716,411,458)<br />
44<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Cash Flow Statement <br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
CASH FLOWS FROM FINANCING ACTIVITIES<br />
-<br />
- -<br />
<br />
- -<br />
<br />
- -<br />
- -<br />
31,341,928,763 37,353,896,639<br />
Net increase in cash and cash equivalents (A + B + C) 5,979,610,010 2,247,371,075<br />
Opening Cash and cash equivalents<br />
2,560,231,039 312,859,962<br />
Closing Cash and cash equivalents<br />
<br />
<br />
<br />
<br />
<br />
<strong>India</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Cash & cash equivalent at the end of the year 8,539,841,049 2,560,231,039<br />
<br />
For Sharp & Tannan Associates <br />
Chartered Accountants<br />
<br />
<br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
<br />
<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 45
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 1. CORPORATE INFORMATION<br />
<br />
<br />
<br />
<br />
<br />
Note: 2. SIGNIFICANT ACCOUNTING POLICIES<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2.2 Prudential norms:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2.3 Use of estimates:<br />
<br />
<br />
<br />
<br />
2.4 Fixed assets and depreciation and amortisation:<br />
<br />
<br />
<br />
<br />
<br />
<br />
` <br />
<br />
Estimated useful life of the assets is as under:<br />
Class of assets<br />
Useful life in years<br />
20<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2.5 Assignment of loan portfolio:<br />
<br />
<br />
<br />
<br />
<br />
46<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
2.6 Revenue recognition:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2.7 Preliminary expenses:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2.9 Provisions, Contingent liabilities and Contingent assets<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2.10 Taxes on income:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
2.11 Operating Leases:<br />
<br />
<br />
2.12 Investments<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 47
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
2.<strong>13</strong> Inventories:<br />
<br />
2.14 Earnings Per Share:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Note: 3. SHARE CAPITAL<br />
`<br />
Particulars<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
Authorised Share Capital<br />
` <br />
` <br />
` <br />
` <br />
Total 3,200,000,000 3,200,000,000<br />
Issued, Subscribed and Paid-up share capital<br />
` <br />
<br />
Total 2,371,540,300 2,371,540,300<br />
(i) Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
` `<br />
<br />
- - - -<br />
- - - -<br />
Outstanding at the end of the period <br />
(ii) Rights attached to equity shares<br />
`<br />
<br />
(iii) Details of shareholders holding more than 5% shares in the Company<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
<br />
Equity shares of `10 each fully paid<br />
<br />
(iv) Aggregate number of bonus share issued, share issue for consideration other than cash and shares bought back during<br />
<br />
Particulars March 31, 20<strong>13</strong><br />
<br />
March 31, <strong>2012</strong><br />
<br />
March 31, 2011<br />
<br />
March 31, 2010<br />
<br />
March 31, 2009<br />
<br />
- - - -<br />
<br />
<br />
48<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 4. RESERVES AND SURPLUS<br />
`<br />
Particulars<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
Securities Premium Reserve<br />
<br />
- -<br />
<br />
- -<br />
<br />
Closing balance 8,657,487,836 8,657,487,836<br />
General Reserve<br />
<br />
-<br />
Closing balance 263,000,000 83,000,000<br />
Special Reserve<br />
<br />
- <br />
<br />
Closing balance 1,050,000,000 700,000,000<br />
Debenture Redemption Reserve<br />
-<br />
<br />
Closing balance 850,000,000 630,000,000<br />
<br />
<br />
<br />
- <br />
Less: Appropriations<br />
-<br />
-<br />
<br />
-<br />
<br />
Closing balance 2,191,298,954 1,882,873,031<br />
Total <strong>13</strong>,011,786,790 11,953,360,867<br />
Note: 5. LONG TERM BORROWINGS<br />
`<br />
Particulars Non-current portion Current maturities<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Secured<br />
<br />
<br />
<br />
<br />
<br />
Sub-Total 35,747,512,959 29,898,052,667 14,000,192,272 6,407,741,851<br />
Unsecured<br />
- -<br />
- - <br />
Sub-Total 6,970,914,056 1,539,149,056 - -<br />
Total 42,718,427,015 31,437,201,723 - -<br />
` ` <br />
<br />
``<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 49
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 5.1. TERM LOANS FROM BANKS - SECURED:<br />
`<br />
Maturities<br />
Non current<br />
As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
1-3 years 3 years &<br />
Total 1-3 years 3 years &<br />
Total<br />
above<br />
above<br />
Rate of interest *<br />
- - - - - -<br />
- - -<br />
<br />
Total 18,831,576,309 7,409,816,650 26,241,392,959 16,879,166,667 4,250,000,000 21,129,166,667<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
- -<br />
` <br />
- -<br />
` <br />
- -<br />
` <br />
- -<br />
` <br />
- -<br />
` <br />
- -<br />
` <br />
<br />
- -<br />
` <br />
- -<br />
` <br />
<br />
- -<br />
` <br />
<br />
- -<br />
` <br />
<br />
- -<br />
` <br />
<br />
` <br />
<br />
- -<br />
50<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED (contd.)<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
- -<br />
` <br />
<br />
<br />
- -<br />
` <br />
<br />
<br />
- -<br />
` <br />
<br />
<br />
- -<br />
` <br />
<br />
<br />
- - -<br />
` <br />
<br />
<br />
- -<br />
` <br />
<br />
`<br />
- -<br />
<br />
<br />
- - -<br />
` <br />
<br />
<br />
- -<br />
` <br />
<br />
- - - <br />
` <br />
<br />
<br />
- - - <br />
` <br />
<br />
<br />
- - - <br />
` <br />
<br />
<br />
- - - <br />
` <br />
<br />
<br />
- - - <br />
` <br />
<br />
`<br />
- - - <br />
<br />
`<br />
- - - <br />
<br />
<br />
- - - <br />
` <br />
<br />
` - - -<br />
<br />
`<br />
<br />
- - -<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 51
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED (contd.)<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
- - -<br />
` <br />
<br />
Total 9,506,120,000 8,768,886,000 978,600,000 1,329,000,000<br />
<br />
<br />
` ` <br />
` ` <br />
<br />
<br />
<br />
` ` <br />
<br />
52<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 5.3. NON CONVERTIBLE DEBENTURES – UNSECURED<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
- -<br />
` <br />
<br />
` <br />
- -<br />
<br />
- -<br />
` <br />
<br />
` <br />
- -<br />
<br />
` - -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
<br />
- -<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 53
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 5.3. NON CONVERTIBLE DEBENTURES – UNSECURED (contd.)<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- -<br />
<br />
<br />
` <br />
- - -<br />
<br />
<br />
` <br />
- - -<br />
<br />
` <br />
- - -<br />
<br />
` <br />
- - -<br />
` - - -<br />
<br />
` - - -<br />
<br />
` - - -<br />
<br />
Total 6,970,914,056 1,539,149,056 - -<br />
<br />
` <br />
<br />
<br />
<br />
<br />
<br />
Note: 6. PROVISIONS<br />
`<br />
Particulars Short-term Long-term<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
-<br />
- -<br />
Provision – Others<br />
- - <br />
- -<br />
Total 228,945,588 299,5<strong>13</strong>,279 228,031,471 161,554,348<br />
54<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 7. SHORT – TERM BORROWINGS<br />
`<br />
Particulars<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
Secured<br />
<br />
- <br />
Sub-Total 2,501,681,081 2,489,362,175<br />
Unsecured<br />
- <br />
- -<br />
<br />
Sub-Total 30,995,000,000 17,850,000,000<br />
Total 33,496,681,081 20,339,362,175<br />
<br />
<br />
<br />
Note: 8. OTHER CURRENT LIABILITIES<br />
Particulars<br />
As at<br />
March 31, 20<strong>13</strong><br />
`<br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
Sub-Total 14,000,192,272 6,407,741,851<br />
Others<br />
<br />
- <br />
<br />
<br />
<br />
<br />
<br />
Income received in advance <br />
<br />
<br />
<br />
Others <br />
Sub-Total 3,484,878,845 3,170,188,154<br />
Total 17,485,071,117 9,577,930,005<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 55
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 9. TANGIBLE ASSETS<br />
`<br />
Particulars Air Conditioner Computer Electrical Furniture And Premises<br />
Total<br />
Equipment Fixture Equipment<br />
<br />
<br />
- <br />
- <br />
during the year<br />
As at March 31,20<strong>13</strong> 74,539,783 <strong>13</strong>3,2<strong>13</strong>,454 321,051,405 712,201,810 237,491,806 145,000 1,478,643,258<br />
Depreciation<br />
<br />
<br />
- <br />
during the year<br />
<br />
Net Block as at March 49,796,452 65,206,093 223,461,944 459,606,069 165,770,955 106,939 963,948,452<br />
31,20<strong>13</strong><br />
Net Block as at March<br />
31,<strong>2012</strong><br />
29,928,374 70,437,856 145,776,909 320,546,401 <strong>13</strong>2,803,753 114,189 699,607,482<br />
Note: 10. INTANGIBLE ASSETS<br />
`<br />
<br />
<br />
<br />
<br />
<br />
-<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
-<br />
<br />
<br />
Net Block as at March 31, 20<strong>13</strong> 105,849<br />
<br />
<br />
Note: 11. NON – CURRENT INVESTMENTS<br />
Particulars<br />
Face Value<br />
in `<br />
Unquoted, Trade, Long Term (valued at cost)<br />
Investment in Subsidiaries<br />
Equity Shares<br />
`<br />
As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Number Amount Number Amount<br />
<br />
- - <br />
Preference Shares<br />
<br />
Sub-Total 1,305,000,000 1,390,126,000<br />
56<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
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Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 11. NON – CURRENT INVESTMENTS<br />
Particulars<br />
Unquoted, Non-Trade, Long Term (Valued<br />
at cost)<br />
<br />
<br />
Face<br />
Value in `<br />
`<br />
As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Number Amount Number Amount<br />
- - <br />
<br />
Sub-Total 105,211,200 490,211,200<br />
Debentures and Bonds - for Financing Real<br />
Estate Projects<br />
<br />
- - <br />
- - <br />
- - <br />
- - <br />
- - <br />
<br />
- - <br />
- - <br />
<br />
<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- - <br />
- - <br />
<br />
<br />
- - <br />
Sub-Total 3,743,543,838 2,539,8<strong>13</strong>,104<br />
Total 5,153,755,038 4,420,150,304<br />
Unquoted, Non-Trade, Long Term (Valued<br />
at cost)<br />
<br />
<br />
- -<br />
Sub-Total 44,800,000 -<br />
Total 5,198,555,038 4,420,150,304<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 57
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 12.<br />
<br />
<br />
<br />
Deferred Tax Assets<br />
`<br />
Particulars<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
<br />
<br />
-<br />
-<br />
Total 309,992,706 115,410,103<br />
Note: <strong>13</strong>. LOANS & ADVANCES<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
Loans & Advances<br />
<br />
<br />
<br />
Sub-Total 28,336,738,375 20,081,837,461 55,950,028,829 39,526,189,298<br />
Others loans & advances<br />
<br />
- - <br />
- - <br />
- - <br />
- -<br />
<br />
- - -<br />
- -<br />
<br />
- -<br />
` ` <br />
Unsecured<br />
Sub-Total 584,163,858 2,3<strong>13</strong>,068,575 4,172,429,799 2,496,027,798<br />
Total 28,920,902,233 22,394,906,036 60,122,458,628 42,022,217,096<br />
Note: 14. OTHER ASSETS<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
- -<br />
<br />
- - <br />
- - <br />
- - - -<br />
- - <br />
Others - - <br />
Total 470,012,784 405,156,811 1,033,786,964 654,392,857<br />
58<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
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Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 15. CURRENT INVESTMENTS<br />
Particulars<br />
Face<br />
Value in `<br />
`<br />
As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Number Amount Number Amount<br />
Unquoted , Non - Trade , Current (valued at<br />
<br />
Mutual Funds<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- - <br />
Sub-Total 1,550,000,000 360,000,000<br />
Non convertible Debentures<br />
- For Financing Real Estate Projects<br />
- -<br />
- <br />
<br />
- - <br />
- - <br />
- - <br />
<br />
- - <br />
- - <br />
<br />
- - - -<br />
- -<br />
- -<br />
- -<br />
- -<br />
- -<br />
<br />
Sub-Total 1,979,694,722 2,681,925,944<br />
- Others<br />
-<br />
<br />
<br />
-<br />
Sub-Total 110,078,328 -<br />
Quoted, Trade, Long Term (valued at cost)<br />
<br />
-<br />
Sub-Total 600,000,000 -<br />
Total 4,239,773,050 3,041,925,944<br />
<br />
<br />
-<br />
-<br />
-<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 59
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 16. INVENTORIES <br />
`<br />
Particulars<br />
Face As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Value Number Amount Number Amount<br />
Options *<br />
Strike Price<br />
- - <br />
- - <br />
- - <br />
- - <br />
- - <br />
- - <br />
- - <br />
<br />
<br />
<br />
<br />
Sub-Total 22,644,763 60,660,804<br />
Non convertible Debentures *<br />
<br />
<br />
Sub-Total 47,300,000 107,386,579<br />
Total 69,944,763 107,386,579<br />
<br />
-Quoted<br />
<br />
<br />
<br />
Note: 17. CASH AND BANK BALANCES<br />
`<br />
Particulars Non-current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
- - <br />
- - <br />
<br />
- -<br />
Total - - 8,191,417,666 2,266,937,295<br />
Note: 18. REVENUE FROM OPERATIONS<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
<br />
<br />
<br />
Total 16,145,199,542 8,681,269,848<br />
Note: 19. OTHER INCOME<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
<br />
<br />
<br />
<br />
<br />
Total 794,622,359 422,427,578<br />
60<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
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Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 20. EMPLOYEE BENEFIT EXPENSES<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
<br />
<br />
<br />
<br />
Total 1,774,047,530 1,044,389,882<br />
<br />
<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Assumptions<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
- <br />
<br />
Liability at the end of the year 28,712,452 14,403,636<br />
Amount Recognised in the Balance Sheet<br />
<br />
<br />
<br />
(25,285,550) 9,943,919<br />
Expenses Recognised in the Income statement<br />
- -<br />
<br />
<br />
<br />
- -<br />
<br />
Expense Recognised in P&L 15,452,316 11,092,286<br />
Balance Sheet reconciliation<br />
<br />
<br />
-<br />
<br />
- <br />
25,285,550 9,943,919<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 61
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 21. FINANCE COST<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
<br />
<br />
Total 8,616,579,159 4,616,534,404<br />
Note: 22. DEPRECIATION AND AMORTISATION EXPENSES<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
<br />
<br />
Total 339,856,186 149,597,434<br />
Note: 23. OTHER EXPENSES<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
- -<br />
- Others <br />
<br />
<br />
<br />
<br />
<br />
<br />
-<br />
Total 3,348,974,534 1,599,077,846<br />
Note: 24. PROVISIONS AND WRITE OFF<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
<br />
<br />
<br />
<br />
<br />
Total 319,093,316 254,108,578<br />
62<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 25. <br />
<br />
`<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
BASIC<br />
<br />
<br />
EPS <br />
DILUTED<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
EPS <br />
Note: 26.<br />
`<br />
Sr. No. Name of the Statute<br />
As at<br />
As at<br />
March 31, 20<strong>13</strong> March 31, <strong>2012</strong><br />
<br />
<br />
Total 282,159,388 120,623,161<br />
Note: 27.<br />
` <br />
` <br />
Note: 28.<br />
<br />
<br />
<br />
<br />
<br />
`<br />
Minimum Lease Rentals<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
Up to one year <br />
<br />
Total 59,494,053 50,538,736<br />
Note: 29.<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 63
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 30. SEGMENT REPORTING<br />
<br />
<br />
<br />
<br />
<br />
Note: 31.<br />
<br />
Note: 32. RETURN ON ASSETS<br />
<br />
Note: 33.<br />
` ` <br />
` <br />
<br />
Note: 34.<br />
<br />
Note: 35. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES<br />
Nature of relationship<br />
Name of party<br />
<br />
Holding company<br />
<br />
Direct Subsidiaries<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
64<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
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Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 35. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES (contd.)<br />
Nature of relationship<br />
Name of party<br />
Group Companies<br />
Key Management Personnel<br />
Other related parties:<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Subsidiaries<br />
<br />
<br />
<br />
Subsidiaries<br />
Key<br />
Management<br />
<br />
`<br />
Interest Income - - <br />
- - - <br />
- - <br />
- <br />
Service charges Income - - - - <br />
- - - - <br />
<br />
<br />
- - - <br />
- - - - <br />
- - - - - -<br />
<br />
- - - - <br />
Income<br />
- - - - - -<br />
- - - - <br />
- - - - - -<br />
- - - <br />
- - - - <br />
- - - <br />
- - - <br />
- - - <br />
- - - - - -<br />
<br />
- - - - - -<br />
<br />
<br />
- - - - <br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 65
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 35. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES (contd.)<br />
(contd.)<br />
<br />
<br />
<br />
<br />
Subsidiaries<br />
<br />
<br />
<br />
Subsidiaries<br />
Key<br />
Management<br />
<br />
`<br />
<br />
- - - - <br />
<br />
- - - - <br />
- - - - <br />
- - - - <br />
- - - - <br />
- - - - - -<br />
- - - - <br />
- - - - - -<br />
<br />
- - <br />
<br />
- - <br />
- - <br />
<br />
- - <br />
<br />
<br />
c) Closing balance `<br />
<br />
<br />
<br />
Subsidiaries<br />
<br />
<br />
<br />
Subsidiaries<br />
Key<br />
Management<br />
<br />
<br />
- - - - - -<br />
- - - - - -<br />
- - - - - -<br />
- - - - <br />
<br />
Note: 36. <br />
ISSUED BY RESERVE BANK OF INDIA<br />
a. Capital Adequacy Ratio<br />
Items<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
<br />
<br />
b. Exposure to Real Estate ` in lacs<br />
Items<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
<br />
<br />
<br />
` <br />
` <br />
66<br />
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Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 36. <br />
ISSUED BY RESERVE BANK OF INDIA (contd.)<br />
b. Exposure to Real Estate (contd.) ` in lacs<br />
Items<br />
<br />
<br />
-<br />
<br />
<br />
<br />
As at<br />
March 31, 20<strong>13</strong><br />
<br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
c. Maturity pattern of certain items of assets and liabilities ` in lacs<br />
Liabilities<br />
Assets<br />
Market Advances Investments<br />
banks <br />
<br />
Over one to 2 months - -<br />
<br />
<br />
<br />
<br />
<br />
<br />
Total 417,646 484,506 901,987 94,383<br />
Note: 37. ASSET CLASSIFICATION<br />
` in lacs<br />
Outstanding Balance Provision<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
` ` <br />
<br />
<br />
` <br />
<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 67
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 38. Particulars as per RBI Directions (as required in terms of paragraph <strong>13</strong> of Non-Banking Financial(Non-Deposit<br />
Accepting or Holding)Companies Prudential Norms(Reserve Bank)Directions 2007).<br />
` in lacs<br />
Liabilities Side: Amount Outstanding Amount Overdue<br />
<br />
<br />
<br />
Secured <br />
<br />
<br />
<br />
<br />
<br />
<br />
` in lacs<br />
Assets Side:<br />
Amount Outstanding<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
-<br />
-<br />
<br />
-<br />
-<br />
<br />
-<br />
-<br />
<br />
<br />
<br />
<br />
-<br />
-<br />
-<br />
<br />
<br />
<br />
<br />
-<br />
<br />
<br />
<br />
-<br />
<br />
<br />
-<br />
-<br />
-<br />
<br />
<br />
<br />
-<br />
-<br />
-<br />
68<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
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Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 38. Particulars as per RBI Directions (as required in terms of paragraph <strong>13</strong> of Non-Banking Financial(Non-Deposit<br />
Accepting or Holding)Companies Prudential Norms(Reserve Bank)Directions 2007). (contd.)<br />
Assets Side:<br />
` in lacs<br />
Amount Outstanding<br />
-<br />
-<br />
-<br />
-<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
-<br />
-<br />
<br />
<br />
<br />
` in lacs<br />
Category<br />
Amount net of provisions<br />
Secured Unsecured Total<br />
<br />
- - -<br />
- - -<br />
- - -<br />
<br />
Total 887,2<strong>13</strong> 3,221 890,434<br />
<br />
` in lacs<br />
Category<br />
Market<br />
<br />
value or NAV<br />
Book value (net of<br />
provisions)<br />
<br />
<br />
- -<br />
- -<br />
<br />
Total 94,475 94,383<br />
<br />
7. Other Information: ` in lacs<br />
Particulars<br />
Amount<br />
-<br />
-<br />
<br />
<br />
-<br />
-<br />
<br />
<br />
-<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 69
Standalone Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note: 39. <br />
<br />
Securitisation :<br />
`<br />
Particulars<br />
Amount<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
Gold PTC II Gold PTC III Gold PTC IV Total<br />
<br />
Subordinated Tranche <br />
<br />
<br />
<br />
<br />
Note: 40.<br />
<br />
<br />
<br />
For Sharp & Tannan Associates <br />
Chartered Accountants<br />
<br />
<br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
<br />
<br />
<br />
70<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Statement Relating to Subsidiary Company<br />
<br />
`<br />
<br />
<br />
<br />
<br />
2 <br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 71
Consolidated Financial Section<br />
72<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Independent Auditor’s <strong>Report</strong><br />
To the Board of Directors of<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong> (“the Company”)<br />
and its subsidiary, which comprise the consolidated balance<br />
sheet as at 31 st March 20<strong>13</strong>, the consolidated statement of<br />
<br />
<br />
policies and other explanatory information.<br />
Management’s Responsibility for the Consolidated Financial<br />
Statements<br />
Management is responsible for the preparation of these<br />
<br />
<br />
<br />
the Company in accordance with accounting principles<br />
generally accepted in <strong>India</strong>. This responsibility includes<br />
the design, implementation and maintenance of internal<br />
control relevant to the preparation and presentation of the<br />
<br />
view and are free from material misstatement, whether due<br />
to fraud or error.<br />
Auditor’s Responsibility<br />
Our responsibility is to express an opinion on these<br />
<br />
conducted our audit in accordance with the Standards on<br />
Auditing issued by the Institute of Chartered Accountants of<br />
<strong>India</strong>. Those Standards require that we comply with ethical<br />
requirements and plan and perform the audit to obtain<br />
reasonable assurance about whether the consolidated<br />
<br />
An audit involves performing procedures to obtain audit<br />
evidence about the amounts and disclosures in the<br />
<br />
depend on the auditor’s judgment, including the assessment<br />
of the risks of material misstatement of the consolidated<br />
<br />
those risk assessments, the auditor considers internal control<br />
relevant to the Company’s preparation and fair presentation<br />
<br />
audit procedures that are appropriate in the circumstances.<br />
An audit also includes evaluating the appropriateness of<br />
accounting policies used and the reasonableness of the<br />
accounting estimates made by management, as well as<br />
evaluating the overall presentation of the consolidated<br />
<br />
We believe that the audit evidence we have obtained is<br />
<br />
opinion.<br />
Opinion<br />
In our opinion and to the best of our information and<br />
according to the explanations given to us, the consolidated<br />
<br />
with the accounting principles generally accepted in <strong>India</strong>:<br />
(i)<br />
in the case of the consolidated balance sheet, of the<br />
state of affairs of the Company as at 31 st March 20<strong>13</strong>;<br />
<br />
<br />
<br />
<br />
For Sharp & Tannan Associates<br />
Chartered Accountants<br />
ICAI Registration No. 109983W<br />
By the hand of<br />
Tirtharaj Khot<br />
Place: Singapore<br />
Partner<br />
Date: May 10, 20<strong>13</strong> Membership No.: (F) 037457<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 73
Consolidated Balance Sheet as at March 31, 20<strong>13</strong><br />
(Amount in `)<br />
Particulars Note No As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
I) EQUITY AND LIABILTIES<br />
(1) Shareholders’ funds<br />
(a) Share Capital 3 2,371,540,300 2,371,540,300<br />
(b) Reserve and Surplus 4 <strong>13</strong>,272,331,630 12,076,238,066<br />
(c) Money received against share warrants - -<br />
Sub-Total 15,643,871,930 14,447,778,366<br />
2) Share application money pending allotment - -<br />
(3) Non Current Liabilities<br />
(a) Long-term borrowings 5 43,368,427,015 32,237,201,723<br />
(b) Deferred tax liabilties (Net) - -<br />
(c) Other Long-term liabilities - -<br />
(d) Long-term provisions 6 251,646,335 177,815,344<br />
Sub-Total 43,620,073,350 32,415,017,067<br />
(4) Current liabilities<br />
(a) Short-term borrowings 7 34,496,681,081 20,339,362,175<br />
(b) Trade payables<br />
(c) Other current liabilities 8<br />
-Borrowings 14,400,192,272 6,807,741,851<br />
-Others 3,651,917,099 3,486,559,736<br />
(d) Short-term provisions 6 237,764,992 302,055,931<br />
Sub-Total 52,786,555,444 30,935,719,693<br />
TOTAL - EQUITY AND LIABILITIES 112,050,500,724 77,798,515,126<br />
II) ASSETS<br />
(1) Non-current assets<br />
(a) Fixed assets<br />
(i) Tangible assets 9 963,948,452 699,607,482<br />
(ii) Intangible assets 10 105,849 224,876<br />
(iii) Goodwill (on Consolidation) 1,750,000 16,421,955<br />
(iii) Capital work-in-progress 19,585,229 12,147,314<br />
(iv) Intangible assets under development -<br />
Sub-Total 985,389,530 728,401,627<br />
(b) Non-current investments 11 3,893,555,038 3,030,024,304<br />
(c) Deferred tax assets (Net) 12 314,374,627 126,125,349<br />
(d) Long-term loans & advances <strong>13</strong><br />
-Loans 31,580,685,984 22,492,742,411<br />
-Others 584,176,108 2,333,126,355<br />
(e) Other non-current assets 14 579,912,932 515,308,280<br />
Sub-Total 36,952,704,689 28,497,326,699<br />
(2) Current assets<br />
(a) Current investments 15 4,369,773,050 3,041,925,944<br />
(b) Inventories 16 69,944,763 107,386,579<br />
(c) Trade receivables - -<br />
(d) Cash and bank balances 17 8,205,029,537 2,537,445,412<br />
(e) Short-term loans & advances <strong>13</strong><br />
-Loans 56,151,805,672 39,644,339,571<br />
-Others 4,257,531,463 2,582,322,011<br />
(f) Other current assets 14 1,058,322,020 659,367,283<br />
Sub-Total 74,112,406,505 48,572,786,800<br />
TOTAL - ASSETS 112,050,500,724 77,798,515,126<br />
1-38<br />
As per our attached report of even date<br />
For Sharp & Tannan Associates For and on behalf of the Board of Directors<br />
Chartered Accountants<br />
ICAI Registration No.109983W<br />
By the hand of<br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
Membership No.: (F) 037457<br />
Place : Singapore<br />
Dated: May 10, 20<strong>13</strong><br />
74<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Statement of Profit & Loss for the year ended March 31, 20<strong>13</strong><br />
(Amount in `)<br />
Particulars Note No <strong>2012</strong>-<strong>13</strong> 2011-12<br />
INCOME<br />
Revenue from operations 18 16,534,142,626 9,084,576,504<br />
Other Income 19 837,565,386 451,289,918<br />
Total Revenue 17,371,708,011 9,535,866,422<br />
EXPENDITURE<br />
20 1,794,509,616 1,092,738,207<br />
<strong>Finance</strong> cost 21 8,776,021,993 4,798,307,372<br />
Depreciation & amortisation expenses 22 339,856,186 149,597,434<br />
Other expenses 23 3,397,458,764 1,730,161,075<br />
Provision & Write off 24 326,226,052 263,360,067<br />
Total Expenses 14,634,072,610 8,034,164,155<br />
2,737,635,401 1,501,702,267<br />
Tax expenses :<br />
Current tax expense for current year 1,042,233,560 528,144,633<br />
Deferred tax (194,879,786) (81,739,544)<br />
Current tax expense relating to prior years 3,123,600 1,488,109<br />
Total tax expense 850,477,374 447,893,198<br />
1,887,158,027 1,053,809,069<br />
Earnings per equity share<br />
(1) Basic 25 7.96 4.44<br />
(2) Diluted 25 7.81 4.35<br />
Face Value 10.00 10.00<br />
1-38<br />
As per our attached report of even date<br />
For Sharp & Tannan Associates<br />
Chartered Accountants<br />
ICAI Registration No.109983W<br />
By the hand of<br />
For and on behalf of the Board of Directors<br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
Membership No.: (F) 037457<br />
Place : Singapore<br />
Dated: May 10, 20<strong>13</strong><br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 75
Consolidated Cash Flow Statement for the year ended March 31, 20<strong>13</strong><br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
CASH FLOWS FROM OPERATING ACTIVITIES<br />
<br />
2,737,635,401 1,501,702,267<br />
item<br />
Adjustments for:<br />
Depreciation 339,856,186 149,597,434<br />
Provision for Doubtful Loans (note : 24) 194,752,763 79,302,268<br />
Provision for Standard Loans (note : 24) 55,587,448 95,318,881<br />
Provision for diminution in value of<br />
2,325,419 2,029,581<br />
investments (note : 24)<br />
Provision for Contingencies (note : 24) 55,714,<strong>13</strong>7 46,707,807<br />
Gratuity & Leave Enchasment 30,560,336 678,796,289 25,919,026 398,874,997<br />
<br />
3,416,431,690 1,900,577,264<br />
changes<br />
Increase / (Decrease) in trade payables - - - -<br />
Increase / (Decrease) in long term provisions - <strong>13</strong>0,000<br />
Increase / (Decrease) in short term provisions (6,024,122) (2,023,517)<br />
Increase / (Decrease) in Other liabilities 35,430,481 1,252,558,968<br />
Increase / (Decrease) in Other long term<br />
- -<br />
liabilities<br />
Decrease / (Increase) in trade receivables - -<br />
Decrease / (Increase) in trade inventories 35,116,397 116,446,683<br />
Decrease / (Increase) in long term loans & (7,618,738,899) (9,259,924,032)<br />
advances<br />
Decrease / (Increase) in short term loans & (18,188,881,340) (22,361,610,698)<br />
advances<br />
Decrease / (Increase) in other current assets (398,999,626) (323,797,304)<br />
Decrease / (Increase) in other non current<br />
(9,725,391) (26,151,822,499) (108,848,728) (30,687,068,630)<br />
assets<br />
Cash generated from operations (22,735,390,809) (28,786,491,366)<br />
Tax (Paid) / Refund (974,938,660) (585,919,085)<br />
Net cash from operating activities (A) (23,710,329,469) (29,372,410,451)<br />
CASH FLOWS FROM INVESTING ACTIVITIES<br />
<br />
(611,516,044) (697,857,546)<br />
assets,CWIP and Capital advances<br />
- -<br />
Proceeds of non-current investments - -<br />
Purchase of non-current investments (863,530,734) (2,541,842,685)<br />
Purchase of current investments - -<br />
Proceeds from sale/maturity of current<br />
(1,327,847,106) (2,041,403,053)<br />
investments<br />
(Purchase)/Sale of Investments (Subsidiaries) 85,126,000 -<br />
Purchase consideration for amalgamation - -<br />
Net cash from investing activities (B) (2,717,767,884) (5,281,103,284)<br />
76<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Cash Flow Statement for the year ended March 31, 20<strong>13</strong><br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
CASH FLOWS FROM FINANCING ACTIVITIES<br />
Dividend paid (689,065,856) -<br />
Share issue expenses - -<br />
Proceeds from long term borrowings 18,723,675,7<strong>13</strong> 25,046,643,574<br />
Repayment of long term borrowings - -<br />
Proceeds from short term borrowings 14,157,318,906 11,407,253,065<br />
Repayment of short term borrowings - -<br />
Proceeds from borrowings (net) - -<br />
32,191,928,763 36,453,896,639<br />
Net increase in cash and cash equivalents<br />
5,763,831,412 1,800,382,904<br />
( A + B + C)<br />
Opening Cash and cash equivalents<br />
Cash on hand and balances with banks 2,936,589,530 1,<strong>13</strong>6,206,627<br />
Less :Opening balance of Subsidiary Sold (41,368,022) -<br />
2,895,221,508 1,<strong>13</strong>6,206,627<br />
Closing Cash and cash equivalents<br />
Cash on hand and balances with banks 8,659,052,920 2,936,589,530<br />
<br />
under the Indirect Method as set out in<br />
the Accounting Standard (AS-3)”CashFlow<br />
Statement” issued by the Institute of<br />
Chartered Accountants of <strong>India</strong><br />
<br />
re-arrange wherever necessary<br />
3. Cash & cash equivalent as at the end of<br />
the year include:<br />
Cash & bank balances (Refer Note 17) 8,205,029,537 2,537,445,412<br />
Add: Fixed deposits considered under Other 454,023,383 399,144,118<br />
Non current asset (refer Note 14)<br />
Cash & cash equivalent at the end of the year 8,659,052,920 2,936,589,530<br />
As per our attached report of even date<br />
For Sharp & Tannan Associates<br />
Chartered Accountants<br />
ICAI Registration No.109983W<br />
By the hand of<br />
For and on behalf of the Board of Directors<br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
Membership No.: (F) 037457<br />
Place : Singapore<br />
Dated: May 10, 20<strong>13</strong><br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 77
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 1. CORPORATE INFORMATION<br />
The Company is a systematically important Non-Banking Financial Company (“NBFC”) registered with the Reserve Bank of<br />
<strong>India</strong> (RBI) under section 45-IA of the Reserve Bank of <strong>India</strong> Act,1934 and primarily engaged in lending and related activities.<br />
<br />
<br />
<br />
Note 2. SIGNIFICANT ACCOUNTING POLICIES<br />
2.1 Basis of consolidation:<br />
<br />
<br />
<br />
<br />
by the Council of The Institute of Chartered Accountants of <strong>India</strong>.<br />
<br />
<br />
the Companies (Accounting Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act,<br />
1956 and the guidelines issued by the Reserve bank of <strong>India</strong> (RBI) as applicable to NBFCs as well as norms<br />
<br />
<br />
consistent with those followed in the previous year.<br />
ii. Principles of consolidation:<br />
<br />
with the Generally Accepted Accounting Principles in <strong>India</strong> (<strong>India</strong>n GAAP) to comply with all material aspects of the<br />
<br />
<br />
basis under the historical cost convention. The effects of all inter-group transactions and balances have been<br />
<br />
consistent with those followed in the previous year by the Company.<br />
iii. List of subsidiaries consolidated:<br />
<br />
20<strong>13</strong> of following subsidiary is included in consolidation:<br />
<strong>India</strong> <strong>Infoline</strong> Housing <strong>Finance</strong> Ltd (IIHFL)<br />
2.2 Use of estimates:<br />
<br />
management to make estimates and assumptions that affect the reported amount of assets and liabilities on the date<br />
<br />
between the actual result and estimates are recognized in the period in which the results are known / materialized.<br />
2.3 Fixed asset, depreciation and amortization :<br />
Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss, if any thereon.<br />
<br />
<br />
<br />
is charged over the remaining useful life of the asset.<br />
Depreciation is charged from the month in which new assets are put to use. No depreciation is charged for the month in<br />
which assets are sold. Individual assets / group of similar assets costing upto `5,000/- has been depreciated in full, in<br />
the year of purchase.<br />
78<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Estimated useful life of the assets is as under:<br />
Class of assets<br />
Useful life in years<br />
Buildings 20<br />
Computers 3<br />
5<br />
5<br />
Vehicles 5<br />
Software 3<br />
2.4 Assignment of loan portfolio:<br />
Derecognition of loans assigned, in the books of the Company, is based on the concept of surrender of control over the<br />
loans resulting in a “true sale” of loans. Future interest spread receivables in case of a par structure deals are recognised<br />
over the tenure of agreements as per guidelines issued by the RBI. Expenditure in respect of direct assignment is<br />
recognised upfront. Credit enhancement in the form of cash collateral provided by the Company is included under Cash<br />
and bank balance / Loans and advances, as applicable.<br />
2.5 Revenue recognition:<br />
The Company complies, in all material respects, with the Accounting Standards, Prudential Norms relating to income<br />
<br />
in the directions issued by the RBI, as applicable to it, and<br />
<br />
<br />
Financing loans, are reversed and are accounted as income when these are actually realised.<br />
<br />
<br />
<br />
<br />
2.6 Preliminary expenses:<br />
<br />
<br />
<br />
<br />
The Company has provided “Compensated Absences” on the basis of actuarial valuation.<br />
<br />
<br />
<br />
<br />
calculated at or near the balance sheet date by an independent actuary using the projected unit credit method.<br />
2.8 Provisions, Contingent liabilities and Contingent assets:<br />
Non-performing loans are written off / provided for, as per management estimates, subject to the minimum provision<br />
required as per Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve<br />
<br />
The Company creates a provision when there is present obligation as a result of a past event that probably requires an<br />
<br />
liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an<br />
<br />
<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 79
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
2.9 Taxes on income:<br />
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to<br />
the tax authorities in accordance with the Income-tax Act,1961 enacted in <strong>India</strong>. Provision for current tax is computed<br />
based on estimated tax liability computed after adjusting for allowance, disallowance and exemptions in accordance<br />
with the applicable tax laws.<br />
<br />
<br />
originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using<br />
the tax rate and the tax laws enacted or substantively enacted at the Balance Sheet date. At each reporting date, the<br />
Company re-assesses unrecognized deferred tax assets. The deferred tax asset is recognised or unrecognised, to the<br />
<br />
will be available. Deferred tax liability is recognised as and when arisen.<br />
2.10 Operating leases:<br />
<br />
Accounting Standard 19 – Leases, issued by the Institute of Chartered Accountants of <strong>India</strong>.<br />
2.11 Investments:<br />
Investments, which are readily realizable and intended to be held for not more than one year from the date on which<br />
<br />
investments. Current investments are stated at lower of cost or market / fair value. Non – current investments are carried<br />
at cost. Provision for diminution in value of non – current investments is made, if in the opinion of the management, such<br />
diminution is other than temporary. For investment in mutual funds, the net assets value (NAV) declared by the mutual<br />
funds at the Balance Sheet date is considered as the fair value.<br />
2.12 Inventories:<br />
Closing stock is valued at cost or market value, whichever is lower. Cost is computed on FIFO basis.<br />
2.<strong>13</strong> Earnings per share:<br />
<br />
by the weighted average number of equity shares outstanding during the period.<br />
<br />
<br />
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of<br />
all dilutive potential equity shares.<br />
<br />
Borrowings are shown under current liabilities as long term and short term liabilities. Commercial papers are recognised<br />
at Face value at the time of its issue. Any difference between the proceeds and the redemption value is recognised in<br />
<br />
80<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 3. SHARE CAPITAL<br />
(Amount in `)<br />
Particulars<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
Authorised Share Capital<br />
300,000,000 equity shares(Previous year 300,000,000 equity shares) of ` 10 each 3,000,000,000 3,000,000,000<br />
1,999,600 equity shares of ` 100 each 199,960,000 199,960,000<br />
150 Preference Shares of ` 100 each 15,000 15,000<br />
250 11% Non- cumulative redeemable preference shares of ` 100 each 25,000 25,000<br />
Total 3,200,000,000 3,200,000,000<br />
Issued, Subscribed and Paid-up share capital<br />
237,154,030 Equity Shares (Previous year 23,71,54,030 Equity Shares) of `10 each<br />
with voting rights<br />
2,371,540,300 2,371,540,300<br />
(i)<br />
Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
No of Shares (Amount in `) No of Shares (Amount in `)<br />
At the beginning of the period 237,154,030 2,371,540,300 237,154,030 2,371,540,300<br />
Outstanding at the end of the period 237,154,030 2,371,540,300 237,154,030 2,371,540,300<br />
(ii)<br />
(iii)<br />
Rights attached to equity shares<br />
The Company has only one class of issued equity shares having a par value of `10 per share. Each holder of equity<br />
shares is entitled to one vote per share. The Company declares and pays dividends in <strong>India</strong>n rupees.<br />
Details of shareholders holding more than 5% shares in the Company<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
No of Shares % holding No of Shares % holding<br />
Equity shares of `10 each fully paid<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong> 234,467,549 98.87% 234,467,549 98.87%<br />
(iv)<br />
Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during<br />
<br />
Particulars March 31, 20<strong>13</strong> March 31, <strong>2012</strong> March 31, 2011 March 31, 2010 March 31, 2009<br />
No of Shares No. of shares No of Shares No. of shares No. of shares<br />
Bonus issue - - 2<strong>13</strong>,438,627 - -<br />
(v)<br />
The Company has implemented Employee Stock Option Scheme – 2007. Under the said scheme 4,455,000 (Previous<br />
year 4,920,000), stock options are in force as on March 31, 20<strong>13</strong>.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 81
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 4. RESERVES AND SURPLUS<br />
(Amount in `)<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Securities Premium Account<br />
Opening balance 8,657,487,836 8,655,737,836<br />
Addition during the year - -<br />
Deduction during the year , for issue of bonus shares and adjustment of<br />
- -<br />
share issue expenses.<br />
Closing balance 8,657,487,836 8,655,737,836<br />
General Reserve<br />
Opening balance 83,000,000 83,000,000<br />
Addition due to transfer during the year from surplus in the Statement of<br />
180,000,000 -<br />
<br />
Deduction during the year - -<br />
Closing balance 263,000,000 83,000,000<br />
Special Reserve*<br />
Opening balance 725,000,000 508,681,186<br />
Addition due to transfer during the year from surplus in the Statement of<br />
378,000,000 216,318,814<br />
<br />
Closing balance 1,103,000,000 725,000,000<br />
* Pursuant to Section 45 IC of Reserve Bank of <strong>India</strong> Act, 1934 and<br />
Section 29C of National Housing Bank Act,1987)<br />
Debenture Redemption Reserve<br />
Opening balance 630,000,000 -<br />
Addition on account of NCD public issue 220,000,000 630,000,000<br />
Closing balance 850,000,000 630,000,000<br />
<br />
Opening balance 1,982,500,229 1,793,067,282<br />
Adjustment on sale of subsidiary to parent entity * (3,748,606) -<br />
Addition during the year 1,887,158,027 1,053,809,069<br />
Less: Appropriations<br />
Goodwill write off on Moneyline Credit <strong>Limited</strong> Merger - (18,057,308)<br />
Interim Dividend (592,885,075) -<br />
Dividend Distribution Tax (96,180,781) -<br />
Special Reserve (378,000,000) (216,318,814)<br />
General reserve (180,000,000) -<br />
Debenture Redemption Reserve (220,000,000) (630,000,000)<br />
Closing balance 2,398,843,794 1,982,500,229<br />
Total <strong>13</strong>,272,331,630 12,076,238,066<br />
* During the year under review, <strong>India</strong> <strong>Infoline</strong> Distribution Company <strong>Limited</strong> ceased to be a subsidiary of the Company w.e.f<br />
1st April <strong>2012</strong>.<br />
82<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 5. LONG TERM BORROWINGS<br />
(Amount in `)<br />
Particulars Non-current portion Current maturity<br />
Secured<br />
Loan from Banks (Secured against<br />
receivables) – Refer Note 5.1 below<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
26,641,392,959 21,929,166,667 <strong>13</strong>,421,592,272 5,478,741,851<br />
Non Convertible Debentures (Secured 9,756,120,000 8,768,886,000 978,600,000 1,329,000,000<br />
Against Immovable Property, Stock and Book<br />
Debts) – Refer Note 5.2 below<br />
Sub-Total 36,397,512,959 30,698,052,667 14,400,192,272 6,807,741,851<br />
Unsecured<br />
Non Convertible Debentures – Refer Note 5.3<br />
below<br />
6,970,914,056 1,539,149,056 - -<br />
Amount disclosed under the head “Other<br />
- - (14,400,192,272) (6,807,741,851)<br />
current liabilities”<br />
Sub-Total 6,970,914,056 1,539,149,056 - -<br />
Total 43,368,427,015 32,237,201,723 - -<br />
During the year, the Company has raised Secured Term Loans aggregating `18,250,000,000/- (Previous Year ` 18,250,000,000/-)<br />
from various banks.<br />
The Company has also raised ` 2,367,100,000/- (P.Y. ` 8,384,900,000/-) by issue of Secured Non Convertible Debentures.<br />
Note 5.1 TERM LOANS FROM BANKS - SECURED:<br />
(Amount in `)<br />
Maturities<br />
Non current<br />
As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
1-3 years 3 years and Total 1-3 years 3 years and Total<br />
above<br />
above<br />
Rate of interest*<br />
10.01 % to 11.00 % - - - - - -<br />
11.01 % to 12.00 % 11,882,334,988 3,948,373,950 15,830,708,938 - - -<br />
12.01 % to <strong>13</strong>.00 % 7,349,241,321 3,461,442,700 10,810,684,021 17,679,166,667 4,250,000,000 21,929,166,667<br />
Total 19,231,576,309 7,409,816,650 26,641,392,959 17,679,166,667 4,250,000,000 21,929,166,667<br />
*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<br />
time. The above categorization of loans has been based on the interest rates, prevalent as on the respective reporting dates.<br />
<br />
<br />
are also guaranteed by <strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong>, holding company.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 83
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 5.2 NON CONVERTIBLE DEBENTURES – SECURED<br />
Particulars Non Current Current<br />
11.50 % Non-Convertible Debentures of Face<br />
value `10,000 Each Redeemable on 2-Mar-<br />
2017<br />
11.70 % Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 18-Aug-<br />
2016<br />
11.90 % Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 18-Aug-<br />
2016<br />
11.50 % Non-Convertible Debentures of Face<br />
value `<br />
15<br />
11.70 % Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 18-Dec-14<br />
Equity Linked Non-Convertible Debentures<br />
Series I-018 of Face value `100,000 Each<br />
Redeemable on 18-Oct-14<br />
Equity Linked Non-Convertible Debentures<br />
Series I-019 of Face value `100,000 Each<br />
Redeemable on 18-Oct-14<br />
Equity Linked Non-Convertible Debentures<br />
Series I-014 of Face value `100,000 Each<br />
Redeemable on <strong>13</strong>-Oct-14<br />
Equity Linked Non-Convertible Debentures<br />
Series I-015 of Face value `100,000 Each<br />
Redeemable on <strong>13</strong>-Oct-14<br />
Equity Linked Non-Convertible Debentures<br />
Series I-016 of Face value `100,000 Each<br />
Redeemable on <strong>13</strong>-Oct-14<br />
11.70 % Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 18-Aug-14<br />
Equity Linked Non-Convertible Debentures<br />
Series I-017 of Face value `100,000 Each<br />
Redeemable on <strong>13</strong>-May-14<br />
Equity Linked Non-Convertible Debentures<br />
Series I-012 of Face value `100,000 Each<br />
<br />
Equity Linked Non-Convertible Debentures<br />
Series I-003 of Face value `100,000 Each<br />
Redeemable on 9-May-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-001 of Face value `100,000 Each<br />
Redeemable on 5-May-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-002 of Face value `100,000 Each<br />
Redeemable on 5-May-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-009 of Face value `100,000 Each<br />
Redeemable on 30-Apr-<strong>13</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
300,000,000 300,000,000 - -<br />
201,055,000 202,408,000 - -<br />
2,665,918,000 2,896,847,000 - -<br />
225,000,000 225,000,000 - -<br />
299,690,000 330,974,000 - -<br />
77,500,000 77,500,000 - -<br />
41,000,000 41,000,000 - -<br />
32,000,000 32,000,000 - -<br />
15,400,000 15,400,000 - -<br />
38,500,000 38,500,000 - -<br />
3,417,457,000 3,417,457,000 - -<br />
75,500,000 75,500,000 - -<br />
56,500,000 51,500,000 -<br />
30,000,000 30,000,000 -<br />
92,600,000 37,100,000 -<br />
52,200,000 35,000,000 -<br />
- 50,000,000 - -<br />
84<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Particulars Non Current Current<br />
Equity Linked Non-Convertible Debentures<br />
Series I-006 of Face value `100,000 Each<br />
Redeemable on 29-Apr-<strong>13</strong><br />
8.00 % Non-Convertible Debentures of Face<br />
value ` 1,000,000 Each Redeemable on 20-<br />
Apr-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-010 of Face value `100,000 Each<br />
Redeemable on 19-Apr-<strong>13</strong><br />
12.20 % Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 16-<br />
Apr-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-007 of Face value `100,000 Each<br />
Redeemable on 30-Mar-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-008 of Face value `100,000 Each<br />
Redeemable on 30-Mar-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-005 of Face value `100,000 Each<br />
Redeemable on 29-Mar-<strong>13</strong><br />
Equity Linked Non-Convertible Debentures<br />
Series I-0<strong>13</strong> of Face value `100,000 Each<br />
Redeemable on 4-Oct-12<br />
Equity Linked Non-Convertible Debentures<br />
Series I-011 of Face value `100,000 Each<br />
<br />
8.25 % Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 10-<br />
May-12<br />
8.00 % Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 21-<br />
Apr-12<br />
Equity Linked Non-Convertible Debentures<br />
Series I-004 of Face value `100,000 Each<br />
Redeemable on 10-Sep-12<br />
11.35% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 28-<br />
Nov-14<br />
11.70% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 27-<br />
<br />
11.70% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 27-<br />
<br />
12.25% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 15-<br />
Oct-14<br />
Equity Linked Non Convertible Debentures<br />
- Series I 20 of Face value `100,000 Each<br />
<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
11,000,000 11,000,000 -<br />
734,000,000 734,000,000 -<br />
- 10,000,000 - -<br />
80,000,000 80,000,000 -<br />
- - 20,000,000<br />
- - 4,000,000<br />
- - 25,300,000<br />
- - 86,200,000<br />
- - 30,500,000<br />
- - 400,000,000<br />
- - 733,000,000<br />
- - 30,000,000<br />
150,000,000 - - -<br />
100,000,000 - - -<br />
150,000,000 - - -<br />
300,000,000 - - -<br />
318,700,000 - - -<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 85
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Particulars Non Current Current<br />
Equity Linked Non Convertible Debentures<br />
- Series I 21 of Face value `100,000 Each<br />
<br />
Equity Linked Non Convertible Debentures<br />
- Series I 22 of Face value `100,000 Each<br />
<br />
Equity Linked Non Convertible Debentures<br />
- Series I 23 of Face value `100,000 Each<br />
<br />
Equity Linked Non Convertible Debentures<br />
- Series I 24 of Face value `100,000 Each<br />
<br />
Equity Linked Non Convertible Debentures<br />
- Series I 25 of Face value `100,000 Each<br />
<br />
Equity Linked Non Convertible Debentures<br />
- Series I 26 of Face value `100,000 Each<br />
<br />
Equity Linked Non Convertible Debentures<br />
- Series I 27 of Face value `100,000 Each<br />
<br />
Equity Linked Non Convertible Debentures<br />
- Series I 28 of Face value `100,000 Each<br />
Redeemable on 1-Aug-16<br />
Equity Linked Non Convertible Debentures<br />
- Series I 29 of Face value `100,000 Each<br />
Redeemable on 10-Aug-16<br />
Equity Linked Non Convertible Debentures<br />
- Series I 30 of Face value `100,000 Each<br />
Redeemable on 15-Aug-16<br />
Equity Linked Non Convertible Debentures<br />
- Series I 31 of Face value `100,000 Each<br />
Redeemable on 2-Sep-16<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
88,900,000 - - -<br />
216,500,000 - - -<br />
28,500,000 - - -<br />
439,000,000 - - -<br />
155,500,000 - - -<br />
148,400,000 - - -<br />
85,200,000 - - -<br />
26,700,000 - - -<br />
52,700,000 - - -<br />
35,000,000 - - -<br />
<strong>13</strong>,000,000 - - -<br />
Equity Linked Non Convertible Debentures 59,000,000 - - -<br />
- Series I 32 of Face value `100,000 Each<br />
Redeemable on 3-Sep-16<br />
Total 9,756,120,000 8,768,886,000 978,600,000 1,329,000,000<br />
The above debentures are secured by way of charge over immoveable property and/or current assets, book debts, receivables<br />
(both present and future) and other assets of the Company. Debentures outstanding as on March 31, 20<strong>13</strong>, amounting to<br />
` 734,000,000/- (Previous year ` 1,467,000,000/-) are secured by way of exclusive charge on certain receivables of the<br />
Company. Secured non convertible debentures aggregating to ` 10,734,720,000/- (Previous year ` 10,097,886,000/-) are also<br />
guaranteed by <strong>India</strong> <strong>Infoline</strong> Ltd., the holding Company.<br />
Pursuant to Section 117C of the Companies Act,1956 read with circular issued by the Ministry of Corporate Affairs (“MCA”),<br />
the Company being an NBFC was required to create Debenture Redemption Reserve of a value equivalent to 25% of the<br />
debentures offered through a public issue. Accordingly ` 220,000,000/- (Previous year ` 630,000,000/-) has been transferred<br />
<br />
86<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 5.3 NON CONVERTIBLE DEBENTURES – UNSECURED<br />
Particulars Non Current Current<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 30-Mar-<br />
2019 (SBMIB VII – 7 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 30-Mar-<br />
2019 (SBMIB VI - 7 years)<br />
12.00 % Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 28-<br />
Mar-2019 *<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 2-Mar-<br />
2019 (SBMIB V – 7 years)<br />
12.00 % Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 27-<br />
Feb-2019 *<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 23-Feb-<br />
2019 (SBMIB IV – 7 years)<br />
11.50% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 20-<br />
Feb-2019 *<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 7-Feb-<br />
2019 (SBMIB III – 7 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 7-Feb-<br />
2019 (SBMIB II – 7 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value ` <br />
2019 (SBMIB I – 7 years)<br />
12.25% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 30-Mar-<br />
2018 (SBDB V – 6 years)<br />
12.25% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 30-Mar-<br />
2018 (SBDB IV – 6 years)<br />
12.25% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 1-Mar-<br />
2018 (SBDB III – 6 years)<br />
12.25% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 7-Feb-<br />
2018 (SBDB II – 6 years)<br />
12.25% Non-Convertible Debentures of Face<br />
value ` <br />
2018 (SBDB I – 6 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 30-Mar-<br />
2017 (SBMIB VII – 5 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 30-Mar-<br />
2017 (SBMIB VI – 5 years)<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
350,000 350,000 - -<br />
50,000 50,000 - -<br />
250,000,000 250,000,000 - -<br />
88,000 88,000 - -<br />
750,000,000 750,000,000 - -<br />
474,000 474,000 - -<br />
500,000,000 500,000,000 - -<br />
250,000 250,000 - -<br />
30,000 30,000 - -<br />
1,160,000 1,160,000 - -<br />
1,788,000 1,788,000 - -<br />
1,440,000 1,440,000 - -<br />
2,406,000 2,406,000 - -<br />
2,540,000 2,540,000 - -<br />
3,755,000 3,755,000 - -<br />
2,330,056 2,330,056 - -<br />
3,234,000 3,234,000 - -<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 87
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Particulars Non Current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 2-Mar-<br />
3,129,000 3,129,000 - -<br />
2017 (SBMIB V – 5 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 23-Feb-<br />
3,789,000 3,789,000 - -<br />
2017 (SBMIB IV – 5 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 7-Feb-<br />
4,769,000 4,769,000 - -<br />
2017 (SBMIB III – 5 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 7-Feb-<br />
3,297,000 3,297,000 - -<br />
2017 (SBMIB II – 5 years)<br />
12.75% Non-Convertible Debentures of Face<br />
value ` <br />
4,270,000 4,270,000 - -<br />
2017 (SBMIB I – 5 years)<br />
12.25% Non-Convertible Debentures of Face<br />
value `1,000 Each Redeemable on 04-Apr-<br />
1,765,000 - - -<br />
2018 (SBDB VI – 6 years)<br />
12.75% Non-Convertible Debentures series<br />
N5 of Face value `1,000 Each Redeemable<br />
3,948,525,000 - - -<br />
on 17-Sep-18<br />
12.75% Non-Convertible Debentures series<br />
N6 of Face value `1,000 Each Redeemable<br />
600,381,000 - - -<br />
on 17-Sep-18<br />
12.75% Non-Convertible Debentures series<br />
N7 of Face value `1,000 Each Redeemable<br />
451,094,000 - - -<br />
on 17-Sep-18<br />
12.15% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 31-<br />
50,000,000 - - -<br />
Aug-22<br />
12.15% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on 31-<br />
150,000,000 - - -<br />
Aug-22<br />
12.20% Non-Convertible Debentures of Face<br />
value `1,000,000 Each Redeemable on<br />
230,000,000 - - -<br />
4-Nov-22<br />
Total 6,970,914,056 1,539,149,056 - -<br />
During the year, your Company successfully completed the Public Offering of Unsecured Redeemable Non-Convertible<br />
Debentures (“NCDs”) aggregating to ` 5,000,000,000/- (the “Issue”) in the nature of subordinated debt to strengthen the<br />
capital adequacy. These NCDs are listed and traded on the National Stock Exchange and Bombay Stock Exchange. The<br />
Company has utilized the entire proceeds of NCD public issue for the state purposes mentioned in the Final Prospectus dated<br />
August 27,<strong>2012</strong>.<br />
* For these Non Convertible Debentures, the company has a call option, after 5 years from the date of allotment subject to<br />
prior approval from the Reserve Bank of <strong>India</strong> for redemption. The Non Convertible Debentures does not have any put option.<br />
88<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 6.<br />
PROVISIONS<br />
Particulars Short-term Long-term<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
<br />
Provision for Leave encashment 5,314,108 14,619,192 18,243,543 -<br />
Provision for Gratuity 25,541,674 9,943,919 - -<br />
Sub-Total 30,855,782 24,563,111 18,243,543 -<br />
Provision others<br />
Provision for Tax (Net of Advance tax and TDS 4,290,118 - - -<br />
`119,299,630)<br />
Contingent Provision against standard assets - - 233,402,792 177,815,344<br />
Provision for expenses 202,619,092 277,492,820 - -<br />
Sub-Total 206,909,210 277,492,820 233,402,792 177,815,344<br />
Total 237,764,992 302,055,931 251,646,335 177,815,344<br />
Note 7. SHORT – TERM BORROWINGS<br />
(Amount in `)<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Secured<br />
Cash credit from banks 2,501,681,081 1,489,362,175<br />
- 1,000,000,000<br />
Sub-Total 2,501,681,081 2,489,362,175<br />
Unsecured<br />
Loan from banks - 400,000,000<br />
Commercial Paper 31,995,000,000 17,450,000,000<br />
Non Convertible Debentures - -<br />
Sub-Total 31,995,000,000 17,850,000,000<br />
Total 34,496,681,081 20,339,362,175<br />
T<br />
<br />
above loans are also guaranteed by <strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong>, holding company.<br />
Note 8. OTHER CURRENT LIABILITIES<br />
(Amount in `)<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Current maturities of long term borrowings 14,400,192,272 6,807,741,851<br />
Sub-Total 14,400,192,272 6,807,741,851<br />
Others<br />
Interest accrued but not due on borrowings 1,337,558,438 875,339,427<br />
Debenture application money received pending allotment - 2,060,000<br />
Payables on account of assignment 376,883,125 189,334,616<br />
Temporary overdrawn bank balance as per books 114,758,716 1,623,873,595<br />
Advances from customers 491,496,566 381,295,858<br />
Payables to Vendors for health care Loans 800,652,224 182,560,942<br />
Contractually reimbursable expenses 288,651,077 167,270,824<br />
Income received in advance 38,321,200 34,838,647<br />
Statutory remittances (Contributions to PF and ESIC, Withholding Taxes,<br />
99,381,100 18,629,321<br />
Excise Duty, VAT, Service Tax, etc.)<br />
Others 104,214,653 11,356,506<br />
Sub-Total 3,651,917,099 3,486,559,736<br />
Total 18,052,109,371 10,294,301,587<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 89
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 9. TANGIBLE ASSETS<br />
(Amount in `)<br />
Particulars<br />
Furniture Computer Electrical Building<br />
Total<br />
And Fixture<br />
Equipment Equipment<br />
Cost or valuation as 410,801,962 99,218,745 175,115,126 190,864,937 145,000 876,145,770<br />
at April 1,<strong>2012</strong><br />
Additions 301,806,000 34,026,916 146,350,284 121,493,828 - 603,677,028<br />
Deductions/<br />
406,152 32,207 414,005 327,176 - 1,179,540<br />
Adjustments during<br />
the year<br />
As at March 31,20<strong>13</strong> 712,201,810 <strong>13</strong>3,2<strong>13</strong>,454 321,051,405 312,031,589 145,000 1,478,643,258<br />
Depreciation -<br />
As at April 1,<strong>2012</strong> 90,255,561 28,780,889 29,338,217 28,<strong>13</strong>2,810 30,811 176,538,288<br />
Depreciation on 162,441,620 39,258,678 68,507,148 68,533,022 7,250 338,747,718<br />
merger<br />
Deductions/<br />
101,440 32,206 255,904 201,650 - 591,200<br />
Adjustments during<br />
the year<br />
Upto March 31,20<strong>13</strong> 252,595,741 68,007,361 97,589,461 96,464,182 38,061 514,694,806<br />
Net Block as at 459,606,069 65,206,093 223,461,944 215,567,407 106,939 963,948,452<br />
March 31,20<strong>13</strong><br />
Net Block as at<br />
March 31,<strong>2012</strong><br />
320,546,401 70,437,856 145,776,909 162,732,127 114,189 699,607,482<br />
Note 10. INTANGIBLE ASSETS<br />
(Amount in `)<br />
<br />
Cost or valuation as at April 1, <strong>2012</strong> 4,939,762<br />
Additions 1,000,000<br />
Deductions / Adjustments during the year -<br />
As at March 31, 20<strong>13</strong> 5,939,762<br />
Amortisation<br />
As at April 1, <strong>2012</strong> 4,714,886<br />
Amortisation For the year 1,119,027<br />
Deductions / Adjustments during the year -<br />
Up to March 31, 20<strong>13</strong> 5,833,9<strong>13</strong><br />
Net Block as at March 31, 20<strong>13</strong> 105,849<br />
Net Block as at March 31, <strong>2012</strong> 224,876<br />
90<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 11. NON – CURRENT INVESTMENTS<br />
Particulars<br />
Face<br />
Value in `<br />
(Amount in `)<br />
As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Number Amount Number Amount<br />
Unquoted, Non-Trade, Long Term (Valued at cost)<br />
Units of <strong>India</strong> <strong>Infoline</strong> venture Capital Fund (IIFL 100,000 - - 3,850 385,000,000<br />
Opportunity fund)<br />
Arch Pharmalabs <strong>Limited</strong> 10 263,028 105,211,200 263,028 105,211,200<br />
Sub-Total 105,211,200 490,211,200<br />
Debentures and Bonds - for Financing Real Estate<br />
Projects<br />
Add Albatross Properties Pvt Ltd 100,000 1,250 124,800,000 2,500 249,800,000<br />
Ankur Energy Resources Private <strong>Limited</strong> 100,000 - - 780 78,000,000<br />
Galleria Mall Developers Pvt Ltd 100,000 - - 800 80,000,000<br />
Kumar Housing Corporation <strong>Limited</strong> 100,000 - - 4,000 400,000,000<br />
Lily Realty Pvt Ltd (17%) 100,000 - - 2,770 277,000,000<br />
Lily Realty Pvt Ltd (18%) 100,000 - - 2,540 254,000,000<br />
Neptune Developers Ltd 100,000 1,200 120,000,000 900 90,000,000<br />
Prince Foundation Ltd 100,000 - - 985 98,516,858<br />
Sahyog Homes <strong>Limited</strong> 100,000 - - 3,650 365,000,000<br />
K.R.Mali Builder & Developers Private <strong>Limited</strong> 100,000 1,000 99,743,838 - -<br />
Shambhavi Realty Pvt Ltd 100,000 8,114 811,400,000 - -<br />
Series B Add Albatross Properties Pvt Ltd 100,000 1,250 125,000,000 - -<br />
Sankalp Siddhi Developers Pvt Ltd 100,000 7,600 760,000,000 - -<br />
Sumit Realty Private <strong>Limited</strong> 100,000 3,675 367,500,000 - -<br />
Transcon Properties Pvt Ltd 100,000 8,500 850,000,000 - -<br />
Sheth Buildwell Pvt Ltd 100,000 51 5,100,000 - -<br />
Galleria Developers Pvt Ltd- Series C 100,000 1,300 <strong>13</strong>0,000,000 - -<br />
Shanders Properties Private <strong>Limited</strong> 100,000 3,500 350,000,000 - -<br />
Satra Properties (<strong>India</strong>) <strong>Limited</strong> 100,000 - - 3,158 315,760,000<br />
Sheth Developers Pvt Ltd 100,000 - - 1,200 120,000,000<br />
Vijay Associates (Wadhwa) Construction Pvt Ltd 53,360 - - 3,968 211,736,246<br />
Sub-Total 3,743,543,838 2,539,8<strong>13</strong>,104<br />
Total 3,848,755,038 3,030,024,304<br />
Unquoted, Non-Trade, Long Term (Valued at cost)<br />
Reliance Capital <strong>Limited</strong> (Market Linked Debenture) 100,000 448 44,800,000 - -<br />
Sub-Total 44,800,000 -<br />
Total 3,893,555,038 3,030,024,304<br />
Note 12.<br />
<br />
<br />
items and result in a net deferred tax asset:<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 91
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Deferred Tax Asset<br />
(Amount in `)<br />
Particulars As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Depreciation 80,853,775 14,282,973<br />
On Gratuity/Leave Encashment 8,286,996 -<br />
Provision for Doubtful Debts <strong>13</strong>1,603,204 49,565,723<br />
Provision for Standard Assets 72,107,805 56,043,819<br />
Short Term capital loss 21,522,847 -<br />
Other - 6,232,834<br />
Total 314,374,627 126,125,349<br />
Note <strong>13</strong>. LOANS & ADVANCES<br />
Particulars Non Current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
Loans<br />
– Secured 31,631,522,8<strong>13</strong> 22,530,974,442 56,388,936,154 39,615,823,654<br />
– Unsecured 5,386,063 18,330,849 7,460,032 78,0<strong>13</strong>,680<br />
Less : Provision for doubtful loans (56,222,892) (56,562,880) (244,590,514) (49,497,763)<br />
Sub-Total 31,580,685,984 22,492,742,411 56,151,805,672 39,644,339,571<br />
Dues from customers<br />
– Secured - - 4,250,355,489 2,039,798,354<br />
– Unsecured - - 7,175,974 42,523,657<br />
Inter corporate deposit<br />
– Unsecured - 1,944,700,003 - 500,000,000<br />
Deposits – Unsecured 236,749,086 237,272,362 - -<br />
Capital Advances<br />
– Secured 282,081,048 - - -<br />
– Unsecured 16,629,159 22,734,188 - -<br />
Advance income tax (net of provisions<br />
48,716,815 128,419,802 - -<br />
` 2,429,443,012/- (previous year<br />
` 1,442,620,570/-)) – Unsecured<br />
Sub-Total 584,176,108 2,333,126,355 4,257,531,463 2,582,322,011<br />
Total 32,164,862,092 24,825,868,766 60,409,337,<strong>13</strong>5 42,226,661,582<br />
Note 14. OTHER ASSETS<br />
Particulars Non Current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
Fixed deposits 454,023,383 399,144,118 - -<br />
Unamortised debenture issue expenses 121,589,401 111,863,067 72,640,523 54,128,088<br />
Prepaid expenses 4,300,148 4,301,095 788,584,270 591,848,212<br />
Service tax input - - 63,471,381 10,108,298<br />
Excess funding in Gratuity fund - - - 1,455,261<br />
Staff Loans - - 532,389 649,982<br />
Others - - <strong>13</strong>3,093,457 1,177,442<br />
Total 579,912,932 515,308,280 1,058,322,020 659,367,283<br />
92<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 15. CURRENT INVESTMENTS<br />
Particulars<br />
Unquoted , Non - Trade , Current (valued at<br />
<br />
Mutual Funds<br />
Face Value<br />
in `<br />
(Amount in `)<br />
As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Number Amount Number Amount<br />
Axis Mutual Fund 1,000 385,046 500,000,000 - -<br />
10 7,825,706 250,000,000 - -<br />
Union KBC Mutual Fund 1,000 42,599 50,000,000 - -<br />
ICICI Prudential Mutual Fund 100 2,885,520 500,000,000 - -<br />
Principal Mutual Fund 1,000 43,890 50,000,000 - -<br />
Canara Robeco Mutual Fund 1,000 105,271 150,000,000 - -<br />
DSP Black Rock Mutual Fund 1,000 29,816 50,000,000 - -<br />
ICICI Prudential Liquid Plan Fund 100 750,235 <strong>13</strong>0,000,000 - -<br />
DWS Fixed Term Fund 10 - - 36,000,000 360,000,000<br />
Sub -Total 1,680,000,000 360,000,000<br />
Non convertible Debentures<br />
- for Financing Real Estate Projects<br />
Add Albatross Properties Pvt Ltd 100,000 1,250 125,000,000 - -<br />
Ankur Energy Resources Private <strong>Limited</strong> 100,000 - 44,386 3,750 375,000,000<br />
Galleria Mall Developers Pvt Ltd 100,000 7,101 682,269,452 1,607 160,700,000<br />
Grand View Estates Private <strong>Limited</strong> 10,000,000 - - 70 694,470,000<br />
Kumar Housing Corporation <strong>Limited</strong> 100,000 - - 1,000 100,000,000<br />
Lily Realty Pvt Ltd (17%) 100,000 - - 2,772 275,210,247<br />
Neptune Developers Ltd 100,000 800 80,000,000 600 60,000,000<br />
Prince Foundation Ltd 100,000 - - 750 74,983,143<br />
Sahyog Homes <strong>Limited</strong> 100,000 - - 3,650 365,000,000<br />
Satra Properties (<strong>India</strong>) <strong>Limited</strong> 100,000 5,164 516,400,000 4,705 470,540,000<br />
Sheth Developers Pvt Ltd - - 715,125 - -<br />
Galleria Mall Developers Pvt Ltd- Series C 100,000 600 60,000,000 - -<br />
K.R.Mali Builder & Developers Private <strong>Limited</strong> 100,000 2,000 200,000,000 - -<br />
Series B Add Albatross Properties Pvt Ltd 100,000 250 25,000,000 - -<br />
Sankalp Siddhi Developers Pvt Ltd 100,000 1,900 190,000,000 - -<br />
Sumit Realty Private <strong>Limited</strong> 100,000 525 52,500,000 - -<br />
Vijay Associates (Wadhwa) Construction Pvt 53,360 5,331 47,765,759 1,987 106,022,554<br />
Ltd<br />
Sub-Total 1,979,694,722 2,681,925,944<br />
-Others<br />
Secured Redeemable– Option I: 11.7% p.a.(*) - - 109,996,129 - -<br />
Secured Redeemable-Option Ill – Reserved &<br />
- - 82,199 - -<br />
Un Reserved: 11.9% p.a.(*)<br />
Sub-Total 110,078,328 -<br />
Quoted, Trade, Long Term (valued at cost or<br />
<br />
Investment in Government or Trust Securities<br />
8.15% Govt Security - [2022] 100 6,000,000 600,000,000 -<br />
Sub-Total 600,000,000 -<br />
Total 4,369,773,050 3,041,925,944<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 93
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
(Amount in `)<br />
Particulars<br />
Face Value As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
in ` Number Amount Number Amount<br />
Aggregate cost of mutual fund units 1,680,000,000 360,000,000<br />
NAV of mutual fund units 1,681,704,230 387,216,000<br />
Aggregate cost of quoted investments 600,000,000 -<br />
Aggregate market value of quoted investments 607,560,000 -<br />
Aggregate cost of unquoted investments 2,089,773,049 2,681,925,944<br />
(*) These debentures are under extinguishment process on the balance sheet date<br />
Note 16. INVENTORIES (VALUED AT LOWER OF COST AND NET REALISABLE VALUE)<br />
(Amount in `)<br />
Particulars Face Value As at March 31, 20<strong>13</strong> As at March 31, <strong>2012</strong><br />
Number Amount Number Amount<br />
Options *<br />
Strike Price<br />
Nifty Call 28-06-<strong>2012</strong> 4100 - - 6,900 9,936,000<br />
Nifty Call 28-06-<strong>2012</strong> 5100 - - (5,100) (4,287,621)<br />
Nifty Call 28-06-<strong>2012</strong> 5200 - - 1,200 383,400<br />
Nifty Call 27-12-<strong>2012</strong> 5000 - - 14,900 10,195,325<br />
Nifty Call 27-12-<strong>2012</strong> 5100 - - 6,500 2,925,000<br />
Nifty Call 27-12-<strong>2012</strong> 5200 - - 10,650 4,473,000<br />
Nifty Call 27-12-<strong>2012</strong> 5300 - - 5,750 2,765,750<br />
Nifty Call 27-06-20<strong>13</strong> 5200 12,950 5,180,000 12,950 11,085,200<br />
Nifty Call 26-06-2014 4500 <strong>13</strong>,550 15,514,750 <strong>13</strong>,550 15,514,750<br />
Nifty Call 26-06-2014 4600 9,000 4,900,0<strong>13</strong> 9,000 10,620,000<br />
Nifty Call 26-06-2014 6500 (10,000) (2,950,000) (10,000) (2,950,000)<br />
Sub-Total 22,644,763 60,660,804<br />
Non convertible Debentures *<br />
Equity linked Non convertible Debentures of 100 000 473 47,300,000 473 46,725,775<br />
Macquarie <strong>Finance</strong> (<strong>India</strong>) Private <strong>Limited</strong><br />
Sub-Total 47,300,000 46,725,775<br />
Total 69,944,763 107,386,579<br />
Aggregate market value- stock on hand –<br />
72,270,182 109,708,660<br />
Quoted<br />
* Held to cover possible payout in respect of certain Equity Linked Non-Convertible Debentures issued by the Company.<br />
Note 17. CASH AND BANK BALANCES<br />
Particulars Non Current Current<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
Cash on hand - - 1,282,816,018 266,790,821<br />
Balances with banks in current accounts - - 4,741,495,299 1,622,972,361<br />
Fixed deposits 454,023,383 399,144,118 2,180,718,220 647,682,230<br />
Amount disclosed under non-current assets (454,023,383) (399,144,118) - -<br />
Total - - 8,205,029,537 2,537,445,412<br />
94<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 18. REVENUE FROM OPERATIONS<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
16,408,031,178 8,878,804,8<strong>13</strong><br />
63,422,294 169,974,664<br />
Dividend income 62,689,154 35,797,027<br />
Total 16,534,142,626 9,084,576,504<br />
Note 19. OTHER INCOME<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Processing fee 340,831,777 345,012,921<br />
96,699,316 44,441,151<br />
Administration fee & other charges from customer 153,685,660 57,714,489<br />
Miscellaneous income 246,616,666 4,121,357<br />
(268,033) -<br />
Total 837,565,386 451,289,918<br />
Note 20. EMPLOYEE BENEFIT EXPENSES<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Salaries and bonus 1,645,347,798 1,034,955,864<br />
Contribution to provident and other funds 32,066,332 22,444,645<br />
Gratuity expenses 17,163,259 9,953,584<br />
Staff welfare expenses 99,932,227 25,384,114<br />
Total 1,794,509,616 1,092,738,207<br />
<br />
Details are given below:<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Assumptions<br />
Discount rate 8.50% 8.50%<br />
Salary Escalation 5.00% 5.00%<br />
Rate of return on plan assets 8.60% 8.60%<br />
<br />
Liability at the beginning of the year 14,481,910 3,527,983<br />
Interest Cost 1,231,001 282,239<br />
Current Service Cost 9,965,833 3,008,733<br />
Liability Transferred in 80,045 593,324<br />
Liability Transferred Out (190,730) -<br />
(65,074) (99,100)<br />
Actuarial (Gain)/ Loss on obligations 4,934,060 7,168,731<br />
Liability at the end of the year 30,437,045 14,481,910<br />
Amount Recognized in the Balance Sheet<br />
Liability at the end of the year (30,437,045) (14,481,910)<br />
Fair value of plan Assets at the end of the year 4,895,371 5,993,252<br />
Funded Status (Surplus) (25,541,674) 11,399,180<br />
(25,541,674) 11,399,180<br />
Expenses Recognized in the Income statement<br />
Liability Transferred in - -<br />
Interest Cost 1,231,001 282,239<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 95
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Current Service Cost 9,965,833 3,008,733<br />
Expected return on plan assets (515,420) (370,645)<br />
- -<br />
Actuarial (Gain) or Loss 6,481,845 7,033,257<br />
Expense Recognized in P&L 17,163,259 9,953,584<br />
Balance Sheet reconciliation<br />
Opening Net liability 8,488,658 (1,164,769)<br />
Net transfer in 80,045 (354,233)<br />
Net transfer out (190,730) -<br />
Expenses as above 17,163,259 9,953,688<br />
Employers contribution (8) (6,605)<br />
- -<br />
25,541,224 8,488,658<br />
Note 21. FINANCE COST<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Interest expenses on borrowings 8,485,186,377 4,686,586,269<br />
Other borrowing cost 290,835,615 111,721,103<br />
Total 8,776,021,993 4,798,307,372<br />
Note 22. DEPRECIATION AND AMORTISATION EXPENSES<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Depreciation of tangible assets 339,737,159 149,079,621<br />
Amortisation of intangible assets 119,027 517,8<strong>13</strong><br />
Total 339,856,186 149,597,434<br />
Note 23. OTHER EXPENSES<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Advertisement 50,566,151 84,675,921<br />
Bank Charges 90,297,892 67,890,246<br />
Communication 99,633,342 71,504,185<br />
Electricity 103,548,921 58,6<strong>13</strong>,338<br />
Direct operating expenses 1,102,<strong>13</strong>1,159 58,543,167<br />
Legal & Professional Fees 152,834,630 103,357,771<br />
Marketing Expenses 278,563,781 300,3<strong>13</strong>,536<br />
Miscellaneous Expenses 14,328,335 9,309,301<br />
438,686,949 289,111,702<br />
Postage & Courier 20,304,910 14,629,477<br />
Printing & Stationary 53,753,826 55,322,238<br />
Rent 669,164,783 432,994,177<br />
Repairs & Maintenance<br />
- Computer - 318,740<br />
- Others 52,451,193 43,064,869<br />
Remuneration to Auditors :<br />
- Audit Fees 700,000 725,000<br />
28,575 110,500<br />
96<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
- Out Of Pocket Expenses 111,395 18,776<br />
Software Charges 12,708,247 74,494,824<br />
Travelling & Conveyance 127,232,508 65,163,307<br />
Loss on Investment <strong>13</strong>0,412,167 -<br />
Total 3,397,458,764 1,730,161,075<br />
Note 24. PROVISIONS AND WRITE OFF<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
Bad Debts written off 17,846,285 40,001,530<br />
Provision for Contingencies 55,714,<strong>13</strong>7 46,707,807<br />
Provision for diminution in value of investments 2,325,419 2,029,581<br />
Provision for Doubtful Loans 194,752,763 79,302,268<br />
Provision for Standard Loans 55,587,448 95,318,881<br />
Total 326,226,052 263,360,067<br />
Note 25. BASIC AND DILUTED EARNINGS PER SHARE [“EPS”] COMPUTED IN ACCORDANCE WITH ACCOUNTING<br />
STANDARD (AS) 20 ‘EARNINGS PER SHARE”<br />
(Amount in `)<br />
Particulars <strong>2012</strong>-<strong>13</strong> 2011-12<br />
BASIC<br />
A 1,887,158,027 1,053,809,068<br />
Number of Shares Subscribed B 237,154,030 237,154,030<br />
EPS 7.96 4.44<br />
DILUTED<br />
C 1,887,158,027 1,053,809,068<br />
Number of Shares Subscribed 237,154,030 237,154,030<br />
Add: Potential Equity Shares on Account conversion of Employees<br />
4,455,000 4,920,000<br />
Stock Options.<br />
Weighted Average number of Shares Outstanding D 241,609,030 242,074,030<br />
EPS 7.81 4.35<br />
Note 26.<br />
The summary of consolidated Financial Statements represents consolidation of accounts of the Company with its following<br />
subsidiaries, all incorporated within <strong>India</strong>, as detailed below:<br />
(Amount in `)<br />
Subsidiary<br />
<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
<strong>India</strong> <strong>Infoline</strong> Distribution Company <strong>Limited</strong>* - 100%<br />
<strong>India</strong> <strong>Infoline</strong> Housing <strong>Finance</strong> <strong>Limited</strong> 100% 100%<br />
*During the year, company sold its 100% stake in <strong>India</strong> <strong>Infoline</strong> Distribution Company <strong>Limited</strong> to its holding company <strong>India</strong><br />
<strong>Infoline</strong> <strong>Limited</strong>.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 97
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 27.<br />
As of March 31, 20<strong>13</strong>, we had certain contingent liabilities not provided for, including the following<br />
Sr.<br />
No.<br />
Name of the Statute<br />
As at<br />
March 31, 20<strong>13</strong><br />
(Amount in `)<br />
As at<br />
March 31, <strong>2012</strong><br />
(i) In respect of Income tax demands 36,888,352 20,742,911<br />
(ii) In respect of Service tax demands - 15,324,272<br />
(iii) Guarantees and Counter Guarantees 245,271,036 99,880,250<br />
Total 282,159,388 <strong>13</strong>5,947,433<br />
Note 28.<br />
At the balance sheet date, there were outstanding commitments (net of advances) of capital expenditure of ` 34,859,964/-<br />
(Previous Year ` 120,633,998/-) out of the total contractual obligation entered during the year.<br />
Note 29.<br />
<br />
<br />
clause. Some agreements have a clause for a minimum lock-in period. The agreements also have a clause for termination<br />
by either party giving a prior notice period between 30 to 90 days. The Company has also taken some other assets under<br />
operating lease. The minimum Lease rentals outstanding as at March 31, 20<strong>13</strong>, are as under:<br />
(Amount in `)<br />
Minimum Lease Rentals<br />
As at<br />
March 31, 20<strong>13</strong><br />
As at<br />
March 31, <strong>2012</strong><br />
Up to one year 57,584,068 48,766,836<br />
1,909,985 1,771,900<br />
Total 59,494,053 50,538,736<br />
Note 30.<br />
The Company operates from and uses the premises, infrastructure and other facilities and services as provided to it by its<br />
<br />
<br />
<br />
to such estimation. These expenses are recovered on an actual basis and the estimates are used only where actual were<br />
<br />
Note 31. SEGMENT REPORTING:<br />
In the opinion of the management, there is only one reportable business segment (Financing and Investing) as envisaged by<br />
<br />
<br />
Secondary segmentation based on geography has not been presented as the Company operates primarily in <strong>India</strong> and the<br />
<br />
within <strong>India</strong>.<br />
Note 32.<br />
There are no dues to Micro and small enterprises (MSEs) outstanding for more than 45 days.<br />
Note 33. RETURN ON ASSETS:<br />
<br />
Note 34.<br />
During the year under review, the Company had come across frauds totaling to ` <strong>13</strong>0,873,577/- (Previous year ` 12,168,031/-)<br />
in respect of our lending operations. Out of the above ` 46,075,000/- has already been recovered. The Company has initiated<br />
various steps to recover the balance amount.<br />
Note 35.<br />
As on March 31, 20<strong>13</strong> the gold loan portfolio comprises 34.40% (Previous year 35.56%) of the total asset of the Company.<br />
98<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
WHEN IT’S ABOUT MONEY..<br />
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
Note 36.<br />
Disclosures in respect of applicability of AS – 18 Related Party Disclosures.<br />
<br />
Nature of relationship<br />
Name of party<br />
Holding Company<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong><br />
Direct Subsidiaries<br />
<strong>India</strong> <strong>Infoline</strong> Housing <strong>Finance</strong> <strong>Limited</strong><br />
<br />
<strong>India</strong> <strong>Infoline</strong> Commodities <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong> Media & Research Services <strong>Limited</strong><br />
IIFL Capital <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong> Trustee Company <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong> Asset Management Company <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong> Distribution Company <strong>Limited</strong>(***)<br />
<strong>India</strong> <strong>Infoline</strong> Insurance Services <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong> Insurance Brokers <strong>Limited</strong><br />
IIFL Wealth Management <strong>Limited</strong><br />
IIFL Realty <strong>Limited</strong><br />
IIFL Alternate Asset Advisors <strong>Limited</strong><br />
IIFL (Asia) Pte. <strong>Limited</strong><br />
IIFL Capital Ceylon <strong>Limited</strong><br />
IIFL Securities Ceylon (Pvt) <strong>Limited</strong><br />
IIFL Private Wealth Hong Kong <strong>Limited</strong><br />
IIFL Private Wealth (Mauritius) <strong>Limited</strong><br />
IIFL Private Wealth (Dubai) <strong>Limited</strong><br />
<strong>India</strong> <strong>Infoline</strong> Commodities DMCC<br />
IIFL Inc. USA<br />
IIFL Wealth (UK) <strong>Limited</strong><br />
IIFL Capital Inc.<br />
IIFL Private Wealth (Suisse) SA.<br />
Group Companies<br />
IIFL Distribution Services Private <strong>Limited</strong> (Formerly Finest Wealth Managers Private<br />
<strong>Limited</strong>)<br />
IIFL Trustee Services <strong>Limited</strong><br />
IIFL (Thane) Private <strong>Limited</strong>(*)<br />
IIFL Energy <strong>Limited</strong>(**)<br />
IIFL Capital Pte. <strong>Limited</strong><br />
IIFL Securities Pte <strong>Limited</strong><br />
(b) Other related parties:<br />
Nature of relationship<br />
Key Management<br />
Name of party<br />
<br />
Mr.R.Venkataraman<br />
Pratima Ram (till March 31, 20<strong>13</strong>)<br />
Mukesh Kumar Singh (w.e.f November 1, <strong>2012</strong>)<br />
Other related parties:<br />
<br />
Aditi Venkataraman ( wife of Mr. R Venkataraman)<br />
<strong>India</strong> <strong>Infoline</strong> Venture Capital Fund<br />
(*) With effect from 1st April <strong>2012</strong> The Company has been merged with its holding Company IIFL Realty <strong>Limited</strong>.<br />
(**) IIFL Energy <strong>Limited</strong> was Related Party up to 25th March, 20<strong>13</strong>.<br />
(***) During the year under review, <strong>India</strong> <strong>Infoline</strong> Distribution Company <strong>Limited</strong> ceased to be a subsidiary of the<br />
Company since 100% of the stake was sold to its holding company <strong>India</strong> <strong>Infoline</strong> <strong>Limited</strong>.<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong>-<strong>13</strong> 99
Consolidated Financial Statements of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
<br />
<br />
Nature of Transaction<br />
Holding<br />
Company<br />
Interest Income on<br />
ICD<br />
<br />
Subsidiaries<br />
Group<br />
Companies<br />
Key Management<br />
personnel<br />
Total<br />
4,886,298 210,711,083 - - 215,597,381<br />
(801,245) (166,888,434) - - (167,689,679)<br />
Interest Expenses 124,296,251 890,725 - - 125,186,976<br />
(<strong>13</strong>1,927,155) - - - (<strong>13</strong>1,927,155)<br />
Dividend Paid 586,168,873 - - - 586,168,873<br />
- - - - -<br />
Brokerage 292,810 - - - 292,810<br />
(494,094) - - - (494,094)<br />
Sale of Investments 85,126,000 - - - 85,126,000<br />
- - - - -<br />
Arranger/Management/<br />
- 122,772,501 - - 122,772,501<br />
processing fees expenses<br />
- - - - -<br />
Rent Expenses 122,597,945 - - - 122,597,945<br />
- - - - -<br />
Referral Fees/Marketing<br />
- 245,332,782 - - 245,332,782<br />
Fees Income<br />
- - - - -<br />
Director’s Remuneration - - - 8,271,343 8,271,343<br />
- - - - -<br />
ICD repaid/issued 5,310,000,000 1,160,200,000 - - 6,470,200,000<br />
- (2,037,500,000) - - (2,037,500,000)<br />
ICD taken/received 5,310,000,000 3,604,900,000 - - 8,914,900,000<br />
(1,085,100,000) (430,000,000) - (1,515,100,000)<br />
Advances returned/ <strong>13</strong>,577,572,376 617,669,317 - - 14,195,241,693<br />
reimbursement of<br />
expenses<br />
(50,330,350,319) (1,264,870,011) - - (51,595,220,330)<br />
Advances taken/<br />
allocation of expenses<br />
<strong>13</strong>,577,572,376 617,669,317 - - 14,195,241,693<br />
(50,330,350,319) (1,264,870,011) - - (51,595,220,330)<br />
Sundry payables - - - - -<br />
- - - - -<br />
Sundry receivables - - - - -<br />
- (2,444,700,001) - - (2,444,700,001)<br />
<br />
Note 37.<br />
<br />
<br />
Note 38.<br />
<br />
As per our attached report of even date<br />
For Sharp & Tannan Associates<br />
Chartered Accountants<br />
ICAI Registration No.109983W<br />
By the hand of<br />
For and on behalf of the Board of Directors<br />
of <strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong><br />
Tirtharaj Khot Mukesh Kumar Singh R Venkataraman<br />
Partner Executive Director Director<br />
Membership No.: (F) 037457<br />
Place : Singapore<br />
Dated: May 10, 20<strong>13</strong><br />
100<br />
<strong>India</strong> <strong>Infoline</strong> <strong>Finance</strong> <strong>Limited</strong>
BOARD OF DIRECTORS<br />
Non Executive Chairman<br />
Director<br />
Director<br />
Independent Director<br />
Independent Director<br />
Non Executive Director<br />
Executive Director<br />
COMMITTEE OF THE BOARD<br />
Audit Committee<br />
Chairman, Independent Director<br />
Independent Director<br />
Non Executive Director<br />
Nomination Committee<br />
Independent Director<br />
Independent Director<br />
Director<br />
Director<br />
Risk Management Committee<br />
Independent Director<br />
Director<br />
Non Executive Director<br />
Independent Director<br />
<br />
Assets and Liability Committee<br />
Non Executive Director<br />
Director<br />
Independent Director<br />
<br />
CORE MANAGEMENT TEAM<br />
Executive Director<br />
Mortgage Business<br />
Commercial Vehicle <strong>Finance</strong><br />
Underwriting<br />
<br />
Operations<br />
Internal Audit & Compliance<br />
Treasurer<br />
REGISTERED OFFICE<br />
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CORPORATE OFFICE<br />
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BANKERS<br />
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AUDITORS<br />
Chartered Accountants<br />
INTERNAL AUDITORS<br />
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REGISTRAR AND SHARE TRANSFER AGENT
INDIA INFOLINE FINANCE LIMITED<br />
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