IDFC FInanCe LImIteD

IDFC Finance Limited DIRECTORS Mr. Sunil Kakar - Chairman Mr. Sadashiv S. Rao Dr. Rajeev Uberoi AUDITORS Deloitte Haskins & Sells Chartered Accountants PRINCIPAL BANKERS HDFC Bank Limited REGISTERED OFFICE The Capital Court, 6th Floor, Olof Palme Road Munirka, New Delhi- 110 067 Tel:+91 11 4331 1000 Fax:+91 11 2671 3359 Website: www.idfc.com

Directors' Report TO THE MEMBERS Your Directors have pleasure in presenting the Thirteenth Annual Report together with the audited accounts for the year ended March 31, 2013.

Financial Results As at March 31, 2013

particulars

Total Income Less: Total Expenses Profit / (Loss) before Tax Less: Provision for Tax Profit / (Loss) after Tax

As at March 31, 2012

`

`

17,079,157

26,242,883

361,194

491,670

16,717,963

25,751,213

2,604,206

1,687,030

14,113,757

24,064,183

Dividend The Directors do not recommend any dividend for the year ended March 31, 2013.

Directors In accordance with the provisions of the Companies Act, 1956 and the Company's Articles of Association, Mr. Sunil Kakar would retire at the ensuing Annual General Meeting (AGM) and being eligible, offers himself for re-appointment. The Board of Directors recommended re-appointment of Mr. Sunil Kakar at the ensuing AGM.

Audit Committee The Audit Committee consists of three members, Mr. Sunil Kakar, Mr. Sadashiv S. Rao and Dr. Rajeev Uberoi. During the year, the Committee met four times. The functions of the Committee include reviewing the quarterly and annual financial statements, internal control systems and significant accounting policies of the Company and discussing the audit findings and recommendations of the statutory auditors of the Company.

Auditors M/s. Deloitte Haskins & Sells, Ahmedabad, will retire as the Statutory Auditors of the Company at the ensuing AGM. The Board of Directors, at its meeting held on April 22, 2013, has proposed the re-appointment of M/s. Deloitte Haskins & Sells, Ahmedabad, as statutory auditors to audit the accounts of the Company for the year ending March 31, 2014. M/s. Deloitte Haskins & Sells, Ahmedabad, the retiring Auditors, have confirmed that their re-appointment, if made, would be in conformity with the provisions of Sections 224 and 226 of the Companies Act, 1956 and also indicated their willingness to be appointed. You are requested to consider their re-appointment.

PUBLIC DEPOSITS During the period under review, your Company has not accepted public deposits under the provisions of Section 58-A of the Companies Act, 1956.

Particulars regarding conservation of energy and technology absorption Since the Company does not own any manufacturing facility, the disclosure of information on other matters required to be disclosed in terms of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1998, are not applicable and hence not given.

FOREIGN EXCHANGE EARNINGS AND EXPENDITURE There was no income or expenditure in foreign currency during the period under review.

PARTICULARS OF EMPLOYEES AND REMUNERATION Since your Company does not have any employees, the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, are not applicable and hence not given.

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ANNUAL REPORT 2012–2013

Directors' Report DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors confirm that: in preparation of the annual accounts, the applicable accounting standards have been followed alongwith proper explanation relating to the material departures; they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at March 31, 2013 and the profit of the Company for the year ended on that date; they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and they have prepared annual accounts on a going concern basis.

ACKNOWLEDGEMENTS The Directors express their gratitude for the unstinted support and guidance received from IDFC Limited and other group companies.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

SUNIL KAKAR

Chairman Mumbai, July 1, 2013

I D F C F inance L i m ited

| 7 5

Independent Auditors' Report TO THE MEMBERS OF IDFC FINANCE LIMITED Report on the Financial Statements We have audited the accompanying financial statements of IDFC FINANCE LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 (“the Act”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013; (b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”) issued by the Central Government in terms of Section 227(4A) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. 2. As required by Section 227(3) of the Act, we report that: (a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. (c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. (d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in Section 211(3C) of the Act. (e) On the basis of the written representations received from the directors as on March 31, 2013 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013 from being appointed as a director in terms of Section 274(1)(g) of the Act.

For DELOITTE HASKINS & SELLS

Chartered Accountants (Registration No. 117365W) Z. F. Billimoria

Partner (Membership No. 42791) Mumbai, April 22, 2013

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Annexure to the Auditors’ Report (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date) (i) Having regard to the nature of the Company’s business/activities/result/transactions etc., clauses (i), (ii), (vi), (viii), (x), (xi), (xii), (xiii), (xv), (xvi), (xvii), (xviii), (xix) and (xx) of CARO are not applicable. (ii) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. (iii) In our opinion and according to the information and explanations given to us, having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to sale services. During the course of our audit, we have not observed any major weakness in such internal control system. (iv) To the best of our knowledge and belief and according to information and explanation given to us, there were no contracts or arrangements required to be entered in the register maintained in pursuance of section 301 of the Companies Act, 1956. (v) The Company does not have an internal audit system. (vi) According to the information and explanations given to us in respect of statutory dues: (a) The Company has been regular in depositing undisputed dues, including Income-tax and other material statutory dues applicable to it with the appropriate authorities. (b) There were no undisputed amounts payable in respect of Income-tax and other material statutory dues in arrears as at March 31, 2013 for a period of more than six months from the date they became payable. (vii) Based on our examination of the records and evaluation of the related internal controls, the Company has maintained proper records of the transactions and contracts in respect of its dealing in shares securities, debentures and other investments and timely entries have been made therein. The aforesaid securities have been held by the Company in its own name. (viii) To the best of our knowledge and according to the information and explanations given to us, no fraud by or on the Company has been noticed or reported during the year. For DELOITTE HASKINS & SELLS

Chartered Accountants (Registration No. 117365W) Z. F. Billimoria

Partner (Membership No. 42791) Mumbai, April 22, 2013


| 7 7

Balance Sheet

AS AT MARCH 31, 2013 As at March 31, 2013



`

`

`

Notes

Equity and liabilities Shareholders’ funds

(a) Share capital

3

210,002,000

(b) Reserves and surplus

4

107,733,740

210,002,000 93,619,983 317,735,740

303,621,983

Current liabilities

(a) Trade payables

5

184,046

(b) Other current liabilities

6

20,900

195,259 21,165

(c) Short-term provisions

7

289,469

169,923

Total

494,415

386,347

318,230,155

304,008,330

Assets Non-current assets

(a) Long term loans and advances

8

2,323,005

(b) Non- current investments

9

50,000,000

1,412,432 52,323,005

1,412,432

Current assets

(a) Current investments

10

265,579,268

(b) Cash and bank balances

11

327,882

301,992,690 603,208

Total

265,907,150

302,595,898

318,230,155

304,008,330

See accompanying notes forming part of the financial statements.

In terms of our report attached. For Deloitte Haskins & Sells

For and on behalf of the Board of Directors of

Chartered Accountants

IDFC finance Limited

Z. F. Billimoria

Sunil Kakar

Sadashiv S. Rao

Partner

Director

Director

Bipin N. Gemani

Mumbai | April 22, 2013

78

| IDFC


Manager

Statement of Profit and Loss

FOR THE YEAR ENDED MARCH 31, 2013 For the year ended March 31, 2013

For the year ended March 31, 2012

`

`

26,242,883

Notes

I

Income

Revenue from operations

12

17,060,425

Other income

13

18,732

-

17,079,157

26,242,883

Total income (I) II

Expenses

Finance cost

14

1,081

47,235

Other expenses

15

360,113

444,468

-

(33)

361,194

491,670

16,717,963

25,751,213

Current tax

3,346,000

2,625,000

Minimum Alternate Tax (MAT) credit (See note 8)

(764,000)

(950,000)

Provisions for diminution in value of investments Total expenses (II) I I I Profit before tax (I- II) I V Tax expense

Short provision in earlier years Total tax expense V

Profit for the year from continuing operations (III - IV) Earnings per equity share (nominal value of share ` 10)

22,206

12,030

2,604,206

1,687,030

14,113,757

24,064,183

18

(a) Basic (`)

0.67

1.15

(b) Diluted (`)

0.67

1.15

See accompanying notes forming part of the financial statements.





Z. F. Billimoria

Sunil Kakar

Sadashiv S. Rao

Partner

Director

Director

Bipin N. Gemani


Manager


| 7 9

Cash Flow Statement

FOR THE YEAR ENDED MARCH 31, 2013 For the year ended March 31, 2013


`

`

16,717,963

25,751,213

A. Cash flow from operating activities

Profit before tax

Adjustments for: Provision for Interest on delayed payment of advance tax

Operating profit before working capital changes

-

47,235

16,717,963

25,798,448

Changes in working capital:

Adjustments for (increase) / decrease in operating assets: Other current assets

-

859,500

Current Investments

36,413,422

(24,418,432)

(50,000,000)

-

Non-current Investments

Adjustment for increase/ (decrease) in operating liabilities Trade payables Other current liabilities Direct taxes paid (net of refund) Net cash used in operating activities

(11,213)

16,574

(265)

(20,183)

(3,395,233)

(2,587,751)

(A)

(275,326)

(351,844)

-

-

(B)

-

-

-

-

(C)

-

-

(275,326)

(351,844)

B. Cash flows from investing activities NET CASH from INVESTING ACTIVITIES C. Cash flow from financing activities

Net cash from financing activities

Net (decrease) / increase in cash and cash equivalents

(A+B+C)

Cash and cash equivalents as at the beginning of the year (see note 11)

603,208

955,052

Cash and cash equivalents as at the end of the year (see note 11)

327,882

603,208

(275,326)

(351,844)





Z. F. Billimoria

Sunil Kakar

Sadashiv S. Rao

Partner

Director

Director

Bipin N. Gemani


80

| IDFC


Manager

Notes forming part of financial statements

aS AT AND For the year ended March 31, 2013

01 Background IDFC Finance Limited is a wholly owned subsidiary of IDFC Limited (formerly known as Infrastructure Development Finance Company Limited ) (“IDFC”), incorporated in India and regulated by the Reserve Bank of India (RBI) as a Non Banking Financial Company .

02 Significant accounting policies a. Basis of preparation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006, (as amended), the relevant provisions of the Companies Act, 1956 and the applicable guidelines issued by the RBI. The financial statements have been prepared on the accrual basis under the historical cost convention. Accounting policies adopted in the preparation of the financial statements are consistent with those followed in previous year.

b. Use of estimates The preparation of the financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

c. Investments Investments which are readily realisable and intended to be held for not more than one year from the date on which such investments are made are classified as current investments in accordance with the RBI guidelines and Accounting Standard 13 on ‘Accounting for Investments’ as notified by the Companies (Accounting Standards) Rules, 2006. All other investments are classified as long-term investments. All investments are initially recorded at cost. The cost of an investment includes purchase price, directly attributable acquisition charges and reduced by recovery of costs, if any. On disposal of an investment, the difference between its carrying amount and the net disposal proceeds is charged or credited to the Statement of Profit and Loss. Long Term Investments' are carried at acquisition cost. A provision is made for diminution other than temporary on an individual basis. Current Investments' are carried at the lower of cost or fair value on an individual basis.

d. Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. In addition, the following criteria must also be met before revenue is recognised: Interest Income is accounted for on accrual basis. Dividend is accounted on accrual basis when the right to receive is established. Profit / loss earned on sale of investments is recognised on trade date basis. Profit / loss on sale of investments is determined based on the FIFO cost for current investments and weighted average cost for long term investments.

e. Taxes on income Current tax is the amount payable on taxable income for the year as determined in accordance with the provisions of Income-tax Act 1961. The accounting treatment for income-tax in respect of the Company's income is based on Accounting Standard 22 on 'Accounting for Taxes on Income' as notified by the Companies (Accounting Standards) Rules, 2006. The provision made for income-tax in the accounts comprises both, the current tax and the deferred tax. The deferred tax assets and liabilities for the year arising on account of timing differences are recognised in the Statement of Profit and Loss and the cumulative effect thereof is reflected in the Balance Sheet. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income-tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carried forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that the same can be realised against future taxable profits.

f. Cash and cash equivalents Cash and cash equivalents for the purpose of Cash Flow Statement comprises cash on hand, cash in bank, fixed deposits and other short term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in value.


| 8 1



g. Cash flow statement Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

h. Earnings per share Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

i. Provisions and contingencies A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities if any, are disclosed in the notes.

03 Share capital As at March 31, 2013


Number

`

Number

`

40,000,000

400,000,000

40,000,000

400,000,000

27,000,400

270,004,000

27,000,400

270,004,000

21,000,200

210,002,000

21,000,200

210,002,000

Authorised

Equity shares of ` 10 each issued shares

Equity shares of ` 10 each Subscribed & fully paid-up shares

Equity shares of ` 10 each All of these shares are held by IDFC Limited (formerly known as Infrastructure Development Finance Company Limited), the holding company and its nominees Total Issued, subscribed & fully paid up share capital

210,002,000

210,002,000

(a) Reconciliation of the number of equity shares outstanding at the beginning and at the end of the year. As at March 31, 2013

Name of Shareholder

Outstanding at the beginning of the year

`

Number

`

21,000,200

210,002,000

21,000,200

210,002,000

-

-

-

-

21,000,200

210,002,000

21,000,200

210,002,000

Issued during the year Outstanding at the end of the year


Number

(b) Terms / rights attached to equity shares The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to one vote

per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the

Company, after distribution of all preferential amounts. However, no such preferential amounts exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) Details of shareholders holding more than 5% of the equity shares in the company As at March 31, 2013

Name of Shareholder

IDFC Limited

82

| IDFC



Number

% of Holding

Number

% of Holding

21,000,200

100.00%

21,000,200

100.00%



04 Reserves and surplus (a)



`

`

18,730,000

13,911,159

2,825,000

4,818,841

21,555,000

18,730,000

Special Reserve u/s. 45-IC of RBI Act,1934

Opening balance Add : Transferred from surplus balance in Statement of Profit and Loss Closing balance (b)

Surplus in the Statement of Profit and Loss

Opening balance

74,889,983

55,644,641

Profit for the year

14,113,757

24,064,183

Less: Appropriations Transfer to Special reserve u/s. 45-IC of RBI Act, 1934 Closing balance Total reserve and surplus

2,825,000

4,818,841

86,178,740

74,889,983

107,733,740

93,619,983



05 Trade Payables `

`

Provision for expenses

184,046

195,259

Total

184,046

195,259

No amount is payable to "Suppliers" under Micro, Small and Medium Enterprises Development Act, 2006.No interest has been paid / is payable by the Company during the year to the “Suppliers” covered under the Micro, Small and Medium Enterprises Development Act, 2006. The above information takes into account only those suppliers who have responded to inquiries made by the Company for this purpose.

06 Other current liabilities As at March 31, 2013


`

`

Statutory dues

20,900

21,165

Total

20,900

21,165



07 Short term Provisions `

`

Provision for tax [net of advance income tax ` 7,106,404 (Previous year ` 1,764,185)]

289,469

169,923

Total

289,469

169,923



`

`

08 Long term loans and advances(unsecured) (considered good) Advance payment of income tax (net of provision for tax) [net of provision for tax ` 12,157,235 (Previous year ` 12,165,235)] Minimum Alternate Tax (MAT) credit * Total

609,005

462,432

1,714,000

950,000

2,323,005

1,412,432

* Since the tax provision as per the normal provisions of the Income - tax Act, 1961 ("the Act") is lower than the tax computed u/s 115JB of the Act, the current tax provision represents the Minimum Alternate Tax (MAT) u/s 115JB. The Company is eligible for MAT credit as per the provisions of Section 115JAA of the Act to the extent MAT exceeds the tax arising under normal provisions of the Act.


| 8 3



09 Non-current investments (Non Trade) (at cost) FACE VALUE `



Number of units

`

Number of units

`

5,000,000.000

50,000,000

-

-

Investment in mutual funds (unquoted)

IDFC Fixed Term Direct Plan Series-10 Growth

10

Total

50,000,000

-

Cost

50,000,000

-

Market value

50,590,000

-

(a) Aggregate amount of investments in unquoted mutual funds

Market value of investments in unquoted mutual funds represents the repurchase price of the units issued by the mutual funds.

10 Current investments (Non Trade) (Valued at lower of cost and market value) FACE VALUE



`

Number of units

`

Number of units

IDFC Fixed Maturity 366 Days-79- Growth

10

20,000,000.000

200,000,000

-

-

ICICI Prudential Institutional Liquid Fund-Super Institutional Plan -Growth

100

6,271.074

812,744

6,271.074

812,744

IDFC Money Manager Fund-Treasury Plan-Super Inst Plan C-Growth

10

101,313.362

1,179,946

101,313.362

1,179,946 13,500,000

`

Current Investments Investment in mutual funds (unquoted)

-

-

10,549.950

IDFC Cash Fund - Growth - Direct Plan

IDFC Cash Fund Super Inst Plan C Growth

1,000 10

2,560.464

3,586,578

-

-

IDFC Fixed Maturity Plan Yearly Series 58-Growth

10

-

-

9,000,000.000

90,000,000

IDFC Fixed Maturity Plan Quartely Series 69-Growth

10

-

-

19,650,000.000

196,500,000

IDFC Ultra Short Term Fund - Growth - Direct Plan

10

3,698,931.625

60,000,000

-

-

265,579,268

301,992,690

-

-

265,579,268

301,992,690

Cost

265,579,268

301,992,690

Market value

281,805,218

306,469,324

Less: Provision for diminution in the Value of Investments Total (a) Aggregate amount of investments in unquoted mutual funds

Market value of investments in unquoted mutual funds represents the repurchase price of the units issued by the mutual funds.

11 Cash and bank balances As at March 31, 2013


`

`

Cash and cash equivalents

Balances with bank: In current account

327,882

603,208

Total

327,882

603,208

84

| IDFC




12 Revenue from operations

Dividend income on current investments Profit on sale of current investments Total

for the year ended March 31, 2013


`

`

-

12,318,514

17,060,425

13,924,369

17,060,425

26,242,883



`

`

13 Other Income

Interest on Income-tax refund Miscellaneous Income Total

12,777

-

5,955

-

18,732

-



`

`

14 Finance Cost

Interest on delayed payment of TDS / advance tax

1,081

47,235

Total

1,081

47,235



`

`

48,314

119,698

15 Other expenses

Legal and professional fees Miscellaneous expenses

-

293

Reversal of interest on Income-tax refund

-

22,636

Auditors' remuneration [see note (a)]

311,799

301,841

Total

360,113

444,468



(a) Break up of auditors’ remuneration:

`

`

150,000

150,000

Tax audit fee

30,000

30,000

Other services

97,500

90,000

Audit fee

Out of pocket expenses Service Tax Total

-

293

34,299

31,548

311,799

301,841


| 8 5



16 The Company is engaged in investing activities in India as such there is no separate reportable primary business or geographical segment

as

per Accounting Standard 17 on ‘Segment Reporting’ as notified by the Companies (Accounting Standards) Rules, 2006.

17 As per Accounting Standard 18 on 'Related Party Disclosures' as notified by the Companies (Accounting Standards)

Rules, 2006, the related

parties of the Company are as follows: Relationship:

I.

Holding Company

:

IDFC Limited (formerly known as Infrastructure Development Finance Company Limited)

II.

Key Management Personnel

:

Mr. Bipin Gemani - Manager

There were no transactions between the above related parties for the year ended March 31, 2013 and March 31, 2012.

18 In accordance with Accounting Standard 20 on 'Earnings Per Share' as notified by the Companies (Accounting Standards) Rules, 2006: For the year ended March 31, 2013


Profit for the year (`)

14,113,757

24,064,183

Weighted average number of equity shares (Nos.)

21,000,200

21,000,200

0.67

1.15

10

10

Basic & Diluted Earnings Per Share (`) Nominal Value Per Share (`)

19 The following additional information is disclosed in terms of the RBI circular (Ref. No. DNBS (PD) CC No.279 / 03.02.001 / 2012-13

dated

July 2, 2012): (a) Investor group wise classification of all investments (Current and Long Term) in shares and securities (both Quoted and Unquoted): as at March 31, 2013

Category

Market Value/ Breakup Value / Fair Value / NAV

1. Related parties 2. Other than related parties

Book Value Net of Provision

as at March 31, 2012

Market Value/ Breakup Value / Fair Value / NAV

Book Value Net of Provision

-

-

-

-

332,395,218

315,579,268

306,469,324

301,992,690

20 Previous Year figures Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

For and on behalf of the Board of Directors of IDFC finance Limited Sunil Kakar

Sadashiv S. Rao

Director

Director

Bipin N. Gemani


86

| IDFC


Manager