Financial PerformanceFinancial Performance

Delhi Financial Corporation

An Overview of Financial Performance

1

2

3

4

5

6

EQUITY

DEBT

RESERVES

NET WORTH

PROFIT BEFORE TAX & PROVISION

PROFIT AFTER TAX & PROVISION

2570.18

7247.03

2964.73

5534.91

503.45

229.37

2576.18 2582.17

96 43.38 7909.48

3343.01 4384.69

5919.19 6966.87

789.84 780.59

603.81 999.54

1.62:1 1.14:1

10.20% 15.37%

36.51% 46.8%

DEBT EQUITY RATIO (2/4)

1.37:1

RETURN ON EQUITY RATIO (6/4 )

4.14%

CAPITAL ADEQUACY RATIO 39.14%

2003-2004 2004-2005

KEY FINANCIAL INDICATOR

2006

2

503.45

789.84 780.59

229.37

603.81

999.54

0

200

400

600

800

1000

1200

2003 - 04 2004 - 05 2005 - 06

Years

Rs.

In L

acs

Profit Before Tax & Provision Profit After Tax & Provision

ANALYSIS OF PROFITS Bar Chart

3

THE LAST THREE YEARS KEY FINANCIAL INDICATORS REVEAL SIGNIFICANT IMPROVEMENTS. THE LAST THREE YEARS KEY FINANCIAL INDICATORS REVEAL SIGNIFICANT IMPROVEMENTS.

THE AVERAGE COST OF FUND HAS COME DOWN FROM 12% IN 2003-04 TO 8.7% IN 2005-06.THE AVERAGE COST OF FUND HAS COME DOWN FROM 12% IN 2003-04 TO 8.7% IN 2005-06.

THE LENDING RATES HAVE BEEN CORRESPONDINGLY REDUCED FROM 15%+4% P.A. TO 10.5%THE LENDING RATES HAVE BEEN CORRESPONDINGLY REDUCED FROM 15%+4% P.A. TO 10.5%+2.5% P.A. IN F.Y.2005-06+2.5% P.A. IN F.Y.2005-06

RESERVES HAVE INCREASED BY 33%.RESERVES HAVE INCREASED BY 33%.

RETURN ON EQUITY RATIO HAS INCREASED THREEFOLD.RETURN ON EQUITY RATIO HAS INCREASED THREEFOLD.

CAPITAL ADEQUACY RATIO IS WELL ABOVE THE RBI NORMS OF 9%.CAPITAL ADEQUACY RATIO IS WELL ABOVE THE RBI NORMS OF 9%.

DEBT EQUITY RATIO HAS IMPROVED INDICATING LESSER DEPENDENCE ON BORROWED FUNDS.DEBT EQUITY RATIO HAS IMPROVED INDICATING LESSER DEPENDENCE ON BORROWED FUNDS.

THE POSITION OF PROFIT AFTER TAX AND PROVISIONING HAS SHOWN REMARKABLE THE POSITION OF PROFIT AFTER TAX AND PROVISIONING HAS SHOWN REMARKABLE IMPROVEMENT FROM Rs.2.29 CRORES IN 2003-04 TO Rs.999.54 CRORES IN 2005-06. THIS PROFIT IMPROVEMENT FROM Rs.2.29 CRORES IN 2003-04 TO Rs.999.54 CRORES IN 2005-06. THIS PROFIT HAS BEEN OBTAINED AFTER MAKING PROVISIONING FOR RETIREMENT BENEFITS VIZ. PENSION, HAS BEEN OBTAINED AFTER MAKING PROVISIONING FOR RETIREMENT BENEFITS VIZ. PENSION, GRATUITY AND LEAVE ENCASHMENT WHICH HAVE BEEN SUBJECT MATTER OF CAG AUDIT IN THE GRATUITY AND LEAVE ENCASHMENT WHICH HAVE BEEN SUBJECT MATTER OF CAG AUDIT IN THE PAST. VRS HAS ALSO BEEN GRANTED TO 14 PERSONS DURING THE YEAR.PAST. VRS HAS ALSO BEEN GRANTED TO 14 PERSONS DURING THE YEAR.

IN THREE YEARS, THEREFORE, THE FINANCIAL HEALTH OF THE CORPORATION HAS BEEN IN THREE YEARS, THEREFORE, THE FINANCIAL HEALTH OF THE CORPORATION HAS BEEN BROUGHT ON TO A SOUND FOOTING. BROUGHT ON TO A SOUND FOOTING.

SUMMARY OF FINANCIAL RESULTS

4

503.45

789.84 780.59

0

100

200

300

400

500

600

700

800

900

2003 - 04 2004 - 05 2005 - 06

Years

Rs

. In

La

cs

NET PROFITS*

*After Accounting for the VRS Expenditure

Bar Chart

#

# Before Tax and Provisioning

5

7747

.01

2580

.15

8336

.88

3637

.67

6029

.85

2092

.68

6602

.85

2338

.25

5998

.04 72

50

5935 64

36.4

7

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2002-03 2003-04 2004-05 2005 - 06FINANCIAL YEAR

Rs.

In

Lac

s

SANCTION DISBURSEMENT RECOVERY

GROWTH OPERATIONS

Bar Chart

6

BUSINESS TRENDSBUSINESS TRENDS 8336.88

2580.153637.67

6602.85

2092.682338.25

503.45780.59789.84

6436.47

5935

7250

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2003-04 2004-05 2005-06

FINANCIAL YEAR

Rs.

In

Lac

s

SANCTION DISBURSEMENT NET PROFITS RECOVERY

7

In Graph

15

41

3

14

30

7

12

22

8.2

9

72

50

59

35

64

36

.47

02

00

04

00

06

00

08

00

01

00

00

12

00

01

40

00

16

00

01

80

00

20

00

0

2004 2005 2006YEAR

Rs

in l

acs

COLLECTABLE NET RECOVERY

COLLECTABLE : NET RECOVERY

41% 41% 52%

*

* Includes interest subsidy of Rs.1.40 crores received from GNCT, Delhi.(Tpt. Deptt.)

Bar Chart

#

#Includes Rs.10 crores pending receipt paid by DSIDC in Q4

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Loans and AdvancesLoans and Advances

20042004 20052005 20062006

Loans & Advances Loans & Advances 14691.2214691.22 16958.1316958.13 14918.9714918.97

ProvisioningProvisioning 1877.931877.93 1709.381709.38 1325.64 1325.64

Standard AssetsStandard Assets 7892.557892.55 10754.5910754.59 9173.369173.36

NPAsNPAs 67996799 6203.286203.28 5745.605745.60

Rs. In Lacs

FINANCIAL PROFILEFINANCIAL PROFILE

9

14691

7893

6799

1877.93

503

16957.87

10754.46

6203.28

1709.38789.84

14918.97

9173.36

5745.6

1325.64780.59

0

2000

4000

6000

8000

10000

12000

14000

16000

18000R

s. in

lacs

Loans & Advances Standard Assets NPAs Provisioning Profit

31.03.2004 31.03.2005 31.03.2006

Analysis of Loans & Advances

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Bar Chart

LOANS AND ADVANCESLOANS AND ADVANCES

12226.96

9173.36

10755

7892.55

3289.823343

4252.29

2868.732167.6423221895.371568.82

288.13537651.01622.420

2000

4000

6000

8000

10000

12000

14000

2003 2004 2005 2006

year

Rs.

in la

cs

Standard Assets Sub-StandardDoubtful Assets Loss Assets

14691.22

6808.68

16958

6203

14918.97

5745.6

0

5000

10000

15000

20000

Rs.

in la

cs

OUTSTANDING BALANCE TOTAL NPA

2004 2005 2006

STATUS OF NPAs

46.35% 36.58%38.51%

Bar Chart

13

IN THE YEAR 2004-05, DSIDC ISSUED ALLOTMENT LETTERS FOR PLOTS IN THE YEAR 2004-05, DSIDC ISSUED ALLOTMENT LETTERS FOR PLOTS IN BAWANA OUT OF WHICH DFC COULD OBTAIN GOOD BUSINESS AFTER IN BAWANA OUT OF WHICH DFC COULD OBTAIN GOOD BUSINESS AFTER THE ALL TIME LOW OF 2003-04. THE ALL TIME LOW OF 2003-04.

DESPITE ABSENCE OF LAND ALLOTMENT BY DSIDC VIGOROUS EFFORTS DESPITE ABSENCE OF LAND ALLOTMENT BY DSIDC VIGOROUS EFFORTS WERE MADE TO SECURE BUSINESS OF CONSTRUCTION LOANS IN WERE MADE TO SECURE BUSINESS OF CONSTRUCTION LOANS IN BAWANA AS THE ENTREPRENEURS STARTED MOVEMENT TOWARDS BAWANA AS THE ENTREPRENEURS STARTED MOVEMENT TOWARDS CONSTRUCTION IN LAST PART OF Q3 AND Q4.CONSTRUCTION IN LAST PART OF Q3 AND Q4.

IN 2005-06, DSIDC HELD DRAW OF LOTS FOR BAWANA-II BUT ALLOTMENT IN 2005-06, DSIDC HELD DRAW OF LOTS FOR BAWANA-II BUT ALLOTMENT LETTERS HAVE ISSUED ONLY IN MARCH 2006. HENCE BUSINESS WILL LETTERS HAVE ISSUED ONLY IN MARCH 2006. HENCE BUSINESS WILL AGAIN PEAK IN 2006-07 TO A LIKELY FIGURE OF Rs.100 CRORES. AGAIN PEAK IN 2006-07 TO A LIKELY FIGURE OF Rs.100 CRORES.

ACCORDINGLY IN Q4, RELEASE HAS BEEN MADE IN 395 CASES OF ACCORDINGLY IN Q4, RELEASE HAS BEEN MADE IN 395 CASES OF CONSTRUCTION LOAN IN BAWANACONSTRUCTION LOAN IN BAWANA

AMOUNTING TO RS. 2179.31 LACS AND ONLY 50 CASES INVOLVING RS. AMOUNTING TO RS. 2179.31 LACS AND ONLY 50 CASES INVOLVING RS. 536.37 LACS ARE PENDING FOR FIRST DISBURSEMENT. 536.37 LACS ARE PENDING FOR FIRST DISBURSEMENT.

BUSINESS PROSPECTS

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Sector Wise Disbursement 2005 -06

2175.46

130.26

20.40

Transport Industrial Relocation

5.60%

0.87%

93.53%

Scheme Wise Sanction 2005 - 06

4.95

3470.53

20.4

141.79

General Relocation Shop SRTO

95.40%

0.56%

0.14%

3.90%