INSIDE THIS REPORT - IIFL · Let’s Explore the Loan Zone with IIISL... ANNUAL REPORT 2010-11 ......
Transcript of 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.
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
AN
OV
ER
VIE
W
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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1 2
Gross NPANet NPA
PERFORMANCE HIGHLIGHTS (Consolidated) 2010-11
AN
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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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siness D
iscussio
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men
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orts
1 2
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.
India Infoline Investment Services LimitedAnnual Report 2010-11
Bu
siness D
iscussio
nFin
an
cial S
tate
men
tsSta
tuto
ry R
ep
orts
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
AN
OV
ER
VIE
W
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.
India Infoline Investment Services LimitedAnnual Report 2010-11
Bu
siness D
iscussio
nFin
an
cial S
tate
men
tsSta
tuto
ry R
ep
orts
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
India Infoline Investment Services LimitedAnnual Report 2010-11
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
`
Finan
cial S
tate
men
tsA
N O
VER
VIE
WB
usin
ess D
iscussio
nSta
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ep
orts
CORPORATE IDENTITY
India Infoline Investment Services LimitedAnnual Report 2010-11
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
`
Finan
cial S
tate
men
tsA
N O
VER
VIE
WB
usin
ess D
iscussio
nSta
tuto
ry R
ep
orts
SPREADING THE LIGHT OF FINANCIAL LITERACY
India Infoline Investment Services LimitedAnnual Report 2010-11
SPREADING THE LIGHT OF FINANCIAL LITERACY
India Infoline Investment Services LimitedAnnual Report 2010-11
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
SPREADING THE LIGHT OF FINANCIAL LITERACY
India Infoline Investment Services LimitedAnnual Report 2010-11
SPREADING THE LIGHT OF FINANCIAL LITERACY
India Infoline Investment Services LimitedAnnual Report 2010-11
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
AN
OV
ER
VIE
WB
usin
ess D
iscussio
nFin
an
cial S
tate
men
tsSta
tuto
ry R
ep
orts
FLAME - An IIFL Group Initiative
BUSINESS DISCUSSION
BU
SIN
ESS D
ISC
USSIO
N
India Infoline Investment Services LimitedAnnual Report 2010-11
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
Thai
lan
d
Ch
ina
Kore
a
Mal
aysi
a
Sin
gapore
Taiw
an
Hon
gkon
g
Ger
man
y
UK
USA
Den
mar
k
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
An
Overv
iew
Finan
cial S
tate
men
tsSta
tuto
ry R
ep
orts
BUSINESS DISCUSSION
BU
SIN
ESS D
ISC
USSIO
N
India Infoline Investment Services LimitedAnnual Report 2010-11
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
Thai
lan
d
Ch
ina
Kore
a
Mal
aysi
a
Sin
gapore
Taiw
an
Hon
gkon
g
Ger
man
y
UK
USA
Den
mar
k
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
An
Overv
iew
Finan
cial S
tate
men
tsSta
tuto
ry R
ep
orts
BUSINESS DISCUSSION
BU
SIN
ESS D
ISC
USSIO
N
India Infoline Investment Services LimitedAnnual Report 2010-11
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
An
Overv
iew
Finan
cial S
tate
men
tsSta
tuto
ry R
ep
orts
BUSINESS DISCUSSION
BU
SIN
ESS D
ISC
USSIO
N
India Infoline Investment Services LimitedAnnual Report 2010-11
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
An
Overv
iew
Finan
cial S
tate
men
tsSta
tuto
ry R
ep
orts
BOARD OF DIRECTORS
India Infoline Investment Services LimitedAnnual Report 2010-11
STA
TU
TO
RY
REP
OR
TS
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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BOARD OF DIRECTORS
India Infoline Investment Services LimitedAnnual Report 2010-11
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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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India Infoline Investment Services LimitedAnnual Report 2010-11
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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India Infoline Investment Services LimitedAnnual Report 2010-11
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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India Infoline Investment Services LimitedAnnual Report 2010-11
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 LimitedAnnual Report 2010-11
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
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
FINANCIAL STATEMENTS
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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
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 in
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
FINANCIAL STATEMENTS
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Standalone Financial Statements of
India Infoline Investment Services Limited
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.
16. In our opinion, and according to the information and
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
register maintained under Section 301 of 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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India Infoline Investment Services Limited
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.
16. In our opinion, and according to the information and
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
register maintained under Section 301 of 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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India Infoline Investment Services LimitedAnnual Report 2010-11
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India Infoline Investment Services Limited
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.
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
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explanation given to us, the term loans have been
applied for which they were raised.
17. According to the information and explanations given
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.
18. According to the information and explanations given
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.
19. According to the information and explanations given
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
applicable to the Company.
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.
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
23 24
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Standalone Financial Statements of
India Infoline Investment Services Limited
India Infoline Investment Services LimitedAnnual Report 2010-11
To
India Infoline Investment Services Limited
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.
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
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explanation given to us, the term loans have been applied for
which they were raised.
17. According to the information and explanations given
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.
18. According to the information and explanations given
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.
19. According to the information and explanations given
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
applicable to the Company.
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.
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
23 24
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India Infoline Investment Services LimitedAnnual Report 2010-11
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Standalone Financial Statements of
India Infoline Investment Services Limited
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
Chartered Accountants
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 `)
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
25 26
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India Infoline Investment Services LimitedAnnual Report 2010-11
Sta
tuto
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ep
orts
An
Overv
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Bu
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iscussio
nStandalone Financial Statements of
India Infoline Investment Services Limited
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
Chartered Accountants
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 `)
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
25 26
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Standalone Financial Statements of
India Infoline Investment Services Limited
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
edu
les
form
ing
par
t of
the
Bal
ance
Sh
eet
as a
t M
arch
31,
2011
(Am
ou
nt
in `
)Sch
edu
le D
: Fix
ed A
ssets
Gro
ss B
lock
Dep
reci
ati
on
Net
Blo
ck
Ass
ets
As
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Addit
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s D
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As
at
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at
For th
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ear
Dedu
ctio
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Up
to a
t A
s at
As
at
31
.03.2
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3
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3
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3.2
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1
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.03
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3
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Prem
ises
145,0
00
- -
145,0
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16,3
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7,2
50
-23,5
62
121,4
39
128,6
90
Com
pu
ter
- 9,6
42,6
69
- 9,6
42,6
69
- 1,0
20,8
04
-1,0
20,8
04
8,6
21,8
65
-
Elec
tric
al
676,6
87
20,7
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96
- 21,4
63,4
83
221,8
93
1,1
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82
-1,3
53,0
74
20,1
10,4
08
454,7
94
Equ
ipm
ent
Off
ice
201,7
69
19,2
30,1
57
- 19,4
31,9
26
151,3
32
757,8
40
-909,1
72
18,5
22,7
54
50,4
37
Equ
ipm
ent
Air
415,2
75
2,6
16,6
29
- 3,0
31,9
04
124,8
28
192,0
99
-316,9
27
2,7
14,9
77
290,4
47
Con
dit
ion
s
Furn
itu
re &
1,8
42,0
59
67,4
39,0
60
- 69,2
81,1
19
553,1
34
5,4
01,2
42
-5,9
54,3
76
63,3
26,7
43
1,2
88,9
25
Fixt
ure
TO
TA
L
3,2
80,7
90
119,7
15,3
10
- 1
22
,99
6,1
00
1
,06
7,4
97
8
,51
0,4
16
-
9,5
77
,91
4
11
3,4
18
,18
6
2,2
13
,29
3
Pre
vious
Year
3
,280,7
90
- -
3,2
80
,79
0
43
3,0
93
6
34
,40
5
- 1
,06
7,4
98
2
,21
3,2
92
Cap
ital
Work
37,2
50,4
64
-
in P
rogr
ess
15
0,6
68
,65
0
2,2
13
,29
3
27 28
FINA
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IAL S
TA
TEM
EN
TS
India Infoline Investment Services LimitedAnnual Report 2010-11
Sta
tuto
ry R
ep
orts
An
Overv
iew
Bu
siness D
iscussio
nStandalone Financial Statements of
India Infoline Investment Services Limited
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
edu
les
form
ing
par
t of
the
Bal
ance
Sh
eet
as a
t M
arch
31,
2011
(Am
ou
nt
in `
)Sch
edu
le D
: Fix
ed A
ssets
Gro
ss B
lock
Dep
reci
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Blo
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.03.2
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.03
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3.2
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1
31
.03
.20
11
3
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Prem
ises
145,0
00
- -
145,0
00
16,3
11
7,2
50
-23,5
62
121,4
39
128,6
90
Com
pu
ter
- 9,6
42,6
69
- 9,6
42,6
69
- 1,0
20,8
04
-1,0
20,8
04
8,6
21,8
65
-
Elec
tric
al
676,6
87
20,7
86,7
96
- 21,4
63,4
83
221,8
93
1,1
31,1
82
-1,3
53,0
74
20,1
10,4
08
454,7
94
Equ
ipm
ent
Off
ice
201,7
69
19,2
30,1
57
- 19,4
31,9
26
151,3
32
757,8
40
-909,1
72
18,5
22,7
54
50,4
37
Equ
ipm
ent
Air
415,2
75
2,6
16,6
29
- 3,0
31,9
04
124,8
28
192,0
99
-316,9
27
2,7
14,9
77
290,4
47
Con
dit
ion
s
Furn
itu
re &
1,8
42,0
59
67,4
39,0
60
- 69,2
81,1
19
553,1
34
5,4
01,2
42
-5,9
54,3
76
63,3
26,7
43
1,2
88,9
25
Fixt
ure
TO
TA
L
3,2
80,7
90
119,7
15,3
10
- 1
22
,99
6,1
00
1
,06
7,4
97
8
,51
0,4
16
-
9,5
77
,91
4
11
3,4
18
,18
6
2,2
13
,29
3
Pre
vious
Year
3
,280,7
90
- -
3,2
80
,79
0
43
3,0
93
6
34
,40
5
- 1
,06
7,4
98
2
,21
3,2
92
Cap
ital
Work
37,2
50,4
64
-
in P
rogr
ess
15
0,6
68
,65
0
2,2
13
,29
3
27 28
FINA
NC
IAL S
TA
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EN
TS
India Infoline Investment Services LimitedAnnual Report 2010-11
Sta
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orts
An
Overv
iew
Bu
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iscussio
n
Standalone Financial Statements of
India Infoline Investment Services Limited
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
(Valued at cost or market whichever is less)
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
Schedules forming part of the Balance Sheetas at March 31, 2011
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
(Valued at cost or market whichever is less)
(refer note B-14 of Schedule L ) - 234,607,988
Unquoted, Non-Trade, Current
(Valued at cost or market whichever is less)
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
Schedules forming part of the Balance Sheetas at March 31, 2011
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 Sheetas at March 31, 2011
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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Schedules forming part of the Balance Sheetas at March 31, 2011
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 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.
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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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.
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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- - - (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
Nature of Holding Fellow Group Direct Other related Total
Transaction Company Subsidiaries Companies Subsidiaries parties
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
Liability at the end of the year (2,439,484)
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
Liability Transferred in (3,010,576)
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 -
Liability at the end of the year (2,439,484)
Employers contribution 3,287,694
Benefit Paid 60,577
Net Asset recognised in the balance sheet 787,633
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 `)
Nature of Holding Fellow Group Direct Other related Total
Transaction Company Subsidiaries Companies Subsidiaries parties
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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
Nature of Holding Fellow Group Direct Other related Total
Transaction Company Subsidiaries Companies Subsidiaries parties
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
Liability at the end of the year (2,439,484)
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
Liability Transferred in (3,010,576)
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 -
Liability at the end of the year (2,439,484)
Employers contribution 3,287,694
Benefit Paid 60,577
Net Asset recognised in the balance sheet 787,633
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 `)
Nature of Holding Fellow Group Direct Other related Total
Transaction Company Subsidiaries Companies Subsidiaries parties
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Details of current Investments (Contd.) (Amount in `)
Scrip name Face value As at March 31, 2011 As at March 31, 2010
Numbers Amount Numbers Amount
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 `)
Scrip name Face value As at March 31, 2011 As at March 31, 2010
Numbers Amount Numbers Amount
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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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 -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities -
(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 -
(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 -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities -
(v) Others (please specify) -
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Standalone Financial Statements of
India Infoline Investment Services Limited
Long Term Investments: Amount Outstanding
1 Quoted:
(i) Shares:
(a) Equity
(b) Preference -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities -
(v) Others (please specify) -
2 Unquoted:
(i) Shares:
(a) Equity 2,627.1
(b) Preference 300.0
(ii) Debentures and Bonds -
(iii) Units of mutual funds 1,000.5
(iv) Government Securities -
(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
(a) Related parties -
(b) Other than related parties 85.8
(iii) Assets acquired in satisfaction of debt -
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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Long Term Investments: Amount Outstanding
1 Quoted:
(i) Shares:
(a) Equity
(b) Preference -
(ii) Debentures and Bonds -
(iii) Units of mutual funds -
(iv) Government Securities -
(v) Others (please specify) -
2 Unquoted:
(i) Shares:
(a) Equity 2,627.1
(b) Preference 300.0
(ii) Debentures and Bonds -
(iii) Units of mutual funds 1,000.5
(iv) Government Securities -
(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
(a) Related parties -
(b) Other than related parties 85.8
(iii) Assets acquired in satisfaction of debt -
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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Standalone Financial Statements of
India Infoline Investment Services Limited
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
Provision for Doubtful Loans (537,830) 4,398,890
Provision for Standard Loans 71,501,232 -
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
Net increase in cash and cash equivalents (702,739,449) 741,294,678
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
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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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
Provision for Doubtful Loans (537,830) 4,398,890
Provision for Standard Loans 71,501,232 -
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
Net increase in cash and cash equivalents (702,739,449) 741,294,678
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
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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Standalone Financial Statements of
India Infoline Investment Services Limited
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
APPLICATION OF FUNDS
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
(Amount in ` Thousands)
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
APPLICATION OF FUNDS
Investments 4 4 1 7 7 6 4
Deferred Tax -
Misc. Expenditure -
(Amount in ` Thousands)
Total Expenditure 3 3 2 4 6 3 7
Profit/(Loss) After Tax + 8 2 6 5 7 7
Dividend N I L
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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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India Infoline Investment Services Limited
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
APPLICATION OF FUNDS
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
(Amount in ` Thousands)
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
APPLICATION OF FUNDS
Investments 4 4 1 7 7 6 4
Deferred Tax -
Misc. Expenditure -
(Amount in ` Thousands)
Total Expenditure 3 3 2 4 6 3 7
Profit/(Loss) After Tax + 8 2 6 5 7 7
Dividend N I L
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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
India Infoline Investment Services Limited
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
these financial statements based on our audit.
We 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 test
basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statements 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.
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
Consolidated 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 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
Current Liabilities 2,651,330,583 677,769,429
Provisions 83,164,058 4,134,908
2,734,494,641 681,904,337
Net Current Assets 34,609,117,001 21,638,162,044
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 `)
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
49 50
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India Infoline Investment Services Limited
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
these financial statements based on our audit.
We 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 test
basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statements 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.
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
Consolidated 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 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
Current Liabilities 2,651,330,583 677,769,429
Provisions 83,164,058 4,134,908
2,734,494,641 681,904,337
Net Current Assets 34,609,117,001 21,638,162,044
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 `)
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
49 50
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Consolidated
India Infoline Investment Services Limited
Financial Statements of
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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
Profit before tax 1,340,445,039 766,005,316
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
Significant Accounting policies and notes to Accounts N
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 `)
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 : 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 10,806,624,106 10,808,374,106
Addition during the year - -
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 - -
Addition during the year 83,000,000 -
Closing Balance 83,000,000 -
Special Reserve*
Opening Balance 323,181,186 220,752,367
Addition during the year 185,500,000 102,428,819
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)
Profit and Loss Account 1,793,067,283 1,277,338,109
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
Non Convertible Debentures 272,000,000 5,190,000,000
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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India Infoline Investment Services LimitedAnnual Report 2010-11
Sta
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nConsolidated
India Infoline Investment Services Limited
Financial Statements of
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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
Profit before tax 1,340,445,039 766,005,316
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
Significant Accounting policies and notes to Accounts N
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 `)
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 : 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 10,806,624,106 10,808,374,106
Addition during the year - -
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 - -
Addition during the year 83,000,000 -
Closing Balance 83,000,000 -
Special Reserve*
Opening Balance 323,181,186 220,752,367
Addition during the year 185,500,000 102,428,819
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)
Profit and Loss Account 1,793,067,283 1,277,338,109
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
Non Convertible Debentures 272,000,000 5,190,000,000
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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Consolidated
India Infoline Investment Services Limited
Financial Statements of
Sch
edu
les
Form
ing
Part
of
The
Con
solid
ated
Bal
ance
Sh
eet
as a
t M
arch
31,
2011
(Am
ou
nt
in `
)Sch
edu
le E
: Fix
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ssets
Gro
ss B
lock
(at
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) D
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s D
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to
For th
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31.0
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- 13,4
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47
Fixt
ure
Off
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3,5
67,2
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24,3
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60
- 27,9
47,8
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1,5
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92
- 3,3
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16
24,5
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39
2,0
62,1
71
Equ
ipm
ents
Elec
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al
3,2
83,7
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00
24,0
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20
1,6
46,8
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61,8
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3,1
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91
20,9
65,2
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1,7
50,8
77
Equ
ipm
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Inta
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ble
Ass
ets
Soft
war
e 4,4
63,6
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476,1
54
- 4,9
39,7
62
2,6
03,5
51
1,5
93,5
22
- 4,1
97,0
73
742,6
89
1,8
60,0
57
Non
Com
pet
e Fe
es
14,9
64,1
15
- 14,9
64,1
15
- 14,9
64,1
15
- 14,9
64,1
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- -
-
Gra
nd T
ota
l 49,4
78,4
38 1
24,1
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15
,47
9,7
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1
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,16
4,8
95
3
0,2
40
,99
8
16
,97
6,9
05
15
,28
0,1
72
3
1,9
37
,73
2
12
6,2
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,16
3
19
,23
7,4
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Pre
vio
us
Year
100,9
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36
53,3
04
,13
6
49
,47
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6
4,8
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,16
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,56
1,5
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4
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,70
6
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,24
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98
1
9,2
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,44
0
Schedule forming part of the Consolidated Balance Sheetas at March 31, 2011
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
Reliance Mutual Fund
Reliance Liquidity fund 10 - - 49,983,628 500,066,208
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 Mutual Fund Units 1,000,522,891 700,181,412
Aggregate cost of Quoted investments - 234,607,988
Aggregate cost of Unquoted investments 490,211,200 195,000,000
NAV of Mutual Fund Units 1,030,358,506 700,181,412
Aggregate Market value of Quoted investments - 252,421,955
53 54
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India Infoline Investment Services LimitedAnnual Report 2010-11
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An
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Bu
siness D
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nConsolidated
India Infoline Investment Services Limited
Financial Statements of
Sch
edu
les
Form
ing
Part
of
The
Con
solid
ated
Bal
ance
Sh
eet
as a
t M
arch
31,
2011
(Am
ou
nt
in `
)Sch
edu
le E
: Fix
ed A
ssets
Gro
ss B
lock
(at
Cost
) D
ep
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on
Net
Blo
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Ass
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As
at
Addit
ion
s D
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ctio
ns/
As
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Up
to
For th
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As
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As
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31.0
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A
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stm
ents
3
1.0
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1
31
.03
.20
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year
A
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3
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145,0
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- 23,5
61
121,4
40
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90
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pu
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8,1
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1,5
93,5
22
- 4,1
97,0
73
742,6
89
1,8
60,0
57
Non
Com
pet
e Fe
es
14,9
64,1
15
- 14,9
64,1
15
- 14,9
64,1
15
- 14,9
64,1
15
- -
-
Gra
nd T
ota
l 49,4
78,4
38 1
24,1
66,2
38
15
,47
9,7
81
1
58
,16
4,8
95
3
0,2
40
,99
8
16
,97
6,9
05
15
,28
0,1
72
3
1,9
37
,73
2
12
6,2
27
,16
3
19
,23
7,4
40
Pre
vio
us
Year
100,9
21,5
39
1,8
61,0
36
53,3
04
,13
6
49
,47
8,4
38
6
4,8
68
,16
4
11
,56
1,5
41
4
6,1
88
,70
6
30
,24
0,9
98
1
9,2
37
,44
0
Schedule forming part of the Consolidated Balance Sheetas at March 31, 2011
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
Reliance Mutual Fund
Reliance Liquidity fund 10 - - 49,983,628 500,066,208
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 Mutual Fund Units 1,000,522,891 700,181,412
Aggregate cost of Quoted investments - 234,607,988
Aggregate cost of Unquoted investments 490,211,200 195,000,000
NAV of Mutual Fund Units 1,030,358,506 700,181,412
Aggregate Market value of Quoted investments - 252,421,955
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Financial Statements of
Schedule forming part of the Consolidated Balance Sheetas at March 31, 2011
Schedule forming part of the Consolidated Balance Sheetas at March 31, 2011
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
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 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)
Loans to Group Companies 1,922,300,002 2,942,490,328
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
Contingent provision against standard assets 82,496,463 -
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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Financial Statements of
Schedule forming part of the Consolidated Balance Sheetas at March 31, 2011
Schedule forming part of the Consolidated Balance Sheetas at March 31, 2011
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
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 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)
Loans to Group Companies 1,922,300,002 2,942,490,328
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
Contingent provision against standard assets 82,496,463 -
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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Financial Statements of
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
Profit from sale of Investments and trading activities 193,595,650 96,706,954
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 80,141,605 -
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
Salaries and bonus 656,533,273 434,253,402
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 forming part of the Consolidated Balance Sheetfor the year ended March 31, 2011
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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India Infoline Investment Services Limited
Financial Statements of
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
Profit from sale of Investments and trading activities 193,595,650 96,706,954
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 80,141,605 -
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
Salaries and bonus 656,533,273 434,253,402
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 forming part of the Consolidated Balance Sheetfor the year ended March 31, 2011
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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Financial Statements of
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:
2. Basis of preparation of financial statements:
3. Use of Estimates:
4. Revenue Recognition:
5. Fixed Assets and Depreciation:
A. SIGNIFICANT ACCOUNTING POLICIES:
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.
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.
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 / NHB 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.
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, which-ever 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 Rs.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
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.
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.
6. Investments:
7. Stock in Trade:
8. Retirement Benefits:
9. Provisions, Contingent Liabilities and Contingent Assets:
10. Taxes on Income:
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Financial Statements of
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:
2. Basis of preparation of financial statements:
3. Use of Estimates:
4. Revenue Recognition:
5. Fixed Assets and Depreciation:
A. SIGNIFICANT ACCOUNTING POLICIES:
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.
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.
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 / NHB 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.
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, which-ever 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 Rs.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
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.
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.
6. Investments:
7. Stock in Trade:
8. Retirement Benefits:
9. Provisions, Contingent Liabilities and Contingent Assets:
10. Taxes on Income:
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8. 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
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
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)
11. Operating Leases:
12. Preliminary Expenses:
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.
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
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.
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.
5. 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.
6. Segment Reporting:
In the opinion of the management, there is only one reportable business segment (Financing and 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.
7. 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 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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Financial Statements of
8. 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
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
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)
11. Operating Leases:
12. Preliminary Expenses:
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.
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
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.
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.
5. 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.
6. Segment Reporting:
In the opinion of the management, there is only one reportable business segment (Financing and 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.
7. 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 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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Financial Statements of
12. Information under paragraphs 3 and 4 of part II to schedule VI of the companies Act, 1956 is stated to the extent applicable.
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
Profit after tax as per Profit and Loss account A 922,500,349 537,924,629
Number of Shares Subscribed B 237,154,030 237,154,030
EPS (Rupees) A/B 3.89 2.27
Diluted
Profit after tax as per Profit and Loss account C 922,500,349 537,924,629
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 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)
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
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
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%
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 Company has also taken some other assets under operating
lease. The minimum Lease rentals outstanding as at March 31, 2011, are as under:
Minimum Lease Rentals 2010-11 2009-10
Up to one year 2,734,940 3,142,825
One to five years 666,000 Nil
Over five years Nil Nil
Total 3,400,940 3,142,825
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Financial Statements of
12. Information under paragraphs 3 and 4 of part II to schedule VI of the companies Act, 1956 is stated to the extent applicable.
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
Profit after tax as per Profit and Loss account A 922,500,349 537,924,629
Number of Shares Subscribed B 237,154,030 237,154,030
EPS (Rupees) A/B 3.89 2.27
Diluted
Profit after tax as per Profit and Loss account C 922,500,349 537,924,629
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 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)
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
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
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%
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 Company has also taken some other assets under operating
lease. The minimum Lease rentals outstanding as at March 31, 2011, are as under:
Minimum Lease Rentals 2010-11 2009-10
Up to one year 2,734,940 3,142,825
One to five years 666,000 Nil
Over five years Nil Nil
Total 3,400,940 3,142,825
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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 - - 30,190 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 - - 33,020 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
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.
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
CASH FLOWS FROM OPERATING ACTIVITIES
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
Provision for Doubtful Loans 2,028,274 8,593,632
Provision for Standard Loans 82,496,463 -
Provisions for Gratuity 1,069,761 1,398,065
Provisions for Leave Encashment 985,546 (1,091,042)
Operating profit before working capital changes 1,444,001,987 786,467,512
(Increase) / Decrease in Sundry Debtors 4,439,302 (2,859,782)
(Increase) / Decrease in Loans & Advances (16,880,041,584) (7,105,439,813)
(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)
Cash generated from operations (12,914,456,201) (6,434,403,162)
Tax (Paid) / Refund (425,025,431) (259,129,584)
Net cash from operating activities (13,339,481,632) (6,693,532,746)
Purchase of fixed assets (161,459,021) -
Sale of fixed assets - 6,160,304
Net cash from investing activities (161,459,021) 6,160,304
As at
March 31, 2011Particulars
As atMarch 31, 2010
(Amount in `)
Consolidated Cash Flow Statementfor the year ended March 31, 2011
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Scrip name Face value As at March 31, 2011 As at March 31, 2010
Numbers Amount Numbers Amount
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Financial Statements of
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 - - 30,190 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 - - 33,020 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
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.
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
CASH FLOWS FROM OPERATING ACTIVITIES
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
Provision for Doubtful Loans 2,028,274 8,593,632
Provision for Standard Loans 82,496,463 -
Provisions for Gratuity 1,069,761 1,398,065
Provisions for Leave Encashment 985,546 (1,091,042)
Operating profit before working capital changes 1,444,001,987 786,467,512
(Increase) / Decrease in Sundry Debtors 4,439,302 (2,859,782)
(Increase) / Decrease in Loans & Advances (16,880,041,584) (7,105,439,813)
(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)
Cash generated from operations (12,914,456,201) (6,434,403,162)
Tax (Paid) / Refund (425,025,431) (259,129,584)
Net cash from operating activities (13,339,481,632) (6,693,532,746)
Purchase of fixed assets (161,459,021) -
Sale of fixed assets - 6,160,304
Net cash from investing activities (161,459,021) 6,160,304
As at
March 31, 2011Particulars
As atMarch 31, 2010
(Amount in `)
Consolidated Cash Flow Statementfor the year ended March 31, 2011
65 66
Scrip name Face value As at March 31, 2011 As at March 31, 2010
Numbers Amount Numbers Amount
Consolidated
India Infoline Investment Services Limited
Financial Statements of
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)
Dividend paid (138,271,175) -
Proceeds from borrowings (net) 12,730,985,519 7,942,576,316
Net cash used in financing activities 12,576,214,345 7,940,826,315
Net increase in cash and cash equivalents (924,726,308) 1,253,453,873
Opening Cash and cash equivalents
Cash on hand and balances with banks 2,060,932,935 807,479,062
2,060,932,935 807,479,062
Closing Cash and cash equivalents
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
March 31, 2011Particulars
As atMarch 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-arrange wherever necessary
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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
Chartered Accountants
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.
Consolidated
India Infoline Investment Services Limited
Financial Statements of
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)
Dividend paid (138,271,175) -
Proceeds from borrowings (net) 12,730,985,519 7,942,576,316
Net cash used in financing activities 12,576,214,345 7,940,826,315
Net increase in cash and cash equivalents (924,726,308) 1,253,453,873
Opening Cash and cash equivalents
Cash on hand and balances with banks 2,060,932,935 807,479,062
2,060,932,935 807,479,062
Closing Cash and cash equivalents
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
March 31, 2011Particulars
As atMarch 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-arrange wherever necessary
As per our attached report of even date
For Sharp & Tannan Associates For India Infoline Investment Services Limited
Chartered Accountants
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
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
Chartered Accountants
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.