inside this report - iifl · let’s explore the loan zone with iiisl... annual report 2010-11 ......

Standalone Financial Statements20 Auditors’ Report 25 Balance Sheet 26 Profit and Loss Account 27 Schedules

45 Cash Flow Statement 47 Balance Sheet Abstract 48 Statement Relating to Subsidiary Companies

Consolidated Financial Statements49 Auditors’ Report 50 Balance Sheet 51 Profit and Loss Account 52 Schedules

66 Cash Flow Statement

Statutory Reports13 Board of Directors 15 Directors’ Report

An Overview01 Performance Highlights 2010-11 03 Chairmans’ Message 05 Corporate Identity

07 Financial Literacy Campaign

Business Discussion09 Industry Overview 12 Performance Overview

INSIDE THIS REPORT

INDIA INFOLINE INVESTMENT SERVICES LIMITED (IIISL)

ANNUAL REPORT 2010-11Let’s Explore the Loan Zone with IIISL...For you, from IIISL. Retail Loans, Professional Loans, Corporate Loans

Roaming the loan jungle can make strong men weep. Exhaustion and despair get at you when your most sensible requirements are turned down, again and again. Know the feeling?

Now, wave goodbye to darkness and gloom. It’s good morning in the Loan Zone! This is where IIISL lifts you up, and flies you way above the confusions, anxieties and hesitations when exploring loan possibilities; giving you the quick, smooth flexibility you need.

Whether you need a loan against your property or for your home; a loan against your gold, or for the most complex Healthcare Project; even the simplest loan against shares gets our detailed guidance and personal attention.

Call us, we’ll get you on your way, an easy, trouble-free way – so you never get lost again.

PERFORMANCE HIGHLIGHTS (Consolidated) 2010-11

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India Infoline Investment Services LimitedAnnual Report 2010-11

(` bn)

1.6

07-08 08-09 09-10 10-11

2.4 2.3

5.2

Revenue

(` mn) (`) (`)

Net Interest Income

07-08 08-09 09-10

781.3

1,847.81,957.0

Earning per Share

1.6

2.9

2.3

3.9

07-08 08-09 09-10 10-11

Book Value per Share

07-08 08-09 09-10 10-11

47.9

51.1

53.3

56.6

10-11

2,505.1

(` mn)

922.5

Profit after Tax

239.4

07-08 08-09 09-10 10-11

691.2

537.9

(` bn)

07-08 08-09 09-10

11.4

12.1

12.6

Net Worth Loan Outstanding

(` bn) (%)

Mar 31`08 Mar 31 09` Mar 31 10` Mar 31 11`

9.4 9.6

16.3

32.9

10-11

13.4

NPA

07-08 08-09 09-10 10-11

0.90

0.08

0.60

0.44

0.71

-0.09

0.45

0.36

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Gross NPANet NPA

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CHAIRMANS’ MESSAGE

The Indian economy recorded a robust 8.5% growth in 2010-

11, driven by 9.4% growth in services sector. Manufacturing and

agriculture also witnessed growth rates of 8.3% and 6.6%

respectively. After a fast recovery from the global credit crisis of

2008, India remains one of the fastest growing economies in the

world. Growth is driven primarily by domestic consumption,

high savings and high investment spending. To counter rising

inflation, RBI has resorted to a series of interest rate hikes.

Repo and Reverse repo rates have risen from 5% and 3.5% to

6.75% and 5.7% respectively over the last 12 months. Interest

rates however, continue under upward pressure.

The confidence in India's future growth is founded on

favourable demographics-a rapidly expanding young

population with a propensity to earn more and spend well.

With a large number of new young wage earners, there is a big

latent demand for credit as well, due to changing mindset and

availability of opportunities.

NBFCs, which serve the vital credit needs of under-served

sectors like small and medium enterprises, emerged more or

less unscathed in the financial turmoil of 2008, thanks to a robust

framework in which they operate. In fact, the NBFCs have

witnessed healthy growth after the crisis faced by the entire sector

in the late 90s, which led to a revamp in the regulatory framework

of the sector.

This sector plays a complementary role in distribution of

credit to various segments of the population and geographies

where banks are under-penetrated. Most of the NBFCs have

created a cost effective structure for distribution of credit. Over the

years, they have developed their own credit evaluation skills and

have put in place robust risk management systems as well as asset

liability management. NBFCs also have the unique ability to handle

small amounts of cash disbursals and cash collections. For the

economy which is on rapid growth path, the need for financing

different types of risks will continue. Given their size, scale and

complexity, NBFCs play a nation-building role as it facilitates

various economic activities by making credit available.

Compared to banks, the cost of funds for NBFCs is higher,

because they do not have access to low cost deposits, and

therefore they specialize in meeting the requirements of

relatively higher risk assets. NBFCs play the role of the

intermediary where they originate their assets that meet

required specifications and complement the bank's efforts to

reach out to deliver the credit at an affordable cost, bringing

about an all-round economic development starting from the

bottom of the pyramid; and all this at affordable rates. Any

regulatory framework must afford flexibility to the system to

meet these objectives in a systematic and prudent manner.

Last year, your Company doubled its loan portfolio, which rose

from ̀ 16.3 bn as on March 31, 2010 to 32.9 bn as on March

31, 2011. Home loans/ loans against property contributed

about 60% of the portfolio while loan against shares/ margin

financing contributed 35%. Unsecured loans, which we

discontinued in 2008, was about 1% of portfolio, the balance

was contributed by our newly launched gold loans and

medical equipment loans. Our focus will remain on secured

lending, going ahead and we hope to add new lines like loans

to education sector.

In the Indian context, for the next two decades, sectors that

will require flow of debt capital on a large scale include

infrastructure, education and healthcare. The variety,

enormity and complexity of projects in these verticals will

require assistance from the entire financial system, comprising

not just banks but also complemented by NBFCs. Here,

education and healthcare should get covered as infrastructure

as is happening for the Banking system which will allow

certain tax concessions and external borrowing to ensure

rapid and healthy growth of these vital sectors. These

investments have to be made for the country to enjoy the

demographic dividend of a young population.

`

I believe that demand for housing in India will remain robust

for many years, with the overall standard of living improving

and rapid growth expected to continue. Every Indian deserves

a pakka house over his head and it is sad that penetration of

pakka houses is just about 17%. A house goes a long way in

building not only a physically healthy community but also an

emotionally secure one.

The risk of real estate sector needs to be carefully evaluated.

Prices have doubled only in certain pockets of Mumbai and

Delhi. In the rest of the country, the real estate prices remain

reasonable and affordable and in fact quite competitive. The

real estate sector is important to meet the requirements of

affordable housing as well as for key social infrastructure

facilities and healthcare. It is important to take a wholistic

view on the investment flow to real estate which goes towards

security purpose and social purposes.

In our endeavours to grow our portfolio, we will not

compromise on risk. Your company has built the asset book

steadily without taking undue risk and instead focusing on our

core strength of retail distribution. Our risk management

techniques have been robust and are reflected in the net NPA

being less than 1% of the overall portfolio. We will continue to

invest in risk management, audit and training of our most

important asset, our people.

In spite of short term challenges of rising interest rates, the

long term potential of our business is immense and we will

take all steps to ensure that we grow our book with focus on

building a quality asset portfolio and thus enhance

shareholder's value.

Chairman

A. K. Purwar

The confidence in India's future growth is founded on favourable demographics - a

rapidly expanding young population with a propensity to earn more and spend

well. With a large number of new young wage earners, there is a big latent demand

for credit as well, due to changing mindset and availability of opportunities.


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NBFCs also have the unique

ability to handle small amounts

of cash disbursals and cash

collections. For the economy

which is on rapid growth path,

the need for financing different

types of risks will continue.

Given their size, scale and

complexity, NBFCs play a nation-

building role as it facilitates

various economic activities by

making credit available.

A. K. Purwar, Non-Executive Chairman, IIISL

CORPORATE IDENTITY


VISIONTo become the Most Respected Company in the financial services space in India.

Team IIFL adheres to a set of values that can be summarized as GIFTS, namely, Growth, Integrity, Fairness, Transparency and Service

VALUES

GROWTH

We are driven to grow faster than the rest of the industry. The

culture therefore encourages calculated risks and

empowerment at all levels.

We ensure utmost honesty and integrity, in letter and in spirit,

in all our dealings with people – internal or external.

We believe in fair dealings, devoid of any fear or favor, with all

stakeholders including employees, customers and vendors.

INTEGRITY

FAIRNESS

TRANSPARENCY

We believe in as much transparency as practically possible, with

our stakeholders, media and public at large.

We are a service organization, committed to delight our

customers with superior advice and service, delivered with

humility and sincerity.

SERVICE

IIISL OverviewIIISL, a subsidiary of India Infoline Limited (IIFL) is registered with Reserve Bank of India as a Non Banking Finance Company

IIFL Group

3000+Business locations

across India

1+ million customers

across various businesses

10,000+India Infoline team

as on March 31, 2011FILINGS AND LISTINGS

COMPREHENSIVE PORTFOLIO

IIFL subsidiaries – India Infoline Investment Services and Moneyline Credit Limited – are registered with the RBI as non-deposit taking,

non-banking financial services companies. India Infoline Housing Finance Ltd, the housing finance arm, is registered with the National

Housing Bank.

Received RBI license for undertaking NBFC activities and

commenced business

Launched Gold loans

2010

- IIISL became a public limited company

- IIISL acquired Moneyline Credit Limited, an NBFC and

commenced consumer loan business

- Acquired registration for Housing Finance business from NHB

- Mr A K Purwar, ex-SBI chairman joined the Board and appointed as

Chairman of IIISL- Preferential Allotment to Orient Global Tamarind Fund Pte. Ltd.,

Singapore, an FII

2009

200720052004IIFL incorporated India Infoline

Investment Services Limited as a private limited company to

undertake financing activities

2011Launched Medical Equipment

financing

SO FAR...

Retail Broking Institutional Equities Commodities and Currency Broking Credit and Finance

Wealth Advisory Asset Management Financial Products Distribution Investment Banking

PRODUCT PORTFOLIO

Home Loans, Loans against Property•

•

•

•

Tenure: home loans upto 20 years, loans against property upto 15 yearsUpto 80% of value available for home loans, 65% for loans against propertyRepayment through EMIs, or other specially customised repayment schemesBalance transfers of existing loans obtainable, with additional cash in hand

Healthcare Finance•

••••

Loans upto 85% of the cost of equipment, starting at ` 500,000. Tenure from 12 to 72 months

Funding for medical and ancillary equipmentProject finance and receivable financing availableHospital construction and infrastructure financeLeasing and advisory services. Choice of personal loans for doctors

Loans against Shares•

•

•••

Loans upto ` 180 crores. Tenure: 3 to 12 months. Competitive interest rates, Funding against both diversified and concentrated securitiesUpto 600 approved Securities and Mutual Fund unitsMargins vary from 25% to 50% depending on securitiesFlexible margin financing and IPO funding schemes also available

Gold Loan•••••

Cash against gold in 5 minutes flatLoans from ̀ 10,000 to 1,000,000Attractive interest ratesChoice of EMIs, or interest service optionsFlexible tenure, according to your requirements

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SPREADING THE LIGHT OF FINANCIAL LITERACY


SPREADING THE LIGHT OF FINANCIAL LITERACY


FLAME

(Financial Literacy Agenda for Mass Empowerment)

a. Financial awareness workshops across cities and

towns all over India

FLAME is IIFL's unique CSR initiative disseminating knowledge

for financial literacy among the masses. Financial literacy can

aid financial inclusion, which can result in long term

sustainable growth and poverty alleviation. FLAME was

launched by Dr K C Chakrabarty, Deputy Governor, RBI and Mr

Deepak S Parekh, Chairman, HDFC at a function attended by

the leading luminaries from the financial service space. As a

part of the FLAME initiative, IIFL has planned an elaborate set

of activities, which comprise:

As a part of this initiative, IIFL has been organizing

financial awareness workshops all over India. Here our

expert speakers spread financial literacy by disseminating

knowledge about various financial products and the

associated risks and returns.

b. A comprehensive mass media campaign

c. Books and publications

d. Financial awareness helpline

The idea is to convey the various concepts which are a part

of the literacy drive in an easy-to-grasp way. A daily

campaign using cartoon illustrations, facilitating faster

comprehension and assimilation is underway in leading

publications.

Multiple publications are planned which would seek to

highlight the various concepts of finance as a part of this

initiative. Our first book called '108 mantras for Financial

Success' targeted at small investors is now available at

multiple bookstores across the nation. The publication is

also distributed at the workshops held is various cities.

IIFL will setup a helpline, in our own call center, where anyone

can call up and get answers to their queries pertaining to

financial services. This helpline, manned by IIFL's trained

professionals, will provide a solution to such queries. We are

also using sms and social media to reach out to people all

over the country and address their queries.

e. FLAME portal - www.flame.org.in,

f. Tie-ups with educational institutes

g. Leaderspeak

is a dedicated to the

cause of spreading financial literacy. This portal carries

concepts of financial literacy and awareness and is equipped

with innovative features like 'chat with a FLAME-bearer'

where users can direct their queries to IIFL's financial

experts for resolution. The website is rapidly becoming

popular by virtue of its rich content.

IIFL will tie-up with educational institutes including B -

Schools across the country to deliver guest lectures. The

objective of this is to educate the investors of tomorrow, today.

These will be financial awareness workshops where we will

get industry luminaries to interact with the audience to

explain the various concepts in the field of finance and

investing.

Financial Literacy Campaign in leading newspapers IIFL publication - ‘108 Mantras for Financial Success’

Dr. K C Chakrabarty, Deputy Governor, RBI

Launch of FLAME Campaign by FLAME

Mr. Deepak Parekh, Chairman, HDFC

Launch of the FLAME book

IIFL FLAME Meet at Bhavnagar, GujaratFLAME portal www.flame.org.in is dedicated

to the cause of spreading financial literacy

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FLAME - An IIFL Group Initiative

BUSINESS DISCUSSION

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Credit and Finance

INDIAN CONSUMER LENDING MARKETDespite the rapid growth of the financial services, India

remains an under-penetrated market in terms of credit

penetration.

India has a large and rapidly growing middle class with

increasing levels of discretionary income available for

consumption and investment purposes. As investments

among Indian consumers increase, the available credit in India

has correspondingly increased. The last five years have seen

not only a great expansion of the Indian economy but also a

great expansion of consumer lending. Previously, Indian

consumers were averse to the concept of using credit to fund

purchases and preferred to save prior to spending. Today, with

a variety of consumer credit products being widely available,

Indian consumers are more willing to acquire assets through

borrowing.

The consumer credit market in India has undergone a

significant transformation over the last decade and

experienced rapid growth due to consumer credit becoming

cheaper, more widely available and increasingly a more

acceptable avenue of funding for consumers. The market has

changed dramatically due to the following factors:

1. Increasing desire by customers to acquire assets such as

cars, consumer durables and houses on credit.

2. Fast emerging middle class and growing number of

households who are credit worthy.

3. Improved terms of credit as interest rates in India fell

sharply during early and mid-2000s and further reduced

interest rates offerings for sophisticated products.

4. Legislative changes that offer greater protection to lenders

against fraud and potential default increasing the incentive

to lend.

5. Growth in assignment and securitisation arrangements

for consumer loans has enabled non-deposit based

entities to access wholesale funding and compete in the

market based on ability to originate, underwrite and

service consumer loans.

of players in the non-banking financial services

space. Non-banking financial companies asset base

have grown rapidly over the last few years (27%

CAGR between FY07 and FY11). A rapidly growing

economy is likely to create strong demand for credit

from small businesses and consumers. A

combination of growing demand and lack of

adequate focus from commercial banks on these

banks is likely to create significant growth

opportunity for NBFC.

NBFCs are an integral part of the country's financial

system, catering to a large market of niche

customers, and have emerged as one of the major

purveyors of retail and SME credit in India. It is a

heterogeneous group of institutions (other than

commercial and co-operative banks) performing

financial intermediation in a variety of ways, such

as accepting deposits, making loans and advances,

providing leasing/hire purchase services, among

others. There are over 12,000 NBFCs in India,

(Source: Reserve Bank of India, Annual Report,

August 2009) mostly in the private sector.

Opportunity landscape for NBFC spans across

many products ranging from secured to unsecured

products. Opportunity within each segment

remains significantly large given the current level of

penetration (ranging from <1% to 9% of GDP). The

potential market opportunity could be as high as

5%-10% of GDP in each product segment.

Opportunity in the mortgage market remains very

large. Mortgage loans/ GDP ratio stands at 9% in

FY10 (Source: IMF, European Mortgage Federation).

There is significant opportunity to grow this market

driven by huge demand and supply mismatch for

dwelling units, rising income levels and favourable

affordability. Mortgage market has sustained over

25% CAGR over the last 10 years. Given the latent

demand for mortgages, loan growth could be

HOUSING FINANCE SECTOR

Despite high loan growth in consumer financing, it remains an

under-penetrated market. We believe demand for consumer

loans will increase going forward in view of household gearing

remaining low and disposable income continues to rise rapidly.

Commercial banks play a dominant role in the financial

services landscape by virtue of their wide distribution set up,

ability to raise cheap retail deposits through brand identity.

However, a majority of the commercial banks have maintained

their focus in lending on industrial and corporate loans. As a

result, lending to small business and consumer has always

remained a smaller share of their overall lending portfolio.

Lending by Banks to small business and consumer declined

from 32% in FY08 to 27% in Fy11.

Commercial banks share in business and consumer lending

3334 34

3230

27 27

FY05 FY06 FY07 FY08 FY09 FY10 FY11

(in %) Source: RBI

LOAN AGAINST PROPERTYLoan against property is a secured avenue for lending to small businesses

against their working capital and or project finance needs. The

estimated outstanding volume of loans by way of loan against property

stood at ` 240 bn as at end March 2011. The opportunity landscape is

very large given that small businesses do not get adequate flow of credit

from the commercial banks but make a significant contribution to the

economic growth. According to Annual Survey of Industries estimate

for 2008-09 published by Ministry of Statistics and Program

Implementation, firms with capital invested with ` 100 mn or below

accounted for 21% of the capital invested by industry and 31% of the

value of output. Bank financing accounted for less than 20% of the

invested capital of these firms.

sustained at historical levels. The focus of most lenders in mortgage

lending is confined to salaried urban middle to high income segments. The

opportunity could be significantly expanded if the players were to focus

on self employed segments as well. If the market landscape were to be

expanded, potential growth rate could be even higher.

Mortgage Loans/ GDP ratio

Source: European Mortgage Federation, 2010, World Bank, 2010

India

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USA

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9%

17%20%

26%29% 32%

39% 41%

48%

81%84%

95%

NON-BANKING FINANCE COMPANIES

(NBFCS)Under-penetrated and rapidly growing opportunities in small

business and consumer lending has lead to heralding a new set

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LOAN AGAINST CAPITAL MARKET

INSTRUMENTS

GOLD LOAN MARKET

Loan against security is yet another avenue for lending to

corporates, HNIs, individuals for financing their capital market

exposures as well as households to tide over their financing

gaps that arise from time to time. Potentially, this could be a

significant opportunity given that many small and medium

enterprises aspire to grow large. This product effectively serves

the purpose of providing bridge financing for asset acquisition

as well as infusion of capital into new ventures. There is no

estimate of potential market available, however, given the role

that small businesses play in the overall economic

development, this would likely be a huge opportunity.

India is one of the largest markets for gold. The organised gold

loan market has grown from ` 416 bn in 2009 to ` 616 bn in

RETAIL FINANCE DISBURSEMENTS

Car finance Utility vehicles 2 Wheelers CVs

Mortgages Credit cards Personal loans Consumer durables

` 2.5 tn55.3%

8.2%3.2%

0.7%

12.6%

3.7%3.5%

12.8%

` 4.2 tn 55.5%

8.4%2.7%0.9%

12.9%

3.9%

3.2%12.5%

FY10 FY12E

BRIEF SNAPSHOTIndia Infoline Investment Services Ltd (a 98.82% subsidiary of IIFL) and its subsidiaries provide a wide array of secured loan products. The

Company offers home loans, loans against property and loans against shares / debentures. The Company has recently launched gold loans

and medical equipment financing.

IIFL's robust credit and risk management processes have resulted in less than 1% NPAs. The Company has deployed proprietary loan-

processing software that enables stringent credit checks and fast application processing.

`32.9 bn Loan book doubled

during the year

<1%Less than one percent

NPAs indicates a healthy loan book

MAJOR HIGHLIGHTS, 2010-11•

•

•

•

CORE COMPETENCIES•

•

•

•

The loan book more than doubled during the year to ̀ 32.9 bn in

FY11 from ̀ 16.3 bn in FY10

Home loans and loans against property contributed 60% of the

loan portfolio, while capital market products contributed 35%.

Our unsecured portfolio of personal loans is 1% of the total

portfolio. Our personal loans business was discontinued in

2008.

Launched healthcare financing, which includes project

financing for brown field health projects, medical equipment

and ancillary equipment finance and refinance on existing

equipment. The loans are given to doctors, clinics, nursing

homes, diagnostic centres and hospitals.

Also launched gold loans during the year

Experienced team of professionals with work experience at

globally respected financial houses

Well spread out, pan India distribution network and a large

client base gives cross sell opportunities.

Sound credit management system and procedures, and a

resultant quality portfolio with less than 1% NPAs

Centralised credit and finance operations with connectivity to

every branch and office, facilitating efficient and smooth loan

servicing.

FUTURE ROAD MAP •

•

Expand the recently launched healthcare and gold loans

portfolio

Strengthen customer relationships for upsell and cross

sell opportunities

Performance Overview

PORTFOLIO BREAK-UP

42%

16%

36%

6%

FY10 FY11

` 32.9 bn` 16.3 bn 60%

16%

19%1%

4%

Mortgage Loan LAS/ Debentures Margin Funding

Personal Loan Others

2010. It is expected to witness a 35% CAGR between 2009-

12. (Source: IDFC Indian Retail Finance). Indian consumers

have a strong preference for gold that emanates from cultural

factors. Further, low level of financial inclusion and poor access

to financial products and services make gold a safe and

attractive investment proposition.

Driven by various catalysts such as increasing population,

rising income levels, changing demographics, and illness

profiles with a shift from chronic to lifestyle diseases,

Healthcare industry is expected to witness a strong growth

of 23% p.a. to become a US$ 77 Bn industry by 2012.

(Source: Yes Bank ASSOCHAM: Healthcare Services in India.

2012: The path ahead)

HEALTHCARE FINANCING MARKET

Source: IDFC Research Report

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LOAN AGAINST CAPITAL MARKET

INSTRUMENTS

GOLD LOAN MARKET

Loan against security is yet another avenue for lending to

corporates, HNIs, individuals for financing their capital market

exposures as well as households to tide over their financing

gaps that arise from time to time. Potentially, this could be a

significant opportunity given that many small and medium

enterprises aspire to grow large. This product effectively serves

the purpose of providing bridge financing for asset acquisition

as well as infusion of capital into new ventures. There is no

estimate of potential market available, however, given the role

that small businesses play in the overall economic

development, this would likely be a huge opportunity.

India is one of the largest markets for gold. The organised gold

loan market has grown from ̀ 416 bn in 2009 to ̀ 616 bn in

RETAIL FINANCE DISBURSEMENTS

Car finance Utility vehicles 2 Wheelers CVs

Mortgages Credit cards Personal loans Consumer durables

` 2.5 tn55.3%

8.2%3.2%

0.7%

12.6%

3.7%3.5%

12.8%

` 4.2 tn 55.5%

8.4%2.7%0.9%

12.9%

3.9%

3.2%12.5%

FY10 FY12E

BRIEF SNAPSHOTIndia Infoline Investment Services Ltd (a 98.82% subsidiary of IIFL) and its subsidiaries provide a wide array of secured loan products. The

Company offers home loans, loans against property and loans against shares / debentures. The Company has recently launched gold loans

and medical equipment financing.

IIFL's robust credit and risk management processes have resulted in less than 1% NPAs. The Company has deployed proprietary loan-

processing software that enables stringent credit checks and fast application processing.

`32.9 bn Loan book doubled

during the year

<1%Less than one percent

NPAs indicates a healthy loan book

MAJOR HIGHLIGHTS, 2010-11•

•

•

•

CORE COMPETENCIES•

•

•

•

The loan book more than doubled during the year to ̀ 32.9 bn in

FY11 from ̀ 16.3 bn in FY10

Home loans and loans against property contributed 60% of the

loan portfolio, while capital market products contributed 35%.

Our unsecured portfolio of personal loans is 1% of the total

portfolio. Our personal loans business was discontinued in

2008.

Launched healthcare financing, which includes project

financing for brown field health projects, medical equipment

and ancillary equipment finance and refinance on existing

equipment. The loans are given to doctors, clinics, nursing

homes, diagnostic centres and hospitals.

Also launched gold loans during the year

Experienced team of professionals with work experience at

globally respected financial houses

Well spread out, pan India distribution network and a large

client base gives cross sell opportunities.

Sound credit management system and procedures, and a

resultant quality portfolio with less than 1% NPAs

Centralised credit and finance operations with connectivity to

every branch and office, facilitating efficient and smooth loan

servicing.

FUTURE ROAD MAP •

•

Expand the recently launched healthcare and gold loans

portfolio

Strengthen customer relationships for upsell and cross

sell opportunities

Performance Overview

PORTFOLIO BREAK-UP

42%

16%

36%

6%

FY10 FY11

` 32.9 bn` 16.3 bn 60%

16%

19%1%

4%

Mortgage Loan LAS/ Debentures Margin Funding

Personal Loan Others

2010. It is expected to witness a 35% CAGR between 2009-

12. (Source: IDFC Indian Retail Finance). Indian consumers

have a strong preference for gold that emanates from cultural

factors. Further, low level of financial inclusion and poor access

to financial products and services make gold a safe and

attractive investment proposition.

Driven by various catalysts such as increasing population,

rising income levels, changing demographics, and illness

profiles with a shift from chronic to lifestyle diseases,

Healthcare industry is expected to witness a strong growth

of 23% p.a. to become a US$ 77 Bn industry by 2012.

(Source: Yes Bank ASSOCHAM: Healthcare Services in India.

2012: The path ahead)

HEALTHCARE FINANCING MARKET

Source: IDFC Research Report

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BOARD OF DIRECTORS


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Mr. A. K. Purwar (Non Executive

Chairman)

Mr. Nirmal Jain (Director)

Mr. Purwar is the Chairman of

IndiaVenture Advisors Pvt. Ltd.,

IL&FS Renewable Energy Limited and

India Infoline Investment Services

Ltd. He is working as an Independent

Director in leading companies in

Telecom, Steel, Textiles, Power, Auto

components, Renewable Energy,

Engineering Consultancy, Financial Services and Healthcare

Services. He is an Advisor to Mizuho Securities in Japan and is

also a member of Advisory Board for Institute of Indian

Economic Studies (IIES), Waseda University, Tokyo, Japan.

Mr. Purwar was the Chairman of State Bank of India, the largest

bank in the country from November '02 to May '06 and held

several important and critical positions like Managing Director

of State Bank of Patiala, CEO of the Tokyo branch, covering

almost the entire range of commercial banking operations in

his illustrious career at the bank from 1968 to 2006. Mr.

Purwar also worked as Chairman of Indian Bank Association

during 2005 – 2006.

He is also the recipient of several awards like “CEO of the year”

Award from the Institute for Technology & Management

(2004); “Outstanding Achiever of the year” Award from Indian

Banks' Association (2004); “Finance Man of the Year” Award

by the Bombay Management Association in 2006.

Mr. Nirmal Jain is the founder and

Chairman of India Infoline Ltd. He is a

PGDM (Post Graduate Diploma in

Management) from IIM (Indian

Institute of Management) Ahmedabad,

a Chartered Accountant and a Cost

Accountant. His professional track

record is equally outstanding. He

started his career in 1989 with

Hindustan Lever Limited, the Indian

arm of Unilever. During his stint with Hindustan Lever, he

handled a variety of responsibilities, including export and trading

He is elected member of the Central Council of Institute of

Chartered Accountant of India (ICAI), the Apex decision

making body of the second largest accounting body in the

world, 2010–2013. He is Chairman of its Research Committee,

Vice Chairman of its Corporate Laws & Corporate Governance

Committee and member of its various other committees.

He is Representative of the ICAI on the Committee for

Improvement in Transparency, Accountability and Governance

(ITAG) of South Asian Federation of Accountants (SAFA) and

also on Committee constituted by Ministry of Corporate

Affairs (MCA) on issues of applicability of Foreign Investments

in LLPs.

He is member of Review, Reforms & Rationalization

Committee (IMC), Member of Legal Affairs Committee of

Bombay Chamber of Commerce and Industry (BCCI), member

of Accounting and Auditing Committee of Bombay Chartered

Accountant Society (BCAS) and also on its Core Group,

Corporate Members Committee of The Chamber of Tax

Consultants (CTC) and a Regular Contributor to WIRC Annual

Referencer on "Bank Branch Audit".

Mr. Vikamsey is also a Director of India Infoline Investment

Services Limited, Rodium Realty Limited, ICAI Accounting

Research Foundation and few private limited companies and

Trustee in Sayagyi U Ba Khin Memorial Trust (Vipassana

International Academy) and a few Trusts focusing on

education.

Mr. Mahesh Narayan Singh is an

Independent Director of India

Infoline Investment Services Limited.

He holds a Post-Graduate degree in

Physics from Banaras Hindu

University. Mr. Singh Joined the

'Indian Police Service' in 1967. He has

worked as the chiefs of the crime

branch of Mumbai Police, State CID

and Anti-Corruption Bureau. Mr. Singh received his initial

training at the National Academy of Administration,

Mr. Mahesh Narayan Singh,

(Independent Director)

in agro-commodities. He contributed immensely towards the

rapid and profitable growth of Hindustan Lever's commodity

export business, which was then the nation's as well as the

Company's top priority.

He founded Probity Research and Services Pvt. Ltd. (later re-

christened IIFL) in 1995; perhaps the first independent equity

research Company in India. His work set new standards for

equity research in India. Mr. Jain was one of the first

entrepreneurs in India to seize the internet opportunity, with

the launch of www. indiainfoline.com in 1999. Under his

leadership, your Company not only steered through the

dotcom bust and one of the worst stock market downtrends

but also grew from strength to strength.

R Venkataraman, Co-promoter and

Managing Director of IIFL Group, has

over two decades of experience in the

financial services space. A B.Tech

( E l e c t ro n i c s a n d E l e c t r i c a l

Communications Engineering, IIT

Kharagpur) and an MBA (IIM

Bangalore), he previously held senior

managerial positions in ICICI Group,

BZW, Taib Capital and GE Capital

India, before joining the India Infoline board in July 1999. He

spear-headed India Infoline Ltd's entry into the online broking

space in 2000 and has today steered the company to become

one of the leading players in the Indian financial services space.

Mr. Nilesh Vikamsey - Board Member

since February 2005 - is a practicing

Chartered Accountant for 25 years

and Senior Partner at M/s Khimji

Kunverji & Co. Chartered Accountants,

a member firm of HLB International, a

wor ld-wide o rgan iza t ion o f

professional accounting firms and

business advisers, ranked amongst

the top 12 accounting groups in the world.

Mr. R. Venkataraman (Director)

Mr. Nilesh Vikamsey (Independent

Director)

Mussoorie and the National Police Academy, Mount Abu.

Subsequently, government deputed him for a course in 'Senior

Command Management' in UK and a training programme in

'Disaster Management' in USA. In his long years of service

under the government, Mr. Singh held many important

positions in the police as well as in the ministry and acquired

rich experience in public administration, law enforcement and

corporate management. Mr. Singh has vast experience in

handling all types of crimes, especially organized crime,

economic offences and international terrorism. He has worked

closely with the Central Agencies at the head of 'Special Task

Force' to investigate serious crimes having national and

international ramifications. Mr. Singh also had a long stint in

the government as a Joint Secretary and as Managing Director

of Police Housing Corporation.

Mr. Singh retired from the highest rank of Director General of

Police at the end of a distinguished career in public service

spanning over a period of 35 years. His services were

recognized by the Government of India with the award of

'Indian Police Medal' for meritorious services and 'President's

Police Medal' for distinguished services.

Ms. Pratima Ram is a Whole Time

Director of our Company. She joined

the Board of our Company in May

2011. She holds a Masters Degree in

Arts from University of Virginia.

Prior to joining our Company, she

held various senior management

positions in State Bank of India

including those of country head of State Bank of India's

United States Operations based in New York. She has

worked as CEO of South Africa Operations of SBI, based in

Johannesburg. She has also headed Mergers & Acquisitions

at SBI Capital Markets and has worked with Punj Loyyds as

Group President - Finance.

Ms. Pratima Ram, (Wholetime

Director & Chief Executive

Officer)

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Dear Members,

Your Directors have pleasure in presenting the Seventh Annual Report of your Company with the audited financial statements for the

financial year ended March 31, 2011

Standalone Financial Results

Consolidated Financial Results

(` )in mn

Particulars 2010 – 2011 2009 – 2010Gross Total Income 5194.9 2,339.6Less: Expenditure (3854.5) (1,573.6)Profit /(Loss) Before Taxation 1340.5 766.0Less: Taxation - Current 427.6 210.1

- Deferred (22.3) 14.6- Short Provision of Tax for earlier year 12.7 3.4

Net Profit / (Loss) After Tax 922.5 537.9

(` )in mn

Directors’ Report

Review of Business

Your Company's product offerings include margin funding, loan

against shares, promoter funding, loan against commercial and

residential property, gold loans and healthcare equipment

financing.

Your Company's loan book doubled during the year to `32.9 bn

from ̀ 16.3 bn in 2009-10. Home loans and loan against property

contributed 60% of the loan portfolio, while capital market

products contributed 35%. Our unsecured portfolio of

personal loans, which was discontinued in 2008, stood at 1%

of our total portfolio.

On a consolidated basis, your Company's income significantly

increased by 122.04% to ̀ 5194.9 mn and profit after tax increased

by 71.5% to ̀ 922.5 mn during the year.

The growth in loan book in the current year was driven by the

Company's capability to originate retail and wholesale assets

against collateral of property through its nationwide distribution

network and quick turnaround in the economic and credit

environment. The loan against securities book tends to be more

volatile depending on capital market sentiment.

During the year, your Company launched healthcare financing,

which includes project financing for brown field health projects,

medical equipment and ancillary equipment finance and refinance

on existing equipment. The loans are given to doctors, clinics,

nursing homes, diagnostic centers and hospitals. Your Company

also launched gold loans during the year. Going forward, your

Company expects to expand the recently launched healthcare

and gold loans portfolio and strengthen customer relationships

for upsell and cross sell opportunities.

Compared to other NBFCs in the peer group, your Company's

balance sheet is relatively under- leveraged and hence has capacity

to meet funds requirement for growth in the near future without

resorting to fresh equity capital.

Transfer to Reserve

During the year 2010-11, your Company transferred 20% of the

net profit amounting to ` 166 mn to Special Reserve as required

under the provisions of Section 45 IC of The Reserve Bank of India

Act, 1934. Further, your Company proposes to transfer ̀ 83 mn to

the General Reserve out of the amount available for appropriations

pursuant to Companies (Transfer of Profit to Reserves), 1975.

Dividend

During the year 2010-11, your Company declared and paid

interim dividend of `5 per equity share (face value of `10

each). The total outflow on account of dividend payout

(including dividend distribution tax and surcharge) was

`13.82 crore. The same is considered as final.

Bonus Shares

During the 2010-11, your Company issued 9 (nine) bonus

shares of ̀ 10 each for every 1 (one) share held. As a result the

paid up equity share capital of your Company had increased to

`237,15,40,300 divided into 23,71,54,030 equity shares of

`10 each.

Deposits

Your Company has not accepted any Deposits within the

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

Rules made thereunder.

Risk Management & Internal Controls

Your Company has a multi level Credit & Investment

Committees consisting of directors of the board/ HODs to

consider credit and investment proposals. The major credit

proposals are formally evaluated and approved by various

committees. We have in place the Risk Management

Committee and Asset Liability Management Committee

(ALCO) consisting of directors and senior officials which

regularly meets and reviews the policies, systems, controls

and positions of credit and finance business. The risk

committee reviews the risk management processes covering

credit and underwriting controls, operations, technology,

compliance risks, etc. The ALCO committee involves in

balance sheet planning from risk return perspective including

the strategic management of interest rate and liquidity risk.

Towards this end, the ALCO committee reviews product

pricing for various loans and advances, desired maturity profile

and mix of the incremental asset and liabilities. It reviews the

funding policies of your Company in the light of interest rate

movements and desired fund mixes particularly fixed/ floating

rate funds, wholesale/ retail funds, money market funding etc.

from time to time.

Your Company has invested in ensuring that its internal audit

and control systems are adequate and commensurate with the

nature of our business and the size of our operations. Your

Company has retained a reputed global firm Ernst & Young as

its Group Internal Auditor. Your Company also retains a few

specialized Audit firms to carry out specific/ concurrent audit

of some critical functions such as KYC process, branches

audits, loan documentations audits etc. Your Company also

has an internal team of professionals at head office in Mumbai,

supported by regional teams at zonal offices. The internal

team undertakes some special situation audits and follows up

on implementation of Internal Auditors' recommendations.

The Auditors' reports and recommendations and

rectifications/ implementations are reviewed by the top

management and Audit Committee at regular intervals. The

internal processes have been designed to ensure adequate

checks and balances at every stage. The processes are

reviewed periodically by Internal Auditors as well as Audit

Committee and amended as required. Your Company also has

to comply with several specific audits that are required by

regulatory authorities and the reports are submitted to the

regulators periodically.

Corporate Governance

Your Company has fully complied with the Corporate

Governance Guidelines for NBFCs issued by Reserve Bank of

India vide circular No. DNBS (PD) CC No. 94/ 03.10.042/

2006-07 dated May 8, 2007. In accordance with the said

Corporate Governance Guidelines, your Company has put in

place the following committees and ensures best corporate

practices to increase the investors and other stakeholders

confidence.

Audit Committee

a) Mr Nilesh Vikamsey (Chairman & Independent Director)

b) Mr M N Singh (Independent Director)

c) Ms Pratima Ram

d) Mr Kapil Krishan

Nomination Committee

a) Mr M N Singh (Independent Director)

b) Mr Nilesh Vikamsey (Independent Director)

c) Mr Nirmal Jain

d) Mr R Venkataraman

Risk Management Committee

a) Mr A K Purwar (Non Executive Chairman)

b) Mr Nilesh Vikamsey (Independent Director)

c) Mr Nirmal Jain

d) Mr L P Aggarwal

Assets and Liabilities Committee

a) Mr A K Purwar (Non Executive Chairman)

b) Mr Nirmal Jain

c) Ms Pratima Ram

d) Mr L P Aggarwal

e) Mr Kapil Krishan

All the above Committees regularly meets and reviews the

policies and status.

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Particulars 2010 – 2011 2009 – 2010Gross Total Income 4519.0 1,650.4Less: Expenditure (3324.6) (987.9)Profit /(Loss) Before Taxation 1194.4 662.5Less: Taxation - Current 380.5 185.9

- Deferred (22.9) (1.6)- Short Provision of Tax for earlier year 10.2 2.7

Net Profit / (Loss) After Tax 826.6 475.5

DIRECTORS’ REPORT

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Regulatory Compliance

Your Company has complied with all the applicable guidelines

prescribed by RBI for NBFCs regarding accounting standards,

income recognition, capital adequacy, guidelines on Corporate

Governance etc.

Capital Adequacy

As a result of the increased net worth, your Company was able

to enhance the Capital to Risk Assets Ratio (CRAR) to 29.95%

as on March 31, 2011, which is well above CRAR of 15%

prescribed by the Reserve Bank of India.

Directors

In accordance with the provisions of Section 255 and 256 of

the Companies Act, 1956 and in terms of applicable provisions

of the Articles of Association of the Company, Mr. Nilesh

Vikamsey, Director of your Company retires by rotation and

being eligible, offers himself for re-appointment.

Pursuant to the provisions of Section 260 and in terms of

Section 269 and other applicable provisions of the Companies

Act, 1956, Mr. Kapil Krishan was appointed as an Additional

Director designated as Whole Time Director on October 23,

2010. Your Company has received a notice from a Member

under Section 257 of the Companies Act, 1956, proposing the

name of Mr. Kapil Krishan for appointment as a Whole Time

Director of your Company for a period of five years. Also, Ms.

Pratima Ram was appointed as a Whole Time Director

designated as Whole Time Director & Chief Executive Officer

on May 07, 2011.

A proposal to seek your approval for appointment of Ms.

Pratima Ram as Whole Time Director & Chief Executive Officer

and Mr. Kapil Krishan as Whole time Director is provided in the

Notice of the forthcoming Annual General Meeting.

Directors' Responsibility Statement

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

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

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

accounting standards, have been followed

(b) the Board of Directors have selected the accounting

policies and applied them consistently and made

judgments and estimates that are reasonable and prudent

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

company at the end of the financial year and of the Profit of

the company for that period.

c) the Board of 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 your company and

preventing and detecting fraud and other irregularities.

(d) the Board of Directors have prepared the annual accounts

on a going concern basis

Auditors

M/s Sharp & Tannan Associates, Chartered Accountants,

Statutory Auditors of your Company retire at the conclusion of

the ensuing Annual General Meeting and being eligible offers

themselves for re-appointment. Certificate under Section

224(1B) has been obtained from M/s Sharp & Tannan

Associates, to the effect that they are eligible to be appointed

as the Statutory Auditors of your Company.

Your Board and Audit Committee recommends appointment of

M/s Sharp & Tannan Associates as the Statutory Auditors of

the Company to hold office from this Annual General Meeting

to the next Annual General Meeting.

Subsidiaries

As on March 31, 2011, your Company has following three

subsidiaries:

a) India Infoline Housing Finance Limited

b) Moneyline Credit Limited

c) India Infoline Distribution Company Limited

Pursuant to the general exemption granted by the Ministry of

Corporate Affairs vide circular dated February 8, 2011, the

Board of Directors had at their meeting held on May, 7, 2011

approved attaching the consolidated financials of all the

subsidiaries of the Company along with that of the Company.

The copies of the Balance Sheet, Profit and Loss Account,

Report of the Board of Directors and Report of the Auditors of

each of the subsidiary Companies are not attached to the

accounts of the Company for financial year 2010-11. Your

Company will make available these documents/details upon

request by any member of the Company. These

documents/details will also be available for inspection by any

member of the Company at its registered office and also at the

registered offices of the concerned subsidiaries. As required by

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

Chartered Accountants of India, the Company's consolidated

financial statements included in this Annual Report

incorporates the accounts of its subsidiaries.

Conservation of Energy, Technology Absorption and

Foreign Exchange Earnings and Outgo

The Disclosure of Information on Conservation of Energy,

Technology Absorption etc, required to be disclosed in terms

of section 217 (I) (e) of the Companies Act, 1956 read with the

Companies (Disclosure of Particulars in the Report of the

Board of Directors) Rules, 1988 have not been given since your

Company is engaged in financial services industry, and has not

carried on any manufacturing activity. The operations of the

Company are not energy intensive. However it is the policy of

the management to keep itself abreast of technological

developments in the field in which the Company is operating

and to ensure that the Company uses the most suitable

technology.

The Company had no foreign exchange earnings and outgo

during the year.

Particulars of Employees

In terms of provisions of Section 217 (2A) of the Companies

Act, 1956, read with the Companies (Particulars of

Employees) Rules, 1975, the names and other particulars of

employees are set out in the Annexure to the Directors'

Report.

Acknowledgements

Your Directors take this opportunity to thank the Reserve Bank

of India, Banks and Financial Institutions and other

stakeholders for their continued support and assistance

during the period under review. Your Directors would also like

to thank the employees for their dedication towards the

growth of the Company.

For and on behalf of the Board

A K Purwar

Non Executive Chairman

Dated: May 07, 2011

Place: Mumbai

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India Infoline Investment Services Limited

We have audited the attached Balance Sheet of India Infoline

Investment Services Limited as on March 31, 2011, the Profit

and Loss Account and also the Cash Flow Statement for the

period 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 have conducted our audit in accordance with the 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 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. In accordance with the

provisions of Section 227 of the Companies Act, 1956, we

report that:

1. As required by the Companies (Auditor’s Report) Order,

2003, issued by the Central Government of India under

sub-section (4A) of Section 227 of the Companies Act,

1956, and on the basis of such checks of books and records

of the Company as we considered appropriate and

according to the information and explanations given to us,

we enclose in the Annexure a statement on the matters

specified in paragraphs 4 and 5 of the said Order.

2. 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 purpose 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 the books;

iii) The Balance Sheet, Profit and Loss account and also

The Members,

Auditors’ Report

the

in agreement with the books of account;

iv) In our opinion, the balance sheet, profit and loss

account and also 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;

v) On the basis of written representations received by the

company from its Directors as on March 31, 2011 and

taken on record by the Board of Directors, we report

that none of the director is disqualified as on March 31,

2011 from being appointed as a Director in terms of

the clause (g) of sub-section (1) of Section 274 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 to accounts,

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;

a. in case of balance sheet, of the state of affairs of

the company as at March 31, 2011;

b. in case of profit and loss account, of the profit for

the year ended on that date; and

c. in case of the Cash Flow Statement, of the cash

flows for the year ended on that date.

Sharp & Tannan Associates

Chartered Accountants

ICAI Registration No.109983W

By the hand of

Tirtharaj Khot

Place: Mumbai Partner

Date: May 07, 2011 Membership No.: 37457

Cash Flow statement dealt with by this report are





FINANCIAL STATEMENTS

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We have audited the attached Balance Sheet of India Infoline

Investment Services Limited as on March 31, 2011, the Profit

and Loss Account and also the Cash Flow Statement for the

period 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


We have conducted our audit in accordance with the auditing




material misstatement. An audit includes examining, on a test





statement presentation. We believe that our audit provides a

reasonable basis for our opinion. In accordance with the

provisions of Section 227 of the Companies Act, 1956, we

report that:

1. As required by the Companies (Auditor’s Report) Order,

2003, issued by the Central Government of India under

sub-section (4A) of Section 227 of the Companies Act,

1956, and on the basis of such checks of books and records

of the Company as we considered appropriate and

according to the information and explanations given to us,

we enclose in the Annexure a statement on the matters

specified in paragraphs 4 and 5 of the said Order.

2. 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 purpose 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 the books;

iii) The Balance Sheet, Profit and Loss account and also

The Members,

Auditors’ Report

the

agreement with the books of account;

iv) In our opinion, the balance sheet, profit and loss

account and also 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;

v) On the basis of written representations received by the

company from its Directors as on March 31, 2011 and

taken on record by the Board of Directors, we report

that none of the director is disqualified as on March 31,

2011 from being appointed as a Director in terms of

the clause (g) of sub-section (1) of Section 274 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 to accounts,

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;

a. in case of balance sheet, of the state of affairs of

the company as at March 31, 2011;

b. in case of profit and loss account, of the profit for

the year ended on that date; and

c. in case of the Cash Flow Statement, of the cash

flows for the year ended on that date.




By the hand of

Tirtharaj Khot



Cash Flow statement dealt with by this report are in





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Standalone Financial Statements of


prescribed by the Central Government under Section

209 (1) (d) of the Companies Act, 1956. Therefore, the

provision of clause (viii) of paragraph 4 of the Order is

not applicable to the Company.

9. (a) According to the information and explanations given

to us, and as per the records of the Company, in our

opinion the Company is generally regular in depositing

undisputed statutory dues including Provident Fund,

Investor Education and Protection Fund, Employees’

State Insurance, Income tax, Sales tax, Wealth tax,

Service tax, Customs duty, Excise duty, Cess and other

material statutory dues with the appropriate

authorities, where applicable. Based on the

information furnished to us, there are no undisputed

statutory dues as on March 31, 2011, which are

outstanding for a period exceeding six months from

the date they became payable.

(b) According to the information and explanations given

to us, there are no cases of non-deposit with the

appropriate authorities of disputed dues of sales tax/

income tax/ customs tax/ wealth tax/ service tax/

excise duty and cess as at March 31, 2011 which have

been not deposited on account of dispute pending,

and amount involve and the forum where disputes is

pending as under :

10. At the end of the financial year, the Company has no

accumulated losses exceeding fifty percent of its net

worth. Further, the Company has not incurred cash

loss during the financial year covered by our audit, and

has not incurred cash losses during the financial year

immediately preceding financial year.

11. Based on our audit procedures and according to the

information and explanations given to us, we are of the

Name of Nature of the Amount (`) of Tax

the Statute Disputed Dues Which The Forum Where

Amount Dispute is

Relates Pending

` 4,469,700/-

Income Tax Disallowance u/s 14(A) amount of Commissioner of

Act,1961 of IT act. outstanding demand income tax appeal paid

Period to

A.Y. 2007-2008

opinion that the Company has not defaulted in

repayment of its dues to its financial institution, bank

and debenture holders.

12. In our opinion, and according to the information and

explanations given to us, the Company has

maintained adequate records in cases of loans and

advances granted on the basis of security by way of

pledge of shares, debentures or other securities.

13. The Company is not a chit fund or a nidhi/ mutual

benefit fund/ society. Therefore, the provisions of sub

clause (a), (b), (c) and (d) of clause (xiii) of paragraph 4

of the Order are not applicable to the Company.

14. Based on our examination of the records and

evaluation of the related internal controls, the

Company has maintained proper records of

transactions and contracts in respect of its dealing or

trading in shares, securities, debentures and other

investments, as applicable, and timely entries have

been made therein. The aforesaid securities have been

held by the Company in its own name, except to the

extent of the exemption granted under Section 49 of

the Companies Act, 1956.

15. According to the information and explanations given

to us, the Company has not granted any guarantee for

loans taken by others from bank or financial

institutions. Therefore, the provision of clause (xv) of

paragraph 4 of the Order’s not applicable to the

Company.


AnnexureReferred to in paragraph 1 of our report dated May 7, 2011 to the members of India Infoline Investment Services Limited

1. (a) The Company has maintained adequate records to

show full particulars, including quantitative details

and situation of the fixed assets.

(b) The Company has formulated a programme of physical

verification of its fixed assets in a phased manner. In

accordance with this program, a physical verification

of certain fixed assets has been carried out by

management during the year and there are no material

discrepancies observed between assets physically

verified and book balances. In our opinion, the

periodicity of verification is reasonable having regard

to the size of the company and the nature of its assets.

(c) The Company has not disposed of any substantial part

of its fixed assets so as to affect its going concern

status.

2. The Company is not carrying on any manufacturing or

trading activity. Therefore, the provisions of sub clause

(a), (b) and (c) of clause (ii) of paragraph 4 of the Order

are not applicable to the Company.

3. (a) The Company has granted loan to three companies

covered under register maintained under Section 301

of the Companies Act, 1956. The maximum amount

involved during the year was ` 3,643,034,393/- and

the year, end balance of the loan granted to such

Company was ̀ 1,702,300,003/-

(b) In our opinion, the rate of interest and other terms and

condition of such loan are not, prima facie, prejudicial

to the interest of the Company.

(c) There are no stipulation as to repayment of principal

and interest amount.

(d) There is no overdue amount in excess of ` 100,000 in

respect of loan granted to Company listed in the

register maintained under Section 301 of the

Companies Act,1956, since repayment schedule is not

stipulated.

(e) The Company has not taken any loans from the

companies, firms or other parties covered in the


companies Act, 1956. As the Company has not taken

any loans, the provisions of sub clause (e), (f), and (g)

of clause (iii) of paragraph 4 of the Order are not

applicable to the Company.

4. In our opinion and according to the information and

explanations given to us, there are adequate internal

control systems commensurate with the size of the

Company and nature of its business, for the purchase

of fixed assets and sale of services. Further, on the

basis of our examination of the books and records of

the Company, and according to the information and

explanations given to us, we have neither come across

nor have we been informed of any continuing failure to

correct major weaknesses in the aforesaid internal

control systems.

5. (a) In our opinion and according to the information and

explanations given to us, the particulars of contracts

or arrangements that need to be entered into a

Register in pursuance of Section 301 of the Companies

Act, 1956 and those brought to our notice, have been

so entered.

(b) In our opinion and according to the information and

explanations given to us, the transactions in

pursuance of such contracts or arrangements entered

in the register maintained under Section 301 of the

Companies Act,1956 and exceeding the value of

` 500,000 in respect of any party during the year, have

been made at prices which are not comparable since

the prevailing market prices of such services, in view of

the management, are not readily available.

6. The Company has not accepted any deposits from the

public of the nature which attracts the provisions of

Section 58A, 58AA or any other relevant provisions of

the Companies Act, 1956 and the rules made there

under. Therefore, the provision of clause (vi) of

paragraph 4 of the Order is not applicable to the

Company.

7. In our opinion, the Company has an internal audit

system commensurate with its size and nature of its

business.

8. As per the information and explanations given to us, in

respect of the class of industry the Company falls

under, the maintenance of cost records has not been

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prescribed by the Central Government under Section

209 (1) (d) of the Companies Act, 1956. Therefore, the

provision of clause (viii) of paragraph 4 of the Order is

not applicable to the Company.

9. (a) According to the information and explanations given

to us, and as per the records of the Company, in our

opinion the Company is generally regular in depositing

undisputed statutory dues including Provident Fund,

Investor Education and Protection Fund, Employees’

State Insurance, Income tax, Sales tax, Wealth tax,

Service tax, Customs duty, Excise duty, Cess and other

material statutory dues with the appropriate

authorities, where applicable. Based on the

information furnished to us, there are no undisputed

statutory dues as on March 31, 2011, which are

outstanding for a period exceeding six months from

the date they became payable.

(b) According to the information and explanations given

to us, there are no cases of non-deposit with the

appropriate authorities of disputed dues of sales tax/

income tax/ customs tax/ wealth tax/ service tax/

excise duty and cess as at March 31, 2011 which have

been not deposited on account of dispute pending,

and amount involve and the forum where disputes is

pending as under :

10. At the end of the financial year, the Company has no

accumulated losses exceeding fifty percent of its net

worth. Further, the Company has not incurred cash

loss during the financial year covered by our audit, and

has not incurred cash losses during the financial year

immediately preceding financial year.

11. Based on our audit procedures and according to the

information and explanations given to us, we are of the

Name of Nature of the Amount (`) of Tax

the Statute Disputed Dues Which The Forum Where

Amount Dispute is

Relates Pending

` 4,469,700/-

Income Tax Disallowance u/s 14(A) amount of Commissioner of

Act,1961 of IT act. outstanding demand income tax appeal paid

Period to

A.Y. 2007-2008

opinion that the Company has not defaulted in repayment of

its dues to its financial institution, bank and debenture

holders.


explanations given to us, the Company has

maintained adequate records in cases of loans and

advances granted on the basis of security by way of

pledge of shares, debentures or other securities.

13. The Company is not a chit fund or a nidhi/ mutual

benefit fund/ society. Therefore, the provisions of sub

clause (a), (b), (c) and (d) of clause (xiii) of paragraph 4

of the Order are not applicable to the Company.

14. Based on our examination of the records and

evaluation of the related internal controls, the

Company has maintained proper records of transactions and

contracts in respect of its dealing or trading in shares,

securities, debentures and other investments, as

applicable, and timely entries have been made therein.

The aforesaid securities have been held by the

Company in its own name, except to the extent of the

exemption granted under Section 49 of the Companies

Act, 1956.


to us, the Company has not granted any guarantee for

loans taken by others from bank or financial

institutions. Therefore, the provision of clause (xv) of

paragraph 4 of the Order’s not applicable to the

Company.


AnnexureReferred to in paragraph 1 of our report dated May 7, 2011 to the members of India Infoline Investment Services Limited

1. (a) The Company has maintained adequate records to

show full particulars, including quantitative details

and situation of the fixed assets.

(b) The Company has formulated a programme of physical

verification of its fixed assets in a phased manner. In

accordance with this program, a physical verification

of certain fixed assets has been carried out by

management during the year and there are no material

discrepancies observed between assets physically

verified and book balances. In our opinion, the

periodicity of verification is reasonable having regard

to the size of the company and the nature of its assets.

(c) The Company has not disposed of any substantial part

of its fixed assets so as to affect its going concern

status.

2. The Company is not carrying on any manufacturing or

trading activity. Therefore, the provisions of sub clause

(a), (b) and (c) of clause (ii) of paragraph 4 of the Order

are not applicable to the Company.

3. (a) The Company has granted loan to three companies

covered under register maintained under Section 301

of the Companies Act, 1956. The maximum amount

involved during the year was ` 3,643,034,393/- and

the year, end balance of the loan granted to such

Company was ̀ 1,702,300,003/-

(b) In our opinion, the rate of interest and other terms and

condition of such loan are not, prima facie, prejudicial

to the interest of the Company.

(c) There are no stipulation as to repayment of principal

and interest amount.

(d) There is no overdue amount in excess of ` 100,000 in

respect of loan granted to Company listed in the


Companies Act,1956, since repayment schedule is not

stipulated.

(e) The Company has not taken any loans from the

companies, firms or other parties covered in the


companies Act, 1956. As the Company has not taken

any loans, the provisions of sub clause (e), (f), and (g)

of clause (iii) of paragraph 4 of the Order are not applicable to

the Company.

4. In our opinion and according to the information and

explanations given to us, there are adequate internal

control systems commensurate with the size of the

Company and nature of its business, for the purchase

of fixed assets and sale of services. Further, on the

basis of our examination of the books and records of

the Company, and according to the information and

explanations given to us, we have neither come across

nor have we been informed of any continuing failure to

correct major weaknesses in the aforesaid internal

control systems.

5. (a) In our opinion and according to the information and

explanations given to us, the particulars of contracts

or arrangements that need to be entered into a

Register in pursuance of Section 301 of the Companies

Act, 1956 and those brought to our notice, have been

so entered.

(b) In our opinion and according to the information and

explanations given to us, the transactions in

pursuance of such contracts or arrangements entered

in the register maintained under Section 301 of the

Companies Act,1956 and exceeding the value of

` 500,000 in respect of any party during the year, have

been made at prices which are not comparable since

the prevailing market prices of such services, in view of

the management, are not readily available.

6. The Company has not accepted any deposits from the

public of the nature which attracts the provisions of

Section 58A, 58AA or any other relevant provisions of

the Companies Act, 1956 and the rules made there

under. Therefore, the provision of clause (vi) of

paragraph 4 of the Order is not applicable to the

Company.

7. In our opinion, the Company has an internal audit

system commensurate with its size and nature of its

business.

8. As per the information and explanations given to us, in

respect of the class of industry the Company falls

under, the maintenance of cost records has not been

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To


As required by the “Non-Banking Financial Companies

Auditor’s Report (Reserve Bank) Directions, 2008”

(hereinafter referred to as “the Direction”) issued by the

Reserve Bank of India vide Notification No. DNBS (PD) 201/DG

(VL)/2008 dated September 18, 2008, in exercise of the

powers conferred by the sub section (IA) of section 45MA of

the Reserve Bank of India Act, 1934 (2 of 1934) and based on

the books and records verified by us and according to the

information and explanations given to us during the normal

course of the audit for the year ended March 31, 2011, we

report as under:

1. a. In our opinion the Company is engaged in the business

of Non-banking Financial Institution and it has

received the Certificate of Registration (CoR) No.

13.01792 dated May 12, 2005 from Reserve Bank of

India (hereinafter referred to as “the Bank”).

b. In our opinion, the Company is entitled to continue to

hold such COR in terms of its asset/finance pattern as

on March 31, 2011.

2. In our opinion, based on the business carried on by the

Company during the year it is not an Asset Finance

Company (AFC) as defined in Non-Banking Financial

Companies Acceptance of Public Deposits (Reserve Bank)

Directions, 1998.

3. The Board of Directors of the Company at their meeting

held on April 24, 2010, have passed a resolution for

non–acceptance of public deposit.

4. The Company has not accepted any deposit from public

during the year ended March 31, 2011.

5. In our opinion, the Company has complied with

prudential norms relating to income recognition,

accounting standards, asset classification and

provisioning for bad and doubtful debts, as applicable, to

it in terms of Non-Banking Financial (Non-Deposit

Accepting or Holding) Companies Prudential Norms

(Reserve Bank) Directions, 2007 for the year ended March

31, 2011.

The Board of Directors,

Auditors’ Report Pursuant to NBFCs Auditors’ Report (Reserve Bank) Directions, 2008

6. a. The capital adequacy ratio as disclosed in the return for

the year ended March 31, 2011 submitted to the Bank

in form NBS-7 has been correctly arrived at and is in

compliance with the minimum CRAR prescribed by the

Bank.

b. The Company has furnished to the Bank the annual

statement of capital funds, risk assets/exposures and

risk asset ratio (NBS-7) within the stipulated period,

for the year ended March 31, 2011.




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explanation given to us, the term loans have been

applied for which they were raised.


to us and on an overall examination of the balance

sheet of the Company, we report that no funds raised

on short-term basis have been used for long-term

investments.


to us, during the year the Company has not made

preferential allotment of shares to parties and

companies covered in the register maintained under

Section 301 of the Companies Act, 1956.


to us, during the period covered by our audit report,

the Company had issued debentures. The Company

has created security in respect of debentures issued.

20. The Company has not raised any money through a

public issue during the period. Therefore, the provision

of clause (xx) of paragraph 4 of the Order is not


21. During the course of our examination of the books and

records of the Company, carried out in accordance

with the generally accepted auditing practices in India,

and according to the information and explanation

given to us, we have neither come across any instances

of material fraud on or by the Company, noticed or

reported during the year nor have we been informed of

such case by management.




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Tirtharaj Khot



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To


As required by the “Non-Banking Financial Companies

Auditor’s Report (Reserve Bank) Directions, 2008”

(hereinafter referred to as “the Direction”) issued by the

Reserve Bank of India vide Notification No. DNBS (PD) 201/DG

(VL)/2008 dated September 18, 2008, in exercise of the

powers conferred by the sub section (IA) of section 45MA of

the Reserve Bank of India Act, 1934 (2 of 1934) and based on

the books and records verified by us and according to the

information and explanations given to us during the normal

course of the audit for the year ended March 31, 2011, we

report as under:

1. a. In our opinion the Company is engaged in the business

of Non-banking Financial Institution and it has

received the Certificate of Registration (CoR) No.

13.01792 dated May 12, 2005 from Reserve Bank of

India (hereinafter referred to as “the Bank”).

b. In our opinion, the Company is entitled to continue to

hold such COR in terms of its asset/finance pattern as

on March 31, 2011.

2. In our opinion, based on the business carried on by the

Company during the year it is not an Asset Finance

Company (AFC) as defined in Non-Banking Financial

Companies Acceptance of Public Deposits (Reserve Bank)

Directions, 1998.

3. The Board of Directors of the Company at their meeting

held on April 24, 2010, have passed a resolution for

non–acceptance of public deposit.

4. The Company has not accepted any deposit from public

during the year ended March 31, 2011.

5. In our opinion, the Company has complied with

prudential norms relating to income recognition,

accounting standards, asset classification and

provisioning for bad and doubtful debts, as applicable, to

it in terms of Non-Banking Financial (Non-Deposit

Accepting or Holding) Companies Prudential Norms

(Reserve Bank) Directions, 2007 for the year ended March

31, 2011.

The Board of Directors,

Auditors’ Report Pursuant to NBFCs Auditors’ Report (Reserve Bank) Directions, 2008

6. a. The capital adequacy ratio as disclosed in the return for

the year ended March 31, 2011 submitted to the Bank

in form NBS-7 has been correctly arrived at and is in

compliance with the minimum CRAR prescribed by the

Bank.

b. The Company has furnished to the Bank the annual

statement of capital funds, risk assets/exposures and

risk asset ratio (NBS-7) within the stipulated period,

for the year ended March 31, 2011.




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explanation given to us, the term loans have been applied for

which they were raised.


to us and on an overall examination of the balance

sheet of the Company, we report that no funds raised

on short-term basis have been used for long-term

investments.


to us, during the year the Company has not made

preferential allotment of shares to parties and

companies covered in the register maintained under

Section 301 of the Companies Act, 1956.


to us, during the period covered by our audit report,

the Company had issued debentures. The Company

has created security in respect of debentures issued.

20. The Company has not raised any money through a

public issue during the period. Therefore, the provision

of clause (xx) of paragraph 4 of the Order is not


21. During the course of our examination of the books and

records of the Company, carried out in accordance

with the generally accepted auditing practices in India,

and according to the information and explanation

given to us, we have neither come across any instances

of material fraud on or by the Company, noticed or

reported during the year nor have we been informed of

such case by management.




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Balance Sheetas at March 31, 2011

SOURCES OF FUNDS

APPLICATION OF FUNDS

Shareholders’ Funds

Share Capital A 2,371,540,300 237,154,030

Reserves And Surplus B 10,858,789,813 13,230,330,113 12,321,369,967 12,558,523,997

Loan Funds C

Secured Loans 11,898,409,110 2,615,100,000

Unsecured Loans 8,932,000,000 20,830,409,110 6,590,000,000 9,205,100,000

Total 34,060,739,223 21,763,623,997

Fixed Assets D

Gross Block 122,996,100 3,280,790

Less: Depreciation 9,577,914 1,067,498

Net Block 113,418,186 2,213,292

Capital Work-in-progress 37,250,464 150,668,650 - 2,213,292

Investments E 4,417,764,091 3,376,748,400

Deferred Tax 30,046,072 7,161,447

(refer Note Of B-12 Of Schedule L)

Current Assets, Loans And Advances F

Cash And Bank Balances 312,859,962 1,015,599,411

Closing Stock 223,833,262 113,693,188

Loans And Advances 31,018,638,841 17,389,692,717

31,555,332,065 18,518,985,316

Less: Current Liabilities & Provisions G

Current Liabilities 2,021,195,453 141,484,458

Provisions 71,876,202 -

2,093,071,655 141,484,458

Net Current Assets 29,462,260,410 18,377,500,858

Total 34,060,739,223 21,763,623,997

Significant accounting policies and notes Lto accounts

ScheduleAs at

March 31, 2011

As atMarch 31, 2010

(Amount in `)

As per our attached report of even date

For Sharp & Tannan Associates For India Infoline Investment Services Limited


ICAI Registration No. 109983W

By the hand of

Tirtharaj Khot Kapil Krishan R Venkataraman Binoy K Parikh

Partner Whole Time Director Director Company Secretary

Membership No. 37457

Place : Mumbai

Dated : May 07, 2011

Profit & Loss Accountfor the year ended March 31, 2011

INCOME

Expenditure

Income from operations H 4,255,588,321 1,623,921,387

Other income 263,470,890 26,428,595

Total 4,519,059,211 1,650,349,982

Direct cost I 231,639,584 176,147,288

Employee cost J 600,707,503 365,252,120

Administration & other expense K 432,276,623 253,697,204

Interest & finance changes 2,051,502,916 192,163,296

Depreciation D 8,510,416 634,405

Total 3,324,637,042 987,894,313

Profit before tax 1,194,422,169 662,455,669

Provision for taxation

- Current tax 380,494,244 185,849,934

- Deferred tax (22,884,625) (1,586,360)

- Short provision of Income Tax 10,235,259 2,687,804

Profit after tax 826,577,291 475,504,291

Appropriations

Dividend

Interim dividend 118,577,015 -

Dividend distribution tax 19,694,160 -

Transfer to special reserve 166,000,000 97,106,337

Transfer to general reserve 83,000,000 -

Balance of profit brought forward 1,207,289,524 828,891,570

Balance of profit carried forward 1,646,595,640 1,207,289,524

Earning per share - basic (`) 3.49 2.01

Earning per share - diluted (`) 3.40 1.93

Face value per share (`) 10.00 10.00

Significant accounting policies and notes L to accounts

Schedule 2010 - 2011 2009 - 2010

(Amount in `)





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Balance Sheetas at March 31, 2011

SOURCES OF FUNDS



Share Capital A 2,371,540,300 237,154,030

Reserves And Surplus B 10,858,789,813 13,230,330,113 12,321,369,967 12,558,523,997

Loan Funds C

Secured Loans 11,898,409,110 2,615,100,000

Unsecured Loans 8,932,000,000 20,830,409,110 6,590,000,000 9,205,100,000

Total 34,060,739,223 21,763,623,997

Fixed Assets D

Gross Block 122,996,100 3,280,790

Less: Depreciation 9,577,914 1,067,498

Net Block 113,418,186 2,213,292

Capital Work-in-progress 37,250,464 150,668,650 - 2,213,292

Investments E 4,417,764,091 3,376,748,400

Deferred Tax 30,046,072 7,161,447

(refer Note Of B-12 Of Schedule L)

Current Assets, Loans And Advances F

Cash And Bank Balances 312,859,962 1,015,599,411

Closing Stock 223,833,262 113,693,188

Loans And Advances 31,018,638,841 17,389,692,717

31,555,332,065 18,518,985,316

Less: Current Liabilities & Provisions G


Provisions 71,876,202 -

2,093,071,655 141,484,458


Total 34,060,739,223 21,763,623,997

Significant accounting policies and notes Lto accounts

ScheduleAs at

March 31, 2011

As atMarch 31, 2010

(Amount in `)





By the hand of




Place : Mumbai


Profit & Loss Accountfor the year ended March 31, 2011

INCOME

Expenditure

Income from operations H 4,255,588,321 1,623,921,387

Other income 263,470,890 26,428,595

Total 4,519,059,211 1,650,349,982

Direct cost I 231,639,584 176,147,288

Employee cost J 600,707,503 365,252,120

Administration & other expense K 432,276,623 253,697,204

Interest & finance changes 2,051,502,916 192,163,296

Depreciation D 8,510,416 634,405

Total 3,324,637,042 987,894,313


Provision for taxation

- Current tax 380,494,244 185,849,934

- Deferred tax (22,884,625) (1,586,360)

- Short provision of Income Tax 10,235,259 2,687,804

Profit after tax 826,577,291 475,504,291

Appropriations

Dividend

Interim dividend 118,577,015 -

Dividend distribution tax 19,694,160 -

Transfer to special reserve 166,000,000 97,106,337

Transfer to general reserve 83,000,000 -

Balance of profit brought forward 1,207,289,524 828,891,570

Balance of profit carried forward 1,646,595,640 1,207,289,524

Earning per share - basic (`) 3.49 2.01

Earning per share - diluted (`) 3.40 1.93

Face value per share (`) 10.00 10.00

Significant accounting policies and notes L to accounts

Schedule 2010 - 2011 2009 - 2010

(Amount in `)





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Schedules forming part of the Balance Sheetas at March 31, 2011

As at

March 31, 2011

As atMarch 31, 2010

(Amount in `)

Schedule A: Share Capital

Schedule B: Reserves And Surplus

Authorised :

300,000,000 (Previous Year 50,000,000) Equity Shares of ̀ 10/- each 3,000,000,000 500,000,000

Issued, Subscribed and Paid Up:

237,154,030 (Previous Year 23,715,403) Equity Shares of ̀ 10/- each fully paid-up 2,371,540,300 237,154,030

Includes 213,438,627 (Previous Year Nil) equity shares alloted by way of bonus as

fully paid up shares by capitalisation of securities premium account

(Out of above 182,000,000 (Previous Year 18,200,000) equity shares are held by its

Holding Company India Infoline Limited and 52,838,700 (Previous Year 5,283,870)

shares held by its fellow subsidiary)

Total 2,371,540,300 237,154,030

Securities Premium Account:

Opening Balance 10,808,374,106 10,808,374,106

Addition during the year - -

Deduction during the year, for issue of bonus shares and (2,150,886,270) -

adjustment of share issue expenses

Closing Balance 8,657,487,836 10,808,374,106

General Reserve

Opening Balance - -

Addition during the year 83,000,000 -

Closing Balance 83,000,000 -

Special Reserve*

Opening Balance 305,706,337 208,600,000

Addition during the year 166,000,000 97,106,337

Closing Balance 471,706,337 305,706,337

*Pursuant to Section 45 1C of Reserve Bank of India Act, 1934

Profit and Loss Account 1,646,595,640 1,207,289,524

Total 10,858,789,813 12,321,369,967

Schedule C: Loan Funds

SECURED LOAN

Loans from banks ( Secured against receivables ) 8,500,109,110 2,000,000,000

Non Convertible Debentures (Secured against immovable property, stock & book debts) 3,398,300,000 615,100,000

Total 11,898,409,110 2,615,100,000

(refer note B-3 of Schedule L )

UNSECURED LOAN

Non Convertible Debentures 272,000,000 5,190,000,000

Commercial Papers 8,660,000,000 1,400,000,000

Total 8,932,000,000 6,590,000,000

Total* 20,830,409,110 9,205,100,000

*The above include ̀ 10,370,442,444 (Previous Year 7,840,000,000) due within one year`

Sch

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As at

March 31, 2011

As atMarch 31, 2010

(Amount in `)



Authorised :

300,000,000 (Previous Year 50,000,000) Equity Shares of ̀ 10/- each 3,000,000,000 500,000,000

Issued, Subscribed and Paid Up:

237,154,030 (Previous Year 23,715,403) Equity Shares of ̀ 10/- each fully paid-up 2,371,540,300 237,154,030

Includes 213,438,627 (Previous Year Nil) equity shares alloted by way of bonus as

fully paid up shares by capitalisation of securities premium account

(Out of above 182,000,000 (Previous Year 18,200,000) equity shares are held by its

Holding Company India Infoline Limited and 52,838,700 (Previous Year 5,283,870)


Total 2,371,540,300 237,154,030

Securities Premium Account:

Opening Balance 10,808,374,106 10,808,374,106


Deduction during the year, for issue of bonus shares and (2,150,886,270) -

adjustment of share issue expenses

Closing Balance 8,657,487,836 10,808,374,106

General Reserve

Opening Balance - -



Special Reserve*

Opening Balance 305,706,337 208,600,000


Closing Balance 471,706,337 305,706,337

*Pursuant to Section 45 1C of Reserve Bank of India Act, 1934


Total 10,858,789,813 12,321,369,967

Schedule C: Loan Funds

SECURED LOAN

Loans from banks ( Secured against receivables ) 8,500,109,110 2,000,000,000

Non Convertible Debentures (Secured against immovable property, stock & book debts) 3,398,300,000 615,100,000

Total 11,898,409,110 2,615,100,000

(refer note B-3 of Schedule L )

UNSECURED LOAN


Commercial Papers 8,660,000,000 1,400,000,000

Total 8,932,000,000 6,590,000,000

Total* 20,830,409,110 9,205,100,000

*The above include ̀ 10,370,442,444 (Previous Year 7,840,000,000) due within one year`

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Schedules forming part of the Balance Sheet as at March 31, 2011as at March 31, 2011

Number Amount

(Amount in `)

AmountNumberFace ValueMarch 31, 2011 March 31, 2010

Schedule E: Investments

a. Long Term Investments

Unquoted, Trade, Long Term (Valued at cost)

Investment in Subsidiaries

Equity Shares

India Infoline Distribution Company Limited 10 1,400,100 85,126,000 1,400,100 85,126,000

Moneyline Credit Limited 100 1,450,000 1,536,929,000 1,450,000 1,536,929,000

India Infoline Housing Finance Limited 10 10,900,000 1,005,000,000 7,500,000 325,000,000

Preference Shares

India Infoline Housing Finance Limited 10 20,000,000 300,000,000 20,000,000 300,000,000

2,927,055,000 2,247,055,000

Unquoted, Non-Trade, Long Term (Valued at cost) 100,000 3,850 385,000,000 1,950 195,000,000

Units of India Infoline Venture Capital Fund

(IIFL Opportunity Fund )

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

490,211,200 195,000,000

b.Current Investments

Quoted , Non - Trade , Current - - - 234,607,988

(Valued at cost or market whichever is less)

(refer note B-14 of Schedule L ) - 234,607,988

Unquoted, Non-Trade, Current


Reliance Mutual Fund

Reliance Liquidity fund 10 - - 49,983,628 500,066,208

Axis Mutual Fund

Axis Liquid Fund 1,000 - - 200,019 200,019,204

DWS Mutual Fund

DWS Short Maturity Fund- 10 87,860,573 1,000,497,891 - -

Institutional Growth Plan

(refer note B-4 of Schedule L ) 1,000,497,891 700,085,412

Total 4,417,764,091 3,376,748,400

Aggregate cost of Mutual Fund Units 1,000,497,891 700,085,412

Aggregate cost of Quoted investments - 234,607,988

Aggregate cost of Unquoted investments 3,417,266,200 2,442,055,000

NAV of Mutual Fund Units 1,030,358,506 700,085,412

Aggregate Market value of Quoted investments - 252,421,955


Schedule F: Current Assets, Loans & Advances

a. Cash And Bank Balance

Cash on Hand 55 -

Bank Balances

With Scheduled Banks:

- In Current Accounts 162,859,907 1,015,599,411

- In Fixed deposits 150,000,000 -

Total 312,859,962 1,015,599,411

#b) STOCK ON HAND (QUOTED) Qty (CY/PY) Face Value As at As at

31.03.2011 31.03.2010

Equity Shares

Selan Exploration Technology Limited - / 212,000 10 - 78,549,241

HDFC Bank Limited 130,000 / - 10 87,352,207 -

Reliance Industries Limited 52,000 / - 10 53,113,780 -

United Phospherous Limited 184,000 / - 2 27,498,412 -

Stock on Hand - Options* Qty (CY/PY) Strike Price

Nifty Call 27-12-2012 14,900 / 14,900 5,000 14,423,200 14,423,200

Nifty Call 28-06-2012 6,900 / - 4,100 9,936,000 -

Nifty Call 27-12-2012 1,400/ 6,500 5,100 1,488,000 5,850,000

Nifty Call 28-06-2012 - / 1,800 5,100 - 1,508,400

Nifty Call 28-06-2012 24,800/ 8,500 5,200 984,000 8,041,000

Nifty Call 27-12-2012 24,800/ - 5,200 10,121,413 -

Nifty Call 27-06-2013 24,800/ - 5,200 13,597,500 -

Nifty Call 27-12-2012 5,750/ 5,750 5,300 5,318,750 5,321,347

*Held to cover possible payout in respect of certain Non- Convertible Debentures

Total 223,833,262 113,693,188

Aggregate market value-stock on hand-Quoted 245,294,050 126,195,450#CY= Current Year, PY= Previous Year

As atMarch 31, 2011

As atMarch 31, 2010

(Amount in `)

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Schedules forming part of the Balance Sheet as at March 31, 2011as at March 31, 2011

Number Amount

(Amount in `)

AmountNumberFace ValueMarch 31, 2011 March 31, 2010

Schedule E: Investments

a. Long Term Investments

Unquoted, Trade, Long Term (Valued at cost)

Investment in Subsidiaries

Equity Shares

India Infoline Distribution Company Limited 10 1,400,100 85,126,000 1,400,100 85,126,000

Moneyline Credit Limited 100 1,450,000 1,536,929,000 1,450,000 1,536,929,000

India Infoline Housing Finance Limited 10 10,900,000 1,005,000,000 7,500,000 325,000,000

Preference Shares

India Infoline Housing Finance Limited 10 20,000,000 300,000,000 20,000,000 300,000,000

2,927,055,000 2,247,055,000

Unquoted, Non-Trade, Long Term (Valued at cost) 100,000 3,850 385,000,000 1,950 195,000,000

Units of India Infoline Venture Capital Fund

(IIFL Opportunity Fund )

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

490,211,200 195,000,000

b.Current Investments

Quoted , Non - Trade , Current - - - 234,607,988


(refer note B-14 of Schedule L ) - 234,607,988

Unquoted, Non-Trade, Current




Axis Mutual Fund

Axis Liquid Fund 1,000 - - 200,019 200,019,204

DWS Mutual Fund

DWS Short Maturity Fund- 10 87,860,573 1,000,497,891 - -

Institutional Growth Plan

(refer note B-4 of Schedule L ) 1,000,497,891 700,085,412

Total 4,417,764,091 3,376,748,400



Aggregate cost of Unquoted investments 3,417,266,200 2,442,055,000




Schedule F: Current Assets, Loans & Advances

a. Cash And Bank Balance

Cash on Hand 55 -

Bank Balances

With Scheduled Banks:

- In Current Accounts 162,859,907 1,015,599,411

- In Fixed deposits 150,000,000 -

Total 312,859,962 1,015,599,411

#b) STOCK ON HAND (QUOTED) Qty (CY/PY) Face Value As at As at

31.03.2011 31.03.2010

Equity Shares





Stock on Hand - Options* Qty (CY/PY) Strike Price

Nifty Call 27-12-2012 14,900 / 14,900 5,000 14,423,200 14,423,200

Nifty Call 28-06-2012 6,900 / - 4,100 9,936,000 -

Nifty Call 27-12-2012 1,400/ 6,500 5,100 1,488,000 5,850,000

Nifty Call 28-06-2012 - / 1,800 5,100 - 1,508,400

Nifty Call 28-06-2012 24,800/ 8,500 5,200 984,000 8,041,000

Nifty Call 27-12-2012 24,800/ - 5,200 10,121,413 -

Nifty Call 27-06-2013 24,800/ - 5,200 13,597,500 -

Nifty Call 27-12-2012 5,750/ 5,750 5,300 5,318,750 5,321,347

*Held to cover possible payout in respect of certain Non- Convertible Debentures

Total 223,833,262 113,693,188

Aggregate market value-stock on hand-Quoted 245,294,050 126,195,450#CY= Current Year, PY= Previous Year

As atMarch 31, 2011

As atMarch 31, 2010

(Amount in `)

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Schedule F (Contd.)

Schedule G: Current Liabilities And Provisions

Schedule H: Income From Operations

c) Loans & Advances

(Unsecured, Considered Good, unless otherwise stated)

Loans to Group Companies 1,702,300,002 2,722,441,505

Advance Income Tax & Tax Deducted at source (net of provisions) 49,843,534 72,276,360

Loans 28,587,161,938 14,303,252,606

Other Advances 699,460,927 312,387,636

Less : Prov for doubtful loans 20,127,560 20,665,390

Total 31,018,638,841 17,389,692,717

Total 31,555,332,065 18,518,985,316

a)Current Liabilities

Sundry Creditors

i) Outstanding dues of micro and small enterprises. - -

ii) Others 12,599,906 -

Others Liabilities 2,008,595,548 141,484,458

2,021,195,453 141,484,458

b)Provisions

Contingent provision against standard assets 71,501,232 -

Provision for leave encashment 374,970 -

71,876,202 -

Total 2,093,071,655 141,484,458

Income from financing activities 4,013,920,347 1,364,879,729

Profit from sale of Investments and trading activities 193,319,092 140,579,407

Dividend income 48,348,882 118,462,251

Total 4,255,588,321 1,623,921,387

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010

Schedules forming part of Profit and Loss accountfor the year ended March 31, 2011

Schedule I: Direct Cost

Schedule J: Employee Cost

Schedule K: Administration and Other Expenses

Investment and Financing Cost 65,839,504 140,508,094

Provision for Doubtful Loans (537,830) 4,398,890

Provision for Standard Loans 71,501,232 -

Marketing Expenses 94,836,678 31,240,304

Total 231,639,584 176,147,288

Salaries and bonus 572,849,031 352,579,632

Contribution to provident and other funds 10,544,130 5,628,978

Gratuity 2,439,484 -

Staff Welfare Expenses 14,874,858 7,043,510

Total 600,707,503 365,252,120

Advertisement 64,116,587 62,838,733

Bank Charges 1,256,175 152,380

Communication 25,966,239 22,120,183

Electricity 18,595,798 13,244,268

Legal & Professional Fees 63,076,949 41,205,962

Miscellaneous Expenses 4,390,966 5,637,228

Office expenses 26,469,543 14,420,261

Postage & Courier 12,644,484 7,102,773

Printing & Stationary 16,625,743 6,824,795

Rent 141,343,422 60,680,725

Repairs & Maintenance

- Computer 499,136 217,890

- Others 8,882,562 9,381,698 4,292,657

Remuneration to Auditors :

Audit Fees 225,000 225,000

Certification Expenses 31,000 -

Out Of Pocket Expenses 8,950 264,950 -

Software Charges 16,115,972 2,727,112

Travelling & Conveyance 32,028,097 12,007,237

Total 432,276,623 253,697,204

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010

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Schedule F (Contd.)

Schedule G: Current Liabilities And Provisions

Schedule H: Income From Operations

c) Loans & Advances

(Unsecured, Considered Good, unless otherwise stated)


Advance Income Tax & Tax Deducted at source (net of provisions) 49,843,534 72,276,360

Loans 28,587,161,938 14,303,252,606

Other Advances 699,460,927 312,387,636

Less : Prov for doubtful loans 20,127,560 20,665,390

Total 31,018,638,841 17,389,692,717

Total 31,555,332,065 18,518,985,316

a)Current Liabilities

Sundry Creditors

i) Outstanding dues of micro and small enterprises. - -

ii) Others 12,599,906 -

Others Liabilities 2,008,595,548 141,484,458

2,021,195,453 141,484,458

b)Provisions


Provision for leave encashment 374,970 -

71,876,202 -

Total 2,093,071,655 141,484,458

Income from financing activities 4,013,920,347 1,364,879,729


Dividend income 48,348,882 118,462,251

Total 4,255,588,321 1,623,921,387

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010

Schedules forming part of Profit and Loss accountfor the year ended March 31, 2011

Schedule I: Direct Cost

Schedule J: Employee Cost

Schedule K: Administration and Other Expenses

Investment and Financing Cost 65,839,504 140,508,094



Marketing Expenses 94,836,678 31,240,304

Total 231,639,584 176,147,288


Contribution to provident and other funds 10,544,130 5,628,978

Gratuity 2,439,484 -

Staff Welfare Expenses 14,874,858 7,043,510

Total 600,707,503 365,252,120

Advertisement 64,116,587 62,838,733

Bank Charges 1,256,175 152,380

Communication 25,966,239 22,120,183

Electricity 18,595,798 13,244,268

Legal & Professional Fees 63,076,949 41,205,962

Miscellaneous Expenses 4,390,966 5,637,228

Office expenses 26,469,543 14,420,261

Postage & Courier 12,644,484 7,102,773

Printing & Stationary 16,625,743 6,824,795

Rent 141,343,422 60,680,725

Repairs & Maintenance

- Computer 499,136 217,890

- Others 8,882,562 9,381,698 4,292,657

Remuneration to Auditors :

Audit Fees 225,000 225,000

Certification Expenses 31,000 -

Out Of Pocket Expenses 8,950 264,950 -

Software Charges 16,115,972 2,727,112

Travelling & Conveyance 32,028,097 12,007,237

Total 432,276,623 253,697,204

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010

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SCHEDULE L

Significant Accounting Policies and Notes forming part of the Balance Sheet as at March

31, 2011 and Profit and Loss Account for the Year ended March 31, 2011.

1. Basis of preparation of financial statements:

2. Use of Estimates:

3. Fixed Assets and Depreciation:

4. Revenue Recognition:

A. SIGNIFICANT ACCOUNTING POLICIES:

The financial statements have been prepared under historical cost convention on an accrual basis in compliance with all

material aspects of the applicable Accounting Standards in India and the relevant provisions of the Companies Act, 1956.

The accounting policies have been consistently applied by the Company.

The presentation of financial statements in conformity with the generally accepted accounting principles requires the

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

financial statements and the reported amount of revenues and expenses during the reporting period. Difference between

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

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

Depreciation is charged using the straight line method based on the useful life of fixed assets as estimated by the

management as specified below, or the rates specified in accordance with the provisions of schedule XIV of the Companies

Act, 1956, whichever is higher. In the case of transfer of used fixed assets from group companies, depreciation is charged

over the remaining useful life of the asset.

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

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

year of purchase.

Estimated useful life of the assets is as under:

Buildings 20 years

Computers 3 years

Electrical & Office equipment 5 years

Furniture and fixtures 5 years

Vehicles 5 years

Software 3 years

The Company complies, in all material respects, with the Prudential Norms relating to income recognition, accounting

standards, asset classification and the minimum provisioning for bad and doubtful debts, specified in the directions issued

by the Reserve Bank of India as applicable to it, and

• Interest Income is recognised on the time proportionate basis as per agreed terms.

• Interest income on non-performing assets is recognised on cash basis.

• Dividend income is recognised when the right to receive payment is established.

• In respect of the other heads of income, the Company accounts the same on accrual basis.

• Processing fees received from customers is recognised as income on receipt basis.

5. Preliminary Expenses

6. Retirement Benefits:

7. Provisions, Contingent Liabilities and Contingent Assets:

8. Taxes on Income:

9. Operating Leases:

10. Investments:

11. Stock in Trade:

Preliminary Expenses is written off in same financial year in which they are incurred.

The company's contribution towards Provident Fund and Family Pension Fund, which are defined contribution, are

accounted for on an accrual basis and recognised in the Profit & loss account.

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

Gratuity is post employment benefit and is in the nature of Defined Benefit Plan. The Liability recognized in the Balance

Sheet in respect of gratuity is the present value of defined benefit obligation at the balance sheet date together with the

adjustments for unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is

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

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

outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent

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

outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of

outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer

probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent Assets are neither recognized nor disclosed in the financial statements.

Provision for current tax is computed based on estimated tax liability computed after adjusting for allowance, disallowance

and exemptions in accordance with the applicable tax laws.

Deferred tax is recognized for all timing differences between accounting income & taxable income and is quantified using

enacted / substantially enacted tax rates as at the balance sheet date. Deferred tax assets are recognized subject to the

management judgement that the realisation is virtually / reasonably certain and are reviewed as at each balance sheet date.

Lease rentals in respect of operating lease arrangements are charged to the Profit & Loss Account in accordance with

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

Investments are classified into current and long-term investments. Investments which are intended to be held for one year

or more are classified as long term Investments and investment that are intended to be held for less than one year are

classified as current investments. Current investments are stated at lower of cost or market / fair value. Long-term

investments are carried at cost.

For investment in Mutual funds, the net Assets value (NAV) declared by the Mutual Funds is considered as the fair value.

Provision for diminution in value of long term investments is made, if in the opinion of the management such diminution is

other than temporary.

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

B. NOTES TO ACCOUNTS:

1. The Company is Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under Section 45-IA of

the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company has received the

certificate of registration on May 12, 2005, enabling the Company to carry on business as Non – Banking Financial

Company.

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

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SCHEDULE L

Significant Accounting Policies and Notes forming part of the Balance Sheet as at March

31, 2011 and Profit and Loss Account for the Year ended March 31, 2011.






The financial statements have been prepared under historical cost convention on an accrual basis in compliance with all

material aspects of the applicable Accounting Standards in India and the relevant provisions of the Companies Act, 1956.

The accounting policies have been consistently applied by the Company.



financial statements and the reported amount of revenues and expenses during the reporting period. Difference between

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




Act, 1956, whichever is higher. In the case of transfer of used fixed assets from group companies, depreciation is charged



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

year of purchase.


Buildings 20 years

Computers 3 years



Vehicles 5 years

Software 3 years



by the Reserve Bank of India as applicable to it, and






5. Preliminary Expenses



8. Taxes on Income:


10. Investments:

11. Stock in Trade:

Preliminary Expenses is written off in same financial year in which they are incurred.


accounted for on an accrual basis and recognised in the Profit & loss account.

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



adjustments for unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is

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




outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of

outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer

probable that the outflow of resources would be required to settle the obligation, the provision is reversed.





enacted / substantially enacted tax rates as at the balance sheet date. Deferred tax assets are recognized subject to the






classified as current investments. Current investments are stated at lower of cost or market / fair value. Long-term


For investment in Mutual funds, the net Assets value (NAV) declared by the Mutual Funds is considered as the fair value.




B. NOTES TO ACCOUNTS:

1. The Company is Non-Banking Financial Company registered with the Reserve Bank of India (RBI) under Section 45-IA of

the Reserve Bank of India Act, 1934 and primarily engaged in lending and related activities. The Company has received the

certificate of registration on May 12, 2005, enabling the Company to carry on business as Non – Banking Financial

Company.

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

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holding company/ subsidiaries/ group companies which are termed as 'Shared Services'. Hitherto, such shared services

consisting of administrative and other revenue expenses paid for by the company were identified and recovered from them

based on reasonable management estimates, which are constantly refined in the light of additional knowledge gained

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

were difficult to determine.

3. During the year, the Company has raised Term Loans aggregating ̀ 7,750,000,000/- from various banks. The same is secured

against the receivables of the Company. The Company has also raised ` 2,783,200,000/- by issue of secured Non

Convertible Debentures. The said debentures are secured against immovable property, stocks and book debts of the

Company. The same are also guaranteed by India Infoline Limited, the holding company. These debentures are redeemable

at par over a period of 12 months to 38 months from the date of allotment depending upon the terms of issue.

4. Investment in DWS Short Maturity Fund- Institutional Growth Plan Units made by the Company is subject to pledge/lien of

Deutsche Bank for overdraft facility provided to IIFL Realty Limited.

5. Segment Reporting:

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

AS 17 'Segment Reporting', issued by the Institute of Chartered Accountants of India. Accordingly, no separate disclosure

for segment reporting is required to be made in the financial statements of the Company.

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

Company perceives that there is no significant difference in its risk and returns in operating from different geographic areas

within India.

6. At the balance sheet date, there were outstanding commitments of capital expenditure of ̀ 92,639,763 (net of advances)

(Previous Year Nil), out of the total contractual obligation entered upto the end of the year.

7. The Company has implemented Employee Stock Option Scheme - 2007. Under the said scheme 5,825,000. Stock options

are in force as on March 31, 2011. This is after augmentation of entitlement of bonus in ratio of 9:1 made during the

financial year.

8. Information under paragraphs 3 and 4 of part II to schedule VI of the companies Act, 1956 is stated to the extent applicable.

9. There are no dues to micro & small enterprises (MSEs) outstanding for more than 45 days.

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

Nature of relationship Name of party

(a) Related parties where control exists:

Holding Company India Infoline Limited

Direct Subsidiaries Moneyline Credit Limited

India Infoline Housing Finance Limited

India Infoline Distribution Company Limited

Fellow Subsidiaries India Infoline Commodities Limited

India Infoline Media and Research Services Limited

IIFL Capital Limited

India Infoline Trustee Company Limited

India Infoline Asset Management Company Limited

India Infoline Marketing Services Limited

IIFL Wealth Management Limited

IIFL Realty Limited

IIFL (Asia) Pte. Limited

IIFL Capital Ceylon Limited

IIFL Securities Ceylon (Pvt) Limited

IIFL Private Wealth Hong Kong Limited

IIFL Private Wealth Management (Dubai) Limited

India Infoline Commodities DMCC

IIFL Inc.

IIFL Wealth (UK) Limited

Group Companies India Infoline Insurance Services Limited

India Infoline Insurance Brokers Limited

Finest Wealth Managers Private Limited

IIFL Trustee Services Limited

IIFL (Thane) Private Limited

IIFL Energy Limited

IIFL Capital Pte. Limited

IIFL Securities Pte. Limited

IIFL Private Wealth (Mauritius) Limited

(b) Other related parties:

Key Management Nirmal Jain

R Venkataraman

Others India Infoline Venture Capital Fund

(c) Significant Transaction with Related Parties: (Amount in `)

Nature of Holding Fellow Group Direct Other related Total

Transaction Company Subsidiaries Companies Subsidiaries parties

Interest Income 160,697,900 223,185,232 - - - 383,883,132

- (36,501,668) - - - (36,501,668)

Interest Expenses 599,761,055 - 599,761,055

(18,627,693) - - (131,506) - (18,759,199)

Dividend Paid 91,000,000 26,419,350 - - - 117,419,350

- - - - - -

ICD repaid/ issued - 1,409,686,035 1,409,686,035

- (5,143,653,955) - - (5,143,653,955)

ICD taken/ received 2,429,827,534 2,429,827,534

- (3,557,499,786) - - (3,557,499,786)

Purchase of Portfolio/ - - - 4,586,040,139 - 4,586,040,139

Foreclosures/ EMIs - - - (3,803,679,340) - (3,803,679,340)

Sale of Portfolio - - - - - -

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holding company/ subsidiaries/ group companies which are termed as 'Shared Services'. Hitherto, such shared services consisting of

administrative and other revenue expenses paid for by the company were identified and recovered from them based on

reasonable management estimates, which are constantly refined in the light of additional knowledge gained relevant to

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

difficult to determine.

3. During the year, the Company has raised Term Loans aggregating ̀ 7,750,000,000/- from various banks. The same is secured

against the receivables of the Company. The Company has also raised ` 2,783,200,000/- by issue of secured Non

Convertible Debentures. The said debentures are secured against immovable property, stocks and book debts of the

Company. The same are also guaranteed by India Infoline Limited, the holding company. These debentures are redeemable

at par over a period of 12 months to 38 months from the date of allotment depending upon the terms of issue.

4. Investment in DWS Short Maturity Fund- Institutional Growth Plan Units made by the Company is subject to pledge/lien of

Deutsche Bank for overdraft facility provided to IIFL Realty Limited.


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





within India.

6. At the balance sheet date, there were outstanding commitments of capital expenditure of ̀ 92,639,763 (net of advances)

(Previous Year Nil), out of the total contractual obligation entered upto the end of the year.


are in force as on March 31, 2011. This is after augmentation of entitlement of bonus in ratio of 9:1 made during the

financial year.


9. There are no dues to micro & small enterprises (MSEs) outstanding for more than 45 days.





Direct Subsidiaries Moneyline Credit Limited

India Infoline Housing Finance Limited

India Infoline Distribution Company Limited








IIFL Realty Limited







IIFL Inc.







IIFL Energy Limited






R Venkataraman


(c) Significant Transaction with Related Parties: (Amount in `)



Interest Income 160,697,900 223,185,232 - - - 383,883,132

- (36,501,668) - - - (36,501,668)

Interest Expenses 599,761,055 - 599,761,055

(18,627,693) - - (131,506) - (18,759,199)

Dividend Paid 91,000,000 26,419,350 - - - 117,419,350

- - - - - -

ICD repaid/ issued - 1,409,686,035 1,409,686,035

- (5,143,653,955) - - (5,143,653,955)

ICD taken/ received 2,429,827,534 2,429,827,534

- (3,557,499,786) - - (3,557,499,786)

Purchase of Portfolio/ - - - 4,586,040,139 - 4,586,040,139

Foreclosures/ EMIs - - - (3,803,679,340) - (3,803,679,340)

Sale of Portfolio - - - - - -

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- - - (463,850,215) - (463,850,215)

Brokerage 1,987,407 - - - - 1,987,407

(276,588) - - - - (276,588)

Investment (net) - - - 680,000,000 190,000,000 870,000,000

- - - (600,000,000) (195,000,000) (795,000,000)

Advances returned/ 167,540,712,620 5,847,741 576,024 5,817,797,631 173,364,934,016

reimbursement of expenses (35,619,195,525) (31,998,900) (30,338,765) (4,804,607,826) (40,486,141,016)

Advances taken/ 167,540,712,620 5,847,741 576,024 517,797,631 173,364,934,016

allocation of expenses (35,619,195,525) (31,998,900) (30,338,765) (4,804,607,826) (40,486,141,016)

Closing balances



Sundry receivables 1,702,300,003 1,702,300,003

- (2,722,441,502) - - (2,722,441,502)

Note: Figures in bracket represent previous year's figure.

11. The Company has taken office premises on operating lease at various locations. Lease rent in respect of the same have been

charged to Profit and Loss account. The agreements are executed for a period ranging 1 to 5 years with a renewable clause.

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

party giving a prior notice period between 30 to 90 days. The minimum Lease rentals outstanding as at March 31, 2011, are

as under:

(Amount in `)

Minimum Lease Rentals 2010-11 2009-10

Up to one year 2,734,940 132,825

One to five years 666,000 Nil

Over five years Nil Nil

Total 3,400,940 132,825

12. The company recognized deferred tax assets since the management is reasonably/ virtually certain of its profitable

operations in future. As per Accounting Standard 22 'Accounting for Taxes on Income', the timing differences mainly relates

to following items and result in a net deferred tax asset:

Deferred Tax Assets (Amount in `)

Sr. No. Particulars As at 31.03.2011 As at 31.03.2010

a. On Provision for Doubtful Debts 6,685,872 7,024,166

b. On Provision for Standard assets 23,750,922 -

c. On Depreciation (108,968) 137,281

d. On Gratuity (281,754) -

Total 30,046,072 7,161,447

13. The Company is recognising and accruing the employee benefit as per accounting standard (AS) – 15 on “Employee

Benefits”.

Details are given below

Assumptions 2010-2011

Discount rate 8.0%

Salary Escalation 5.0%

Rate of return on plan assets 8.0%

Change in Benefit Obligation

Liability at the beginning of the year -

Interest Cost -

Current Service Cost -

Liability Transferred in (3,010,576)

Benefit paid 60,577

Actuarial (Gain)/ Loss on obligations 510,515

Liability at the end of the year (2,439,484)

Amount Recognised in the Balance Sheet


Fair value of plan Assets at the end of the year 3,227,117

Funded Status (Surplus) 787,633

Net Asset recognised in the balance sheet 787,633

Expenses Recognised in the Income statement


Interest Cost -

Expected return on plan assets -

Benefit Paid 60,577

Actuarial (Gain) or Loss 510,515

Expense Recognised in P&L (2,439,484)

Balance Sheet reconciliation

Opening Net liability -


Employers contribution 3,287,694

Benefit Paid 60,577


14. Details of current Investments are as under:

Quoted, Non - Trade, Current (valued at cost or market value whichever is lower) (Amount in `)

Scrip name Face value As at March 31, 2011 As at March 31, 2010

Numbers Amount Numbers Amount

Aban Offhore Limited 2 - - 6,278 7,298,489

Aditya Birla Nuvo Limited 10 - - 6,121 5,547,462

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(Amount in `)



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- - - (463,850,215) - (463,850,215)

Brokerage 1,987,407 - - - - 1,987,407

(276,588) - - - - (276,588)

Investment (net) - - - 680,000,000 190,000,000 870,000,000

- - - (600,000,000) (195,000,000) (795,000,000)

Advances returned/ 167,540,712,620 5,847,741 576,024 5,817,797,631 173,364,934,016

reimbursement of expenses (35,619,195,525) (31,998,900) (30,338,765) (4,804,607,826) (40,486,141,016)

Advances taken/ 167,540,712,620 5,847,741 576,024 517,797,631 173,364,934,016

allocation of expenses (35,619,195,525) (31,998,900) (30,338,765) (4,804,607,826) (40,486,141,016)

Closing balances



Sundry receivables 1,702,300,003 1,702,300,003

- (2,722,441,502) - - (2,722,441,502)

Note: Figures in bracket represent previous year's figure.


charged to Profit and Loss account. The agreements are executed for a period ranging 1 to 5 years with a renewable clause.


party giving a prior notice period between 30 to 90 days. The minimum Lease rentals outstanding as at March 31, 2011, are

as under:

(Amount in `)


Up to one year 2,734,940 132,825



Total 3,400,940 132,825




Deferred Tax Assets (Amount in `)

Sr. No. Particulars As at 31.03.2011 As at 31.03.2010

a. On Provision for Doubtful Debts 6,685,872 7,024,166

b. On Provision for Standard assets 23,750,922 -

c. On Depreciation (108,968) 137,281

d. On Gratuity (281,754) -

Total 30,046,072 7,161,447

13. The Company is recognising and accruing the employee benefit as per accounting standard (AS) – 15 on “Employee

Benefits”.

Details are given below

Assumptions 2010-2011

Discount rate 8.0%

Salary Escalation 5.0%

Rate of return on plan assets 8.0%

Change in Benefit Obligation

Liability at the beginning of the year -

Interest Cost -

Current Service Cost -


Benefit paid 60,577

Actuarial (Gain)/ Loss on obligations 510,515


Amount Recognised in the Balance Sheet


Fair value of plan Assets at the end of the year 3,227,117

Funded Status (Surplus) 787,633


Expenses Recognised in the Income statement


Interest Cost -

Expected return on plan assets -

Benefit Paid 60,577

Actuarial (Gain) or Loss 510,515

Expense Recognised in P&L (2,439,484)

Balance Sheet reconciliation

Opening Net liability -


Employers contribution 3,287,694

Benefit Paid 60,577


14. Details of current Investments are as under:

Quoted, Non - Trade, Current (valued at cost or market value whichever is lower) (Amount in `)





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(Amount in `)



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Details of current Investments (Contd.) (Amount in `)



Anant Raj Industries Limited 2 - - 111,015 14,770,546

Ansal Properties & Infrastructure Limited 5 - - 112,504 8,004,660

Apollo Tyres Limited 1 - - 101,323 4,967,546

Bajaj Electricals Limited 2 - - 31,145 4,979,721

Bajaj Holding And Investment Limited 10 - - 10,011 4,958,428

C E S C Limited 10 - - 27,403 10,487,128

Eveready Industries India Limited 5 - - 66,667 3,852,544

Gayatri Projects Limited 10 - - 13,297 5,109,372

Glaxosmithkline Consumer Healthcare Limited 10 - - 4,194 5,448,451

Gujarat NRE Coke Limited 10 - - 7,488 654,826

HCL Infosystems Limited 2 - - 36,088 4,907,968

HCL Technologies Limited 2 - - 24,039 7,103,339

Housing Development and Infrastructure Limited 10 - - 15,154 4,339,348

ICICI Bank Limited 10 - - 5,362 4,416,569

India Cement Limited 10 - - 45,146 5,746,348

Indiabulls Financial Services Limited 2 - - 115,543 12,143,569

Indusind Bank Limited 10 - - 41,032 5,459,223

IVRCL Infrastructures & Projects Limited 2 - - 67,512 11,206,992

Jai Balaji Industries Limited 10 - - 52,492 12,521,967

Jindal South West Holding Limited 10 - - 1,273 2,216,229

Jyoti Structure Limited 10 - - 35,250 4,959,193

Lupin Limited 10 - - 4,068 5,848,486

Mahindra & Mahindra Limited 5 - - 6,390 2,936,001

Mercator Lines Limited 1 - - 68,639 3,819,760

Mindtree Limited 10 - - 9,542 5,087,293

Moser-Baer (India) Limited 10 - - 63,012 4,599,876

Patni Computer Systems Limited 2 - - 3,090 14,163,428

Piramal Healthcare Limited 2 - - 15,871 6,374,176

Prism Cement Limited 10 - - 47,973 2,619,982

Shree Renuka Sugars Limited 1 - - 176,140 12,558,782

Simplex Infrastructure Limited 2 - - 8,520 3,853,596

United Phosphorus Limited 2 - - 330,20 4,781,626

Voltas Limited 1 - - 42,188 6,430,556

Yes Bank Limited 10 - - 24,066 5,352,278

Zee Entertainment Enterprises Limited 1 - - 21,424 5,082,229

Total - 234,607,988

15. Basic and Diluted Earnings per share [“EPS”] computed in accordance with Accounting Standard (AS) 20

“Earnings per share”

Particulars 2010-11 2009-10

Basic

Profit after tax as per Profit and Loss account A 826,577,291 475,504,290

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

EPS (Rupees) A/B 3.49 2.01

Diluted

Profit after tax as per Profit and Loss account C 82 6,577,291 475,504,290

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

Add: Potential Equity Shares on Account conversion of 5,825,000 8,591,164

Employees Stock Options

Weighted Number of Shares Outstanding D 242,979,030 245,745,194

EPS (Rupees) C/D 3.40 1.93

16. Disclosure as required under Notification No. DNBS. 200/CGM(PK)-2008 dated 01 August 2008 issued by

Reserve Bank of India

a. Capital Adequacy Ratio

Items Current Year Previous Year

CRAR (%) 29.95% 47.65%

CRAR - Tier I Capital (%) 29.73% 47.65%

CRAR - Tier II Capital (%) 0.22% -

b. Exposure to Real Estate (` in mn)

Category Current Year Previous Year

a) Direct exposure

(i) Residential Mortgages -

Lending fully secured by mortgages on residential property that is or

will be occupied by the borrower or that is rented;-

Upto ̀ 1.5 mn- 258.8 285.2

More than ̀ 1.5 mn 10,059.8 2,256.0

(ii) Commercial Real Estate -

Lending secured by mortgages on commercial real estates (office 5,632.9 2,768.3

buildings retail space multipurpose commercial premises multi-family

residential buildings multi-tenanted commercial premises industrial

or warehouse space hotels land acquisition development and

construction etc.). Exposure would also include non-fund based

(NFB) limits;

(iii) Investments in Mortgage Backed Securities (MBS) and other

securitised exposures -

a. Residential - -

b. Commercial Real Estate - -

b) Indirect Exposure

Fund based and non-fund based exposures on National Housing Bank

(NHB) and Housing Finance Companies (HFCs). 1,305.0 625.0

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Details of current Investments (Contd.) (Amount in `)








C E S C Limited 10 - - 27,403 10,487,128




Gujarat NRE Coke Limited 10 - - 7,488 654,826



Housing Development and Infrastructure Limited 10 - - 15,154 4,339,348









Lupin Limited 10 - - 4,068 5,848,486











Voltas Limited 1 - - 42,188 6,430,556

Yes Bank Limited 10 - - 24,066 5,352,278


Total - 234,607,988

15. Basic and Diluted Earnings per share [“EPS”] computed in accordance with Accounting Standard (AS) 20

“Earnings per share”

Particulars 2010-11 2009-10

Basic




Diluted

Profit after tax as per Profit and Loss account C 82 6,577,291 475,504,290



Employees Stock Options

Weighted Number of Shares Outstanding D 242,979,030 245,745,194

EPS (Rupees) C/D 3.40 1.93

16. Disclosure as required under Notification No. DNBS. 200/CGM(PK)-2008 dated 01 August 2008 issued by

Reserve Bank of India

a. Capital Adequacy Ratio

Items Current Year Previous Year

CRAR (%) 29.95% 47.65%

CRAR - Tier I Capital (%) 29.73% 47.65%

CRAR - Tier II Capital (%) 0.22% -

b. Exposure to Real Estate (` in mn)

Category Current Year Previous Year

a) Direct exposure

(i) Residential Mortgages -

Lending fully secured by mortgages on residential property that is or

will be occupied by the borrower or that is rented;-

Upto ̀ 1.5 mn- 258.8 285.2

More than ̀ 1.5 mn 10,059.8 2,256.0

(ii) Commercial Real Estate -

Lending secured by mortgages on commercial real estates (office 5,632.9 2,768.3

buildings retail space multipurpose commercial premises multi-family

residential buildings multi-tenanted commercial premises industrial

or warehouse space hotels land acquisition development and

construction etc.). Exposure would also include non-fund based

(NFB) limits;

(iii) Investments in Mortgage Backed Securities (MBS) and other

securitised exposures -

a. Residential - -

b. Commercial Real Estate - -

b) Indirect Exposure

Fund based and non-fund based exposures on National Housing Bank

(NHB) and Housing Finance Companies (HFCs). 1,305.0 625.0

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c. Maturity pattern of certain items of assets and liabilities (` in mn)

Liabilities Assets

Borrowings Market Advances Investments

from banks Borrowings

1 day to 30/31 days (one month) 0.1 2,923.3 9,436.7 -

Over one to 2 months - 1,700.0 868.9 -

Over 2 to 3 months - 4,020.0 1,279.7 -

Over 3 to 6 months - 1,100.0 1,588.9 -

Over 6 to 1 year 375.0 252.0 648.1 -

Over 1 to 3 years 6,375.0 2,335.0 6,112.3 1,105.7

Over 3 to 5 years 1,750.0 - 2,175.9 -

Over 5 years - - 8,908.0 3,312.1

Total 8,500.1 12,330.3 31,018.6 4,417.8

17. Asset classification (Amount in `)

Asset Classification Outstanding Balance Provision

Standard Assets 28,481,196,693 71,501,232

(14,235,605,863) -

Sub-Standard Assets 98,191,670 15,306,343

(54,362,482) (6,067,143)

Doubtful Assets 1,987,411 894,335

- -

Loss Assets 5,786,163 3,926,880

(13,284,261) (13,284,261)

Note:

a. In terms of RBI circular a general provision of ` 71,501,232 (Previous Year: Nil) has been made during the year at 0.25 % of the

Standard Assets under the head 'Provision on Standard loans' in the Profit & Loss account.

b. Provision is created after considering credit for securities available against the loans.

c. Figures in bracket represent previous year's figure.

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

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

Particulars Amount Outstanding Amount Overdue

Liabilities Side :

1. Loans and advances availed by the NBFCS inclusive of interest

accrued there on but not paid :

(a) Debentures:

Secured 3,545.2 -

Unsecured (Other than falling within the meaning of public deposits) 291.3 -

(b) Deferred Credits - -

(c) Term Loans 8,512.7 -

(d) Inter – corporate loans and borrowings - -

(e) Commercial Paper 8,660.0 -

(f) Other Loans (specify nature) - -

Assets Side: (` in mn)

2. Break – up of Loans and Advances including bills Receivables

[Other than included in (4) below] Amount Outstanding

(a) Secured 28,450.1

(b) Unsecured 2,568.5

3. Break- up of Leased Assets and stock on hire and other assets counting

towards AFC activities

(i) Lease assets including lease rentals under sundry debtors -

(a) Financial lease -

(b) Operating lease -

(ii) Stock on hire including hire charges under sundry debtors

(a) Assets on hire -

(b) Repossessed Assets -

(iii) Other Loans counting towards AFC activities

(a) Loans where assets have been repossessed -

(b) Loans other than (a) above -

4. Break-up of Investments:

Current Investments :

1 Quoted :

(i) Shares:

(a) Equity -

(b) Preference -

(ii) Debentures and Bonds -

(iii) Units of mutual funds -

(iv) Government Securities -

(v) Others (Commercial Deposits)

2 Unquoted:

(i) Shares:

(a) Equity 105.2

(b) Preference -




(v) Others (please specify) -

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c. Maturity pattern of certain items of assets and liabilities (` in mn)

Liabilities Assets

Borrowings Market Advances Investments

from banks Borrowings

1 day to 30/31 days (one month) 0.1 2,923.3 9,436.7 -

Over one to 2 months - 1,700.0 868.9 -

Over 2 to 3 months - 4,020.0 1,279.7 -

Over 3 to 6 months - 1,100.0 1,588.9 -

Over 6 to 1 year 375.0 252.0 648.1 -

Over 1 to 3 years 6,375.0 2,335.0 6,112.3 1,105.7

Over 3 to 5 years 1,750.0 - 2,175.9 -

Over 5 years - - 8,908.0 3,312.1

Total 8,500.1 12,330.3 31,018.6 4,417.8

17. Asset classification (Amount in `)

Asset Classification Outstanding Balance Provision

Standard Assets 28,481,196,693 71,501,232

(14,235,605,863) -

Sub-Standard Assets 98,191,670 15,306,343

(54,362,482) (6,067,143)

Doubtful Assets 1,987,411 894,335

- -

Loss Assets 5,786,163 3,926,880

(13,284,261) (13,284,261)

Note:

a. In terms of RBI circular a general provision of ` 71,501,232 (Previous Year: Nil) has been made during the year at 0.25 % of the

Standard Assets under the head 'Provision on Standard loans' in the Profit & Loss account.

b. Provision is created after considering credit for securities available against the loans.

c. Figures in bracket represent previous year's figure.

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

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

Particulars Amount Outstanding Amount Overdue

Liabilities Side :

1. Loans and advances availed by the NBFCS inclusive of interest

accrued there on but not paid :

(a) Debentures:

Secured 3,545.2 -

Unsecured (Other than falling within the meaning of public deposits) 291.3 -

(b) Deferred Credits - -

(c) Term Loans 8,512.7 -

(d) Inter – corporate loans and borrowings - -

(e) Commercial Paper 8,660.0 -

(f) Other Loans (specify nature) - -

Assets Side: (` in mn)

2. Break – up of Loans and Advances including bills Receivables

[Other than included in (4) below] Amount Outstanding

(a) Secured 28,450.1

(b) Unsecured 2,568.5

3. Break- up of Leased Assets and stock on hire and other assets counting

towards AFC activities

(i) Lease assets including lease rentals under sundry debtors -

(a) Financial lease -

(b) Operating lease -

(ii) Stock on hire including hire charges under sundry debtors

(a) Assets on hire -

(b) Repossessed Assets -

(iii) Other Loans counting towards AFC activities

(a) Loans where assets have been repossessed -

(b) Loans other than (a) above -

4. Break-up of Investments:

Current Investments :

1 Quoted :

(i) Shares:

(a) Equity -

(b) Preference -




(v) Others (Commercial Deposits)

2 Unquoted:

(i) Shares:

(a) Equity 105.2

(b) Preference -





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Long Term Investments: Amount Outstanding

1 Quoted:

(i) Shares:

(a) Equity

(b) Preference -





2 Unquoted:

(i) Shares:

(a) Equity 2,627.1

(b) Preference 300.0


(iii) Units of mutual funds 1,000.5


(v) Others (please specify) India Infoline Venture Capital Fund 385.0

5. Borrower group-wise classification of all assets financed as in (2) and (3) above: (` in mn)

Amount net of provisions

Category Secured Unsecured Total

1. Related Parties**

(a) Subsidiaries - - -

(b) Companies in the same group - 1,702.3 1,702.3

(c) Other related parties - - -

2. Other than related parties 28,450.1 866.2 29,316.3

Total 28,450.1 2,568.5 31,018.6

6. Investor group wise classification of all investments (current and long term) in shares (` in mn)

and securities (both quoted and unquoted)

Category Market Value/ Break up or Book value

fair value or NAV (net of provisions)

1 Related Parties**

a) Subsidiaries 2,927.1 2,927.1

b) Companies in the same group - -

c) Other related parties 385.0 385.0

2 Other than related parties 1,135.6 1,105.7

Total 4,447.6 4,417.8

**As per Accounting Standard of ICAI

7. Other Information: (` in mn)

Particulars Amount

(i) Gross Non-Performing Assets

(a) Related parties -

(b) Other than related parties 106.0

(ii) Net Non-Performing Assets



(iii) Assets acquired in satisfaction of debt -





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Long Term Investments: Amount Outstanding

1 Quoted:

(i) Shares:

(a) Equity

(b) Preference -





2 Unquoted:

(i) Shares:

(a) Equity 2,627.1

(b) Preference 300.0


(iii) Units of mutual funds 1,000.5


(v) Others (please specify) India Infoline Venture Capital Fund 385.0

5. Borrower group-wise classification of all assets financed as in (2) and (3) above: (` in mn)

Amount net of provisions

Category Secured Unsecured Total

1. Related Parties**

(a) Subsidiaries - - -

(b) Companies in the same group - 1,702.3 1,702.3

(c) Other related parties - - -

2. Other than related parties 28,450.1 866.2 29,316.3

Total 28,450.1 2,568.5 31,018.6

6. Investor group wise classification of all investments (current and long term) in shares (` in mn)

and securities (both quoted and unquoted)

Category Market Value/ Break up or Book value

fair value or NAV (net of provisions)

1 Related Parties**

a) Subsidiaries 2,927.1 2,927.1

b) Companies in the same group - -

c) Other related parties 385.0 385.0

2 Other than related parties 1,135.6 1,105.7

Total 4,447.6 4,417.8

**As per Accounting Standard of ICAI

7. Other Information: (` in mn)

Particulars Amount

(i) Gross Non-Performing Assets



(ii) Net Non-Performing Assets



(iii) Assets acquired in satisfaction of debt -





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CASH FLOWS FROM OPERATING ACTIVITIES

Cash flows from operating activities

Profit before taxation, and exceptional item 1,194,422,169 662,455,669

Adjustments for:

Depreciation 8,510,416 634,405



Gratuity & Leave Enchasment 3,896,043 -

Operating profit before working capital changes 1,277,792,029 667,488,964

(Increase) / Decrease in Loans & Advances (14,670,982,623) (7,632,790,162)

(Purchase)/Sale of Investments/ Stock on Trade (471,155,766) 2,246,249,302

Increase/ (Decrease) in Group company balances 1,020,141,502 (1,586,154,172)

Increase/ (Decrease) in Current Liabilities 1,879,710,995 (823,176,904)

Increase/ (Decrease) in Provisions (3,521,073) (1,036,808)

Cash generated from operations (10,968,014,934) (7,129,419,780)

Tax (Paid)/ Refund (368,296,677) (234,385,542)

Net cash from operating activities (11,336,311,611) (7,363,805,322)

Cash flows from investing activities

Purchase of fixed assets (156,965,773) -

Purchase of Investments (Subsidiaries) (680,000,000) (600,000,000)

Net cash from investing activities (836,965,773) (600,000,000)

As at

March 31, 2011Particulars

As atMarch 31, 2010

(Amount in `)

Cash Flow Statementfor the year ended March 31, 2011

Cash Flow Statement (Contd.)for the year ended March 31, 2011

Cash flows from financing activities

Dividend paid (138,271,175) -

Share issue expenses (16,500,000) -

Proceeds of borrowings (net) 11,625,309,110 8,705,100,000

Net cash used in financing activities 11,470,537,935 8,705,100,000

Net increase in cash and cash equivalents (702,739,449) 741,294,678

Opening Cash and cash equivalents

Cash on hand and balances with banks 1,015,599,411 274,304,733

1,015,599,411 274,304,733

Closing Cash and cash equivalents

Cash on hand and balances with banks 312,859,962 1,015,599,411


As atMarch 31, 2011

ParticularsAs at

March 31, 2010

(Amount in `)

1. Cash flow statement has been prepared under the Indirect Method as set out in the Accounting Standard (AS-3)"Cash Flow

Statement" issued by the Institute of Chartered Accountants of India

2. Previous year's figure are re-grouped \re-arranged, wherever necessary





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Cash flows from operating activities

Profit before taxation, and exceptional item 1,194,422,169 662,455,669

Adjustments for:

Depreciation 8,510,416 634,405



Gratuity & Leave Enchasment 3,896,043 -



(Purchase)/Sale of Investments/ Stock on Trade (471,155,766) 2,246,249,302

Increase/ (Decrease) in Group company balances 1,020,141,502 (1,586,154,172)

Increase/ (Decrease) in Current Liabilities 1,879,710,995 (823,176,904)

Increase/ (Decrease) in Provisions (3,521,073) (1,036,808)


Tax (Paid)/ Refund (368,296,677) (234,385,542)


Cash flows from investing activities


Purchase of Investments (Subsidiaries) (680,000,000) (600,000,000)

Net cash from investing activities (836,965,773) (600,000,000)

As at


As atMarch 31, 2010

(Amount in `)

Cash Flow Statementfor the year ended March 31, 2011

Cash Flow Statement (Contd.)for the year ended March 31, 2011

Cash flows from financing activities


Share issue expenses (16,500,000) -

Proceeds of borrowings (net) 11,625,309,110 8,705,100,000





1,015,599,411 274,304,733


Cash on hand and balances with banks 312,859,962 1,015,599,411


As atMarch 31, 2011

ParticularsAs at

March 31, 2010

(Amount in `)



2. Previous year's figure are re-grouped \re-arranged, wherever necessary





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BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

I. Registration Details

Registration No. 147365

Balance Sheet Date March 31, 2011

II. Capital raised during the year

Public Issue N I L

Bonus Issue 2 1 3 4 3 8 6

III. Position of Mobilisation and Deployment of Funds

Total Liabilities 3 4 0 6 0 7 3 9

SOURCES OF FUNDS

Paid-up Capital 2 3 7 1 5 4 0

Secured Loans 1 1 8 9 8 4 0 9


Net Fixed Assets 1 5 0 6 6 9

Net Current Assets 2 9 4 6 2 2 6 0

Accumulated Losses N I L

IV. Performance of Company

Turnover 4 5 1 9 0 5 9

Profit/(Loss) Before Tax + 1 1 9 4 4 2 2(Please tick Appropriate box + for Profit - for Loss )

Basic Earnings Per Share 3 . 4 9 in Rs.

V. General Names of three Principal Products/ Services of Company (as per monetary terms)

Item Code No. (ITC Code)

Product Description Loan Company

State Code 1 1

(Amount in ` Thousands)

Rights Issue N I L

Private Placement N I L


Total Assets 3 4 0 6 0 7 3 9

SOURCES OF FUNDS

Reserves & Surplus 1 0 8 5 8 7 9 0

Unsecured Loans 8 9 3 2 0 0 0


Investments 4 4 1 7 7 6 4

Deferred Tax -

Misc. Expenditure -


Total Expenditure 3 3 2 4 6 3 7

Profit/(Loss) After Tax + 8 2 6 5 7 7

Dividend N I L





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Place : Mumbai


STATEMENT RELATING TO SUBSIDIARY COMPANIES PURSUANT TO APPROVAL GRANTED U/S 212 (8) OF THE COMPANIES ACT, 1956

1 Equity Share Capital 145.0 14.0 309.0

2 Reserves 1,468.0 59.1 1,079.2

3 Total assets 2,440.8 73.8 3,301.1

4 Total liabilities 2,440.8 73.8 3,301.1

5 Investments (other than investment in subsidiaries) - 0.0 -

6 Total turnover 314.8 67.0 294.0

7 Profit /(Loss) before taxation 48.9 6.2 90.9

8 Provision for taxation (including deferred tax) 16.6 6.8 26.7

9 Profit after taxation 32.3 (0.6) 64.2

10 Extent of Interest in subsidiaries 100.00% 100.00% 100.00%

11 Proposed Dividend - - -

ParticularsMoneyline

Credit Limited

India Infoline Distribution

Company Limited

India Infoline Housing

Finance Limited

(Amount in ` mn)

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BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

I. Registration Details

Registration No. 147365

Balance Sheet Date March 31, 2011

II. Capital raised during the year

Public Issue N I L

Bonus Issue 2 1 3 4 3 8 6

III. Position of Mobilisation and Deployment of Funds

Total Liabilities 3 4 0 6 0 7 3 9

SOURCES OF FUNDS

Paid-up Capital 2 3 7 1 5 4 0

Secured Loans 1 1 8 9 8 4 0 9


Net Fixed Assets 1 5 0 6 6 9

Net Current Assets 2 9 4 6 2 2 6 0

Accumulated Losses N I L

IV. Performance of Company

Turnover 4 5 1 9 0 5 9

Profit/(Loss) Before Tax + 1 1 9 4 4 2 2(Please tick Appropriate box + for Profit - for Loss )

Basic Earnings Per Share 3 . 4 9 in Rs.

V. General Names of three Principal Products/ Services of Company (as per monetary terms)

Item Code No. (ITC Code)

Product Description Loan Company

State Code 1 1


Rights Issue N I L

Private Placement N I L


Total Assets 3 4 0 6 0 7 3 9

SOURCES OF FUNDS

Reserves & Surplus 1 0 8 5 8 7 9 0

Unsecured Loans 8 9 3 2 0 0 0


Investments 4 4 1 7 7 6 4

Deferred Tax -

Misc. Expenditure -


Total Expenditure 3 3 2 4 6 3 7

Profit/(Loss) After Tax + 8 2 6 5 7 7

Dividend N I L





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Place : Mumbai


STATEMENT RELATING TO SUBSIDIARY COMPANIES PURSUANT TO APPROVAL GRANTED U/S 212 (8) OF THE COMPANIES ACT, 1956

1 Equity Share Capital 145.0 14.0 309.0

2 Reserves 1,468.0 59.1 1,079.2

3 Total assets 2,440.8 73.8 3,301.1

4 Total liabilities 2,440.8 73.8 3,301.1

5 Investments (other than investment in subsidiaries) - 0.0 -

6 Total turnover 314.8 67.0 294.0

7 Profit /(Loss) before taxation 48.9 6.2 90.9

8 Provision for taxation (including deferred tax) 16.6 6.8 26.7

9 Profit after taxation 32.3 (0.6) 64.2

10 Extent of Interest in subsidiaries 100.00% 100.00% 100.00%

11 Proposed Dividend - - -

ParticularsMoneyline

Credit Limited

India Infoline Distribution

Company Limited

India Infoline Housing

Finance Limited

(Amount in ` mn)

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Consolidated Financial Statements of


Auditors’ Report on Consolidated Financial Statements

To

The Board of DirectorsIndia Infoline Investment Services LimitedMumbai

Sub: Report on Consolidated Financial Statements as at

March 31, 2011

We have audited the attached Consolidated Balance Sheet of

India Infoline Investment Services Limited (the Company) and

its subsidiaries namely,

(1) India Infoline Distribution Company Limited,

(2) India Infoline Housing Finance Limited, and

(3) Moneyline Credit Limited

(collectively referred to as “the group”), as at March 31, 2011,

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 and have been

prepared by the management on the basis of separate financial

statements and other financial information regarding

components. Our responsibility is to express an opinion on


We conducted our audit in accordance with the auditing




material misstatement. An audit includes examining, on test





statements presentation. We believe that our audit provides a

reasonable basis for our opinion.

We report that the consolidated financial statements have

been prepared by the Company’s management in accordance

with the requirements of the Accounting Standard (AS) 21,

“Consolidated Financial Statements”, issued by the Institute

of Chartered Accountants of India, and on the basis of the

separate audited financial statements of the Group included in

the consolidated financial statements.

We report that on the basis of the information and explanation

given to us and on the separate audit report on individual

audited financial statements of the Group, we are of the

opinion that the consolidated financial statements, read

together with significant accounting policies and notes

appearing thereon, give true and fair view in conformity with

the accounting principles generally accepted in India:

a) in the case of Consolidated Balance Sheet, of the state

of affairs of the Group as at March 31, 2011;

b) in the case of Consolidated Profit and Loss Account, of

the profit of the Group for the year ended on that date;

and

c) in the case of the Consolidated Cash Flow Statement,

of the Cash Flows of the Group for the year ended on

that date.




By the hand of

Tirtharaj Khot



Consolidated Balance Sheetas at March 31, 2011

SOURCES OF FUNDS



Share Capital A 2,371,540,300 237,154,030

Reserves and Surplus B 11,040,486,305 13,412,026,605 12,407,143,401 12,644,297,431

Loan Fund

Secured Loan C 13,998,409,110 3,609,423,591

Unsecured Loan D 8,932,000,000 22,930,409,110 6,590,000,000 10,199,423,591

Total 36,342,435,715 22,843,721,022

Goodwill (On Consolidation) 34,479,263 34,479,263

Fixed Assets (Including Intangibles) E

Gross Block 158,164,895 49,478,438

Less : Depreciation and Amortisation (31,937,732) (30,240,998)

Net Block 126,227,163 19,237,440

Capital Work-In-Progress 37,492,392 163,719,555 - 19,237,440

Investments F 1,490,734,091 1,129,789,400

Deferred Tax

Deferred Tax Assets 44,385,805 22,052,875

Less: Deferred Tax Liabilities - 44,385,805 - 22,052,875

Current Assets, Loans and Advances G

Stock on Hand 223,833,262 113,693,188

Sundry Debtors 5,749,788 10,189,090

Cash and Bank Balances 1,136,206,627 2,060,932,935

Loans and Advances 35,977,821,965 20,135,251,168

37,343,611,642 22,320,066,381

Less : Current Liabilities & Provisions H


Provisions 83,164,058 4,134,908

2,734,494,641 681,904,337


Total 36,342,435,715 22,843,721,022

Significant Accounting policies and notes to Accounts N

ScheduleAs at

March 31, 2011

As atMarch 31, 2010

(Amount in `)





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nConsolidated Financial Statements of


Auditors’ Report on Consolidated Financial Statements

To

The Board of DirectorsIndia Infoline Investment Services LimitedMumbai

Sub: Report on Consolidated Financial Statements as at

March 31, 2011

We have audited the attached Consolidated Balance Sheet of

India Infoline Investment Services Limited (the Company) and

its subsidiaries namely,

(1) India Infoline Distribution Company Limited,

(2) India Infoline Housing Finance Limited, and

(3) Moneyline Credit Limited

(collectively referred to as “the group”), as at March 31, 2011,

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 and have been

prepared by the management on the basis of separate financial

statements and other financial information regarding

components. Our responsibility is to express an opinion on


We conducted our audit in accordance with the auditing




material misstatement. An audit includes examining, on test





statements presentation. We believe that our audit provides a

reasonable basis for our opinion.

We report that the consolidated financial statements have

been prepared by the Company’s management in accordance

with the requirements of the Accounting Standard (AS) 21,

“Consolidated Financial Statements”, issued by the Institute

of Chartered Accountants of India, and on the basis of the

separate audited financial statements of the Group included in

the consolidated financial statements.

We report that on the basis of the information and explanation

given to us and on the separate audit report on individual

audited financial statements of the Group, we are of the

opinion that the consolidated financial statements, read

together with significant accounting policies and notes

appearing thereon, give true and fair view in conformity with

the accounting principles generally accepted in India:

a) in the case of Consolidated Balance Sheet, of the state

of affairs of the Group as at March 31, 2011;

b) in the case of Consolidated Profit and Loss Account, of

the profit of the Group for the year ended on that date;

and

c) in the case of the Consolidated Cash Flow Statement,

of the Cash Flows of the Group for the year ended on

that date.




By the hand of

Tirtharaj Khot



Consolidated Balance Sheetas at March 31, 2011

SOURCES OF FUNDS



Share Capital A 2,371,540,300 237,154,030

Reserves and Surplus B 11,040,486,305 13,412,026,605 12,407,143,401 12,644,297,431

Loan Fund

Secured Loan C 13,998,409,110 3,609,423,591

Unsecured Loan D 8,932,000,000 22,930,409,110 6,590,000,000 10,199,423,591

Total 36,342,435,715 22,843,721,022

Goodwill (On Consolidation) 34,479,263 34,479,263

Fixed Assets (Including Intangibles) E

Gross Block 158,164,895 49,478,438

Less : Depreciation and Amortisation (31,937,732) (30,240,998)

Net Block 126,227,163 19,237,440

Capital Work-In-Progress 37,492,392 163,719,555 - 19,237,440

Investments F 1,490,734,091 1,129,789,400

Deferred Tax

Deferred Tax Assets 44,385,805 22,052,875

Less: Deferred Tax Liabilities - 44,385,805 - 22,052,875

Current Assets, Loans and Advances G

Stock on Hand 223,833,262 113,693,188

Sundry Debtors 5,749,788 10,189,090

Cash and Bank Balances 1,136,206,627 2,060,932,935

Loans and Advances 35,977,821,965 20,135,251,168

37,343,611,642 22,320,066,381

Less : Current Liabilities & Provisions H


Provisions 83,164,058 4,134,908

2,734,494,641 681,904,337


Total 36,342,435,715 22,843,721,022


ScheduleAs at

March 31, 2011

As atMarch 31, 2010

(Amount in `)





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Consolidated


Financial Statements of





By the hand of




Place : Mumbai


Consolidated Profit & Loss Accountfor the year ended March 31, 2011

INCOME

EXPENDITURE

Income from Operations I 4,697,754,804 2,225,231,620

Other Income J 497,160,652 5,194,915,456 114,402,109 2,339,633,729

Direct cost K 450,640,958 549,631,506

Employee cost L 689,897,774 451,222,654

Administration & other expense M 504,281,725 292,995,875

Interest 2,192,673,055 268,216,837

Depreciation E 16,976,905 3,854,470,417 11,561,541 1,573,628,413


Less: Provision for taxation

- Current 427,618,473 210,106,631

- Deferred tax (net) (22,332,930) 14,593,374

- Short Provision for Income Tax 12,659,147 3,380,682

Profit after tax 922,500,349 537,924,629

Net profit after tax for Available appropration 922,500,349 537,924,629

Appropriations

Dividend 118,577,015 -

Dividend Distribution Tax 19,694,160 -

Transfer to Special Reserve 185,500,000 102,428,819

Transfer to General Reserve 83,000,000 -

Balance of Profit brought forward from previous year 1,277,338,109 841,842,299

Balance of Profit carried forward 1,793,067,283 1,277,338,109

Earning Per Share - Basic 3.89 2.27

Earning Per Share - Diluted 3.80 2.19

Face Value Per Share 10.00 10.00


Schedule 2010 - 2011 2009 - 2010

(Amount in `)

Schedule forming part of the Consolidated Balance Sheetas at March 31, 2011

As at

March 31, 2011

As atMarch 31, 2010

(Amount in `)



Authorised :

300,000,000( Previous Year 50,000,000 ) Equity Shares of ̀ 10/- each 3,000,000,000 500,000,000

Issued , Subscribed and Paid Up : 2,371,540,300 237,154,030

(Includes 213,438,627 (Previous Year Nil) equity shares alloted by way of bonus as fully

paid up shares by capitalisation of securities premium account

(Out of above 182,000,000 (Previous Year 18,200,000) equity shares are held

by its Holding Company India Infoline Limited and 52,838,700 (Previous Year 5,283,870)


Total 2,371,540,300 237,154,030

Securities Premium Account

Opening Balance 10,806,624,106 10,808,374,106


Deduction during the year , for issue of bonus shares including share issue expenses (2,150,886,270) (1,750,000)

Closing Balance 8,655,737,836 10,806,624,106

General Reserve

Opening Balance - -



Special Reserve*

Opening Balance 323,181,186 220,752,367


Closing Balance 508,681,186 323,181,186

*(pursuant to Section 45 1C of RBI Act,1934 and Section 29C of National Housing Bank Act, 1987)


Total 11,040,486,305 12,407,143,401

Schedule C:

Schedule D: Unsecured Loans

Secured Loans

Loans from Banks ( Secured against receivables ) 10,600,109,110 2,994,323,591

Non Convertible Debentures (Secured Against Immovable Property, Stock & Book Debts) 3,398,300,000 615,100,000

Total 13,998,409,110 3,609,423,591

Refer Note : Schedule N- Part B Point 3


Commercial Paper 8,660,000,000 1,400,000,000

Total 8,932,000,000 6,590,000,000

Total Loan Fund 22,930,409,110 10,199,423,591

Secured and Unsecured loans include ̀ 10,937,109,110 (Previous Year 7,840,000,000) due in one year`

51 52

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By the hand of




Place : Mumbai


Consolidated Profit & Loss Accountfor the year ended March 31, 2011

INCOME

EXPENDITURE

Income from Operations I 4,697,754,804 2,225,231,620

Other Income J 497,160,652 5,194,915,456 114,402,109 2,339,633,729

Direct cost K 450,640,958 549,631,506

Employee cost L 689,897,774 451,222,654

Administration & other expense M 504,281,725 292,995,875

Interest 2,192,673,055 268,216,837

Depreciation E 16,976,905 3,854,470,417 11,561,541 1,573,628,413


Less: Provision for taxation

- Current 427,618,473 210,106,631

- Deferred tax (net) (22,332,930) 14,593,374

- Short Provision for Income Tax 12,659,147 3,380,682

Profit after tax 922,500,349 537,924,629

Net profit after tax for Available appropration 922,500,349 537,924,629

Appropriations

Dividend 118,577,015 -

Dividend Distribution Tax 19,694,160 -

Transfer to Special Reserve 185,500,000 102,428,819

Transfer to General Reserve 83,000,000 -

Balance of Profit brought forward from previous year 1,277,338,109 841,842,299

Balance of Profit carried forward 1,793,067,283 1,277,338,109

Earning Per Share - Basic 3.89 2.27

Earning Per Share - Diluted 3.80 2.19

Face Value Per Share 10.00 10.00


Schedule 2010 - 2011 2009 - 2010

(Amount in `)


As at

March 31, 2011

As atMarch 31, 2010

(Amount in `)



Authorised :

300,000,000( Previous Year 50,000,000 ) Equity Shares of ̀ 10/- each 3,000,000,000 500,000,000

Issued , Subscribed and Paid Up : 2,371,540,300 237,154,030

(Includes 213,438,627 (Previous Year Nil) equity shares alloted by way of bonus as fully

paid up shares by capitalisation of securities premium account

(Out of above 182,000,000 (Previous Year 18,200,000) equity shares are held

by its Holding Company India Infoline Limited and 52,838,700 (Previous Year 5,283,870)


Total 2,371,540,300 237,154,030

Securities Premium Account

Opening Balance 10,806,624,106 10,808,374,106


Deduction during the year , for issue of bonus shares including share issue expenses (2,150,886,270) (1,750,000)

Closing Balance 8,655,737,836 10,806,624,106

General Reserve

Opening Balance - -



Special Reserve*

Opening Balance 323,181,186 220,752,367


Closing Balance 508,681,186 323,181,186

*(pursuant to Section 45 1C of RBI Act,1934 and Section 29C of National Housing Bank Act, 1987)


Total 11,040,486,305 12,407,143,401

Schedule C:

Schedule D: Unsecured Loans

Secured Loans

Loans from Banks ( Secured against receivables ) 10,600,109,110 2,994,323,591

Non Convertible Debentures (Secured Against Immovable Property, Stock & Book Debts) 3,398,300,000 615,100,000

Total 13,998,409,110 3,609,423,591

Refer Note : Schedule N- Part B Point 3


Commercial Paper 8,660,000,000 1,400,000,000

Total 8,932,000,000 6,590,000,000

Total Loan Fund 22,930,409,110 10,199,423,591

Secured and Unsecured loans include ̀ 10,937,109,110 (Previous Year 7,840,000,000) due in one year`

51 52

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QuantityAs at

31.03.2010

(Amount in `)

QuantityFace ValueAs at

31.03.2011

Schedule F: Investments

Quoted , Non - Trade , Current (valued At cost or

market value whichever is lower)

Equity Shares

(Schedule N- Part B Point 15 ) - 234,607,988

- 234,607,988

Un-Quoted,Non Trade,Long Term (Valued at cost )

Units of India Infoline 1 00 000 3,850 385,000,000 1,950 195,000,000

Venture Capital Fund ( IIFL Opportunity )

Arch pharma Limited 10 263,028 105,211,200 - -

490,211,200 195,000,000

Unquoted, Non Trade, Current, Valued At Market

Price/Cost whichever is lower

Birla Sunlife Mutual Fund

Birla Income plus Plan -B Growth 10 - 25,000 - 25,000

Birla Mid-Cap Fund Plan B : Growth 10 - - - 71,000



Axis Mutual Fund

Axis Liquid Fund 10 - - 200,019 200,019,204

DWS Mutual Fund

DWS Short Maturity Fund - Institutional Growth Plan 10 105,467,142 1,000,497,891 - -

(Schedule N- Part B Point 4)

1,000,522,891 700,181,412

1,490,734,091 1,129,789,400



Aggregate cost of Unquoted investments 490,211,200 195,000,000



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Year

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QuantityAs at

31.03.2010

(Amount in `)

QuantityFace ValueAs at

31.03.2011

Schedule F: Investments

Quoted , Non - Trade , Current (valued At cost or

market value whichever is lower)

Equity Shares

(Schedule N- Part B Point 15 ) - 234,607,988

- 234,607,988

Un-Quoted,Non Trade,Long Term (Valued at cost )

Units of India Infoline 1 00 000 3,850 385,000,000 1,950 195,000,000

Venture Capital Fund ( IIFL Opportunity )

Arch pharma Limited 10 263,028 105,211,200 - -

490,211,200 195,000,000

Unquoted, Non Trade, Current, Valued At Market

Price/Cost whichever is lower

Birla Sunlife Mutual Fund

Birla Income plus Plan -B Growth 10 - 25,000 - 25,000

Birla Mid-Cap Fund Plan B : Growth 10 - - - 71,000



Axis Mutual Fund

Axis Liquid Fund 10 - - 200,019 200,019,204

DWS Mutual Fund

DWS Short Maturity Fund - Institutional Growth Plan 10 105,467,142 1,000,497,891 - -

(Schedule N- Part B Point 4)

1,000,522,891 700,181,412

1,490,734,091 1,129,789,400



Aggregate cost of Unquoted investments 490,211,200 195,000,000



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Schedule G: Current Assets, Loans & Advances

a. Current Assets

I ) Sundry Debtors ( Unsecured , Considered

good, unless otherwise stated)

Less than 6 Months - Unsecured and considered good 5,749,788 10,189,090

5,749,788 10,189,090

Current Assets

II ) Stock on Hand ( Cost or Market price Units / Shares Rate

whichever is less )

Equity Shares





Stock On Hand - Options Units / Shares Strike Price

Nifty Call 27-12-2012 14,900 / 14,900 5,000 14,423,200 14,423,200

Nifty Call 28-06-2012 6,900 / - 4,100 9,936,000 -

Nifty Call 27-12-2012 1,400 / 6,500 5,100 1,488,000 7,358,400

Nifty Call 28-06-2012 - / 1,800 5,100 - 8,041,000

Nifty Call 28-06-2012 24,800 / 8,500 5,200 984,000 5,321,347

Nifty Call 27-12-2012 24,800 / - 5,200 10,121,413

Nifty Call 27-06-2013 24,800 / - 5,200 13,597,500

Nifty Call 27-12-2012 5,750 / - 5,300 5,318,750

223,833,262 113,693,188

Aggregate market value- Quoted 245,294,050 126,195,450

III) Cash and Bank Balance

Cash on Hand 279,502,969 536,450

Bank Balances With Schedule Banks :

In Current Accounts 411,172,022 1,691,390,341

In Fixed Deposits 445,531,636 369,006,144

1,136,206,627 2,060,932,935

As at

March 31, 2011

As atMarch 31, 2010

(Amount in `)

Schedule G: Current Assets, Loans & Advances (CONTD.)

Schedule H: Current Liabilities And Provisions

b.Loans And Advances

(Unsecured , Considered good, unless otherwise stated)


Advances recoverable in cash or in kind or for value to be received 390,088,051 277,883,208

Other Deposits 9,987,882 9,538,035

Advance Income Tax , Refund & Tax Deducted at Source (net of provisions) 75,403,901 90,656,090

Loans & Advances - Financing activity 32,889,735,854 16,267,831,903

Other Loans & Advances 717,194,650 571,711,705

Less: Provision for doubtful Loans (26,888,375) (24,860,101)

35,977,821,965 20,135,251,168

37,343,611,642 22,320,066,381

a. Current Liabilities

i) Sundry Creditors

Outstanding dues of micro and small enterprises. - -

Others 12,605,512 55,107

ii) Other Liabilities 2,638,725,071 677,714,322

2,651,330,583 677,769,429

b. Provisions


Provision for gratuity - 3,051,546

Provision for leave Encashment 667,595 1,083,362

83,164,058 4,134,908

Total 2,734,494,641 681,904,337

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010

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Schedule G: Current Assets, Loans & Advances

a. Current Assets

I ) Sundry Debtors ( Unsecured , Considered

good, unless otherwise stated)

Less than 6 Months - Unsecured and considered good 5,749,788 10,189,090

5,749,788 10,189,090

Current Assets

II ) Stock on Hand ( Cost or Market price Units / Shares Rate

whichever is less )

Equity Shares





Stock On Hand - Options Units / Shares Strike Price

Nifty Call 27-12-2012 14,900 / 14,900 5,000 14,423,200 14,423,200

Nifty Call 28-06-2012 6,900 / - 4,100 9,936,000 -

Nifty Call 27-12-2012 1,400 / 6,500 5,100 1,488,000 7,358,400

Nifty Call 28-06-2012 - / 1,800 5,100 - 8,041,000

Nifty Call 28-06-2012 24,800 / 8,500 5,200 984,000 5,321,347

Nifty Call 27-12-2012 24,800 / - 5,200 10,121,413

Nifty Call 27-06-2013 24,800 / - 5,200 13,597,500

Nifty Call 27-12-2012 5,750 / - 5,300 5,318,750

223,833,262 113,693,188

Aggregate market value- Quoted 245,294,050 126,195,450

III) Cash and Bank Balance

Cash on Hand 279,502,969 536,450

Bank Balances With Schedule Banks :

In Current Accounts 411,172,022 1,691,390,341

In Fixed Deposits 445,531,636 369,006,144

1,136,206,627 2,060,932,935

As at

March 31, 2011

As atMarch 31, 2010

(Amount in `)

Schedule G: Current Assets, Loans & Advances (CONTD.)

Schedule H: Current Liabilities And Provisions

b.Loans And Advances

(Unsecured , Considered good, unless otherwise stated)


Advances recoverable in cash or in kind or for value to be received 390,088,051 277,883,208

Other Deposits 9,987,882 9,538,035

Advance Income Tax , Refund & Tax Deducted at Source (net of provisions) 75,403,901 90,656,090

Loans & Advances - Financing activity 32,889,735,854 16,267,831,903

Other Loans & Advances 717,194,650 571,711,705

Less: Provision for doubtful Loans (26,888,375) (24,860,101)

35,977,821,965 20,135,251,168

37,343,611,642 22,320,066,381

a. Current Liabilities

i) Sundry Creditors

Outstanding dues of micro and small enterprises. - -

Others 12,605,512 55,107

ii) Other Liabilities 2,638,725,071 677,714,322

2,651,330,583 677,769,429

b. Provisions


Provision for gratuity - 3,051,546

Provision for leave Encashment 667,595 1,083,362

83,164,058 4,134,908

Total 2,734,494,641 681,904,337

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010

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Schedule forming part of the Consolidated Balance Sheetfor the year ended March 31, 2011

Schedule I: Income from Operations

Schedule J: Other Income

Schedule K: Direct Cost

Schedule L: Employee Cost

Income from Operation


Income from Financing Activities 4,455,810,272 2,010,062,414

Dividend income 48,348,882 118,462,252

Total

Miscelleneous income 66,711,287 3,885,473

Interest on Fixed Deposits (Gross) 24,772,230 17,589,733

Processing fee 347,532,538 56,228,528

Administration fee & other charges from customer 58,144,598 36,709,122

Profit / (loss) on sale of fixed assets - (10,747)

Total 497,160,653 114,402,109

Marketing and commission expenses 195,388,897 57,729,317

Provision for Doubtful Loans 2,028,274 8,193,602


Provision for Standard Loans-Teasers 2,224,858 -

Investment and financing related cost 170,857,324 483,708,587

Total 450,640,958 549,631,506


Contribution to provident Fund and other funds 11,329,111 6,852,560

Gratuity 1,069,761 1,398,065

Staff welfare expenses 19,980,083 9,809,669

Leave encashment 985,546 (1,091,042)

Total 689,897,774 451,222,654

4,697,754,804 2,225,231,620

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010


Schedule M: Administrative And Other Expenses

Advertisement expenses 65,955,379 60,427,237

Bad Debts - 1,608,928

Bank charges 5,351,960 744,003

Communication expenses 30,322,001 26,186,317

Electricity expenses 28,686,149 15,924,561

Legal and professional charges 71,258,299 47,432,205

Miscellaneous expenses 7,167,574 6,874,078

Office expenses 37,532,081 15,387,425

Postage and courier 13,547,082 7,778,227

Premises expenses 155,124,478 73,526,963

Printing and stationery 22,112,881 7,679,343

Repairs and maintenance

Computers 499,136 217,890

Others 12,256,597 5,828,809

Remuneration to auditors

Audit Fees 395,000 397,932

Certification work and other matters 73,000 15,000

Out of pocket expenses 21,987 -

Software charges 16,255,952 3,424,072

Travelling and conveyance 37,722,169 19,542,885

Total 504,281,725 292,995,875

(Amount in `)

As at

March 31, 2011

As atMarch 31, 2010

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Schedule I: Income from Operations

Schedule J: Other Income

Schedule K: Direct Cost

Schedule L: Employee Cost

Income from Operation


Income from Financing Activities 4,455,810,272 2,010,062,414

Dividend income 48,348,882 118,462,252

Total

Miscelleneous income 66,711,287 3,885,473

Interest on Fixed Deposits (Gross) 24,772,230 17,589,733

Processing fee 347,532,538 56,228,528

Administration fee & other charges from customer 58,144,598 36,709,122

Profit / (loss) on sale of fixed assets - (10,747)

Total 497,160,653 114,402,109

Marketing and commission expenses 195,388,897 57,729,317



Provision for Standard Loans-Teasers 2,224,858 -

Investment and financing related cost 170,857,324 483,708,587

Total 450,640,958 549,631,506


Contribution to provident Fund and other funds 11,329,111 6,852,560

Gratuity 1,069,761 1,398,065

Staff welfare expenses 19,980,083 9,809,669

Leave encashment 985,546 (1,091,042)

Total 689,897,774 451,222,654

4,697,754,804 2,225,231,620

(Amount in `)

As atMarch 31, 2011

As atMarch 31, 2010


Schedule M: Administrative And Other Expenses

Advertisement expenses 65,955,379 60,427,237

Bad Debts - 1,608,928

Bank charges 5,351,960 744,003

Communication expenses 30,322,001 26,186,317

Electricity expenses 28,686,149 15,924,561

Legal and professional charges 71,258,299 47,432,205

Miscellaneous expenses 7,167,574 6,874,078

Office expenses 37,532,081 15,387,425

Postage and courier 13,547,082 7,778,227

Premises expenses 155,124,478 73,526,963

Printing and stationery 22,112,881 7,679,343

Repairs and maintenance

Computers 499,136 217,890

Others 12,256,597 5,828,809

Remuneration to auditors

Audit Fees 395,000 397,932

Certification work and other matters 73,000 15,000

Out of pocket expenses 21,987 -

Software charges 16,255,952 3,424,072

Travelling and conveyance 37,722,169 19,542,885

Total 504,281,725 292,995,875

(Amount in `)

As at

March 31, 2011

As atMarch 31, 2010

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SCHEDULE N

Significant Accounting Policies and Significant Notes to the Consolidated Statement of Balance

Sheet as at March 31, 2011 and Profit and Loss Account for the year ended March 31, 2011.

1. Basis of Consolidation:






a. Basis of Preparation:

The individual Balance Sheet and Profit and Loss Account of India Infoline Investment Services Limited ('the Company')

and its subsidiaries ('companies and/ or subsidiaries'), collectively referred to as 'Group', have been consolidated as per

principles of consolidation enunciated in Accounting Standard (AS) 21- 'Consolidated Financial Statements' issued by

the Council of The Institute of Chartered Accountants of India.

b. Principles of Preparation:

The financial statements of the group companies of India Infoline Investment Services Limited are prepared according to

uniform accounting policies, in accordance with accounting principles generally accepted in India. The effects of all

inter-group transactions and balances have been eliminated on consolidation.

c. List of Subsidiaries Consolidated:

The individual Balance Sheet as at March 31, 2010 and Profit and Loss Account for the year ended March 31, 2010 of

following subsidiaries are included in consolidation.

India Infoline Distribution Company Limited (IIDCL)

India Infoline Housing Finance Limited (IIHFL)

Moneyline Credit Limited.

The financial statements have been prepared under historical cost convention on an accrual basis.



financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the

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



by the Reserve Bank of India / NHB as applicable to it, and









Act, 1956, which-ever is higher. In the case of transfer of used fixed assets from group companies, depreciation is charged



which assets are sold.

Individual assets / group of similar assets costing upto Rs.5,000/- has been depreciated in full, in the year of purchase.


Buildings 20 years

Computers 3 years



Vehicles 5 years

Software 3 years



classified as current investments. Current investments are stated at lower of cost or market/ fair value. Long-term


For investment in Mutual funds, the Net Assets Value (NAV) declared by the Mutual Funds is considered as the fair value.





accounted for on an accrual basis and recognised in the Profit & Loss account.

The Company has provided compensated absences on the basis of actuarial valuation.



adjustments for unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is calculated

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




outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow

of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable

that the outflow of resources would be required to settle the obligation, the provision is reversed.





enacted/ substantially enacted tax rates as at the balance sheet date. Deferred tax assets are recognized subject to the


6. Investments:

7. Stock in Trade:



10. Taxes on Income:

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SCHEDULE N

Significant Accounting Policies and Significant Notes to the Consolidated Statement of Balance

Sheet as at March 31, 2011 and Profit and Loss Account for the year ended March 31, 2011.

1. Basis of Consolidation:






a. Basis of Preparation:

The individual Balance Sheet and Profit and Loss Account of India Infoline Investment Services Limited ('the Company')

and its subsidiaries ('companies and/ or subsidiaries'), collectively referred to as 'Group', have been consolidated as per

principles of consolidation enunciated in Accounting Standard (AS) 21- 'Consolidated Financial Statements' issued by

the Council of The Institute of Chartered Accountants of India.

b. Principles of Preparation:

The financial statements of the group companies of India Infoline Investment Services Limited are prepared according to

uniform accounting policies, in accordance with accounting principles generally accepted in India. The effects of all

inter-group transactions and balances have been eliminated on consolidation.

c. List of Subsidiaries Consolidated:

The individual Balance Sheet as at March 31, 2010 and Profit and Loss Account for the year ended March 31, 2010 of

following subsidiaries are included in consolidation.

India Infoline Distribution Company Limited (IIDCL)

India Infoline Housing Finance Limited (IIHFL)

Moneyline Credit Limited.

The financial statements have been prepared under historical cost convention on an accrual basis.



financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the

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



by the Reserve Bank of India / NHB as applicable to it, and









Act, 1956, which-ever is higher. In the case of transfer of used fixed assets from group companies, depreciation is charged



which assets are sold.

Individual assets / group of similar assets costing upto Rs.5,000/- has been depreciated in full, in the year of purchase.


Buildings 20 years

Computers 3 years



Vehicles 5 years

Software 3 years



classified as current investments. Current investments are stated at lower of cost or market/ fair value. Long-term


For investment in Mutual funds, the Net Assets Value (NAV) declared by the Mutual Funds is considered as the fair value.





accounted for on an accrual basis and recognised in the Profit & Loss account.

The Company has provided compensated absences on the basis of actuarial valuation.



adjustments for unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is calculated

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




outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow

of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable

that the outflow of resources would be required to settle the obligation, the provision is reversed.





enacted/ substantially enacted tax rates as at the balance sheet date. Deferred tax assets are recognized subject to the


6. Investments:

7. Stock in Trade:



10. Taxes on Income:

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IIFL Realty Limited







IIFL Inc.







IIFL Energy Limited






R Venkataraman


9. Significant Transaction with Related Parties (Figures in bracket represent previous year's figure)

Nature of Holding Fellow Group Other Total

Transaction Company Subsidiaries Companies related parties

Interest Income on ICD 160,697,900 223,185,232 19,824,583 - 403,707,716

- (36,555,915) - - (36,555,915)

Interest Expenses on ICD 599,761,055 - - - 599,761,055

(18,627,693) (60,681,783) - - (79,309,476)


12. Preliminary Expenses:



Preliminary Expenses are written off in the financial year in which it is incurred.

B. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

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






2. At the balance sheet date, there were outstanding commitments (net of advances) of capital expenditure of ` 93,176,908

(Previous Year ̀ 116,500) out of the total contractual obligation entered during the year.

3. During the year, the Company has raised Term Loans aggregating ̀ 9,350,000,000 from various banks. The same is secured

against the receivables of the Company. The Company has also raised ̀ 2,783,200,000 by issue of secured Non Convertible

Debentures. The said debentures are secured against immovable property, stocks and book debts of the Company. The same

are also guaranteed by India Infoline Limited, the holding company. These debentures are redeemable at par over a period of

12 months to 38 months from the date of allotment depending upon the terms of issue.

4. DWS Short Maturity Fund- Institutional Growth Plan Units are subject to pledge/ lien of Deutche Bank for overdraft facility

provided to IIFL Realty Limited.


are in force as on March 31, 2011. This is after augmentation of entitlement of bonus in ratio of 9:1 made during the financial

year.


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





within India.




Deferred Tax Asset

Particulars 2010-2011 2009-2010

Depreciation 3,142,078 7,188,655

On Gratuity/ Leave Encashment (504,157) 1,037,220

Provision for doubtful debts 8,931,646 8,449,948

Provision for Standard Assets 26,894,535 -

Preliminary Expenses - 17,199

Other 5,921,703 5,359,853

Total 44,385,805 22,052,875

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IIFL Realty Limited







IIFL Inc.







IIFL Energy Limited






R Venkataraman


9. Significant Transaction with Related Parties (Figures in bracket represent previous year's figure)

Nature of Holding Fellow Group Other Total

Transaction Company Subsidiaries Companies related parties

Interest Income on ICD 160,697,900 223,185,232 19,824,583 - 403,707,716

- (36,555,915) - - (36,555,915)

Interest Expenses on ICD 599,761,055 - - - 599,761,055

(18,627,693) (60,681,783) - - (79,309,476)


12. Preliminary Expenses:



Preliminary Expenses are written off in the financial year in which it is incurred.

B. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS:

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






2. At the balance sheet date, there were outstanding commitments (net of advances) of capital expenditure of ` 93,176,908

(Previous Year ̀ 116,500) out of the total contractual obligation entered during the year.

3. During the year, the Company has raised Term Loans aggregating ̀ 9,350,000,000 from various banks. The same is secured

against the receivables of the Company. The Company has also raised ̀ 2,783,200,000 by issue of secured Non Convertible

Debentures. The said debentures are secured against immovable property, stocks and book debts of the Company. The same

are also guaranteed by India Infoline Limited, the holding company. These debentures are redeemable at par over a period of

12 months to 38 months from the date of allotment depending upon the terms of issue.

4. DWS Short Maturity Fund- Institutional Growth Plan Units are subject to pledge/ lien of Deutche Bank for overdraft facility

provided to IIFL Realty Limited.


are in force as on March 31, 2011. This is after augmentation of entitlement of bonus in ratio of 9:1 made during the financial

year.


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





within India.




Deferred Tax Asset

Particulars 2010-2011 2009-2010

Depreciation 3,142,078 7,188,655

On Gratuity/ Leave Encashment (504,157) 1,037,220

Provision for doubtful debts 8,931,646 8,449,948

Provision for Standard Assets 26,894,535 -

Preliminary Expenses - 17,199

Other 5,921,703 5,359,853

Total 44,385,805 22,052,875

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

14. Basic and Diluted Earnings per share [“EPS”] computed in accordance with Accounting Standard (AS) 20 'Earnings per share”

PARTICULARS 2009-2010 2009-2010

Basic




Diluted

Profit after tax as per Profit and Loss account C 922,500,349 537,924,629



Employees Stock Options.

Weighted Number of Shares Outstanding 242,979,030 245,745,194

EPS (Rupees) 3.80 2.19

15. Details of Current Investments:

Quoted, Non - Trade, Current (valued At cost or market value whichever is lower)










C E S C Limited 10 - - 27,403 10,487,128




Gujarat Nre Coke Limited 10 - - 7,488 654,826



Housing Development And Infrastructure Limited 10 - - 15,154 4,339,348







Significant Transaction with Related Parties (Contd.)

Dividend Paid 91,000,000 26,419,350 - - 117,419,350

- - - - -

Brokerage 1,987,407 - - - 1,987,407

(276,588) (276,588)

Hire Charges Income - - - - -

- (3,600,000) - - (3,600,000)

Sale of Fixed Assets (Net Block) - - - - -

- (6,388,256) - (6,388,256)

Investments - - - 190,000,000 190,000,000

- - - (195,000,000) (195,000,000)

ICD repaid/issued - 1,409,686,035 220,000,000 - 1,629,686,035

(5,363,702,777) (1,808,361,668) (7,172,064,445)

ICD taken/received - 2,429,827,534 220,000,000 - 2,649,827,534

- (3,557,499,786) (51,514,394) - (3,609,014,180)

Advances returned/ 167,717,013,891 7,433,163 60,275,347 - 16,778,472,2401

reimbursement of expenses (35,982,603,865) (76,608,887) (45,499,014) (36,104,711,766)

Advances taken/ 167,717,013,891 7,433,163 60,275,347 - 167,784,722,401

allocation of expenses (35,982,603,864) (38,387,156) (45,499,014) (36,066,490,034)

Nature of Transaction Holding Fellow Group Other related Total

Company Subsidiaries Companies parties

Sundry receivables 1,702,300,003 220,000,000 1,922,300,003

(2,722,441,502) (220,048,822) (2,942,490,324)

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

subsidiaries, all incorporated within India, as detailed below:

Subsidiary Proportion of ownership interest

31.03.2011 31.03.2010

India Infoline Distribution Company Limited 100% 100%

India Infoline Housing Finance Limited 100% 100%

Moneyline Credit Limited 100% 100%


charged to Profit and Loss account .The agreements are executed for a period ranging 1 to 5 years with a renewable clause.


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

lease. The minimum Lease rentals outstanding as at March 31, 2011, are as under:


Up to one year 2,734,940 3,142,825



Total 3,400,940 3,142,825

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

14. Basic and Diluted Earnings per share [“EPS”] computed in accordance with Accounting Standard (AS) 20 'Earnings per share”

PARTICULARS 2009-2010 2009-2010

Basic




Diluted

Profit after tax as per Profit and Loss account C 922,500,349 537,924,629



Employees Stock Options.

Weighted Number of Shares Outstanding 242,979,030 245,745,194

EPS (Rupees) 3.80 2.19

15. Details of Current Investments:

Quoted, Non - Trade, Current (valued At cost or market value whichever is lower)










C E S C Limited 10 - - 27,403 10,487,128




Gujarat Nre Coke Limited 10 - - 7,488 654,826



Housing Development And Infrastructure Limited 10 - - 15,154 4,339,348







Significant Transaction with Related Parties (Contd.)

Dividend Paid 91,000,000 26,419,350 - - 117,419,350

- - - - -

Brokerage 1,987,407 - - - 1,987,407

(276,588) (276,588)

Hire Charges Income - - - - -

- (3,600,000) - - (3,600,000)

Sale of Fixed Assets (Net Block) - - - - -

- (6,388,256) - (6,388,256)

Investments - - - 190,000,000 190,000,000

- - - (195,000,000) (195,000,000)

ICD repaid/issued - 1,409,686,035 220,000,000 - 1,629,686,035

(5,363,702,777) (1,808,361,668) (7,172,064,445)

ICD taken/received - 2,429,827,534 220,000,000 - 2,649,827,534

- (3,557,499,786) (51,514,394) - (3,609,014,180)

Advances returned/ 167,717,013,891 7,433,163 60,275,347 - 16,778,472,2401

reimbursement of expenses (35,982,603,865) (76,608,887) (45,499,014) (36,104,711,766)

Advances taken/ 167,717,013,891 7,433,163 60,275,347 - 167,784,722,401

allocation of expenses (35,982,603,864) (38,387,156) (45,499,014) (36,066,490,034)

Nature of Transaction Holding Fellow Group Other related Total

Company Subsidiaries Companies parties

Sundry receivables 1,702,300,003 220,000,000 1,922,300,003

(2,722,441,502) (220,048,822) (2,942,490,324)

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

subsidiaries, all incorporated within India, as detailed below:

Subsidiary Proportion of ownership interest

31.03.2011 31.03.2010

India Infoline Distribution Company Limited 100% 100%

India Infoline Housing Finance Limited 100% 100%

Moneyline Credit Limited 100% 100%


charged to Profit and Loss account .The agreements are executed for a period ranging 1 to 5 years with a renewable clause.


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

lease. The minimum Lease rentals outstanding as at March 31, 2011, are as under:


Up to one year 2,734,940 3,142,825



Total 3,400,940 3,142,825

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Lupin Limited 10 - - 4,068 5,848,486











Voltas Limited 1 - - 42,188 6,430,556

Yes Bank Limited 10 - - 24,066 5,352,278


Total - 234,607,988

16. Figures pertaining to subsidiary companies have been reclassified wherever necessary to bring them in line with parent

company's financial statements.

17. Previous year's figures are regrouped and rearranged wherever necessary.





By the hand of




Place : Mumbai



CASH FLOWS FROM INVESTING ACTIVITIES

Net profit before taxation, and extraordinary item 1,340,445,039 766,005,316

Adjustments for:

Depreciation 16,976,905 11,561,541



Provisions for Gratuity 1,069,761 1,398,065

Provisions for Leave Encashment 985,546 (1,091,042)


(Increase) / Decrease in Sundry Debtors 4,439,302 (2,859,782)


(Purchase)/Sale of Investments/Stock on Trade (471,084,766) 2,246,249,303

Increase / (Decrease) in Group Company balances 1,020,190,326 (1,806,202,995)

Increase / (Decrease) in Current Liabilities 1,973,561,153 (548,918,498)

Increase / (Decrease) in Provisions (5,522,619) (3,698,888)


Tax (Paid) / Refund (425,025,431) (259,129,584)



Sale of fixed assets - 6,160,304

Net cash from investing activities (161,459,021) 6,160,304

As at


As atMarch 31, 2010

(Amount in `)

Consolidated Cash Flow Statementfor the year ended March 31, 2011

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Lupin Limited 10 - - 4,068 5,848,486











Voltas Limited 1 - - 42,188 6,430,556

Yes Bank Limited 10 - - 24,066 5,352,278


Total - 234,607,988

16. Figures pertaining to subsidiary companies have been reclassified wherever necessary to bring them in line with parent

company's financial statements.

17. Previous year's figures are regrouped and rearranged wherever necessary.





By the hand of




Place : Mumbai



CASH FLOWS FROM INVESTING ACTIVITIES

Net profit before taxation, and extraordinary item 1,340,445,039 766,005,316

Adjustments for:

Depreciation 16,976,905 11,561,541



Provisions for Gratuity 1,069,761 1,398,065

Provisions for Leave Encashment 985,546 (1,091,042)


(Increase) / Decrease in Sundry Debtors 4,439,302 (2,859,782)


(Purchase)/Sale of Investments/Stock on Trade (471,084,766) 2,246,249,303

Increase / (Decrease) in Group Company balances 1,020,190,326 (1,806,202,995)

Increase / (Decrease) in Current Liabilities 1,973,561,153 (548,918,498)

Increase / (Decrease) in Provisions (5,522,619) (3,698,888)


Tax (Paid) / Refund (425,025,431) (259,129,584)



Sale of fixed assets - 6,160,304

Net cash from investing activities (161,459,021) 6,160,304

As at


As atMarch 31, 2010

(Amount in `)

Consolidated Cash Flow Statementfor the year ended March 31, 2011

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Consolidated



C (Contd.)onsolidated Cash Flow Statementfor the year ended March 31, 2011

CASH FLOWS FROM FINANCING ACTIVITIES

Share issue expenses (16,500,000) (1,750,000)


Proceeds from borrowings (net) 12,730,985,519 7,942,576,316


Net increase in cash and cash equivalents (924,726,308) 1,253,453,873



2,060,932,935 807,479,062


Cash on hand and balances with banks 1,136,206,627 2,060,932,935

Net increase/ Decrease in cash and cash equivalents (924,726,308) 1,253,453,873

As at


As atMarch 31, 2010

(Amount in `)



2. Previous year's figure are re-grouped \re-arrange wherever necessary





By the hand of




Place : Mumbai


India Infoline Investment Services LimitedAnnual Report 2010-11 67

CORPORATE INFORMATION

BOARD OF DIRECTORS

CORE MANAGEMENT TEAM

COMPANY SECRETARY

A K Purwar

Non Executive Chairman

Nirmal Jain

Director

R. Venkataraman

Director

Nilesh Vikamsey

Independent Director

M N Singh

Independent Director

Kapil Krishan

Whole Time Director

Pratima Ram

Whole Time Director & Chief Executive

Officer

Mukesh Kumar Singh

Head – Gold Loan Business

Sachin Grover

Head – Mortgage Business

Abhishek Khandelwal

Head - Structured Lending Group

Priya Kashyap

Head – Credit Policy

S Venu

Head – Operation

Binoy K Parikh

COMMITTEE OF BOARD

AUDITORS

INTERNAL AUDITORS

LAWYERS

REGISTRAR AND SHARE TRANSFER

AGENT

Audit Committee

Nilesh Vikamsey - Chairman

M N Singh

Kapil Krishan

Pratima Ram

Nomination Committee

M N Singh

Nilesh Vikamsey

Nirmal Jain

R Venkataraman

Risk Management Committee

A K Purwar

Nilesh Vikamsey

Nirmal Jain

L P Aggarwal

Assets Liability Management

Committee

A K Purwar

Nirmal Jain

Pratima Ram

L P Aggarwal

Kapil Krishan

M/s Sharp & Tannan Associates


M/s Ernst & Young

Khaitan & Co.

Link Intime India Pvt. Ltd

C-13, Pannalal Silk Mills compound, L.B.S.

Marg, Bhandup (West), Mumbai – 400 078

REGISTERED OFFICE

CORPORATE OFFICE

BANKERS

IIFL House, Sun Infotech Park

Road no. 16, Plot no. B-23, MIDC, Thane

Industrial Estate, Wagle Estate, Thane –

400 604

IIFL Centre, Kamala City, Lower Parel

(West), Mumbai – 400 013

Allahabad Bank

Axis Bank Ltd

Bank of Baroda

Bank of India

Citibank N.A.

HDFC Bank Ltd

Development Credit Bank Ltd

The Federal Bank Ltd

The Hongkong and Shanghai BankingCorporation Ltd

ICICI Bank Ltd

IDBI Bank Ltd

Kotak Mahindra Bank Ltd

Punjab National Bank Ltd

Standard Chartered Bank

State Bank of India

State Bank of Travancore

UCO Bank

Union Bank of India

Yes Bank Ltd

Cautionary Statement

This document contains forward-looking statement and information. Such statements are based on our current expectations and certain

assumptions, and are, therefore, subject to certain risk and uncertainties. Should one or more of these risks or uncertainties materialise, or

should underlying assumptions prove incorrect, actual results may vary. IIISL does not intend to assume any obligation or update or revise

these forward-looking statements in light of developments, which differs from those anticipated.

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