INDIA INFOLINE FINANCE LIMITED - Securities and Exchange ...

India Infoline Finance Limited
The Government has traditionally exercised and continues to exercise a significant influence over many
aspects of the Indian economy. Our Company’s business may be affected not only by changes in interest
rates, changes in Government policy, taxation, social and civil unrest but also by other political, economic
or other developments in or affecting India.
61. Companies operating in India are subject to a variety of central and state government taxes and
surcharges.
Tax and other levies imposed by the central and state governments in India that affect our tax liability
include: (i) central and state taxes and other levies; (ii) income tax; (iii) value added tax; (iv) turnover tax;
(v) service tax; (vi) stamp duty; and (vii) other special taxes and surcharges which are introduced on a
temporary or permanent basis from time to time. Moreover, the central and state tax scheme in India is
extensive and subject to change from time to time. For example, a new tax code is proposed to be
introduced in the Indian Parliament.
The statutory corporate income tax in India, which includes a surcharge on the tax and an education cess on
the tax and the surcharge, is currently 32.45 % down from 33.22 % for the fiscal year ended March 31,
2012. The central or state government may in the future increase the corporate income tax it imposes. Any
such future increases or amendments may affect the overall tax efficiency of companies operating in India
and may result in significant additional taxes becoming payable. Additional tax exposure could adversely
affect our business and results of operations.
62. Financial instability in other countries could disrupt our business.
The Indian market and the Indian economy are influenced by economic and market conditions in other
countries. Although economic conditions are different in each country, investors’ reactions to developments
in one country can have adverse effects on the economy as a whole, in other countries, including India. A
loss of investor confidence in the financial systems of other emerging markets may cause volatility in
Indian financial markets and indirectly, in the Indian economy in general. Any worldwide financial
instability could also have a negative impact on the Indian economy, including the movement of exchange
rates and interest rates in India.
In the event that the current difficult conditions in the global credit markets continue or if the recovery is
slower than expected or if there any significant financial disruption, this could have an adverse effect on our
cost of funding, loan portfolio, business, prospects, results of operations and financial condition
.
PROMINENT NOTES
1. This is a public issue of NCDs by our Company aggregating upto ` 2,500 million with an option to retain
over-subscription upto ` 2,500 million for issuance of additional NCDs, aggregating to a total of ` 5,000
million.
2. For details on the interest of our Company’s Directors, please refer to the sections titled “Our
Management” and “Capital Structure” beginning on pages 82 and 23 of this Draft Prospectus,
respectively.
3. Our Company has entered into certain related party transactions, within the meaning of AS 18 as notified
by the Companies (Accounting Standards) Rules, 2006, as disclosed in the chapter titled “Financial
Statements” beginning on page 106 of this Draft Prospectus.
4. Any clarification or information relating to the Issue shall be made available by the Lead Managers and
our Company to the investors at large and no selective or additional information would be available for a
section of investors in any manner whatsoever.
5. Investors may contact the Registrar to the Issue, Compliance Officer, and the Lead Managers for any
complaints pertaining to the Issue. In case of any specific queries on allotment/refund, Investor may
contact Registrar to the Issue.
6. In the event of oversubscription to the Issue, allocation of NCDs will be as per the “Basis of Allotment”
set out in the chapter “Issue Procedure” on page 275 of this Draft Prospectus.
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