idfc finance limited · olof palme road, munirka new delhi 110 067 tel +91 11 4331 1000 fax +91 11...

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CIN U45201DL2000PLC105292 DIRECTORS Mr. Sunil Kakar - CHAIRMAN Mr. Sadashiv Rao Dr. Rajeev Uberoi AUDITORS Deloitte Haskins & Sells Chartered Accountants PRINCIPAL BANKERS HDFC Bank Limited REGISTERED OFFICE The Capital Court, 6th Floor Olof Palme Road, Munirka New Delhi 110 067 TEL +91 11 4331 1000 FAX +91 11 2671 3359 WEBSITE www.idfc.com EMAIL ID [email protected] IDFC FINANCE LIMITED

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Page 1: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

192 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

IDFC FInAnCe lImIteD

CIN U45201DL2000PLC105292

DIRECTORS

Mr. Sunil Kakar - chairman

Mr. Sadashiv Rao

Dr. Rajeev Uberoi

AUDITORS

Deloitte Haskins & Sells

Chartered Accountants

PRINCIPAL BANKERS HDFC Bank Limited

REGISTERED OFFICE The Capital Court, 6th Floor Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website www.idfc.com email id [email protected]

IDFC FINANCE LIMITED

Page 2: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

I D F C F I n A n C e l I m I t e D | 193

Board's Reportto tHe membersYour Directors have pleasure in presenting the Fifteenth Annual Report together with the audited financial statements for the year ended March 31, 2015.

FINANCIAL HIGHLIGHTS(Amount In `)

PARTICULARS For tHe yeAr enDeD mArCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2014

Total Income 19,554,114 24,070,478Less: Total Expenses 361,967 378,129Profit before Tax 19,192,147 23,692,349Less: Provision for Tax 4,537,000 950,784Profit after Tax 14,655,147 22,741,565

COMPANY’S AFFAIRSIDFC Finance Limited is regulated by the Reserve Bank of India and registered as Non-Banking Finance Company.

AMOuNT TO BE CARRIED FORWARD TO RESERVESThe details of amount transferred to reserves are given in note no. 04 of the Notes forming part of the financial statements.

DIVIDENDThe Directors do not recommend any dividend for the financial year ended March 31, 2015 as the Company has decided to reinvest its earnings.

PARTICuLARS OF EMPLOYEESThe Company does not have any employee.

PuBLIC DEPOSITSThe Company has neither invited nor accepted any Public Deposits.

PARTICuLARS OF LOANS, GuARANTEES AND INVESTMENTSThere were no loans or guarantee or investments made by the Company under the provisions of Section 186 of the Companies Act, 2013.

FOREIGN EXCHANGE EARNINGS AND EXPENDITuREThere was no earnings or expenditure in foreign currency during the year ended under review.

PARTICuLARS REGARDING CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTIONSince the Company does not own any manufacturing facility, the disclosure of information on other matters required to be disclosed in terms of Section 134(3)(m) are not applicable and hence not given.

DIRECTORSIn accordance with the Articles of Association of the Company and pursuant to the provisions of Section 152 of the Companies Act, 2013, Dr. Rajeev Uberoi (DIN - 01731829) would retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.The Board of Directors recommends re-appointment of Dr. Rajeev Uberoi (DIN - 01731829) at the ensuing AGM.

BOARD AND AuDIT COMMITTEEDuring the year, four Board meetings and four Audit Committee meetings were convened. The gap between the two meetings was within the period prescribed under the Companies Act, 2013.The Audit Committee of the Company comprises of the following members:1. Mr. Sunil Kakar (DIN - 03055561) - Chairman (DIN – 03055561) 2. Mr. Sadashiv S. Rao (DIN - 01245772)3. Dr. Rajeev Uberoi (DIN – 01731829)

AuDITORSThe Shareholders of the Company at the AGM held on September 29, 2014 had approved the appointment of Deloitte Haskins & Sells, Chartered Accountants, (Registration No. 117365W) as Statutory Auditors for a period of 1 year to hold office from the conclusion of the Fourteenth Annual General Meeting for FY14 up to the conclusion of the Fifteenth Annual General Meeting of the Company for FY15.M/s. Deloitte Haskins & Sells, Chartered Accountants, Ahmedabad (Registration No.117365W) Statutory Auditors of the Company will retire at the conclusion of the ensuing AGM.

Page 3: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

194 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

The Board recommends the reappointment of Deloitte Haskins & Sells, Chartered Accountants, Ahmedabad, as the Statutory Auditors of the Company.

RISk MANAGEMENTThe Board members ensures control of risk factors and advice on the same to the Management of the Company.

INSTANCES OF FRAuD, IF ANY REPORTED BY THE AuDITORSThere have been no instances of fraud reported by the Auditors under Section 143(12) of the Companies Act, 2013.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGuLATORS/COuRTS/TRIBuNALThere are no significant material orders passed by the Regulators/Courts/Tribunal which would impact the going concern status of the Company and its future operations.

MATERIAL CHANGES/ COMMITMENTSAs per Section 134(3)(I) of the Companies Act, 2013, there have been no reportable changes and commitments, affecting the financial position of the Company that has occurred during the period March 31, 2015 till the date of this report.

AuDITOR’S REPORTThere are no qualifications, reservations or adverse remarks or disclaimers made by the Statutory Auditors in their report.

DIRECTORS’ RESPONSIBILITY STATEMENTThe Directors confirm that:(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to

material departures;(b) the directors had 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 and loss of the company for that period;

(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors had prepared the annual accounts on a going concern basis; and(e) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were

adequate and operating effectively.

EXTRACT OF ANNuAL RETuRNThe details forming part of the extract of the Annual Return in form MGT-9 are annexed herewith as Annexure I.

RELATED PARTY TRANSACTIONIn all related party transactions that were entered into during the financial year, an endeavour was made consistently that they were on an arm’s length basis and were in the ordinary course of business. IDFC Group has always been committed to good corporate governance practices, including matters relating to Related Party Transactions.Pursuant to the provisions of Companies Act, 2013 and Rules made there under and in the back-drop of the Company’s philosophy on such matters, the Board approved the “Policy on Related Party Transactions” at the meeting held on January 22, 2015 which was also recommended by the Audit Committee.Since all related party transactions entered into by the Company were in the ordinary course of business and were on an arm’s length basis, Form AOC-2 is not applicable to the Company.

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

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

SUNIL KAKAR

Chairman

Mumbai, June 30, 2015

Board's Report

Page 4: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

I D F C F I n A n C e l I m I t e D | 195

Form No. MGT-9 Extract of Annual Return aNNEXURE I

As on the financial year ended on march 31, 2015[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:i) CIN U45201DL2000PLC105292

ii) Registration Date 18/04/2000

iii) Name of the Company IDFC FINANCE LIMITED

iv) Category / Sub-Category of the Company Company Limited by sharesIndian Non-Government Company

v) Address of the Registered office and contact details The Capital Court6th Floor, Olof Palme RoadMunirka, New Delhi – 110 067.Tel.: +91 11 4331 1000, Fax: +91 11 2671 3359

vi) Whether listed company Yes / No No

vii) Name, Address and Contact details of Registrar and Transfer Agent, if any

Karvy Computershare Private LimitedKarvy Selenium Tower B, Plot No.31 & 32, Gachibowli, Financial District, Nanakramguda, Hyderabad– 500 032 Tel.: +91 40 6716 1500, Fax: + 91 40 2342 0814

II. PRINCIPAL BuSINESS ACTIVITIES OF THE COMPANYAll the business activities contributing 10% or more of the total turnover of the company shall be stated:-

SR. NO.

NAmE AND DESCRIPTION OF mAIN PRODUCTS / SERvICES

NIC CODE OF THE PRODUCT / SERvICE % TO TOTAL TURNOvER OF THE COmPANy

1. Non Banking Finance Company 649 100%

III. PARTICuLARS OF HOLDING, SuBSIDIARY AND ASSOCIATE COMPANIES SR. NO.

NAmE AND ADDRESS OF THE COmPANy CIN/GLN HOLDING/ SUBSIDIARy/ASSOCIATE

% OF SHARES HELD

APPLICABLE SECTION

1 IDFC Limited L65191TN1997PLC037415 Holding 100% Section 2(46)

IV. SHARE HOLDING PATTERN (EQuITY SHARE CAPITAL BREAkuP AS PERCENTAGE OF TOTAL EQuITY) i) Category-wise Share Holding

CATEGORy OF SHAREHOLDERS

NO. OF SHARES HELD AT THE BEGINNING OF THE yEAR

NO. OF SHARES HELD AT THE END OF THE yEAR

% CHANGE DURING THE

yEAR

DEmAT PHySICAL TOTAL % OF TOTAL

SHARES

DEmAT PHySICAL TOTAL % OF TOTAL

SHARES

A. Promoters

(1) Indian

a) Individual/ HUF NIL NIL NIL NIL NIL NIL NIL NIL NIL

b) Central Govt NIL NIL NIL NIL NIL NIL NIL NIL NIL

c) State Govt (s) NIL NIL NIL NIL NIL NIL NIL NIL NIL

d) Bodies Corp. 21,000,200 NIL 21,000,200 100% 21,000,200 NIL 21,000,200 100% NIL

e) Banks/FI NIL NIL NIL NIL NIL NIL NIL NIL NIL

f) Any Other NIL NIL NIL NIL NIL NIL NIL NIL NIL

Sub-total (A) (1):- 21,000,200 NIL 21,000,200 100% 21,000,200 NIL 21,000,200 100% NIL

Page 5: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

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Form No. MGT-9 Extract of Annual Return aNNEXURE I

CATEGORy OF SHAREHOLDERS

NO. OF SHARES HELD AT THE BEGINNING OF THE yEAR

NO. OF SHARES HELD AT THE END OF THE yEAR

% CHANGE DURING THE

yEAR

DEmAT PHySICAL TOTAL % OF TOTAL

SHARES

DEmAT PHySICAL TOTAL % OF TOTAL

SHARES

(2) Foreign NIL NIL NIL NIL NIL NIL NIL NIL NIL

a) NRIs - Individuals

b) Other - Individuals

c) Bodies Corp.

d) Banks / FI

e) Any Other

Sub-total (A) (2):- NIL NIL NIL NIL NIL NIL NIL NIL NIL

Total shareholding of Promoter (A) = (A)(1)+(A)( 2)

21,000,200 NIL 21,000,200 100% 21,000,200 NIL 21,000,200 100% NIL

B. Public Shareholding NIL NIL NIL NIL NIL NIL NIL NIL NIL

1. Institutions

a) Mutual Funds

b) Banks/FI

c) Central Govt

d) State Govt(s)

e) Venture Capital Funds

f) Insurance Companies

g) FIIs

h) Foreign Venture Capital Funds

i) Others (specify)

Sub-total (B)(1):- NIL NIL NIL NIL NIL NIL NIL NIL NIL

2. Non-Institutions

a) Bodies Corp.

i) Indian

ii) Overseas

b) Individuals

i) Individual shareholders holding nominal share capital upto ` 1 lakh

ii) Individual shareholders holding nominal share capital in excess of ` 1 lakh

c) Others (specify)

Sub-total (B)(2):- NIL NIL NIL NIL NIL NIL NIL NIL NIL

Total Public Shareholding (B) = (B)(1) + (B)(2)

NIL NIL NIL NIL NIL NIL NIL NIL NIL

C. Shares held by Custodian for GDRs & ADRs

NIL NIL NIL NIL NIL NIL NIL NIL NIL

Grand Total (A+B+C) 21,000,200 NIL 21,000,200 100% 21,000,200 NIL 21,000,200 100% NIL

Page 6: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

I D F C F I n A n C e l I m I t e D | 197

(ii) Shareholding of Promoters

SR. NO.

SHAREHOLDER’S NAmE SHAREHOLDING AT THE BEGINNING OF THE yEAR

SHARE HOLDING AT THE END OF THE yEAR

NO. OF SHARES

% OF TOTAL SHARES OF

THE COmPANy

%OF SHARES PLEDGED/

ENCUmBERED TO TOTAL

SHARES

NO. OF SHARES

% OF TOTAL SHARES OF

THE COmPANy

%OF SHARES PLEDGED/

ENCUmBERED TO TOTAL

SHARES

% CHANGE IN SHARE HOLDING

DURING THE yEAR

1. IDFC Limited 21,000,140 100% NIL 21,000,140 100% NIL NIL

2. Mahendra N Shah* 10 0% NIL 10 0% NIL NIL

3. A K T Chari* 10 0% NIL 10 0% NIL NIL

4. Bipin Gemani* 10 0% NIL 10 0% NIL NIL

5. Mayuri Chhichhiya* 10 0% NIL 10 0% NIL NIL

6. Urjit R Patel* 10 0% NIL 10 0% NIL NIL

7. Sadashiv S. Rao* 10 0% NIL 10 0% NIL NIL

Total 21,000,200 100% NIL 21,000,200 100% NIL NIL

* beneficial interest of Equity share is in the name of IDFC Limited

(iii) Change in Promoters’ Shareholding ( please specify, if there is no change)

SR. NO.

SHAREHOLDING AT THE BEGINNING OF THE yEAR CUmULATIvE SHAREHOLDING DURING THE yEAR

NO. OF SHARES % OF TOTAL SHARES OF THE COmPANy

NO. OF SHARES % OF TOTAL SHARES OF THE COmPANy

1 At the beginning of the year

NO CHANGE

Date wise Increase/ Decrease in Promoters Share holding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/ sweat equity etc):

At the end of the year

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

SR. NO.

SHAREHOLDING AT THE BEGINNING OF THE yEAR

CHANGES IN THE SHAREHOLDING DURING THE yEAR

SHAREHOLDING AT THE END OF THE yEAR

FOR EACH OF THE TOP 10 SHAREHOLDERS

NO. OF SHARES

% OF TOTAL SHARES OF THE

COmPANy

INCREASE DECREASE NO. OF SHARES

% OF TOTAL SHARES OF THE

COmPANy

1. At the beginning of the year

NOT APPLICABLE

2. Date wise Increase / Decrease in Share holding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc):

3. At the end of the year (or on the date of separation, if separated during the year)

Form No. MGT-9 Extract of Annual Return aNNEXURE I

Page 7: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

198 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

(v) Shareholding of Directors and Key Managerial Personnel:

SR. NO.

SHAREHOLDING AT THE BEGINNING OF THE yEAR

CHANGES IN THE SHAREHOLDING DURING THE yEAR

SHAREHOLDING AT THE END OF THE yEAR

FoR EACH oF tHE DIRECtoRS AnD KMP

NO. OF SHARES

% OF TOTAL SHARES OF THE

COmPANy

INCREASE DECREASE NO. OF SHARES

% OF TOTAL SHARES OF THE

COmPANy

1. At the beginning of the year

NIL

2. Date wise Increase / Decrease in Share holding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc):

3. At the end of the year (or on the date of separation, if separated during the year)

V. INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment: IN `

SECURED LOANS ExCLUDING

DEPOSITS

UNSECURED LOANS

DEPOSITS TOTAL INDEBTEDNESS

Indebtedness at the beginning of the financial year

NIL

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i+ii+iii)

Change in Indebtedness during the financial year

• Addition

• Reduction

Net Change

Indebtedness at the end of the financial year

i) Principal Amount

ii) Interest due but not paid

iii) Interest accrued but not due

Total (i+ii+iii)

VI. REMuNERATION OF DIRECTORS AND kEY MANAGERIAL PERSONNEL: A. Remuneration to Managing Director, Whole-time Directors and/or Manager: IN `

SR. NO.

PARTICULARS OF REmUNERATION NAmE OF mD/WTD/ mANAGER TOTAL AmOUNT

1. Gross salary

NIL

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961

2. Stock option

3. Sweat Equity

4. Commission

- as % of profit

- others, specify...

5. others, please specify

total (A)

Ceiling as per the Act

Form No. MGT-9 Extract of Annual Return aNNEXURE I

Page 8: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

I D F C F I n A n C e l I m I t e D | 199

b. Remuneration to other Directors: IN `

SR. NO.

PARTICULARS OF REmUNERATION NAmE OF DIRECTORS TOTAL AmOUNT

SUNIL KAKAR RAjEEv UBEROI SADASHIv S. RAO

1. Independent Directors

NIL

Fee for attending board committee meetingsCommissionOthers, please specifyTotal (1)

2. Other Non-Executive DirectorsFee for attending board committee meetingsCommissionOthers, please specifyTotal (2)Total (B) = (1 + 2)Overall Ceiling as per the Act

C. Remuneration to Key Managerial Personnel other than MD/Manager/WtD. IN `

SR. NO.

PARTICULARS OF REmUNERATION KEy mANAGERIAL PERSONNEL

CEO COmPANy SECRETARy

CFO TOTAL

1. Gross salary

N.A.

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961

(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961

2. Stock option

3. Sweat Equity

4. Commission

- as % of profit

- others, specify...

5. others, please specify

Total (A)

VII. PENALTIES/PuNISHMENT/COMPOuNDING OF OFFENCES:TyPE SECTION OF THE

COmPANIES ACTBRIEF

DESCRIPTIONDETAILS OF

PENALTy/ PUNISHmENT/

COmPOUNDING FEES ImPOSED

AUTHORITy [RD/NCLT/COURT]

APPEAL mADE, IF ANy (GIvE

DETAILS)

A. COmPANy

NIL

Penalty

Punishment

Compounding

B. DIRECTORS

Penalty

Punishment

Compounding

C. OTHER OFFICERS IN DEFAULT

Penalty

Punishment

Compounding

Form No. MGT-9 Extract of Annual Return aNNEXURE I

Page 9: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

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Independent Auditors' Reportto tHe members oF IDFC FInAnCe lImIteD

Report on the Financial StatementsWe have audited the accompanying financial statements of IDFC FInAnCE LIMItED (“the Company”), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsThe Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit.We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

opinionIn our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2015, and its profit and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements1. As required by the Companies (Auditor’s Report) Order, 2015 (“the order”) issued by the Central Government in terms of Section 143(11) of

the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.2. As required by Section 143 (3) of the Act, we report that: (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the

purposes of our audit. (b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of

those books (c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the

books of account (d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with

Rule 7 of the Companies (Accounts) Rules, 2014. (e) On the basis of the written representations received from the directors as on March 31, 2015 taken on record by the Board of Directors,

none of the directors is disqualified as on March 31, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

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I D F C F I n A n C e l I m I t e D | 201

(f) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable

losses. iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

FOR DELOITTE HASKINS & SELLS LLP

Chartered Accountants(Registration No. 117365W)

ZUBIN SHEKARy

Partner(Membership No. 48814)

Mumbai, April 23, 2015

Independent Auditors' Report

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202 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

(Referred to in paragraph 1 under ‘Report on other Legal and Regulatory Requirements’ section of our report of even date)(i) According to the information and explanations given to us, the Company does not have any fixed assets. Therefore, the provisions of

paragraph 3(i) of the Order are not applicable to the Company.(ii) According to the information and explanations given to us, the nature of the Company’s business is such that it is not required to hold any

inventories. Therefore, the provisions of paragraph 3(ii) of the Order are not applicable to the Company.(iii) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the Register maintained under

Section 189 of the Companies Act, 2013.(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate

with the size of the Company and the nature of its business for the purchase of fixed assets and for the sale of services and during the course of our audit we have not observed any continuing failure to correct major weaknesses in such internal control system. According to the information and explanations given to us, the Company does not hold inventories nor is it engaged in the sale of goods.

(v) According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year and no order in this respect has been passed by the Company Law Board or National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunals.

(vi) To the best of our knowledge and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under sub-section(1) of section 148 of the Companies Act, 2013, in respect of the services rendered by the Company.

(vii) According to the information and explanations given to us, in respect of statutory dues: (a) The Company has been regular in depositing undisputed statutory dues, including income tax, service tax and other material statutory

dues applicable to it with the appropriate authorities. According to the information and explanation given to us, there were no amounts payable on account of provident fund, employees’ state insurance, sales tax, wealth tax, duty of customs, duty of excise, value added tax and cess during the year.

(b) There were no undisputed amounts payable in respect of provident fund, employees’ state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues in arrears as at March 31, 2015 for a period of more than six months from the date they became payable.

(c) There are no dues of Income-tax, Service Tax and Cess which have not been deposited as on March 31, 2015 on account of disputes. (d) There are no amounts that are due to be transferred to the Investor Education and Protection Fund in accordance with the relevant

provisions of the Companies Act, 1956 (1 of 1956) and Rules made thereunder.(viii) The Company does not have accumulated losses at the end of the financial year and the Company has not incurred cash losses during the

financial year covered by our audit and in the immediately preceding financial year.(ix) According to information and explanations given to us, there were no dues payable by the Company to financial institutions or banks or

debenture holders during the year. Therefore, the provisions of paragraph 3(ix) of the Order are not applicable to the Company.(x) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or

financial institutions. Therefore, the provisions of paragraph 3(x) of the Order are not applicable to the Company.(xi) According to the information and explanations given to us, during the year, the Company has not availed of any term loan from financial

institutions. Therefore, the provisions of paragraph 3(xi) of the Order are not applicable to the Company.(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud

on the Company has been noticed or reported during the year.

FOR DELOITTE HASKINS & SELLS LLP

Chartered Accountants(Registration No. 117365W)

ZUBIN SHEKARy

Partner(Membership No. 48814)

Mumbai, April 23, 2015

Annexure to the Independent Auditor’s Report

Page 12: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

I D F C F I n A n C e l I m I t e D | 203

IN TERmS OF OUR REPORT ATTACHED

FOR DELOITTE HASKINS & SELLS LLP

Chartered Accountants(Registration No. 117365W)

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF

IDFC FINANCE LImITED

ZUBIN SHEKARy

Partner (Membership No. 48814)

SUNIL KAKAR

DirectorSADASHIv S. RAO

Director

Mumbai | April 23, 2015mAyURI CHHICHHIyA

Company Secretary

As At

mArCH 31, 2015As At

mArCH 31, 2014

notes ` ` `

EqUITy AND LIABILITIES

SHAREHOLDERS’ FUNDS

(a) Share capital 3 210,002,000 210,002,000 (b) Reserves & surplus 4 145,130,452 130,475,305 355,132,452 340,477,305 CURRENT LIABILITIES

(a) Trade payables 5 184,248 184,249 (b) Other current liabilities 6 15,000 -

199,248 184,249 TOTAL 355,331,700 340,661,554 ASSETS

NON-CURRENT ASSETS

(a) Long-term loans and advances 7 5,190,892 5,871,543 (b) Non-current investments 8 150,000,000 150,000,000 155,190,892 155,871,543 CURRENT ASSETS

(a) Current investments 9 200,037,844 184,624,465 (b) Cash and bank balances 10 102,964 165,546 200,140,808 184,790,011

TOTAL 355,331,700 340,661,554

See accompanying notes forming part of the financial statements.

Balance Sheet AS AT MARCH 31, 2015

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204 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

For tHe yeAr enDeD mArCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2014

notes ` `

I INCOmE

Revenue from operations 11 19,554,114 24,070,478 TOTAL INCOmE (I) 19,554,114 24,070,478

II ExPENSES

Finance cost 12 29,129 33,214 Other expenses 13 332,838 344,915 TOTAL ExPENSES (II) 361,967 378,129

III PROFIT BEFORE TAx (I- II) 19,192,147 23,692,349

Iv TAx ExPENSE Current tax 3,842,984 4,741,000 Minimum Alternate Tax (MAT) utilized / (credit) 7 694,016 (3,478,000)Short/ (excess) provision for earlier years – (312,216)TOTAL TAx ExPENSES 4,537,000 950,784

v PROFIT FOR THE PERIOD FROm CONTINUING OPERATIONS (III - Iv) 14,655,147 22,741,565 EARNINGS PER EqUITy SHARE (Nominal value of share `10) 17

(a) Basic (`) 0.70 1.08

(b) Diluted (`) 0.70 1.08

See accompanying notes forming part of the financial statements.

Statement of Profit and Loss FOR THE YEAR ENDED MARCH 31, 2015

IN TERmS OF OUR REPORT ATTACHED

FOR DELOITTE HASKINS & SELLS LLP

Chartered Accountants(Registration No. 117365W)

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF

IDFC FINANCE LImITED

ZUBIN SHEKARy

Partner (Membership No. 48814)

SUNIL KAKAR

DirectorSADASHIv S. RAO

Director

Mumbai | April 23, 2015mAyURI CHHICHHIyA

Company Secretary

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I D F C F I n A n C e l I m I t e D | 205

Cash Flow Statement FOR THE YEAR ENDED MARCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2014

notes ` `

A. CASH FLOW FROm OPERATING ACTIvITIES

PROFIT BEFORE TAx 19,192,147 23,692,349

Changes in working capital:

Adjustment for (increase)/decrease in operating assets

Current Investments (15,413,379) 130,954,803

Adjustment for increase/ (decrease) in operating liabilities

Trade payables - 203

Other current liabilities 15,000 (20,900)

Direct taxes paid (net of refund) (3,856,350) (4,788,791)

NET CASH FROm / (USED IN) OPERATING ACTIvITIES (A) (62,582) 149,837,664

B. CASH FLOW FROm INvESTING ACTIvITIES

Purchase of investments - (150,000,000)

NET CASH USED IN INvESTING ACTIvITIES (b) - (150,000,000)

C. CASH FLOW FROm FINANCING ACTIvITIES

Inter-corporate deposit taken - 50,000,000

Inter-corporate deposit repaid - (50,000,000)

NET CASH FLOW FROm FINANCING ACTIvITIES (C) - -

Net (decrease) / increase in cash and cash equivalents (A + B + C) (62,582) (162,336)

Cash and cash equivalents as at the beginning of the year. 10 165,546 327,882

Cash and cash equivalents as at the end of the year. 10 102,964 165,546

See accompanying notes forming part of the financial statements.

IN TERmS OF OUR REPORT ATTACHED

FOR DELOITTE HASKINS & SELLS LLP

Chartered Accountants(Registration No. 117365W)

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF

IDFC FINANCE LImITED

ZUBIN SHEKARy

Partner (Membership No. 48814)

SUNIL KAKAR

DirectorSADASHIv S. RAO

Director

Mumbai | April 23, 2015mAyURI CHHICHHIyA

Company Secretary

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Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

206 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

01 BackgroundIDFC Finance Limited is a wholly owned subsidiary of IDFC Limited, incorporated in India and regulated by the Reserve Bank of India ('RBI') as a Non Banking Finance Company.

02 Significant accounting policies(a) basis of preparationThe financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ('the 2013 Act') / Companies Act, 1956 ('the 1956 Act'), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) use of estimatesThe preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

(c) InvestmentsInvestments which are readily realisable and intended to be held for not more than one year from the date on which such investments are made are classified as current investments in accordance with the RBI guidelines and Accounting Standard 13 on ‘Accounting for Investments’ as specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. All other investments are classified as long term investments.

All investments are initially recorded at cost. The cost of an investment includes purchase price, directly attributable acquisition charges and reduced by recovery of costs, if any. On disposal of an investment, the difference between its carrying amount and the net disposal proceeds is charged or credited to the Statement of Profit and Loss.

n Long Term Investments' are carried at acquisition cost. A provision is made for diminution other than temporary on an individual basis. n Current investments' are valued scrip-wise and depreciation/ appreciation is aggregated for each category.

(d) revenue recognitionRevenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. In addition, the following criteria must also be met before revenue is recognised:

n Interest Income is accounted on accrual basis.

n Dividend is accounted on accrual basis when the right to receive is established.

n Profit / loss earned on sale of investments is recognised on trade date basis. Profit / loss on sale of investments is determined based on the FIFO cost for current investments and weighted average cost for long term investments.

(e) taxes on income

Current tax is the amount payable on taxable income for the year as determined in accordance with applicable tax rates and the provisions of Income-tax Act, 1961 and other applicable tax laws. The accounting treatment for income-tax in respect of the Company's income is based on Accounting Standard 22 on 'Accounting for Taxes on Income' as specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. The provision made for income-tax in the accounts comprises both, the current tax and the deferred tax. The deferred tax assets and liabilities for the year arising on account of timing differences are recognised in the Statement of Profit and Loss and the cumulative effect thereof is reflected in the Balance Sheet.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry

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Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

I D F C F I n A n C e l I m I t e D | 207

forward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

(f) Cash and cash equivalents (for purposes of Cash Flow statement)Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

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

(h) earnings per shareBasic earnings per share is computed by dividing the profit / loss after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

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

(j) operating cycleBased on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

03 Share capital

As At mArCH 31, 2015 As At mArCH 31, 2014

number ` number `

AUTHORISED SHARES

Equity shares of ` 10 each 40,000,000 400,000,000 40,000,000 400,000,000

Total authorised share capital 400,000,000 400,000,000

ISSUED SHARES

Equity shares of `10 each 27,000,400 270,004,000 27,000,400 270,004,000

SUBSCRIBED & FULLy PAID-UP SHARES

Equity shares of `10 each [All of these shares are held by IDFC Limited, the holding company and its nominees]

21,000,200 210,002,000 21,000,200 210,002,000

TOTAL ISSUED, SUBSCRIBED AND FULLy PAID-UP SHARE CAPITAL

210,002,000 210,002,000

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Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

208 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

(a) reconciliation of the number of equity shares outstanding at the beginning and at the end of the year.

As At mArCH 31, 2015 As At mArCH 31, 2014

number ` number `

Outstanding at the beginning of the year 21,000,200 210,002,000 21,000,200 210,002,000 Issued during the year - - - - Outstanding at the end of the year 21,000,200 210,002,000 21,000,200 210,002,000

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

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

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

(c) Details of shareholders holding more than 5% of the equity shares in the company

As At mArCH 31, 2015 As At mArCH 31, 2014

number % oF HolDIng number % oF HolDIng

IDFC Limited and its nominees 21,000,200 100.00% 21,000,200 100.00%

04 Reserves and surplusAs At mArCH 31, 2015 As At mArCH 31, 2014

` `

(a) SPECIAL RESERvE U/S. 45-IC OF RBI ACT,1934

Opening balance 26,105,000 21,555,000 Add : Transferred from surplus in Statement of Profit and Loss 2,940,000 4,550,000 Closing balance 29,045,000 26,105,000

(b) SURPLUS IN THE STATEmENT OF PROFIT AND LOSS

Opening balance 104,370,305 86,178,740 Profit for the year 14,655,147 22,741,565 Less: Appropriations Transfer to Special Reserve u/s. 45-IC of RBI Act, 1934 2,940,000 4,550,000 Closing balance 116,085,452 104,370,305 TOTAL RESERvES AND SURPLUS 145,130,452 130,475,305

05 Trade payablesAs At mArCH 31, 2015 As At mArCH 31, 2014

` `

Provision for expenses 184,248 184,249 TOTAL 184,248 184,249

No amount is payable to “Suppliers” under Micro, Small and Medium Enterprises Development Act, 2006. No Interest has been paid/ is payable by the company during the year to the “Suppliers” covered under the Micro, Small and Medium Enterprises Development Act, 2006. The above

information takes into account only those suppliers who have responded to inquiries made by the company for this purpose.

06 Other current liabilities

As At mArCH 31, 2015 As At mArCH 31, 2014

` `

Statutory dues 15,000 -

TOTAL 15,000 -

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Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

I D F C F I n A n C e l I m I t e D | 209

07 Long-term loans and advances (unsecured) (considered good)

As At mArCH 31, 2015 As At mArCH 31, 2014

` `

Advance payment of income tax 692,912 679,543 [net of provision for tax ` 16,702,548 (Previous year ` 12,844,234)]Minimum alternate tax (MAT) credit * 4,497,980 5,192,000 TOTAL 5,190,892 5,871,543

* Since the tax provision as per the normal provisions of the Income - tax Act, 1961 (“the Act”) is lower than the tax computed u/s 115JB of the Act, the current tax provision represents the Minimum Alternate Tax (MAT) u/s 115JB. The Company is eligible for MAT credit as per the provisions of

Section 115JAA of the Act to the extent MAT exceeds the tax arising under normal provisions of the Act.

08 Non- current investments (Non Trade) (at cost)

FACe vAlue

`

As At mArCH 31, 2015 As At mArCH 31, 2014

number oF unIts ` number oF unIts `

INvESTmENT IN EqUITy SHARES (UNqUOTED) (FULLy PAID)

IDFC Infra Debt Fund Limited 10 15,000,000 150,000,000 - - INvESTmENT IN mUTUAL FUNDS (UNqUOTED) IDFC Fixed Term Plan Series 21 Direct plan - Growth 10 - - 5,000,000 50,000,000 IDFC Fixed Term Plan Series 48 Direct plan - Growth 10 - - 10,000,000 100,000,000 TOTAL 150,000,000 150,000,000 (a) Aggregate amount of investments in unquoted mutual funds Cost - 150,000,000 Market value - 158,999,000 Market value of investments in unquoted mutual funds represents the repurchase price of the units issued by the mutual funds.

09 Current investments (Non Trade) (Valued at lower of cost and market value)

FACe vAlue

`

As At mArCH 31, 2015 As At mArCH 31, 2014

number oF unIts ` number oF unIts `

CURRENT mATURITIES OF LONG-TERm INvESTmENTS (AT COST)

IDFC Fixed Term Direct Plan Series-10 Growth 10 - - 5,000,000 50,000,000 IDFC Fixed Term Plan Series 21 Direct plan - Growth 10 5,000,000 50,000,000 - - IDFC Fixed Term Plan Series 48 Direct plan - Growth 10 10,000,000 100,000,000 - - CURRENT INvESTmENTS

INvESTmENT IN mUTUAL FUNDS (UNqUOTED)

IDFC Banking Debt Fund- Direct plan- Growth 10 4,474,317.576 49,225,100 - - ICICI Prudential Institutional Liquid Fund-Super Institutional Plan -Growth

100 6,271.074 812,744 6,271.074 812,744

IDFC Cash Fund-Direct Plan-Growth 10 - - 219.460 307,409 IDFC Fixed Term Plan Series 25 Direct plan - Growth 10 - - 5,000,000 50,000,000 IDFC Super Saver Income Fund - Short term Plan - Direct plan - Growth

10 - - 2,927,418.775 71,947,757

IDFC Ultra Short Term Fund - Direct Plan - Growth 10 - - 712,448.448 11,556,555 TOTAL 200,037,844 184,624,465

(a) Aggregate amount of investments in unquoted mutual funds

Cost 200,037,844 184,624,465

Market value 226,319,427 196,977,447

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

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Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

210 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

10 Cash and bank balances

As At mArCH 31, 2015 As At mArCH 31, 2014

` `

CASH AND CASH EqUIvALENTS

Balances with bank:

In current account 102,964 165,546

TOTAL 102,964 165,546

11 Revenue from operations

For tHe yeAr enDeD mArCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2014

` `

Profit on sale of non-current investments 5,238,612 -

Profit on sale of current investments 14,315,502 24,070,478

TOTAL 19,554,114 24,070,478

12 Finance cost

For tHe yeAr enDeD mArCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2014

` `

Bank charges 225 337

Interest on inter corporate deposits (see note 16) - 32,877

Interest on delayed payment of advance tax 28,859 -

Other finance costs 45 -

TOTAL 29,129 33,214

13 Other expenses

For tHe yeAr enDeD mArCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2014

` `

Rates & taxes 2,500 15,000

Legal and professional fees 10,112 24,717

Auditors' remuneration [see note (a)] 320,226 305,198

TOTAL 332,838 344,915

(a) Break up of auditors’ remuneration:

For tHe yeAr enDeD mArCH 31, 2015

For tHe yeAr enDeD mArCH 31, 2014

` `

Audit fee 150,000 150,000

Tax audit fee 30,000 30,000

Other services 105,000 90,000

Out of pocket expenses - 1,625

Service tax 35,226 33,573

TOTAL 320,226 305,198

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Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

I D F C F I n A n C e l I m I t e D | 211

14 Contingent liabilities and commitments (to the extent not provided for)

As At mArCH 31, 2015 As At mArCH 31, 2014

` `

(a) Contingent liabilities

(i) Claims not acknowledged as debts in respect of: Income-tax demands disputed by the Company (net of amounts provided). The

matters in dispute are under rectification.

269,110 -

(b) There are no litigations claims made by the Company or pending on the Company

(c) Provisions for onerous contracts are recognised when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any impairment loss on the assets associated with that contract.

15 The Company is engaged in business of Non banking financial services. As such, there are no separate reportable segments as per Accounting Standard 17 on ‘Segment Reporting’ specified u/s 133 of Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.

16 As per Accounting Standard 18 on 'Related Party Disclosures' as specified u/s 133 of Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014, the related parties of the Company are as follows:

RELATIONSHIP:

I. Holding Company : IDFC Limited

II. Fellow Subsidiary : IDFC Infra Debt Fund Limited

III. Key Management Personnel : Mr. Bipin Gemani - Manager

pArtICulArs

mArCH 31, 2015 mArCH 31, 2014

` `

IDFC Infra Debt Fund Limited Subscription of equity shares 150,000,000 -

IDFC Limited Inter Corporate Deposit (ICD) taken - 50,000,000

ICD Repaid - 50,000,000

Interest on ICD paid - 32,877

17 In accordance with Accounting Standard 20 on 'Earnings Per Share' specified u/s 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014

pArtICulArsFor tHe yeAr enDeD

mArCH 31, 2015For tHe yeAr enDeD

mArCH 31, 2014

Profit for the year (`) 14,655,147 22,741,565

Weighted average number of equity shares (Nos.) 21,000,200 21,000,200

Basic & Diluted Earnings Per Share (`) 0.70 1.08

Nominal Value Per Share (`) 10 10

18 The following additional information is disclosed in terms of the RBI circular (Ref. No. DNBS (PD) CC No. 381 / 03.02.001 / 2014-15 dated July 1, 2014) :

(a) Capital to risk assets ratio (CrAr):

As At mArCH 31, 2015 As At mArCH 31, 2014

CRAR (%) 101.42% 101.75%

CRAR - Tier I Capital (%) 101.42% 101.75%

CRAR - Tier II Capital (%) 0.00% 0.00%

Amount of Subordinated Debt considered as Tier-II Capital - -

Amount raised by issue of Perpetual Debt Instruments - -

(b) exposures to real estate sector (based on amounts sanctioned):This disclosure is not applicable to IDFC Finance Limited as there is no exposure to real estate sector as at March 31, 2015 and March 31, 2014.

Page 21: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

212 | I D F C A n n u A l r e p o r t 2 0 1 4 – 2 0 1 5

(c) exposures to Capital market This disclosure is not applicable to IDFC Finance Limited as there is no exposure to Capital Market as at March 31, 2015 and March 31, 2014.

(d) Details of single borrower limit and borrower group limit exceeded by the CompanyThe company has not given advances during the year ended March 31, 2015 and previous year ended March 31, 2014 and hence Single borrower group borrower limits are not applicable.

(e) unsecured advancesThe Company has not given any unsecured advances in the current year and in the previous years.

(f) Asset liability management maturity pattern of certain items of assets and liabilities

pArtICulArs 1 DAy to 30/31 DAys (one

montH)

over one montH to

two montHs

over two montHs to

tHree montHs

over tHree montHs to sIx

montHs

over sIx montHs

to one yeAr

over one yeAr to

tHree yeArs

over tHree yeArs

to FIve yeArs

over FIve yeArs

totAl

` ` ` ` ` ` ` ` `

Deposits - - - - - - - - -

Advances - - - - - - - - -

Investments 50,037,844 100,000,000 - 50,000,000 - - - 150,000,000 350,037,844

Foreign Currency assets - - - - - - - - -

Foreign Currency liabilities

- - - - - - - - -

(g) borrower group-wise classification of assets financed:The company has not financed loans to any borrower in the current year and in the previous years.

(h) Details of Investments are set out below:

As At mArCH 31, 2015`

As At mArCH 31, 2014`

1. vALUE OF INvESTmENTS

(i) Gross Value of Investments

(a) In India 350,037,844 -

(b) Outside India - -

350,037,844 -

(ii) Provision for depreciation

(a) In India - -

(b) Outside India

- -

(iii) Net Value of Investments

(a) In India 350,037,844 -

(b) Outside India - -

350,037,844 -

2. mOvEmENT OF PROvISIONS HELD TOWARDS DEPRECIATION ON INvESTmENTS.

The company has not made any provisions in the current year and in the previous years.

(f) Investor group wise classification of all investments (Current and long term) in shares and securities (both quoted and unquoted):

CAtegory

As At mArCH 31, 2015 As At mArCH 31, 2014

mARKET vALUE/ BREAKUP vALUE / FAIR vALUE / NAv

BOOK vALUE NET OF PROvISION

mARKET vALUE/ BREAKUP vALUE / FAIR vALUE / NAv

BOOK vALUE NET OF PROvISION

` ` ` `

1. Related Parties 152,141,972 150,000,000 - -

2. Other than related Parties 226,319,427 200,037,844 355,976,447 334,624,465

(g) other information:The company does not have any non- performing assets in the current year and in the previous years.

Page 22: IDFC FINANCE LIMITED · Olof Palme Road, Munirka New Delhi 110 067 tel +91 11 4331 1000 fax +91 11 2671 3359 website email id info@idfc.com IDFC FINANCE LIMITED. IDFC FInAnCe lImIteD

Notes forming part of the Financial Statements AS AT AND For The yeAr eNDeD MArch 31, 2015

I D F C F I n A n C e l I m I t e D | 213

19 Penalties / fines imposed by the RBIDuring the year ended March 31, 2015 there was no penalty imposed by the RBI (Previous Year ` Nil).

20 SecuritisationThe company has no transactions of securitisation in the current year and previous years.

21 Details of non-performing financial assets transferred purchased:There are no NPAs in the company, hence this is not applicable.

22 Disclosure on accounts subjected to restructuringThe Company has not given any advances in the current year and in the previous years, hence restructuring disclosure is not applicable.

23 The additional information required to be disclosed in terms of RBI circular (Ref. No. RBI/2009-2010/356/IDMD/4135/11.08.43/2009-10) dated March 23, 2010 and RBI circular (Ref. No. DNBS (PD) CC No. 002/03.10.001/2014-15 dated November 10, 2014 ) is not applicable for the Company.

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

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS OF

IDFC FINANCE LImITED

SUNIL KAKAR

DirectorSADASHIv S. RAO

Director

Mumbai | April 23, 2015mAyURI CHHICHHIyA

Company Secretary