Annual Report 2012-13 - India Infoline Finance Limited

Inclusion Matters

CONTENTS 

Chairman’s Message 02 

Corporate Identity 04 

About IIFL Finance 06 

Highlights, 2012-13 08 

Our Strengths 09 

Industry Overview 13 

Business Segments 15 

Risk Management 19 

Inclusion Matters 21 

Corporate Social Responsibility 30 

Financial Literacy Agenda for Mass Empowerment 32 

Director’s Report 34 

Standalone Financial Statement 39 

Consolidated Financial Statement 72

Chairman’s Message 

It gives me immense pleasure to 

 

taking over as Chairman of India 

Infoline Finance Limited. During the 

 

economy faced more than its fair 

share of macroeconomic challenges. 

Although the economy grew at 

5% (as per the Central Statistical 

Organization), depreciating Rupee 

 

 

Indian economy. 

During the year under review, 

 

acceptable levels, but remained 

on the higher side. The Indian 

Rupee depreciated sharply due 

to an increasing current account 

 

 

part of the year and RBI responded 

by cutting interest rates. Looking 

forward, we are optimistic about 

the Indian economy and feel that 

the worst is behind us. In the new 

 

signs of abating and we expect 

the softening of interest rates to 

commence in the second half. 

The role played by NBFCs in 

 

customers, otherwise excluded 

by the banking channels, has 

been well acknowledged. Multiple 

committees including the Thorat 

Committee, FSLRC and the K.U.B. 

Rao Committee were set up by 

RBI and Ministry of Finance to 

study NBFC issues and concerns 

 

regulation. There is a focus on 

augmenting regulatory provisions 

governing NBFCs, the guiding 

principle being that of bringing the 

regulatory framework applicable to 

NBFCs at par with that of banks over 

a transition period. It remains to be 

 

form and whether attempts are made 

to extend to NBFCs few relaxations 

currently available to banks. 

The recommendations from these 

committees are aimed towards a 

tightening of operations; we believe 

 

for the industry in the long-term. 

An example is the prudential norm 

amended by RBI in 2012 specifying 

the Loan to Value limit to 60% for 

 

industry at large when gold prices 

corrected sharply in April 2013. We 

are concentrated on the retail side 

of gold loans and focused primarily 

on collections and risk monitoring, 

2 

| India Infoline Finance Limited

this has ensured a minimal impact of 

gold price reduction on our portfolio. 

A majority of your Company’s six lakh 

customers belong to the emerging 

retail segment, who we classify as 

individuals with an annual income 

of below ` 3 lakhs. We have been 

serving this segment extensively 

through small value loans. Even 

now, India is a relatively underbanked 

retail economy and many 

Indians still do not enjoy an access 

 

Your company aims to provide basic 

 

individuals. Financial inclusion is a 

part of our core strategy and not an 

 

inclusion as a ‘cost of business’ but 

as an opportunity. 

Through our pan-India network of 

1,446 branches in over 600 centres, 

we provide small value loans, 

distributing 3.8 mn micro-insurance 

policies as a group company. Over 

57% of our centres are located in 

semi-urban and rural areas. We have 

 

services to our custome and have 

 

initiative called Financial Literacy 

Agenda for Mass Empowerment 

(FLAME), covering about 30 mn 

readers of the print media and 

school children in addition to 

attendees of tax and accounting 

programme workshops. 

The Reserve Bank of India invited 

applications for the setting up of 

new private sector banks to expand 

 

across the length and breadth 

of the country. The India Infoline 

Group, with its distribution reach 

across the country and a large 

retail customer base, possesses the 

 

inclusion. The Company looks at the 

progression from an NBFC to a bank 

as a natural evolution. 

 

your Company continued to grow 

its loan book, despite challenging 

macroeconomic conditions, 

without compromising on the 

credit appraisal and underwriting 

processes. The year–on-year growth 

in the total loan book was 39%. Your 

Company’s loan portfolio rose from 

` 67.5 bn as on March 31, 2012 to 

` 93.8 bn as on March 31, 2013. 

Home loans/loans against property 

stood at ` 38.6 bn, gold loans 

portfolio stood at ` 38.6 bn, loan 

 

stood at ` 12.6 bn, and medical 

equipment loans stood at ` 3 bn. 

During the year under review, we 

incubated commercial vehicle 

(CV) loans and the outstanding 

loan portfolio was ` 741 mn. Your 

Company continued to maintain a 

high quality of assets and followed 

conservative provisioning at levels 

higher than statutory requirements. 

This was evident in low NPA 

levels. Gross NPAs continue to be 

maintained at similar levels of the 

overall portfolio while net NPAs were 

under 0.2%. Given the challenging 

macroeconomic conditions, your 

company’s performance was 

commendable. 

 

of its funds and increased banking 

relationships. We successfully raised 

` 5 bn through a public offering 

of Non-Convertible Debentures 

(NCD). The oversubscribed issue 

received an over-whelming response 

from public investors. The capital 

adequacy of your Company, as per 

RBI norms, stood at 21.60% as on 

March 31, 2013, higher than the 

RBI mandate of 15%, which helped 

diversify our resources. 

Your Company is aware of increasing 

threats in the Information Security 

domain. It took substantial steps 

to ensure that the Company was 

safeguarded against hacking 

attacks, data leakage and security 

breaches. IT and certain business 

 

ISO 27001 systems for practicing 

industry standard security 

implementations and processes. 

Your Company invested resources 

in implementing controls and 

continuously monitoring violations. 

Your Company deployed a Fraud 

Control application system for 

proactive risk management. This 

enabled access to databases 

of other large lenders and fraud 

detection based on application 

inconsistencies and other vital 

information. Other initiatives included 

the implementation of scorecards, 

policies for rural lending, business 

intelligence systems (underway), 

policies for the generation of priority 

sector loans and portfolio reviews/ 

scrubs with CIBIL. 

In the end, I would like to thank 

all our shareholders, customers, 

regulators, institutions, bankers 

and employees for their continued 

support towards the growth of your 

Company. 

V K Chopra 

Non Executive Chairman 

Annual Report 2012-13 | 

3

IIFL Group Today 

Overview 

India Infoline Limited (IIL), the 

parent company of India Infoline 

Finance Limited (IIFL) has the 

following businesses: 

Key Businesses 

Credit and Finance 

Wealth Management 

Financial Products Distribution 

Asset Management 

Equities, Commodities and 

Currency Broking 

Vision 

To become the Most Respected 

 

space in India. 

Values 

Team IIFL adheres to a set of 

values that can be summarised 

as GIFTS namely Growth, 

Integrity, Fairness, Transparency 

and Service. 

Growth 

We are driven to grow faster 

than the rest of the industry and 

encourage calculated risks and 

empowerment at all levels. 

Integrity 

We ensure utmost honesty and 

integrity, in letter and in spirit, 

in all our dealings with people – 

internal or external. 

Fairness 

We believe in fair dealings, 

devoid of any fear or favour, 

with all stakeholders including 

employees, customers and 

vendors. 

Transparency 

We believe in as much 

transparency as practically 

possible, with our stakeholders, 

media and public at large. 

Service 

We are a service organisation, 

committed to delight our 

customers with superior advice 

and service, delivered with 

humility and sincerity. 

2.1 mn 

No of customers 

3,820 

Business locations 

8 

Presence in countries 

14,000+ 

Team strength 

250+ 

Stocks covered 

₹400+ bn 

Wealth under advice 

4 


Awards 

Mr R Venkataraman received the award on behalf of IIFL at the D&B Equity Broking Awards, 2012 

Entrepreneur of the Year 

(Mr Nirmal Jain) - 2012 

Top Performer – Equity – 

FI Category – 2012 

Best Wealth Management 

House – India 

2011 & 2012 

Best Market 

Analyst 2009 & 2012 

Best Commodities 

Investment 2012 

Best Broking House 

With Global Presence 

2011 & 2012 


5

At IIFL Finance, we are different because 

we have extended the benefits of organized 

financing to small retail customers. 

Addressing their growing needs through 

home loans, gold loans, loan against 

property, commercial vehicle financing, 

capital market financing as well as 

healthcare and equipment financing. 

The IIFL brand is associated with trust, 

knowledge and quality service across India. 

But more importantly, the brand stands for 

timely assistance provided to the country’s 

under-banked customers. 

The result is a leadership in segments and 

brand visibility among retail, corporate, 

domestic and foreign institutional investors. 

6 


India Infoline Limited 


India Infoline 

Finance India Infoline Limited 

Finance Limited 

98.87% 100% 

India Infoline 

Housing Limited 

Engaged in housing 

Engaged in housing 

 

 

Overview 

India Infoline Finance Limited 

Overview 

(IIFL) is a subsidiary of India 

India Infoline Infoline Limited. Finance The company Limited was 

(IIFL) incorporated is a subsidiary in 2004 of as India India Infoline 

Infoline Investment Limited. Services The Private company Limited was 

incorporated and converted in into 2004 a public as India limited Infoline 

Investment company in Services 2007. Private Limited 

and converted into a public limited 

Products offered 

company in 2007. 

Home loans 

Products offered 

Home loans 

 

 

 

 

 

 

 

 

 

 

 

equipments 

 

SME and Trader loans 

equipments 

Loans secured against Gold 

SME ornaments and Trader loans 

Loans 

secured against Gold 

ornaments 

Loans secured against property 

 

 

Loans against secured securities against property 

 

against securities 

Presence 

The company has 1,446 

Presence branches 

 

The company’s has capital 1,446 market 

branches 

The through company’s direct sales, capital branch market 

 

network, retail and wealth teams. 

through direct sales, branch 

network, retail and wealth teams. 


7

This is what we 

achieved in 2012-13 

Performance 

Performance 

82% growth in interest income from ` 9.1 

bn in 2011-12 to ` 16.5 bn 

` 1.1 

bn in 2011-12 to ` 1.9 bn 

CAGR (%) 68.5 

67.47 

93.75 

CAGR (%) 83 

17.4 

 

4.77% increase in return on equity from 

7.29% in 2011-12 to 12.06% 

32.87 

5.2 

9.5 

 

0.07 bps reduction in gross NPAs from 

0.56% in 2011-12 to 0.49% 

Business 

39% growth in total loan portfolio from 

` 67.4 bn in 2011-12 to ` 93.7 bn 

Loan 

portfolio 

2010-11 

2011-12 

2012-13 

Revenue 

2010-11 

2011-12 


Segments 

Home loans and loan against property 

accounted for 41.17% of the total loan 

book. 

(` bn) 

(` bn) 

CAGR (%) 43% 

Profit 

after tax 

(` bn) 

 

Loans against capital market products 

 

stood at 13.52% in 2012-13 against 

11.87% in 2011-12 

 

to 3.28% of the total loan book against 

2.25% in the previous year 

1.1 

1.9 

29.9 

17.86 

21.6 

Funds management 

Capital adequacy ratio was maintained at 

21.6% (17.86% in the previous year), well 

above 15% required by RBI. 

0.9 

 

2010-11 

2011-12 


Capital 

adequacy 

ratio 

(%) 

The Company was rated ‘ICRA AA- 

 

(stable)’ by ICRA, ‘CARE AA-’ by CARE 

and CRISIL AA–(Stable) by CRISIL 

2.12% growth in net interest margin from 

2010-11 

2011-12 


7.43% in 2011-12 to 9.54% 

8 


Our strengths 

Legacy 

The parent company enjoys 

a strong brand recall among 

retail, institutional and 

corporate investors in India. 

The IIFL brand is associated 

with trust, knowledge, 

leadership and quality 

services. 

Asset quality 

The Company possesses a 

secured loan book; almost 

all its lending is backed by 

secured assets, acting as a 

cushion against the possibility 

of defaults. 

Robust system 

The Company’s robust credit 

approval mechanisms, credit 

control processes, audit and 

risk management processes 

as well as policies protect 

 

in a low gross NPA of 0.49% 

(0.56% in 2011-12). 

Extensive network 

The Company’s access to 

pan-India branches and large 

distribution network of its 

parent company enhances its 

understanding of the market 

and customer needs. 

Strong team 

The management team 

possesses a deep sectoral 

knowledge and experience. 

The members of the executive 

 

expertise in the delivery of 

products and services. 

Differentiated approach 

The Company is present in most 

major economic clusters of India 

and explores business penetration 

through a cluster-centric approach 

following a thorough understanding 

about the potential of the cluster. 

This knowledge is leveraged for 

customer acquisition, portfolio 

monitoring and the proactive 

 

helping manage our risks. 

Strong processes 

The Company possesses 

robust processes that 

enhance customer service 

and direct people interaction 

on the one hand while 

bringing about a culture of 

excellence (procedural and 

operational) on the other. 

Technology 

The Company leverages 

technology to integrate its 

business, generating real-time 

information that facilitates 

informed decision-making. 

 

The Company widened its 

borrowing sources (loans 

from banks, nonconvertible 

debentures and commercial 

paper). 


9

Inclusiveness 

through a 

retail focus 

In the course of our business, we lend to individuals and 

businesses, providing them with timely access to capital 

that helps them in their respective businesses and personal 

 

product portfolio catering to niche promising segments, 

 

home loans, loans against property, loans against securities 

 

Over the years, IIFL Finance addressed a growing capital 

appetite by enhancing lending across four key segments 

 

 

collaterals. 

10 


IIFL Finance reaches across the country to provide capital to 

customers where they need it. 

Inclusiveness 

through an 

extensive 

presence 

IIFL Finance leveraged the extensive branch network of its 

parent organization to penetrate deeper across more than 

900 Indian cities. 

We select the regions of our presence on the basis of their 

 

We intend to leverage this extensive distribution network by 

extending all products within our portfolio across the entire 

branch network. 

The Company increased its pan-India reach, addressing the 

needs of over 600,000 customers. 


11

Big 

numbers 

₹92.2 bn 

Total borrowing 

₹93.75 bn 

Loan book 

21.6% 

Capital adequacy ratio 

9.5% 

Net interest margin 

0.17% 

Net non-performing assets 

58.16% 

Cost to income 

1,446 

Branches 

12 


Industry 

overview 

INDIA’S ECONOMIC GROWTH DECELERATED FOR THE SECOND SUCCESSIVE YEAR. IT DECLINED FROM 6.2% 

IN 2011-12 TO 5% IN 2012-13, THE SLOWEST ECONOMIC GROWTH IN A DECADE. THIS DECLINE WAS DUE TO 

SHARPER-THAN-EXPECTED DECELERATION IN THE SERVICES SECTOR, A DISMAL PERFORMANCE BY THE 

AGRICULTURAL AND INDUSTRIAL SECTORS AND UNEMPLOYMENT WELL ABOVE PRE-CRISIS LEVELS 

India’s industrial output decline was 

led mainly by a contraction in the 

manufacturing, mining and capital 

goods sectors (proxy for investment 

activity). The dampened industrial 

sentiment could be attributed to high 

 

 

 

agriculture sector grew at 1.9% 

compared to 3.6% in the previous 

 


13

to 2.1% from 3.5% a year ago 

mainly due to slowdown in the 

manufacturing sector. The services 

sector, which constitutes 59% of 

the GDP, reported a 7.1% growth 

compared to 8.2% a year ago, mostly 

due to the lower growth estimate for 

trade, hotels and communication 

sectors. Per-capita income at 

current prices rose by 11.7% to 

` 68,757 in 2012-13 from ` 61,564 

in the previous year. Growth in total 

consumption, including private 

consumption fell to less than half at 

 

Investment growth, as measured by 

 

1.7% from 4.4% a year ago. 

Segmental overview 

Gold loans: India is among the 

largest gold consumers in the world 

with an annual consumption of 900 

tonnes. Over the years, gold loan 

 

to a high acceptance as collateral. 

The organised gold loan market 

witnessed a robust CAGR of over 

55% in India between FY 2008 and 

FY 2012; gold loans from banks 

witnessed a CAGR of 57.5% and 

NBFCs witnessed a CAGR of 98.5% 

during the period. Gold loans 

disbursed by NBFCs witnessed rapid 

growth even as banks dominate this 

market (72% market share, March 

2012). 

Healthcare: The Indian healthcare 

sector is estimated to reach US$ 

100 bn by 2015, growing 20% 

y-o-y (source: Fitch). The industry 

is expected to touch US$ 280 bn 

by 2020 on the back of increasing 

demand for specialised and quality 

healthcare facilities. For a growing 

economy, factors like lifestyle-related 

health issues, improving healthcare 

insurance penetration, government 

initiatives and increasing disposable 

incomes enhance optimism. The 

country witnessed the establishment 

of a world-class pharmaceutical 

manufacturing and vibrant 

biotechnology industry on the one 

hand and growth in medical tourism 

on the other, which catalysed health 

care spending and scope for related 

 

On the back of relatively low 

customs duty rates (9.2% to 25%) 

combined with an increasing number 

of healthcare centres specialising 

in advanced surgery, India offers 

substantial opportunities for the 

direct supply of high technology, 

specialised medical equipment, 

products and systems. 

The Ministry of Health & Family 

Welfare proposes that domestic 

funding should be increased to at 

least 2% of the GDP in the 12th Five 

Year Plan. India’s health sector was 

allocated ` 37,330 crore in budgetary 

estimates for 2013-14, a hike of 

8.24% over the previous year. 

Housing loans: India’s housing 

loan book is expected to witness a 

22% CAGR during 2013-15 for the 

following reasons (estimated by 

CARE Research): 

Softening of average borrowing 

rates 

Under-penetrated housing loan 

market (with mortgage as a 

percentage of GDP at 9% versus 

20% in China and 77% in USA) 

Continued traction towards Tier II, 

III & IV cities/loans less than ` 25 

lakhs 

Customised product offerings 

Loan against property: Getting 

loans against collateralized property 

are cost-effective. Financiers 

exercise adequate diligence in 

property appraisal and offer up to 

70% of the value as loan. In this 

secured loan (collateralised), the 

customer is eligible for a higher 

amount compared to an unsecured 

personal loan after paying 

administrative and processing fees 

(usually 0.5-1.5% of the loan value). 

Typically, the tenure for such a 

loan is one to nine years, but some 

companies extend it to 15 years if the 

loan amount is high. The interest rate, 

 

from 12-16%, which makes them 

cheaper than personal loans. 

Loan against capital market 

instruments: With consumer 

spending on the rise and loans 

getting expensive, individuals are 

 

 

shares fall under this category. 

The advantages here include 

convenience and immediate liquidity. 

The growth in the retail loan market 

is the result of a rise in consumer 

spending. Loan against shares can 

be obtained by pledging shares 

owned by the individual with the 

lending agency. The performance 

of this product depends largely 

on the performance of the capital 

markets. The volatility in the markets 

and negative sentiments impacted 

product performance in 2012-13. 

14 


Business segments 

A. Mortgage loans 

35% 

 

₹40.5 bn 

Assets under management 

Highlights, 2012-13 

 

period ending March 31, 2013 stood 

at ` 40.5 bn, 22.2% higher than the 

previous year 

 

were directed toward affordable 

housing 

Overview 

Mortgage loans comprise retail and 

corporate mortgage loans, which in 

turn can be bifurcated into housing 

loans and loans against property. 

 

the purchase of apartments, home 

construction, extension, apartment/ 

home improvement and land 

acquisition. 

 

usually availed for working capital 

requirements, for business use, 

acquisition of new property and 

construction projects. 

The home loan segment was 

commissioned in 2009. The 

Company grew its business exposure 

and widened its experience. Loans 

against properties are expected to 

grow irrespective of the prevailing 

economic situation. The company’s 

focus has been on small business 

groups, as this segment of customers 

dominates the market. The company 

has built strong in-house capabilities 

to assess income earning capacity 

and mitigate risks. 

IIFL plans to reach wider and 

deeper, catering to a large segment 

needing handholding, especially 

in documentation, but otherwise a 

lucrative segment aspiring towards 

a luxurious lifestyle. The company 

provides them with attractive options 

within the organised sector. 

IIFL mortgage possesses the 

infrastructure to reach customers 

who need funding for low-income 

housing acquisition. IIFL also touches 

 

customers. This would not have been 

possible without a strong team. 

IIFL mortgage has four dedicated 

branches in addition to sharing 

infrastructural facilities with other 

NBFC businesses. 

Behind the business 

The Company’s business is backed 

by strong in-house collection 

and legal teams with a focus on 

 

 

prescribed and independent fraud 

control checks. The Company also 

undertakes credit and background 

checks for each borrower; it provides 

legal and technical evaluation of 

the security. The Company relies on 

external appraisals of all properties 

(including valuations by international 

property consultants) in case of large 

ticket mortgage loans. 

Strategy 

Going ahead, the Company aims 

to carve out a larger market share. 

The mortgage business’ biggest 

advantage is its presence through 

1,446 branches across India. The 

Company expects to strengthen 

the mortgage segment without 

compromising asset quality and 

 


15


B. Gold loans 

35% 

 

₹41.6 bn 



As on March 31, 2013 gold loans 

accounted for 41% of the company’s 

consolidated loan book with ` 41.6 

bn of assets under management. 

The Company added close to 150 

branches, taking the total number 

to 1,446 across more than 600 

locations. As a strategy, we entered 

regions through large cities and 

gradually penetrated the smaller 

ones. 

The Company undertook extensive 

employee training; it engaged 

with leading training groups and 

academic institutions for the delivery 

of employee training programmes 

It implemented ‘Ace’, a transactioncentralised 

software. 

It strengthened regulatory 

compliances, capable of addressing 

regulatory changes with ease and 

speed. 

Overview 

The Company entered this space 

to address the growing demand for 

 

 

customers in big as well as semiurban 

and rural areas. The company 

 

needs of small businessmen, 

vendors, traders, farmers and the 

salaried class, who for reasons 

of convenience availed of the 

Company’s credit facilities rather than 

seeking loans from banks. 

IIFL implemented various schemes 

to suit borrowing requirements. The 

 

of gold jewellery was typically based 

 

content, valued as per centralised 

policies and guidelines. 

The average loan tenure was four 

months with a maximum tenure of 

 

up to 60% of the gold jewellery 

value, which adequately protected 

the company from gold price 

 

The company’s business was 

differentiated on account of 

competitive rates and customised 

 

options. The company’s gold loan 

branches were situated in high 

concentration residential areas, 

enhancing customer convenience. 

Safety and security 

When the company entered this 

business, it distinguished itself 

through business transparency and 

the online availability of relevant 

information. Each branch was 

provided a minimum of two security 

cameras, sensors, panic buttons, 

alarm and sensors connected 

 

telephone numbers (including the 

number of the nearest police station). 

The company maintained a 60-day 

CCTV camera recording and a 

 

 

technology to open the vault in 

addition to documenting customer 

 

industry. The company’s branches 

are guarded 24x7 and it engaged 

 

the police, army and navy to visit all 

branches monthly and undertake 

 

 

 

to verify gold purity and personal 

discussions). All the company’s 

valuers possess more than a year’s 

experience. 

The company’s gold loan book is 

41% of its total lending book, a 

sound foundation for growth and 

de-risking. 

Strategy 

The company’s gold loan branches 

were positioned as a one-stop 

 

the portfolio of the individual but also 

prospective family opportunities. 

To reinforce its service standard, 

the company embarked on the 

implementation of Customer 

Relationship Management software. 

16 



C. Healthcare financing 

3% 

 

₹3.1 bn 



 

` 3,072 mn; all equipment funded 

were income-generating. 

 

portfolio grew 103%. 

Overview 

 

 

 

ancillary and refurbished equipment 

and receivables. 

The company provided healthcare 

 

pathology centres, nursing 

homes, hospitals and medical/ 

dental colleges against security of 

equipment, personal guarantee and 

mortgage of property. 

 

located within the existing branch 

network of the mortgage and other 

loan branches. The sales leads 

were originated through branches 

spearheaded by independent 

regional sales managers, 

associations with direct sales agents 

and alternate channel partners. The 

preferential tie-ups with large wellreputed 

manufacturers of medical 

equipment helped generate quality 

leads. The business now possesses 

the capability to source from all IIFL 

 

distribution capabilities. 

Strategy 

The company expects to outperform 

the market by at least 30%, leverage 

existing branches to generate 

additional revenues, extend deeper 

into under-tapped markets and 

extend presence to semi-urban and 

rural areas. 


17


D. Capital Market Finance 

12% 

 

₹12.7 bn 



Assets under management grew 

58.33%% to ` 12.7 bn. 

Capital market loan origination was 

sourced through direct sales, branch 

network, retail and wealth teams, as 

of March 31, 2013. 

Overview 

 

loans against securities, margin 

funding for broking clients, IPO 

 

 

 

were secured by the pledge of listed 

equity shares, vested ESOPs, mutual 

fund units, structured notes bonds, 

debentures and collaterals approved 

by the credit policy. 

The maximum tenure for capital 

 

the average tenure was three to 

four months. The target customers 

comprised promoters, high net 

worth individuals, corporates and 

 

entities, private trusts or partnership 

of individuals and limited liability 

partnerships. 

 

in our margins, rapid execution of 

structured and unique transactions, 

higher single party and group 

exposure over peers, competitive 

interest rates and best-in-class loan 

management system, ensuring a 

superior client experience. 

Collateral and risk 

management 

The prices of securities are 

updated daily on the basis of the 

 

stock exchanges. On volatile days, 

 

clients are intimated, in case of any 

margin shortfalls. 

The collateral in the loan 

management system is matched with 

securities lying with depositories on 

a daily basis through an automated 

process. 

Margin calls are sent to clients 

daily; in the case of a shortfall when 

the client was unable to meet margin 

calls, the loan value was realised 

through the sale of securities. 

18 


Risk management 

At IIFL, risk mitigation is a comprehensive and integrated procedure that provides a clear 

understanding of strategies, policies, initiatives and norms, leading to structured reporting 

and control. 

ANY RISK ARISING 

FROM THE FAILURE 

OF A BORROWER 

TO HONOUR HIS 

OR HER FINANCIAL 

OR CONTRACTUAL 

OBLIGATIONS TO THE 

COMPANY, NEEDS TO 

BE MONITORED. 

Risk mitigation 

The Risk Management Committee and 

Asset Liability Management Committee 

(ALCO) comprising Directors and senior 

 

controls and positions are in place. 

Ongoing reviews of the risk 

management processes covering credit 

and underwriting controls, operations, 

technology and compliance risks is 

undertaken by the Risk Committee on a 

periodic basis. 

Funding policies are reassessed from 

time-to-time, keeping in mind factors 

like interest rate movements and desired 

 

funds, wholesale / retail funds, money 

market funding, among others. 

In case of margin funding, when 

the credit limit is breached, a systemgenerated 

alert makes it possible for the 

Company to liquidate the client’s holdings, 

thereby reducing risks. 

A stock-based categorisation allows 

limits to be laid down based on the 

liquidity and quality of the stock in 

question. 


19

ANY RISK ARISING 

FROM ANY ECONOMIC 

EVENT WITH A 

GLOBALLY PERVASIVE 

IMPACT CAN HAMPER 

THE COMPANY’S 

PROFITABILITY 


IIFL possesses multifarious revenue 

streams across product lines and four 

distinct businesses, which are inherently 

linked to the capital and non-capital 

markets. 

IIFL’s presence in multiple product 

segments serves as a natural hedge 

against a downturn in any particular 

sector. 

The Company’s presence in the 

relatively volatile equity segment is 

balanced by its presence in the relatively 

 

A FAILURE ON THE PART 

OF THE CUSTOMER 

TO REPAY IN RESPECT 

OF THE INTEREST 

OR INSTALMENT OF 

PRINCIPAL FOR A 

SPECIFIED PERIOD OF 

TIME MAY RESULT IN 

MASSIVE WRITE-DOWNS 

AND ADVERSELY 

AFFECT ASSET 

QUALITY. 


Our NBFC loan book comprises almost 

entirely of secured lending exercises 

against tangible collaterals. 

Asset quality in the lending portfolio is 

 

(NPAs) at less than 1%, as on March 31, 

2013. 

Constant audit checks facilitate the 

maintenance of a superior asset quality. 

INABILITY TO MEET 

THE FUNDING 

REQUIREMENTS AT 

ACCEPTABLE COSTS 

COULD DISRUPT THE 

NORMAL FUNCTIONING 

OF THE BUSINESS. 


The Company enjoys diverse funding 

sources, widening the lending portfolio 

and reducing dependence on any single 

source. 

The funding is addressed through 

a prudent combination of borrowings 

(working capital limits from banks), nonconvertible 

debentures and commercial 

papers. 

The Group’s ability to raise long-term 

resources at competitive rates is the vital 

cog in the IIFL wheel. Case in point: India 

Infoline Finance Ltd raised ` 5 bn through 

a retail NCD issue in 2012 in only three 

days. 

Our short term debt program is top 

rated A1+ by ICRA. ICRA and CRISIL has 

rated our long term debt as ICRA AA- and 

CRISIL AA- respectively. 

DEPENDENCE ON ONE 

SINGLE BUSINESS 

MAY DRY UP THE 

COMPANY’S REVENUE 

STREAM IN CASE OF 

MARKET VOLATILITY 


 

from the fact that its revenue streams are 

well spread out. 

Improvements in secured-lending 

businesses contribute to the overall 

earnings. 

Return on net worth for IIFL Finance 

increased to 12.1% from 7.6% in the 

previous year. 

20 


Inclusion matters 

100 small customers speak

We have surveyed and taken testimonials of IIFL 

customers across the country. Watch the complete audio 

visual on our website www.indiainfoline.com/inclusion 

A few excerpted transcribes placed below: 

“…I needed money a couple 

of times and approached 

IIFL, they gave me loan on 

the basis of my identity card 

without any other documents. 

Every time I go to IIFL, as 

my work is done hassle free 

there.” 

Govardhan Singh (Kishangarh, 

Rajasthan) 

Supervisor, Marble Unit, IIFL 

Customer 

“The system at IIFL is very 

good because they charge 

interest per day. At some other 

companies, the system is such 

that they charge minimum 

three months interest that is 

why I do not deal with them.” 

Rajesh Kumar Verma (Agra, 

Uttar Pradesh) 

Owner - Small Scale Shoe 

Manufacturing Unit, IIFL Customer 

22 


Inclusion matters.... 

“I needed money urgently, so 

I took a gold loan from IIFL. 

They explained everything 

(terms and conditions) very 

well to me and released the 

amount immediately.” 

Jayesh Mehta (Uran, 

Maharashtra) 

Store Owner, IIFL Customer 

“I am into shoe manufacturing 

and need lots of money to 

run the business. I prefer IIFL 

 

interest is 1.5 to 2%... IIFL also 

helps people in starting their 

own business. The company 

has very good customer 

service.” 

Tajuddin (Agra, Uttar Pradesh) 

Raw Material Supplier, Leather Shoe 

Industry, IIFL Customer 


23


“This is the village’s main city. 

 

any bank or institution comes 

here the villagers will be 

 

Hiralal Gujar (Kishangarh, 

Rajasthan) 

Worker, IIFL Customer 

“From what they explained to 

me about the interest rates 

 

and by comparing what I knew 

about the prevailing rates in 

the market, and about other 

companies; I liked the service 

of IIFL…” 

Manisha Sarkar (Kolkata, West 

Bengal) 

Homemaker, IIFL Customer 

24 



“… I have two shops in Uran. 

I wanted loan but the bank 

did not give me. So I went to 

 

dreams of making my own 

house…” 

Sarita Gupta (Uran, Maharashtra) 

Shop Owner, IIFL Customer 

“I invested ` 25,000, and the 

interest it helps pay for my 

son’s college fees…I have 

to take care of two kids’ 

education, and there are 

seven other mouths to feed at 

my home…” 

Surendra Namdeo Bhoir (Uran, 

Maharashtra) 

Autorickshaw driver, IIFL 

Customer 


25


“I have been dealing with IIFL 

for one-and-a-half years. First 

I took a gold loan from them, 

after repaying that, I took a 

loan against property... there 

are less formalities here... and 

the process was simple, which 

I liked a lot…” 

Shivcharan Agarwal 

(Kishangarh, Rajasthan) 

Textile Shop Owner, IIFL Customer 

“… they explained to me 

very clearly, like you would 

to a child. And because they 

explained so well, I now know 

exactly how much I have to 

pay, and how much loan to 

take, and how long the policy 

will cover me.” 

Dilip Damodar Kadu (Uran, 

Maharashtra) 

Journalist, IIFL Customer 

26 



“There is a young boy in 

my neigbourhood who was 

working with Saradha. He 

advised me to invest in 

Saradha as the returns will 

be much more… However, I 

told him if he can get me to 

invest in some trusted, reputed 

Company like I have done with 

 

by investing with IIFL… I am 

happy with this… “ 

Sujit Nag (Kolkata, West Bengal) 

Cable TV operator, IIFL Customer 

“… I needed money for my 

son’s higher education. I 

was very disturbed. But I got 

loan in one and a half hour. ` 

210,000. I was happy that at 

1.9% interest rate I received 

the loan…” 

Tanmoy Chakraborty (Agartala, 

Tripura) 

IIFL Customer 


27


 

machine from IIFL and the loan 

procedure was hassle free. 

 

all my queries were handled 

telephonically without need for 

personal visit every time and 

the staff are very helpful.” 

Dr. S K .Vijayati (Kishangarh, 

Rajasthan) 

Surgeon, Saroj Hospital, IIFL 

Customer 

“We approached IIFL as we 

were desperately looking 

for funds and I received 

timely help from them. All 

documentation issues were 

sorted out within no time and 

the team of IIFL is excellent.” 

Kinner Nayak (Mumbai, 

Maharashtra) 

Architect, IIFL Customer 

28 



“… I did a course in beauty 

treatment. But I could not start 

a parlour for days due to lack 

of funds. One day, I came to 

know about IIFL Loan branch 

from a friend… my dreams are 

 

Jhuma Chakraborty (Agartala, 

Tripura) 

Beauty parlour owner, IIFL 

Customer 

“It is very easy to avail money 

from IIFL as it is hassle free 

and this is the reason every 

time I go there.” 

Mohd Multazim Qureshi (Agra, 

Uttar Pradesh) 

Small Scale Owner, Leather Shoe 

Industry, IIFL Customer 


29

Corporate Social Responsibility 

Precious gift of Life: Blood donation drive for 5th year in a row 

‘Give the gift of life, Donate Blood’ 

was the theme this year at IIFL’s blood 

 

blood donation drive took place at the 

IIFL Towers, Near Lifeline Hospital, 

Chennai and in various other parts of 

Tamil Nadu. 

Over 400 people came forward 

in Tamil Nadu to donate blood 

during the blood donation drives 

across the state conducted by 

IIFL Foundation. The camp was 

conducted in coordination with Mr. 

R Rajkumar, the Asian delegate of 

the International Federation of Blood 

Donor Organisations and Secretary of 

the Indian Society of Blood transfusion 

and immunohematology. 

Every donor was given a free medical 

check-up prior to the blood donation. 

Each of them were examined for 

 

ensure that none of them suffer from 

anemia, high blood pressure etc. 

Besides the blood donation camps 

conducted in IIFL premises across the 

country, our employees proactively 

donate blood at various camps held in 

 

encouraging sign. 

Financial literacy at NASEOH 

 

literacy for students of National 

Society for Equal Opportunities for the 

Handicapped (NASEOH). Individual 

attention was given to these students 

by volunteers of KJ Somaiya Institute 

who we partnered for imparting 

 

enabled. This year 13 students 

 

course in December, 2012. 

H Nemkumar and Nirmal 

Jain Scholarship 

India has a large number of gifted and 

deserving students who are unable 

to avail of a high-quality learning 

experience from reputed institutions 

 

other constraints. Young India Fellows 

reaches out to such students. The 

YIF scholarships have been made 

possible by generous donations by a 

stellar set of individuals including Mr. 

Nirmal Jain and Mr. H Nemkumar on 

behalf of IIFL Foundation. 

Sponsoring career guidance 

in Jawahar 

IIFL Foundation joined hands with 

a social development organization 

working across the Thane district 

of Maharashtra with tribal and rural 

communities. IIFL is actively helping 

in providing career guidance to the 

students of High School and Junior 

colleges in Walvanda, Jawhar. 

30 


Barsana camp 

For the last few years, IIFL Foundation 

has been sponsoring the Barsana 

camp, which has been successfully 

organized by the Bhaktivedanta 

Hospital. Like earlier years, besides 

the IIFL Foundation providing around 

` 12 lakhs for the camp, the seniors 

in the company have also donated 

generously a substantial amount for 

the noble initiative. 

Since 1992, the hospital has been 

conducting this free Eye and Dental 

camp at Barsana, in Mathura district, 

about 150 kms from Delhi. Thousands 

of villagers, majority of them above 60 

 

these camps. 

The camp started on Jan 29 and the 

screening went on till Feb 1 2013. The 

surgeries then continued till Feb 8. 

Over 2,950 patients were screened 

out of which 1,250 patients were 

 

& procedures. 

Around 800 patients were operated 

in the initial week while the rest were 

operated over a fortnight. The patients 

later came for follow ups after 40 

days where they received a pair of 

spectacles along with medicines. 

Also about 1,980 patients attended 

the Dental camp between Jan 29 

and Feb 1. All related procedures like 

 

performed by the Dental team of 45 

members consisting of Dentists and 

other Para medical staff. The hospital 

gave 120 dentures on the spot to the 

needy patients and active follow up is 

being done. 


31

FLAME 

(Financial Literacy Agenda for Mass Empowerment) is an IIFL Foundation 

initiative to promote financial literacy amongst the masses in order to make 

them an integral part of India’s spectacular growth story. 

Rajasthan 

Andhra Pradesh 

Kishangarh is considered the marble capital of India. IIFL 

has initiated a series of activities to bring a meaningful 

impact here. IIFL organized a session on nuances of 

taxation with reference to the marble industry. Financial 

literacy sessions were organized for the marble trade 

and marble artisans and labourers too. Besides Free 

Personal accident insurance cover, all attendees were 

given a copy of the best-seller ‘108 Mantras for Financial 

Success’ in Hindi. 

Besides an educational presentation on the practical 

aspects of money management, personal taxation and 

investing, the audience at Gudivada & Singarayapalem, 

 

experts from Mumbai and Hyderabad. Special help 

 

planning and tax planning. All attendees were given a 

free personal accident insurance cover worth ` 1 lakh 

each. 

32 


Financial Literacy for Schools 

Over 50,000 school students from nearly 200 schools enrolled in the FLAME education programme. 

Even some teachers participated in the financial literacy initiative. Response came from schools across 

the country including Andaman & Nicobar Islands and Union territory of Lakshwadeep. 

Mumbai Bangalore Teachers also participate 

Financial Literacy for Corporates 

 

 

factory premises at Chembur. The course content included Importance of saving & Investing, Tax & tax planning, Need for 

Retirement planning. 


33

Directors’ 

Report 

 

 

Standalone Financial Results: 

(In Mn) 

Particulars 2012-13 2011-12 

Gross Total Income 16,939.82 9,103.70 

Less: Expenditure 14,398.56 7,663.71 

2,541.26 1,439.99 

Less: Taxation - Current 985.23 506.87 

- Deferred (194.58) (80.05) 

- Short Provision of Tax for earlier year 3.12 (5.34) 

1,747.49 1,018.51 

Consolidated Financial Results: 

(In Mn) 


Gross Total Income 17,371.71 9,535.87 

Less: Expenditure 14,634.07 8,034.16 

2,737.64 1,501.71 

Less: Taxation - Current 1,042.23 528.15 

- Deferred (194.88) (81.74) 

- Short Provision of Tax for earlier year 3.12 1.49 

1,887.16 1,053.81 

34 


WHEN IT’S ABOUT MONEY.. 

Review of Business: 

Notwithstanding India’s macroeconomic downtrend and 

 

India continues to grow at a healthy pace. Your Company 

has a de-risked business model, with multiple products 

spread over a wide geography, and is well placed to 

participate in the industry growth. 

Your Company’s loan book during the year has grown 

to ` 93,750 mn from ` 67,470 mn in the previous year. 

Home loans and loan against property constituted 41%, 

Gold Loan 41%, capital market products 13.52% and 

medical equipment constituted 3.28% of the loan portfolio. 

The newly started Commercial Vehicle Loan portfolio 

constituted nearly 0.79% of loan portfolio. Our unsecured 

portfolio of personal loans, which was discontinued in 

2008 stood at 0.01% of the loan portfolio. 

On a consolidated basis, the Company’s income 

` 17,371 mn and 

` 1,887 mn during 

the year. 

The Company’s product offerings include margin funding, 

home loan & mortgage loans, loan against securities, gold 

 

vehicle loans. During the year under review, your Company 

received registration from Pension Fund Regulatory and 

Development Authority (“PFRDA”) to act as “Points of 

Presence (PoP)” under National Pension System (NPS). 

This will enable IIFL to directly distribute pension products 

 

citizens, except Government Employees covered by NPS, 

and enable the common public access to their long term 

pension needs. 

 

driven by the Company’s capability to originate retail and 

wholesale assets against collateral of property through its 

distribution network and scaling up of gold loan portfolio 

through nationwide branches. The loan against securities 

book tends to be more volatile depending on capital 

market sentiment. 

The regulatory changes brought in the gold loan segment 

by way of reduction in LTV and clarity on auction process 

contributed to higher margin of safety of the loan portfolio 

and streamlining of the recovery and collection processes. 

A distinctive feature of the Company’s loan book has 

been the exceptional degree of its soundness. Despite 

a substantial expansion of the loan portfolio, gross nonperforming 

assets (NPAs) were contained at ` 459 mn 

as on 31st March 2013, constituting 0.49% of total loan 

portfolio. Net NPAs remained at 0.17% of the total loan 

portfolio. 

Public Issue of Debentures: 

During the year under review, your Company successfully 

completed the Public Offering of Unsecured Redeemable 

Non-Convertible Debentures (“NCDs”) aggregating to 

` 5,000 mn (the “Issue”) in the nature of subordinated debt 

to strengthen the capital adequacy. The issue received 

over whelming response from the public investors and was 

oversubscribed. These NCDs are listed and traded on the 

National Stock Exchange and Bombay Stock Exchange. 

Securitisation of Loan portfolio: 

During the year under review, your company securitised 

loan portfolio of ` 7,084 mn in compliance with the revised 

guidelines issued by RBI to NBFCs. 

Dividend 

During the year 2012-13, your Company declared and paid 

interim dividend of ` 2.5 per equity share (face value of 

` 

of dividend payout (including dividend distribution tax and 

surcharge) was ` 

Transfer to Reserve: 

During the year 2012-13, the Company transferred ` 350 

 

as required under the provisions of Section 45 IC of The 

Reserve Bank of India Act, 1934. 

Deposits: 

The Company has not accepted any Deposits within the 

meaning of Section 58A of the Companies Act, 1956 and 

the Rules made there under. 

Risk Management and Internal Controls: 

Management of wide range of risks is an integral part 

of your Company’s business. Your Company has always 

remained very cautious while taking risks to ensure long 

term sustainability of your Company. Your Company has a 


35

obust and integrated Risk Management system to ensure 

 

aggregated, mitigated and monitored effectively. 

Your Company has Risk Management Committee in 

 

the Company. The Company has put in place policies 

and standard operating procedures for each segment 

of lending business. All the loan proposals are routed 

through a very stringent risk assessment process. Team 

 

proposals at various stages and during the assessment 

process all the relevant information from formal and 

informal channels are collected to arrive at an appropriate 

decision. Further, the credit proposals are considered 

and approved by the multi level Credit and Investment 

Committees consisting of directors of the board / HODs. 

Your Company’s internal policies are more conservative 

and stringent than the minimum regulatory requirement. 

Your Company also follows best industry practices in 

the area of risk management to reduce the possibility 

of losses. For portfolio risk management, various caps 

are stipulated based on company’s risk appetite. Your 

 

ensure that concentration risk in terms of single borrower, 

group, industry and geography can be mitigated. 

Your Company keeps close track of macro economic 

development including changes and its impact on 

movement in interest rate, foreign exchange rate and 

liquidity position in the market. Your Company has Asset 

Liability Management Committee (ALCO) and Board Level 

Supervisory Asset-Liability Committee in place, which 

periodically reviews SBR, borrowing mix, liquidity, funding, 

 

lenders and product mix coupled with prudent lending 

practices ensure that adequate funding is made available 

to your Company at all times. For managing operational risk, 

 

policies and procedures in alignment of your Company’s 

business and needs. It is continuously monitored through 

effective control system. Checks and balances are in 

 

 

external communication system, your Company ensures 

that prompt action is taken in case of need to minimize the 

losses. To minimize losses from information security risk, 

your Company focuses on up gradation of IT infrastructure 

in line with the best emerging practices. 

The Company has invested in ensuring that its 

internal audit and control systems are adequate and 

commensurate with the nature of our business and the size 

of our operations. The Company has retained a reputed 

 

The Company also had in state a few specialized Audit 

 

critical functions such as KYC process, branches audits, 

and loan documentations audits etc. The Company also 

 

 

The internal team undertakes special situation audits 

and follows up on implementation of Internal Auditors’ 

recommendations. Besides this the company engages 

specialists/consultants to undertake certain focused 

areas such as credit audit, vigilance audits etc. The 

 

/ implementations are reviewed by the top management 

and Audit Committee at regular intervals. The internal 

processes have been designed to ensure adequate 

checks and balances at every stage. The Company also 

 

by regulatory authorities and the reports are submitted to 

the regulators periodically. 

Corporate Governance: 

The Company has fully complied with the Corporate 

Governance Guidelines for NBFCs issued by Reserve 

Bank of India vide circular No.DNBS(PD) CC No. 

94/03.10.042/2006-07 dated May 8, 2007. In accordance 

with the said Corporate Governance Guidelines, the 

Company has put in place the following committees and 

ensures best corporate practices to increase the investors 

 

complied with all the norms prescribed by the Reserve 

Bank of India (RBI) including the Fair practices, Anti money 

laundering & know your customer (KYC) guidelines. 

Audit Committee: 

As per the requirements of section 292A of the Companies 

36 



Act, 1956, and the Company has constituted an Audit 

Committee comprising of following Directors: 

a) Mr. Nilesh Vikamsey (Chairman and Independent 

Director) 

b) Mr. M N Singh (Independent Director) 

c) Mr. Sunil Kaul (Non Executive Director) 

Nomination Committee 

a) Mr. M N Singh (Independent Director) 

b) Mr. Nilesh Vikamsey (Independent Director) 

c) Mr. Nirmal Jain (Director) 

d) Mr. R Venkataraman (Director) 

Risk Management Committee 

a) Mr. Sunil Kaul (Non Executive Director) 

b) Mr. Nilesh Vikamsey (Independent Director) 

c) Mr. Nirmal Jain (Director) 

d) Mr. V K Chopra (Independent Director) 

 

Assets and Liabilities Committee 

a) Mr. Sunil Kaul (Non Executive Director) 

b) Mr. Nirmal Jain (Director) 

c) Mr. V. K. Chopra (Independent Director) 

 

All the above Committees regularly meet and review the 

policies and status. 

Your Company is broadly complying with the requirements 

of the Corporate Governance Voluntary Guidelines, 2009 

issued by the Ministry of Corporate Affairs, Government 

of India and is in the process of implementing other 

suggestions. 

Regulatory Compliance: 

The Company has complied with all the applicable 

guidelines prescribed by RBI for NBFCs regarding 

accounting standards, prudential norms including 

income recognition, capital adequacy, and guidelines on 

Corporate Governance etc. 

Capital Adequacy: 

As a result of the increased leveraging, your Company 

had Capital to Risk Assets Ratio (CRAR) of 21.60% as on 

March 31, 2013, which was well above the minimum CRAR 

of 15% prescribed by the Reserve Bank of India. 

Directors: 

In accordance with the provisions of Section 255 and 256 

of the Companies Act, 1956 and in terms of applicable 

provisions of the Articles of Association of the Company, 

Mr. Nilesh Vikamsey and Mr. R. Venkataraman, Directors 

of the Company retire by rotation and being eligible, offer 

themselves for re-appointment. 

 

Director resigned from the Board of your Company. 

Your Directors place on record their appreciation for 

the valuable services rendered by Mr. Purwar and the 

guidance received from him during his tenure as the 

 

to her retirement from the services as Whole Time Director 

& CEO. 

Mr. V K Chopra and Mr. Mukesh Kumar Singh have 

been appointed as Additional Directors of the Company 

designated as Non Executive Chairman and Executive 

Director respectively. As per the provisions of Section 260 

of the Act, Mr. Chopra and Mr. Singh holds the position 

till the date of ensuing Annual General Meeting of the 

Company. The Company has received notice in writing 

from a member under Section 257 of the Act, proposing 

appointment of Mr. Chopra and Mr. Singh as Directors of 

the Company. The proposal to appoint Mr. Chopra and 

Mr. Singh as Directors of the Company is recommended 

for shareholders’ approval. 

Directors’ Responsibility Statement: 

As required under the Section 217(2AA) of the Companies 

Act, 1956, your Directors declare and certify that: - 

(a) in the preparation of the annual accounts, the 

applicable accounting standards, have been followed 

(b) the Board of Directors have selected the accounting 

policies and applied them consistently and made 

judgments and estimates that are reasonable and 

prudent so as to give a true and fair view of the state of 

 

 

 

care for the maintenance of adequate accounting 

records in accordance with the provisions of the 

Companies Act, 1956 for safeguarding the assets of 


37

the company and preventing and detecting fraud and 

other irregularities. 

(d) the Board of Directors have prepared the annual 

accounts on a going concern basis 

Auditors: 

Messrs Sharp & Tannan Associates, Chartered 

Accountants, Statutory Auditors of the Company retire at 

the conclusion of the ensuing Annual General Meeting 

and being eligible offers themselves for re-appointment. 

 

Messrs Sharp & Tannan Associates, to the effect that they 

are eligible to be appointed as the Statutory Auditors of 

the Company. 

Your Board and Audit Committee recommend appointment 

of Messrs Sharp & Tannan Associates as the Statutory 

 

General Meeting to the next Annual General Meeting. 

Subsidiaries: 

As on March 31, 2013, the Company has one subsidiary, 

namely India Infoline Housing Finance Limited. 

Pursuant to the general exemption granted by the Ministry 

of Corporate Affairs vide circular dated February 8, 2011, 

the Board of Directors had at their meeting held on May, 

 

of all the subsidiaries of the Company along with that of 

 

Loss Account, and Report of the Board of Directors and 

Report of the Auditors of each of the subsidiary Companies 

are not attached to the accounts of the Company for 

 

these documents/details upon request by any member 

of the Company. These documents/details will also be 

available for inspection by any member of the Company 

 

of the concerned subsidiaries. As required by Accounting 

Standard - 21 (AS-21) issued by the Institute of Chartered 

 

statements included in this Annual Report incorporates the 

 

of the Company’s subsidiaries is also included in this 

Annual Report. 

Conservation of Energy, Technology 

Absorption and Foreign Exchange Earnings 

and Outgo: 

The Disclosure of Information on Conservation of Energy, 

Technology Absorption etc, required to be disclosed in 

terms of Section 217 (I) (e) of the Companies Act, 1956 

read with the Companies (Disclosure of Particulars in the 

Report of the Board of Directors) Rules, 1988 have not been 

 

industry, and has not carried on any manufacturing activity. 

The operations of the Company are not energy intensive. 

However, it is the policy of the management to keep itself 

 

the Company is operating and to ensure that the Company 

uses the most suitable technology. 

The Company had no foreign exchange earnings and 

outgo during the year. 

Particulars of Employees: 

There are no employees who are in receipt of remuneration 

 

Section 217(2A) of the Companies Act, 1956, read with 

Companies (Particulars of Employees) Rules, 1975. 

Acknowledgements: 

Your Directors take this opportunity to thank the Reserve 

Bank of India, Banks and Financial Institutions and other 

stakeholders for their continued support and assistance 

during the period under review. Your Directors would also 

like to thank the employees for their dedication towards the 

growth of the Company. 

For and on behalf of the Board 

Place: Singapore 

Dated: May 10, 2013 

V K Chopra 


38 



Independent Auditor’s Report 

To the Members of 


Report on the Financial Statements 

 

 

st 

 

 

 

Management’s Responsibility for the Financial Statements 

 

 

 

 

 

 

 

 

 

 

 

Auditor’s Responsibility 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in order to design audit procedures that are appropriate 

 

 

 

 

 

 

 

 

Opinion 

In our opinion and to the best of our information and according 

 

 

 

 

 

st 

 

 

 

 

Report on Other Legal and Regulatory Requirements 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and 

 

st 

 

st 

 

 

 

Sharp & Tannan Associates 

Chartered Accountants 

 

by the hand of 

Tirtharaj Khot 

 

Partner 

 

Annual Report 2012-13 39

Annexure to the Auditors’ Report 


st 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

out by management during the year and there are 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

` 

 

` 

 

 

 

 

 

 

` 

 

 

 

 

 

 

 

` 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

contracts or arrangements that need to be entered 

 

 

 

 

 

in pursuance of such contracts or arrangements 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

the maintenance of cost records has not been prescribed 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40 

India Infoline Finance Limited


` 

` 

 

 

 

 

st 

 

 

Status 

 

 

 

 

 

` 

 

 

 

is pending 

 

eal 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

records of transactions and contracts in respect of its 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

shares to parties and companies covered in the register 

 

 

 

 

 

has created security in respect of debentures issued 

 

st ` 

 

 

 

 

 

 

 

 

 

 

 

 

year there have been certain instances of fraud on the 

 

 

 

 

 

 

 

Sharp & Tannan Associates 


 

by the hand of 


 

Partner 

 


Standalone Balance Sheet 

` 

Particulars Note No. As at March 31, 2013 As at March 31, 2012 

I. EQUITY AND LIABILITIES 

(1) Shareholders' funds 

 

 

- - 

Sub-Total 15,383,327,090 14,324,901,167 

(2) Share application money pending allotment - - 

(3) Non-Current Liabilities 

 

- - 

- - 

 

Sub-Total 42,946,458,486 31,598,756,071 

(4) Current liabilities 

 

- - 

 

 

 

- Others 

 

Sub-Total 51,210,697,786 30,216,805,459 

TOTAL 109,540,483,362 76,140,462,697 

II ASSETS 

(1) Non-current assets 

(a) Fixed assets 

 

 

 

- - 

- - 

Sub-Total 983,639,530 711,979,672 

 

 

 

 

 

- Others 

 

Sub-Total 34,899,462,761 27,335,623,254 

(2) Current assets 

 

 

- - 

 

 

 

 

- Others 

 

Sub-Total 73,657,381,071 48,092,859,771 

TOTAL 109,540,483,362 76,140,462,697 

 

 

 

For Sharp & Tannan Associates 


 

 

Tirtharaj Khot Mukesh Kumar Singh R Venkataraman 

Partner Executive Director Director 

 

 

 

42 



Standalone Statement of Profit & Loss 

` 

Particulars Note No. 2012-13 2011-12 

INCOME 

 

Other Income 

Total Revenue 16,939,821,901 9,103,697,426 

EXPENDITURE 

20 

 

22 

 

 

Total Expenses 14,398,560,725 7,663,708,144 

2,541,261,176 1,439,989,282 

 

 

 

 

Total tax expense 793,769,396 421,477,846 

1,747,491,780 1,018,511,436 

 

 

 

 

 

 

 



 

 



 

 

 


Standalone Cash Flow Statement 

` 


CASH FLOWS FROM OPERATING ACTIVITIES 

 

 

 

 

 

 

 

 

 

 

 

3,211,000,716 1,831,749,670 

- - 

 

 

 

- - 

- - 

 

 

advances 

 

 

 

advances 

 

 

 

 

Cash generated from operations (21,851,146,151) (30,824,766,092) 

 

Net cash from operating activities (A) (22,774,550,869) (31,390,114,106) 

CASH FLOWS FROM INVESTING ACTIVITIES 

 

 

advances 

 

 

- - 

 

- - 

 

- - 

 

- 

Net cash from investing activities (B) (2,587,767,884) (3,716,411,458) 

44 



Standalone Cash Flow Statement 

` 


CASH FLOWS FROM FINANCING ACTIVITIES 

- 

- - 

 

- - 

 

- - 

- - 

31,341,928,763 37,353,896,639 

Net increase in cash and cash equivalents (A + B + C) 5,979,610,010 2,247,371,075 

Opening Cash and cash equivalents 

2,560,231,039 312,859,962 

Closing Cash and cash equivalents 

 

 

 

 

 

India 

 

 

 

 

 

 

 

 

 

Cash & cash equivalent at the end of the year 8,539,841,049 2,560,231,039 

 



 

 



 

 

 


Standalone Financial Statements of India Infoline Finance Limited 

 

Note: 1. CORPORATE INFORMATION 

 

 

 

 

 

Note: 2. SIGNIFICANT ACCOUNTING POLICIES 

 

 

 

 

 

 

 

2.2 Prudential norms: 

 

 

 

 

 

 

 

2.3 Use of estimates: 

 

 

 

 

2.4 Fixed assets and depreciation and amortisation: 

 

 

 

 

 

 

` 

 

Estimated useful life of the assets is as under: 

Class of assets 

Useful life in years 

20 

 

 

 

 

 

 

 

 

 

 

2.5 Assignment of loan portfolio: 

 

 

 

 

 

46 




 

2.6 Revenue recognition: 

 

 

 

 

 

 

 

 

2.7 Preliminary expenses: 

 

 

 

 

 

 

 

 

 

2.9 Provisions, Contingent liabilities and Contingent assets 

 

 

 

 

 

 

 

 

 

 

 

2.10 Taxes on income: 

 

 

 

 

 

 

 

 

 

 

2.11 Operating Leases: 

 

 

2.12 Investments 

 

 

 

 

 

 



 

2.13 Inventories: 

 

2.14 Earnings Per Share: 

 

 

 

 

 

 

 

 

 

Note: 3. SHARE CAPITAL 

` 

Particulars 

As at 

March 31, 2013 

As at 

March 31, 2012 

Authorised Share Capital 

` 

` 

` 

` 

Total 3,200,000,000 3,200,000,000 

Issued, Subscribed and Paid-up share capital 

` 

 

Total 2,371,540,300 2,371,540,300 

(i) Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period 

Particulars As at March 31, 2013 As at March 31, 2012 

` ` 

 

- - - - 

- - - - 

Outstanding at the end of the period 

(ii) Rights attached to equity shares 

` 

 

(iii) Details of shareholders holding more than 5% shares in the Company 


 

Equity shares of `10 each fully paid 

 

(iv) Aggregate number of bonus share issued, share issue for consideration other than cash and shares bought back during 

 

Particulars March 31, 2013 

 


 

March 31, 2011 

 

March 31, 2010 

 

March 31, 2009 

 

- - - - 

 

 

48 




 

Note: 4. RESERVES AND SURPLUS 

` 

Particulars 

As at 


As at 


Securities Premium Reserve 

 

- - 

 

- - 

 

Closing balance 8,657,487,836 8,657,487,836 

General Reserve 

 

- 

Closing balance 263,000,000 83,000,000 

Special Reserve 

 

- 

 

Closing balance 1,050,000,000 700,000,000 

Debenture Redemption Reserve 

- 

 


 

 

 

- 

Less: Appropriations 

- 

- 

 

- 

 


Total 13,011,786,790 11,953,360,867 

Note: 5. LONG TERM BORROWINGS 

` 

Particulars Non-current portion Current maturities 

 

 

 

 

 

 

 

 

Secured 

 

 

 

 

 

Sub-Total 35,747,512,959 29,898,052,667 14,000,192,272 6,407,741,851 

Unsecured 

- - 

- - 

Sub-Total 6,970,914,056 1,539,149,056 - - 

Total 42,718,427,015 31,437,201,723 - - 

` ` 

 

`` 



 

Note: 5.1. TERM LOANS FROM BANKS - SECURED: 

` 

Maturities 

Non current 

As at March 31, 2013 As at March 31, 2012 

1-3 years 3 years & 

Total 1-3 years 3 years & 

Total 

above 

above 

Rate of interest * 

- - - - - - 

- - - 

 

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 

 

 

 

 

 

 

 

 

Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED 

` 

Particulars Non-current Current 

As at 


As at 


As at 


As at 


- - 

` 

- - 

` 

- - 

` 

- - 

` 

- - 

` 

- - 

` 

 

- - 

` 

- - 

` 

 

- - 

` 

 

- - 

` 

 

- - 

` 

 

` 

 

- - 

50 




 

Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED (contd.) 

` 


As at 


As at 


As at 


As at 


 

- - 

` 

 

 

- - 

` 

 

 

- - 

` 

 

 

- - 

` 

 

 

- - - 

` 

 

 

- - 

` 

 

` 

- - 

 

 

- - - 

` 

 

 

- - 

` 

 

- - - 

` 

 

 

- - - 

` 

 

 

- - - 

` 

 

 

- - - 

` 

 

 

- - - 

` 

 

` 

- - - 

 

` 

- - - 

 

 

- - - 

` 

 

` - - - 

 

` 

 

- - - 



 

Note: 5.2. NON CONVERTIBLE DEBENTURES – SECURED (contd.) 

` 


As at 


As at 


As at 


As at 


- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

- - - 

` 

 

Total 9,506,120,000 8,768,886,000 978,600,000 1,329,000,000 

 

 

` ` 

` ` 

 

 

 

` ` 

 

52 




 

Note: 5.3. NON CONVERTIBLE DEBENTURES – UNSECURED 

` 


As at 


As at 


As at 


As at 


 

` 

- - 

 

 

` 

- - 

 

- - 

` 

 

` 

- - 

 

- - 

` 

 

` 

- - 

 

` - - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

- - 

 

 

` 

 

- - 



 

Note: 5.3. NON CONVERTIBLE DEBENTURES – UNSECURED (contd.) 

` 


As at 


As at 


As at 


As at 


 

` 

- - 

 

 

` 

- - 

 

 

` 

- - - 

 

 

` 

- - - 

 

` 

- - - 

 

` 

- - - 

` - - - 

 

` - - - 

 

` - - - 

 

Total 6,970,914,056 1,539,149,056 - - 

 

` 

 

 

 

 

 

Note: 6. PROVISIONS 

` 

Particulars Short-term Long-term 

 

 

 

 

 

 

 

 

 

- 

- - 

Provision – Others 

- - 

- - 

Total 228,945,588 299,513,279 228,031,471 161,554,348 

54 




 

Note: 7. SHORT – TERM BORROWINGS 

` 

Particulars 

As at 


As at 


Secured 

 

- 

Sub-Total 2,501,681,081 2,489,362,175 

Unsecured 

- 

- - 

 

Sub-Total 30,995,000,000 17,850,000,000 

Total 33,496,681,081 20,339,362,175 

 

 

 

Note: 8. OTHER CURRENT LIABILITIES 

Particulars 

As at 


` 

As at 


 

Sub-Total 14,000,192,272 6,407,741,851 

Others 

 

- 

 

 

 

 

 

Income received in advance 

 

 

 

Others 

Sub-Total 3,484,878,845 3,170,188,154 

Total 17,485,071,117 9,577,930,005 



 

Note: 9. TANGIBLE ASSETS 

` 

Particulars Air Conditioner Computer Electrical Furniture And Premises 

Total 

Equipment Fixture Equipment 

 

 

- 

- 

during the year 

As at March 31,2013 74,539,783 133,213,454 321,051,405 712,201,810 237,491,806 145,000 1,478,643,258 

Depreciation 

 

 

- 

during the year 

 

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 

31,2013 

Net Block as at March 

31,2012 

29,928,374 70,437,856 145,776,909 320,546,401 132,803,753 114,189 699,607,482 

Note: 10. INTANGIBLE ASSETS 

` 

 

 

 

 

 

- 

 

 

 

 

 

 

 

- 

 

 

Net Block as at March 31, 2013 105,849 

 

 

Note: 11. NON – CURRENT INVESTMENTS 

Particulars 

Face Value 

in ` 

Unquoted, Trade, Long Term (valued at cost) 

Investment in Subsidiaries 

Equity Shares 

` 


Number Amount Number Amount 

 

- - 

Preference Shares 

 

Sub-Total 1,305,000,000 1,390,126,000 

56 




 

Note: 11. NON – CURRENT INVESTMENTS 

Particulars 

Unquoted, Non-Trade, Long Term (Valued 

at cost) 

 

 

Face 

Value in ` 

` 



- - 

 

Sub-Total 105,211,200 490,211,200 

Debentures and Bonds - for Financing Real 

Estate Projects 

 

- - 

- - 

- - 

- - 

- - 

 

- - 

- - 

 

 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

 

 

- - 

Sub-Total 3,743,543,838 2,539,813,104 

Total 5,153,755,038 4,420,150,304 

Unquoted, Non-Trade, Long Term (Valued 

at cost) 

 

 

- - 

Sub-Total 44,800,000 - 

Total 5,198,555,038 4,420,150,304 



 

Note: 12. 

 

 

 

Deferred Tax Assets 

` 

Particulars 

As at 


As at 


 

 

 

- 

- 

Total 309,992,706 115,410,103 

Note: 13. LOANS & ADVANCES 

` 


As at 


As at 


As at 


As at 


Loans & Advances 

 

 

 

Sub-Total 28,336,738,375 20,081,837,461 55,950,028,829 39,526,189,298 

Others loans & advances 

 

- - 

- - 

- - 

- - 

 

- - - 

- - 

 

- - 

` ` 

Unsecured 

Sub-Total 584,163,858 2,313,068,575 4,172,429,799 2,496,027,798 

Total 28,920,902,233 22,394,906,036 60,122,458,628 42,022,217,096 

Note: 14. OTHER ASSETS 

` 


As at 


As at 


As at 


As at 


- - 

 

- - 

- - 

- - - - 

- - 

Others - - 

Total 470,012,784 405,156,811 1,033,786,964 654,392,857 

58 




 

Note: 15. CURRENT INVESTMENTS 

Particulars 

Face 

Value in ` 

` 



Unquoted , Non - Trade , Current (valued at 

 

Mutual Funds 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

Sub-Total 1,550,000,000 360,000,000 

Non convertible Debentures 

- For Financing Real Estate Projects 

- - 

- 

 

- - 

- - 

- - 

 

- - 

- - 

 

- - - - 

- - 

- - 

- - 

- - 

- - 

 

Sub-Total 1,979,694,722 2,681,925,944 

- Others 

- 

 

 

- 

Sub-Total 110,078,328 - 

Quoted, Trade, Long Term (valued at cost) 

 

- 

Sub-Total 600,000,000 - 

Total 4,239,773,050 3,041,925,944 

 

 

- 

- 

- 

 



 

Note: 16. INVENTORIES 

` 

Particulars 

Face As at March 31, 2013 As at March 31, 2012 

Value Number Amount Number Amount 

Options * 

Strike Price 

- - 

- - 

- - 

- - 

- - 

- - 

- - 

 

 

 

 

Sub-Total 22,644,763 60,660,804 

Non convertible Debentures * 

 

 

Sub-Total 47,300,000 107,386,579 

Total 69,944,763 107,386,579 

 

-Quoted 

 

 

 

Note: 17. CASH AND BANK BALANCES 

` 


As at 


As at 


As at 


As at 


- - 

- - 

 

- - 

Total - - 8,191,417,666 2,266,937,295 

Note: 18. REVENUE FROM OPERATIONS 

` 


 

 

 

Total 16,145,199,542 8,681,269,848 

Note: 19. OTHER INCOME 

` 


 

 

 

 

 

Total 794,622,359 422,427,578 

60 




 

Note: 20. EMPLOYEE BENEFIT EXPENSES 

` 


 

 

 

 

Total 1,774,047,530 1,044,389,882 

 

 

` 


Assumptions 

 

 

 

 

 

 

 

 

 

 

- 

 

Liability at the end of the year 28,712,452 14,403,636 

Amount Recognised in the Balance Sheet 

 

 

 

(25,285,550) 9,943,919 

Expenses Recognised in the Income statement 

- - 

 

 

 

- - 

 

Expense Recognised in P&L 15,452,316 11,092,286 

Balance Sheet reconciliation 

 

 

- 

 

- 

25,285,550 9,943,919 



 

Note: 21. FINANCE COST 

` 


 

 

Total 8,616,579,159 4,616,534,404 

Note: 22. DEPRECIATION AND AMORTISATION EXPENSES 

` 


 

 

Total 339,856,186 149,597,434 

Note: 23. OTHER EXPENSES 

` 


 

 

 

 

 

 

 

 

 

 

 

 

 

- - 

- Others 

 

 

 

 

 

 

- 

Total 3,348,974,534 1,599,077,846 

Note: 24. PROVISIONS AND WRITE OFF 

` 


 

 

 

 

 

Total 319,093,316 254,108,578 

62 




 

Note: 25. 

 

` 


BASIC 

 

 

EPS 

DILUTED 

 

 

 

 

 

 

 

EPS 

Note: 26. 

` 

Sr. No. Name of the Statute 

As at 

As at 

March 31, 2013 March 31, 2012 

 

 

Total 282,159,388 120,623,161 

Note: 27. 

` 

` 

Note: 28. 

 

 

 

 

 

` 

Minimum Lease Rentals 

As at 


As at 


Up to one year 

 

Total 59,494,053 50,538,736 

Note: 29. 

 

 

 

 

 

 



 

Note: 30. SEGMENT REPORTING 

 

 

 

 

 

Note: 31. 

 

Note: 32. RETURN ON ASSETS 

 

Note: 33. 

` ` 

` 

 

Note: 34. 

 

Note: 35. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES 

Nature of relationship 

Name of party 

 

Holding company 

 

Direct Subsidiaries 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64 




 

Note: 35. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES (contd.) 


Name of party 

Group Companies 

Key Management Personnel 

Other related parties: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subsidiaries 

 

 

 

Subsidiaries 

Key 

Management 

 

` 

Interest Income - - 

- - - 

- - 

- 

Service charges Income - - - - 

- - - - 

 

 

- - - 

- - - - 

- - - - - - 

 

- - - - 

Income 

- - - - - - 

- - - - 

- - - - - - 

- - - 

- - - - 

- - - 

- - - 

- - - 

- - - - - - 

 

- - - - - - 

 

 

- - - - 

 



 

Note: 35. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES (contd.) 

(contd.) 

 

 

 

 

Subsidiaries 

 

 

 

Subsidiaries 

Key 

Management 

 

` 

 

- - - - 

 

- - - - 

- - - - 

- - - - 

- - - - 

- - - - - - 

- - - - 

- - - - - - 

 

- - 

 

- - 

- - 

 

- - 

 

 

c) Closing balance ` 

 

 

 

Subsidiaries 

 

 

 

Subsidiaries 

Key 

Management 

 

 

- - - - - - 

- - - - - - 

- - - - - - 

- - - - 

 

Note: 36. 

ISSUED BY RESERVE BANK OF INDIA 

a. Capital Adequacy Ratio 

Items 

As at 


As at 


 

 

 

b. Exposure to Real Estate ` in lacs 

Items 

As at 


As at 


 

 

 

 

` 

` 

66 




 

Note: 36. 

ISSUED BY RESERVE BANK OF INDIA (contd.) 

b. Exposure to Real Estate (contd.) ` in lacs 

Items 

 

 

- 

 

 

 

As at 


 

As at 


 

 

 

 

 

 

 

 

 

 

 

c. Maturity pattern of certain items of assets and liabilities ` in lacs 

Liabilities 

Assets 

Market Advances Investments 

banks 

 

Over one to 2 months - - 

 

 

 

 

 

 

Total 417,646 484,506 901,987 94,383 

Note: 37. ASSET CLASSIFICATION 

` in lacs 

Outstanding Balance Provision 

 

 

 

 

 

 

 

 

 

 

 

 

 

` ` 

 

 

` 

 

 



 

Note: 38. Particulars as per RBI Directions (as required in terms of paragraph 13 of Non-Banking Financial(Non-Deposit 

Accepting or Holding)Companies Prudential Norms(Reserve Bank)Directions 2007). 

` in lacs 

Liabilities Side: Amount Outstanding Amount Overdue 

 

 

 

Secured 

 

 

 

 

 

 

` in lacs 

Assets Side: 

Amount Outstanding 

 

 

 

 

 

 

 

- 

- 

 

- 

- 

 

- 

- 

 

 

 

 

- 

- 

- 

 

 

 

 

- 

 

 

 

- 

 

 

- 

- 

- 

 

 

 

- 

- 

- 

68 




 

Note: 38. Particulars as per RBI Directions (as required in terms of paragraph 13 of Non-Banking Financial(Non-Deposit 

Accepting or Holding)Companies Prudential Norms(Reserve Bank)Directions 2007). (contd.) 

Assets Side: 

` in lacs 

Amount Outstanding 

- 

- 

- 

- 

 

 

 

 

 

 

 

- 

- 

 

 

 

` in lacs 

Category 

Amount net of provisions 

Secured Unsecured Total 

 

- - - 

- - - 

- - - 

 

Total 887,213 3,221 890,434 

 

` in lacs 

Category 

Market 

 

value or NAV 

Book value (net of 

provisions) 

 

 

- - 

- - 

 

Total 94,475 94,383 

 

7. Other Information: ` in lacs 

Particulars 

Amount 

- 

- 

 

 

- 

- 

 

 

- 



 

Note: 39. 

 

Securitisation : 

` 

Particulars 

Amount 

 

 

 

 

 

 

 

Gold PTC II Gold PTC III Gold PTC IV Total 

 

Subordinated Tranche 

 

 

 

 

Note: 40. 

 

 

 



 

 



 

 

 

70 



Statement Relating to Subsidiary Company 

 

` 

 

 

 

 

2 

 

 

 

 

 

 

 

 


Consolidated Financial Section 

72 



Independent Auditor’s Report 

To the Board of Directors of 


 

statements of India Infoline Finance Limited (“the Company”) 

and its subsidiary, which comprise the consolidated balance 

sheet as at 31 st March 2013, the consolidated statement of 

 

 

policies and other explanatory information. 

Management’s Responsibility for the Consolidated Financial 

Statements 

Management is responsible for the preparation of these 

 

 

 

the Company in accordance with accounting principles 

generally accepted in India. This responsibility includes 

the design, implementation and maintenance of internal 

control relevant to the preparation and presentation of the 

 

view and are free from material misstatement, whether due 

to fraud or error. 

Auditor’s Responsibility 

Our responsibility is to express an opinion on these 

 

conducted our audit in accordance with the Standards on 

Auditing issued by the Institute of Chartered Accountants of 

India. Those Standards require that we comply with ethical 

requirements and plan and perform the audit to obtain 

reasonable assurance about whether the consolidated 

 

An audit involves performing procedures to obtain audit 

evidence about the amounts and disclosures in the 

 

depend on the auditor’s judgment, including the assessment 

of the risks of material misstatement of the consolidated 

 

those risk assessments, the auditor considers internal control 

relevant to the Company’s preparation and fair presentation 

 

audit procedures that are appropriate in the circumstances. 

An audit also includes evaluating the appropriateness of 

accounting policies used and the reasonableness of the 

accounting estimates made by management, as well as 

evaluating the overall presentation of the consolidated 

 

We believe that the audit evidence we have obtained is 

 

opinion. 

Opinion 

In our opinion and to the best of our information and 

according to the explanations given to us, the consolidated 

 

with the accounting principles generally accepted in India: 

(i) 

in the case of the consolidated balance sheet, of the 

state of affairs of the Company as at 31 st March 2013; 

 

 

 

 

For Sharp & Tannan Associates 


ICAI Registration No. 109983W 

By the hand of 


Place: Singapore 

Partner 

Date: May 10, 2013 Membership No.: (F) 037457 


Consolidated Balance Sheet as at March 31, 2013 

(Amount in `) 

Particulars Note No As at March 31, 2013 As at March 31, 2012 

I) EQUITY AND LIABILTIES 

(1) Shareholders’ funds 

(a) Share Capital 3 2,371,540,300 2,371,540,300 

(b) Reserve and Surplus 4 13,272,331,630 12,076,238,066 

(c) Money received against share warrants - - 

Sub-Total 15,643,871,930 14,447,778,366 

2) Share application money pending allotment - - 

(3) Non Current Liabilities 

(a) Long-term borrowings 5 43,368,427,015 32,237,201,723 

(b) Deferred tax liabilties (Net) - - 

(c) Other Long-term liabilities - - 

(d) Long-term provisions 6 251,646,335 177,815,344 

Sub-Total 43,620,073,350 32,415,017,067 

(4) Current liabilities 

(a) Short-term borrowings 7 34,496,681,081 20,339,362,175 

(b) Trade payables 

(c) Other current liabilities 8 

-Borrowings 14,400,192,272 6,807,741,851 

-Others 3,651,917,099 3,486,559,736 

(d) Short-term provisions 6 237,764,992 302,055,931 

Sub-Total 52,786,555,444 30,935,719,693 

TOTAL - EQUITY AND LIABILITIES 112,050,500,724 77,798,515,126 

II) ASSETS 

(1) Non-current assets 

(a) Fixed assets 

(i) Tangible assets 9 963,948,452 699,607,482 

(ii) Intangible assets 10 105,849 224,876 

(iii) Goodwill (on Consolidation) 1,750,000 16,421,955 

(iii) Capital work-in-progress 19,585,229 12,147,314 

(iv) Intangible assets under development - 

Sub-Total 985,389,530 728,401,627 

(b) Non-current investments 11 3,893,555,038 3,030,024,304 

(c) Deferred tax assets (Net) 12 314,374,627 126,125,349 

(d) Long-term loans & advances 13 

-Loans 31,580,685,984 22,492,742,411 

-Others 584,176,108 2,333,126,355 

(e) Other non-current assets 14 579,912,932 515,308,280 

Sub-Total 36,952,704,689 28,497,326,699 

(2) Current assets 

(a) Current investments 15 4,369,773,050 3,041,925,944 

(b) Inventories 16 69,944,763 107,386,579 

(c) Trade receivables - - 

(d) Cash and bank balances 17 8,205,029,537 2,537,445,412 

(e) Short-term loans & advances 13 

-Loans 56,151,805,672 39,644,339,571 

-Others 4,257,531,463 2,582,322,011 

(f) Other current assets 14 1,058,322,020 659,367,283 

Sub-Total 74,112,406,505 48,572,786,800 

TOTAL - ASSETS 112,050,500,724 77,798,515,126 

1-38 

As per our attached report of even date 

For Sharp & Tannan Associates For and on behalf of the Board of Directors 


ICAI Registration No.109983W 




Membership No.: (F) 037457 

Place : Singapore 


74 



Consolidated Statement of Profit & Loss for the year ended March 31, 2013 

(Amount in `) 

Particulars Note No 2012-13 2011-12 

INCOME 

Revenue from operations 18 16,534,142,626 9,084,576,504 

Other Income 19 837,565,386 451,289,918 

Total Revenue 17,371,708,011 9,535,866,422 

EXPENDITURE 

20 1,794,509,616 1,092,738,207 

Finance cost 21 8,776,021,993 4,798,307,372 

Depreciation & amortisation expenses 22 339,856,186 149,597,434 

Other expenses 23 3,397,458,764 1,730,161,075 

Provision & Write off 24 326,226,052 263,360,067 

Total Expenses 14,634,072,610 8,034,164,155 

2,737,635,401 1,501,702,267 

Tax expenses : 

Current tax expense for current year 1,042,233,560 528,144,633 

Deferred tax (194,879,786) (81,739,544) 

Current tax expense relating to prior years 3,123,600 1,488,109 

Total tax expense 850,477,374 447,893,198 

1,887,158,027 1,053,809,069 

Earnings per equity share 

(1) Basic 25 7.96 4.44 

(2) Diluted 25 7.81 4.35 

Face Value 10.00 10.00 

1-38 






For and on behalf of the Board of Directors 







Consolidated Cash Flow Statement for the year ended March 31, 2013 

(Amount in `) 


CASH FLOWS FROM OPERATING ACTIVITIES 

 

2,737,635,401 1,501,702,267 

item 

Adjustments for: 

Depreciation 339,856,186 149,597,434 

Provision for Doubtful Loans (note : 24) 194,752,763 79,302,268 

Provision for Standard Loans (note : 24) 55,587,448 95,318,881 

Provision for diminution in value of 

2,325,419 2,029,581 

investments (note : 24) 

Provision for Contingencies (note : 24) 55,714,137 46,707,807 

Gratuity & Leave Enchasment 30,560,336 678,796,289 25,919,026 398,874,997 

 

3,416,431,690 1,900,577,264 

changes 

Increase / (Decrease) in trade payables - - - - 

Increase / (Decrease) in long term provisions - 130,000 

Increase / (Decrease) in short term provisions (6,024,122) (2,023,517) 

Increase / (Decrease) in Other liabilities 35,430,481 1,252,558,968 

Increase / (Decrease) in Other long term 

- - 

liabilities 

Decrease / (Increase) in trade receivables - - 

Decrease / (Increase) in trade inventories 35,116,397 116,446,683 

Decrease / (Increase) in long term loans & (7,618,738,899) (9,259,924,032) 

advances 

Decrease / (Increase) in short term loans & (18,188,881,340) (22,361,610,698) 

advances 

Decrease / (Increase) in other current assets (398,999,626) (323,797,304) 

Decrease / (Increase) in other non current 

(9,725,391) (26,151,822,499) (108,848,728) (30,687,068,630) 

assets 

Cash generated from operations (22,735,390,809) (28,786,491,366) 

Tax (Paid) / Refund (974,938,660) (585,919,085) 

Net cash from operating activities (A) (23,710,329,469) (29,372,410,451) 

CASH FLOWS FROM INVESTING ACTIVITIES 

 

(611,516,044) (697,857,546) 

assets,CWIP and Capital advances 

- - 

Proceeds of non-current investments - - 

Purchase of non-current investments (863,530,734) (2,541,842,685) 

Purchase of current investments - - 

Proceeds from sale/maturity of current 

(1,327,847,106) (2,041,403,053) 

investments 

(Purchase)/Sale of Investments (Subsidiaries) 85,126,000 - 

Purchase consideration for amalgamation - - 

Net cash from investing activities (B) (2,717,767,884) (5,281,103,284) 

76 



Consolidated Cash Flow Statement for the year ended March 31, 2013 

(Amount in `) 


CASH FLOWS FROM FINANCING ACTIVITIES 

Dividend paid (689,065,856) - 

Share issue expenses - - 

Proceeds from long term borrowings 18,723,675,713 25,046,643,574 

Repayment of long term borrowings - - 

Proceeds from short term borrowings 14,157,318,906 11,407,253,065 

Repayment of short term borrowings - - 

Proceeds from borrowings (net) - - 

32,191,928,763 36,453,896,639 

Net increase in cash and cash equivalents 

5,763,831,412 1,800,382,904 

( A + B + C) 

Opening Cash and cash equivalents 

Cash on hand and balances with banks 2,936,589,530 1,136,206,627 

Less :Opening balance of Subsidiary Sold (41,368,022) - 

2,895,221,508 1,136,206,627 

Closing Cash and cash equivalents 

Cash on hand and balances with banks 8,659,052,920 2,936,589,530 

 

under the Indirect Method as set out in 

the Accounting Standard (AS-3)”CashFlow 

Statement” issued by the Institute of 

Chartered Accountants of India 

 

re-arrange wherever necessary 

3. Cash & cash equivalent as at the end of 

the year include: 

Cash & bank balances (Refer Note 17) 8,205,029,537 2,537,445,412 

Add: Fixed deposits considered under Other 454,023,383 399,144,118 

Non current asset (refer Note 14) 

Cash & cash equivalent at the end of the year 8,659,052,920 2,936,589,530 













Consolidated Financial Statements of India Infoline Finance Limited 

 

Note 1. CORPORATE INFORMATION 

The Company is a systematically important Non-Banking Financial Company (“NBFC”) registered with the Reserve Bank of 

India (RBI) under section 45-IA of the Reserve Bank of India Act,1934 and primarily engaged in lending and related activities. 

 

 

 

Note 2. SIGNIFICANT ACCOUNTING POLICIES 

2.1 Basis of consolidation: 

 

 

 

 

by the Council of The Institute of Chartered Accountants of India. 

 

 

the Companies (Accounting Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act, 

1956 and the guidelines issued by the Reserve bank of India (RBI) as applicable to NBFCs as well as norms 

 

 

consistent with those followed in the previous year. 

ii. Principles of consolidation: 

 

with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with all material aspects of the 

 

 

basis under the historical cost convention. The effects of all inter-group transactions and balances have been 

 

consistent with those followed in the previous year by the Company. 

iii. List of subsidiaries consolidated: 

 

2013 of following subsidiary is included in consolidation: 

India Infoline Housing Finance Ltd (IIHFL) 

2.2 Use of estimates: 

 

management to make estimates and assumptions that affect the reported amount of assets and liabilities on the date 

 

between the actual result and estimates are recognized in the period in which the results are known / materialized. 

2.3 Fixed asset, depreciation and amortization : 

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss, if any thereon. 

 

 

 

is charged over the remaining useful life of the asset. 

Depreciation is charged from the month in which new assets are put to use. No depreciation is charged for the month in 

which assets are sold. Individual assets / group of similar assets costing upto `5,000/- has been depreciated in full, in 

the year of purchase. 

78 




 

Estimated useful life of the assets is as under: 

Class of assets 

Useful life in years 

Buildings 20 

Computers 3 

5 

5 

Vehicles 5 

Software 3 

2.4 Assignment of loan portfolio: 

Derecognition of loans assigned, in the books of the Company, is based on the concept of surrender of control over the 

loans resulting in a “true sale” of loans. Future interest spread receivables in case of a par structure deals are recognised 

over the tenure of agreements as per guidelines issued by the RBI. Expenditure in respect of direct assignment is 

recognised upfront. Credit enhancement in the form of cash collateral provided by the Company is included under Cash 

and bank balance / Loans and advances, as applicable. 

2.5 Revenue recognition: 

The Company complies, in all material respects, with the Accounting Standards, Prudential Norms relating to income 

 

in the directions issued by the RBI, as applicable to it, and 

 

 

Financing loans, are reversed and are accounted as income when these are actually realised. 

 

 

 

 

2.6 Preliminary expenses: 

 

 

 

 

The Company has provided “Compensated Absences” on the basis of actuarial valuation. 

 

 

 

 

calculated at or near the balance sheet date by an independent actuary using the projected unit credit method. 

2.8 Provisions, Contingent liabilities and Contingent assets: 

Non-performing loans are written off / provided for, as per management estimates, subject to the minimum provision 

required as per Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve 

 

The Company creates a provision when there is present obligation as a result of a past event that probably requires an 

 

liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an 

 

 



 

 

 

 

 

 

2.9 Taxes on income: 

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to 

the tax authorities in accordance with the Income-tax Act,1961 enacted in India. Provision for current tax is computed 

based on estimated tax liability computed after adjusting for allowance, disallowance and exemptions in accordance 

with the applicable tax laws. 

 

 

originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using 

the tax rate and the tax laws enacted or substantively enacted at the Balance Sheet date. At each reporting date, the 

Company re-assesses unrecognized deferred tax assets. The deferred tax asset is recognised or unrecognised, to the 

 

will be available. Deferred tax liability is recognised as and when arisen. 

2.10 Operating leases: 

 

Accounting Standard 19 – Leases, issued by the Institute of Chartered Accountants of India. 

2.11 Investments: 

Investments, which are readily realizable and intended to be held for not more than one year from the date on which 

 

investments. Current investments are stated at lower of cost or market / fair value. Non – current investments are carried 

at cost. Provision for diminution in value of non – current investments is made, if in the opinion of the management, such 

diminution is other than temporary. For investment in mutual funds, the net assets value (NAV) declared by the mutual 

funds at the Balance Sheet date is considered as the fair value. 

2.12 Inventories: 

Closing stock is valued at cost or market value, whichever is lower. Cost is computed on FIFO basis. 

2.13 Earnings per share: 

 

by the weighted average number of equity shares outstanding during the period. 

 

 

shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of 

all dilutive potential equity shares. 

 

Borrowings are shown under current liabilities as long term and short term liabilities. Commercial papers are recognised 

at Face value at the time of its issue. Any difference between the proceeds and the redemption value is recognised in 

 

80 




 

Note 3. SHARE CAPITAL 

(Amount in `) 

Particulars 

As at 


As at 


Authorised Share Capital 

300,000,000 equity shares(Previous year 300,000,000 equity shares) of ` 10 each 3,000,000,000 3,000,000,000 

1,999,600 equity shares of ` 100 each 199,960,000 199,960,000 

150 Preference Shares of ` 100 each 15,000 15,000 

250 11% Non- cumulative redeemable preference shares of ` 100 each 25,000 25,000 

Total 3,200,000,000 3,200,000,000 

Issued, Subscribed and Paid-up share capital 

237,154,030 Equity Shares (Previous year 23,71,54,030 Equity Shares) of `10 each 

with voting rights 

2,371,540,300 2,371,540,300 

(i) 

Reconciliation of the equity shares outstanding at the beginning and at the end of the reporting period 


No of Shares (Amount in `) No of Shares (Amount in `) 

At the beginning of the period 237,154,030 2,371,540,300 237,154,030 2,371,540,300 

Outstanding at the end of the period 237,154,030 2,371,540,300 237,154,030 2,371,540,300 

(ii) 

(iii) 

Rights attached to equity shares 

The Company has only one class of issued equity shares having a par value of `10 per share. Each holder of equity 

shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. 

Details of shareholders holding more than 5% shares in the Company 


No of Shares % holding No of Shares % holding 

Equity shares of `10 each fully paid 

India Infoline Limited 234,467,549 98.87% 234,467,549 98.87% 

(iv) 

Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during 

 

Particulars March 31, 2013 March 31, 2012 March 31, 2011 March 31, 2010 March 31, 2009 

No of Shares No. of shares No of Shares No. of shares No. of shares 

Bonus issue - - 213,438,627 - - 

(v) 

The Company has implemented Employee Stock Option Scheme – 2007. Under the said scheme 4,455,000 (Previous 

year 4,920,000), stock options are in force as on March 31, 2013. 



 

Note 4. RESERVES AND SURPLUS 

(Amount in `) 


Securities Premium Account 

Opening balance 8,657,487,836 8,655,737,836 

Addition during the year - - 

Deduction during the year , for issue of bonus shares and adjustment of 

- - 

share issue expenses. 


General Reserve 

Opening balance 83,000,000 83,000,000 

Addition due to transfer during the year from surplus in the Statement of 

180,000,000 - 

 

Deduction during the year - - 


Special Reserve* 

Opening balance 725,000,000 508,681,186 

Addition due to transfer during the year from surplus in the Statement of 

378,000,000 216,318,814 

 

Closing balance 1,103,000,000 725,000,000 

* Pursuant to Section 45 IC of Reserve Bank of India Act, 1934 and 

Section 29C of National Housing Bank Act,1987) 

Debenture Redemption Reserve 

Opening balance 630,000,000 - 

Addition on account of NCD public issue 220,000,000 630,000,000 


 

Opening balance 1,982,500,229 1,793,067,282 

Adjustment on sale of subsidiary to parent entity * (3,748,606) - 

Addition during the year 1,887,158,027 1,053,809,069 

Less: Appropriations 

Goodwill write off on Moneyline Credit Limited Merger - (18,057,308) 

Interim Dividend (592,885,075) - 

Dividend Distribution Tax (96,180,781) - 

Special Reserve (378,000,000) (216,318,814) 

General reserve (180,000,000) - 

Debenture Redemption Reserve (220,000,000) (630,000,000) 


Total 13,272,331,630 12,076,238,066 

* During the year under review, India Infoline Distribution Company Limited ceased to be a subsidiary of the Company w.e.f 

1st April 2012. 

82 




 

Note 5. LONG TERM BORROWINGS 

(Amount in `) 

Particulars Non-current portion Current maturity 

Secured 

Loan from Banks (Secured against 

receivables) – Refer Note 5.1 below 

As at 


As at 


As at 


As at 


26,641,392,959 21,929,166,667 13,421,592,272 5,478,741,851 

Non Convertible Debentures (Secured 9,756,120,000 8,768,886,000 978,600,000 1,329,000,000 

Against Immovable Property, Stock and Book 

Debts) – Refer Note 5.2 below 

Sub-Total 36,397,512,959 30,698,052,667 14,400,192,272 6,807,741,851 

Unsecured 

Non Convertible Debentures – Refer Note 5.3 

below 

6,970,914,056 1,539,149,056 - - 

Amount disclosed under the head “Other 

- - (14,400,192,272) (6,807,741,851) 

current liabilities” 

Sub-Total 6,970,914,056 1,539,149,056 - - 

Total 43,368,427,015 32,237,201,723 - - 

During the year, the Company has raised Secured Term Loans aggregating `18,250,000,000/- (Previous Year ` 18,250,000,000/-) 

from various banks. 

The Company has also raised ` 2,367,100,000/- (P.Y. ` 8,384,900,000/-) by issue of Secured Non Convertible Debentures. 

Note 5.1 TERM LOANS FROM BANKS - SECURED: 

(Amount in `) 

Maturities 

Non current 


1-3 years 3 years and Total 1-3 years 3 years and Total 

above 

above 

Rate of interest* 

10.01 % to 11.00 % - - - - - - 

11.01 % to 12.00 % 11,882,334,988 3,948,373,950 15,830,708,938 - - - 

12.01 % to 13.00 % 7,349,241,321 3,461,442,700 10,810,684,021 17,679,166,667 4,250,000,000 21,929,166,667 

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 

*The rate of interest for the above term loans are linked to the base rates of the banks and are subject to change from time to 

time. The above categorization of loans has been based on the interest rates, prevalent as on the respective reporting dates. 

 

 

are also guaranteed by India Infoline Limited, holding company. 



 

Note 5.2 NON CONVERTIBLE DEBENTURES – SECURED 

Particulars Non Current Current 

11.50 % Non-Convertible Debentures of Face 

value `10,000 Each Redeemable on 2-Mar- 

2017 


value `1,000 Each Redeemable on 18-Aug- 

2016 


value `1,000 Each Redeemable on 18-Aug- 

2016 


value ` 

15 


value `1,000 Each Redeemable on 18-Dec-14 

Equity Linked Non-Convertible Debentures 

Series I-018 of Face value `100,000 Each 

Redeemable on 18-Oct-14 






Redeemable on 13-Oct-14 








value `1,000 Each Redeemable on 18-Aug-14 



Redeemable on 13-May-14 



 



Redeemable on 9-May-13 









Redeemable on 30-Apr-13 

As at 


As at 


As at 


(Amount in `) 

As at 


300,000,000 300,000,000 - - 

201,055,000 202,408,000 - - 

2,665,918,000 2,896,847,000 - - 

225,000,000 225,000,000 - - 

299,690,000 330,974,000 - - 

77,500,000 77,500,000 - - 

41,000,000 41,000,000 - - 

32,000,000 32,000,000 - - 

15,400,000 15,400,000 - - 

38,500,000 38,500,000 - - 

3,417,457,000 3,417,457,000 - - 

75,500,000 75,500,000 - - 

56,500,000 51,500,000 - 

30,000,000 30,000,000 - 

92,600,000 37,100,000 - 

52,200,000 35,000,000 - 

- 50,000,000 - - 

84 




 






value ` 1,000,000 Each Redeemable on 20- 

Apr-13 





value `1,000,000 Each Redeemable on 16- 

Apr-13 



Redeemable on 30-Mar-13 








Series I-013 of Face value `100,000 Each 




 



May-12 



Apr-12 



Redeemable on 10-Sep-12 

11.35% Non-Convertible Debentures of Face 


Nov-14 



 



 



Oct-14 

Equity Linked Non Convertible Debentures 

- Series I 20 of Face value `100,000 Each 

 

As at 


As at 


As at 


(Amount in `) 

As at 


11,000,000 11,000,000 - 

734,000,000 734,000,000 - 

- 10,000,000 - - 

80,000,000 80,000,000 - 

- - 20,000,000 

- - 4,000,000 

- - 25,300,000 

- - 86,200,000 

- - 30,500,000 

- - 400,000,000 

- - 733,000,000 

- - 30,000,000 

150,000,000 - - - 

100,000,000 - - - 

150,000,000 - - - 

300,000,000 - - - 

318,700,000 - - - 



 




 



 



 



 



 



 



 



Redeemable on 1-Aug-16 










As at 


As at 


As at 


(Amount in `) 

As at 


88,900,000 - - - 

216,500,000 - - - 

28,500,000 - - - 

439,000,000 - - - 

155,500,000 - - - 

148,400,000 - - - 

85,200,000 - - - 

26,700,000 - - - 

52,700,000 - - - 

35,000,000 - - - 

13,000,000 - - - 

Equity Linked Non Convertible Debentures 59,000,000 - - - 



Total 9,756,120,000 8,768,886,000 978,600,000 1,329,000,000 

The above debentures are secured by way of charge over immoveable property and/or current assets, book debts, receivables 

(both present and future) and other assets of the Company. Debentures outstanding as on March 31, 2013, amounting to 

` 734,000,000/- (Previous year ` 1,467,000,000/-) are secured by way of exclusive charge on certain receivables of the 

Company. Secured non convertible debentures aggregating to ` 10,734,720,000/- (Previous year ` 10,097,886,000/-) are also 

guaranteed by India Infoline Ltd., the holding Company. 

Pursuant to Section 117C of the Companies Act,1956 read with circular issued by the Ministry of Corporate Affairs (“MCA”), 

the Company being an NBFC was required to create Debenture Redemption Reserve of a value equivalent to 25% of the 

debentures offered through a public issue. Accordingly ` 220,000,000/- (Previous year ` 630,000,000/-) has been transferred 

 

86 




 

Note 5.3 NON CONVERTIBLE DEBENTURES – UNSECURED 




2019 (SBMIB VII – 7 years) 



2019 (SBMIB VI - 7 years) 



Mar-2019 * 



2019 (SBMIB V – 7 years) 



Feb-2019 * 


value `1,000 Each Redeemable on 23-Feb- 

2019 (SBMIB IV – 7 years) 



Feb-2019 * 



2019 (SBMIB III – 7 years) 



2019 (SBMIB II – 7 years) 


value ` 

2019 (SBMIB I – 7 years) 



2018 (SBDB V – 6 years) 



2018 (SBDB IV – 6 years) 



2018 (SBDB III – 6 years) 



2018 (SBDB II – 6 years) 


value ` 

2018 (SBDB I – 6 years) 



2017 (SBMIB VII – 5 years) 



2017 (SBMIB VI – 5 years) 

As at 


As at 


As at 


(Amount in `) 

As at 


350,000 350,000 - - 

50,000 50,000 - - 

250,000,000 250,000,000 - - 

88,000 88,000 - - 

750,000,000 750,000,000 - - 

474,000 474,000 - - 

500,000,000 500,000,000 - - 

250,000 250,000 - - 

30,000 30,000 - - 

1,160,000 1,160,000 - - 

1,788,000 1,788,000 - - 

1,440,000 1,440,000 - - 

2,406,000 2,406,000 - - 

2,540,000 2,540,000 - - 

3,755,000 3,755,000 - - 

2,330,056 2,330,056 - - 

3,234,000 3,234,000 - - 



 


As at 


As at 


As at 


(Amount in `) 

As at 




3,129,000 3,129,000 - - 

2017 (SBMIB V – 5 years) 



3,789,000 3,789,000 - - 

2017 (SBMIB IV – 5 years) 



4,769,000 4,769,000 - - 

2017 (SBMIB III – 5 years) 



3,297,000 3,297,000 - - 

2017 (SBMIB II – 5 years) 


value ` 

4,270,000 4,270,000 - - 

2017 (SBMIB I – 5 years) 


value `1,000 Each Redeemable on 04-Apr- 

1,765,000 - - - 

2018 (SBDB VI – 6 years) 

12.75% Non-Convertible Debentures series 

N5 of Face value `1,000 Each Redeemable 

3,948,525,000 - - - 

on 17-Sep-18 



600,381,000 - - - 

on 17-Sep-18 



451,094,000 - - - 

on 17-Sep-18 



50,000,000 - - - 

Aug-22 



150,000,000 - - - 

Aug-22 


value `1,000,000 Each Redeemable on 

230,000,000 - - - 

4-Nov-22 

Total 6,970,914,056 1,539,149,056 - - 

During the year, your Company successfully completed the Public Offering of Unsecured Redeemable Non-Convertible 

Debentures (“NCDs”) aggregating to ` 5,000,000,000/- (the “Issue”) in the nature of subordinated debt to strengthen the 

capital adequacy. These NCDs are listed and traded on the National Stock Exchange and Bombay Stock Exchange. The 

Company has utilized the entire proceeds of NCD public issue for the state purposes mentioned in the Final Prospectus dated 

August 27,2012. 

* For these Non Convertible Debentures, the company has a call option, after 5 years from the date of allotment subject to 

prior approval from the Reserve Bank of India for redemption. The Non Convertible Debentures does not have any put option. 

88 




 

Note 6. 

PROVISIONS 

Particulars Short-term Long-term 

As at 


As at 


As at 


(Amount in `) 

As at 


 

Provision for Leave encashment 5,314,108 14,619,192 18,243,543 - 

Provision for Gratuity 25,541,674 9,943,919 - - 

Sub-Total 30,855,782 24,563,111 18,243,543 - 

Provision others 

Provision for Tax (Net of Advance tax and TDS 4,290,118 - - - 

`119,299,630) 

Contingent Provision against standard assets - - 233,402,792 177,815,344 

Provision for expenses 202,619,092 277,492,820 - - 

Sub-Total 206,909,210 277,492,820 233,402,792 177,815,344 

Total 237,764,992 302,055,931 251,646,335 177,815,344 

Note 7. SHORT – TERM BORROWINGS 

(Amount in `) 


Secured 

Cash credit from banks 2,501,681,081 1,489,362,175 

- 1,000,000,000 

Sub-Total 2,501,681,081 2,489,362,175 

Unsecured 

Loan from banks - 400,000,000 

Commercial Paper 31,995,000,000 17,450,000,000 

Non Convertible Debentures - - 

Sub-Total 31,995,000,000 17,850,000,000 

Total 34,496,681,081 20,339,362,175 

T 

 

above loans are also guaranteed by India Infoline Limited, holding company. 

Note 8. OTHER CURRENT LIABILITIES 

(Amount in `) 


Current maturities of long term borrowings 14,400,192,272 6,807,741,851 

Sub-Total 14,400,192,272 6,807,741,851 

Others 

Interest accrued but not due on borrowings 1,337,558,438 875,339,427 

Debenture application money received pending allotment - 2,060,000 

Payables on account of assignment 376,883,125 189,334,616 

Temporary overdrawn bank balance as per books 114,758,716 1,623,873,595 

Advances from customers 491,496,566 381,295,858 

Payables to Vendors for health care Loans 800,652,224 182,560,942 

Contractually reimbursable expenses 288,651,077 167,270,824 

Income received in advance 38,321,200 34,838,647 

Statutory remittances (Contributions to PF and ESIC, Withholding Taxes, 

99,381,100 18,629,321 

Excise Duty, VAT, Service Tax, etc.) 

Others 104,214,653 11,356,506 

Sub-Total 3,651,917,099 3,486,559,736 

Total 18,052,109,371 10,294,301,587 



 

Note 9. TANGIBLE ASSETS 

(Amount in `) 

Particulars 

Furniture Computer Electrical Building 

Total 

And Fixture 

Equipment Equipment 

Cost or valuation as 410,801,962 99,218,745 175,115,126 190,864,937 145,000 876,145,770 

at April 1,2012 

Additions 301,806,000 34,026,916 146,350,284 121,493,828 - 603,677,028 

Deductions/ 

406,152 32,207 414,005 327,176 - 1,179,540 

Adjustments during 

the year 

As at March 31,2013 712,201,810 133,213,454 321,051,405 312,031,589 145,000 1,478,643,258 

Depreciation - 

As at April 1,2012 90,255,561 28,780,889 29,338,217 28,132,810 30,811 176,538,288 

Depreciation on 162,441,620 39,258,678 68,507,148 68,533,022 7,250 338,747,718 

merger 

Deductions/ 

101,440 32,206 255,904 201,650 - 591,200 

Adjustments during 

the year 

Upto March 31,2013 252,595,741 68,007,361 97,589,461 96,464,182 38,061 514,694,806 

Net Block as at 459,606,069 65,206,093 223,461,944 215,567,407 106,939 963,948,452 

March 31,2013 

Net Block as at 

March 31,2012 

320,546,401 70,437,856 145,776,909 162,732,127 114,189 699,607,482 

Note 10. INTANGIBLE ASSETS 

(Amount in `) 

 

Cost or valuation as at April 1, 2012 4,939,762 

Additions 1,000,000 

Deductions / Adjustments during the year - 

As at March 31, 2013 5,939,762 

Amortisation 

As at April 1, 2012 4,714,886 

Amortisation For the year 1,119,027 

Deductions / Adjustments during the year - 

Up to March 31, 2013 5,833,913 

Net Block as at March 31, 2013 105,849 

Net Block as at March 31, 2012 224,876 

90 




 

Note 11. NON – CURRENT INVESTMENTS 

Particulars 

Face 

Value in ` 

(Amount in `) 



Unquoted, Non-Trade, Long Term (Valued at cost) 

Units of India Infoline venture Capital Fund (IIFL 100,000 - - 3,850 385,000,000 

Opportunity fund) 

Arch Pharmalabs Limited 10 263,028 105,211,200 263,028 105,211,200 

Sub-Total 105,211,200 490,211,200 

Debentures and Bonds - for Financing Real Estate 

Projects 

Add Albatross Properties Pvt Ltd 100,000 1,250 124,800,000 2,500 249,800,000 

Ankur Energy Resources Private Limited 100,000 - - 780 78,000,000 

Galleria Mall Developers Pvt Ltd 100,000 - - 800 80,000,000 

Kumar Housing Corporation Limited 100,000 - - 4,000 400,000,000 

Lily Realty Pvt Ltd (17%) 100,000 - - 2,770 277,000,000 


Neptune Developers Ltd 100,000 1,200 120,000,000 900 90,000,000 

Prince Foundation Ltd 100,000 - - 985 98,516,858 

Sahyog Homes Limited 100,000 - - 3,650 365,000,000 

K.R.Mali Builder & Developers Private Limited 100,000 1,000 99,743,838 - - 

Shambhavi Realty Pvt Ltd 100,000 8,114 811,400,000 - - 

Series B Add Albatross Properties Pvt Ltd 100,000 1,250 125,000,000 - - 

Sankalp Siddhi Developers Pvt Ltd 100,000 7,600 760,000,000 - - 

Sumit Realty Private Limited 100,000 3,675 367,500,000 - - 

Transcon Properties Pvt Ltd 100,000 8,500 850,000,000 - - 

Sheth Buildwell Pvt Ltd 100,000 51 5,100,000 - - 

Galleria Developers Pvt Ltd- Series C 100,000 1,300 130,000,000 - - 

Shanders Properties Private Limited 100,000 3,500 350,000,000 - - 

Satra Properties (India) Limited 100,000 - - 3,158 315,760,000 

Sheth Developers Pvt Ltd 100,000 - - 1,200 120,000,000 

Vijay Associates (Wadhwa) Construction Pvt Ltd 53,360 - - 3,968 211,736,246 

Sub-Total 3,743,543,838 2,539,813,104 

Total 3,848,755,038 3,030,024,304 

Unquoted, Non-Trade, Long Term (Valued at cost) 

Reliance Capital Limited (Market Linked Debenture) 100,000 448 44,800,000 - - 

Sub-Total 44,800,000 - 

Total 3,893,555,038 3,030,024,304 

Note 12. 

 

 

items and result in a net deferred tax asset: 



 

Deferred Tax Asset 

(Amount in `) 


Depreciation 80,853,775 14,282,973 

On Gratuity/Leave Encashment 8,286,996 - 

Provision for Doubtful Debts 131,603,204 49,565,723 

Provision for Standard Assets 72,107,805 56,043,819 

Short Term capital loss 21,522,847 - 

Other - 6,232,834 

Total 314,374,627 126,125,349 

Note 13. LOANS & ADVANCES 


As at 


As at 


As at 


(Amount in `) 

As at 


Loans 

– Secured 31,631,522,813 22,530,974,442 56,388,936,154 39,615,823,654 

– Unsecured 5,386,063 18,330,849 7,460,032 78,013,680 

Less : Provision for doubtful loans (56,222,892) (56,562,880) (244,590,514) (49,497,763) 

Sub-Total 31,580,685,984 22,492,742,411 56,151,805,672 39,644,339,571 

Dues from customers 

– Secured - - 4,250,355,489 2,039,798,354 

– Unsecured - - 7,175,974 42,523,657 

Inter corporate deposit 

– Unsecured - 1,944,700,003 - 500,000,000 

Deposits – Unsecured 236,749,086 237,272,362 - - 

Capital Advances 

– Secured 282,081,048 - - - 

– Unsecured 16,629,159 22,734,188 - - 

Advance income tax (net of provisions 

48,716,815 128,419,802 - - 

` 2,429,443,012/- (previous year 

` 1,442,620,570/-)) – Unsecured 

Sub-Total 584,176,108 2,333,126,355 4,257,531,463 2,582,322,011 

Total 32,164,862,092 24,825,868,766 60,409,337,135 42,226,661,582 

Note 14. OTHER ASSETS 


As at 


As at 


As at 


(Amount in `) 

As at 


Fixed deposits 454,023,383 399,144,118 - - 

Unamortised debenture issue expenses 121,589,401 111,863,067 72,640,523 54,128,088 

Prepaid expenses 4,300,148 4,301,095 788,584,270 591,848,212 

Service tax input - - 63,471,381 10,108,298 

Excess funding in Gratuity fund - - - 1,455,261 

Staff Loans - - 532,389 649,982 

Others - - 133,093,457 1,177,442 

Total 579,912,932 515,308,280 1,058,322,020 659,367,283 

92 




 

Note 15. CURRENT INVESTMENTS 

Particulars 

Unquoted , Non - Trade , Current (valued at 

 

Mutual Funds 

Face Value 

in ` 

(Amount in `) 



Axis Mutual Fund 1,000 385,046 500,000,000 - - 

10 7,825,706 250,000,000 - - 

Union KBC Mutual Fund 1,000 42,599 50,000,000 - - 

ICICI Prudential Mutual Fund 100 2,885,520 500,000,000 - - 

Principal Mutual Fund 1,000 43,890 50,000,000 - - 

Canara Robeco Mutual Fund 1,000 105,271 150,000,000 - - 

DSP Black Rock Mutual Fund 1,000 29,816 50,000,000 - - 

ICICI Prudential Liquid Plan Fund 100 750,235 130,000,000 - - 

DWS Fixed Term Fund 10 - - 36,000,000 360,000,000 

Sub -Total 1,680,000,000 360,000,000 

Non convertible Debentures 

- for Financing Real Estate Projects 

Add Albatross Properties Pvt Ltd 100,000 1,250 125,000,000 - - 

Ankur Energy Resources Private Limited 100,000 - 44,386 3,750 375,000,000 

Galleria Mall Developers Pvt Ltd 100,000 7,101 682,269,452 1,607 160,700,000 

Grand View Estates Private Limited 10,000,000 - - 70 694,470,000 

Kumar Housing Corporation Limited 100,000 - - 1,000 100,000,000 


Neptune Developers Ltd 100,000 800 80,000,000 600 60,000,000 

Prince Foundation Ltd 100,000 - - 750 74,983,143 

Sahyog Homes Limited 100,000 - - 3,650 365,000,000 

Satra Properties (India) Limited 100,000 5,164 516,400,000 4,705 470,540,000 

Sheth Developers Pvt Ltd - - 715,125 - - 

Galleria Mall Developers Pvt Ltd- Series C 100,000 600 60,000,000 - - 

K.R.Mali Builder & Developers Private Limited 100,000 2,000 200,000,000 - - 

Series B Add Albatross Properties Pvt Ltd 100,000 250 25,000,000 - - 

Sankalp Siddhi Developers Pvt Ltd 100,000 1,900 190,000,000 - - 

Sumit Realty Private Limited 100,000 525 52,500,000 - - 

Vijay Associates (Wadhwa) Construction Pvt 53,360 5,331 47,765,759 1,987 106,022,554 

Ltd 

Sub-Total 1,979,694,722 2,681,925,944 

-Others 

Secured Redeemable– Option I: 11.7% p.a.(*) - - 109,996,129 - - 

Secured Redeemable-Option Ill – Reserved & 

- - 82,199 - - 

Un Reserved: 11.9% p.a.(*) 

Sub-Total 110,078,328 - 

Quoted, Trade, Long Term (valued at cost or 

 

Investment in Government or Trust Securities 

8.15% Govt Security - [2022] 100 6,000,000 600,000,000 - 

Sub-Total 600,000,000 - 

Total 4,369,773,050 3,041,925,944 



 

(Amount in `) 

Particulars 

Face Value As at March 31, 2013 As at March 31, 2012 

in ` Number Amount Number Amount 

Aggregate cost of mutual fund units 1,680,000,000 360,000,000 

NAV of mutual fund units 1,681,704,230 387,216,000 

Aggregate cost of quoted investments 600,000,000 - 

Aggregate market value of quoted investments 607,560,000 - 

Aggregate cost of unquoted investments 2,089,773,049 2,681,925,944 

(*) These debentures are under extinguishment process on the balance sheet date 

Note 16. INVENTORIES (VALUED AT LOWER OF COST AND NET REALISABLE VALUE) 

(Amount in `) 

Particulars Face Value As at March 31, 2013 As at March 31, 2012 


Options * 

Strike Price 

Nifty Call 28-06-2012 4100 - - 6,900 9,936,000 

Nifty Call 28-06-2012 5100 - - (5,100) (4,287,621) 

Nifty Call 28-06-2012 5200 - - 1,200 383,400 





Nifty Call 27-06-2013 5200 12,950 5,180,000 12,950 11,085,200 

Nifty Call 26-06-2014 4500 13,550 15,514,750 13,550 15,514,750 

Nifty Call 26-06-2014 4600 9,000 4,900,013 9,000 10,620,000 

Nifty Call 26-06-2014 6500 (10,000) (2,950,000) (10,000) (2,950,000) 

Sub-Total 22,644,763 60,660,804 

Non convertible Debentures * 

Equity linked Non convertible Debentures of 100 000 473 47,300,000 473 46,725,775 

Macquarie Finance (India) Private Limited 

Sub-Total 47,300,000 46,725,775 

Total 69,944,763 107,386,579 

Aggregate market value- stock on hand – 

72,270,182 109,708,660 

Quoted 

* Held to cover possible payout in respect of certain Equity Linked Non-Convertible Debentures issued by the Company. 

Note 17. CASH AND BANK BALANCES 


As at 


As at 


As at 


(Amount in `) 

As at 


Cash on hand - - 1,282,816,018 266,790,821 

Balances with banks in current accounts - - 4,741,495,299 1,622,972,361 

Fixed deposits 454,023,383 399,144,118 2,180,718,220 647,682,230 

Amount disclosed under non-current assets (454,023,383) (399,144,118) - - 

Total - - 8,205,029,537 2,537,445,412 

94 




 

Note 18. REVENUE FROM OPERATIONS 

(Amount in `) 


16,408,031,178 8,878,804,813 

63,422,294 169,974,664 

Dividend income 62,689,154 35,797,027 

Total 16,534,142,626 9,084,576,504 

Note 19. OTHER INCOME 

(Amount in `) 


Processing fee 340,831,777 345,012,921 

96,699,316 44,441,151 

Administration fee & other charges from customer 153,685,660 57,714,489 

Miscellaneous income 246,616,666 4,121,357 

(268,033) - 

Total 837,565,386 451,289,918 

Note 20. EMPLOYEE BENEFIT EXPENSES 

(Amount in `) 


Salaries and bonus 1,645,347,798 1,034,955,864 

Contribution to provident and other funds 32,066,332 22,444,645 

Gratuity expenses 17,163,259 9,953,584 

Staff welfare expenses 99,932,227 25,384,114 

Total 1,794,509,616 1,092,738,207 

 

Details are given below: 

(Amount in `) 


Assumptions 

Discount rate 8.50% 8.50% 

Salary Escalation 5.00% 5.00% 

Rate of return on plan assets 8.60% 8.60% 

 

Liability at the beginning of the year 14,481,910 3,527,983 

Interest Cost 1,231,001 282,239 

Current Service Cost 9,965,833 3,008,733 

Liability Transferred in 80,045 593,324 

Liability Transferred Out (190,730) - 

(65,074) (99,100) 

Actuarial (Gain)/ Loss on obligations 4,934,060 7,168,731 

Liability at the end of the year 30,437,045 14,481,910 

Amount Recognized in the Balance Sheet 

Liability at the end of the year (30,437,045) (14,481,910) 

Fair value of plan Assets at the end of the year 4,895,371 5,993,252 

Funded Status (Surplus) (25,541,674) 11,399,180 

(25,541,674) 11,399,180 

Expenses Recognized in the Income statement 

Liability Transferred in - - 

Interest Cost 1,231,001 282,239 



 

(Amount in `) 


Current Service Cost 9,965,833 3,008,733 

Expected return on plan assets (515,420) (370,645) 

- - 

Actuarial (Gain) or Loss 6,481,845 7,033,257 

Expense Recognized in P&L 17,163,259 9,953,584 

Balance Sheet reconciliation 

Opening Net liability 8,488,658 (1,164,769) 

Net transfer in 80,045 (354,233) 

Net transfer out (190,730) - 

Expenses as above 17,163,259 9,953,688 

Employers contribution (8) (6,605) 

- - 

25,541,224 8,488,658 

Note 21. FINANCE COST 

(Amount in `) 


Interest expenses on borrowings 8,485,186,377 4,686,586,269 

Other borrowing cost 290,835,615 111,721,103 

Total 8,776,021,993 4,798,307,372 

Note 22. DEPRECIATION AND AMORTISATION EXPENSES 

(Amount in `) 


Depreciation of tangible assets 339,737,159 149,079,621 

Amortisation of intangible assets 119,027 517,813 

Total 339,856,186 149,597,434 

Note 23. OTHER EXPENSES 

(Amount in `) 


Advertisement 50,566,151 84,675,921 

Bank Charges 90,297,892 67,890,246 

Communication 99,633,342 71,504,185 

Electricity 103,548,921 58,613,338 

Direct operating expenses 1,102,131,159 58,543,167 

Legal & Professional Fees 152,834,630 103,357,771 

Marketing Expenses 278,563,781 300,313,536 

Miscellaneous Expenses 14,328,335 9,309,301 

438,686,949 289,111,702 

Postage & Courier 20,304,910 14,629,477 

Printing & Stationary 53,753,826 55,322,238 

Rent 669,164,783 432,994,177 

Repairs & Maintenance 

- Computer - 318,740 

- Others 52,451,193 43,064,869 

Remuneration to Auditors : 

- Audit Fees 700,000 725,000 

28,575 110,500 

96 




 

(Amount in `) 


- Out Of Pocket Expenses 111,395 18,776 

Software Charges 12,708,247 74,494,824 

Travelling & Conveyance 127,232,508 65,163,307 

Loss on Investment 130,412,167 - 

Total 3,397,458,764 1,730,161,075 

Note 24. PROVISIONS AND WRITE OFF 

(Amount in `) 


Bad Debts written off 17,846,285 40,001,530 

Provision for Contingencies 55,714,137 46,707,807 

Provision for diminution in value of investments 2,325,419 2,029,581 

Provision for Doubtful Loans 194,752,763 79,302,268 

Provision for Standard Loans 55,587,448 95,318,881 

Total 326,226,052 263,360,067 

Note 25. BASIC AND DILUTED EARNINGS PER SHARE [“EPS”] COMPUTED IN ACCORDANCE WITH ACCOUNTING 

STANDARD (AS) 20 ‘EARNINGS PER SHARE” 

(Amount in `) 


BASIC 

A 1,887,158,027 1,053,809,068 

Number of Shares Subscribed B 237,154,030 237,154,030 

EPS 7.96 4.44 

DILUTED 

C 1,887,158,027 1,053,809,068 

Number of Shares Subscribed 237,154,030 237,154,030 

Add: Potential Equity Shares on Account conversion of Employees 

4,455,000 4,920,000 

Stock Options. 

Weighted Average number of Shares Outstanding D 241,609,030 242,074,030 

EPS 7.81 4.35 

Note 26. 

The summary of consolidated Financial Statements represents consolidation of accounts of the Company with its following 

subsidiaries, all incorporated within India, as detailed below: 

(Amount in `) 

Subsidiary 

 

As at 


As at 


India Infoline Distribution Company Limited* - 100% 

India Infoline Housing Finance Limited 100% 100% 

*During the year, company sold its 100% stake in India Infoline Distribution Company Limited to its holding company India 

Infoline Limited. 



 

Note 27. 

As of March 31, 2013, we had certain contingent liabilities not provided for, including the following 

Sr. 

No. 

Name of the Statute 

As at 


(Amount in `) 

As at 


(i) In respect of Income tax demands 36,888,352 20,742,911 

(ii) In respect of Service tax demands - 15,324,272 

(iii) Guarantees and Counter Guarantees 245,271,036 99,880,250 

Total 282,159,388 135,947,433 

Note 28. 

At the balance sheet date, there were outstanding commitments (net of advances) of capital expenditure of ` 34,859,964/- 

(Previous Year ` 120,633,998/-) out of the total contractual obligation entered during the year. 

Note 29. 

 

 

clause. Some agreements have a clause for a minimum lock-in period. The agreements also have a clause for termination 

by either party giving a prior notice period between 30 to 90 days. The Company has also taken some other assets under 

operating lease. The minimum Lease rentals outstanding as at March 31, 2013, are as under: 

(Amount in `) 

Minimum Lease Rentals 

As at 


As at 


Up to one year 57,584,068 48,766,836 

1,909,985 1,771,900 

Total 59,494,053 50,538,736 

Note 30. 

The Company operates from and uses the premises, infrastructure and other facilities and services as provided to it by its 

 

 

 

to such estimation. These expenses are recovered on an actual basis and the estimates are used only where actual were 

 

Note 31. SEGMENT REPORTING: 

In the opinion of the management, there is only one reportable business segment (Financing and Investing) as envisaged by 

 

 

Secondary segmentation based on geography has not been presented as the Company operates primarily in India and the 

 

within India. 

Note 32. 

There are no dues to Micro and small enterprises (MSEs) outstanding for more than 45 days. 

Note 33. RETURN ON ASSETS: 

 

Note 34. 

During the year under review, the Company had come across frauds totaling to ` 130,873,577/- (Previous year ` 12,168,031/-) 

in respect of our lending operations. Out of the above ` 46,075,000/- has already been recovered. The Company has initiated 

various steps to recover the balance amount. 

Note 35. 

As on March 31, 2013 the gold loan portfolio comprises 34.40% (Previous year 35.56%) of the total asset of the Company. 

98 




 

Note 36. 

Disclosures in respect of applicability of AS – 18 Related Party Disclosures. 

 


Name of party 

Holding Company 


Direct Subsidiaries 

India Infoline Housing Finance Limited 

 

India Infoline Commodities Limited 

India Infoline Media & Research Services Limited 

IIFL Capital Limited 

India Infoline Trustee Company Limited 

India Infoline Asset Management Company Limited 

India Infoline Distribution Company Limited(***) 

India Infoline Insurance Services Limited 

India Infoline Insurance Brokers Limited 

IIFL Wealth Management Limited 

IIFL Realty Limited 

IIFL Alternate Asset Advisors Limited 

IIFL (Asia) Pte. Limited 

IIFL Capital Ceylon Limited 

IIFL Securities Ceylon (Pvt) Limited 

IIFL Private Wealth Hong Kong Limited 

IIFL Private Wealth (Mauritius) Limited 

IIFL Private Wealth (Dubai) Limited 

India Infoline Commodities DMCC 

IIFL Inc. USA 

IIFL Wealth (UK) Limited 

IIFL Capital Inc. 

IIFL Private Wealth (Suisse) SA. 

Group Companies 

IIFL Distribution Services Private Limited (Formerly Finest Wealth Managers Private 

Limited) 

IIFL Trustee Services Limited 

IIFL (Thane) Private Limited(*) 

IIFL Energy Limited(**) 

IIFL Capital Pte. Limited 

IIFL Securities Pte Limited 

(b) Other related parties: 


Key Management 

Name of party 

 

Mr.R.Venkataraman 

Pratima Ram (till March 31, 2013) 

Mukesh Kumar Singh (w.e.f November 1, 2012) 

Other related parties: 

 

Aditi Venkataraman ( wife of Mr. R Venkataraman) 

India Infoline Venture Capital Fund 

(*) With effect from 1st April 2012 The Company has been merged with its holding Company IIFL Realty Limited. 

(**) IIFL Energy Limited was Related Party up to 25th March, 2013. 

(***) During the year under review, India Infoline Distribution Company Limited ceased to be a subsidiary of the 

Company since 100% of the stake was sold to its holding company India Infoline Limited. 



 

 

Nature of Transaction 

Holding 

Company 

Interest Income on 

ICD 

 

Subsidiaries 

Group 

Companies 

Key Management 

personnel 

Total 

4,886,298 210,711,083 - - 215,597,381 

(801,245) (166,888,434) - - (167,689,679) 

Interest Expenses 124,296,251 890,725 - - 125,186,976 

(131,927,155) - - - (131,927,155) 

Dividend Paid 586,168,873 - - - 586,168,873 

- - - - - 

Brokerage 292,810 - - - 292,810 

(494,094) - - - (494,094) 

Sale of Investments 85,126,000 - - - 85,126,000 

- - - - - 

Arranger/Management/ 

- 122,772,501 - - 122,772,501 

processing fees expenses 

- - - - - 

Rent Expenses 122,597,945 - - - 122,597,945 

- - - - - 

Referral Fees/Marketing 

- 245,332,782 - - 245,332,782 

Fees Income 

- - - - - 

Director’s Remuneration - - - 8,271,343 8,271,343 

- - - - - 

ICD repaid/issued 5,310,000,000 1,160,200,000 - - 6,470,200,000 

- (2,037,500,000) - - (2,037,500,000) 

ICD taken/received 5,310,000,000 3,604,900,000 - - 8,914,900,000 

(1,085,100,000) (430,000,000) - (1,515,100,000) 

Advances returned/ 13,577,572,376 617,669,317 - - 14,195,241,693 

reimbursement of 

expenses 

(50,330,350,319) (1,264,870,011) - - (51,595,220,330) 

Advances taken/ 

allocation of expenses 

13,577,572,376 617,669,317 - - 14,195,241,693 

(50,330,350,319) (1,264,870,011) - - (51,595,220,330) 

Sundry payables - - - - - 

- - - - - 

Sundry receivables - - - - - 

- (2,444,700,001) - - (2,444,700,001) 

 

Note 37. 

 

 

Note 38. 

 







of India Infoline Finance Limited 






100 


BOARD OF DIRECTORS 


Director 

Director 

Independent Director 


Non Executive Director 

Executive Director 

COMMITTEE OF THE BOARD 

Audit Committee 

Chairman, Independent Director 



Nomination Committee 



Director 

Director 

Risk Management Committee 


Director 



 

Assets and Liability Committee 


Director 


 

CORE MANAGEMENT TEAM 

Executive Director 

Mortgage Business 

Commercial Vehicle Finance 

Underwriting 

 

Operations 

Internal Audit & Compliance 

Treasurer 

REGISTERED OFFICE 

 

 

CORPORATE OFFICE 

 

 

BANKERS 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUDITORS 


INTERNAL AUDITORS 

 

REGISTRAR AND SHARE TRANSFER AGENT

INDIA INFOLINE FINANCE LIMITED 

 

 

 

 

 

 

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Annual Report 2012-13 - India Infoline Finance Limited

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