Annual Report 2008-09

1
 Annual Report 2008-09
(As on 31.07.2009)
Board of Directors

Shri Prakash P Mallya Shri K V Eapen Shri Sanjeev Kumar Jindal Shri P G Muralidharan
Chairman of the Board

Shri Atul Kumar Rai

Chief Executive Officer & Prof Shobhit Mahajan Shri Tejinder Singh Laschar Shri K Raghuraman Shri K Narasimha Murthy
Managing Director

Shri S Shabbeer Pasha Smt Usha Sangwan Shri Sujit K Mandal

Whole Time Director

Principal Officers
EXECUTIVE DIRECTOR
Shri Javed Yunus

CHIEF GENERAL MANAGERS

Shri T K Ray Shri R P Singh Shri Rakesh Kapoor Shri R S Sandhu Shri Sonjoy Sethee (CFO)
(On deputation to IFL)
Shri N D Auddy Smt Shashi Sharma Shri S P Arora Shri N K Duggal Shri B N Nayak

GENERAL MANAGERS/VICE PRESIDENT

Shri Dinesh Sharma Shri D K Jain Shri Gautam Meour

Shri Rattan Singh Shri V Satyavenkata Rao Shri S P Sharma

COMPANY SECRETARY
Smt Rupa Sarkar

STATUTORY AUDITORS
Ray & Ray
Chartered Accountants

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 Annual Report 2008-09
Notice
NOTICE is hereby given that the Sixteenth Annual General
Meeting of the Members of IFCI Limited will be held on Friday,
September 18, 2009 at 10:30 A.M. at Air Force Auditorium,
Subroto Park, New Delhi-110010 to transact the following
business:
Ordinary Business
1. To consider and adopt the Audited Balance Sheet as at
March 31, 2009 and the Profit and Loss Account for the
year ended March 31, 2009 and the report of the Board of
Directors and Auditors’ thereon.
2. To confirm the interim dividend already paid on Preference
Shares as Final Dividend.
3. To declare dividend on Equity Shares.
4. To appoint a Director in place of Shri P G Muralidharan,
who retires by rotation and being eligible, offers himself
for re-appointment.
5. To appoint Auditors and fix their remuneration and for the
purpose to consider and, if thought fit, to pass, with or
without modification(s), the following resolution as a
Special Resolution:
“RESOLVED that pursuant to the provisions of Section 224,
224A, 225 and other applicable provisions, if any, of the
Companies Act, 1956, M/s Chokshi & Chokshi, Chartered
Accountants, be and are hereby appointed as Auditors of
the Company, in place of the retiring Auditors, Ray & Ray,
Chartered Accountants, to hold office from the conclusion
of this Annual General Meeting until the conclusion of the
next Annual General Meeting of the Company at a
remuneration to be decided by the Board/Audit Committee
of Directors of the Company, in addition to reimbursement
of all out of pocket expenses in connection with the audit
of the Company.”
Special Business
6. To consider and, if thought fit, to pass, with or without
modification(s), the following resolution, as Ordinary
Resolution:
“RESOLVED that pursuant to Section 260 of the Companies
Act, 1956, Article 130 of the Articles of Association of the
Company, Shri Prakash P Mallya, who was appointed as
an Additional Director with effect from October 14, 2008
and who holds office upto the date of ensuing Annual
General Meeting and in respect of whom the Company has
received a notice under Section 257 of the Companies Act,
1956, proposing his candidature as a Director of the
Company, be and is hereby appointed as a Director of the
Company liable to retire by rotation.”
7. To consider and, if thought fit, to pass, with or without
modification(s), the following resolution, as Ordinary
Resolution:
“RESOLVED that pursuant to Section 260 of the Companies
Act, 1956, Article 130 of the Articles of Association of the
Company, Shri Tejinder Singh Laschar, who was appointed
as an Additional Director with effect from October 14, 2008
and who holds office upto the date of ensuing Annual
General Meeting and in respect of whom the Company has
received a notice under Section 257 of the Companies Act,
1956, proposing his candidature as a Director of the
Company, be and is hereby appointed as a Director of the
Company liable to retire by rotation.”
8. To consider and, if thought fit, to pass, with or without
modification(s), the following resolution, as Ordinary
Resolution:
“RESOLVED that pursuant to Section 260 of the Companies
Act, 1956, Article 130 of the Articles of Association of the
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Company, Shri K Narasimha Murthy, who was appointed
as an Additional Director with effect from October 14, 2008
and who holds office upto the date of ensuing Annual
General Meeting and in respect of whom the Company has
received a notice under Section 257 of the Companies Act,
1956, proposing his candidature as a Director of the
Company, be and is hereby appointed as a Director of the
Company liable to retire by rotation.”
9. To consider and, if thought fit, to pass, with or without
modification(s), the following resolution, as Ordinary
Resolution:
“RESOLVED that pursuant to Section 260 of the Companies
Act, 1956, Article 130 of the Articles of Association of the
Company, Shri K Raghuraman, who was appointed as an
Additional Director with effect from October 14, 2008 and
who holds office upto the date of ensuing Annual General
Meeting and in respect of whom the Company has received
a notice under Section 257 of the Companies Act, 1956,
proposing his candidature as a Director of the Company,
be and is hereby appointed as a Director of the Company
liable to retire by rotation.”
10. To consider and, if thought fit, to pass, with or without
modification(s), the following resolution, as Ordinary
Resolution:
“RESOLVED that pursuant to Section 260 of the Companies
Act, 1956, Article 130 of the Articles of Association of the
Company, Shri S Shabbeer Pasha, who was appointed as
an Additional Director with effect from October 14, 2008
and who holds office upto the date of ensuing Annual
General Meeting and in respect of whom the Company has
received a notice under Section 257 of the Companies Act,
1956, proposing his candidature as a Director of the
Company, be and is hereby appointed as a Director of the
Company liable to retire by rotation.”
11. To consider and, if thought fit, to pass, with or without
modification(s), the following resolution, as Ordinary
Resolution:
“RESOLVED that pursuant to Section 260 of the Companies
Act, 1956, Article 130 of the Articles of Association of the
Company, Smt Usha Sangwan, who was appointed as an
Additional Director with effect from March 23, 2009 and
who holds office upto the date of ensuing Annual General
Meeting and in respect of whom the Company has received
a notice under Section 257 of the Companies Act, 1956,
proposing her candidature as a Director of the Company
be and is hereby appointed as a Director of the Company
liable to retire by rotation.”
12. To consider and if thought fit, to pass, with or without
modification(s), the following resolution, as an Ordinary
Resolution:
“RESOLVED that Shri Sujit K Mandal, who was appointed
as an Additional and Whole Time Director by the Board of
Directors of the Company with effect from November 1,
2008 and who, as per the provisions of Section 260 of the
Companies Act, 1956 holds office upto the date of this
Annual General Meeting and in respect of whom the
Company has, pursuant to Section 257 of the Companies
Act 1956, received a notice from a member, in writing,
proposing the candidature of Shri Sujit K Mandal, for the
office of Director, be and is hereby appointed as a Director
of the Company not liable to retire by rotation.”
“RESOLVED FURTHER that subject to the provisions of
Section 198, 269, 309, 311 read with Schedule XIII and
other applicable provisions of the Companies Act, 1956 and
Article 162 of Articles of Association of the Company and
 Annual Report 2008-09
such other approvals as may be required, and such
modifications and conditions, if any, as any authority may
impose while according approval, which the Board of
Directors is hereby authorised to accept, consent of the
members, be and is hereby accorded for the appointment
of Shri Sujit K Mandal as Whole Time Director with effect
from November 1, 2008 for a period of two years and to
the payment of remuneration as set out hereunder:
i) Pay: Basic Salary of Rs.1,08,662/- per month.
ii) Provident Fund: Monthly subscription to the Fund at
the minimum rate of 10% of the pay. IFCI shall
contribute every month a sum equal to 10% of pay to
the account in the Fund. He shall not be covered
under IFCI Pension Regulations.
iii) Housing: Rent free accommodation, as per rules of
IFCI or House Rent Allowance @50% of the basic pay.
iv) Travelling, Boarding and Lodging: Actual
expenditure to be reimbursed for outstation journeys
undertaken for official work.
v) Medical Benefits: Actual expenses incurred for self
and his family.
vi) Personal Accident Insurance: Premium (not to exceed
Rs.4000/- per annum).
vii) Club Fee: Fee of Clubs subject to a maximum of two
Clubs (excluding admission and life membership fee).
viii) Gratuity: 15 days salary for each completed year of
service. Part service in excess of six months shall be
reckoned as a completed year of service.
ix) Payment of tax on Perquisites/Special (Perquisite)
Allowance: IFCI to bear tax in full on non-monetary
perquisites and to pay special allowance on monetary
perquisites which are taxable.
x) Leave Travel Allowance: Entitled to travel with
family, by any mode, i.e., Air, Train, Road once in a
year for visiting any place in India.
xi) Other Perquisites: Other retiral benefits and like
amounts/benefits would be paid as per rules of IFCI.
“RESOLVED FURTHER that in the event of absence or
inadequacy of profit in any financial year during his tenure,
the aforesaid remuneration shall be paid as minimum
remuneration subject to compliance of provisions of Schedule
XIII of the Companies Act, 1956.”
“RESOLVED FURTHER that the Board of Directors, be and
is hereby authorised to alter and vary the aforesaid terms
as to remuneration (including perquisites) within the
ceiling limits in that behalf laid down in Schedule XIII to
the Companies Act, 1956.”
“RESOLVED FURTHER that for the purpose of giving effect
to this resolution, the Board of Directors of the Company,
be and is hereby authorised to do all such acts, deeds and
things as may be deemed necessary or desirable or to settle
any question or difficulty that may arise, in such manner
as it may deem fit.”
Registered Office: By order of the Board of Directors
IFCI Ltd
IFCI Tower
61 Nehru Place
New Delhi-110019
Rupa Sarkar
Dated : July 22, 2009 Company Secretary
NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE IS
ENTITLED TO APPOINT A PROXY TO ATTEND AND
VOTE INSTEAD OF HIMSELF AND THE PROXY NEED
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NOT BE A MEMBER OF THE COMPANY. THE PROXIES
IN ORDER TO BE VALID AND EFFECTIVE, MUST BE
DELIVERED TO THE REGISTERED OFFICE OF THE
COMPANY ATLEAST FORTY-EIGHT HOURS BEFORE THE
COMMENCEMENT OF THE MEETING.
2. The Explanatory Statement pursuant to the provisions of
Section 173(2) of the Companies Act, 1956, setting out
material facts in respect of the business under Item Nos. 6,
7, 8, 9, 10, 11 & 12 are annexed hereto.
3. All documents referred to in the accompanying Notice and
the Explanatory Statement are open for inspection at the
Registered Office of the Company on all working days
except Saturdays, Sundays and Holidays between 11:00
A.M. and 1:00 P.M. up to the date of Annual General
Meeting.
4. Register of Members and Share Transfer Books for Equity
Shares will remain closed from Saturday, September 5,
2009 to Friday, September 18, 2009 (both days inclusive).
5. IFCI is not including the financial statements and other
details of its subsidiaries viz. IFCI Financial Services Ltd,
IFCI Venture Capital Funds Ltd, IFCI Infrastructure
Development Ltd, IFCI Factors Ltd and MPCON Ltd, in its
financial statements in terms of exemption granted by the
Ministry of Corporate Affairs under Section 212(8) of the
Companies Act, 1956. However, annual accounts of the
subsidiary companies and the related detailed information
will be made available to the investors of IFCI or its
subsidiary companies seeking such information at any
point of time on specific request in writing to the Company.
The Annual Accounts of the subsidiary companies are open
for inspection at the registered office of IFCI and at the
registered offices of the respective subsidiary companies up
to the date of Annual General Meeting on any working day.
6. The members holding shares/bonds in physical form are
requested to intimate to the Registrar and Transfer Agents
(R&TA), MCS Ltd, F-65, Okhla Industrial Area, Phase-I, New
Delhi-110020 for change of address, if any, at the earliest,
quoting their registered folio number. Change of address
in respect of shares/bonds held in demat form is required
to be intimated to the concerned Depository Participant.
7. Members holding shares in more than one folio in identical
order of names are requested to write to R&TA enclosing
their share certificates to enable them to consolidate the
holdings in one folio to facilitate better service.
8. Members seeking any information with regard to accounts
or operations are requested to write to the Company at an
early date, preferably atleast seven days prior to the date
of meeting, so as to enable the management to keep the
information ready.
9. Members/Proxies should bring the attendance slips duly
filled in for attending the meeting. Members who hold
shares in dematerialized form are requested to bring their
client ID and DPID numbers for easy identification of
attendance at the meeting.
10. Pursuant to Section 205A of the Companies Act 1956, the
Company has already transferred all unclaimed dividend
declared up to the financial year ended March 31, 1994 to
the General Revenue Account of the Central Government
as required by the Unpaid Dividend (Transfer to the General
Revenue Account of the Central Government) Rules, 1978.
Those shareholders, who have so far not claimed their
dividend upto the aforesaid financial year, may claim their
dividend from the Registrar of Companies, Delhi & Haryana.
11. Consequent upon amendment to Section 205A and
introduction of Section 205C, the unclaimed dividend for
the financial years 1994-95 to 1998-99 has been transferred
to the Investor Education & Protection Fund.
 Annual Report 2008-09
12. A special notice in terms of Section 190 of the Companies
Act, 1956, has been received under Section 225(1) from
members proposing the appointment of M/s Chokshi &
Chokshi, Chartered Accountants, as Auditors of the
Company in place of M/s Ray & Ray, Chartered Accountants,
the retiring auditors of the Company.
13. In order to provide protection against fraudulent
encashment of Dividend Warrants, shareholders holding
shares in physical form are requested to intimate the
Company under the signature of the Sole/First joint holder,
the following information which will be used by the
Company for Dividend payments:
i) Name of Sole/First joint holder and Folio No.
ii) Particulars of Bank Account viz.:
• Name of the Bank
• Name of Branch
• Complete address of the Bank with Pin Code
Number
• Account type, whether Savings Bank (SB) or
Current Account
• Bank Account Number alloted by the Bank
In case of Shareholders holding shares in electronic form,
Bank account details provided by the Depository
Participants (DPs) will be used by the Company for printing
on dividend warrants. Shareholders who wish to change
such bank accounts may advise their DPs about such
change with complete details of Bank Account including
MICR Code.
Shareholders residing at the centers where Electronic
Clearance Service (ECS) facility is available are advised to
avail of the option to collect Dividend by way of ECS.
Equity shareholders holding shares in physical form are
requested to send their ECS Mandate Form in the format
available for download on the Company's website
(www.ifciltd.com) duly filled in, to the Registrar and
Transfer Agent of the Company, MCS Ltd. In case of Equity
Shareholders holding shares in electronic form, the ECS
Mandate Form will have to be sent to the concerned
Depository Participants (DPs) directly.
EXPLANATORY STATEMENT PURSUANT TO SECTION
173(2) OF THE COMPANIES ACT, 1956
Item No. 6
Shri Prakash P Mallya, was appointed as an Additional Director
by the Board of Directors of the Company. In terms of Section
260 of the Companies Act, 1956, Shri Mallya shall hold office
upto the date of this Annual General Meeting of the Company.
The Company has received a valid notice and requisite deposit
from a member of the Company under Section 257 of the
Companies Act, 1956 proposing the candidature of Shri Mallya
for office of Director. In view of the background and valuable
experience of Shri Mallya, it will be in the interest of the
Company that Shri Mallya continues as a Director of the
Company. Brief resume of Shri Mallya is set out in the
“Information about Directors seeking appointment/re-
appointment at the Annual General Meeting as required under
the Code of Corporate Governance Clause of Listing
Agreement.”
Your Directors recommend the resolution for approval of the
members.
Shri Mallya is interested in the resolution as it relates to his
appointment. None of the other Directors of the Company is,
in any way, concerned or interested in the said resolution.
Item No. 7
Shri Tejinder Singh Laschar, was appointed as an Additional
Director by the Board of Directors of the Company. In terms of
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Section 260 of the Companies Act, 1956, Shri Laschar shall
hold office upto the date of this Annual General Meeting of the
Company. The Company has received a valid notice and
requisite deposit from a member of the Company under Section
257 of the Companies Act, 1956 proposing the candidature of
Shri Laschar for office of Director. In view of the background
and valuable experience of Shri Laschar, it will be in the interest
of the Company that Shri Laschar continues as a Director of
the Company. Brief resume of Shri Laschar is set out in the
“Information about Directors seeking appointment/re-
appointment at the Annual General Meeting as required under
the Code of Corporate Governance Clause of Listing
Agreement.”
Your Directors recommend the resolution for approval of the
members.
Shri Laschar is interested in the resolution as it relates to his
appointment. None of the other Directors of the Company is,
in any way, concerned or interested in the said resolution.
Item No. 8
Shri K Narasimha Murthy, was appointed as an Additional
Director by the Board of Directors of the Company. In terms of
Section 260 of the Companies Act, 1956, Shri Murthy shall hold
office upto the date of this Annual General Meeting of the
Company. The Company has received a valid notice and
requisite deposit from a member of the Company under Section
257 of the Companies Act, 1956 proposing the candidature of
Shri Murthy for office of Director. In view of the background
and valuable experience of Shri Murthy, it will be in the interest
of the Company that Shri Murthy continues as a Director of
the Company. Brief resume of Shri Murthy is set out in the
“Information about Directors seeking appointment/re-
appointment at the Annual General Meeting as required under
the Code of Corporate Governance Clause of Listing
Agreement.”
Your Directors recommend the resolution for approval of the
members.
Shri Murthy is interested in the resolution as it relates to his
appointment. None of the other Directors of the Company is,
in any way, concerned or interested in the said resolution.
Item No. 9
Shri K Raghuraman, was appointed as an Additional Director
by the Board of Directors of the Company. In terms of Section
260 of the Companies Act, 1956, Shri Raghuraman shall hold
office upto the date of this Annual General Meeting of the
Company. The Company has received a valid notice and
requisite deposit from a member of the Company under
Section 257 of the Companies Act, 1956 proposing the
candidature of Shri Raghuraman for office of Director.
In view of the background and valuable experience of
Shri Raghuraman, it will be in the interest of the Company
that Shri Raghuraman continues as a Director of the Company.
Brief resume of Shri Raghuraman is set out in the “Information
about Directors seeking appointment/re-appointment at the
Annual General Meeting as required under the Code of Corporate
Governance Clause of Listing Agreement.”
Your Directors recommend the resolution for approval of the
members.
Shri Raghuraman is interested in the resolution as it relates to
his appointment. None of the other Directors of the Company
is, in any way, concerned or interested in the said resolution.
Item No. 10
Shri S Shabbeer Pasha, was appointed as an Additional Director
by the Board of Directors of the Company. In terms of Section
260 of the Companies Act, 1956, Shri Pasha shall hold office
upto the date of this Annual General Meeting of the Company.
The Company has received a valid notice and requisite deposit
 Annual Report 2008-09
from a member of the Company under Section 257 of the
Companies Act, 1956 proposing the candidature of Shri Pasha
for office of Director. In view of the background and valuable
experience of Shri Pasha, it will be in the interest of the
Company that Shri Pasha continues as a Director of the
Company. Brief resume of Shri Pasha is set out in the
“Information about Directors seeking appointment/re-
appointment at the Annual General Meeting as required under
the Code of Corporate Governance Clause of Listing
Agreement.”
Your Directors recommend the resolution for approval of the
members.
Shri Pasha is interested in the resolution as it relates to his
appointment. None of the other Directors of the Company is,
in any way, concerned or interested in the said resolution.
Item No. 11
Smt Usha Sangwan, was appointed as an Additional Director
by the Board of Directors of the Company. In terms of Section
260 of the Companies Act, 1956, Smt Sangwan shall hold office
upto the date of this Annual General Meeting of the Company.
The Company has received a valid notice and requisite deposit
from a member of the Company under Section 257 of the
Companies Act, 1956 proposing the candidature of
Smt Sangwan for office of Director. In view of the background
and valuable experience of Smt Sangwan, it will be in the
interest of the Company that Smt Sangwan continues as a
Director of the Company. Brief resume of Smt Sangwan is set
out in the “Information about Directors seeking appointment/
re-appointment at the Annual General Meeting as required
under the Code of Corporate Governance Clause of Listing
Agreement.”
Your Directors recommend the resolution for approval of the
members.
Smt Sangwan is interested in the resolution as it relates to her
appointment. None of the other Directors of the Company is,
in any way, concerned or interested in the said resolution.
Item No. 12
Shri Sujit K Mandal, was appointed as an Additional and Whole
Time Director by the Board of Directors of the Company in
accordance with Section 260 of the Companies Act, 1956 with
effect from November 1, 2008. Shri Sujit K Mandal as an
Additional Director, shall hold office upto the date of this
Annual General Meeting. The Company has received a notice
in writing, along with requisite deposit from a member of the
Company under Section 257 of the Companies Act, 1956,
proposing the candidature of Shri Mandal for the office of
Director.
The Board of Directors of the Company also appointed
Shri Mandal as Whole Time Director of the Company w.e.f.
November 1, 2008 for a period of two years, upto
October 31, 2010 subject to the approval of the members at
their General Meeting. The approval of members is being sought
for appointment of Shri Sujit K Mandal as Whole Time Director,
not liable to retire by rotation and payment of remuneration to
him as set out in Resolution No. 12.
Information about Directors as required under Clause 49 of
the Listing Agreement relating to Corporate Governance is set
out separately in the Notice of Annual General Meeting.
Your Directors recommend the resolution for approval of the
members.
This may be treated as the Abstract and Memorandum of
Interest under Section 302 of the Companies Act, 1956.
Shri Sujit K Mandal, is interested in the resolution as it relates
6
to his appointment. None of the other Directors of the Company
is, in any way, concerned or interested in the resolution.
Registered Office: By order of the Board of Directors
IFCI Ltd
IFCI Tower
61 Nehru Place
New Delhi-110019
Rupa Sarkar
Dated : July 22, 2009 Company Secretary
INFORMATION ABOUT DIRECTORS SEEKING
APPOINTMENT/RE-APPOINTMENT AS REQUIRED UNDER
THE CODE OF CORPORATE GOVERNANCE CLAUSE OF
LISTING AGREEMENT
At the ensuing Annual General Meeting Shri P G Muralidharan
shall retire by rotation. Shri P G Muralidharan being eligible offers
himself for re-appointment. Shri Prakash P Mallya, Shri Tejinder
Singh Laschar, Shri K Narasimha Murthy, Shri K Raghuraman,
Shri S Shabbeer Pasha and Smt Usha Sangwan who have been
appointed as Additional Directors by the Board, also seek approval
of members for re-appointment. Shri Sujit K Mandal, who has
been appointed as Additional & Whole Time Director by the Board,
also seeks approval of members for re-appointment. The
information or details to be provided for the aforesaid Directors
under Corporate Governance Code are as under:
a) Shri P G Muralidharan, former Secretary to
Government of India, has more than 34 years of rich
experience in various Ministries of Central & State
Governments. During his extensive career, he was the
Chairman of various Public Sector Undertakings and
has led several key government delegations to various
overseas destinations for important assignments. He
is on the Board of Religare Aegon Asset
Management Company (P) Ltd.
b) Shri Prakash P Mallya served Canara Bank for 32
years and was also Executive Director in Syndicate
Bank before being posted as Chairman & Managing
Director of Vijaya Bank. He is a Post Graduate in
Economics and banker by profession. He has
experience of more than 34 years in the banking
sector. Shri Mallya has attained remarkable
achievements in the business arena and has made
various valuable contributions to research work in
the area of economics. He has achieved many
prestigious awards for excellence in the banking
sector. Presently he is a Director on the Board of Stock
Holding Corporation of India Ltd and Bank of India.
c) Shri Tejinder Singh Laschar is a Post Graduate in
Economics and Commerce. He has a Post Graduate
Diploma in Development Policy from University of
Glasgow, Scotland, UK. He is from the Indian
Economic Service and has held important
assignments, such as Senior Economic Adviser,
Ministry of Commerce and Industry- Government of
India; Economic Adviser, Ministry of Chemicals and
Fertilizers-Government of India and has spent many
years in the Ministry of Finance. He has been a
Consultant to The Institute of Public Enterprises,
Osmania University, Hyderabad and Chairman and
Managing Director of HFC Ltd. He was consultant to
Indian Council for Research in International
Economic Relations (ICRIER). He has had specialized
training in Financial Analysis at International
Monetary Fund at Washington and Singapore. He has
done assignment for The Asian Development Bank,
Manila. He specialises in the areas of financial
restructuring of Companies, Capital and Debt
Markets, Fertilizers Production, Pricing, Imports,
Foreign Direct Investment, Wholesale Price Index,
 Annual Report 2008-09
Index of Industrial Production and Service Price
Index. He has been on the Board of Directors of
several Public Sector Banks, Independent Trustee of
prominent Mutual Funds, Director in Housing Finance
Companies and several Government of India
Companies. Presently he is a member of Task Force for
MOU in Public Sector Units, set up by the Department
of Public Enterprises, Government of India. He is also
a Director on the Board of PNB Housing Finance Ltd
and Independent Trustee of a Mutual Fund promoted
by Shinsei Trustee Company (I) Pvt Ltd. He does g)
arbitration for the National Stock Exchange of India Ltd.
d) Shri K Narasimha Murthy, is a B.Sc., FCA and FICWA.
He is a reputed Cost Accountant and has 28 years of
professional experience in the areas of Cost Control,
Cost Reduction, Corporate Management, Audit,
Strategic Planning and Management Consultancy etc.
and has provided services to more than 100
companies. He is a member on various committees
of the Government of India. He has completed various
national level assignments. Presently he is Director
on the Board of IDBI Bank Ltd, LIC Housing Finance
Ltd, Srikari Management Consultants Pvt Ltd, Andhra
Pradesh State Financial Corporation Ltd and partner
of Narasimha Murthy & Company, Cost Accountants.
e) Shri K Raghuraman, is a former Executive Director
of Punjab National Bank. He is a Commerce Graduate
and a qualified Chartered Accountant. He has over h)
34 years of banking experience. He has participated
in various international conferences/seminars abroad
in the area of banking. He is also a Director on the
Board of Andhra Bank and Oriental Carbon and
Chemicals Ltd.
f) Shri S Shabbeer Pasha, is a Commerce Graduate,
CAIIB, Graduate Member of the Institute of Cost and
Works Accountants of India and a qualified Chartered
Accountant. He has wide experience of over 22 years
in the areas of Audits, Bank Audits, Inspections and
Investigations, Direct Tax Laws, Corporate Consulting,
Management Consultancy, Mergers and Acquisitions
and Information Technology related areas. He has
held various positions on many committees of the
Government of Karnataka and Government of India.
He was Chairman of the Karnataka Chapter of the
Institute of Chartered Accountants of India. He has
served in various committees of the Institute of
Listing at Stoc
ockk Exc
Stoc hange
hangess
Exchange
The Company’s Equity Shares are listed at following six Stock Exchanges in India. Besides, the bonds issued to the public by the
Company were also listed at Stock Exchanges mentioned at Sl. Nos. 1, 2 and 3 below. After the redemption of these bonds on
maturity/through exercise of call option, the listing of these bonds have been discontinued.
1. Bombay Stock Exchange Ltd 2.
Phiroze Jeejeebhoy Tower
Dalal Street, Fort
MUMBAI-400 001
3. The Delhi Stock Exchange Association Ltd 4.
3/1 Asaf Ali Road
DELHI-110 002
5. The Madras Stock Exchange Ltd 6.
Exchange Building
11 Second Line Beach
CHENNAI-600 001
The Company has paid the annual listing fee to all the Stock Exchanges upto the Financial Year 2009-10 except to the Stock
Exchanges at New Delhi, Kolkata, Ahmedabad and Chennai as the Company had applied for delisting of
securities pursuant to the resolution passed at the Annual General Meeting held on September 10, 2001 and
September 12, 2003.
7
Chartered Accountants of India. Presently he is
member of the Committee on Trade Laws and WTO
of ICAI, New Delhi. Shri Pasha is the proprietor of
K Rahman Khan & Company, Chartered Accountants.
He has served as a Director on the Board of Canara
Bank from 2005-06 to 2007-08. Presently he is serving
his second term as a Director on the Board of Canara
Bank. He has also been involved in various social
activities and is member and office bearer of many
social organisations.
Smt Usha Sangwan, Executive Director of Life
Insurance Corporation of India holds a Master’s
Degree in Economics, Licentiate from Insurance
Institute of India and a Post Graduate Diploma in
Human Resource Management. Along with varied
experience of Housing Finance, Pension & Group
Superannuation and almost all aspects of core
business of LIC, she has also served at Branch,
Divisional, Zonal and Corporate levels. She has been
exposed to various prestigious training programmes
in India and abroad. Prominent among them being
Marketing Strategies at ISB-Hyderabad,
Transformational Leadership at IIM-Lucknow and
HR as Business Strategy at Asian Institute of
Management, Philippines. Smt Sangwan does not
hold Directorship/Committee Membership in any
other Company.
Shri Sujit K Mandal, is a Mechanical Engineering
graduate from National Institute of Technology,
Durgapur and is a Post Graduate in Business
Management from Indian Institute of Management,
Ahmedabad. He has rich experience of more than 36
years of Industrial/Corporate Finance spanning nearly
all aspects of management in the industrial and
financial sectors. He has vast experience in the areas
of Project, Production Operations Management and
Corporate Planning in reputed Engineering Industries
and developed expertise in Project Finance, Product
Development, Corporate Advisory, Project
Development, NPA Management, Policy Formulations,
Strategic Management and Corporate Planning and
Turn Around Strategy etc. Presently he is Director on
the Board of Tourism Finance Corporation of India
Ltd, IFCI Factors Ltd, IFCI Financial Services Ltd, IFCI
Venture Capital Funds Ltd and is on the Board of
Governors in Management Development Institute.
The National Stock Exchange of India Ltd
Exchange Plaza, 5th Floor
Plot No. C/1, G Block
Bandra-Kurla Complex, Bandra (East)
MUMBAI-400 051
The Calcutta Stock Exchange Association Ltd
7 Lyons Range
KOLKATA-700 001
Ahmedabad Stock Exchange Ltd
Kamdhenu Complex, 1st Floor
Opp. Sahajanand College
Panjarapole
AHMEDABAD-380 015
 Annual Report 2008-09

Directors’ Report
To the Members
The Board of Directors of your Company has the pleasure of
presenting the Sixteenth Annual Report of IFCI Limited together
with the Audited Statements of Accounts for the year ended the
March 31, 2009.
FINANCIAL RESULTS (Rs. crore)
2008-09 2007-08
1. Operational Income 1,402 1,963
2. Total Income 1,484 2,111
3. Cost of Borrowings 790 821
4. Staff Cost/Other Expenditure 91 152
5. Depreciation 7 7
6. Total Expenditure 888 980
7. Profit before provisions/write-off 596 1,131
8. Write-off/Provisions for Bad &
Doubtful Assets (net of reversal) (414) (953) The total income of your Company for the year 2008-09 stood
9. Profit before Exceptional Items 1,010 2,084 at Rs.1,484 crore vis-à-vis Rs.2,111 crore in the previous year
10. Amount Receivable from mainly on account of lower profit from sale of shares, partly a
Government of India written-off – (416) deliberate decision to maximise returns which was not possible
11. Profit before Tax 1,010 1,668 owing to market indices remaining at lower levels during the
12. Tax Expenses 353 648 year. Employee expenses for the current year were lower as
13. Profit after Tax and Exceptional Items 657 1,020 compared to the previous year. In the current year, write-off of
14. Surplus/(Deficit) brought forward Rs.204 crore and provision of Rs.36 crore (in respect of current
from previous year 12 (836) investments) has been made. A provision of Rs.655 crore (net)
15. Appropriations: has been reversed being no longer required consequent upon
Reserve u/s 45IC of RBI Act 134 37 recovery through OTS, etc. Consequently, your Company has
Transfer to Capital Redemption Reserve 82 21 posted profit before tax of Rs.1,010 crore vis-à-vis Rs.1,668
Transfer to General Reserve 65 – crore in the previous year, inspite of the challenging economic
Dividend on Equity Shares (incl. Tax) 71 –
environment during the year.
Dividend on Preference Shares (incl. Tax) 5 114
16. Balance carried to Balance Sheet 312 12 Dividend
As the Company has made profits in the last three years and
fulfils the necessary pre-conditions for declaration of dividend,
the Board of Directors has recommended Dividend on Equity
Shares @ 8% for the year 2008-09. It is after a gap of 10 years
that the Company is proposing a dividend. Further, dividend
of Rs.5.11 crore (including Corporate Dividend Tax) on
Preference Shares has been paid as Interim Dividend.
Directors
Since the last Annual Report, Shri S Ravi resigned from the
Board w.e.f. October 16, 2008 and Shri Thomas Mathew T
resigned from the Board w.e.f. February 9, 2009.
The Board has placed on record its appreciation for the valuable
services rendered and the contribution made by them.
Shri R K Kapoor, being the Director appointed in the casual
vacancy retired from the Board in the last AGM.
The Government of India has nominated Shri K V Eapen, Joint
Secretary, Ministry of Finance, Department of Financial Services
on the Board w.e.f. September 12, 2008. Shri Sanjeev Kumar
Jindal, Deputy Secretary, Ministry of Finance, Department of
Financial Services was also inducted as a Government Nominee
on the Board of the Company w.e.f. June 27, 2009 in place of
Smt Sukriti Likhi.
To broadbase the Board, Shri Prakash P Mallya, Ex-CMD Vijaya
Bank, Shri Tejinder Singh Laschar, IES, Shri K Raghuraman,
Ex-Executive Director, Punjab National Bank, Shri S Shabbeer
Pasha, Practising Chartered Accountant, Shri K Narasimha
Murthy, Practising Cost Accountant were appointed as
Additional Directors of the Company w.e.f. October 14, 2008.

8
 Annual Report 2008-09

Smt Usha Sangwan, Executive Director, LIC also joined on the
Board w.e.f. March 23, 2009 as Additional Director. They will
hold the office till the date of the ensuing Annual General
Meeting. Notice under Section 257 of the Companies Act, 1956
has been received from the members proposing the candidature
of Addtional Directors for appointment as Directors of the Company.
Shri Sujit K Mandal, Ex-Executive Director, IFCI was appointed
as a Whole Time Director on the Board w.e.f. November 1, 2008
for a period of 2 years. A proposal is being placed before the
shareholders for approval of the appointment of Shri Sujit K
Mandal, as a regular Director.
Directors’ Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the
Companies Act, 1956, with respect to Directors’ Responsibility
Statement, it is herby confirmed:
i) that in the preparation of annual accounts, the applicable
accounting standards have been followed along with
proper explanation relating to material departures;
ii) that the Directors 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
at the end of the financial year and of the profit or loss
of the Company for the year under review;
iii) that the Directors have taken proper and sufficient care
for the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
1956 for safeguarding the assets of the Company and
for preventing and detecting fraud and other
irregularities;
iv) that the Directors have prepared the annual accounts
for the year ended on March 31, 2009 on a ‘going concern
basis’.
Auditors
RBI guidelines as applicable to Public Sector Banks provide
for a tenure of three years to Statutory Auditors. Though your
Company has been classified as NBFC-ND-SI by RBI, the Board
keeping in view Corporate Governance Principles and RBI
Guidelines applicable to public sector banks, considered the
appointment of another firm of Chartered Accountants as
Statutory Auditors, in the place of the retiring Statutory
Auditors, M/s Ray & Ray, Chartered Accountants. Pursuant to
the provisions of Section 225 of the Companies Act, 1956, a
notice, in writing, has been received from members proposing
the name of M/s Chokshi & Chokshi, Chartered Accountants,
Mumbai, as Statutory Auditors of the Company. The Board,
accordingly, considered the matter and decided to seek approval
of the members at the ensuing Annual General Meeting for
appointment of M/s Chokshi & Chokshi, Chartered Accountants,
Mumbai as Statutory Auditors of the Company to hold office
from the conclusion of this Annual General Meeting to the
conclusion of the next Annual General Meeting. The Company
has received a letter from the auditors proposed to be appointed
to the effect that their appointment, if made, would be within
the prescribed limits under Section 224(1-B) of the Companies
Act, 1956.
MANAGEMENT DISCUSSION AND ANALYSIS
(i) Operating Environment and Outlook
Global Scenario
The global economy has been in the throes of a crisis after a
prolonged buoyancy by rising asset prices. Indications of the
impending correction became available for the first time in
August, 2007. The bankruptcy of Lehman Brothers on
September 15, 2008 triggered a bigger run on key funding
markets, which led to large scale bank rescues, deposit and
debt guarantee. US government stepped in to support insurance
company AIG. US treasury announced a temporary guarantee
of money market funds. The US Fed had taken a slew of
containment measures – it had pumped in almost US$ 900
billion into the market through emergency auctions, cut the
Fed rate seven times from September, 2007 till October 8, 2008.
Led by the US Fed, other Central Banks of UK, Germany, Japan,
Canada, Sweden and others also followed suit by devising
packages to provide succor to beleaguered banks, cutting their
reference rates and pumping money into the inter-bank markets
to ease jittery credit markets. But, by then, world over, the stock
markets had nose-dived, with both inter-bank and credit
markets for bonds and commercial paper shrinked drastically.
From late October’08 to mid March’09, stock market remained
volatile with increasingly dire economic data releases, weak
earnings reports and uncertainties over ongoing government
intervention.
Relative movements of global stock indices: FY 2008-09
[Source: www.finance.yahoo.com]
The stock market data of developed economies are
represented through the Dow Jones, DJ-STOXX and the
NIKKEI, while the data in respect of developing economies
are represented through SENSEX, BMF BOVESPA & SSE 180.
Quite clearly, while each of the economies suffered during
the FY 2009, the volatility in the indices of the developing
economies was higher when compared to the volatility in the
developed markets. At an aggregate level in the time frame
mentioned, on any particular day, for every 1 percentage fall
in the developed markets’ index, the developing markets fell
approximately 1.64 percentages. The same statistic for the
Sensex vis-à-vis the developed markets stood at 1.54
percentages.
Crude oil prices, hovering below US$ 50 a barrel at the
beginning of the year 2007, touched US$ 145 a barrel in
July’08, and thereafter dropped below US$ 34 a barrel in mid
December‘08, on reduced demand, as stockpiles rose and
OPEC had to cut production to meet demand supply
mismatches.

9
 Annual Report 2008-09
World GDP growth declined sharply in the fourth quarter of
2008. IMF expects global economy to contract by 1.3% in 2009,
with a number of advanced economies experiencing recession.
World Bank has an even gloomier outlook of negative 2.9% for
world economy.
Various policy actions such as further rate cuts, lower reserve
requirements and large fiscal stimulus packages reflected their
desired impact after mid-March’09, when assets prices started
showing a recovery trend. On April 2, 2009 a communiqué was
issued at the G20 Summit pledging joint efforts by governments
to restore confidence and growth, including measures to
strengthen the financial system.
Impact on India
The impact of global downturn was felt in India during the
fiscal 2009. Even with a depreciating Indian Rupee, exports
plunged by a record 33% for six consecutive months in
March ’09. A substantial portion of this fall could be attributed
to a heavy reduction in demand by major importers (the US
and the UK) across the globe.
Coupled with this, many Foreign Institutional Investors (FIIs)
offloaded large portions of their stocks from the Indian markets
in order to meet the redemption pressure. This resulted in a
net outflow of US$ 15 billion in FY 2008-09 as against net inflow
of US$ 20 billion in previous year. The sensex came crashing
down to the 9,000 levels as a result of this FII activity from
their initial high of 17,600.12 on May 02, 2008.
However, because of the strong regulatory framework and the
well managed banking system, the resilience shown by our
financial markets was impressive and the impact of the crisis
that originated in US was less severe in India, as compared to
the other emerging economies. The vast domestic demand
continued to play a critical role in India getting less affected
from global turbulence.
The Reserve Bank of India combated inflation, which touched
a peak of 12.9% in August’08, by tightening monetary measures.
After the global slowdown, since October ’08, RBI has provided
stimulus package and reduced CRR, SLR, Repo & Reverse Repo
Rates, created conducive liquidity conditions and prompted
banks to lower their lending and deposit rates to sustain the
growth momentum in the economy.
10
Economic Survey & Budget
‘Economic Survey 2008-09’ confirmed that economic growth
of India decelerated in FY 2009 to 6.7% as against the average
growth rate of 8.8% in the previous five years (FY 2004 to FY
2008). The growth in agriculture and allied activities
decelerated from 4.9% in FY 2008 to 1.6% in FY 2009, mainly
on account of the high base effect of FY 2008.
The manufacturing, electricity and construction sectors
decelerated to 2.4%, 3.4% and 7.2% respectively during FY
2009 from 8.2%, 5.3% and 10.1% respectively in FY 2008.
Despite the slowdown in growth, investment growth was at a
rate higher than that of GDP. The ratio of fixed investment to
GDP consequently increased to 32.2% of GDP in FY 2009 from
31.6% in FY 2008.
The Economic Survey ’09 has forecast a growth of 6.25% to
7.75% for Indian economy during the current fiscal 2010,
provided the US economy ‘bottoms out’ by September 2009.
The Union Budget 2009-10 has declared various social and
infrastructure initiatives. Private consumption, which slowed
down considerably in 2008-09, is expected to get stimulus with
enhanced provision in various employment generation schemes
apart from increase in threshold limit for paying Income Tax.
To counter slowdown in private investment, budget-2009-10
has announced increase in public sector investments,
particularly in Infrastructure sector, where investment of the
order of Rs.1 trillion is expected in Public Private Partnersip
(PPP) projects, which would attract private investment in the
sector. Thus, government expenditure, which is expected to
increase by 15% in 2009-10, would continue to be the key
demand driver.
Although the fiscal deficit at 6.8% of GDP for the FY 2010 is an
area of concern, government intends to push the growth rate
to the level of 9% at the earliest. The policy makers have to do
a balancing act between providing economic stimulus and
managing fiscal deficit.
Initiatives of IFCI
The current crisis has revealed the ‘procyclicality’ created by
the tendency of financial intermediaries to become less prudent
during cyclical upturns and more prudent during downturns.
Your Company has responded swiftly to the challenges in
economic environment.
Smt Pratibha Devisingh Patil, Hon’ble President of India and
Shri Atul Kumar Rai, CEO & MD, IFCI Ltd with other members of
Presidential Delegation to Spain and Poland
Your Company has capitalized the business opportunities under
such stressed market conditions, and re-established its presence
in the financial market. Sanction of fresh loans and
 Annual Report 2008-09

disbursements of the same were made only after the required

due diligence, selective profit booking made from dis-
investment and your Company participated modestly in the
secondary market. The drive for maximizing recovery from non-
performing assets continued, but the recovery in absolute terms
has reduced due to resolution of major non-performing assets
in the preceding two years.
The industrial sector in which your Company has major exposure
includes Power, Telecom and Other Infrastructure, which
performed satisfactorily when viewed in the backdrop of the
global economic slowdown. The prospects of other sectors in
which your Company has major exposure viz., Iron and Steel
and Textiles came under strain during the current year.
Diversification in the area of operations has been consolidated. Shri Pranab Mukherjee, Hon’ble Minister of Finance, Shri Atul Kumar Rai,
With the establishment of Project Development Group (PDG) CEO & MD, IFCI Ltd and Shri Pawan Munjal, MD & CEO of Hero Honda
Motors Ltd at the IFCI sponsored ‘CNN IBN Indian of the
and strengthening the Corporate & Infrastructure Advisory Year Awards - 2008’ held in February, 2009
services with executives having rich experience of project
appraisal, debt syndication, bid process management etc., your The Board of Directors of your Company has reviewed all
Company has already taken a major initiative to provide the policies in different areas of operation which are in place
so as to achieve the objectives of the business plan within
complete solution under one roof for infrastructure projects as
an acceptable level of risk. A new Risk Management
well as to provide customized corporate advisory services and Committee has been set-up at the Board level to overview
facilitating the financial re-engineering of various government the risk management process.
bodies. Your Company is also utilizing its expertise in NPA
resolution, by taking over NPAs from Banks/other Institutions
at competitive prices.
Following subsidiary companies have synergized their
operations with IFCI:
• IFCI Infrastructure Development Ltd. (IIDL) has been
established as a wholly owned subsidiary in the last fiscal.
IIDL has taken up a number of prestigious projects in and
around Delhi, Ahmedabad and Bengaluru, which are
expected to contribute significantly to enhance your wealth.
• IFCI Venture Capital Funds Ltd. (IVCF) has been revitalized
with fresh infusion of capital which now manages three
private equity/venture capital funds, apart from providing
advisory services and short term loans. The Hon’ble Comptroller and Auditor General of India, Shri Vinod Rai
alongwith spouse Smt Geeta Rai and, in the background, Smt Babni Lal Rai
• IFCI Financial Services Ltd. (IFIN), another group company, at the inauguration of IFCI Auditorium
is engaged in Stock Broking, Investment Banking, Mutual
Fund Distribution & Advisory Services, Depository The workspace meant for the staff of your Company has been
Participant Services, Insurance Products etc. It has witnessed revamped at IFCI Tower and other offices to create a
both organic and inorganic growth. Through IFIN, your conducive work environment. A conscious effort is being
Company can now offer a wide array of financial products made to transform the work culture to one that is
and services to a wider base of the investing community. performance oriented and innovative in outlook. Towards
this, your Company has recruited Management/Engineering
• IFCI Factors Ltd. (IFL), a name rechristened from Foremost Graduates & Professionals from the premier institutions of
Factors Ltd, has been able to tap the vast potential of factoring India like IIMs, who are expected to contribute with their
services, which is steadily replacing the hitherto ideas to energize the growth process. With the combination
conventional modes of working capital finance in the of expertise and experience with resources, your Company
banking spree. is confident of establishing the brand “IFCI”, along-with its
subsidiaries and group companies to be known as a one stop
• MPCON Ltd., a technical consultancy organization promoted shop catering to multiple business needs.
in 1979, has now been strengthened by infusing more capital.
MPCON Ltd. has now become a subsidiary of IFCI and it (ii) Industry Structure and Developments
would now be able to serve its clientele in a more effective Over the past few years, IFCI has consolidated itself with
manner. aggressive NPA recoveries and liability restructuring,
whereby, inspite of overall adverse scenario, it has been
Your Company has earned profit during last three years and able to move aggressively and register huge growth in
is now proposing to pay dividend for the year 2008-09. The the approval and disbursement of fresh assistance for
capital adequacy ratio of your Company is 19%, which is project finance to stimulate various industries in India.
comfortable. Your company is poised to raise resources in a Acquisition of NPAs from banks and their resolutions has
big way to ensure accelerated growth in the years to come. also been embarked upon.

11
 Annual Report 2008-09
The corporate finance and financial services sectors in
India are highly competitive. The global meltdown has
affected the overall industrial and economic performance
of the country. This has posed a special challenge to your
Company, who has embarked upon substantial asset
creation after a gap of 10 years.
IFCI, now being NBFC-ND-SI (Non-Banking Financial
Companies-Non Deposit taking Systemically Important)
has to compete, in the area of project finance with banks
and Financial/Investment Institutions. Your Company has,
in order to reduce credit risk, improved security coverage
and higher marginal rate of return and increased its
exposure in the area of Promoters’ Funding, where it faced
competition from NBFCs only.
Your Company has strengthened its operational areas,
other than project finance. The share of income from
Treasury & Investment operations has increased
considerably during FY 2009. There had also been
significant development in the areas of fee based activity
and creation of value addition through subsidiaries.
IFCI has complied with different guidelines as issued by
Reserve Bank of India, as applicable to NBFC-ND-SI.
The details of various developments are given hereunder:
a) Approvals and Disbursements
During the year 2008-09, total approvals were
Rs.4,014.88 crore as against Rs.2,550.49 crore in the
previous year. Out of the aforesaid approval,
Rs.1,711.47 crore (43%) were of tenure of less than
two years, Rs.1,194.04 crore (30%) were medium
term rupee loans of tenor between two to five years
and Rs.468.80 crore (12%) were of tenor of more than
5 years. The amount approved towards equity
participation in various Infrastructure and other
projects was Rs.640.57 crore (15%).
Total disbursements during the year amounted to
Rs.3,311.45 crore compared to Rs.2,280.09 crore in
the previous year. Out of this, Rs.1,666.47 crore (50%)
were of tenor of less than two years, Rs.958.99 crore
(29%) were medium term rupee loans of tenor
between two to five years and Rs.191.43 crore (6%)
were of tenor of more than 5 years. The amount
disbursed towards equity participation was
Rs.494.56 crore (15%).
b) Treasury and Investment Operations
During the year, your Company earned income of
Rs.297 crore from treasury operations mainly
through investment in short term paper of top rated
12
corporates including Navratna PSUs and through
investment in fixed deposits with PSU Banks and
prime private sector banks. As per Company’s policy,
no investment was made in securities below AAA
category. Safety and liquidity were the prime criteria
for all investment decisions. The prudent investment
strategy helped your Company remain unscathed by
the turbulence in the financial market. On the foreign
exchange front, despite the global financial crisis,
your Company managed its exposure in foreign
exchange reasonably well. The foreign exchange
position was nearly hedged throughout the year.
Your Company did not use any “Exotic Derivative
Products” during the year and did not have any
exotic derivatives exposure in equity/debt or foreign
exchange market.
During the year, your Company pursued the strategy
of selective disinvestment and trading both in cash
and F&O segment and earned profit of Rs.129.69
crore. Net investment portfolio of your Company as
on March 31, 2009 stands at Rs.4,038.96 crore which
is higher than the net investment amount of
Rs.2,270.72 crore as at the end of FY 2007-08. It
implies that while booking profit from selective
disinvestment, the portfolio size was increased
through investment in front line companies.
c) Management of Non-Performing Assets
Your Company has taken various measures for
prevention of slippage of performing assets to non-
performing assets. These include need based
restructuring of debt, settlements, assignment of
NPAs which contributed to contain the NPAs
position.
During the year under report, debt restructuring
packages were formulated in 4 cases with
restructured amount involved being Rs.86.40 crore.
Where recovery through the debt restructuring or
legal routes was found not feasible or very time
consuming and future prospects were not good, your
Company took recourse to Negotiated/One Time
Settlement (OTS) of dues. During 2008-09, OTS was
entered into in respect of 78 cases for an aggregate
settlement amount of Rs.373.57 crore compared to
136 cases for an amount of Rs.1,497 crore in the
previous year. Apart from settlements by way of OTS,
your Company also entered into Assignment Deals
as a part of the efforts to resolve NPAs. It contributed
increase in profitability by way of writing back of
NPAs fully provided for and redeployment of funds
giving regular future income. The total number of
Assignment Deals entered into during the Financial
Year 2008-09 was 21, which resulted in NPA recovery
of a sum of Rs.185.92 crore.
Your Company initiated and pursued legal actions where
possibility of early recovery of dues was found remote in
the normal course. As on March 31, 2008, 695 recovery
applications filed by your Company involving an amount
of Rs.9,967.18 crore, which were pending in Debt
Recovery Tribunals/Courts in India. During 2008-09, 10
new cases were filed, involving claim amount of Rs.535.18
crore. Your Company has also obtained recovery
certificates through DRT in 10 cases for an aggregate
 Annual Report 2008-09

amount of Rs.409.79 crore. As of March 31, 2009, 673
applications were pending in various Debt Recovery
Tribunals/Courts in India for an aggregate amount of
Rs.9,980.97 crore.
The recovery from sale of assets through DRT/Company
Courts/OTS in suit filed cases amounts to Rs.249.16 crore
during 2008-09 as compared to Rs.573.48 crore during
the previous year.
In addition to the above, your Company has already
initiated action in 127 cases (upto March 31, 2008), under
the Securitization and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002 (SARFAESI
Act) and fresh notices were issued in 12 cases during the
year 2008-09. During the year, your Company has recovered
Rs.99.02 crore through sale of assets under the above Act
as against Rs.79.41 crore recovered during 2007-08.
(iii) Financial Performance
Your Company’s profit before tax of Rs.1,010 crore in the
current year is lower as compared to Rs.1,668 crore in
the previous year mainly on account of lower profit on
sale of shares due to market indices remaining at lower
levels during the year. The profit after tax is Rs.657 crore
in the current year against Rs.1,020 crore in the previous
year. The net NPAs as of March 31, 2009 stood at Rs.463
crore. However, excluding one public sector power project
under implementation, likely to be upgraded during the
current year, net NPAs stand at Rs.77 crore. Besides,
satisfactory levels were reached for key financial ratios
including capital adequacy ratio, debt-equity ratio and
debt service coverage ratio.
(iv) Segment-wise/Product-wise Performance
More than 90% of the revenues of your Company were
accounted for during the year by a single segment of
Financing. As such, segment reporting as required under
Accounting Standard-17 is not applicable.
(v) Industry-wise Classification of Portfolio
The total outstanding assistance provided by your
Company as of March 31, 2009 was spread across a
number of industries.

The industry-wise classification of outstanding portfolio as of March 31, 2009 is given in the table hereunder:
Table : Industry-wise net Outstandings as of March 31, 2009 (Rs. crore)
Industry Loans Debenture Leasing Shares/Units/ Guarantee March 31, % to
G-Sec etc. 2009 Total
INFRASTRUCTURE
Power 830.70 100.06 75.27 19.46 – 1025.49 9.0
Port Construction, Telecom
Services and Bridge Construction 587.84 207.73 – 60.39 – 855.96 7.5
SUB-TOTAL 1418.54 307.79 75.27 79.85 – 1881.45 16.5
Others
Iron & Steel 1766.53 33.91 – 261.93 175.00 2237.37 19.6
Banking & Finance 125.61 340.66 – 266.87 – 733.14 6.4
Petroleum Refining 1156.07 81.73 – 30.42 – 1268.22 11.1
Construction & Real Estate 640.95 – – 282.26 – 923.21 8.1
Others 300.41 151.81 – 189.84 – 642.06 5.6
Government Securities/MF etc. – – – 931.64 – 931.64 8.2
Drugs & Pharmaceuticals 353.37 2.01 – 4.37 – 359.75 3.2
Textiles 222.84 31.12 – 88.14 9.98 352.08 3.1
Transport Equipment 30.82 – – 258.02 – 288.84 2.5
Fertilisers 173.61 46.73 – 11.79 – 232.13 2.0
Synthetic Resins and
Plastic Materials 182.21 52.32 – 3.95 – 238.48 2.1
Synthetic and Other
Man-made Fibres 12.96 37.92 – 110.07 – 160.95 1.4
IT Services 159.05 – – – – 159.05 1.4
Misc. Food Products 132.22 6.02 – 4.76 – 143.00 1.3
Non-Ferrous Metal Industry 0.04 – – 135.07 – 135.11 1.2
Paper 38.36 45.02 – 81.78 – 165.16 1.4
Basic Chemicals 82.69 4.23 – 17.30 – 104.22 0.9
Sugar 64.20 3.43 – 23.14 – 90.77 0.8
Metal & Steel Products 32.69 8.33 – 32.60 – 73.62 0.6
Hotel 58.83 5.92 – 1.96 – 66.71 0.6
Machinery & Accessories 23.13 – – 38.75 – 61.88 0.5
Electronics 15.04 6.15 – 27.47 – 48.66 0.4
Cement 15.45 12.66 – 25.01 – 53.12 0.5
Electrical Machinery & Appliances 0.52 0.71 – 25.60 – 26.83 0.2
Misc. Non Metallic Mineral Product 13.80 4.84 – 2.28 1.67 22.59 0.2
SUB-TOTAL 5601.40 875.52 – 2855.02 186.65 9518.59 83.5
GRAND TOTAL 7019.94 1183.31 75.27 2934.87 186.65 11400.04 100.0

(vi) Opportunities, Threats and Future Outlook
With an upswing in its performance, mood and
commitment of the employees, your Company is well
poised to expand its operations and performance in
accordance with its business plan.
Your Company will explore possibilities for new business
for short term and medium term. Further, due to restriction
from regulatory authority on banking sector for products
like Promoters’ Funding, Take-out Finance and Debt
Swapping, the opportunity for NBFC in such areas would
be exploited.

13
 Annual Report 2008-09

The overall economic scenario continues to be subdued
in the short term perspective and as such, till the overall
economy gets an upward momentum, the credit off-take
and pressure on yield would remain. However, the Budget
of 2009-10 has provided various stimuli for industrial
growth in the country, particularly in the Infrastructure
sector. Various measures announced are expected to
provide positive impact on industries like Oil & Gas,
Power, Construction, Textiles, Automobiles,
Petrochemicals, Household Appliances and the like.
In addition to the normal lending activities, your
Company is also concentrating on private equity
participation, project development activities, non-fund
based income from advisory services, acquisition of NPAs
from other lenders and thrust to the activities of
subsidiaries/associate companies.
(vii) Risk Management
Risk is an inherent part of IFCI’s business. Your Company
recognizes this and has taken strides to strengthen the
risk management systems and practices. The Risk
Management Committee of Directors is the principal
committee, constituted during the year under report, to
support the Board of Directors in the oversight of Credit,
Market and Operational Risks and any other risks, as may
be deemed necessary. At the executive level, a Risk
Management Committee of Executives was also
constituted to guide the Risk Management Department
in identification, assessment, monitoring and control of
the risks. Credit Risk is the most important risk for IFCI.
The systems and controls, in place, to mitigate credit risks
include exposure limits for borrowers, borrower groups,
industrial sectors, multi-tier credit appraisal system, risk
based monitoring system, committee system for
considering proposals and detailed risk assessment of new
proposals. The loan policy and risk management policy
of your Company are reviewed periodically keeping in
view the changing economic and business environment.
The market risk was primarily managed by the Asset Liability
Committee (ALCO) through analysis of structural liquidity
gaps and interest rate sensitivity positions and deployment
of surplus funds by treasury besides having approved limits
and triggers for various types of deployment. The investment
policy of your Company is revised periodically considering
the current market scenario. The forex currency risk was
being managed by hedging, primarily, through forward cover
and currency swaps.
To manage the operational risks, there are adequate
internal controls and systems in place aided and assisted
by internal audit, remote back-up of data, disaster
management policy and insurance.
With a view to managing risks at institutional level, your
Company has taken action for setting up an Enterprise-
wide Risk Management System (ERMS) with the
assistance of a consulting agency of repute. The ERMS
envisages addressing institutional risk across all risk
categories, products and business verticals in a
comprehensive and integrated manner, as also
establishing risk management as a practice at all levels of
the organisation. The ERMS broadly has two components;
(i) formulation of a framework for risk assessment,
measurement and effective mitigation including risk
policy, risk assessment and management methodologies,
risk organization structure and Management Information
System (MIS) for assessment and management of credit,
market and operational risks at IFCI and (ii) implementation
of Risk Rating Models for measuring credit risk in new
business proposals and the existing loan portfolio, to
facilitate the decision making process.
Going forward, with the growth of business and
augmentation of loan portfolio, risk management at IFCI
would assume a larger and more complex role. The steps
taken would streamline the mechanism for effective
overall institutional risk management at IFCI.
(viii) Nominee Directors
Your Company appoints Nominee Directors on the Boards
of assisted companies as well as other companies in which
your Company has substantial stake to safeguard the
interest of your Company. The Nominee Directors
appointed by your Company have played a proactive role
in the development of professional management and
formulation of proper corporate policies and strategies
to improve the performance and Corporate Governance
of the assisted companies. The feedback reports received
from Nominee Directors act as a useful tool for credit
monitoring. The system of nominee directors is
functioning effectively in your Company.
(ix) Resources
The total borrowing of your Company decreased from
Rs.10,223 crore at the beginning of the year 2008-09 to
Rs.9,673 crore at the year end. This included Rs.9,042
crore towards rupee borrowing and Rs.631 crore against
foreign currency borrowing in rupee terms. After an
extended break during the period of stabilization, your
Company took up resource raising in a limited manner
during the year under report and mobilized an aggregate
amount of Rs.254.77 crore at competitive rates, primarily
by way of private placement of bonds. In order to augment
the resources further for the desired growth in business,
plans have been made for resource raising in a big way
during the current year. For this purpose, the exercise for
rating of instruments is in progress.
The charts below indicate the investor and instrument
wise break-up of borrowing position as at March 31, 2009:

14
 Annual Report 2008-09
In the interest of the investors, who had not surrendered
their bonds for redemption, even after maturity, regular
follow up was made through letters and newspaper
advertisements, during the year, for the investors to lodge
their claims. The grievances, if any, were taken up
promptly for redressal. A web based query submission
system was put in place during the year under report,
which has enabled faster redressal of grievances.
(x) Public Deposits
The outstanding amount of public deposits, at the
beginning of the year, was Rs.0.07 crore, including Rs.0.02
crore of interest accrued and due, which were fully
matured and unclaimed. During the year, an
advertisement was issued for the depositors to intimate
the change in address, if any, and subsequently, the
maturity proceeds were paid to the depositors, at their
changed address, where provided or at the address as
per our records. With this payment, there was no public
deposit outstanding as on March 31, 2009. Your Company
neither raised any fresh public deposit nor renewed any
existing deposits during the year.
(xi) Internal Control Systems & their Adequacy
As part of the internal control systems, a comprehensive
and well documented system of Internal Audit is in place
in your Company. During the period under review, the
coverage and scope of the internal audit was reviewed
by the Audit Committee of Directors (ACD) of your
Company and ‘Risk based Internal Audit’ system has been
introduced to make it more focussed and effective.
Significant Developments
i) Corporate and Infrastructure Advisory Services
In the area of providing customised corporate advisory
services, your Company, despite stiff competition during
the year, has not only been able to retain its existing clients
but has also been able to secure some prestigious new
assignments relating to disinvestment of public sector
enterprises on competitive bidding basis, lead manager
& equity participant in AMC floated in public sector,
business/asset valuation assignments, financial/
investment appraisal, business re-engineering, corporate
financial restructuring, IPO monitoring and bid process
management from both public and private sector entities.
ii) Project Development Group
To boost the economic development, investment in
infrastructure sector has to increase by leaps and bounds.
15
To leverage on this opportunity, your Company has aligned
its focus on development of infrastructure projects such
as ports, roads and power generation and transmission.
MVR Tollways Pvt Ltd, a Special Purpose Vehicle jointly promoted by IFCI
Your Company has already taken a step forward for
creating a score in the infrastructure sector. As of now,
your Company has invested in power generation and
transmission and Toll Roads projects. To have competitive
edge in the market as also for further strengthening up
of the vast and rich experience of project appraisal,
documentation, syndication etc., your Company
endeavours to provide complete solution under one roof
for infrastructure projects and is carrying out a project
appraisal, debt syndication, bid process management etc.
for infrastructure projects.
The aforesaid activities will enable your Company in
establishing long term consistent revenue streams and
opportunities for capital gains.
iii) Human Resources
Improved performance and renewed commitment of the
employees apart from improvement in various systems
like Performance Management, have triggered the
consolidation, diversification and growth of your
Company.
The manpower strength of your Company as of March
31, 2009 was 223 including 203 executives and
professionals compared to a total strength of 218 as of
March 31, 2008.
Your Company is progressing towards re-positioning itself
as a preferred employer in the Indian financial sector.
During the year, your Company attracted talent from
leading banks, consulting organizations and
multinationals. Apart from lateral recruitments, your
Company has been able to attract fresh talent from leading
B-Schools in India as also lawyers and Chartered
Accountants at the entry level.
As a part of this re-positioning, your Company engaged
the services of globally renowned HR Consultants Hewitt
Associates in reorienting and restructuring the HR
systems and processes including Organization Diagnostics
& Structuring, Performance Management System Design
& Implementation, Compensation Restructuring &
Benchmarking and Competency Framework Design.
Thereby, your Company is realigning the compensation
structure in line with the market, in phases and has also
revamped the Performance Management System in
accordance with the business imperatives.
IFCI has made an endeavour to constantly upgrade the
knowledge and enhance the skill-set of the employees.
 Annual Report 2008-09
As part of the development initiatives, in-house functional
and behavioral interventions were organized at regular
intervals. Employees were nominated to leading institutes
in India and abroad for Executive Education Programs
and Seminars/Workshops conducted by various Chambers
of Commerce to keep them abreast with the latest
developments in the financial as well as other sectors.
During the year, your Company was conferred with the
“Amity Leadership Award for Sectoral Excellence in the
Financial Sector” by Amity Business School, Noida,
acknowledging the organization’s achievements in the
fields of leadership, enterprise, innovation, policy,
strategy, human resource management, partnerships,
corporate citizenship and business performance in
creating value for stakeholders.
iv) Information Technology and Communications
During the year, the Information Technology Department’s
focus was on upgradation of Oracle Database and
migration of applications from existing client-server
architecture to web based three tier architecture. The
applications in the areas of financial accounting, loan
accounting, debenture accounting, investment portfolio
management, asset classification, asset liability
management, employee compensation, legal monitoring,
resources and real estate were converted to the newer
software platform. This would facilitate to reach the stage
of accessing these applications 24x7 anywhere.
In order to automate the business process in pre-sanction
domain, applications were developed for generation of
Letter of Intent, Legal Documentation, loans disbursement
notes and related MIS.
The systems in the areas of Investment Portfolio
Management, Legal, Employee Information, Financial
Accounting and Asset Liability Management were
modified and upgraded to meet the additional business
requirements.
IT security mechanism was also strengthened to prevent
virus attacks and unauthorized access. The initiative to
create a paperless environment in the Company was
further taken forward by using Document Management
System, scanning and e-storing large volume of
documents.
v) Subsidiary Organizations
a) IFCI Infrastructure Development Limited (IIDL)
IIDL was promoted as a 100% subsidiary of your
Company, foreseeing the opportunities available in
the real estate and infrastructure sector as also to
leverage the experience and knowledge your
Company has gained over the years.
IIDL is playing a vital role (i) in unlocking value from
real estate held by IFCI by way of its office and
residential properties (ii) by availing new
opportunities in real estate development through
development authorities, etc. (iii) by acquiring
valuable & strategic real estate in the process of
recovery from non-performing assets of IFCI.
During the year 2008-09, IIDL has expanded its asset
base by purchasing assets and intensifying
development work on some of the assets. IIDL now
owns plots of land in different parts of the country
at prime locations. IIDL is also involved in a
16
prestigious project, which is part of the ongoing
projects aimed to cater to the demand during the
Commonwealth Games to be hosted in Delhi in
October, 2010.
Signing of the Management Contract between IFCI Infrastructure
Development Ltd and Frasers Hospitality Pte Ltd, Singapore:
Left to right - Shri Shivendra Tomar CEO, IIDL; Shri Choe Peng Sum, CEO, Frasers
Hospitality; Shri Atul Kumar Rai, Chairman, IIDL & Shri Javed Yunus, Director, IIDL
Currently, the other projects in the pipeline include
housing projects at Ghaziabad, UP, development of
office complexes for IFCI at Ahmedabad and
Bangaluru. Real estate projects have longer gestation
period and it is expected that IIDL will reap good
profits in the years to come and would contribute
significantly in enhancing the wealth of shareholders
of IFCI.
b) IFCI Venture Capital Funds Limited (IVCF)
IVCF is the country’s first institution to take up
investment in start-up companies mainly involved
in technology-oriented & innovative projects. It has
pioneered effort for widening entrepreneurial base
in the country and risk capital investment provided
by IVCF lead to evolution of Venture Capital activity
in India. Since inception, IVCF has financed over
400 projects and supported commercialization of
more than 50 new technologies.
In 2007-08, IFCI committed fresh infusion of Rs. 100
crore towards equity capital in IVCF and a sponsors
contribution of Rs.165 crore towards corpus of a
private equity fund to be set–up and managed by
IVCF.
Management of PE/VC Funds : IVCF presently manages
the following 3 Private Equity/Venture Capital Funds:
i) India Automotive Component Manufacturers
Private Equity Fund-1-Domestic (IACM-1-D), a
Private Equity Fund has a target corpus of Rs.330
crore. IACM-1-D is dedicated for investment
mainly in Indian Automotive Component
companies and in other related/emerging sectors.
ii) India Enterprise Development Fund (IEDF), a
Venture Capital Fund has a target corpus of
Rs.250 crore. The focus of IEDF is to invest in
knowledge based projects in key sectors of
Indian economy with outstanding growth
prospects.
iii) Green India Venture Fund (GIVF), a Venture
Capital Fund has a target corpus of amount
equivalent to Euro 50 million. The focus of GIVF
is to invest in commercially viable Clean
Development Mechanism (CDM), energy
efficient and other commercially viable projects
 Annual Report 2008-09
with an aim to reduce negative ecological
impact, efficient usage of resources such as
energy, power etc. and other related sectors/
projects.
Advisory Services : IVCF also provides corporate
advisory services, leveraging three decades of
experience in undertaking investment in start-up
projects. The focus of these advisory services is to
provide independent, fair and informed assessment
for undertaking decisions through the Investment
cycle from deal identification to exit planning.
IVCF with its background, experience and
understanding of critical aspects related to equity
investment, is an apt partner to carry out in-depth
due diligence and appraisal of business plans.
Short Term Loans: IVCF also provides Short-Term
Lending to entrepreneurs and corporates for two to
three years to facilitate business growth and in the
process earn regular income.
IVCF aims to become leading institutional player in
VC industry of the country by revitalizing,
strengthening and giving direction to its business
activities.
c) IFCI Financial Services Limited (IFIN)
IFIN was promoted by IFCI Ltd, to provide a wide
range of financial products and services to investors,
institutional and retail. IFIN is primarily involved in
Stock Broking, Investment Banking, Mutual Fund
Distribution & Advisory Services, Depository
Participant Services, Insurance Products Distribution
and the like.
IFIN is positioned as a global financial supermarket,
built on the foundations of incisive research and
trust. Intense interaction with investors helps IFIN
understand their specific needs and suggest holistic
and appropriate financial solutions. IFIN has a team
of professionals continuously scanning the financial
arena and stay ever prepared to educate investors
and partner them in creating enduring wealth.
IFIN has well experienced, committed and qualified
professionals in various facets of the financial
landscape to provide unmatched services to its
diverse clientele. The team is being strengthened to
lend support to the new areas into which IFIN is
embarking.
IFIN has its presence in Chennai, Mumbai, Delhi,
Pune, Jaipur, Kolkata, Coimbatore, Calicut &
Bangaluru and rapidly expanding into other metros.
It has further plans to have surefooted imprints in
almost all the major cities and towns of India and
position itself as a pan-India player to cater to the
investing populace.
Synergies : IFIN is uniquely positioned, by virtue of
being in the fold of IFCI which is a pioneering All
India Financial Institution, to offer a wide array of
financial products and services to the investing
community in India and NRIs. These include:
• Stock Broking
• Commodities Broking
17
• Depository Participant Services
• Investment Banking
• Insurance Broking
• Mutual Fund Products Distribution
• IPO Distribution
• Corporate Advisory Services
• Portfolio Management Services
• Currency Trading
IFCI’s shareholders include a majority of financial
institutions, who would act as an ideal clientele in
the Institutional Segment. IFCI being a listed
Company has over 8 lakh retail shareholders, who
would ideally help IFIN going retail and expanding
its market share.
d) IFCI Factors Limited (IFL)
The company, (originally Foremost Factors Ltd),
pioneered the export factoring business in India and
became the first member of Factors Chain
International from India. In April, 2008, your
Company rechristened Foremost Factors Ltd as “IFCI
Factors Ltd”.
IFL has embarked upon an aggressive growth plan
for the next five years. IFL reported factoring
turnover and net profit of Rs.402.32 crore and Rs.2.78
crore respectively during the financial year ended
March 31, 2009 as against factoring turnover of
Rs.166.69 crore and net profit of Rs.0.58 crore in the
previous financial year. The Company thus
registered a growth of 141% in its turnover and 478%
in its net profit.
Internationally, the global factoring volumes
increased from 724 Bn Euro in 2002 to 1325 Bn Euro
in 2008 with compound annual growth rate of 15%.
While America and Europe together account for
almost 80% of the total factoring business worldwide,
Asia’s factoring volume accounts for about 20% of
the total factoring volume. With India’s share being
just 3% of total factoring business of Asia, there is a
vast potential for the factoring business to grow in
India as factoring is gradually but steadily replacing
the hitherto conventional modes of working capital
finance.
e) MPCON Limited
With a view to expanding our business outlook and
reaping business opportunities in the highly
lucrative consulting sector, your Company
subscribed Rs.25 lakh to the rights issue of MPCON,
one of the Technical Consultancy Organizations
promoted by IFCI in the year 1979. With this infusion
of capital, MPCON is now a subsidiary of IFCI.
MPCON provides a complete set of consultancy
services to small and medium enterprises, individual
entrepreneurs, Government Departments and
agencies, state level institutions, commercial banks
and other institutions. By strengthening its equity
base, MPCON would be able to procure high value
clients and thus would lead to increase in its
 Annual Report 2008-09
business. MPCON is having huge business potential keeping
in view the development of key sectors of the economy in the
States of Madhya Pradesh and Chhattisgarh.
Compliance
Timely submission of various returns and data/information to
RBI, SEBI and other regulatory bodies and the Government of
India is ensured through the Compliance Division of your
Company at the Head Office.
Corporate Governance
A comprehensive report on corporate governance as stipulated
under Clause 49 of the Listing Agreement is attached to this
Report.
IFCI has obtained a certificate from the Statutory Auditors
regarding compliance of conditions of Corporate Governance
as stipulated in Clause 49 of the Listing Agreement and the
same is annexed at the end of Corporate Governance Report.
Conservation of Energy, Technology Absorption, Foreign
Exchange Earnings and Outgo
As the Company’s operations do not involve any manufacturing
or processing activities, the particulars as per the Companies
(Disclosures of Particulars in the Report of the Board of
Directors) Rules, 1998, regarding conservation of energy and
ATUL KUMAR RAI
Chief Executive Officer & Managing Director
Place: New Delhi
Dated: July 22, 2009
technology absorption, are not applicable. The particulars
regarding expenditure and earnings in foreign exchange are
given in Item Nos. 12 and 13 in the Notes to the Accounts.
Particulars of Employees
No employee of the Company was in receipt of remuneration
above the limit specified under Section 217(2A) of the
Companies Act, 1956.
Appreciation
The Board of Directors of your Company wishes to express
gratitude for the cooperation, guidance and support received
from the Ministry of Finance, various other Ministries and
Departments of the Government of India and the Reserve Bank
of India. The Board of Directors also acknowledges the
continued cooperation received from all overseas
correspondent banks and other members of the banking
fraternity.
The Board of Directors would like to sincerely thank the various
Banks, Financial Institutions, SEBI and other investors and
shareholders for their continued support.
The Directors of your Company place on record their
appreciation for the dedicated and sincere services rendered
by the officers and staff at all levels.
For and on behalf of the Board of Directors
PRAKASH P MALLYA RUPA SARKAR
Chairman of the Board Company Secretary
18
 Annual Report 2008-09

Report on Corporate Governance

1. COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE: Non-Executive while one was Managing Director and Chief
The objective of Corporate Governance at IFCI is to enhance Executive Officer and one was Whole Time Director. The
shareholders’ value in the long term with transparency and composition of the Board is in conformity with the Listing
accountability. Corporate Governance at IFCI recognizes all Agreement. The composition of the Board, number of meetings
stakeholders and decision-making process reflect this concern. held, attendance of the Directors at the Board Meetings and
2. BOARD OF DIRECTORS: last Annual General Meeting and the number of Directorship
and Chairmanship/Membership of Committees in other
(A) As on March 31, 2009, the Board of the Company consisted
companies in respect of each Director is given here in below:
of 12 (twelve) Directors, out of whom 10 (ten) Directors were
Sl. Name of Director Category as on Attendance Particulars No. of Directorship(s)/Committee
No. March 31, 2009 Membership(s)/Chairmanship(s) of
other Companies as on March 31, 2009
No. of Meetings At AGM held on Other Committee Committee
during 2008-09 September 12, 2008 Directorship(s) Membership(s) Chairmanship(s)
Held Attended
1. Shri Prakash P Mallya (*) Non Executive- 6 6 N.A. 2 – –
Independent
2. Shri K V Eapen(*) Nominee Director- 7 6 N.A. – – –
Government of India
3. Smt Sukriti Likhi Nominee Director- 12 10 No 1 – –
Government of India
4. Shri P G Muralidharan Non Executive- 12 8 Yes – – –
Independent
5. Smt Usha Sangwan(*) Non Executive- 1 1 N.A. – – –
Independent
6. Shri Tejinder Singh Non Executive- 6 6 N.A. 1 – –
Laschar(*) Independent
7. Shri K Raghuraman (*) Non Executive- 6 6 N.A. 2 – –
Independent
8. Prof Shobhit Mahajan Non Executive- 12 10 No 1 – –
Independent
9. Shri K Narasimha Murthy(*) Non Executive- 6 6 N.A. 2 2 1
Independent
10.Shri S Shabbeer Pasha(*) Non Executive- 6 6 N.A. 1 – –
Independent
11.Shri Atul Kumar Rai Chief Executive Officer 12 12 Yes 7 1 –
& Managing Director
12.Shri Sujit K Mandal (*) Whole Time Director 5 5 N.A. 4 – –
DIRECTORS RETIRED/RESIGNED DURING THE YEAR 2008-09
1. Shri R K Kapoor (**) Non Executive- 5 2 No 1 – –
Independent
2. Shri Thomas Mathew T(***) Non Executive- 11 6 Yes 5 1 –
Independent
3. Shri S Ravi (****) Non Executive- 7 6 Yes 11 5 2
Independent
( * ) Appointed/inducted on the Board during the year.
(**) Shri R K Kapoor has retired as his term expired in the AGM held on September 12, 2008 as Director appointed in casual vacancy.
(***) Shri Thomas Mathew T resigned from the Board of Directors w.e.f. February 9, 2009,
(****)Shri S Ravi has resigned w.e.f. October 16, 2008.
NOTE: 1. Number of meetings represents the meetings held during the period in which the Director was member of the Board.
2. Number of other Directorships indicated above is exclusive of the Directorships on the Board of Private Limited Companies and
Non-Corporate Institutions.
3. In case of Directors Retired/Resigned, the status of other Directorship and Committee Membership is as on the basis of the last disclosure made by
the Director.
4. The details of Committee Memberships are in relation to the specified Committees viz. Audit Committee and Investors’ Grievance Committee.

(B) The Board has complete access to all information within the
Company including information as per Clause 49 of the Listing
Agreement.
(C) Information pursuant to Clause 49 IV(G) of the Listing
Agreement: A brief resume and name of the companies in
which Directors, who are being appointed/reappointed, hold
Directorship/Committee Membership are given in the notice
under heading “Information about Directors seeking
appointment/reappointment as required under the Code of
Corporate Governance Clause of Listing Agreement.”
(D) Number of Board Meetings Held and Dates:
During the Financial Year 2008-09, the Board of Directors met
12 (twelve) times. The dates of the meetings were April 29,
May 14, May 29, June 12, July 12, September 12, October 14,
November 21, December 22 in 2008 and January 30, January
31 and March 23 in 2009.
3. AUDIT COMMITTEE:
(A) The Audit Committee of IFCI consists of 6 (six)
Non-Executive Independent Directors. The Chairman of the

19
 Annual Report 2008-09

Committee is an Independent Director. The composition of Shri Atul Kumar Rai, Chief Executive Officer and Managing
the Audit Committee and attendance of Directors at the Director from 01.04.2008 to 31.03.2009
meetings is shown below:
Particulars Rs. in Lakh
Sl. Name of Director Category No. of Meetings Salary & Allowances 57.96
No. during 2008-09 Contribution to PF 10.03
Held Attended Perquisites 0.42
MEMBERS OF THE COMMITTEE TOTAL 68.41
1. Shri K Narasimha Murthy(*) Chairman 2 2 Shri Sujit K Mandal (01.11.2008 to 31.03.2009) as Whole Time
2. Shri Tejinder Singh Laschar(*) Member 3 3 Director
3. Shri K V Eapen(*) Member 3 3 Particulars Rs. in Lakh
4. Prof Shobhit Mahajan Member 5 4 Salary & Allowances 11.57
5. Shri S Shabbeer Pasha(*) Member 3 3 Contribution to PF 0.39
6. Smt Usha Sangwan(*) Member – – Perquisites 1.67
MEMBERS RETIRED/RESIGNED TOTAL 13.63
1. Shri S Ravi Member 2 2 (C) Besides above, the Company is paying sitting fee of Rs.12000/-per
2. Smt Sukriti Likhi Member 2 1 meeting of the Board and Rs.6000/- per meeting of Committee
3. Shri R K Kapoor Member 2 1 thereof, to the Non-Executive Independent Directors except
4. Shri Thomas Mathew T Member 4 2 Government Nominee/Institutional Representatives.
5. Shri Prakash P Mallya (*) Member 1 1 (D) As per the disclosure made by the Non-Executive Directors of the
(*) Shri K V Eapen, Shri S Shabbeer Pasha, Shri Tejinder Singh Laschar, Company, Shri Tejinder Singh Laschar holds 400 shares of the
Company. None of the other Independent Directors hold any
Shri Prakash P Mallya have been co-opted in the Audit Committee
share and other convertible instruments of IFCI Ltd. as on
w.e.f. October 14, 2008. Shri Prakash P Mallya is not a member of
March 31, 2009.
the Committee w.e.f. November 21, 2008. Shri K Narasimha Murthy
has been co-opted in the Audit Committee w.e.f. November 21, 5. INVESTORS’ GRIEVANCE COMMITTEE:
2008 and has been elected the Chairman of the Audit Committee. (A) Investors’ Grievance Committee of IFCI consisted of 4 (four) Non-
Smt Usha Sangwan became Member of the Audit Committee w.e.f. Executive Directors. During the Financial Year 2008-09, the
March 23, 2009. Committee met 4 (four) times on April 29, July 12, October 14 in
Note: Number of meetings represents the meetings held during the period 2008 and on January 30, in 2009. The position of attendance of
in which the Director was member of the Committee. directors at the meetings is as under:

The Statutory Auditors, Internal Auditors and other senior Sl. Name of Director Category No. of Meetings
executives are invited to participate in the meetings of the Audit No. during 2008-09
Committee wherever necessary, as decided by the Committee. The Held Attended
Company Secretary acts as Secretary to the Audit Committee. MEMBERS OF THE COMMITTEE
(B) NUMBER OF AUDIT COMMITTEE MEETINGS HELD 1. Shri P G Muralidharan Member 4 2
AND DATES:
2. Shri K Narasimha Murthy(*) Member 2 2
During the Financial Year 2008-09, the Audit Committee of
Directors of IFCI met 5 (five) times. The dates of the 3. Shri K Raghuraman (*) Member 2 2
meetings were April 29, July 12, October 14 & December MEMBERS RETIRED/RESIGNED
22 in 2008 and January 30 in 2009. 1. Shri S Ravi Member 2 2
(C) TERMS OF REFERENCE: 2. Shri R K Kapoor Member 2 1
The terms of reference of the Audit Committee are mainly 3. Smt Sukriti Likhi Member 4 3
to see the effectiveness of operations of the audit function
of the Company, review the systems and procedures of (*) Shri K Narasimha Murthy and Shri K Raghuraman have been
co-opted in the Investors' Grievance Committee w.e.f.
internal control, oversee the Company’s financial reporting
October 14, 2008.
process, review with management the periodical and annual
financial statements before submission to the Board, follow Note:Number of meetings represents the meetings held during the
up of all the issues/concerns raised in the inspection reports period in which the Director was member of the Committee.
of Reserve Bank of India and ensure compliance with the (B) Name & Designation of Compliance Officer:
regulatory guidelines. The Committee is also responsible Smt Rupa Sarkar, Assistant General Manager & Company
for objectively reviewing the reports of the Internal Auditors Secretary
and Statutory Auditors and ensuring that adequate follow
up action is taken by the management. In addition, the Email: complianceofficer@ifciltd.com
Committee reviews the performance of the Company’s (C) The number of complaints received from the shareholders/
Auditors to ensure the effectiveness of the audit procedure. bondholders during the last Financial Year and the number of
The Committee also proposes for the appointment of pending complaints are shown below:
Statutory Auditors and fixation of their fee.
Details Equity Shares/Bonds
4. REMUNERATION COMMITTEE OF DIRECTORS: Complaints received during the 1905
(A) Remuneration Committee of IFCI consisted of 3 (three) Non- Financial Year 2008-09
Executive Independent Directors viz Shri P G Muralidharan, Pending as on March 31, 2009 Nil(*)
Chairman, Prof Shobhit Mahajan and Shri S Ravi. The (*) Excluding complaints/issues in respect of which cases are
number of meetings held during the year 2008-09 were two. pending in courts/CDRF.
Shri S Ravi has since resigned from the Board w.e.f.
The Company has redeemed IFCI Family Bonds issued under
October 16, 2008.
Public Issue in 1996 on completion of the tenure/exercise of
(B) The following are the details of the remuneration paid to the call option and payment of redemption amount has been made
managerial personnel during the Financial Year 2008-09: to the bondholders who have surrendered their bond

20
 Annual Report 2008-09

certificates for redemption. Some of the bondholders are yet Institute of Chartered Accountants of India. The transactions
to surrender the bonds for redemption, Company has sent with the companies, where the Directors of the Company are
reminders to such bondholders, for surrender of their duly interested were in the normal course of business and there
discharged bonds for enabling IFCI to make repayment. were no materially significant related party transactions that
IFCI redeemed fully 16,40,66,900 numbers of 5% cumulative may have potential conflict with the interests of the Company
redeemable preference shares of Rs.10/- each @ Rs.5/- per at large.
share during 2008-09. Further, IFCI has made payment of There were no penalties, strictures imposed on the Company
cumulative dividend on the preference shares amounting to by Stock Exchange or SEBI or any Statutory Authority on any
Rs.4,36,55,156 during 2008-09. matter related to capital markets during the last three years.
(D) The Company has constituted a Committee of its executives for (B) In preparation of the Financial Statements, the Company has
approval of the share transfers, transmissions and transpositions. followed the accounting standards issued by The Institute of
Generally, the Committee meets twice in a month. All the requests Chartered Accountants of India. The significant accounting
for share transfers etc. were processed and the related share policies have been set out in the Notes to the Accounts.
certificates were dispatched within 30 days from the date of
(C) Business Risk Evaluation and Management is an on going
receipt. Except for certain cases under litigation, there are no
process within the Company. During the year under review, a
share transfers pending for more than 30 days.
detailed exercise on ‘Risk Assessment & Management’ was
(E) In accordance with the Securities & Exchange Board of India carried out covering the entire gamut of business operations
(Prohibition of Insider Trading) Regulations, 1992, as and the matter is reviewed by the Board/Risk Management
amended, the Board of Directors of the Company adopted Committee. There is also a Risk Management Committee
Code of Conduct for Prohibition and Prevention of Insider consisting of 4 (four) Non-Executive Independent Directors.
Trading and the Code of Corporate Disclosure Practice to be
followed by Directors, Officers and other employees. The (D) The Company has Six Subsidiaries viz. IFCI Financial Services
Company also adopts the concept of Trading Window Closure Ltd, IFCI Venture Capital Funds Ltd, IFCI Infrastructure
to prevent its Directors, Officers and other employees from Development Ltd, IFCI Factors Ltd, MPCON Ltd and IFCI
trading in the securities of IFCI at the time when there is Commodity Ltd.
unpublished price sensitive information. The requirements under Clause 49 of the Listing Agreement in
(F) The Board of directors has laid down a Code of Conduct for respect of the above Companies have been duly complied with.
all Board Members and senior management of the Company, (E) The certification under Clause 49(V) of Listing Agreement by
which has been posted on the website of the Company. CEO and CFO to the Board is appended to this report.
6. GENERAL BODY MEETING: (F) On the non mandatory requirements relevant to the Company,
(A) Location and time, where last three Annual General Meetings the status of compliance is as under:
held: i) The Non Executive Chairman has been provided need-
based facilities to dispose off his responsibilities
SI. No. AGM Date Location Time
effectively.
1. 12.9.2008 Air Force Auditorium 10:30 A.M.
ii) No Independent Director is on the Board of the Company
Subroto Park
for more than nine years.
New Delhi-110010
2. 21.9.2007 Air Force Auditorium 10:30 A.M. iii) The Board had set up a Remuneration Committee
Subroto Park consisting of all Non-Executive Directors to determine
New Delhi-110010 the remuneration of Executive Directors.
3. 25.8.2006 Air Force Auditorium 10:30 A.M. iv) The half-yearly declaration of financial performance is
Subroto Park not sent individually to each household of shareholders
New Delhi-110010 but published in the newspapers and also posted on
Company’s website and on the EDIFAR (website
(B) No special resolution for the equity shareholders was put
maintained by NIC).
through Postal Ballot in the last year, as there were no such
items, which were required to be passed through Postal Ballot. v) Training of the Board Members and mechanism for
evaluation of Non-Executive Board Members have not
(C) Details of special resolutions passed in the previous three
been put in place as the members of the Board are well
Annual General Meetings:
qualified and experienced persons.
AGM As per Particulars of Special Resolutions
vi) The employees are free to communicate their concerns/
Date Companies
Act, 1956, U/S report unethical happenings to the Management/Board
through officers and even direct communication of the
12.09.2008 224A Appointment of Statutory employee to Audit Committee/Board is entertained.
Auditors
8. MEANS OF COMMUNICATION:
12.09.2008 100-104 Reduction of Paid up equity
share capital of the Company, IFCI’s quarterly/half-yearly Financial Results are published in the
held by LIC leading Hindi and English papers (last year these were published
21.09.2007 224A Appointment of Statutory in Jansatta (Delhi), Rashtriya Sahara (Delhi) and all editions of
Auditors The Financial Express, The Economic Times, The Business
21.09.2007 As per Foreign Increase of FII Investment Standard). The Financial Results and official press releases are
Exchange Limit in the Equity Shares also displayed on Company’s website (www.ifciltd.com). All price
Management of the Company under sensitive information is made public at the earliest through press
Act (FEMA), Portfolio Investment release and intimation to stock exchanges.
1999 Scheme Management Discussion and Analysis forms part of the
25.08.2006 224A Appointment of Statutory Directors’ Report and is given separately.
Auditors 9. GENERAL SHAREHOLDER INFORMATION:
25.08.2006 31 Alteration of Article 147 of
Articles of Association (i) Annual General Meeting: Date : September 18, 2009
Time : 10:30 A.M.
7. DISCLOSURES: Venue : Air Force Auditorium
(A) Related party transactions during the year have been disclosed Subroto Park
as required under Accounting Standard-18 issued by The New Delhi-110010

21
 Annual Report 2008-09

(ii) Financial Calendar (tentative): (xi) Distribution of Shareholding (as on 31.03.2009):

Results for quarter ending : Third week of The Shareholding in IFCI by major categories of Shareholders as
June 30, 2009 July, 2009 on March 31, 2009 is as under:
Results for quarter ending : Third week of (a) Shareholding Pattern:
September 30, 2009 October, 2009
Shareholding pattern of IFCI as on March 31, 2009 and March
Results for quarter ending : Third week of 31, 2008 for the purpose of reporting in the Annual Report of
December 31, 2009 January, 2010 the Company for the year 2008-09 is given as under:
Results for quarter ending : Third week of Category of Shareholders As on 31.03.2009 As on 31.03.2008
March 31, 2010 April, 2010 No. % No. %
(iii) Dates of Book Closure : September 5, 2009 to Banks & Financial Institutions 12,98,25,723 17.03 13,40,15,583 17.58
September 18, 2009 Insurance Companies 13,14,16,805 17.24 13,14,16,805 17.24
(both days inclusive) Mutual Funds 1,58,23,636 2.07 1,41,07,302 1.85
(iv) Dividend Payment Date : A final dividend of Other Bodies Corporates 10,58,66,857 13.89 10,60,39,046 13.91
Re.0.80 per equity share FIIs & NRIs 5,47,17,391 7.18 10,13,60,526 13.30
will be paid for the Public 32,47,63,085 42.59 27,54,74,235 36.12
Financial Year 2008-09 TOTAL 76,24,13,497 100.00 76,24,13,497 100.00
on/after September 18, (B) Distribution Schedule:
2009, subject to approval
by the shareholders at Sl. Category No. of % of total Amount %
the Annual General No. Share- Share- of Total
From To holders holders (Rs.) Amount
Meeting
1. 1 500 7,61,588 87.57 1,17,76,41,170 15.45
(v) Listing on Stock Exchange: 2. 501 1000 60,733 6.98 49,56,42,850 6.50
– Equity Shares Delhi, Mumbai, Calcutta, 3. 1001 2000 26,659 3.07 40,87,15,060 5.36
Chennai, Ahmedabad & 4. 2001 3000 7,894 0.91 20,37,34,020 2.67
National Stock Exchange 5. 3001 4000 3,349 0.39 12,14,09,430 1.59
Note: (i) During the Financial year 2003-04, IFCI had redeemed all 6. 4001 5000 2,807 0.32 13,37,93,480 1.75
the Family Bonds and advised the Stock Exchanges to 7. 5001 10000 3,800 0.44 28,09,47,050 3.69
discontinue the listing of the Bonds. 8. 10001 50000 2,343 0.27 47,67,93,750 6.25
9. 50001 100000 238 0.03 16,81,23,860 2.21
(ii) Company has made a request to Stock Exchanges at Delhi,
10. 100001 and above 281 0.03 4,15,73,34,300 54.53
Kolkata, Chennai and Ahmedabad for de-listing of securities,
approval from Stock Exchanges awaited. Total 8,69,692 100 7,62,41,34,970 100.00

(vi) Stock Code : 500106 (BSE) (xii) Dematerialization of Shares and liquidity:
IFCI (NSE) About 93.84% of the Equity Shares of the Company have already
00563 (ASE) been dematerialized up to March 31, 2009. IFCI’s Shares are listed
9099 (DSE) at major Stock Exchanges of the Country and being traded
67 (CSE) actively.
Demat ISIN Number: (xiii) Outstanding GDRs/ADRs/Warrants or any Convertible
Equity Shares : INE039A01010 instruments:
(vii) Market Price Data: (Price in Rs.) There are no GDR/ADR or Warrants or any other Convertible
Instruments, which are pending for conversion into equity shares.
Month & Year National Stock Exchange Bombay Stock Exchange
High Low High Low (xiv) Plant Location : IFCI is a Financial Institution
April, 2008 64.50 41.05 64.60 41.30 having its Corporate Office at
May, 2008 66.20 54.60 66.40 54.70 New Delhi
June, 2008 63.45 40.05 63.35 36.80 Regional Offices at : Ahmedabad, Bangalore,
July, 2008 48.00 29.10 48.10 29.20 Bhopal, Kolkata,
August, 2008 53.45 42.25 53.40 42.45 Chandigarh, Chennai,
September, 2008 50.05 33.30 50.10 31.35 Delhi, Hyderabad, Jaipur,
October, 2008 37.80 15.35 37.50 15.40 Lucknow and Mumbai
November, 2008 22.65 16.00 22.70 15.25 Other Offices at : Guwahati, Kochi, Panaji,
December, 2008 24.50 15.60 24.45 15.60 Patna and Pune
January, 2009 26.70 17.35 26.75 17.35
February, 2009 21.95 17.80 21.90 17.80 (xv) Address for Correspondence:
March, 2009 20.95 15.80 20.95 15.80 (a) Investor Correspondence MCS Limited
F-65, Okhla Industrial Area
Source: NSE / BSE
Phase I, New Delhi-110020
(viii) Performance in comparison to broad based indices:
(b) Any other query IFCI Limited, IFCI Tower
IFCI Share price decreased during the year 2008-09 by 56.23% as 61 Nehru Place
compared to decrease in BSE Sensex by 37.94% and NSE Nifty by
New Delhi-110 019
36.19%.
Website:www.ifciltd.com
(ix) Registrar and Transfer Agent: Email: complianceofficer@ifciltd.com
(Both for Equity Shares MCS Ltd, Declaration of Compliance with the Code Of Conduct as provided in
and Family bonds) F-65, Okhla Industrial Area Clause 49 of the Listing Agreement with the Stock Exchanges
Phase-I
New Delhi-110020 The Board Members and Senior Management of IFCI Ltd have
confirmed compliance with the Code of Conduct, as laid down by the
(x) Share Transfer System:
Board of Directors of the Company, during the Financial Year 2008-09.
Presently the share transfers, which are received in physical form,
are processed and the share certificates returned within a period Sd/-
of 30 days from the date of receipt, subject to documents being ATUL KUMAR RAI
valid and complete in all respects. Chief Executive Officer & Managing Director

22
 Annual Report 2008-09

Certificat
atee in T
ertificat erms of Clause 49 of tthe
Terms he Listing Agr
Agreeement
In terms of Clause 49 of the Listing Agreement, it is certified as under that:
(a) The financial statements and the cash flow statement for the year have been reviewed and that to the best of our knowledge
and belief:
(i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(ii) these statements together present a true and fair view of the company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are
fraudulent, illegal or violative of the Company.
(c) We accept responsibility for establishing and maintaining internal controls and have evaluated the effectiveness of the
internal control systems of the Company and have disclosed to the Auditors and the Audit Committee, deficiencies in the
design or operation of internal controls, if any, of which we are aware and the steps we have taken or propose to take to
rectify these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee:
(i) significant changes in internal control during the year;
(ii) significant changes in accounting policies during the year and the same have been disclosed in the notes to the financial
statements; and
(iii) instances of significant fraud of which we have become aware and the involvement therein, if any, of the management
or an employee having a significant role in the Company’s internal control system.

S SETHEE JAVED YUNUS ATUL KUMAR RAI

Chief Finance Officer Executive Director Chief Executive Officer & Managing Director

Place : New Delhi

Date : June 27, 2009

Auditor
ors’s’ C
Auditor ertific
Certification on C
ertification or
Corpor
orporat
atee Governanc
porat Governancee
TO THE MEMBERS OF IFCI LIMITED

We have examined the compliance of conditions of Corporate Governance by IFCI Limited, for the year ended on March 31, 2009,
as stipulated in Clause 49 of the Listing Agreement of the said Company with the Stock Exchanges.

The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to
procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate
Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has
complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or
effectiveness with which the management has conducted the affairs of the Company.

For RAY & RAY

Chartered Accountants

ANIL P VERMA
Place: New Delhi Partner
Date : July 22, 2009 Membership No. 90408

23
 Annual Report 2008-09

Auditors’ Report
TO THE MEMBERS OF IFCI LIMITED (iv)
We have audited the attached Balance Sheet of IFCI Ltd as at March 31, 2009 and also the
Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the Company’s management. (v)
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India.
Those Standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes (vi)
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
As required by the Companies (Auditor’s Report) Order, 2003 and the Companies (Auditor’s
Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of
Sub-Section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report that:
(i) We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purposes of our audit.
(ii) In our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books.
(iii) The Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt Place: New Delhi
with by this report are in agreement with the books of account. Date: June 27, 2009
In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow
Statement dealt with by this report comply with the accounting standards referred to
in Sub-Section (3C) of Section 211 of the Companies Act, 1956.
On the basis of written representations received from the Directors, as on
March 31, 2009 and taken on record by the Board of Directors, we report that none of
the Directors of the Company is disqualified as on March 31, 2009 from being appointed
as Director under Section 274(1) (g) of the Companies Act, 1956.
In our opinion and to the best of our information and according to the explanations
given to us, the said accounts read together with the Significant Accounting Policies
and Notes thereon, give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
i) in the case of the Balance Sheet, of the state of affairs of the Company as
at March 31, 2009;
ii) in the case of the Profit and Loss Account, of the profit for the year ended on
that date; and
iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
For RAY & RAY
Chartered Accountants
Anil P Verma
Partner
Membership No. 90408

ANNEXURE TO THE AUDITORS' REPORT TO THE MEMBERS OF IFCI LTD

(i) (a) The Company is maintaining proper records showing full particulars, including Name of the Nature of the Amount Period to which Forum where
quantitative details and situations of fixed assets. Statute Dues (Rs. in crore) the Amount dispute
(b) The fixed assets are being physically verified by the management at all its of- relates pending
fices in a phased manner at reasonable intervals. Material discrepancies were Income Tax Act, Income Tax 206.17 AY 1995-96, 1996-97 Appellate
not noticed on such verification. 1961 & 1998-99 Authority –
(c) The Company did not dispose off a substantial part of fixed assets during the Tribunal Level
year. However, the Company did dispose off certain land and buildings during M P Commercial Sales Tax on 0.006 – Board of Revenue
the year. This has not affected the going concern. Tax Act lease (Commercial
(ii) The nature of the Company does not require it to hold inventories and as such Clause transactions Tax Tribunal)
4(ii) of the Companies (Auditor's Report) Order, 2003 ('Order') is not applicable. M.P., Gwalior
(iii) (a) The Company has not granted any loans, secured or unsecured to companies, However, according to the information and explanations given to us, the demand against
firms or other parties covered in the register maintained under Section 301 of Income Tax is fully covered by way of Advance Tax, deposited with Income Tax Au-
the Companies Act, 1956. As the Company has not granted any loans, secured thorities.
or unsecured, to parties listed in the registers maintained under Section 301 of
(x) The Company did not have any accumulated losses as at the end of the financial year
the Companies Act, 1956, paragraphs (iii) (a), (b), (c) & (d) of the Order are not
and in the immediately preceding financial year.
applicable.
(xi) According to the information and explanations given to us and on the basis of our
(b) The Company has not taken any loans, secured or unsecured from companies,
examination of the books of account, the Company has not defaulted in repayment of
firms or other parties covered in the register maintained under Section 301 of
dues to any financial institution or bank or debenture holders, except the differential
the Companies Act, 1956. As the Company has not taken any loans, secured or
interest in respect of certain bonds which are in the process of restructuring.
unsecured, from parties listed in the registers maintained under Section 301 of
the Companies Act, 1956, paragraphs (iii) (e), (f) and (g) of the Order are not (xii) According to the information and explanations given to us and on the basis of our
applicable. examination of the books of account, the Company has granted loans and advances on
the basis of security by way of pledge of shares, debentures and other securities. The
(iv) In our opinion, and according to the information and explanations given to us, there
Company has maintained adequate documents and records in this respect.
are adequate internal control procedures commensurate with the size of the
Company and the nature of its business, for the purchase of fixed assets and for (xiii) The Company is not a chit fund, nidhi, mutual benefit or a society. Accordingly, Clause
sale of services. Further, during the course of our audit we have neither come across 4(xiii) of the Order is not applicable.
nor have we been informed of any continuing failure to correct major weakness in (xiv) (a) According to the information and explanations given to us and on the basis of
the internal controls. our examination of the books of account, proper records have been maintained
(v) (a) In our opinion, and according to the information and explanations given to us, of the transactions and contracts and timely entries have been made therein in
there are no transactions that need to be entered into a register maintained respect of the shares, securities, debentures and other investments dealt with or
under Section 301 of the Companies Act, 1956. traded by the Company.
(b) In our opinion, and according to the information and explanations given to us, (b) The shares, securities, debentures and other securities have been held by the
as there are no transactions that need to be entered into a register maintained Company, in its own name except to the extent of the exemption, if any, granted
under Section 301 of the Companies Act, 1956 paragraph (v) (b) of the Order is under Section 49 of the Act.
not applicable. (xv) In our opinion and according to information and explanations given to us, the terms
(vi) In our opinion, and according to the information and explanations given to us, the and conditions on which the Company has given guarantees for loans taken by others
Company has, in respect of public deposits, complied with the directives issued by from bank or financial institutions are not prejudicial to the interests of the
the Reserve Bank of India and the provisions of Sections 58A and 58AA or any other Company.
relevant provisions of the Companies Act, 1956 and the rules framed there under. As (xvi) In our opinion and according to information and explanations given to us, term loans
per the information and explanations given to us, no order has been passed by have been applied for the purpose for which they were obtained.
Company Law Board or National Company Law Tribunal or Reserve Bank of India or (xvii) According to information and explanations given to us and based on the overall
any Court or any other Tribunal in this respect. examination of the Balance Sheet of the Company, we report that no funds raised on
(vii) In our opinion, the Company does have an internal audit system commensurate with short term basis have been used for long term investment.
its size and nature of its business. (xviii) The Company has not made any preferential allotment of shares to parties and
(viii) According to the information and explanations given to us, the Central Government companies covered in the Register maintained under Section 301 of the Companies
has not prescribed maintenance of cost records under Clause (d) of Sub-Section (1) Act, 1956, during the year.
of Section 209 of the Companies Act, 1956. (xix) As all debentures and bonds issued are unsecured, creation of security or charge does
(ix) (a) According to the information and explanations given to us and on the basis of not arise.
our examination of the books of account, the Company has been regular in (xx) The Company has not raised any money by public issues during the year.
depositing undisputed statutory dues including Provident Fund, Investor
(xxi) According to information and explanations given to us, no fraud has been noticed or
Education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax,
reported during the year.
Custom Duty, Cess and other material statutory dues as applicable with the
appropriate authorities. For Ray & Ray
Chartered Accountants
(b) As at March 31, 2009 according to the records of the Company and the
information and explanations given to us, the following are the particulars of Anil P Verma
dues on account of Income Tax/Sales Tax/Wealth Tax/Service Tax/Custom Duty/ Place: New Delhi Partner
Excise Duty/Cess that have not been deposited on account of disputes: Date: June 27, 2009 Membership No. 90408

24
 Annual Report 2008-09

Balance Sheet as at March 31, 2009

Rs. crore)
Schedule As at As at
No. March 31, 2009 March 31, 2008
I. SOURCES OF FUNDS
(1) Shareholders’ Funds
Share Capital I 1,108.29 1,190.32
Reserves and Surplus II 2,632.47 2,134.55
(2) Loan Funds (Unsecured)
Rupee Loans III 9,042.49 9,595.91
Foreign Currency Loans IV 631.29 627.08
TOTAL 13,414.54 13,547.86
II. APPLICATION OF FUNDS
(1) Fixed Assets V
Gross Block 1,102.04 1,197.61
Less: Depreciation 285.19 274.97
Net Block 816.85 922.64
Capital work-in-progress 63.72 54.30
(2) Investments VI 4,038.76 2,270.72
(3) Deferred Tax Assets 1,726.31 2,037.72
(4) Current Assets, Loans and Advances
Sundry Debtors VII 144.25 7.95
Cash & Bank Balances VIII 483.59 3,482.31
Other Current Assets IX 174.96 285.41
Loans to Assisted Concerns X 7,019.90 5,395.14
Other Loans & Advances XI 414.23 450.30
8,236.93 9,621.11
Less: Current Liabilities and Provisions
Current Liabilities XII 989.11 881.44
Provisions XIII 478.92 477.19
1,468.03 1,358.63
Net Current Assets 6,768.90 8,262.48
Significant Accounting Policies and Notes on Accounts XIX

TOTAL 13,414.54 13,547.86

In terms of our report of even date For and on behalf of Board

For RAY & RAY

Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director
ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

25
 Annual Report 2008-09

Profit and Loss Account for the Year Ended March 31, 2009
(Rs. crore)
Schedule For the For the
No. year ended year ended
March 31, 2009 March 31, 2008
I. INCOME
Income from Operations XIV 1,402.07 1,963.00
Other Income XV 82.45 148.42
TOTAL INCOME (A) 1,484.52 2,111.42
II. EXPENDITURE
Cost of Borrowings XVI 790.05 820.67
Payments to and provisions for employees XVII 51.23 121.33
Establishment and Other Expenses XVIII 39.62 31.25
Depreciation (Net of transfer from Revaluation Reserve) 7.52 6.87
TOTAL EXPENDITURE (B) 888.42 980.12
III. PROFIT BEFORE PROVISIONS/WRITE OFF (A-B) 596.10 1,131.30
IV. BAD AND DOUBTFUL LOANS & ADVANCES AND OTHER ASSETS
– Provision/Write-off 279.85 400.07
– Provision Reversal (693.98) (1,353.36)
V. PROFIT BEFORE EXCEPTIONAL ITEMS 1,010.23 2,084.59
Amount receivable from Govt. of India written off – (416.00)
VI. PROFIT BEFORE TAX 1,010.23 1,668.59
Provision for Taxation
– Income Tax 111.62 148.22
– MAT Credit Entitlement (74.72) (145.70)
– Deferred Tax Charge (Net) 311.41 644.70
– Fringe Benefit Tax 4.77 0.80
VII. PROFIT AFTER TAX 657.15 1,020.57
Surplus/(Deficit) brought forward from Previous Year 12.36 (836.20)
Profit available for appropriation 669.51 184.37
VIII. APPROPRIATIONS:
Reserve u/s 45IC of RBI Act 133.90 36.87
Transfer to Capital Redemption Reserve 82.03 21.36
Transfer to General Reserve 65.00 –
Proposed Dividend
– Equity 60.99 –
– Preference 4.37 97.25
Tax on Distributed Profits
– Equity 10.37 –
– Preference 0.74 16.53
Balance carried over to Balance Sheet 312.11 12.36
669.51 184.37
Basic Earnings per share of Rs.10.00 each (Rs.) 8.55 15.22
Diluted Earnings per share of Rs.10.00 each (Rs.) 4.58 9.07
Significant Accounting Policies and Notes on Accounts XIX

In terms of our report of even date For and on behalf of Board

For RAY & RAY

Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director
ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

26
 Annual Report 2008-09

Cash Flow Statement for the Year Ended March 31, 2009
(Rs. crore)
For the year ended For the year ended
March 31, 2009 March 31, 2008

A. CASH FLOW FROM OPERATING ACTIVITES

Net Profit before Tax & Exceptional Items 1,010.23 2,084.59

Adjustments for:
Depreciation 7.52 6.87
Provision/write offs (414.13) (953.29)
Profit on Sale of Assets (38.40) (0.49)
Lease Equalisation 14.94 (430.07) 12.81 (934.10)
Operating Profit before Working Capital Changes 580.16 1,150.49

Adjustments for:
(Increase)/decrease in Current Assets 105.17 1,397.94
Increase/(decrease) in Current Liabilities 37.30 142.47 34.52 1,432.46

Cash Flow before Exceptional Items 722.63 2,582.95

Exceptional Items – (416.00)
Income Tax Paid (111.62) (148.22)
Dividend Paid (4.37) (113.78)
Net cash from Operating Activities 606.64 1,904.95

B. CASH FLOW FROM INVESTING ACTIVITIES

Sale of/(Addition) to Investments (incl. Application Money) (1,883.36) (144.16)
Purchase of/Advance for Fixed Assets (including Leased Assets) (18.54) (57.77)
Sale proceed of Fixed Assets 48.09 0.68

Net cash used in/raised from Investing Activities (1,853.81) (201.25)

C. CASH FLOW FROM FINANCING ACTIVITIES

Loans borrowed (net of repayments) (549.21) (2,701.29)
Loans lent (net of repayments) (1,095.31) 1,653.90
Issue of Preference Shares (net of redemption) (82.03) (1.36)
Issue of Equity Shares – 123.73
Share Premium (net of expenses) – 1,200.25
IDF/BRF/SWF (Net) – 0.01
Net Cash from Financing Activities (1,726.55) 275.24

Net Change in Cash & Cash Equivalent (A+B+C) (2,973.72) 1,978.94

Opening Cash and Cash Equivalent 3,457.31 1,478.37

Closing Cash and Cash Equivalent 483.59 3,457.31

Increase/(Decrease) in Cash & Cash Equivalent (2,973.72) 1,978.94

Note: Figures for previous year have been regrouped, wherever considered necessary

In terms of our report of even date For and on behalf of Board

For RAY & RAY

Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director
ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

27
 Annual Report 2008-09

Schedules forming part of the Accounts

(Rs. crore)
SCHEDULE - I As at As at
SHARE CAPITAL March 31, 2009 March 31, 2008

AUTHORISED

150,00,00,000 (Previous Year - 150,00,00,000) Equity Shares of Rs.10/- each 1,500.00 1,500.00

150,00,00,000 (Previous Year - 150,00,00,000) Cumulative Redeemable

Preference Shares of Rs.10/- each 1,500.00 1,500.00

3,000.00 3,000.00

ISSUED

82,96,60,951 (Previous Year - 82,96,60,951) Equity Shares of Rs 10/- each 829.66 829.66

42,79,10,000 (Previous Year - 42,79,10,000) Cumulative Redeemable

Preference Shares of Rs.10/- each 427.91 427.91

SUBSCRIBED

76,37,30,197 (Previous Year - 76,37,30,197) Equity Shares of Rs.10/- each 763.73 763.73

42,79,10,000 (Previous Year - 42,79,10,000) Cumulative Redeemable

Preference Shares of Rs.10/- each 427.91 427.91

PAID UP

(A) EQUITY

76,24,13,497 (Previous Year - 76,24,13,497) Equity Shares of Rs.10/- each @ 762.41 762.41

TOTAL (A) 762.41 762.41

(B) PREFERENCE
1. 26,38,43,100 (Previous Year - 26,38,43,100) 0.10% Cumulative Redeemable Preference
Shares of Rs.10/- each (Redeemable at par on 02.08.2017 - Rs.38.84 crore,
on 15.09.2018 - Rs.93.00 crore, on 17.09.2018 - Rs.50.00 crore,
on 31.03.2019 - Rs.30.00 crore, on 31.10.2020 - Rs.2.00 crore,
on 01.03.2021 - Rs.10.00 crore, on 02.03.2021 - Rs.30.00 crore,
on 03.03.2021 - Rs.8.00 crore and on 31.03.2021 - Rs.2.00 crore) 263.84 263.84

2. 8,20,33,450 (Previous Year - 16,40,66,900) 5% Cumulative Redeemable Preference

Shares of Rs.10/- each (Redeemable at par on 01.04.2009 - Rs.82.04 crore) 82.04 164.07

TOTAL (B) 345.88 427.91

TOTAL (A + B) 1,108.29 1,190.32

@ Of the above 20,25,00,000 Equity Shares of Rs.10/- each have been allotted as fully paid up, without payment being received in cash, in exchange for shares
of the erstwhile Industrial Finance Corporation of India.

SCHEDULE - II (Rs. crore)

RESERVES AND SURPLUS As at Additions/ Deduction/ As at
April 1, Transfers Transfers March 31,
2008 during the year during the year 2009
(A) Capital Reserve 0.85 – – 0.85
(B) Capital Redemption Reserve 29.01 82.03* – 111.04
(C) Debenture Redemption Reserve 5.00 – – 5.00
(D) Grant received from Government of India
(out of Interest Differential Fund in terms of KfW agreements) 184.48 – – 184.48
(E) Securities Premium Account 1,210.23 – – 1,210.23
(F) Special Reserve under Section 36(1)(viii) of the
Income Tax Act, 1961 for the period upto 31.03.97 1.69 – – 1.69
(G) Reserve u/s 45IC of RBI Act 36.87 133.90 – 170.77
(H) Revaluation Reserve 649.95 – 82.76 567.19
(I) Benevolent Reserve 4.11 – – 4.11
(J) General Reserve – 65.00 – 65.00
(K) Profit & Loss Account 12.36 299.75 – 312.11
TOTAL 2,134.55 580.68 82.76 2,632.47
Previous Year 873.84 1,270.85 10.14 2,134.55

* Represents Capital Redemption Reserve credited out of Profit & Loss Account pursuant to redemption of Preference Shares during the year

28
 Annual Report 2008-09
(Rs. crore)
SCHEDULE - III As at As at
UNSECURED LOANS - RUPEE March 31, 2009 March 31, 2008
(A) OPTIONALLY CONVERTIBLE DEBENTURES
(i) 9.75% Govt. of India - Redeemable on 30.10.2021 400.00 400.00
SUB - TOTAL ‘A’ 400.00 400.00
(B) NON-CONVERTIBLE DEBENTURES (NCDs)
(i) 6.00% IDBI – 100.00
(ii) 6.00% LIC - Redeemable on 28.12.2021 200.00 200.00
(iii) 6.00% SBI - Redeemable on 25.01.2022 200.00 200.00
(iv) 0.00% LIC - Redeemable on 01.04.2022 155.22 155.22
SUB - TOTAL ‘B’ 555.22 655.22
(C) BONDS
(a) Guaranteed by Government of India and redeemable at par
11.50% Bonds: Redemption - Rs.200 crore on 30.05.2009, Rs.150 crore on
19.09.2009, Rs.88 crore on 26.12.2009, Rs.180 crore on 26.06.2010,
Rs.150 crore on 24.09.2010, Rs.70 crore on 26.12.2010 and
Rs.180 crore on 19.08.2011 1,018.00 1,416.02
12.00% Bonds: Redemption - Rs.200 crore on 13.01.2012 and Rs.60 crore on 03.03.2012 260.00 260.00
7.79% Bonds: Redemption - 27.05.2012 102.21 102.21
6.46% Bonds: Redemption - 24.11.2012 179.77 179.77
6.29% Bonds: Redemption - 17.02.2013 15.43 15.43
7.23% Bonds: Redemption - 01.04.2012 25.87 25.87
5.30% Bonds: Redemption - 24.09.2013 195.50 195.50
8.41% Bonds: Redemption - 14.06.2018 133.85 –
7.28% Bonds: Redemption - 14.09.2017 176.86 176.86
7.96% Bonds: Redemption - 08.10.2017 176.43 176.43
7.50% Bonds: Redemption - 28.01.2018 9.40 9.40
6.07% Bonds: Redemption - 13.12.2018 146.20 –
6.02% Bonds: Redemption - 28.02.2019 26.12 –
Interest accrued and due 2.51 3.61
SUB-TOTAL ‘C’ (a) 2,468.15 2,561.10
(b) Other Bonds
(i) Privately Placed Bonds carrying maturity of One to Twenty years from date of placement
(earliest redemption due on 01.04.2009). Put option applicable on Rs.756.85 crore 4,487.12 4,894.71
(ii) Privately Placed Zero Coupon Bonds carrying maturity of 10 years from the date of issue.
Unamortised discount of Rs.0.14 crore (Previous Year – Rs.0.19 crore) 0.62 0.57
SUB-TOTAL ‘C’ (b) 4,487.74 4,895.28
(D) OTHER BORROWINGS
(i) Govt. of India under restructuring (to be issued in the form of 0.1%
Optionally Convertible Debentures (redeemable on 28.03.2023),
with a right of recompense on par with other stakeholders) 523.00 523.00
(ii) Banks & FIs 425.00 425.00
(iii) Subsidiaries 40.00 –
(iv) Under Interest Differential Fund 23.13 23.13
(v) Interest accured and due on above 20.10 17.24
(vi) Others (Put Option available on Rs.30 crore) 69.47 36.53
SUB-TOTAL ‘D’ 1,100.70 1,024.90
(E) FUNDS PLACED WITH THE CORPORATION
(a) Jute Development Fund (placed by Govt. of India) 3.90 3.57
(b) Employees’ Provident Fund 22.02 50.86
(c) Staff Welfare Fund 4.76 4.98
SUB-TOTAL ‘E’ 30.68 59.41
TOTAL {(A+B+C(a)+C(b)+D+E)} 9,042.49 9,595.91
Bonds, Debentures & Borrowings repayable within one year 745.43 661.91

29
 Annual Report 2008-09

(Rs. crore)
SCHEDULE - IV As at As at
UNSECURED LOANS - FOREIGN CURRENCIES March 31, 2009 March 31, 2008
BORROWINGS (Long Term)
(A) Loans Guaranteed by Government of India
Lines of Credit (Kreditanstalt-fur-Wiederaufbau) 608.15 594.43
(B) Other unsecured loans

Lines of Credit 23.14 32.65

TOTAL 631.29 627.08

Loans repayable within one year 35.36 33.26

SCHEDULE - V
FIXED ASSETS (Rs. crore)
PARTICULARS GROSS BLOCK DEPRECIATION NET BLOCK
As at Additions Deductions/ As at As at For the Deductions/ As at As at As at
01.04.2008 Transfers 31.03.2009 01.04.2008 year Transfers 31.03.2009 31.03.2009 31.03.2008
Freehold Land @ 70.77 – 35.70 35.07 – – – – 35.07 70.77
Leasehold Land @ 207.85 – – 207.85 8.79 3.26 – 12.05 195.80 199.06
Plant & Machinery 24.46 – 5.53 18.93 12.18 1.15 3.01 10.32 8.61 12.28
Buildings @ 594.22 0.33 47.38 547.17 58.53 9.72 6.27 61.98 485.19 535.69
Furniture & Fixtures 15.19 4.30 $ 4.96 14.53 10.77 1.01 3.62 8.16 6.37 4.42
Office Equipments 18.05 1.34 6.82 12.57 13.85 1.47 6.34 8.98 3.59 4.20
Electrical Installations 15.80 0.98 4.19 12.59 9.92 0.61 2.64 7.89 4.70 5.88
Vehicles 0.27 2.17 0.11 2.33 0.13 0.05 0.11 0.07 2.26 0.14
Leased Assets – Plant &
Machinery 251.00 – – 251.00 251.00 – – 175.74 * 75.26 90.20
TOTAL 1,197.61 9.12 104.69 1,102.04 365.17 17.27 21.99 285.19 816.85 922.64
Capital work-in-progress
incl. advances # 54.30 9.42 63.72 63.72 54.30
GRAND TOTAL 1,251.91 18.54 104.69 1,165.76 365.17 17.27 21.99 285.19 880.57 976.94
Previous Year 1,210.12 57.85 16.06 1,251.91 363.95 17.01 15.79 274.97 976.94
$ Includes Art Works – Rs.1.36 crore
* Leased Assets (Accumulated Depreciation) is net of Rs.75.26 crore on account of Lease Adjustment (Previous Year - Rs.90.20 crore)
# Advances include Rs.60.51 crore on account of land (Previous Year - Rs.54.06 crore)

@ includes on account of revaluation:

– Freehold Land - Gross block as on 01.04.08 - Rs.69.02 crore; Deductions - Rs.35.28 crore; as on 31.03.09 - Rs.33.74 crore
– Leasehold Land - Gross block as on 01.04.08 - Rs.186.24 crore; Deductions - Rs. Nil; as on 31.03.09 - Rs.186.24 crore; Depreciation for the year - Rs.3.01 crore
(Previous Year - Rs.3.01 crore)
– Building - Gross block as on 01.04.08 - Rs.414.97 crore; Deductions - Rs.39.45 crore; as on 31.03.09 - Rs.375.52 crore; Depreciation for the year - Rs.6.74 crore
(Previous Year - Rs.7.13 crore)

Note: Deductions of Land & Building represent transfer to IIDL (Subsidiary Company)

SCHEDULE - VI
INVESTMENTS (TRADE)
(Rs. crore)
As at March 31, 2009 As at March 31, 2008
(1) LONG TERM INVESTMENTS No. of Amount No. of Amount
(A) QUOTED Shares/Units Shares/Units
1. Equity Shares
(a) Associates
– Tourism Finance Corporation of India Ltd 25,422,365 57.80 21,386,771 50.44
(b) Assistance under development financing 618.83 391.37
(c) Others 147.24 40.77
823.87 482.58
2. Bonds
(a) Unit Trust of India - US 64 – – 1,545,655 20.87
(b) LIC Housing Finance Ltd 300 30.66 – –
(c) HDFC Ltd (9.32%) 100 10.00 – –
(d) HDFC Ltd (9.2%) 3,000 300.00 – –
(e) Power Finance Corporation Ltd 100 10.13 – –
350.79 20.87

30
 Annual Report 2008-09
SCHEDULE - VI (Contd.) (Rs. crore)
As at March 31, 2009 As at March 31, 2008
No. of Amount No. of Amount
Shares/Units Shares/Units
3. Units
Investment in UTI Balance Fund 500,000 0.51 500,000 0.51
0.51 0.51
4. Government Securities
7.99% Government Security (Maturity Date - 09.07.2017) 4.94 –
4.94 0.00
B. UNQUOTED
1. Equity Shares
(a) Subsidiaries
i) IFCI Financial Services Ltd 6,903,188 6.90 6,903,188 6.90
ii) IFCI Venture Capital Funds Ltd 32,260,505 56.00 6,000,000 6.00
iii) IFCI Infrastructure Development Ltd 228,630,902 228.63 2,000,000 2.00
iv) IFCI Factors Ltd 79,154,700 90.19 – –
v) Madhya Pradesh Consultancy Organisation Ltd 3,480 0.35 – –
(b) Associates
i) Assets Care Enterprise Ltd 7,248,334 7.25 3,483,333 3.48
ii) IFCI Factors Ltd – – 9,968,750 6.86
iii) Himachal Consultancy Organisation Ltd 735 0.07 – –
iv) Hardicon Ltd 2,600 0.03 – –
v) North India Technical Consultancy Organisation Ltd 2,600 0.06 – –
(c) Assistance under development financing 431.09 201.02
2. Preference Shares 545.44 436.89
3. Debentures/Bonds 844.33 792.52
4. Security Receipts 150.27 166.53
5. Government Securities
(a) Investment in 9.75% GoI (IFCI Ltd) Special Security, 2021 400.00 400.00
(b) Investments in Govt. Securities and Treasury Bills 0.01 0.01
6. Application Money
(a) Equity Shares
i) Subsidiaries
– IFCI Financial Services Ltd (under reconciliation) 0.02 0.02
ii) Others 79.94 142.27
(b) Preference Shares 15.61 68.81
(c) Debentures 2.47 6.39
7. Units
(a) Units of UTI VECAUS - III (Fund) 775,000 7.75 875,000 8.75
(b) Units of IACM-1-D (Fund promoted by IVCF) 41,400,000 41.40 – –
TOTAL LONG TERM INVESTMENTS 4,087.92 2,752.41
(2) CURRENT INVESTMENTS
A. QUOTED
1. Equity Shares
(a) ABB Ltd 50,000 2.14 11,811 1.41
(b) ACC Ltd 250,000 14.84 44,180 4.38
(c) Bajaj Hindustan Sugar & Industries Ltd 50,000 0.24 – –
(d) Bajaj Holdings & Investment Ltd – – 18,262 2.25
(e) Bharti Airtel Ltd 50,000 3.13 35,000 3.04
(f) Chambal Fertilisers and Chemicals Ltd – – 200,000 1.26
(g) DLF Ltd 50,000 0.89 49,000 3.92
(h) ICICI Bank Ltd 100,000 3.41 15,000 1.66
(i) Infosys Technologies Ltd 5,000 0.68 – –
(j) ITC Ltd – – 90,000 1.78
(k) Larsen & Toubro Ltd 303,846 20.57 – –
(l) ONGC Ltd – – 26,713 2.71
(m) Punj Llyod Ltd – – 147,875 6.71
(n) Reliance Communications Ltd 800,000 14.05 180,000 11.34
(o) Reliance Industries Ltd 200,000 30.91 30,000 7.61
(p) Siemens India Ltd 420,000 11.13 32,000 2.53
(q) State Bank of India 300,000 32.27 60,459 13.97
(r) Steel Authority of India Ltd 50,000 0.50 – –
(s) Tata Iron & Steel Company Ltd 240,000 5.05 20,000 1.62
(t) Tata Motors Ltd – – 59,676 4.28
139.81 70.47
2. Bonds
(a) LIC Housing Finance Ltd – – 300 30.66
(b) HDFC Ltd (9.32%) – – 100 10.00
(c) HDFC Ltd (9.2%) – – 3,000 300.00
(d) Power Finance Corporation Ltd – – 100 10.13
0.00 350.79

31
 Annual Report 2008-09
SCHEDULE - VI (Contd.) (Rs. crore)
As at March 31, 2009 As at March 31, 2008
No. of Amount No. of Amount
Shares/Units Shares/Units
3. Government Securities
(a) 7.99% Government Security (Maturity Date - 09.07.2017) 10.68 20.41
(b) 6.05% Government Security (Maturity Date - 02.02.2019) 84.66 –
95.34 20.41
4. Units of Mutual Funds
(a) AIG Mutual Fund – – 15,458,687 16.15
(b) Birla Mutual Fund 11,572,891 19.25 – –
(c) Bharti Axa Mutual Fund 44,319 4.70 – –
(d) Canara Reboco Liquid Fund 93,505,133 100.00 – –
(e) DBS Chola Mutual Fund – – 30,488,549 50.00
(f) IDFC Mutual Fund 47,118,069 48.75 – –
(g) JP Morgan Mutual Fund 43,996,927 50.00 9,601,444 10.00
(h) Principal PNB Mutual Fund 10,885,581 14.95 – –
(i) SBI Mutual Fund 50,919,090 100.00 – –
(j) UTI Mutual Fund – – 76,600 10.20
337.65 86.35
B. UNQUOTED
1. Equity Shares
(a) Bajaj Auto Ltd – – 18,262 0.88
(b) Bajaj Finserv Ltd – – 18,262 0.85
0.00 1.73
2. Pass Through Certificates
ICICI Bank 142.70 –
142.70 –
3. Commercial Paper
(a) Reliance Capital Ltd 200 9.72 – –
(b) Adlabs Films Ltd 1,000 48.77 – –
(c) IVRCL Infrastructure Projects Ltd 1,000 48.84 – –
107.33 –
4. Certificate of Deposit
Syndicate Bank 2,500 24.13 – –
24.13 –
TOTAL CURRENT INVESTMENTS 846.96 529.75
TOTAL 4,934.88 3,282.16
Less: Provision for Diminution in the value of Investments 896.12 1,011.44
Long Term 888.59 989.80
Current - Mark to Market 7.53 21.64
TOTAL 4,038.76 2,270.72
QUOTED INVESTMENTS
(1) Total Book Value 1,752.91 1,031.98
– Equity Shares 963.68 553.05
– Others 789.23 478.93
(2) Total Market Value 1,469.67 1,614.26
– Equity Shares 684.68 1,146.37
– Others 784.99 467.89
UNQUOTED INVESTMENTS
(1) Total Book Value 3,181.97 2,250.18
– Equity Shares 820.57 227.99
– Preference Shares 545.44 436.89
– Others 1,815.96 1,585.30
Note: Investments include Rs.33.52 crore (Previous Year - Rs.85.72 crore) in respect of equity shares which are subject to lock-in period
Investments include Rs.0.30 crore (Previous Year - Rs.31.90 crore) in respect of equity shares which are subject to restrictive covenants

Company-wise details in respect of investments in assisted concerns where Market Value is equal to or exceeds Rs.2 crore in the case of Quoted Investments
and where cost is equal to or exceeds Rs.2 crore in case of Unquoted Investments as included under items A (1) to (4) of Schedule - VI
(Rs. crore)
As on March 31, 2009 As on March 31, 2008
NAME OF THE COMPANY No. of Shares/ Book value No. of Shares/ Book value
Equity Shares – Quoted Debentures Debentures
Abhishek Industries Ltd – – 1,398,800 2.16
Ambuja Cements Ltd – – 500,000 3.00
Andhra Cement Company Ltd – – 1,000,000 1.00
Bartronics India Ltd 376,472 7.34 – –
Bharat Immunological & Biological Corporation Ltd 2,609,500 2.61 2,609,500 2.61
DCM Sriram Industries Ltd – – 187,457 2.39
Diana Tea Ltd – – 2,000,000 0.98
Energy Development Corporation Ltd – – 500,000 0.50

32
 Annual Report 2008-09
Schedule – VI (Contd.) (Rs. crore)
As on March 31, 2009 As on March 31, 2008
NAME OF THE COMPANY No. of Shares/ Book value No. of Shares/ Book value
Equity Shares – Quoted Debentures Debentures
Essar Oil Ltd – – 2,000,000 9.00
Facor Alloys Ltd – – 2,700,000 0.31
Garden Silk Mills Ltd 514,285 3.60 514,285 3.60
Gayatri Sugars Ltd – – 4,407,820 4.37
GIC Housing Finance Company Ltd 4,235,489 12.33 4,235,489 12.33
Givo Ltd – – 3,000,000 3.00
Gujarat Heavy Chemicals Ltd – – 562,455 0.56
Graphite India Ltd – – 445,300 0.36
Hindalco Industries Ltd 13,294,859 127.63 – –
HEG Ltd – – 85,000 –
Indian Acrylics Ltd 12,000,000 12.00 12,000,000 12.00
Indo Rama Synthetics Ltd 2,779,750 12.76 2,779,750 12.76
Indraprastha Medical Corporation Ltd 775,000 0.78 1,175,000 1.18
Infrastructure Development Finance Company Ltd 13,535,000 13.54 13,535,000 13.54
Ispat Industries Ltd 66,300,000 66.30 66,300,000 66.30
ITC Ltd – – 623,730 9.37
J K Lakshmi Cement Ltd 1,319,000 7.89 1,319,000 7.89
Jaiprakash Associates Ltd 250,000 0.30 250,000 0.30
Jayaswal Neco Ltd 2,476,734 2.48 2,476,734 2.48
Jaypee Hotels Ltd 683,800 1.67 683,800 1.67
JCT Electronics Ltd 38,117,700 17.67 – –
JCT Ltd 25,340,000 6.33 25,340,000 6.33
Jhagadia Copper Ltd – – 4,900,000 4.90
JSW Steel Ltd 1,099,958 65.23 981,583 15.71
K.G.Denim Ltd – – 1,479,756 2.34
Kanoria Chemicals & Industries Ltd – – 1,200,000 5.20
Kirloskar Ferrous Industries Ltd 3,565,000 3.57 3,565,000 3.57
Kothari Petrochemicals Ltd – – 3,292,500 3.29
Lloyds Steel Industries Ltd – – 4,632,114 12.65
Manali Petrochemicals Ltd – – 2,840,250 1.89
Mysore Cements Ltd 1,349,944 1.35 1,349,944 1.35
Mysore Paper Mills Ltd – – 4,504,386 4.50
Noida Toll Bridge Ltd 1,200,000 1.20 2,000,000 2.00
Pennar Industries Ltd 1,273,629 0.64 1,273,629 0.64
Power Trading Corporation Ltd 1,506,855 1.51 1,506,855 1.51
Reliance Capital Ltd – – 30,000 0.20
Ruchi Strips and Alloys Ltd 5,569,025 5.65 5,569,025 5.65
Saurashtra Cements Ltd – – 455,257 3.32
South Asian Petrochem Ltd – – 945,775 1.50
Southern Iron & Steel Ltd – – 2,901,375 17.99
Spel Semi Conductor Ltd – – 1,755,000 1.76
Sree Rayalaseema Alkalies & Allied Chem. Ltd 17,000,000 17.00 17,000,000 17.00
SRF Ltd 584,000 3.82 584,000 3.82
Star Paper Mills Ltd 6,034,069 43.70 701,600 3.95
Sujana Universal Industries Ltd – – – –
Tinplate Company of India Ltd – – 564,000 2.76
Unimers (I) Ltd – – 1,843,042 1.64
Welspun India Ltd – – 6,034,069 43.70
Welspun Stahl Rohren Ltd – – 262,500 0.38
Welspun Syntex Ltd 7,950,000 31.60 – –
XL Telecom Ltd – – 500,000 0.25
Equity Shares – Unquoted
Blue Blends India Ltd 3,000,000 3.00 3,000,000 3.00
Clearing Corporation of India Ltd 2,000,000 2.00 2,000,000 2.00
Dewan Rubber Industries Ltd 1,200,000 6.60 1,200,000 6.60
Essar Steel Ltd 720,000 2.88 720,000 2.88
Hind Agro Industries Ltd 2,700,000 2.70 2,700,000 2.70
HPCL Mittal Energy Ltd 18,636,000 21.93 – –
India Paging Services Ltd 15,239,300 15.24 15,239,300 15.24
Indian Metals & Ferro Alloys Ltd – – 301,647 4.02
Ispat Profiles Ltd 13,161,250 13.16 13,161,250 13.16
Malvika Steel Ltd 3,188,300 12.26 3,188,300 12.26
Meta Copper & Alloys Ltd 9,042,000 9.04 9,042,000 9.04
Modern Syntex Ltd 2,422,798 6.97 2,422,798 6.97
National Stock Exchange Ltd 2,321,000 6.52 2,450,000 6.65
North Eastern Development Finance Corporation Ltd 10,000,001 10.00 10,000,001 10.00
Pertech Computers Ltd 500,000 3.00 500,000 3.00
Ritspin Synthetics Ltd 9,500,000 9.50 17,579,300 17.43
Samcor Glass Ltd 2,000,000 7.60 2,000,000 7.60
Securities Trading Corporation Ltd 337,400 4.58 337,400 4.58
Sidhartha Super Spinning Mills Ltd 4,000,000 4.00 4,000,000 4.00
Stock Holding Corporation Ltd 3,570,000 4.46 3,570,000 4.46
Surat Textile Mills Ltd 2,000,000 6.00 2,000,000 6.00
Tata Motors – DVR – A – Ordy 8,196,720 250.00 – –
Welspun Syntex Ltd – – 31,800,000 31.60
Preference Shares – Unquoted
Bellary Steel and Alloys Ltd 567,260 5.67 567,260 5.67

33
 Annual Report 2008-09
Schedule – VI (Contd.) (Rs. crore)
As on March 31, 2009 As on March 31, 2008
NAME OF THE COMPANY No. of Shares/ Book value No. of Shares/ Book value
Equity Shares – Quoted Debentures Debentures
Bhaval Synthetics (I) Ltd 400,000 3.80 400,000 3.80
Blue Blends (India) Ltd 1,000,000 9.90 1,000,000 9.90
Dhampur Sugar Mills Ltd 1,198,530 11.99 1,198,530 11.99
Essar Steel Ltd 22,116,599 22.12 22,116,599 22.12
Gangadharan Appliances Ltd 306,250 3.06 306,250 3.06
Gayatri Sugars Ltd 2,452,245 2.45 2,452,245 2.45
GPI Textiles Ltd 106,386,496 53.19 – –
Gujarat Poly AVX Electronics Ltd 209,000 2.09 209,000 2.09
IC Textiles Ltd 952,394 9.52 952,394 9.52
Ispat Industries Ltd 57,155,107 63.32 57,155,107 63.32
Jai Parabolic Springs Limited 350,000 3.50 350,000 3.50
Jayaswal Neco Ltd – – 657,264 6.57
JCT Ltd 500,315 3.75 500,315 3.75
Jhagadia Copper Ltd 6,448,070 64.48 5,991,210 59.91
JSW Steel Ltd 21,262,362 20.17 15,723,089 15.72
Kalyanpur Cement Ltd 584,040 5.80 584,040 5.80
LML Ltd 2,150,912 21.51 2,150,912 21.51
Malwa Cotton Spinning Mills Ltd 1,724,610 17.25 1,724,610 17.25
Mangalore Refinery & Petrochemicals Ltd 7,148,949 7.15 7,148,949 7.15
Meta Copper & Alloys Ltd 4,521,000 45.21 4,521,000 45.21
Nagarjuna Fertilisers Ltd 1,026,880 10.27 1,026,880 10.27
Oswal Spinning & Weaving Mills Ltd 99,730,160 9.97 99,730,160 9.97
Prag Bosimi Synthetics Ltd 2,614,577 26.15 2,614,577 26.15
Prudential Moali Sugars – – 400,000 2.00
Ritspin Synthetics Ltd – – 934,760 9.35
S Kumar Nationwide Ltd 1,372,790 12.22 1,372,790 12.22
Saurashtra Chemical Ltd 1,046,700 10.47 1,046,700 10.47
Shree Satpuda Tapi Parisar SSK Ltd 9,178 4.59 9,178 4.59
Spectrum Power Generation Ltd 11,820,000 11.82 11,820,000 11.82
Suryalakshmi Cotton Mills Ltd 271,600 2.72 271,600 2.72
West Coast Paper Mills Ltd 6,500,000 65.00 – –
Western India Plywoods Ltd 923,270 9.23 923,270 9.23
Debentures – Unquoted
Ashima Ltd 2,400,000 16.00 2,400,000 16.00
Bharti Ventures Ltd 1,000 100.00 – –
C.T. Cotton Yarns Ltd 480,000 2.89 480,000 2.89
DCM Shriram Industries Ltd 898,000 3.45 898,000 4.84
DSL Enterprises Pvt Ltd 2,962 29.58 2,962 29.58
Emtex Industries Ltd 900,000 9.00 900,000 9.00
Essar Oil Ltd 2,631,500 26.88 2,631,500 26.88
Ganesh Benzoplast Ltd 74,663 7.47 74,663 7.47
Ginni Filaments Ltd 649,169 6.49 649,169 6.49
GTC Industries Ltd 1,000,000 4.77 1,000,000 6.52
Hind Agro Industries Ltd 1,175,000 5.88 1,175,000 7.64
Indo Rama Synthetics Ltd 11,000,000 4.81 11,000,000 8.47
Ispat Profiles Ltd 3,301,954 33.02 3,301,954 33.02
Jayaswal Neco Ltd – – 63,429 6.34
JCT Electronics Ltd 3,000,000 25.50 3,000,000 30.00
JCT Ltd 1,751,104 9.56 1,751,104 12.54
Kajaria Ceramics Ltd 1,000,000 4.84 1,000,000 6.72
Knitwear Technology Ltd – – 370,484 3.70
Krishna Lifestyle Technology Ltd 626,000 6.26 626,000 6.26
Lanco Kondapalli Power Ltd 3,750,000 5.13 3,750,000 9.54
Lloyds Steel Industries Ltd 5,000 38.72 5,105,000 101.00
Majestic Hotels Ltd 522,040 5.22 – –
Malanpur Steels Ltd 2,000,000 20.00 2,000,000 19.79
Mesco Pharmaceuticals Ltd 1,000,000 5.49 1,000,000 5.99
Modern Denim Ltd 1,750 7.50 1,750 7.50
Modern Syntex Ltd 9,014 43.75 9,014 50.00
Modern Terry Towel Ltd – – 1,750 10.30
Modern Thread Ltd 3,435 18.75 3,435 18.75
Mukund Ltd 2,500,000 22.08 2,500,000 23.13
Mysore Paper Mills Ltd 67,702 6.77 67,702 6.77
Nagarjuna Fertilizers & Chemicals Ltd 10,500,000 46.73 10,500,000 49.44
Navin Fluorine International Ltd 423,000 4.23 423,000 4.23
Pasupati Acrylon Ltd 1,000,000 4.00 1,000,000 9.00
Pentafour Products Ltd 28,000,000 2.80 28,000,000 2.80
Prag Bosimi Synthetics Ltd 3,585,978 41.76 3,585,978 41.76
Quipo Telecom Infrastructure Ltd 10,000,000 100.00 – –
Reliance Industries Ltd 1,636,306 16.36 1,636,306 16.36
Shamken Spinners Ltd 500,000 5.00 500,000 5.00
Sree Rayalaseema Alkalies & Allied Chem Ltd 3,547,949 31.04 3,547,949 35.48
Star Paper Mills Ltd – – 600,000 3.00
Sujana Steels Ltd 800,000 8.00 800,000 8.00
Sujana Universal Industries Ltd – – 1,200,000 12.00
Sun Polytron Industries Ltd 1,300 13.00 1,300 13.00
Uflex Ltd 3,279,117 32.79 3,279,117 32.79
Usha India Ltd 5,000,000 50.00 5,000,000 50.00
Videocon Industries Ltd 21 6.15 50 21.17

34
 Annual Report 2008-09
Disclosure in respect of Investments in assisted concerns where Market Value is less than Rs.2 crore in case of Quoted Investments and where cost is less than
Rs.2 crore in case of Unquoted Investments as included under items A(1) to (4) of Schedule -VI
As on March 31, 2009 As on March 31, 2008
PARTICULARS
No. of concerns 580 590
Book value 201.74 102.40
Market/Break value 115.54 100.35
(Rs. crore)
SCHEDULE - VII As at As at
SUNDRY DEBTORS March 31, 2009 March 31, 2008
(A) LEASE RENTAL RECEIVABLE
– Considered good – –
– Considered doubtful 27.21 39.79
Less: Provision (27.21) (39.79)
(B) OTHERS
– Considered good 144.25 7.95
– Considered doubtful 2.00 2.00
Less: Provision (2.00) (2.00)
TOTAL 144.25 7.95

SCHEDULE - VIII
CASH & BANK BALANCES
(A) Cash in hand (including postage stamps) 0.01 0.02
(B) Cheques on hand & under collection & remittances in transit 6.91 21.90
(C) Balances with Reserve Bank of India
– Current Account 0.47 0.04
(D) Balances with Scheduled Banks
– Current Account in India 5.99 9.90
– Deposit Account in India 455.62 3,370.00
– Current Account outside India 14.59 3.29
– Deposit Account outside India – 52.16
(E) Deposit placed with others – 25.00
TOTAL 483.59 3,482.31

SCHEDULE - IX
OTHER CURRENT ASSETS
(A) Accrued Income
(i) Interest and commitment charges on Loans 39.74 36.19
(ii) Interest on Investments 110.52 105.28
(iii) Other Income 24.63 143.87
(B) Assets aquired in settlement of dues & held for sale 0.07 0.07
TOTAL 174.96 285.41

SCHEDULE - X
LOANS
(A) ASSISTED CONCERNS
(i) In Rupees & Foreign Currencies 9,859.34 8,706.44
(ii) Advance for Assets 115.72 79.08
(B) LOAN TO SUBSIDIARIES 25.54 11.49
(C) OTHER INSTITUTIONS 0.06 0.06
10,000.66 8,797.07
Less: Provision for bad and doubtful loans 2,980.76 3,401.93
TOTAL 7,019.90 5,395.14
Notes:
(1) The above amounts include interest and other charges accrued and due
(2) Classification of Loans
(i) Secured by Assets 8,456.26 8,651.16
(ii) Guaranteed by Central/State Govts. 1.76 1.78
(iii) Against Prom.Notes & Usance Bills accepted/Guaranteed by Banks 47.04 47.04
(iv) Against pledge of shares 1,398.51 –
(v) Unsecured {incl. Rs. Nil (Previous Year - Rs. Nil) against Corporate Guarantees} 97.09 97.09
10,000.66 8,797.07
Note :
Out of the above
(i) Considered good 7,019.90 5,395.14
(ii) Considered doubtful 2,980.76 3,401.93
10,000.66 8,797.07

35
 Annual Report 2008-09
(Rs. crore)
SCHEDULE - XI As at As at
OTHER LOANS & ADVANCES March 31, 2009 March 31, 2008
(a) Advance Tax paid (net of provisions)
(i) Income Tax (including Tax deducted at source) 45.35 74.01
(ii) Interest Tax 6.30 6.30
(b) MAT Credit Entitlement 316.13 241.41
(c) Other Loans and Advances
(i) Secured 10.06 8.53
(ii) Unsecured
– Considered good 24.89 46.05
– Considered doubtful 1.00 1.00
Less: Provision for doubtful debts (1.00) (1.00)
(d) Sundry Deposits 5.23 55.93
(e) Forward Deal Suspense 5.36 17.53
(f) Pre-paid Expenses 0.91 0.54
TOTAL 414.23 450.30

SCHEDULE - XII
CURRENT LIABILITIES
(a) Interest accrued but not due on bonds and borrowings 377.82 401.29
(b) Sundry Creditors
(i) Total outstanding dues to Micro & Small Enterprises – –
(ii) Total outstanding dues of creditors other than Micro & Small Enterprises 180.05 85.21
(c) Advance Receipts 0.83 0.73
(d) Other Liabilities 328.43 269.02
(e) Investor Education and Protection Fund* (to be credited by the following amounts)
(i) Unpaid Matured Deposits – 0.05
(ii) Unpaid Matured Debentures 99.07 122.21
(iii) Interest accrued on (i) to (ii) above 2.91 2.93
TOTAL 989.11 881.44
* As on 31.03.2009, no amount was due and outstanding for transfer to Investor Education and Protection Fund

SCHEDULE - XIII
PROVISIONS
(a) Assets 397.53 466.85
(b) Expenses 9.29 10.34
(c) Proposed Dividend 60.99 –
(d) Corporate Dividend Tax 11.11 –
TOTAL 478.92 477.19

(Rs. crore)
SCHEDULE - XIV For the year ended For the year ended
INCOME FROM OPERATIONS March 31, 2009 March 31, 2008
(a) On Lending Operations (incl. funded interest) 789.91 881.08
(b) On Investment Operations
(i) Dividend (Gross)
– Long Term 26.73 23.66
– Current – 0.15
(ii) Interest (Gross) 134.40 63.72
(iii) Profit on sale of Shares/Units/Debentures (Net)
– Assistance under development financing - Long Term 94.23 615.50
– Investments - Long Term 30.59 32.42
– Investments - Current 4.87 2.68
(c) Leasing Operations
(i) Lease Rentals etc. 15.13 28.09
(ii) Lease Equalisation Account (14.94) (12.81)
(d) Business Services Fee and Commission (incl. guarantee commission) 29.27 8.91
(e) Interest/Income from treasury operations 262.42 265.75
(f) Exchange Fluctuation Gains/(Loss) (3.98) 2.17
(g) Provision/Write off/Liability no longer required written back* 33.44 51.68
TOTAL 1,402.07 1,963.00
Note: i) Income Tax deducted at source from Interest etc. 27.29 7.41
ii) Dividend income from subsidiaries 0.52 1.01
iii) Interest income from subsidiaries 2.97 0.17
* Includes
– Liability not payable 31.10 47.79
– Amount written off in earlier years written back 2.34 3.89

36
 Annual Report 2008-09
(Rs. crore)
SCHEDULE - XV For the year ended For the year ended
OTHER INCOME March 31, 2009 March 31, 2008
(a) Interest on staff advances 0.57 0.90
(b) Profit on sale of fixed assets (Net) 38.40 0.49
(c) Rental Income 19.06 14.63
(d) Miscellaneous Income @ 24.42 132.40
TOTAL 82.45 148.42
@ Includes: Interest on income tax/interest tax refund 22.89 131.51

SCHEDULE - XVI
COST OF BORROWINGS
(a) Fixed
(i) Interest on SLR Bonds 245.67 279.03
(ii) Interest on other Bonds & Borrowings 493.36 504.87
(iii) Interest on Foreign Currency Borrowings 14.82 28.78
(b) Others
(i) Interest on Bank Overdraft 29.90 –
(ii) Interest on Funds placed with the Company 3.00 3.96
(iii) Commitment Charges, Brokerage, Commission and other costs 3.30 4.03
TOTAL 790.05 820.67

SCHEDULE - XVII
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
(a) Salaries and Allowances * 30.77 109.00
(b) Contribution to Retirement Funds # 18.63 9.69
(c) Staff Welfare Expenses 1.83 2.64
TOTAL 51.23 121.33
* Includes:
– Annuity for DA relief/Restoration of pension for retired employees 11.67 4.14
– VRS Expenditure – 40.93
– Leave Encashment 3.60 7.18
# Includes Gratuity 1.29 3.88

SCHEDULE - XVIII
ESTABLISHMENT AND OTHER EXPENSES
(a) Rent 0.18 0.22
(b) Rates and Taxes 2.65 3.88
(c) Insurance 0.08 0.09
(d) Repairs and Maintenance
– Buildings 11.00 7.93
– Others 0.34 0.32
(e) Electricity 4.03 3.70
(f) Auditors’ Remuneration 0.15 0.14
(g) Directors’ Fee 0.07 0.05
(h) Other Miscellanous Expenses 21.12 14.92
TOTAL 39.62 31.25

SCHEDULE - XIX Securitisation Company (SC) are valued in accordance with RBI guidelines.
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS Accordingly, the net asset value obtained from the ARC is reckoned for
(A) SIGNIFICANT ACCOUNTING POLICIES valuation of such investments. Appreciation in the value, if any, is ignored
and depreciation is provided for.
1. The financial accounts, unless otherwise stated, are prepared at historical cost under
the accrual method of accounting. 3(c) The front-end fee/underwriting commission/commitment fee received in
respect of devolvement of underwriting and direct subscription is reduced
2. REVENUE RECOGNITION
from the cost of related investments.
2(a) Income on Non-Performing Assets (NPA) has been recognised, as and when
3(d) Surplus on sale of investments is net of losses thereon.
received.
4. FOREIGN EXCHANGE TRANSACTIONS
2(b) Front-end fee, Premium on pre-payment of loans/reduction in interest rates and
LC Commission are accounted for on realization basis. 4(a) The expenses and income in foreign exchange are accounted for at the rates
prevailing on the date of transactions/at the forward rate, if booked, for such
2(c) Dividends declared by the respective companies till the close of the accounting
transaction.
year are accounted for as income.
4(b) Assets and liabilities held in foreign currencies and accrued income and
2(d) Rental on leased assets is accounted for from the commencement date, as
expenditure in foreign currencies are translated into Indian Rupees at the
prescribed in the lease agreement entered with the lessees. In respect of lease
rates advised by Foreign Exchange Dealers Association of India (FEDAI)
transactions commenced on/or before 31.03.2001, income from leases (except
prevailing towards the close of the accounting period. Gains/losses, if any, on
in case of Non-Performing Assets) is recognised on the basis of implicit rate in
valuation of various assets and liabilities are taken to Profit & Loss Account.
the lease to the net investment outstanding on the lease over the primary lease
period. 5. FIXED ASSETS AND DEPRECIATION
3. INVESTMENTS 5(a) Fixed Assets are carried at cost (including capitalized interest) less
accumulated depreciation. Accumulated depreciation on assets in respect of
3(a) Investments are classified under current and long term categories and valued
lease transactions commenced on or before 31.03.2001 is adjusted for the
in accordance with the Reserve Bank of India Guidelines and Accounting
balance in the ‘Accumulated Lease Equalization Account’.
Standard-13 on ‘Accounting for Investments’ issued by The Institute of Chartered
Accountants of India. 5(b) Depreciation on assets given on lease is provided on Straight Line Method at
the rates prescribed under Schedule XIV to the Companies Act, 1956 or over
(i) ‘Long term Investments’ are carried at acquisition/amortised cost. A
the primary period of lease of assets, whichever is higher.
provision is made for diminution other than temporary on an individual
basis. 5(c) Depreciation in respect of office building and certain other assets at Nehru
Place, New Delhi, is provided on Straight Line Method and on other assets on
(ii) ‘Current Investments’ are carried at the lower of cost or fair value on an
the Written Down Value Method at the rates prescribed under Schedule XIV
individual basis. However, appreciation if any, within the category, is
to the Companies Act, 1956.
available for set off.
5(d) Depreciation on increase in value of fixed assets due to revaluation is provided
3(b) Security Receipts issued by an Asset Reconstruction Company (ARC)/

37
 Annual Report 2008-09
on straight-line basis over the balance useful life of asset and adjusted out of
revaluation reserve.
5(e) Art works capitalized under Furniture and Fixtures are not being depreciated.
5(f) Leasehold Land is amortized over the lease period.
6. PROVISIONS/WRITE OFF AGAINST LOANS AND OTHER CREDIT FACILITIES
6(a) All credit exposures are classified into performing and non-performing assets
(NPAs) as per the Reserve Bank of India Guidelines. Further, NPAs are classified
into sub-standard, doubtful and loss assets based on the criteria stipulated by
RBI. Provisions on standard assets are made as per the approval of the Board.
Provisions are made on sub-standard and doubtful assets at rates prescribed by
RBI. Loss assets and unsecured portion of doubtful assets are provided/written
off as per the extant RBI guidelines. Additional provisions are made against
specific non-performing assets over and above what is stated above, if in the
opinion of the management, increased provisions are necessary.
6(b) For restructured/rescheduled assets, provision is made in accordance with the
guidelines issued by RBI.
6(c) Recovery against debts written off/provided for is credited to revenue. Income
is recognized where amounts are either recovered and/or adjusted against
securities/properties or advances there-against or are considered recoverable
in terms of Reserve Bank of India Guidelines.
6(d) The purchase and sale of NPAs is accounted as per guidelines prescribed by RBI.
7. GRANTS RECEIVED FROM GOVERNMENT OF INDIA UNDER INTEREST
DIFFERENTIAL FUND (IDF)
Grants received from Government of India under Interest Differential Fund (IDF) is of
a capital nature and to be utilized for specified purposes for promotional activities of
Industrial Development. Accordingly, the money so received, net of expenditure for
the approved purposes is shown under ‘Reserves and Surplus’ in the Balance Sheet.
The amounts invested and loans made out of the fund for approved purposes are
shown under ‘Investments’ and ‘Loans’ respectively. The interest/dividend/other
income earned and profit on sale of investments are treated as income of the Company.
8. MISCELLANEOUS EXPENDITURE
8(a) Expenses on issue of Shares and Bonds are charged as per guidelines contained
in Accounting Standard - 26 - “Intangible Assets”.
8(b) Voluntary Retirement Scheme (VRS) expenses are charged off as and when
incurred.
9. EMPLOYEE BENEFITS
9(a) Monthly contribution to the Provident Fund being in the nature of defined
contribution is charged against revenue. The fund is administered through duly
constituted and approved administrators.
9(b) The Company had a defined benefit employees retirement scheme in the form
of pension. Consequent upon implementation of new compensation structure
for existing employees during the year, the Trustees have entrusted the
administration of cumulative accruals to the fund to Life Insurance Corporation
of India (LICI) by entering into a Group Superannuation Cash Accumulation
Scheme, providing for defined contribution in lumpsum for past service and
defined monthly contribution by employer and/or employee and, thus, freezing
the liability of IFCI. Accordingly, the contribution determined in respect of
employees opting for the same based on the extant rules viz. period of service
rendered in IFCI; applicable pension regulations and directions communicated
by IFCI on the date of switching over to LICI has been deposited with LICI. LICI
shall be maintaining the individual accounts in respect of employees who have
opted for the same and for whom defined contribution has been remitted.
Employees shall be opting for the annuity/ withdrawal with contribution standing
to their credit on their ceasing to be in employment of IFCI.
The existing pension optees shall, however, continue to be governed by the
provisions of scheme in operation at the time of their retirement and are
accordingly entitled to DA relief and family pension as and when due. The
contribution made on account of same is charged to Accounts as and when due.
9(c) The Company has a defined benefit employees scheme in the form of Gratuity.
The Trustees of the scheme have entrusted the administration of related fund
to Life Insurance Corporation of India (LICI). Expense for the year is determined
on the basis of actuarial valuation of the Company’s year-end obligation in this
regard and the value of year end assets of the scheme. Contribution is deposited
with LICI based on intimation received by the Company.
9(d) The Company has a post retirement medical benefit scheme for employees and
their dependants subject to certain limits for hospitalization and normal medical
treatment. The same is charged against revenue as and when incurred.
9(e) Voluntary Retirement Scheme expenditure is also charged against revenue as
and when due.
10. TAXATION
Tax Expenses comprises of current & deferred income tax and fringe benefit tax. Current
income tax and fringe benefit tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Income Tax Act. Deferred Tax is recognized,
subject to consideration of prudence, on timing differences, being difference between
taxable income and accounting income/expenditure that originate in one period and
are capable of reversal in one or more subsequent year(s). Deferred taxes are reviewed
for their carrying values at each balance sheet date.
(B) NOTES ON THE ACCOUNTS
1(a) Contingent Liabilities not provided for in respect of:
(Rs. crore)
As at 31.03.2009 31.03.2008
(i) Interest tax/Sales tax/Property tax/
Trade tax pending in appeals based
on judicial pronouncement and/or
legal opinion and other matters 3.39 2.68
(ii) Guarantees issued:
– Foreign Currency – 2.83
– Indian Currency 186.65 190.42
(iii) Performance Guarantees issued 0.62 – – Contribution to Retirement Funds*
(iv) Claims not acknowledged as debts 46.96 46.56
(v) Assets sold with recourse 2.88 8.40
(vi) The Company is contesting demands (net of provisions of Rs.19.30 crore) of
38
Rs.186.87 crore (Previous Year - Rs.170.72 crore), raised by Income Tax
Authorities at various levels. It includes demand of Rs.23.72 crore on issues,
which have been restored to Assessing Officer for re-examination. In view of
various judicial pronouncements and legal opinions in respect of issues decided
in favour of/against IFCI, no provision is considered necessary. The demand,
however, stands deposited with Income Tax Authorities by way of Advance tax
(including Tax Deducted at Source).
1(b) Estimated amount of contract (including lease contract) remaining to be executed on
capital account (net of advances) as at 31.03.2009 – Rs. Nil (Previous Year - Rs.6.21
crore).
2. The Company has been granted exemption as on March 31, 2009 by the Government
of India, Ministry of Corporate Affairs, under Section 211(4) of the Companies Act,
1956, regarding the following requirements of Schedule VI of the Companies Act, 1956:
i) Company-wise details of investments where the market value in case of quoted
investments and cost in case of unquoted investments in any particular company
not exceeding Rs.2 crore each
ii) Age-wise Classification of Sundry Debtors
The accounts have been prepared in accordance therewith.
3. The stakeholders of IFCI in FY 2002-03 had approved the package for restructuring of
debt/liabilities, inter alia, providing for release of Rs.5,220 crore (comprising Rs.3,604
crore towards principal and Rs.1,616 crore towards interest over future years on
liabilities taken over/to be serviced by Govt. of India) as Grant. Government of India
released Rs.2,932.31 crore, comprising Rs.523 crore as loan (FY 2002-03) and
Rs.2,409.31 crore (FY 2003-04 to FY 2006-07) as Grant. The amount of Rs.2,409.31
crore received as Grant in FY 2003-04 to 2006-07 comprised of Rs.1,606.31 crore
towards principal and Rs.803 crore towards interest. Out of Rs.1,606.31 crore received
towards principal, Rs.1,359 crore (FY 2003-04) was accounted as extra-ordinary income
and Rs.247.31 crore (FY 2004-05 to FY 2006-07) as Restructuring Reserve in the
Reserves & Surplus A/c and thereafter transferred to Profit & Loss A/c, as per the
guidelines conveyed by RBI. The amount of Rs.803 crore received towards interest
was reduced from the cost of borrowings in respective years. In view of GoI letter
dated December 12, 2007, stating that it would assist IFCI Ltd in case such a situation
arises, no Grant has been received in FY 2007-08 and 2008-09.
4. The bonds guaranteed by Govt. of India of Rs.2,468.15 crore include bonds of
Rs.1,187.64 crore which have been rolled over for 10 years from the respective due
dates in line with the minutes of meetings of stakeholders, held on November 26, and
December 2, 2002. Government of India has been requested to extend the guarantee
for the rolled over period.
5(a) Transfer of equivalent amount to Capital Redemption Reserve Account in respect of
Preference Shares of Rs.20 crore redeemed in the FY 2001-02, was complied with in
FY 2007-08. However, the Company’s application to the Regional Director, Kanpur for
compounding is yet to be disposed off by the authorities.
5(b) During the current year, Preference Shares of Rs.82.035 crore have been redeemed as
per restructured terms on 01.04.2008 and necessary amount has been transferred to
the Capital Redemption Reserve Account from Profit and Loss Account.
6(a) Govt. of India has the option of converting the debentures, as shown at ‘A’ of Schedule
III, wholly or partly into fully paid equity shares of IFCI Limited, at par, at any time
during the currency of debentures subject to compliance with provisions of SEBI
guidelines, in respect of preferential allotment. IFCI also has the right to redeem the
convertible debentures issued to Govt. of India, fully or partly, at par, at any time after
expiry of five years from the date of the issue with prior approval of RBI.
6(b) During the financial year 2007-08, Zero Coupon Optionally Convertible Debentures
(ZCOCDs) amounting to Rs.1,323.99 crore held by Public Sector Banks and Financial
Institutions were converted into equity shares of the Company. LIC had, however,
stated that they would convert only as much of their ZCOCDs into equity as would
maintain their shareholding at 8.39% post conversion of ZCOCDs. Accordingly, the
shareholders at the AGM held on September 12, 2008 had approved reduction of share
capital for aligning the stake of LIC to 8.39% as requested by LIC. The order of the
High Court of Delhi passed on February 26, 2009 for reduction of Equity Share Capital
and minutes forming part of the petition have been registered by Registrar of Companies
on April 15, 2009. The reduction in Equity Share Capital is effective from the date of
registration.
6(c) The Optionally Convertible Debentures held by LIC and GoI do not have specific terms
of conversion.
7. The Company has availed loans of Rs.300 crore (Previous Year - Rs.300 crore) against
security of cash flow/negative lien against certain identified assets.
8. As directed by Reserve Bank of India, the assets and liabilities in foreign currency
have been valued as per Foreign Exchange Dealers Association of India Guidelines.
9. Profit for the current year is less by Rs.0.12 crore (Previous Year - Rs.0.99 crore) due to
following of FEDAI for revaluation of outstanding swap contracts vis-á-vis Accounting
Standard-11, issued by The Institute of Chartedred Accountants of India (ICAI).
10. In respect of Investments in shares, debentures and security receipts in certain cases,
scrips are yet to be received.
11. Other Loans and Advances include Rs. 0.12 crore (Previous Year - Rs. Nil) due form
Directors. Maximum balance during the year Rs. 0.12 crore (Previous Year-Rs. Nil).
(Rs. crore)
Year ended 31.03.2009 31.03.2008
12. Expenditure in Foreign Currencies:
– Interest on borrowings 6.88 33.67
– Other matters 0.76 0.04
7.64 33.71
13. Earnings in Foreign Currencies:
– Interest – 6.94
14. Auditors' Remuneration:
– Fee (including Service Tax) 0.15 0.14
– Out of pocket expenses – –
0.15 0.14
15. Managerial Remuneration:
– Salary and allowances 0.70 0.17
0.10 0.01
– Perquisites 0.02 –
0.82 0.18
*Excluding Contributions to gratuity and leave encashment, as not determinable individually
 Annual Report 2008-09
Computation of Net Profit and Managerial Remuneration: (Rs. crore)
(Rs. crore) Gratuity Leave Encashment
Year ended 31.03.2009 31.03.2008 Funded Un-funded
Profit before Taxation and Exceptional Items 1,010.23 2,084.59 VI. Actuarial Assumptions
Add: Directors' Remuneration 0.82 0.18 1. Mortality Table – LIC 1994-96
Add: Wealth Tax 0.04 0.06 2. Early Retirement & Disablement – Age Related
Less: Profit on sale of fixed assets (net) (38.40) (0.49) 3. Discount Rate 8.00% 8.00%
Net Profit as per Section 198 of the Companies Act, 1956 972.69 2,084.34 4. Inflation Rate 7.00% 5.00%
Maximum permissible remuneration to CEO & MD/ 5. Return on Asset 8.00% –
Whole Time Directors u/s 198 of the Companies VII. Major Category of Plan Assets as a % of the
Act, 1956 @10% of the profits computed as above 97.27 208.43 Total Plan Assets as at March 31, 2009
Payable for the year 0.82 0.18 1. Government Securities 15.61% –
16. The Gross Block of Fixed Assets includes Rs.595.50 crore (Previous Year - Rs.670.23 2. Special Deposit Scheme – –
crore) on account of revaluation of Fixed Assets carried out in past. Consequent to the 3. High Quality Corporate Bonds – –
said revaluation, there is an additional charge of depreciation of Rs.9.75 crore (Previous 4. Insurance Companies 84.39% –
Year - Rs.10.14 crore) and an equivalent amount has been withdrawn from Revaluation 5. Cash & Cash Equivalents – –
Reserve and credited to Profit and Loss Account.
22. As more than 90% of revenue for the Company comes from a single segment of
17. Balances appearing under loans, sundry debtors and sundry creditors are subject to financing, segment reporting as required under Accounting Standard-17, issued
confirmation in certain cases. by The Institute of Chartered Accountants of India (ICAI) is not applicable to IFCI.
18. There are no Micro and Small Enterprises, to whom the Company owes dues, which 23. Disclosure of details pertaining to related party transactions in terms of Accounting
are outstanding for more than 45 days as at March 31, 2009. This information as Standard-18, issued by The Institute of Chartered Accountants of India (ICAI) - "Related
required to be disclosed under the Micro, Small and Medium Enterprises Development Party Disclosures" are as under:
Act, 2006 has been determined to the extent such parties have been identified on the
i) The details of related party transactions undertaken by the Company during
basis of information available with the Company.
the year are summarised as follows:
19. Details of investments purchased and sold/redeemed during the year ended
March 31, 2009 are enclosed as Annexure. Related Party Relationship
20. There are no material prior period items included in Profit & Loss Account required to IFCI Financial Services Ltd (IFIN) Subsidiary
be disclosed as per Accounting Standard-5 issued by The Institute of Chartered IFCI Venture Capital Funds Ltd (IVCF) Subsidiary
Accountants of India (ICAI) read with RBI Guidelines. IFCI Infrastructure Development Ltd (IIDL) Subsidiary
21. Defined Benefit Plans/Long Term Compensated Absences - As per Actuarial Valuations IFCI Factors Ltd (IFL) Subsidiary (w.e.f. 08.05.2008)
as on March 31, 2009 and recognized in the financial statements in respect of Employee MPCON Ltd Subsidiary (w.e.f. 28.02.2009)
Benefit Schemes: IFCI Commodity Ltd Subsidiary (indirect control
(Rs. crore) through IFCI Financial
Gratuity Leave Encashment Services Ltd w.e.f.
Funded Un-funded 02.01.2009)
I. Components of Employer Expense Assets Care Enterprise Ltd (ACE) Associate
1. Current Service Cost 0.30 – Tourism Finance Corporation of
2. Interest Cost 0.40 – India Ltd (TFCI) Associate
HIMCON Ltd Associate
3. Expected Return on Plan Asset 0.40 –
NITCON Ltd Associate
4. Curtailment Cost/(Credit) – –
HARDICON Ltd Associate
5. Settlement Cost/(Credit) – –
With Subsidiaries (Rs. crore)
6. Past Service Cost – –
7. Actuarial (gain)/loss recognized 0.66 – Type of Transaction IFIN IVCF IIDL IFL MP-
(Year ended 31.03.2009) CON
8. Expense recognized in
Statement of Profit/Loss 0.96 3.60 Infusion of Equity - Cash – 50.00 120.00 83.33 0.25
II. Actual Returns for the year ended Other than Cash – – 106.63 – –
March 31, 2009 0.65 – Rent & Maintenance received by IFCI 0.37 0.50 0.22 0.13 –
III. Net (Asset)/Liability recognized in Brokerage paid by IFCI 0.16 – – – –
Balance Sheet as at March 31, 2009 Fee for Depository Services 1.28 – – – –
1. Present Value of Defined Salaries/Other Estt. Exp. paid by IFCI for
Benefit Obligation 6.24 – employees posted by IFCI, recovered/
2. Fair Value on Plan Assets 6.57 – recoverable from them – 0.09 0.24 0.15 –
3. Status (Surplus/Deficit) 0.33 – Salaries/Other Estt. Exp. paid
4. Unrecognised Past Service Cost – – by IFCI for employees posted in
IFCI, paid/payable to them – 0.12 – – –
5. Net (Asset)/Liability recognized
in Balance Sheet (0.33) – Consideration for assets sold by IFCI – – 106.63 – –
IV. Change in Defined Benefit Obligations (DBO) Loan to IFL (o/s) – – – 25.00 –
during the year ended March 31, 2009 Maximum amount outstanding
1. Present Value of Obligation at (receivable) during the year – 11.49 – 40.69 –
the beginning of the year 5.05 5.55 Maximum amount outstanding
(payable) during the year – – 41.30 – –
2. Current Service Cost 0.30 –
Deposits with IFCI – – 40.00 – –
3. Interest Cost 0.40 –
Interest paid/payable by IFCI – – 1.30 – –
4. Curtailment cost – –
Interest received/receivable
5. Settlement Cost – –
on Loan to IVCF/IFL – 1.08 – 1.89 –
6. Plan Amendments – –
Professional Fee paid by IFCI – – 0.07 – 0.01
7. Acquisitions – –
Employees deputed by
8. Actuarial (gain)/loss on Obligations 0.91 – IFCI as at 31.03.2009 (Nos.) – – 3 1 –
9. Benefits Paid 0.43 – Employees deputed in
10. Present Value of Obligation IFCI as at 31.03.2009 (No.) – – 1 – –
at the end of the year 6.24 8.35
With Associates (Rs. crore)
V. Change in Fair Value of Assets during the
year ended March 31, 2009 Type of Transaction ACE TFCI HIM- NIT- HARDI-
1. Fair Value of Plan Asset at (year ended 31.03.2009) CON CON CON
the beginning of the year 5.05 – Infusion of Equity 3.77 7.36 – 0.04 –
2. Acquisition Adjustment – – Rent & Maintenance received by IFCI 0.18 0.57 – – –
3. Expected Return on Plan Asset 0.40 – Salaries/Other Estt. Exp. paid by IFCI
4. Actuarial gain/loss on Plan Asset 0.25 – for employees deputed by IFCI,
5. Contributions 1.29 – recovered/recoverable from them 0.19 – – – –
Employees deputed by IFCI as at 31.03.09 (No.) 1 – – – –
6. Benefits Paid 0.43 –
Employees posted by IFCI as at 31.03.09 (No.) 1 – – – –
7. Fair Value of Plan Asset
at the end of the year 6.57 – Professional Fee paid by IFCI – – 0.07 0.03 0.05

39
 Annual Report 2008-09
ii) Key Managerial Personnel of the Company during the year: 30. The following additional information is disclosed in terms of RBI Circulars:
– Shri Atul Kumar Rai, Chief Executive Officer & Managing Director (A) Loans and advances availed by the non-banking financial company inclusive of
interest accrued thereon but not paid:
– Shri Sujit K Mandal, Whole-Time Director (w.e.f. 01.11.2008)
(Rs. crore)
24. Earnings per share (EPS) (Rs. crore)
As on 31.03.2009 As on 31.03.2008
Year ended 31.03.2009 31.03.2008 Particulars Outstanding Overdue Outstanding Overdue
I. Computation for Basic EPS (a) Debentures: Secured – – – –
(a) Profit Computation for Equity shareholders Unsecured 955.22 – 1,055.22 –
Net profit as per Profit & Loss Account 657.15 1,020.57 (b) Deferred Credits – – – –
Less: Preference Dividend (5.11) (10.07) (c) Term Loans 991.23 – 988.37 –
Net profit for Equity Shareholders 652.04 1,010.50 (d) Inter Corporate Loans &
(b) Weighted Average Number of Equity Borrowings 109.47 – 36.53 –
Shares outstanding during the year 76,24,13,497 66,40,31,855 (e) Commercial Paper – – – –
II. Computation for Diluted EPS (f) Other Loans
(a) Profit Computation for Equity shareholders (i) Funds placed with IFCI 30.68 – 59.41 –
(including potential shareholders) (ii) Bonds 6,955.89 – 7,456.38 –
Net profit as per Profit & Loss Account 657.15 1,020.57
The Company has not defaulted in repayment of dues to any financial institution or
Less: Preference Dividend (5.11) (10.07) bank or bond/debenture holders.
Add: Interest on Convertible Debentures 35.05 35.05 (B) Break-up of Leased Assets and stock on hire and other assets counting towards
Net profit for equity shareholders loan activities:
(including potential shareholders) 687.09 1,045.54 (Rs. crore)
(b) Weighted Average Number of Equity Shares
31.03.2009 31.03.2008
outstanding during the year incl. Convertible
Debentures held by LIC/GoI assuming (i) Lease assets including lease rentals
conversion price as per SEBI Guidelines 1,50,16,94,913 1,15,23,42,213 (a) Financial Lease 103.29 130.80
III. Earnings Per Share (b) Operating Lease – –
(Weighted Average, not annualised)
(ii) Stock on hire incl. hire charges under sundry debtors
Basic (Rs.) 8.55 15.22
Diluted (Rs.) 4.58 9.07 (a) Assets on hire – –

25(a) Provisions of Accounting Standard-19, issued by The Institute of Chartered Accountants (b) Repossessed Assets – –
of India (ICAI) - "Leases" are not applicable as the Company has not entered into leasing (iii) Other loans counting towards AFC activities
transaction on or after April 01, 2001. (a) Loans where assets have been repossessed – –
25(b) (i) The Company has entered into lease agreement for office premises at two centers. (b) Loans other than (a) above – –
Some of the significant terms and conditions of the arrangements are:
(C) Borrower group-wise classification of assets financed:
• Agreement may generally be terminated by either party on serving a notice
(Rs. crore)
period.
• The lease arrangements are generally renewed on expiry of lease period subject Category 31.03.2009 31.03.2008
to mutual agreement. 1. Related Parties
• The company shall not sublet, assign or part with the possession of the premises (a) Subsidiaries 25.55 11.49
without prior written consent of lessor. (b) Companies in same group – –
(ii) Rent in respect of above is charged to Profit & Loss Account. (c) Other Related Parties – –
2. Other than Related Parties 8,252.92 6,413.43
(iii) The year - wise break up of future minimum lease payments in respect of leased
premises are as under: Total 8,278.47 6,424.92
(Rs. crore)
Amount is net of provision and excludes Provision against Standard Assets
Particulars 2008-09 2007-08 (D) Investor group - wise classification of all investments (Current & Long Term) in
Minimum Lease payments: shares and securities (both Quoted & Unquoted):
a) Not later than one year 0.14 – (Rs. crore)
b) Later than one year but not later than five years 0.10 – 31.03.2009 31.03.2008
c) Later than five years – – Category Market/Break- Book Market/Break Book
up/FairValue/ Value up/Fair Value/ Value
26. Current Tax represents primarily Minimum Alternate Tax (MAT), as reduced by the MAT
NAV NAV
Credit Entitlement, which, the Company is confident, that it would be in position to
utilize against normal tax within the period specified under Income tax Act, 1961. 1. Related Parties
27. In terms of Accounting Standard-22, issued by The Institute of Chartered Accountants (a) Subsidiaries 444.92 423.47 24.96 14.90
of India (ICAI) - "Accounting for Taxes on Income", Deferred Tax Asset as at March 31, (b) Companies in same group Nil Nil Nil Nil
2009 and March 31, 2008 works out as under:
(c) Other Related Parties 42.85 65.21 67.53 60.78
(Rs. crore)
2. Other than Related Parties 4,177.57 4,550.25 3,757.19 3,206.48
As at 31.03.2009 31.03.2008
Total 4,665.34 5,038.93 3,849.68 3,282.16
Unabsorbed Business Loss 251.03 358.50
(E) Other Information: (Rs. crore)
Unabsorbed Depreciation 58.07 58.07
Provision against Loans/Advances & other Assets 1,463.14 1,673.33 Particulars 31.03.2009 31.03.2008

Timing difference in Depreciable Assets (57.12) (65.20) 1. Gross Non-Performing Assets

(a) Related Parties – –
Other Timing Differences 11.19 13.02 (b) Other than Related Parties 5,152.17 5,404.98
Deferred Tax Assets (Net) 1,726.31 2,037.72 2. Net Non-Performing Assets
For the current year Deferred Tax charge of Rs.311.41 crore has been charged in the accounts. (a) Related Parties – –
(b) Other than Related Parties 463.26 –
28. Fixed Assets possessed by the Company are treated as 'Corporate Assets' and not 'Cash
Generating Units' as defined by Accounting Standard-28 issued by The Institute of 3. Assets acquired in satisfaction of debt 0.07 0.07
Chartered Accountants of India (ICAI) - "Impairment of Assets". As on March 31, 2009,
(F) Capital to Risk Assets Ratio (CRAR):
there were no events or changes in circumstances which indicate any impairment in the
assets. As on 31.03.2009 31.03.2008
29. Movement in Provisions, in terms of Accounting Standard-29, issued by The Institute of A. Capital
Chartered Accountants of India (ICAI) - "Provisions, Contingent Liabilities and Contingent
Assets" is given as under: (a) Capital to Risk Assets Ratio (CRAR) 19.7% 17.4%
(Rs. crore) (i) Core CRAR 14.5% 12.8%
Opening Addition/ Deduction/ Closing (ii) Supplementary CRAR 5.2% 4.6%
Balance Transfer Transfer Balance (b) Subordinated debt raised, outstanding
Leave Encashment 5.55 2.80 – 8.35 as Tier II Capital (Rs. crore) – –
Income Tax 270.96 111.37 – 382.33 (c) Risk-weighted assets (Rs. crore)
Fringe Benefit Tax 1.36 4.77 – 6.13 (i) On-Balance Sheet Items 11,729.62 8,612.27
Assets 4,894.09 105.27 723.67 4275.69 (ii) Off-Balance Sheet Items 412.72 205.69

40
 Annual Report 2008-09
(G) Exposure to Real Estate Sector: (Rs. crore) (I) Details of Loan Assets subjected to Restructuring: (Rs. crore)

Category 31.03.2009 31.03.2008 As at 31.03.2009 31.03.2008

a) Direct Exposure: CDR Non-CDR CDR Non-CDR
Standard 39.10 48.63 – 121.65
(i) Residential Mortgages-
Sub-Standard – 37.77 – –
Lending fully secured by mortgages on
residential property that is or will be Doubtful – – – 151.01
occupied by the borrower or that is rented Total 39.10 86.40 – 272.66
(Individual housing loans up to Rs.15 lakh (J) Assets sold to Securitisation Company/Reconstruction Company: (Rs. crore)
may be shown separately) – –
(ii) Commercial Real Estate- Particulars 31.03.2009 31.03.2008
Lending secured by mortgages on commercial 1. Number of Accounts 7 10
real estate (office building, retail space, 2. Aggregate outstanding of accounts sold to SC/RC 427.79 373.88
multipurpose commercial premises, 3. Aggregate consideration 105.09 136.28
multi-family residential buildings, 4. Additional consideration realized in respect
multi-tenanted commercial premises, industrial of accounts transferred in earlier years – –
or warehouse space, hotels, land acquisition, 5. Aggregate gain/(loss) over net book value – –
development and construction, etc.). Exposure
would also include non-fund based (NFB) limits 76.99 – (K) Details of Non-performing financial assets purchased: (Rs. crore)
(iii) Investments in Mortgage Backed Securities (MBS) Particulars 31.03.2009 31.03.2008
and other securitised exposures: – –
1. (a) Number of accounts purchased during the year 3 –
a) Residential
(b) Aggregate Outstanding (Rs. crore) 19.85 –
b) Commercial Real Estate
b) Indirect Exposure: 2. (a) Of the above number of accounts
Fund based and non-fund based exposures restructured during the year – –
on National Housing Bank (NHB) and (b) Aggregate Outstanding – –
Housing Finance Companies (HFCs) – –
(L) Details of Non-performing financial assets sold: (Rs. crore)
(H) Maturity Pattern of assets and liabilities: Particulars 31.03.2009 31.03.2008
(Rs. crore) Number of accounts sold during the year 5 14
1 Day to Over Over Over Over Over Over Over Total Aggregate outstanding 35.75 268.92
30/31 1 Mth to 2 Mths to 3 Mths to 6 Mths to 1 Yr to 3 Yrs to 5 Years Aggregate consideration received (Rs. crore) 6.18 322.61
Days 2 Mths 3 Mths 6 Mths 1 Year 3 Years 5 Years
31. Total value of outstanding Currency Swaps was USD 9.45 million against INR and
Liabilities
EUR 40.80 million against USD (Previous Year - US$ 11.5 million against INR and
Borrowings EUR 29.9 million against USD) equivalent to Rs.323.98 crore (Previous Year - Rs.236.25
from Banks 3.00 19.53 4.25 42.40 222.88 477.23 730.03 2,655.09 4,154.41 crore), whereas total value of outstanding Forex Deals other than Currency Swaps
Market was USD 3.5 million against INR and EUR 16 million against USD equivalent to
Borrowings 32.30 27.06 47.20 50.20 296.66 939.19 1,090.12 2,328.61 4,811.34 Rs.124.03 crore (Previous Year - USD 10 million and EUR 20 million).
32. Foreign Currency exposure that is not hedged by derivative instrument or otherwise
Total 35.30 46.59 51.45 92.60 519.54 1,416.42 1,820.15 4,983.70 8,965.75
is USD 0.01 million and EUR 0.02 million, equivalent to Rs.0.16 crore.
Assets
33. Previous year figures have been re-grouped/re-arranged wherever necessary, to
Advances 108.08 34.37 144.25 430.82 616.33 1,726.61 770.19 3,252.14 7,082.79
conform to current year presentation.
Investments 103.60 21.63 20.95 115.08 21.79 151.15 117.87 3,590.75 4,142.82
34. Balance Sheet abstract and Company’s General Business Profile as per Part IV of
Total 211.68 56.00 165.20 545.90 638.12 1,877.76 888.06 6,842.89 11,225.61 Schedule VI of the Companies Act, 1956 enclosed as Appendix.

Signatories to all Schedules I to XIX

In terms of our report of even date For and on behalf of Board

For RAY & RAY
Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director

ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Place: New Delhi Executive Director Chief Finance Officer Chief General Manager Company Secretary
Dated: June 27, 2009

41
 Annual Report 2008-09

Details of Investments Purchased and Sold/Redeemed Annexure

MUTUAL FUNDS (Rs. crore)

Name of the Scheme No. of Units Face Value Amount

AIG India Liquid Fund - Super Institutional - Growth 1,281,356.72 1000 144.62
AIG India Treasury Plus Fund - Super Institutional Growth 7,407,412.18 10 7.76
Bharti AXA Liquid Fund Super Institutional Plan Growth 3,588,413.10 1000 372.7
Birla Sun Life Cash Plus - Instl. Prem. - Growth 404,126,357.35 10 557.16
Canara Robeco Liquid Super Institutional Growth Fund 1,057,139,491.19 10 1118.49
DBS Chola Liquid Institutional Plus Cumulative 11,804,964.95 10 19.80
DBS Chola Liquid Super Institutional Plan Cumulative 181,284,561.89 10 215.26
DBS Chola Short Term Floating Rate Cumulative 47,403,423.14 10 57.75
DSP BlackRock Cash Manager Fund Institutional Plan - Growth 445,049.71 1000 50.01
DSP BlackRock Cash Plus Fund Growth Institutional Plan - Growth 198,871.31 1000 22.02
DSP BlackRock Money Manager Fund - Institutional Plan - Growth 176,416.36 1000 20.06
DSP BlackRock Liquidity Fund - Institutional Plan - Growth 170,387.24 1000 20.00
DWS Insta Cash Plus Fund Super Institutional Plan - Growth 485,875,095.00 10 545.7
Fidelity Cash Fund Super Institutional Growth 414,609,333.29 10 490.1
Fidelity Liquid Plus Fund Super Institutional Growth 9,568,425.53 10 10.03
Fortis Money Plus Institutional Growth 38,129,501.26 10 50.09
Fortis Overnight Institutional Plus Growth 276,371,637.75 10 300.25
HDFC Liquid Fund Premium Plan Growth 287,736,124.55 10 495.95
ICICI Prudential Institutional Liquid Plan - Super Institutional Growth 347,598,700.21 10 445.26
ICICI Prudential Sweep Cash Option - Cumulative 49,517,565.99 10 60.03
IDFC Cash Fund - Super Inst Plan C - Growth 207,543,054.32 10 218.35
IDFC Liquid Plus Fund - Treasury Plan - Super Inst Plan C - Growth 49,360,101.84 10 50.39
IDFC Money Manager Fund - Treasury Plan - Super Inst Plan C - Growth 95,258,475.98 10 98.55
ING Liquid Fund Super Institutional - Growth Option 42,380,458.27 10 51.48
JM High Liquidity Fund Super Institutional Plan Growth 327,654,703.50 10 446.17
JP Morgan India Liquid Fund - Super Inst. Growth Plan 212,973,533.37 10 234.64
JP Morgan India Treasury Fund - Super Inst. Growth Plan 88,918,981.84 10 50.98
Lotus India Liquid Fund Super Institutional Growth 101,526,706.56 10 117.66
Mirae Assets Liquid Fund - Super Institutional Plan Growth Plan 304,106.75 1000 30.78
Principal Cash Management Fund Liquid Option Inst. Prem. Plan - Growth 326,873,165.01 10 442.17
Principal Floating Rate Fund SMP - Insti Option - Growth Plan 24,985,869.21 10 32.51
Reliance Liquid Fund - Cash Plan - Growth Option - Growth Plan 103,889,211.15 10 144.7
Reliance Liquid Fund - Treasury Plan - Institutional Option - Growth Option - Growth Plan 158,713,028.96 10 332.96
Reliance Liquidity Fund - Growth Option 44,873,533.17 10 57.22
Reliance Money Manager Fund - Institutional Option - Growth Plan 1,279,202.56 1000 151.32
Religare Liquid Fund - Super Institutional Growth 57,995,363.49 10 69.95
SBI - Magnum Insta Cash Fund - Cash Option 423,073,216.49 10 816.52
SBNPP Liquid Plus Super Inst. Growth 42,067,331.97 10 53.81
SBNPP Money Fund Super Inst. Growth 108,422,571.29 10 196.54
Standard Chartered Liquidity Manager - Plus - Growth 86,150.06 1000 10.02
Tata Floating Rate Short Term Inst. Plan - Growth 96,004,682.67 10 122.8
Tata Liquid Super High Inv. Fund - Appreciation 2,660,535.88 1000 425.53
Templeton India Treasury Management Account Super Institutional Plan Growth 5,479,591.19 1000 699.4
UTI Liquid Cash Plan Institutional - Growth Option 4,227,193.75 1000 543.3
UTI - Liquid Plus Fund Institutional Plan (Growth Option) 436,447.88 1000 50.33
UTI Money Market Fund - Growth Plan 270,476,195.60 10 652.61
UTI Treasury Advantage Fund - Institutional Plan (Growth Option) 2,271,281.52 1000 265.33

42
 Annual Report 2008-09
Annexure Contd.
EQUITY SHARES (Rs. crore)
Name of the Scheme No. of Units Face Value Amount

Adlabs Films Limited 1,575 5 0.08

Air Deccan Limited 850 10 0.01
Andhra Bank 4,66,900 10 2.41
Alstom Projects India Limited 35,200 10 1.51
Axis Bank Limited 13,500 10 0.86
Bajaj Hindustan Sugar and Industries Limited 25,000 1 0.19
Bank of Baroda 4,89,300 10 12.38
Bank of India 1,15,900 10 3.31
Bharti Airtel Limited 35,000 10 2.27
Canara Bank 1,92,800 10 3.27
Chambal Fertilisers and Chemicals Limited 1,75,000 10 0.71
DLF Limited 70,000 2 1.39
Essar Oil Limited 1,59,556 10 1.34
Housing Development Finance Corporation Limited 5,000 10 0.72
HDFC Bank Limited 10,000 10 0.98
Hindalco Industries Limited 1,59,772 1 0.68
Hindustan Oil Exploration Limited 1,10,400 10 1.48
Infosys Technologies Limited 5,000 5 0.66
Indian Overseas Bank 44,250 10 0.40
ITC Limited 50,000 1 0.87
IVRCL Infrastructure & Projects Limited 1,40,000 2 1.59
JSW Steel Limited 1,74,625 10 5.23
Larsen & Toubro Limited 25,500 2 1.63
ONGC Limited 67,500 10 6.21
Oriental Bank of Commerce 1,54,800 10 2.03
Punj Lloyd Limited 2,30,250 2 2.26
Reliance Capital Limited 77,928 10 4.65
Reliance Industries Limited 32,600 10 6.16
Reliance Communications Limited 15,000 10 0.22
Reliance Petroleum Limited 10,000 10 0.08
State Bank of India 2,24,188 10 27.87
Siemens India Limited 62,000 2 1.53
Syndicate Bank 1,14,000 10 0.57
Tata Steel Limited 1,11,188 10 3.95
TVS Motor Company Limited 32,450 1 0.11
Union Bank of India 2,56,200 10 3.59

GOVERNMENT SECURITIES

Particulars No. of Units Face Value (Rs.) Amount

6.05% G Sec 2019 1,500 1,00,000 15.21

7.95% G Sec 2032 500 1,00,000 5.45
7.99% G Sec 2017 3,500 1,00,000 36.52
8.24% G Sec 2018 2,000 1,00,000 23.16

43
 Annual Report 2008-09

Appendix
BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL PROFILE
as per Part IV of Schedule VI to the Companies Act, 1956
I. Registration details

Registration No. 5 5 - 5 3 6 7 7 State Code 5 5

Balance Sheet Date 3 1 0 3 0 9

II. Capital Raised during the Year (Amount in Rs. Crore)

Public Issue Rights Issue

N I L N I L

Bonus Issue Private Placement

N I L N I L

III. Position of Mobilisation and Deployment of Fund (Amount in Rs. Crore)

Sources of Funds Total Liabilities Total Assets

1 4 8 8 2 - 5 7 1 4 8 8 2 - 5 7

Paid-up Capital Reserves & Surplus

1 1 0 8 - 2 9 2 6 3 2 - 4 7

Secured Loans Unsecured Loans

N I L 9 6 7 3 - 7 8

Applications of Funds Net Fixed Assets Investments

8 8 0 - 5 7 4 0 3 8 - 7 6

Net Current Assets * Misc. Expenditure

6 7 6 8 - 9 0 N I L

Accumulated Losses Deferred Tax Asset

N I L 1 7 2 6 - 3 1

* Includes Rs. 7,019.90 crore by way of Term Loans to Industrial Concerns/Other Institutions

IV. Performance of the Company (Amount in Rs. Crore)

Turnover Total Expenditure

1 4 8 4 - 5 2 8 8 8 - 4 2

Profit Before Tax & Exceptional Items Profit After Tax & Exceptional Items

1 0 1 0 - 2 3 6 5 7 - 1 5

Earnings Per Share Rs. Dividend rate %

8 . 5 5 8 . 0 0

V. Generic Names of Three Principal Products/Services of the Company (As per Monetary Terms)

Item Code No. (ITC Code) Product Description

NOT APPLICABLE PROJECT FINANCING

Item Code No. (ITC Code) Product Description

NOT APPLICABLE FINANCIAL SERVICES

Item Code No. (ITC Code) Product Description

NOT APPLICABLE INVESTMENTS

44
 Annual Report 2008-09
Statement pursuant to Section 212 of the Companies Act, 1956
Relating to Subsidiary Companies
Name of the IFCI Venture IFCI Financial IFCI Infrastructure IFCI Factors MPCON
Subsidiary Company Capital Funds Ltd Services Ltd Development Ltd Ltd Ltd

1. Financial Year of the Subsidiary March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009 March 31, 2009
Company ended on

2. (a) Issued, Subscribed and Paid 3,41,10,505 Equity 90,73,088 Equity 22,86,30,902 Equity 7,93,57,700 Equity 5,268 Equity
up capital of the Subsidiary Shares of Shares of Shares of Shares of Shares of
Company Rs.10/- each Rs.10/- each Rs.10/- each Rs.10/- each Rs.1,000/- each

(b) Extent of interest of IFCI in 3,22,60,505 Equity 69,03,188 Equity 22,86,30,902 Equity 7,91,54,700 Equity 3,480 Equity
capital of the Subsidiary Shares of Rs.10/- Shares of Rs.10/- Shares of Rs.10/- Shares of Rs.10/- Shares of
each (94.58%) each (76.08%) each (100%) each (99.74%) Rs.1,000/-
each (66.06%)
3. Net aggregate amount of
Profits/Losses of the
Subsidiary so far as it
concerns the Members of
IFCI and is not dealt with in
the Accounts of IFCI
(a) The Financial Year ended
March 31, 2009 (Rs. crore) 2.39 0.14 0.49 2.77 0.35
(b) For the previous Financial
Years of the Subsidiary
since it became Subsidiary
of IFCI (Rs. crore) 6.66 4.87 0.01 Nil Nil
4. Net aggregate amount of
Profits/Losses of the
Subsidiary so far as dealt
with or provisions made for
those losses in the
Accounts of IFCI
(a) The Financial Year ended
March 31, 2009 (Rs. crore) Nil Nil Nil Nil 0.01
(b) For the previous Financial
Years of the Subsidiary
since it became Subsidiary
of IFCI (Rs. crore) 0.90 2.72 Nil Nil Nil

For and on behalf of Board

PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN

Chairman of the Board Director Director

USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN

Director Director Director Director

K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL

Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

45
 IFCI Limited (Consolidated Financial Statements)
Auditors’ Report
TO THE BOARD OF DIRECTORS
IFCI LIMITED
We have examined the attached Consolidated Balance Sheet of
IFCI Limited and its subsidiaries and associates (the IFCI Group)
as at March 31, 2009, the consolidated Profit and Loss Account
and the consolidated Cash Flow Statement for the year ended on
that date, annexed thereto. These financial statements are the
responsibility of the Company’s management. Our responsibility
is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan
and perform the audit to obtain reasonable assurance about
whether the financial statements are prepared, in all material
respects, in accordance with an identified financial reporting
framework and are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statements. We believe that our audit provides a reasonable basis
for our opinion.
In respect of the financial statements of certain subsidiaries and
associates, we did not carry out the audit. These financial
statements have been audited by other auditors whose reports have
been furnished to us, and our opinion, insofar as it relates to the
amounts included in respect of the subsidiaries and associates is
based solely on the reports of the other auditors. The details of
assets, revenues and net cash inflows in respect of these
subsidiaries and the net carrying cost of investment and current
year share of profit in respect of these associates, to the extent to
which they are reflected in the consolidated financial statements
are given below:
AUDITED BY OTHER AUDITORS:
(Rs. crore)
Total assets Total revenues Net cash inflows
Subsidiaries 494.75 35.23 67.38
Net carrying cost Current year
of investment share of profit
Associates 90.34 12.10 – on that date.
We further report that in respect of one associate, the un-audited
financial statements have been certified by management and have
been furnished to us, and in our opinion, in so far as it relates to
the amounts included in respect of the associate are based solely
on these certified financial statements.
Since the financial statements for the financial year ended
March 31, 2009, which were compiled by management of this
Company was not audited, any adjustments to their balances could
46
have consequential effects on the attached consolidated financial
statements. However, the size of this associate in the consolidated
position is not significant in relative terms. The details of the net
carrying cost of investment and current year share of profit in
respect of this associate, to the extent to which they are reflected
in the consolidated financial statements is given below:
CERTIFIED BY MANAGEMENT:
(Rs. crore)
Net carrying cost Current year
of investment share of profit
Associate 8.47 0.84
We report that, the consolidated financial statements have been
prepared by the Company in accordance with the requirements of
the Accounting Standard-21, “Consolidated Financial Statements”
and (AS)-23, “Accounting for Investments in Associates in
Consolidated Financial Statements” issued by The Institute of
Chartered Accountants of India and on the basis of the separate
audited/certified financial statements of the IFCI Group included
in the consolidated financial statements.
We report that on the basis of the information and according to the
explanations given to us, and on the consideration of the separate
audit report on individual audited financial statements of the IFCI
Group, we are of the opinion that the said consolidated financial
statements, read together with significant accounting policies in
Schedule XX and notes appearing thereon specifically Note No.
15 & 19 regarding pending approval of Central Government in
respect of payment of Managerial remuneration and loans given
to the relative of Managing Director without prior approval of
Central Government, give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a) in the case of the consolidated Balance Sheet, of the state of
affairs of the IFCI Group as at March 31, 2009;
(b) in the case of the consolidated Profit and Loss Account, of the
consolidated results of operations of the IFCI Group for the
year ended on that date; and
(c) in the case of the consolidated Cash Flow Statement, of the
consolidated cash flows of the IFCI Group for the year ended
For RAY & RAY
Chartered Accountants
Anil P Verma
Place: New Delhi Partner
Date : June 27, 2009 Membership No. 90408
 IFCI Limited (Consolidated Financial Statements)

Consolidated Balance Sheet as at March 31, 2009

(Rs. crore)
Schedule As at As at
No. March 31, 2009 March 31, 2008
I. SOURCES OF FUNDS
(1) Shareholders’ Funds
Share Capital I 1,108.29 1,190.32
Reserves and Surplus II 2,724.86 2,172.55
(2) Minority Interest
Share Capital 4.40 1.85
Reserves and Surplus 4.67 1.67
(3) Loan Funds (Unsecured)
Rupee Loans III 9,008.90 9,595.91
Foreign Currency Loans IV 631.29 627.08
TOTAL 13,482.41 13,589.38
II. APPLICATION OF FUNDS
(1) Fixed Assets V
Gross Block 1,108.50 1,200.00
Less: Depreciation 288.72 276.12
Net Block 819.78 923.88
Capital work-in-progress 70.96 54.31
(2) Investments VI 3,702.46 2,282.60
(3) Goodwill on consolidation 34.78 –
(4) Deferred Tax Assets 1,726.79 2,037.63
(5) Current Assets, Loans and Advances
Sundry Debtors VII 284.74 8.17
Cash & Bank Balances VIII 575.80 3,507.14
Other Current Assets IX 322.93 286.93
Loans to Assisted Concerns X 7,001.19 5,383.65
Other Loans & Advances XI 436.75 464.53
8,621.41 9,650.42
Less: Current Liabilities and Provisions
Current Liabilities XII 1,015.75 881.60
Provisions XIII 479.37 477.88
1,495.12 1,359.48
Net Current Assets 7,126.29 8,290.94
(6) Miscellaneous Expenditure to the extent XIV 1.35 0.02
not written off or adjusted
Significant Accounting Policies and Notes on Accounts XX
TOTAL 13,482.41 13,589.38

In terms of our report of even date For and on behalf of Board

For RAY & RAY
Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director
ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

47
 IFCI Limited (Consolidated Financial Statements)

Consolidated Profit & Loss Account for the Year Ended March 31, 2009
(Rs. crore)
Schedule For the For the
No. year ended year ended
March 31, 2009 March 31, 2008
I. INCOME
Income from Operations XV 1,432.22 1,968.26
Other Income XVI 80.97 147.87
TOTAL INCOME (A) 1,513.19 2,116.13
II. EXPENDITURE
Cost of Borrowings XVII 789.52 820.67
Payments to and provisions for employees XVIII 57.04 123.26
Establishment and Other Expenses XIX 51.07 31.14
Depreciation (Net of transfer from Revaluation Reserve) 8.12 7.01
Preliminary & preoperative expenses written off 2.28 –
TOTAL EXPENDITURE (B) 908.03 982.08
III. PROFIT BEFORE PROVISIONS/WRITE OFF (A-B) 605.16 1,134.05
IV. BAD AND DOUBTFUL LOANS & ADVANCES AND OTHER ASSETS
– Provision/Write-off 279.96 400.07
– Provision Reversal (693.98) (1,353.36)
V. PROFIT BEFORE EXCEPTIONAL ITEMS 1,019.18 2,087.34
Amount receivable from Govt. of India written off – (416.00)
VI. PROFIT BEFORE TAX 1,019.18 1,671.34
Provision for Taxation
– Income Tax 115.64 149.09
– MAT Credit Entitlement (74.72) (145.70)
– Deferred Tax Charge (Net) 310.55 644.73
– Fringe Benefit Tax 4.87 0.82
VII. PROFIT AFTER TAX 662.84 1,022.40
Add: Share in profit of Associates 10.11 6.30
Less: Goodwill for the year adjusted (10.11) (6.30)
Surplus/(Deficit) brought forward from Previous Year 26.41 (823.58)
Profit available for appropriation/(Loss) 689.25 198.82
VIII. APPROPRIATIONS
Reserve u/s 45IC of RBI Act 136.45 36.87
Transfer to Capital Redemption Reserve 82.03 21.36
Transfer to General Reserve 65.00 –
Proposed Dividend
– Equity 60.99 –
– Preference 4.37 97.25
Tax on Distributed Profits
– Equity 10.37 –
– Preference 0.74 16.93
Balance carried over to Balance Sheet 329.30 26.41
689.25 198.82
Basic Earnings per share of Rs.10.00 each (Rs.) 8.63 15.25
Diluted Earnings per share of Rs.10.00 each (Rs.) 4.61 9.09
Significant Accounting Policies and Notes on Accounts XX

In terms of our report of even date For and on behalf of Board

For RAY & RAY

Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director
ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

48
 IFCI Limited (Consolidated Financial Statements)

Consolidated Cash Flow Statement for the Year Ended March 31, 2009
(Rs. crore)
For the year ended For the year ended
March 31, 2009 March 31, 2008
A. CASH FLOW FROM OPERATING ACTIVITES
Net Profit/(Loss) before Tax & Exceptional Items 1,019.18 2,087.34
Adjustments for:
Depreciation 8.12 7.01
Prilimnary Expenses written off 2.28 –
Provision/write offs (414.02) (953.29)
Profit on Sale of Assets (37.57) (0.49)
(Increase)/decrease in Misc. Expenditure (3.61) (0.02)
Lease Equalisation 14.94 (429.86) 12.81 (933.98)

Operating Profit/(Loss) before Working Capital Changes 589.32 1,153.36

Adjustments for:
(Increase)/decrease in Current Assets (189.94) 1,291.72
Increase/(decrease) in Current Liabilities 63.56 (126.38) 34.88 1,326.60
Cash Flow before Exceptional Items 462.94 2,479.96
Exceptional Items – (416.00)
Income Tax Paid (115.64) (149.09)
Dividend Paid (3.63) (114.18)
Net cash from Operating Activities 343.67 1,800.69

B. CASH FLOW FROM INVESTING ACTIVITIES

Sale of/(Addition) to Investments (incl. Application Money) (1,556.13) (142.24)
Purchase of/Advance for Fixed Assets (including Leased Assets) (27.46) (4.23)
Sale proceed of Fixed Assets 48.38 0.72
Net cash used in/raised from Investing Activities (1,535.21) (145.75)

C. CASH FLOW FROM FINANCING ACTIVITIES

Loans borrowed (net of repayments) (582.80) (2,701.29)
Loans lent (net of repayments) (1,087.63) 1,705.34
Issue of Preference Shares (net of redemption) (82.03) (1.36)
Issue of Equity Shares – 123.73
Share Premium (net of expenses) 37.22 1,200.25
IDF/BRF/SWF (Net) 0.44 0.01
Net Cash from Financing Activities (1,714.80) 326.68
Net Change in Cash & Cash Equivalent (A+B+C) (2,906.34) 1,981.62

Opening Cash and Cash Equivalent 3,482.14 1,500.52

Closing Cash and Cash Equivalent 575.80 3,482.14

Increase/(Decrease) in Cash & Cash Equivalent (2,906.34) 1,981.62

Note: Figures for previous year have been regrouped, wherever considered necessary

In terms of our report of even date For and on behalf of Board

For RAY & RAY

Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director
ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

49
 IFCI Limited (Consolidated Financial Statements)

Schedules Forming Part of the Accounts

(Rs. crore)
SCHEDULE - I As at As at
SHARE CAPITAL March 31, 2009 March 31, 2008

AUTHORISED

150,00,00,000 (Previous Year - 150,00,00,000) Equity Shares of Rs.10/- each 1,500.00 1,500.00

150,00,00,000 (Previous Year - 150,00,00,000) Cumulative Redeemable

Preference Shares of Rs.10/- each 1,500.00 1,500.00

3,000.00 3,000.00

ISSUED

82,96,60,951 (Previous Year - 82,96,60,951) Equity Shares of Rs 10/- each 829.66 829.66

42,79,10,000 (Previous Year - 42,79,10,000) Cumulative Redeemable

Preference Shares of Rs.10/- each 427.91 427.91

SUBSCRIBED

76,37,30,197 (Previous Year - 76,37,30,197) Equity Shares of Rs.10/- each 763.73 763.73

42,79,10,000 (Previous Year - 42,79,10,000) Cumulative Redeemable

Preference Shares of Rs.10/- each 427.91 427.91

PAID UP

(A) EQUITY

76,24,13,497 (Previous Year - 76,24,13,497) Equity Shares of Rs.10/- each @ 762.41 762.41

TOTAL (A) 762.41 762.41

(B) PREFERENCE
1. 26,38,43,100 (Previous Year - 26,38,43,100) 0.10% Cumulative Redeemable Preference
Shares of Rs.10/- each (Redeemable at par on 02.08.2017 - Rs.38.84 crore,
on 15.09.2018 - Rs.93.00 crore, on 17.09.2018 - Rs.50.00 crore,
on 31.03.2019 - Rs.30.00 crore, on 31.10.2020 - Rs.2.00 crore,
on 01.03.2021 - Rs. 10.00 crore, on 02.03.2021 - Rs.30.00 crore,
on 03.03.2021 - Rs.8.00 crore and on 31.03.2021 - Rs.2.00 crore) 263.84 263.84

2. 8,20,33,450 (Previous Year - 16,40,66,900) 5% Cumulative Redeemable Preference

Shares of Rs.10/- each (Redeemable at par on 01.04.2009 - Rs.82.04 crore) 82.04 164.07

TOTAL (B) 345.88 427.91

TOTAL (A + B) 1,108.29 1,190.32

@ Of the above 20,25,00,000 Equity Shares of Rs.10/- each have been allotted as fully paid up, without payment being received in cash, in exchange for
shares of the erstwhile Industrial Finance Corporation of India.

SCHEDULE - II (Rs. crore)

RESERVES AND SURPLUS As at Additions/ Deduction/ As at
April 1, Transfers Transfers March 31,
2008# during the year during the year 2009
(A) Capital Reserve 0.86 – – 0.86
(B) Capital Redemption Reserve 29.01 82.03* – 111.04
(C) Debenture Redemption Reserve 5.00 – – 5.00
(D) Grant received from Government of India
(out of Interest Differential Fund in terms of KfW Agreement) 184.48 – – 184.48
(E) Securities Premium Account 1,210.23 37.22 – 1,247.45
(F) Special Reserve under Section 36(1)(viii) of the
Income Tax Act, 1961 for the period upto 31.03.97 1.74 – – 1.74
(G) Reserve u/s 45IC of RBI Act 36.87 136.45 – 173.32
(H) Revaluation Reserve 649.95 – 82.76 567.19
(I) Benevolent Reserve Fund 4.11 – – 4.11
(J) General Reserve 0.56 65.74 – 66.30
(K) Profit & Loss Account 30.63 337.40@ – 368.03
TOTAL # 2,153.44 658.84 82.76 2,729.52
Less: Minority Interests in Reserves and Surplus – – – 4.67
TOTAL RESERVES – – – 2,724.86
Previous year 885.30 1,310.27 21.35 2,174.22
Less: Minority Interests in Reserves and Surplus – – – 1.67
TOTAL RESERVES – – – 2,172.55
* Represents Capital Redemption Reserve credited out of Profit & Loss Account pursuant to redemption of Preference Shares during the year/earlier years
@ includes amount on account of consolidation
# includes opening balance of entities that became subsidiaries during the year (IFCI Factors & MPCON)

50
 IFCI Limited (Consolidated Financial Statements)
(Rs. crore)
SCHEDULE - III As at As at
UNSECURED LOANS - RUPEE March 31, 2009 March 31, 2008
(A) OPTIONALLY CONVERTIBLE DEBENTURES
(i) 9.75% Govt. of India - Redeemable on 30.10.2021 400.00 400.00
SUB - TOTAL ‘A’ 400.00 400.00
(B) NON-CONVERTIBLE DEBENTURES (NCDs)
(i) 6.00% IDBI – 100.00
(ii) 6.00% LIC - Redeemable on 28.12.2021 200.00 200.00
(iii) 6.00% SBI - Redeemable on 25.01.2022 200.00 200.00
(iv) 0.00% LIC - Redeemable on 01.04.2022 155.22 155.22
SUB - TOTAL ‘B’ 555.22 655.22
(C) BONDS
(a) Guaranteed by Government of India and redeemable at par
11.50% Bonds: Redemption - Rs.200 crore on 30.05.2009, Rs.150 crore on
19.09.2009, Rs.88 crore on 26.12.2009, Rs.180 crore on 26.06.2010,
Rs.150 crore on 24.09.2010, Rs.70 crore on 26.12.2010 and
Rs.180 crore on 19.08.2011 1,018.00 1,416.02
12.00% Bonds: Redemption - Rs.200 crore on 13.01.2012 and Rs.60 crore on 03.03.2012 260.00 260.00
7.79% Bonds: Redemption - 27.05.2012 102.21 102.21
6.46% Bonds: Redemption - 24.11.2012 179.77 179.77
6.29% Bonds: Redemption - 17.02.2013 15.43 15.43
7.23% Bonds: Redemption - 01.04.2012 25.87 25.87
5.30% Bonds: Redemption - 24.09.2013 195.50 195.50
8.41% Bonds: Redemption - 14.06.2018 133.85 –
7.28% Bonds: Redemption - 14.09.2017 176.86 176.86
7.96% Bonds: Redemption - 08.10.2017 176.43 176.43
7.50% Bonds: Redemption - 28.01.2018 9.40 9.40
6.07% Bonds: Redemption - 13.12.2018 146.20 –
6.02% Bonds: Redemption - 28.02.2019 26.12 –
Interest accrued and due 2.51 3.61
SUB-TOTAL ‘C’ (a) 2,468.15 2,561.10
(b) Other Bonds
(i) Privately Placed Bonds carrying maturity of One to Twenty years from date of placement
(earliest redemption due on 01.04.2009). Put option applicable on Rs.756.85 crore 4,487.12 4,894.71
(ii) Privately Placed Zero Coupon Bonds carrying maturity of 10 years from the date of issue.
Unamortised Discount of Rs.0.14 crore (Previous Year - Rs.0.19 crore) 0.62 0.57
SUB-TOTAL ‘C’ (b) 4,487.74 4,895.28
(D) BORROWINGS
(i) Govt. of India under restructuring (to be issued in the form of
0.1% Optionally Convertible Debentures (redeemable on 28.03.2023),
with a right of recompense on par with other stakeholders) 523.00 523.00
(ii) Banks and FIs 425.00 425.00
(iii) Under Interest Differential Fund 23.13 23.13
(iv) Interest accrued and due on above 20.10 17.24
(v) Others (Put Option available on Rs.30 crore) (Rs.6.41 crore secured against FDRs) 75.88 36.53
SUB-TOTAL ‘D’ 1,067.11 1,024.90
(E) FUNDS PLACED WITH THE CORPORATION
(a) Jute Development Fund (placed by Govt. of India) 3.90 3.57
(b) Employees’ Provident Fund 22.02 50.86
(c) Staff Welfare Fund 4.76 4.98
SUB-TOTAL ‘E’ 30.68 59.41
TOTAL {(A+B+C(a)+C(b)+D+E)} 9,008.90 9,595.91
Bonds, Debentures & Borrowings repayable within one year 745.43 661.91

SCHEDULE - IV
UNSECURED LOANS - FOREIGN CURRENCIES
BORROWINGS (Long Term)
(A) Loans Guaranteed by Government of India
Lines of Credit (Kreditanstalt-fur-Wiederaufbau) 608.15 594.43
(B) Other unsecured loans –
Lines of Credit 23.14 32.65
TOTAL 631.29 627.08
Loans repayable within one year 35.36 33.26

51
 IFCI Limited (Consolidated Financial Statements)

SCHEDULE - V
FIXED ASSETS
(Rs. crore)
PARTICULARS GROSS BLOCK DEPRECIATION NET BLOCK
As at Additions Deductions/ As at As at For the Deductions/ As at As at As at
01.04.2008 $ Transfers 31.03.2009 01.04.2008 $ year Transfers 31.03.2009 31.03.2009 31.03.2008
Freehold Land @ 70.77 – 35.70 35.07 – – – – 35.07 70.77
Leasehold Land @ 207.85 – – 207.85 8.79 3.26 – 12.05 195.80 199.06
Plant & Machinery 24.57 – 5.64 18.93 12.23 1.16 3.07 10.32 8.61 12.34
Buildings @ 596.35 0.39 48.55 548.19 59.14 9.79 6.64 62.29 485.90 537.21
Furniture & Fixtures 15.60 4.31& 5.17 14.74 11.06 1.04 3.77 8.33 6.41 4.54
Office Equipments 21.73 2.62 7.18 17.17 16.43 1.88 6.54 11.77 5.40 5.30
Electrical Installations 16.01 0.98 4.33 12.66 10.05 0.62 2.73 7.94 4.72 5.96
Vehicles 0.49 2.51 0.11 2.89 0.27 0.12 0.11 0.28 2.61 0.22
Leased Assets – Plant &
Machinery 251.00 – – 251.00 251.00 – – 175.74 * 75.26 90.20
TOTAL 1,204.37 10.81 106.68 1,108.50 368.97 17.87 22.86 288.72 819.78 925.60
Capital work-in-progress
including advances # 54.31 16.65 70.96 70.96 54.31
GRAND TOTAL 1,258.68 27.46 106.68 1,179.46 368.97 17.87 22.86 288.72 890.74 979.91
Previous Year 1,212.17 58.37 16.23 1,254.31 365.09 17.15 15.92 276.12 978.19
& Includes Art Works - Rs.1.36 crore
$ Includes opening balance of entities that became subsidiaries during the year (IFCI Factors & MPCON)
* Leased Assets (Accumulated Depreciation) is net of Rs.75.26 crore on account of Lease Adjustment (Previous Year–Rs.90.20 crore)
# Advances include Rs.60.51 crore on account of land (Previous Year–Rs.54.06 crore)
@ includes on account of revaluation:
– Freehold Land – Gross block as on 01.04.08 – Rs.69.02 crore; Deductions – Rs.35.28 crore; as on 31.03.09 – Rs.33.74 crore
– Leasehold Land – Gross block as on 01.04.08 – Rs.186.24 crore; Deductions – Rs. Nil; as on 31.03.09 – Rs.186.24 crore; Depreciation for the year – Rs.3.01 crore
(Previous Year–Rs.3.01 crore)
– Building – Gross block as on 01.04.08 – Rs.414.97 crore; Deductions – Rs.39.45 crore; as on 31.03.09 – Rs.375.52 crore; Depreciation for the year – Rs.6.74 crore
(Previous Year–Rs.7.13 crore)
Note: Deductions of Land & Building represent transfer to IIDL (Subsidiary Company)

SCHEDULE - VI
INVESTMENTS (TRADE)
(Rs. crore)
As at March 31, 2009 As at March 31, 2008
(1) LONG TERM INVESTMENTS No. of Amount No. of Amount
(A) QUOTED Shares/Units Shares/Units
1. Equity Shares
(a) Associates
– Tourism Finance Corporation of India Ltd 25,422,365 57.80 21,386,771 50.44
Add/(Deduct):
Accumulated share in profit at the beginning of the year 19.94 23.16
Adj. on account of fresh investment & profit for the year 11.88 (3.23)
89.62 70.37
(b) Assistance under development financing 618.83 392.75
(c) Others 147.71 40.77
856.16 503.89
2. Bonds
(a) Unit Trust of India - US 64 – – 1,545,655 20.87
(b) LIC Housing Finance Ltd 300 30.66 – –
(c) HDFC Ltd (9.32%) 100 10.00 – –
(d) HDFC Ltd (9.2%) 3,000 300.00 – –
(e) Power Finance Corporation Ltd 100 10.13 – –
350.79 20.87
3. Units
Investment in UTI Balance Fund 500,000 0.51 500,000 0.51
0.51 0.51
4. Government Securities
7.99% Government Security (Maturity Date – 09.07.2017) 4.94 –
4.94 0.00
(B) UNQUOTED
1. Equity Shares
(a) Associates
(i) Assets Care Enterprise Ltd 7,328,334 7.33 3,483,333 3.48
Add/(Deduct):
Accumulated share in profit at the beginning of the year 0.30 0.05
Adj. on account of fresh investment & profit for the year 0.84 0.25
8.47 3.78

52
 IFCI Limited (Consolidated Financial Statements)
SCHEDULE - VI (Contd.) (Rs. crore)
As at March 31, 2009 As at March 31, 2008
No. of Amount No. of Amount
Shares/Units Shares/Units
(ii) IFCI Factors Ltd 9,968,750 6.86
Add/(Deduct):
Accumulated share in profit at the beginning of the year – 4.85
Adj. on account of fresh investment & profit for the year – 0.29
12.00
(iii) Himachal Consultancy Organisation 735 0.07
Add/(Deduct):
Accumulated share in profit at the beginning of the year 0.24 –
Adj. on account of fresh investment & profit for the year 0.08 –
0.39
(iv)HARDICON Ltd 2,600 0.03
Add/(Deduct):
Accumulated share in profit at the beginning of the year 0.03 –
Adj. on account of fresh investment & profit for the year 0.08 –
0.14
(v) North India Technical Consultancy Organisation Ltd 2,600 0.06
Add/(Deduct):
Accumulated share in profit at the beginning of the year 0.07 –
Adj. on account of fresh investment & profit for the year 0.06 –
0.19
(b) Assistance under development financing 433.31 201.82
2. Preference shares 545.44 436.89
3. Debentures/Bonds 844.33 792.52
4. Security Receipts 150.27 166.53
5. Government Securities
(a) Investment in 9.75% GoI (IFCI Ltd) Special Security, 2021 400.00 400.00
(b) Investments in Govt. Securities and Treasury Bills 0.01 0.01
6. Application Money
(a) Equity shares
(i) Subsidiaries
– IFCI Financial Services Ltd (under reconciliation) 0.02 0.02
(ii) Others 79.94 142.27
(b) Preference Shares 15.61 68.81
(c) Debentures 2.47 6.39
7. Units
(a) Units of UTI VECAUS – III (Fund) 775,000 7.75 875,000 8.75
(b) Units of IACM–1–D (Fund promoted by IVCF) 41,400,000 41.40 – –
(c) Investment in Venture Funds GIVF 8.00 –
(d) Investment in Venture Funds IEDF 1.51 –
TOTAL LONG TERM INVESTMENTS 3,751.65 2,765.06
(2) CURRENT INVESTMENTS
(A) QUOTED
1. Equity Shares
(a) ABB Ltd 50,000 2.14 11,811 1.41
(b) ACC Ltd 250,000 14.84 44,180 4.38
(c) Bajaj Hindustan Sugar & Industries Ltd 50,000 0.24 – –
(d) Bajaj Holdings & Investment Ltd – – 18,262 2.25
(e) Bharti Airtel Ltd 50,000 3.13 35,000 3.04
(f) Chambal Fertilisers and Chemicals Ltd – – 200,000 1.26
(g) DLF Ltd 50,000 0.89 49,000 3.92
(h) ICICI Bank Ltd 100,000 3.41 15,000 1.66
(i) Infosys Technologies Ltd 5,000 0.68 – –
(j) ITC Ltd – – 90,000 1.78
(k) Larsen & Toubro Ltd 304,246 20.59 – –
(l) ONGC Ltd – – 26,713 2.71
(m)Punj Llyod Ltd – – 147,875 6.71
(n) Reliance Communications Ltd 800,000 14.05 180,000 11.34
(o) Reliance Industries Ltd 200,000 30.91 30,000 7.61
(p) Siemens India Ltd 420,000 11.13 32,000 2.53
(q) State Bank of India 300,000 32.27 60,459 13.97
(r) Steel Authority of India Ltd 50,000 0.50 – –
(s) Tata Iron & Steel Company Ltd 240,000 5.05 20,000 1.62
(t) Tata Motors Ltd – – 59,676 4.28
(u) Hindalco Industries Ltd 1,000 0.01
(v) TV 18 1,000 0.01
(w)Investment by IFCI Financial Services Ltd – 0.13
139.98 70.47

53
 IFCI Limited (Consolidated Financial Statements)
SCHEDULE - VI (Contd.) (Rs. crore)
As at March 31, 2009 As at March 31, 2008
No. of Amount No. of Amount
Shares/Units Shares/Units
2. Bonds
(a) LIC Housing Finance Ltd – – 300 30.66
(b) HDFC Ltd (9.32%) – – 100 10.00
(c) HDFC Ltd (9.2%) – – 3,000 300.00
(d) Power Finance Corporation Ltd – – 100 10.13
0.00 350.79
3. Government Securities
(a) 7.99% Government Security (Maturity Date – 09.07.2017) 10.68 20.41
(b) 6.05% Government Security (Maturity Date – 02.02.2019) 84.66 –
95.34 20.41
4. Units of Mutual Funds
(a) AIG Mutual Fund – – 15,458,687 16.15
(b) Birla Mutual Fund 11,572,891 19.25 – –
(c) Bharti Axa Mutual Fund 44,319 4.70 – –
(d) Canara Reboco Liquid Fund 93,505,133 100.00 – –
(e) DBS Chola Mutual Fund – – 30,488,549 50.00
(f) IDFC Mutual Fund 47,118,069 48.75 – –
(g) JP Morgan Mutual Fund 43,996,927 50.00 9,601,444 10.00
(h) Principal PNB Mutual Fund 10,885,581 14.95 – –
(i) SBI Mutual Fund 50,908,980 100.00 – –
(j) UTI Mutual Fund – – 76,600 10.20
337.65 86.35
(B) UNQUOTED
1. Equity Shares
(a) Bajaj Auto Ltd – – 18,262 0.88
(b) Bajaj Finserv Ltd – – 18,262 0.85
0.00 1.73
2. Pass Through Certificates
ICICI Bank 142.70
142.70 0.00
3. Commercial Paper
(a) Reliance Capital Ltd 200 9.72 – –
(b) Adlabs Films Ltd 1,000 48.77 – –
(c) IVRCL Infrastructure Projects Ltd 1,000 48.84 – –
107.33 0.00
4. Certificate of Deposit
Syndicate Bank 2,500 24.13 – –
24.13 0.00
TOTAL CURRENT INVESTMENTS 847.13 529.75
TOTAL 4,598.78 3,294.81
Less: Provision for Diminution in the value of Investments 896.32 1,012.21
Long Term 888.79 990.57
Current - Mark to Market 7.53 21.64
TOTAL 3,702.46 2,282.60
QUOTED INVESTMENTS
(1) Total Book Value 1,785.37 1,053.29
– Equity Shares 996.14 574.36
– Others 789.23 478.93
(2) Total Market Value 1,469.67 1,614.89
– Equity Shares 684.68 1,147.00
– Others 784.99 467.89
UNQUOTED INVESTMENTS
(1) Total Book Value 2,813.41 2,241.52
– Equity Shares 442.50 219.33
– Preference Shares 545.44 436.89
– Others 1,825.47 1,585.30
Note: Investments include Rs.33.52 crore (Previous Year – Rs.85.72 crore) in respect of equity shares which are subject to lock-in period
Investments include Rs.0.30 crore (Previous Year – Rs.31.90 crore) in respect of equity shares which are subject to restrictive covenants

Company-wise details in respect of investments in assisted concerns where Market Value is equal to or exceeds Rs.2 crore in the case of Quoted Investments
and where cost is equal to or exceeds Rs.2 crore in case of Unquoted Investments as included under items A (1) to (4) of Schedule - VI
(Rs. crore)
As on March 31, 2009 As on March 31, 2008
NAME OF THE COMPANY No. of Shares/ Book value No. of Shares/ Book value
Equity Shares – Quoted Debentures Debentures
Abhishek Industries Ltd – – 1,398,800 2.16
Ambuja Cements Ltd – – 500,000 3.00
Andhra Cement Company Ltd – – 1,000,000 1.00
Bartronics India Ltd 376,472 7.34 – –
Bharat Immunological & Biological Corporation Ltd 2,609,500 2.61 2,609,500 2.61
DCM Sriram Industries Ltd – – 187,457 2.39

54
 IFCI Limited (Consolidated Financial Statements)
Schedule - VI (Contd.) (Rs. crore)
As on March 31, 2009 As on March 31, 2008
NAME OF THE COMPANY No. of Shares/ Book value No. of Shares/ Book value
Equity Shares – Quoted Debentures Debentures
Diana Tea Ltd – – 2,000,000 0.98
Energy Development Corporation Ltd – – 500,000 0.50
Essar Oil Ltd – – 2,000,000 9.00
Facor Alloys Ltd – – 2,700,000 0.31
Garden Silk Mills Ltd 514,285 3.60 514,285 3.60
Gayatri Sugars Ltd – – 4,407,820 4.37
GIC Housing Finance Company Ltd 4,235,489 12.33 4,235,489 12.33
Givo Ltd – – 3,000,000 3.00
Gujarat Heavy Chemicals Ltd – – 562,455 0.56
Graphite India Ltd – – 445,300 0.36
Hindalco Industries Ltd 13,294,859 127.63 – –
HEG Ltd – – 85,000 –
Indian Acrylics Ltd 12,000,000 12.00 12,000,000 12.00
Indo Rama Synthetics Ltd 2,779,750 12.76 2,779,750 12.76
Indraprastha Medical Corporation Ltd 775,000 0.78 1,175,000 1.18
Infrastructure Development Finance Company Ltd 13,535,000 13.54 13,535,000 13.54
Ispat Industries Ltd 66,300,000 66.30 66,300,000 66.30
ITC Ltd – – 623,730 9.37
J K Lakshmi Cement Ltd 1,319,000 7.89 1,319,000 7.89
Jaiprakash Associates Ltd 250,000 0.30 250,000 0.30
Jayaswal Neco Ltd 2,476,734 2.48 2,476,734 2.48
Jaypee Hotels Ltd 683,800 1.67 683,800 1.67
JCT Electronics Ltd 38,117,700 17.67 – –
JCT Ltd 25,340,000 6.33 25,340,000 6.33
Jhagadia Copper Ltd – – 4,900,000 4.90
JSW Steel Ltd 1,099,958 65.23 981,583 15.71
K. G. Denim Ltd – – 1,479,756 2.34
Kanoria Chemicals & Industries Ltd – – 1,200,000 5.20
Kirloskar Ferrous Industries Ltd 3,565,000 3.57 3,565,000 3.57
Kothari Petrochemicals Ltd – – 3,292,500 3.29
Lloyds Steel Industries Ltd – – 4,632,114 12.65
Manali Petrochemicals Ltd – – 2,840,250 1.89
Mysore Cements Ltd 1,349,944 1.35 1,349,944 1.35
Mysore Paper Mills Ltd – – 4,504,386 4.50
Noida Toll Bridge Ltd 1,200,000 1.20 2,000,000 2.00
Pennar Industries Ltd 1,273,629 0.64 1,273,629 0.64
Power Trading Corporation Ltd 1,506,855 1.51 1,506,855 1.51
Reliance Capital Ltd – – 30,000 0.20
Ruchi Strips and Alloys Ltd 5,569,025 5.65 5,569,025 5.65
Saurashtra Cements Ltd – – 455,257 3.32
South Asian Petrochem Ltd – – 945,775 1.50
Southern Iron & Steel Ltd – – 2,901,375 17.99
Spel Semi Conductor Ltd – – 1,755,000 1.76
Sree Rayalaseema Alkalies & Allied Chemicals Ltd 17,000,000 17.00 17,000,000 17.00
SRF Ltd 584,000 3.82 584,000 3.82
Star Paper Mills Ltd 6,034,069 43.70 701,600 3.95
Sujana Universal Industries Ltd – – – –
Tinplate Company of India Ltd – – 564,000 2.76
Unimers (I) Ltd – – 1,843,042 1.64
Welspun India Ltd – – 6,034,069 43.70
Welspun Stahl Rohren Ltd – – 262,500 0.38
Welspun Syntex Ltd 7,950,000 31.60 – –
XL Telecom Ltd – – 500,000 0.25
Equity Shares – Unquoted
Blue Blends India Ltd 3,000,000 3.00 3,000,000 3.00
Clearing Corporation of India Ltd 2,000,000 2.00 2,000,000 2.00
Dewan Rubber Industries Ltd 1,200,000 6.60 1,200,000 6.60
Essar Steel Ltd 720,000 2.88 720,000 2.88
Hind Agro Industries Ltd 2,700,000 2.70 2,700,000 2.70
HPCL Mittal Energy Ltd 18,636,000 21.93 – –
India Paging Services Ltd 15,239,300 15.24 15,239,300 15.24
Indian Metals & Ferro Alloys Ltd – – 301,647 4.02
Ispat Profiles Ltd 13,161,250 13.16 13,161,250 13.16
Malvika Steel Ltd 3,188,300 12.26 3,188,300 12.26
Meta Copper & Alloys Ltd 9,042,000 9.04 9,042,000 9.04
Modern Syntex Ltd 2,422,798 6.97 2,422,798 6.97
National Stock Exchange Ltd 2,321,000 6.52 2,450,000 6.65
North Eastern Development Finance Corporation Ltd 10,000,001 10.00 10,000,001 10.00
Pertech Computers Ltd 500,000 3.00 500,000 3.00
Ritspin Synthetics Ltd 9,500,000 9.50 17,579,300 17.43
Samcor Glass Ltd 2,000,000 7.60 2,000,000 7.60
Securities Trading Corporation Ltd 337,400 4.58 337,400 4.58
Sidhartha Super Spinning Mills Ltd 4,000,000 4.00 4,000,000 4.00
Stock Holding Corporation Ltd 3,570,000 4.46 3,570,000 4.46
Surat Textile Mills Ltd 2,000,000 6.00 2,000,000 6.00
Tata Motors – DVR – A – Ordy 8,196,720 250.00 – –
Welspun Syntex Ltd – – 31,800,000 31.60
Preference Shares – Unquoted
Bellary Steel and Alloys Ltd 567,260 5.67 567,260 5.67
Bhaval Synthetics (I) Ltd 400,000 3.80 400,000 3.80
Blue Blends (India) Ltd 1,000,000 9.90 1,000,000 9.90

55
 IFCI Limited (Consolidated Financial Statements)
Schedule - VI (Contd.) (Rs. crore)
As on March 31, 2009 As on March 31, 2008
NAME OF THE COMPANY No. of Shares/ Book value No. of Shares/ Book value
Equity Shares – Quoted Debentures Debentures
Dhampur Sugar Mills Ltd 1,198,530 11.99 1,198,530 11.99
Essar Steel Ltd 22,116,599 22.12 22,116,599 22.12
Gangadharan Appliances Ltd 306,250 3.06 306,250 3.06
Gayatri Sugars Ltd 2,452,245 2.45 2,452,245 2.45
GPI Textiles Ltd 106,386,496 53.19 – –
Gujarat Poly AVX Electronics Ltd 209,000 2.09 209,000 2.09
IC Textiles Ltd 952,394 9.52 952,394 9.52
Ispat Industries Ltd 57,155,107 63.32 57,155,107 63.32
Jai Parabolic Springs Ltd 350,000 3.50 350,000 3.50
Jayaswal Neco Ltd – – 657,264 6.57
JCT Ltd 500,315 3.75 500,315 3.75
Jhagadia Copper Ltd 6,448,070 64.48 5,991,210 59.91
JSW Steel Ltd 21,262,362 20.17 15,723,089 15.72
Kalyanpur Cement Ltd 584,040 5.80 584,040 5.80
LML Ltd 2,150,912 21.51 2,150,912 21.51
Malwa Cotton Spinning Mills Ltd 1,724,610 17.25 1,724,610 17.25
Mangalore Refinery & Pertrochemicals Ltd 7,148,949 7.15 7,148,949 7.15
Meta Copper & Alloys Ltd 4,521,000 45.21 4,521,000 45.21
Nagarjuna Fertilisers Ltd 1,026,880 10.27 1,026,880 10.27
Oswal Spinning & Weaving Mills Ltd 99,730,160 9.97 99,730,160 9.97
Prag Bosimi Synthetics Ltd 2,614,577 26.15 2,614,577 26.15
Prudential Moali Sugars – – 400,000 2.00
Ritspin Synthetics Ltd – – 934,760 9.35
S Kumar Nationwide Ltd 1,372,790 12.22 1,372,790 12.22
Sauratshtra Chemical Ltd 1,046,700 10.47 1,046,700 10.47
Shree Satpuda Tapi Parisar SSK Ltd 9,178 4.59 9,178 4.59
Spectrum Power Generation Ltd 11,820,000 11.82 11,820,000 11.82
Suryalakshmi Cotton Mills Ltd 271,600 2.72 271,600 2.72
West Coast Paper Mills Ltd 6,500,000 65.00 – –
Western India Plywoods Ltd 923,270 9.23 923,270 9.23
Debentures – Unquoted
Ashima Ltd 2,400,000 16.00 2,400,000 16.00
Bharti Ventures Ltd 1,000 100.00 – –
C.T. Cotton Yarns Ltd 480,000 2.89 480,000 2.89
DCM Shriram Industries Ltd 898,000 3.45 898,000 4.84
DSL Enterprises Pvt Ltd 2,962 29.58 2,962 29.58
Emtex Industries Ltd 900,000 9.00 900,000 9.00
Essar Oil Ltd 2,631,500 26.88 2,631,500 26.88
Ganesh Benzoplast Ltd 74,663 7.47 74,663 7.47
Ginni Filaments Ltd 649,169 6.49 649,169 6.49
GTC Industries Ltd 1,000,000 4.77 1,000,000 6.52
Hind Agro Industries Ltd 1,175,000 5.88 1,175,000 7.64
Indo Rama Synthetics Ltd 11,000,000 4.81 11,000,000 8.47
Ispat Profiles Ltd 3,301,954 33.02 3,301,954 33.02
Jayaswal Neco Ltd – – 63,429 6.34
JCT Electronics Ltd 3,000,000 25.50 3,000,000 30.00
JCT Ltd 1,751,104 9.56 1,751,104 12.54
Kajaria Ceramics Ltd 1,000,000 4.84 1,000,000 6.72
Knitwear Technology Ltd – – 370,484 3.70
Krishna Lifestyle Technology Ltd 626,000 6.26 626,000 6.26
Lanco Kondapalli Power Ltd 3,750,000 5.13 3,750,000 9.54
Lloyds Steel Industries Ltd 5,000 38.72 5,105,000 101.00
Majestic Hotels Ltd 522,040 5.22 – –
Malanpur Steels Ltd 2,000,000 20.00 2,000,000 19.79
Mesco Pharmaceuticals Ltd 1,000,000 5.49 1,000,000 5.99
Modern Denim Ltd 1,750 7.50 1,750 7.50
Modern Syntex Ltd 9,014 43.75 9,014 50.00
Modern Terry Towel Ltd – – 1,750 10.30
Modern Thread Ltd 3,435 18.75 3,435 18.75
Mukund Ltd 2,500,000 22.08 2,500,000 23.13
Mysore Paper Mills Ltd 67,702 6.77 67,702 6.77
Nagarjuna Fertilizers & Chemicals Ltd 10,500,000 46.73 10,500,000 49.44
Navin Fluorine International Ltd 423,000 4.23 423,000 4.23
Pasupati Acrylon Ltd 1,000,000 4.00 1,000,000 9.00
Pentafour Products Ltd 28,000,000 2.80 28,000,000 2.80
Prag Bosimi Synthetics Ltd 3,585,978 41.76 3,585,978 41.76
Quipo Telecom Infrastructure Ltd 10,000,000 100.00 – –
Reliance Industries Ltd 1,636,306 16.36 1,636,306 16.36
Shamken Spinners Ltd 500,000 5.00 500,000 5.00
Sree Rayalaseema Alkalies & Allied Chemicals Ltd 3,547,949 31.04 3,547,949 35.48
Star Paper Mills Ltd – – 600,000 3.00
Sujana Steels Ltd 800,000 8.00 800,000 8.00
Sujana Universal Industries Ltd – – 1,200,000 12.00
Sun Polytron Industries Ltd 1,300 13.00 1,300 13.00
Uflex Ltd 3,279,117 32.79 3,279,117 32.79
Usha India Ltd 5,000,000 50.00 5,000,000 50.00
Videocon Industries Ltd 21 6.15 50 21.17
Disclosur in respect of Investments in assisted concerns where Market Value is less than Rs.2 crore in case of Quoted Investments and where cost is less than
Rs.2 corre in case of Unquoted Investments as Included under items A(1) to (4) of Schedule - VI
PARTICULARS As on March 31, 2009 As on March 31, 2008
No. of concerns 580 590
Book value 201.74 102.40
Market/Break value 115.54 100.35

56
 IFCI Limited (Consolidated Financial Statements)
(Rs. crore)
SCHEDULE - VII As at As at
SUNDRY DEBTORS March 31, 2009 March 31, 2008
(A) LEASE RENTAL RECEIVABLE
– Considered good – –
– Considered doubtful 27.21 39.79
Less: Provision (27.21) (39.79)
(B) OTHERS
– Considered good 284.74 8.17
– Considered doubtful 2.00 2.00
Less: Provision (2.00) (2.00)
TOTAL 284.74 8.17

SCHEDULE - VIII
CASH & BANK BALANCES
(A) Cash in hand (including postage stamps) 0.01 0.02
(B) Cheques on hand & under collection & remittances in transit 7.06 21.90
(C) Balances with Reserve Bank of India
– Current Account 0.47 0.04
(D) Balances with Scheduled Banks
– Current Account in India 9.97 10.67
– Deposit Account in India 543.70 3,394.06
– Current Account outside India 14.59 3.29
– Deposit Account outside India – 52.16
(E) Deposit placed with others – 25.00
TOTAL 575.80 3,507.14

SCHEDULE - IX
OTHER CURRENT ASSETS
(A) Accrued Income
(i) Interest and commitment charges on Loans 39.82 37.65
(ii) Interest on Investments 113.00 105.28
(iii) Other Income 24.67 143.89
(B) Assets acquired in settlement of dues & held for sale 0.07 0.07
(C) Stock–in–Trade 145.37 0.04
TOTAL 322.93 286.93

SCHEDULE - X
LOANS
(A) ASSISTED CONCERNS
(i) In Rupees & Foreign Currencies 9,866.42 8,706.69
(ii) Advance for Assets 115.72 79.08
(B) OTHER INSTITUTIONS 0.06 0.06
9,982.20 8,785.83
Less: Provision for bad and doubtful loans 2,981.01 3,402.18
TOTAL 7,001.19 5,383.65
Notes:
(1) The above amounts include interest and other charges accrued and due
(2) Classification of Loans
(i) Secured by Assets 8,437.80 8,639.92
(ii) Guaranteed by Central/State Govts. 1.76 1.78
(iii) Against Prom. Notes & Usance Bills accepted/Guaranteed by Banks 47.04 47.04
(iv) Against pledge of shares 1,398.51 –
(v) Unsecured {incl. Rs. Nil (Pevious Year - Rs. Nil) against Corporate Guarantees} 97.09 97.09
9,982.20 8,785.83
Note :
Out of the above
(i) Considered good 7,001.19 5,383.65
(ii) Considered doubtful 2,981.01 3,402.18
9,982.20 8,785.83

SCHEDULE - XI
OTHER LOANS & ADVANCES
(a) Advance Tax paid (net of provisions)
(i) Income Tax (including Tax deducted at source) 45.87 74.59
(ii) Interest Tax 6.30 6.30
(b) MAT Credit Entitlement 316.13 241.41
(c) Other Loans and advances
(i) Secured 10.06 8.58
(ii) Unsecured
– Considered good 43.31 57.82
– Considered doubtful 1.00 1.00
Less: Provision for doubtful debts (1.00) (1.00)
(d) Sundry Deposits 8.78 57.70
(e) Forward Deal Suspense 5.36 17.53
(f) Pre–paid Expenses 0.94 0.60
TOTAL 436.75 464.53

57
 IFCI Limited (Consolidated Financial Statements)
(Rs. crore)
SCHEDULE - XII As at As at
CURRENT LIABILITIES March 31, 2009 March 31, 2008
(a) Interest accrued but not due on bonds and borrowings 376.52 401.29
(b) Sundry Creditors
(i) Total outstanding dues to Micro & Small Enterprises – –
(ii) Total outstanding dues of creditors other than Micro & Small Enterprises 182.25 85.30
(c) Advance Receipts 2.00 0.73
(d) Other Liabilities 353.00 269.09
(e) Investor Education and Protection Fund* (to be credited by the following amounts)
(i) Unpaid Matured Deposits – 0.05
(ii) Unpaid Matured Debentures 99.07 122.21
(iii) Interest accrued on (i) to (ii) above 2.91 2.93
TOTAL 1,015.75 881.60
* As on 31.03.2009, no amount was due and outstanding for transfer to Investor Education and Protection Fund

SCHEDULE – XIII
PROVISIONS
(a) Assets 397.53 466.85
(b) Expenses 9.74 11.03
(c) Proposed Dividend 60.99 –
(d) Corporate Dividend Tax 11.11 –
TOTAL 479.37 477.88

SCHEDULE – XIV
MISCELLANEOUS EXPENDITURE
(to the extent not written off or adjusted)
Preliminary Expenditure 1.35 0.02
TOTAL 1.35 0.02

SCHEDULE – XV For the year ended For the year ended

INCOME FROM OPERATIONS March 31, 2009 March 31, 2008
(a) On Lending Operations (incl. funded interest) 789.18 882.05
(b) On Investment Operations
(i) Dividend (Gross)
– Long Term 27.14 23.03
– Current – 0.15
(ii) Interest (Gross) 142.86 63.72
(iii) Profit on sale of Shares/Units/Debentures (Net)
– Assistance under development financing – Long Term 94.23 615.50
– Investments – Long Term 31.36 32.69
– Investments – Short Term 4.85 3.38
(c) Leasing Operations
(i) Lease Rentals etc. 15.13 28.09
(ii) Lease Equalisation Account (14.94) (12.81)
(d) Business Services Fee and Commission (incl. guarantee commission) 50,27 10.47
(e) Interest/Income from treasury operations 262.42 267.84
(f) Exchange Fluctuation Gains/(Loss) (3.74) 2.17
(g) Provision/Write off/Liability no longer required written back* 33.46 51.98
TOTAL 1,432.22 1,968.26
Note: i) Income Tax deducted at source from Interest etc. 27.29 7.59
ii) Dividend income from subsidiaries 0.52 1.01
iii) Interest income from subsidiaries 2.97 0.17
* Includes
– Liability not payable 31.10 47.78
– Amount written off in earlier years written back 2.34 3.89

SCHEDULE – XVI
OTHER INCOME
(a) Interest on staff advances 0.57 0.90
(b) Profit on sale of fixed assets (Net) 37.57 0.49
(c) Rental Income 17.84 14.63
(d) Miscellaneous Income @ 24.99 131.85
TOTAL 80.97 147.87
@ Includes: Interest on income tax/interest tax refund 22.89 131.51

SCHEDULE – XVII
COST OF BORROWINGS
(a) Fixed
(i) Interest on SLR Bonds 245.67 279.03
(ii) Interest on other Bonds & Borrowings 493.36 504.87
(iii) Interest on Foreign Currency Borrowings 14.82 28.78
(b) Others
(i) Interest on Bank Overdraft 30.35 –
(ii) Interest on funds placed with the Company 1.99 3.96
(iii) Commitment Charges, Brokerage, Commission and other costs 3.33 4.03
TOTAL 789.52 820.67

58
 IFCI Limited (Consolidated Financial Statements)
SCHEDULE – XVIII For the year ended For the year ended
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES March 31, 2009 March 31, 2008
(a) Salaries and Allowances * 35.88 110.68
(b) Contribution to Retirement Funds # 19.07 9.86
(c) Staff Welfare Expenses 2.09 2.72
TOTAL 57.04 123.26
* Includes
– Annuity for DA increase for retired employees 11.67 4.14
– VRS Expenditure – 40.93
– Leave Encashment 3.60 7.18
# includes Gratuity 1.29 3.93

SCHEDULE – XIX
ESTABLISHMENT AND OTHER EXPENSES
(a) Rent 0.74 0.19
(b) Rates and Taxes 2.84 3.88
(c) Insurance 0.25 0.10
(d) Repairs and Maintenance
– Buildings 11.07 7.99
– Others 0.56 0.32
(e) Electricity 4.11 3.70
(f) Auditors’ Remuneration 0.18 0.15
(g) Directors’ Fee 0.09 0.05
(h) Other Miscellaneous Expenses 31.23 14.76
TOTAL 51.07 31.14

SCHEDULE - XX
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
(A) SIGNIFICANT ACCOUNTING POLICIES
1. BASIS FOR PREPARATION OF ACCOUNTS
1(a) The consolidated financial statements include the accounts of the
Company and its Subsidiary Companies. The accompanying financial
statements have been prepared incorporating Accounting Policies of
the parent company under the historical cost convention, in
compliance with the relevant Accounting Standards (AS) issued by
The Institute of Chartered Accountants of India (ICAI) and in
compliance with the Companies Act, 1956.
1(b) The financial accounts, unless otherwise stated, are prepared at
historical cost under the accrual method of accounting.
2. REVENUE RECOGNITION
2(a) Income on Non-Performing Assets (NPA) has been recognised, as and
when received.
2(b) Front-end fee, Premium on pre-payment of loans/reduction in interest
rates and LC Commission are accounted for on realization basis.
2(c) Dividends declared by the respective companies till the close of the
accounting year are accounted for as income.
2(d) Rental on leased assets is accounted for from the commencement date,
as prescribed in the lease agreement entered with the lessees. In respect
of lease transactions commenced on/or before 31.03.2001, income
from leases (except in case of Non-Performing Assets) is recognised
on the basis of implicit rate in the lease to the net investment
outstanding on the lease over the primary lease period.
2(e) The fee receivable for managing the Venture Capital Fund on behalf
of UTI is taken on annual basis. However, the performance related
fee, which is determined at the conclusion of the scheme will be
accounted for at the time of winding up of the scheme.
2(f) Broking Income is recognised on the basis of settlement date of
transactions.
2(g) Interest earned on fixed income bearing securities is accounted for
on accrual basis.
2(h) Income from Merchant Banking/Loans Syndication Fee is recognized
when the right to receive the income is established.
2(i) Depository Services income are recognised on the basis of agreements
entered into with clients and when the right to receive the income is
established.
2(j) Insurance Commission from Agency business is booked upon actual
receipt of commission from the principal agent.
2(k) Commission from selling of Mutual Funds is booked upon actual
receipt of commission from Asset Management Company.
2(l) Income by way of fee for project advisory and execution services is
recorded on the accrual basis as per services rendered pursuant to
the specific agreements.
2(m) Income from factoring services are accounted on accrual basis except
in the case of non performing assets where income is accounted on
realization.
2(n) Income on project consultancy, entrepreneurship development
trainings etc. under the Grants in Aid/and similar other programmes
awarded by the Central/State Governments are accounted for on
prorata basis.
2(o) Factored Debts purchased are included under Current Assets as
Sundry Debtors. The unpaid balance of the price of the debts factored
and due to the clients on collection is included under the Current
Liabilities as contractual obligation.
3. STOCK - IN - TRADE
3(a) The assets acquired due to devolvement are treated as stock-in-trade.
Stock-in-trade is valued at lower of cost and quoted value, computed
scrip-wise. Provision is made for diminution arising therefrom. The
front-end fee, underwriting commission and commitment fee received
in respect of devolvement is reduced from the cost of related
investments.
3(b) Stock-in-trade comprises land with or without removable structure
including existing/added boundary walls, Land and Building/
Residential Complex, Build up Floor space acquired/purchased for
development and/or for sale, other removable/disposable assets
existing thereon and capable of separate sale. These are valued at
lower of cost or net realizable value, costs are determined by adding
all considerations/cost attributable to purchase/acquisition, and other
expenses incurred thereto.
4. INVESTMENTS
4(a) Investments are classified under current and long term categories and
valued in accordance with the Reserve Bank of India Guidelines and
Accounting Standard-13 on ‘Accounting for Investments’ issued by
The Institute of Chartered Accountants of India.
(i) ‘Long term Investments’ are carried at acquisition/amortised cost.
A provision is made for diminution other than temporary on an
individual basis.
(ii) ‘Current Investments’ are carried at the lower of cost or fair value
on an individual basis. However, appreciation if any, within the
category, is available for set off.
4(b) Security Receipts issued by an Asset Reconstruction Company (ARC)/
Securitisation Company (SC) are valued in accordance with RBI
Guidelines. Accordingly, the net asset value obtained from the ARC
is reckoned for valuation of such investments. Appreciation in the
value, if any, is ignored and depreciation is provided for.
4(c) The front-end fee/underwriting commission/commitment fee received
in respect of devolvement of underwriting and direct subscription is
reduced from the cost of related investments.
4(d) Surplus on sale of investments is net of losses thereon.
5. FOREIGN EXCHANGE TRANSACTIONS
5(a) The expenses and income in foreign exchange are accounted for at
the rates prevailing on the date of transactions/at the forward rate, if
booked, for such transaction.

59
 IFCI Limited (Consolidated Financial Statements)
5(b) Assets and liabilities held in foreign currencies and accrued income
and expenditure in foreign currencies are translated into Indian
Rupees at the rates advised by Foreign Exchange Dealers Association
of India (FEDAI) prevailing towards the close of the accounting
period. Gains/losses, if any, on valuation of various assets and
liabilities are taken to Profit & Loss Account.
6. FIXED ASSETS AND DEPRECIATION
6(a) Fixed Assets are carried at cost (including capitalized interest) less
accumulated depreciation. Accumulated depreciation on assets in
respect of lease transactions commenced on or before 31.03.2001 is
adjusted for the balance in the ‘Accumulated Lease Equalization
Account’.
6(b) Depreciation on assets given on lease is provided on Straight Line
Method at the rates prescribed under Schedule XIV to the Companies
Act, 1956 or over the primary period of lease of assets, whichever is
higher.
6(c) Depreciation in respect of office building and certain other assets at
Nehru Place, New Delhi, is provided on Straight Line Method and on
other assets on the Written Down Value Method at the rates prescribed
under Schedule XIV to the Companies Act, 1956.
6(d) Depreciation on increase in value of fixed assets due to revaluation is
provided on straight-line basis over the balance useful life of asset
and adjusted out of revaluation reserve.
6(e) Art works capitalized under Furniture and Fixtures are not being
depreciated.
6(f) Leasehold Land is amortized over the lease period.
6(g) In the case of IFCI Factors, intangible assets are valued at cost less
accumulated amortization and any impairment lossses. Expenditure
on major software products is written off over a period of five years.
6(h) In the case of IFCI Financial Services, intangible assets are recognized
if they are separately identifiable and the Company controls the future
economic benefits arising out of them. All other expenses on intangible
items are charged to the profit and loss account. The computer
software which is identified as intangible assets and has been
amortized at the rate of 40% following WDV method.
The consideration paid for non-compete fee to Managing Director
Smt Chandra Ramesh is identified as intangible assets and has been
amortized as per terms of the non-compete agreement at straight line
basis.
7. PROVISIONS/WRITE OFF AGAINST LOANS AND OTHER CREDIT
FACILITIES
7(a) All credit exposures are classified into performing and non-performing
assets (NPAs) as per the Reserve Bank of India Guidelines. Further,
NPAs are classified into sub-standard, doubtful and loss assets based
on the criteria stipulated by RBI. Provisions on standard assets are
made as per the approval of the Board. Provisions are made on sub-
standard and doubtful assets at rates prescribed by RBI. Loss assets
and unsecured portion of doubtful assets are provided/written off as
per the extant RBI Guidelines. Additional provisions are made against
specific non-performing assets over and above what is stated above,
if in the opinion of the management, increased provisions are
necessary.
7(b) For restructured/rescheduled assets, provision is made in accordance
with the guidelines issued by RBI.
7(c) Recovery against debts written off/provided for is credited to revenue.
Income is recognized where amounts are either recovered and/or
adjusted against securities/properties or advances there-against or are
considered recoverable in terms of Reserve Bank of India Guidelines.
7(d) The purchase and sale of NPAs is accounted as per guidelines
prescribed by RBI.
7(e) The provisioning for doubtful Loans & Advances of IFCI Venture
Capital Funds Ltd is done as per the prudential norms laid down by
the Reserve Bank of India for asset classification as applicable to
NBFCs.
7(f) Loans/debts, which in the opinion of the Company, based on the
present available information, are fully irrecoverable, are written off.
7(g) Factored debts are classified into performing and non performing
assets in terms of guidelines laid down by the Reserve Bank of India.
Provision for factored debts is made in accordance with the guidelines
laid down by Reserve Bank of India.
8. GRANTS RECEIVED FROM GOVERNMENT OF INDIA UNDER
INTEREST DIFFERENTIAL FUND (IDF)
Grants received from Government of India under Interest Differential Fund
(IDF) is of a capital nature and to be utilized for specified purposes for
promotional activities of Industrial Development. Accordingly, the money
so received, net of expenditure for the approved purposes is shown under
‘Reserves and Surplus’ in the Balance Sheet. The amounts invested and
60
loans made out of the fund for approved purposes are shown under
‘Investments’ and ‘Loans’ respectively. The interest/dividend/other income
earned and profit on sale of investments are treated as income of the
Company.
9. MISCELLANEOUS EXPENDITURE
9(a) Expenses on issue of Shares and Bonds are charged as per guidelines
contained in Accounting Standard-26 - “Intangible Assets”.
9(b) Voluntary Retirement Scheme (VRS) expenses are charged off as and
when incurred.
10. EMPLOYEE BENEFITS
10(a) Monthly contribution to the Provident Fund being in the nature of
defined contribution is charged against revenue. The fund is
administered through duly constituted and approved administrators.
10(b) The Company had a defined benefit employees retirement scheme in
the form of pension. Consequent upon implementation of new
compensation structure for existing employees during the year, the
Trustees have entrusted the administration of cumulative accruals to
the fund to Life Insurance Corporation of India (LICI) by entering
into a Group Superannuation Cash Accumulation Scheme, providing
for defined contribution in lumpsum for past service and defined
monthly contribution by employer and/or employee and, thus,
freezing the liability of IFCI. Accordingly, the contribution determined
in respect of employees opting for the same based on the extant rules
viz. period of service rendered in IFCI; applicable pension regulations
and directions communicated by IFCI on the date of switching over
to LICI has been deposited with LICI. LICI shall be maintaining the
individual accounts in respect of the employees who have opted for
the same and for whom defined contribution has been remitted.
Employees shall be opting for the annuity/withdrawal with
contribution standing to their credit on their ceasing to be in
employment of IFCI.
The existing pension optees shall, however, continue to be governed
by the provisions of scheme in operation at the time of their retirement
and are accordingly entitled to DA relief and family pension as and
when due. The contribution made on account of same is charged to
Accounts as and when due.
10(c)The Company has a defined benefit employees scheme in the form of
Gratuity. The Trustees of the scheme have entrusted the administration
of related fund to Life Insurance Corporation of India (LICI). Expense
for the year is determined on the basis of actuarial valuation of the
Company’s year-end obligation in this regard and the value of year
end assets of the scheme. Contribution is deposited with LICI based
on intimation received by the Company.
10(d) The Company has a post retirement medical benefit scheme for
employees and their dependants subject to certain limits for
hospitalization and normal medical treatment. The same is charged
against revenue as and when incurred.
10(e)Voluntary Retirement Scheme expenditure is also charged against
revenue as and when due.
10(f) IFCI Venture Capital Funds Ltd has a policy for gratuity with LIC.
The premium paid to LIC is debited to Profit & Loss Account each
year.
11. TAXATION
Tax Expenses comprises of current & deferred income tax and fringe benefit
tax. Current income tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income
Tax Act. Deferred Tax is recognized, subject to consideration of prudence,
on timing differences, being difference between taxable income and
accounting income/expenditure that originate in one period and are capable
of reversal in one or more subsequent year(s). Deferred taxes are reviewed
for their carrying values at each balance sheet date.
(B) NOTES ON THE ACCOUNTS
1(a) The consolidated financial statements comprise the individual financial
statements of IFCI Ltd and its following subsidiaries as on 31.03.2009 and
for the year ended on that date:
Name of the Subsidiary Proportion of Ownership
Interest (%)
IFCI Financial Services Ltd (IFIN) 76.08
IFCI Venture Capital Funds Ltd (IVCF) 94.58
IFCI Infrastructure Development Ltd (IIDL) 100.00
IFCI Factors Ltd (IFL) 99.74
MPCON Ltd 66.06
IFCI Commodity Ltd* 100.00
All the subsidiaries are incorporated in India
* Wholly owned subsidiary of IFCI Financial Services Ltd formed during the year
 IFCI Limited (Consolidated Financial Statements)

1(b) The following associate companies are considered in consolidation based Subsidiaries. Requisite details requiring disclosure in terms of the exemption are
on equity method as provided in AS-23 and the Company’s ownership given as under:
interest therein are as under: (Rs.crore)
IFIN IVCF IIDL IFL MPCON
Name of the Associate Proportion of Ownership Year ended March 31 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
Interest (%) Capital 9.07 6.90 34.11 7.85 228.63 2.00 79.36 20.00 0.53 0.20
Tourism Finance Corporation of India Ltd 31.50 Reserves 9.43 6.58 33.37 7.10 0.50 0.01 18.96 4.07 1.63 1.12
Assets Care Enterprise Ltd 37.91 Total Assets 20.25 14.31 85.33 27.17 230.54 2.00 148.74 34.25 10.58 7.87
Total Liabilities 1.75 0.83 17.85 12.22 1.41 0.01 50.42 10.18 8.42 6.55
HARDICON Ltd 26.00
Investments 2.30 – 10.66 1.41 – – – – 0.09 0.08
Himachal Consultancy Organisation Ltd 36.75
Turnover (incl. Prior
North India Technical Consultancy Organistion Ltd 26.00 Period Income) 5.52 3.64 7.94 3.67 4.16 0.05 10.52 3.24 7.09 6.15
Profit before Taxation 0.63 2.38 3.39 1.37 0.76 0.01 4.24 0.90 0.80 0.74
Investments as on March 31, 2009 are as under: (Rs. crore)
Provision for Taxation 0.41 0.76 0.86 0.16 0.27 – 1.46 0.32 0.27 0.25
Particular TFCI ACE HARDI HIM NIT Profit after Taxation 0.22 1.62 2.53 1.21 0.49 0.01 2.78 0.58 0.53 0.49
CON CON CON Proposed Dividend
Original Cost of Investments 50.44 3.48 0.03 0.07 0.02 (incl. CDT) – 0.60 – – – – – – 0.02 0.02

Accumulated share in profit at the 7. The stakeholders of IFCI in FY 2002-03 had approved the package for
beginning of the year 19.94 0.30 0.03 0.24 0.07 restructuring of debt/liabilities, inter alia, providing for release of Rs.5,220
crore (comprising Rs.3,604 crore towards principal and Rs.1,616 crore
Acquired during the year 7.36 3.85 – – 0.04
towards interest over future years on liabilities taken over/to be serviced
Share of profit for the year 9.12 0.82 0.08 0.07 0.01 by Govt. of India) as Grant. Government of India released Rs.2,932.31 crore,
Adjustment of goodwill for the year 2.76 0.02 – 0.01 0.05 comprising Rs.523 crore as loan (FY 2002-03) and Rs.2,409.31 crore
(FY 2003-04 to FY 2006-07) as Grant. The amount of Rs.2,409.31 crore
Carrying cost of investments 89.62 8.47 0.14 0.39 0.19
received as Grant in FY 2003-04 to 2006-07 comprised of Rs.1,606.31 crore
2(a) Contingent Liabilities not provided for in respect of: towards principal and Rs.803 crore towards interest. Out of Rs.1,606.31
(Rs. crore) crore received towards principal, Rs.1,359 crore (FY 2003-04) was
accounted as extra-ordinary income and Rs.247.31 crore (FY 2004-05 to
As at 31.03.2009 31.03.2008 FY 2006-07) as Restructuring Reserve in the Reserves & Surplus A/c and
(i) Interest tax/Sales tax/Property tax/ thereafter transferred to Profit & Loss A/c, as per the guidelines conveyed
Trade tax pending in appeals based by RBI. The amount of Rs.803 crore received towards interest was reduced
on judicial pronouncement and/or from the cost of borrowings in respective years. In view of GoI letter dated
legal opinion and other matters. 4.21 2.68 December 12, 2007, stating that it would assist IFCI Ltd in case such a
situation arises, no Grant has been received in FY 2007-08 and 2008-09.
(ii) SEBI Turnover Based Fee – 0.48
(iii) Guarantees issued 8. The bonds guaranteed by Govt. of India of Rs.2,468.15 crore include bonds
– Foreign Currency – 2.83 of Rs.1,187.64 crore which have been rolled over for 10 years from the
– Indian Currency 187.90 190.42 respective due dates in line with the minutes of meetings of stakeholders,
held on November 26, and December 2, 2002. Government of India has
(iv) Performance Guarantees issued 0.62 – been requested to extend the guarantee for the rolled over period.
(v) Claims not acknowledged as debts 46.92 46.58 9(a) Transfer of equivalent amount to Capital Redemption Reserve Account in
(vi) Assets sold with recourse 2.88 8.40 respect of Preference Shares of Rs.20 crore redeemed in the FY 2001-02,
was complied with in FY 2007-08. However, the Company’s application
(vii) The Company is contesting demands (net of provisions of Rs.19.30 crore) to the Regional Director, Kanpur for compounding is yet to be disposed off
of Rs.186.92 crore (Previous Year - Rs.170.82 crore), raised by Income by the authorities.
Tax Authorities at various levels. It includes demand of Rs.23.72 crore
on issues, which have been restored to Assessing Officer for 9(b) During the current year, Preference Shares of Rs.82.035 crore have been
re-examination. In view of various judicial pronouncements and legal redeemed as per restructured terms on 01.04.2008 and necessary amount
opinions in respect of issues decided in favour of/against IFCI, no has been transferred to the Capital Redemption Reserve Account from Profit
provision is considered necessary. The demand, however, stands and Loss Account.
deposited with Income Tax Authorities by way of Advance tax (including 10(a) Govt. of India has the option of converting the debentures, as shown at ‘A’
Tax Deducted at Source). of Schedule III, wholly or partly into fully paid equity shares of IFCI
2(b) Estimated amount of contract (including lease contract) remaining to be Limited, at par, at any time during the currency of debentures subject to
compliance with provisions of SEBI guidelines, in respect of preferential
executed on capital account (net of advances) as at 31.03.2009 – Rs.46.37
allotment. IFCI also has the right to redeem the convertible debentures
crore (Previous Year – Rs.6.21 crore).
issued to Govt. of India, fully or partly, at par, at any time after expiry of
3. The financial statements of IFCI Venture Capital Funds Ltd do not include five years from the date of the issue with prior approval of RBI.
the assets and liabilities of Private Equity/Venture Funds being managed
10(b) During the Financial Year 2007-08, Zero Coupon Optionally Convertible
by it as the same are separate entities. Debentures (ZCOCDs) amounting to Rs.1,323.99 crore held by Public Sector
4. Other Loans & Advances includes Bid Advance of Rs.15.76 crore, being Banks and Financial Institutions were converted into equity shares of the
the amount(s) deposited with the Court for purchasing auction assets of Company. LIC had, however, stated that they would convert only as much
sick companies through bid awarded in favour of IVCF by the Hon’ble of their ZCOCDs into equity as would maintain their shareholding at 8.39%
Court of Punjab, Haryana and Himachal Pradesh. IVCF has already taken post conversion of ZCOCDs. Accordingly, the shareholders at the AGM
possession of these assets. held on September 12, 2008 had approved reduction of share capital for
aligning the stake of LIC to 8.39% as requested by LIC. The order of the
Subsequently, IVCF has also received an advance of Rs.17.29 crore for High Court of Delhi passed on February 26, 2009 for reduction of Equity
eventual sale of these assets to IFCI Infrastructure Development Ltd. Share Capital and minutes forming part of the petition have been registered
5. The Company has been granted exemption as on March 31, 2009 by the by Registrar of Companies on April 15, 2009. The reduction in Equity Share
Capital is effective from the date of registration.
Government of India, Ministry of Corporate Affairs, under Section 211(4)
of the Companies Act, 1956, regarding the following requirements of 10(c) The Optionally Convertible Debentures held by LIC and GoI do not have
Schedule VI of the Companies Act, 1956: specific terms of conversion.
i) Company-wise details of investments where the market value in 11. The Company has availed loans of Rs.300 crore (Previous Year-Rs.300 crore)
case of quoted investments and cost in case of unquoted investments against security of cash flow/negative lien against certain identified assets.
in any particular company not exceeding Rs.2 crore each 12. As directed by Reserve Bank of India, the assets and liabilities in foreign
ii) Age-wise Classification of Sundry Debtors currency have been valued as per Foreign Exchange Dealers Association of
India Guidelines.
The accounts have been prepared in accordance therewith.
13. Profit for the current year is less by Rs.0.12 crore (Previous Year-Rs.0.99
6. The Company has been granted exemption as on March 31, 2009 by the crore) due to following of FEDAI for revaluation of outstanding swap
Ministry of Finance, Department of Corporate Affairs, under Section 212(8) contracts vis-à-vis Accounting Standard-11, issued by The Institute of
of the Companies Act, 1956, regarding attachment of the Balance Sheet of

61
 IFCI Limited (Consolidated Financial Statements)

Chartered Accountants of India (ICAI). IFCI Financial Services Ltd. has made application to the Department of
Company Affairs, New Delhi for managerial remuneration paid in excess of
14. In respect of Investments in shares, debentures and security receipts in
the limit specified in the Schedule XIII of the Companies Act, 1956. The
certain cases, scrips are yet to be received.
necessary approval is still awaited.
15. In the case of IFCI Infrastructure Development Ltd:
21. Quantitative details of Stock-in-trade:
a) Fixed Assets include Rs.0.88 crore towards the cost of Residential Flats (Rs. crore)
at Goa purchased from IFCI Ltd. The process of execution and
31.03.2009 31.03.2008
registration of title deeds as per applicable State Laws is yet to be
completed, although possession has been handed over. Particulars Nos. Amount Nos. Amount
Opening Stock 2,77,930 0.03 3,77,469 0.12
b) Inventories include:
Add: Purchases 1,91,850 4.09 76,463 3.08
i) Two properties have been purchased for an aggregate consideration
of Rs.9.60 crore. The process of execution and registration of title Less: Sales 3,22,754 2.82 1,76,002 3.17
deeds as per applicable State Laws is yet to be completed, although Balance at year end 1,47,026 1.41 2,77,930 0.03
possession has been handed over.
22. The Gross Block of Fixed Assets includes Rs.595.50 crore (Previous Year-
ii) Three properties puchased through BIidding Process from financial Rs.670.23 crore) on account of revaluation of Fixed Assets carried out in
institutions, who acquired these assets under SARFA&ESI Act and past. Consequent to the said revaluation, there is an additional charge of
for which Sale Letters have been issued by the Authorized Officer, depreciation of Rs.9.75 crore (Previous Year-Rs.10.14 crore) and an equivalent
appointed under the said Act and possession of properties also taken. amount has been withdrawn from Revaluation Reserve and credited to Profit
and Loss account.
c) Capital work in progress includes costs incurred on Construction of
Service Apartiments, a project undertaken with development rights 23. Balances appearing under loans and advances (including with NSE), sundry
from the site owner IFCI Ltd. Costs incurred considerations paid to debtors and sundry creditors are subject to confirmation. In the opinion of
the contractors on the basis of continuing/completed stage of the management the same are good and recoverable.
construction as per work evaluation, sums paid to Architects and other
professionals in connection with the project and all other costs 24. There are no Micro and Small Enterprises, to whom the Company owes dues,
incurred as are directly attributable to the Service Apartments project. which are outstanding for more than 45 days as at March 31, 2009. This
information as required to be disclosed under the Micro, Small and Medium
16. Other Loans and Advances include Rs.0.54 crore (Previous Year-Rs. Nil) Enterprises Development Act, 2006 has been determined to the extent such
due from Director/Relative of Director (includes advance of Rs.0.42 crore parties have been identified on the basis of information available with the
given to relative of Director of IFIN without obtaining the approval of Company.
Central Government). Maximum balance during the year Rs.0.54 crore
(Previous Year-Rs. Nil). 25. Details of investments purchased and sold/redeemed during the year ended
March 31, 2009 are enclosed as Annexure with IFCI’s stand alone Balance
(Rs. crore)
Sheet.
Year ended 31.03.2009 31.03.2008
17. Expenditure in Foreign Currencies: 26. There are no material prior period items included in Profit & Loss A/c required
– Interest on borrowings 6.88 33.67 to be disclosed as per Accounting Standard-5 issued by The Institute of
Chartered Accountants of India (ICAI) read with RBI Guidelines.
– Other matters 0.76 0.04
7.64 33.71 27. During the year, Chennai based company C.R. Finance and Securities Private
Limited (CRFS) got merged with IFCI Financial Services Ltd. The Scheme of
18. Earnings in Foreign Currencies:
Amalgamation and Merger of C.R. Finance and Securities Private Limited
– Interest – 6.94 into IFCI Financial Services Limited has been approved by the Hon’ble High
– Discounting and service charges 0.31 – Courts of New Delhi and Chennai with effect from the appointed date defined
0.31 6.94 in the scheme. As per the Scheme, the entire undertaking of CRFS including
19. Auditors' Remuneration: all its assets and liabilities stood transferred/deemed to be transferred to and
vested in the IFIN.
– Fee (including Service Tax) 0.18 0.15
– Out of pocket expenses – – The appointed date was April 1, 2008 and effective date for scheme was
March 26, 2009. The current results includes performance of CRFS, which
0.18 0.15
has been amalgamated with the IFCI Financial Services Limited during the
20. Managerial Remuneration: current financial year.
– Salary and allowances 1.82 0.34
Merger has been accounted for under the Pooling of Interest method as
– Contribution to Retirement funds* 0.18 0.03
prescribed by Accounting Standard-14 on Accounting for Amalgamation
– Perquisites 0.07 0.03 issued by The Institute of Chartered Accountants of India. Accordingly the
2.07 0.40 assets, liabilities and reserves of CRFS have been taken over at their book
values and the excess value has been credited to General Reserve, by Rs.0.83
* Excluding contribution to gratutiy and leave encashment, as not determinable
crore as specified in the Scheme of Merger.
individually
Note : Contribution towards Group Personal Accident Insurance Policy and Group As per the Scheme, 0.7233 equity shares of face value of Rs.10/- each (fully
Gratuity Insurance cannot be ascertained since it is for the Company as a paid up) of IFIN against every one equity share of face value of Rs.10/- each
whole. (fully paid up) of CRFS were required to be allotted to shareholders of CRFS
Computation of Net Profit and Managerial Remuneration (in respect of as a purchase consideration. Accordingly, 21,69,900 equity shares of IFIN
IFCI Ltd): have been allotted to the equity shareholders of CRFS.

(Rs. crore) The merger expenses amounted to Rs.0.10 crore have been adjusted against
Year ended 31.03.2009 31.03.2008 the General Reserve.
Profit before Taxation and Exceptional Items 1,010.23 2,084.59 28. To comply with the Accounting Standard-14 on Accounting for
Add: Directors' Remuneration 0.82 0.18 Amalgamation issued by The Institute of Chartered Accountants of India,
Add: Wealth Tax 0.04 0.06 the method of depreciation followed by C. R. Finance & Secutities Pvt Ltd
Less: Profit on sale of fixed assets (net) (38.40) (0.49) (Amalgamating Company) has been changed from SLM method to WDV
Net Profit as per Section 198 of the method to ensure the uniform accounting policy in line with the policy
Companies Act, 1956 972.69 2,084.34 followed by the IFCI Financial Services Ltd. Had there been no change in the
accounting policy, the profit would have been increased by Rs.0.06 crore.
Maximum permissible remuneration to CEO & MD/
WTD u/s 198 of the Companies Act, 1956 @10% 29. Defined Benefit Plans/Long Term Compensated Absences - As per Actuarial
of the profits computed as above 97.27 208.43 Valuations as on March 31, 2009 and recognized in the financial statements
Payable for the year 0.82 0.18 in respect of Employee Benefit Schemes:

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 IFCI Limited (Consolidated Financial Statements)

(Rs. crore) (Rs. crore)

Gratuity Leave Type of Transaction ACE TFCI HIM NIT HARDI
Funded Encashment (year ended 31.03.2009) CON CON CON
Un-funded Infusion of Equity 3.77 7.36 – 0.04 –
I. Components of Employer Expense Rent & Maintenance
1. Current Service Cost 0.33 – received by IFCI 0.18 0.57 – – –
2. Interest Cost 0.46 – Salaries/Other Estt. Exp.
3. Expected Return on Plan Asset 0.47 – paid by IFCI for employees
deputed by IFCI, recovered/
4. Curtailment Cost/(Credit) – –
recoverable from them 0.19 – – – –
5. Settlement Cost/(Credit) – –
6. Past Service Cost – – Employees deputed by IFCI
7. Actuarial (gain)/loss recognized 0.63 – as at 31.03.2009 (No.) 1 – – – –
8. Expense Recognized in Statement of Profit/Loss 0.95 3.69 Employees posted by IFCI
II. Actual Returns for the year ended March 31, 2009 0.65 – as at 31.03.2009 (No.) 1 – – – –
III. Net Asset/(Liability) recognized in Professional Fee paid by IFCI – – 0.07 0.03 0.05
Balance Sheet as at March 31, 2009
1. Present Value of Defined Benefit Obligation 7.06 – ii) Key Managerial Personnel of the Company during the year:
2. Fair Value on Plan Assets 7.39 – – Shri Atul Kumar Rai, Chief Executive Officer & Managing Director
3. Status (Surplus/Deficit) (0.35) – – Shri Sujit K Mandal, Whole Time Director (w.e.f. 01.11.2008)
4. Unrecognised Past Service Cost – – 32. Earnings per share (EPS)
5. Net (Asset)/Liability recognized in Balance Sheet (0.19) – (Rs. crore)
IV. Change in Defined Benefit Obligations (DBO)
during year ended March 31, 2009 For the year ended 31.03.2009 31.03.2008

1. Present Value of Obligation at I. Computation for Basic EPS

the beginning of the year 5.82 5.99 (a) Profit Computation for Equity Shareholders
2. Current Service Cost 0.33 – Net profit as per Profit & Loss Account 662.84 1,022.40
3. Interest Cost 0.46 – Less: Preference Dividend (5.11) (10.07)
4. Curtailment cost – – Net profit for Equity Shareholders 657.73 1,012.33
5. Settlement Cost – – (b) Weighted Average Number of Equity
6. Plan Amendments – – Shares outstanding during the year 76,24,13,497 66,40,31,855
7. Acquisitions – – II. Computation for Diluted EPS
8. Actuarial (gain)/loss on Obligations 0.88 – (a) Profit Computation for Equity
9. Benefits Paid 0.41 – Shareholders (incl. potential shareholders)
10. Present Value of Obligation at end of the year 7.06 8.71 Net profit as per Profit & Loss Account 662.84 1,022.40
V. Change in Fair Value of Assets Less: Preference Dividend (5.11) (10.07)
during the year ended March 31, 2009 Add: Interest on Convertible Debentures 35.05 35.05
1. Fair Value of Plan Asset at Net profit for equity shareholders
the beginning of the year 5.73 – (incl. potential shareholders) 692.78 1,047.37
2. Acquisition Adjustment – – (b) Weighted Average Number of Equity
3. Expected Return on Plan Asset 0.47 – Shares outstanding during the year incl.
4. Actuarial (gain)/loss on Plan Asset 0.25 – Convertible Debentures held by LIC/GoI
assuming conversion price
5. Contributions 1.36 – as per SEBI Guidelines 150,16,94,913 115,23,42,213
6. Benefits Paid 0.42 – III. Earnings Per Share
7. Fair Value of Plan Asset at the end of the year 7.41 – (Weighted Average, not annualised)
VI. Actuarial Assumptions Basic (Rs.) 8.63 15.25
1. Mortality Table LIC 1994-96 Diluted (Rs.) 4.61 9.09
2. Early Retirement & Disablement Age Related
33(a)Provisions of Accounting Standard-19, issued by The Institute of Chartered
3. Discount Rate 8.00% 8.00% Accountants of India (ICAI) - “Leases” are not applicable as the Company
4. Inflation Rate 7.00% 5.00% has not entered into leasing transaction on or after April 01, 2001.
5. Return on Asset 8.00%
33(b) (i) The Company has entered into lease agreement for Office premises at
VII. Major Category of Plan Assets as a %
of the Total Plan Assets as at March 31, 2009
two centers. Some of the significant terms and conditions of the
arrangements are:
1. Government Securities 15.61%
2. Special Deposit Scheme – – • Agreement may generally be terminated by either party on serving
3. High Quality Corporate Bonds – – a notice period.
4. Insurance Companies 84.39% – • The lease arrangements are generally renewed on expiry of lease
5. Cash & Cash Equivalents – – period subject to mutual agreement.
30. As more than 90% of revenue for the Company comes from a single • The Company shall not sublet, assign or part with the possession
segment of financing, segment reporting as required under Accounting of the premises without prior written consent of lessor.
Standard-17, issued by The Institute of Chartered Accountants of India (ii) Rent in respect of above is charged to Profit & Loss Account.
(ICAI) is not applicable to IFCI.
(iii) The year-wise break up of future minimum lease payments in respect
31. Disclosure of details pertaining to related party transactions in terms of of leased premises are as under:
Accounting Standard-18, issued by The Institute of Chartered (Rs. crore)
Accountants of India (ICAI) - “Related Party Disclosures” are as under:
Particulars 2008-09 2007-08
i) The details of related party transactions undertaken by the Company Minimum Lease payments during
during the year are summarised as follows: FY 2008-09 (in r/o IFCI Ltd)
Related Party Relationship a) Not later than one year 0.14 –
Assets Care Enterprise Ltd (ACE) Associate b) Later than one year but not later than five years 0.10 –
Tourism Finance Corporation of India (TFCI) Associate c) Later than five years – –
HIMCON Ltd Associate 34. Current Tax represents primarily Minimum Alternate Tax (MAT), as reduced
by the MAT Credit Entitlement, which, the Company is confident, that it
NITCON Ltd Associate
would be in position to utilize against normal tax within the period
HARDICON Ltd Associate specified under Income Tax Act. 1961.

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 IFCI Limited (Consolidated Financial Statements)
35. In terms of Accounting Standard-22, issued by The Institute of Chartered The Institute of Chartered Accountants of India (ICAI) - “Provisions,
Accountants of India (ICAI) - “Accounting for Taxes on Income”, Deferred Contingent Liabilities and Contingent Assets” in respect of IFCI is given as
Tax Asset as at March 31, 2009 and March 31, 2008 works out as under: under:

(Rs. crore) (Rs. crore)

As at 31.03.2009 31.03.2008 Opening Addition/ Deduction/ Closing

Balance Transfer Transfer Balance
Unabsorbed Business Loss 251.03 358.50
Leave Encashment 5.55 2.80 – 8.35
Unabsorbed Depreciation 58.07 58.07
Income Tax 270.96 111.37 – 382.33
Provision against Loans/Advances & other Assets 1,463.14 1,673.33
Fringe Benefit Tax 1.36 4.77 – 6.13
Timing difference in Depreciable Assets (57.34) (65.53)
Assets 4,894.09 105.27 723.67 4,275.69
Other Timing Differences 11.97 13.05
Deferred Tax Assets (Net) 1,726.79* 2,037.42# 38. The additional information in respect of IFCI in terms of RBI Circular is
given in IFCI’s stand alone Balance Sheet.
* Includes Rs.0.08 crore on account of amalgamation of IFIN with C.R.
Finance & Securities Pvt Ltd 39. Total value of outstanding Currency Swaps was US$ 9.45 million against
INR and EUR 40.80 million against USD (Previous Year-US$ 11.5 million
# Includes opening balance of IFCI Factors that became subsidiary during against INR and EUR 29.9 million against USD) equivalent to Rs.323.98 crore
the year (Previous Year-Rs.236.25 crore), whereas total value of outstanding Forex
For the current year, Deferred Tax charge of Rs.310.55 crore has been charged Deals other than Currency Swaps was USD 3.5 million against INR and EUR
in the accounts. 16 million against USD equivalent to Rs.124.03 crore (Previous Year-US$ 10
million and EUR 20 million).
36. Fixed Assets possessed by the Company are treated as ‘Corporate Assets’
and not ‘Cash Generating Units’ as defined by Accounting Standard-28 40. Foreign Currency exposure that is not hedged by derivative instrument or
issued by The Institute of Chartered Accountants of India (ICAI) - otherwise is US$ 0.01 million and EUR 0.02 million, equivalent to Rs.0.16
“Impairment of Assets”. As on March 31, 2009, there were no events or crore.
changes in circumstances which indicate any impairment in the assets. 41. Previous year figures have been re-grouped/re-arranged wherever necessary
37. Movement in Provisions, in terms of Accounting Standard-29, issued by to conform to the current year’s presentation.

Signatories to all Schedules I to XX

In terms of our report of even date For and on behalf of Board

For RAY & RAY
Chartered Accountants
PRAKASH P MALLYA SANJEEV KUMAR JINDAL P G MURALIDHARAN
Chairman of the Board Director Director

ANIL P VERMA USHA SANGWAN TEJINDER SINGH LASCHAR K RAGHURAMAN SHOBHIT MAHAJAN
Partner Director Director Director Director
M. No. 90408
K NARASIMHA MURTHY S SHABBEER PASHA ATUL KUMAR RAI SUJIT K MANDAL
Director Director CEO & Managing Director Whole Time Director

Place: New Delhi JAVED YUNUS S SETHEE N K DUGGAL RUPA SARKAR

Dated: June 27, 2009 Executive Director Chief Finance Officer Chief General Manager Company Secretary

64