Annual Report 2015-16

Transcription

Value
Through
Diversity.
2015-16
Annual Repor t
India Infoline Finance Limited
Contents
Corporate
Overview
Statutory
Reports
1-34
About IIFL Group
IIFL Group’s Business Landscape
Introducing IIFL Finance
Wide Spectrum of Offerings
Business Model and Strategic
Priorities
Chairman’s Message
CEO’s Insight
Delivering Diverse Solutions
Investing in Platforms, People and
Processes
Tapping Opportunities in Retail
Lending Space
Corporate Social Responsibility
Advisory Board
Board of Directors
Operating Landscape and
Performance
Financial
Statements
36-65
2
4
6
8
12
Directors’ Report
Annexures
36
49
67-163
Standalone Financial
Statements
Consolidated Financial
Statements
14
16
18
20
22
24
26
28
30
Loan assets under
management
`195,144 million
Income
`11,563 million
Net Profit
`3,387 million
Net NPA
0.5%
ROA
1.8%
ROE
16.9%
(from ` 161,757 million in
FY2014-15, growth of 21%)
in FY2015-16
in FY2015-16
in FY2015-16
67
120
Diversity is the
way forward for
fulfilling customer
expectations in today’s
transformational
world.
Our services are designed to serve
evolving aspirations of retail customers.
In the past few years, we have expanded
our products and services in line with
changing needs of customers in a dynamic
socio-economic landscape.
We are simplifying our processes,
strengthening and empowering our teams
and steering transformation at the field
level for faster and better credit decisions.
At India Infoline Finance Ltd.
(IIFL Finance), we acknowledge this
reality; and strengthen the diversity of
our offerings, encompassing multiple
hues of the financial spectrum.
The result of such a strategy is a
risk-focused business model, and
sustainable profitable growth.
We have a broad canvas of operations in the NBFC sector. It
spans home loan, loan against property, loan against gold,
commercial vehicle finance, capital market finance, healthcare
finance and SME business loan.
The aim is to maintain high quality assets,
lower operating cost, reduce cost of funds
and enhance return on assets.
We have continuously invested in our
operations, workforce, technology and
distribution channels during the year. Our
strategies are translating into positive
outcomes across markets, which prove
that our efforts are in the right direction.
These initiatives will help us capture
an incremental share of emerging
opportunities, as the market activity gains
further momentum.
We will continue to strengthen our diverse
offerings to create sustainable value for all
stakeholders.
About IIFL Group
From an entrepreneurial
start-up in 1995, we have
steadily grown to emerge
as one of India’s leading
financial services group.
Ever since inception, our
strategy has been to align
our capabilities and market
insights to the country’s
rapidly changing business
environment. Our growth
trajectory has only served
to reinforce our focus on
our domain of financial
services.
IIFL Holdings Ltd (Bloomberg Code:
IIFL IN, NSE: IIFL, BSE: 532636) is a
diversified financial services group offering
financing, asset and wealth management,
financial advisory and broking, financial
products distribution, investment banking,
institutional equities, project financing
and advisory services through its various
subsidiaries.
Vision
To be the most respected company in the
financial services space.
- Not necessarily the largest or most profitable.
Values
Fairness
Fairness in our transactions with all
stakeholders including employees, customers,
and vendors, bereft of fear or favor.
Integrity
Integrity and honesty of the utmost nature,
in letter, in spirit, and in all our dealings with
people, internal or external.
Transparency
Transparency in all our dealings with stakeholders,
media, investors, and the public at large.
We have come this far solely based on our core
values serving as a moral compass in all our dealings.
Fairness, Integrity and Transparency - FIT is the driving
force behind all that we do here at IIFL. We only work
with people who fit into our professional ethos. Our
constant endeavor is to deliver befittingly on all
fronts to all our stakeholders. We are resolute in the
observance of these values and will let go of any
growth opportunities that deem unfit.
2
About IIFL Group | Corporate Overview
3,000,000+
~ `800 billion
~ `200 billion
~12,000
500+
300
Global Presence
~2,500
1,000+
Customers
Loan assets under management
Wealth assets under advice
Employees
World’s top institutional
investors rely on our research
Stocks under research
US, UK, Singapore, Hong Kong,
Switzerland, Mauritius and UAE
Locations in India
Branches
International
Subsidiaries’ Locations
UK
USA
Hong Kong
Switzerland
Mauritius
Singapore
UAE
3
IIFL Group’s
Business Landscape
Service offerings across
customer segments
Broking,
Insurance,
Mutual Fund
Retail
High Networth
Home Loan,
Gold Loan,
Commercial Vehicle
Loan, SME and
Healthcare Finance
Asset
Management
Investment
Banking
Institutional
Equities
Corporate
Project Financing
and Advisory
Charts depicts only key businesses and subsidiaries of IIFL Holdings Limited and not all the businesses and subsidiaries
4
Wealth
Management
Institutional
India Investment
Advisory
IIFL Group’s Business Landscape | Corporate Overview
Financing
NBFC
diversified financing company offering home and property
A
loan, gold loan, commercial vehicle finance, healthcare finance,
loan against securities, and SME business loan
Assets Under Management of `195 billion as on March 31, 2016
Aggregate loan book of ` 178 billion and income of ` 12 billion as
on March 31, 2016
Housing Finance Company
Offers affordable financing solutions and retail home loan
Focuses on priority sector customers for home loan and loan
against property
Wealth Management
Wealth Management
One of the largest and fastest growing wealth management
companies in India
Offers advisory, wealth structuring solutions, asset
management, and onshore and offshore distribution services
Assets under advice, management and distribution of close to
` 800 billion as on March 31, 2016
Presence across major countries and Indian cities through a
network of 22 offices
Largest AIF platform in the country across debt, equity, and
real estate
Wealth NBFC
IIFL Wealth Finance focuses on capital-market-related lending
to its high networth clientele
During the year, IIFL Wealth Finance commenced its lending
business and total loans as on March 31, 2016 were about
` 1 billion
Asset Management Company
Wholly owned subsidiary of IIFL Wealth
Investment manager of IIFL Mutual Fund and Alternative
Investment Funds (AIFs)
Agency
Financial Advisory and Broking
Leading broking house offering equity, commodities, currency
broking in retail and institutional segment
Well-known for quality research
IIFL Markets (mobile trading platform) is the best rated and
highest downloaded app among peer group on Google Play
Store with more than 500,000 downloads
Financial Product Distribution
Among India’s top six mutual fund distributors
Leading non-bank distributor for life insurance in the country
Online interface and mobile applications, to comprehend,
compare, and buy products from different insurance and
mutual fund companies
Institutional Research and Investment
Banking
Pedigreed institutional equities team
Premier broker for FIIs, DIIs, private equity funds, banks,
mutual funds, and insurance companies
Investment Banking has a stellar track record of executing
transactions. During the year, IIFL completed 10 transactions the largest number of transactions executed in a single
fiscal year
5
Introducing IIFL Finance
A subsidiary of IIFL Holdings Limited, India Infoline Finance Ltd. (IIFL Finance) is a
systemically important non-deposit accepting non-banking finance company. The
Company was incorporated in 2004 as India Infoline Investment Services Private
Limited and converted into a Public Limited Company in 2007.
Today, our large workforce, led by an experienced management team and a strong
geographic footprint of around 1,000 branches, addresses the capital needs of
under-served markets through our diversified offerings. We have leveraged the
increasing credit demand in the country on the back of a well-diversified product
offering, healthy funding and capital adequacy.
Key Financial Facts
Loan Book
` in bn
5 - year CAGR 28%
Profit After Tax
` in bn
5 - year CAGR 33%
178
3.4
3.0
147
94
109
1.9
67
2012
2.1
1.1
2013
2014
2015
ROE
2016
%
16.9
12.7
2012
2013
2014
Net NPA
2016
%
16.9
13.1
2015
0.54
0.54
2015
2016
0.40
0.33
7.6
0.17
2012
6
2013
2014
2015
2016
2012
2013
2014
Introducing IIFL Finance | Corporate Overview
Cost to Income
%
Cost of Funds
12.0
62.7
%
12.0
64.4
11.3
11.1
55.1
45.7
2012
2013
2014
2015
10.2
45.6
2016
2012
2013
2014
2015
2016
Loan AUM - `195 bn as at March 31, 2016
Mortgage Corporate - 26 bn (13%)
Healthcare & SME Finance - 7 bn (4%)
Commercial Vehicle - 23 bn (12%)
Mortgage Retail - 84 bn (43%)
Capital Market - 26 bn (13%)
Gold Loan - 29 bn (15%)
7
Wide
Spectrum
of Offerings
8
Wide Spectrum of Offerings | Corporate Overview
Core Capabilities
Diversified product portfolio across separate business verticals
Pan-India presence with a talented employee base
Rapidly expanding technological capabilities with emphasis on digitization
Well defined credit processes and risk management strategy
Decentralized operations management for fast processing and quick availability of loans
Strong network with banks and financial institutions
High quality assets
Home Loans
We provide loans for purchase of residential
property, home construction, home
improvement, and plot loans, through our
subsidiary, India Infoline Housing Finance
Limited. We source home loan applications
through our direct sourcing channel, DSA
network, alternate channels, and crossselling products.
FY2015-16 UNDER REVIEW
The Government’s ‘Housing for All’ vision
and an easing interest rate trajectory are
expected to bolster opportunities for us,
going forward.
The retail mortgage loans touched
` 7,241 crore, witnessing 89% year-on-year
growth in the loan book.
During the year, along with our existing
retail lending strategy, we focused on a
customer-centric approach.
A fresh website, with customer friendly
tools such as an EMI calculator, homebuyer guide, and much more features were
launched. A new home loans mobile app,
with features such as online EMI payments,
downloadable statement of accounts
reflected our unwavering focus to enhance
customer convenience and satisfaction.
Mortgage Retail Loan AUM - `8,398 cr
Share of Mortgage Retail - 43% of
loan assets
Dedicated Home Loan Branch count
increased to 58
We also strengthened our feet on the
street by 50% and increased our branch
count to 58. With 2,200+ approved projects
pan-India, we are continuously developing
and deepening relationships with builders
to enhance business.
Loan Against Property
The Company targets SME segment,
especially priority sector, for incremental
business. The self-employed segment,
which is the foremost segment of LAP,
requires efficient checks and controls
to ensure a quality portfolio and risk
reduction. IIFL has in place a robust
platform to undertake necessary
checks regarding the borrowers’ credit
background, and to conduct legal and
technical security evaluation. IIFL leverages
on external as well as internal appraisal
of properties, including valuations by
international property consultants for large
mortgage loans. The verification process
comprises prescribed and independent
fraud control checks.
Has in place a robust platform
to undertake necessary checks
regarding the borrowers’ credit
background, and to conduct legal
and technical security evaluation
LAP portfolio has shown steady growth
and remains stable across all parameters in
terms of risk appetite.
Strengthened Credit, Legal,
Technical, Collections and RiskAnalytics teams
With strong focus on the retail segment,
IIFL is focused on building a cost-effective
distribution channel with controlled risk.
During the year, the Company has further
strengthened its Credit, Legal, Technical,
Collections and Risk-Analytics teams.
9
Commercial Vehicle Finance
Since December 2012, IIFL Finance has
been providing loans for all types of
commercial vehicles (new and used
vehicles; small, light, medium and heavy
commercial vehicles, among others).
The commercial vehicle financing team
sources clients through its direct sales
force; direct selling agents, authorized
dealers of various manufacturers
and the IIFL branch network. The
team comprises members from the
sourcing department, the underwriting
department (credit and operations) and
collections department, empowering it
with holistic capabilities.
The Company has invested in automated
systems and processes. Strategically located
hubs facilitate faster disbursement and help
reduce turnaround time. Loan proposals are
evaluated based on multiple parameters,
including industry experience, borrowing
history, loan documentation and relevant
KYC documents as prescribed by RBI.
The commercial vehicles industry reported
~11.51% growth in sales volume against
which IIFL Finance’s loan assets grew 77%
during FY2015-16 to ` 22,821 million
[Source: Society of Indian Automobile
Manufacturers (SIAM)]. The Company’s
customer base grew 60% during the year.
Strong sourcing network and dealer
tie-ups
Maintaining growth and asset quality
Commercial Vehicle assets grew 77%
in FY2015-16
With the heavy vehicle segment picking
up, the Company has been quick to shift
gears and focus on heavy commercial
vehicles both in new and used segments.
The Company has strengthened its frontend sales and collections team, to drive
the retail business and increase its market
share.
Healthcare Finance and SME
Healthcare financing by IIFL Finance
broadly comprises servicing of loans for
acquisition of new medical equipment
and ancillary and refurbished medical
equipment. We provide loans to doctors,
operating clinics, diagnostics/pathology
centres, nursing homes, hospitals, as
well as medical education institutes. The
loans are extended against the security
of equipment, personal guarantees, and
mortgage of properties.
Since October 2014, we have also been
providing business loans to Small &
Medium Enterprises (SMEs). The team
sources clients through direct sales force
and direct sales agents and leverages gold
loan branch network. The Digital SME arm
provides credit lines to non-individuals to
meet their working capital requirement
through various e-commerce players. It
also provides small-ticket personal loans to
10
individuals. The entire process of sourcing,
approving and disbursement for these
loans is seamless and digitized.
During the year, the Company reviewed
its fast-track product for retail healthcare
loan and simplified its processes and
documentation. It established new tie-ups
with leading manufacturers of medical
equipment. Relationships with existing
manufacturers and customers continued
to be strong. The Company also redesigned
the process flow, bringing in higher
efficiencies at the front-end systems.
On the SME front, loan assets grew steadily
during FY2015-16 on the back of strong
growth in the customer base. The Company
continued to leverage its extensive branch
network and strengthened its sales as
well as support team to service the needs
Tie-ups with online marketplaces for
supply chain financing
Pre-approved loan using credit
scoring method, customer
behavioral data
Tie-ups with leading manufacturers
for medical equipment finance
of its customers, drive retail business, and
increase its market share.
During the year, the Company also built a
fresh team to focus on providing working
capital facilities to SMEs, e-tailers, and
individuals through digital platform and
various partners.
Wide Spectrum of
Standalone
Offerings | Corporate Overview
Gold Loans
IIFL Finance offers loan against gold
jewellery to small businessmen, vendors,
traders, farmers and salaried people
at competitive rates and with quicker
turnaround time. Depending on their
comfort and convenience, our customers
can choose from many disbursal modes
and repayment options to make their gold
loan process smooth and hassle-free. The
Company follows a strong verification
process and our officers are certified and
trained in asset quality practices and have
experience of more than a year.
Further, the gold ornaments pledged
with us are safely stored in fire-proof and
burglary-proof vaults in our gold loan
branches, which are under electronic
surveillance at all times.
With gold prices being volatile for
most part of last year, IIFL’s major focus
was to increase operational efficiency,
contain credit losses, and earn higher
yield. To this end, we introduced new
schemes, streamlined our processes,
and strengthened our collections. These
initiatives have helped us to maintain
our asset quality, well above industry
standards. Our investments in digitization
also helped us to enhance customer
experience, reduce turnaround time, and
simplify operations.
Completely digitize origination and
collection process
Pan-India network of close to 1,000
branches
Follows a strong verification process
and officers are certified and trained
in asset quality practices
Capital Market Finance
The Company offers a wide range of Capital
Market Financing products, including
loans against securities, margin funding,
IPO financing, ESOP financing, promoter
financing, and others. These products
are secured by pledge of listed equity
shares, mutual fund units, structured
notes, bonds, debentures and collaterals,
all approved as per the credit policy. The
target customers include but are not
restricted to high networth individuals
(HNIs), corporates, proprietary firms,
private trusts, partnerships, limited liability
partnerships, and individuals. The retail and
HNI portfolio comprises funding against
diversified stock/securities, reducing risk
of dependence or exposure on a single
security as collateral.
The Company has in place an approved list
of securities based on liquidity and other
quality parameters. As for listed shares, the
Company restricts to RBI-specified list of
shares and ensures maximum loan-to-value
(LTV) of 50%. For each of its transactions,
the Company engages in thorough
verification of its client profile and detailed
analysis of the quality of its collateral,
complemented by in-depth research.
It has consistently executed structured
transactions with a quick turnaround
time, offering competitive interest rates,
along with best-in-class loan management
systems.
In the past one year, the capital market has
not performed well, as global headwinds
and foreign fund outflows hit domestic
equities. Sub-normal monsoons, plunge in
commodity and oil prices and with surprise
interest rate cuts; it has been a year to
remember for the Indian markets. Despite
the turbulence, IIFL has seen incremental
Large base of wealth and broking
customers
Executed structured transactions
with a quick turnaround time,
offering competitive interest
rates, along with best-in-class loan
management systems
demand from retail as well as corporate
customers in this segment. The Company
adhered to changes brought in by RBI to
mitigate risk exposure in the capital market
segment.
The incremental capital market loan
portfolio catering to HNI clientele will be
funded through IIFL Wealth Finance, NBFC
arm of IIFL Wealth Management Ltd.
11
Business Model and
Strategic Priorities
IIFL Finance stands for trust, knowledge, and quality services to retail
customers across India. Our endeavor is to extend organized financing
and timely assistance to the digitally empowered customer through
robust systems and easy-to-use interface. Our business model is
focused on creating value for all our stakeholders.
Build relationships
and enhance
customer experience
Constantly
innovate and adapt
with changing
environment
Address
growing
financial needs
in under-served
markets
Complete
transparency and
honesty with all
stakeholders
COMPLETE TRANSPARENCY AND
HONESTY
IIFL Finance is built on a solid base of
entrepreneurial energy, professional
integrity, and personal commitment. We
operate our business with the highest
ethical standards and remain dedicated
to achieving sustainable and profitable
growth. By exercising rigorous fiscal
discipline, transparency, and developing
risk metrics, we adhere to the highest
standards of corporate governance,
ensuring financial reporting with effective
internal controls.
BUILD RELATIONSHIPS AND ENHANCE
CUSTOMER EXPERIENCE
Intense customer engagement and
understanding facilitates us to create a
mutually profitable partnership. We are
focused on building a process-driven
organization with a culture of compliance
and audit. The enterprise risk management
framework put in place at the Group level,
provides oversight on the risk-taking
activities and guidance. The internal control
system is supplemented by concurrent and
internal audits, as well as special audits and
regular reviews by the management.
Our Board of Directors are highly respected
for their professional integrity as well as
rich financial and banking experience
and expertise. We have an advisory board
comprising stalwarts with long and
immaculate careers in banks, public service,
and the legal profession.
Our systems are custom designed to
suit our diverse product offerings, which
enable us to reduce turnaround time.
The Company’s focus on digitization and
analytics should further help in improving
our customer interactions and positively
impact growth. There has been continuous
progress in digitization, to provide a
seamless experience to customers across
multiple platforms.
12
CONSTANTLY INNOVATE AND ADAPT
WITH CHANGING ENVIRONMENT
We have innovatively designed our product
and distribution strategies to fulfil our
customers’ various requirements. Given our
deep understanding of the retail segment,
we focus on customized products and
solutions that can meet the expectations of
aspiring India.
In this regard, the Company has made
investments in setting up analytics
capabilities, software, and infrastructure to
drive business growth through streamlined
processes and greater operational
efficiency. During the year, the Company
launched its first-ever mobile app and
self-service portal for customers. Customers
also have more flexibility in choosing from
different modes of disbursal and payment
such as IMPS, prepaid cards, and online
money transfer along with traditional
methods of payment.
Business Model and Strategic Priorities | Corporate Overview
Technology continues to be a strategic
enabler for our business growth, cost
optimization, and process innovation.
Going forward, we would continue to adapt
to the persistently changing digital milieu,
seizing opportunities and managing risks at
every stage of our value chain.
ADDRESS GROWING FINANCIAL NEEDS
IN UNDER-SERVED MARKETS
We target under-served clients, which
underscores the importance of having an
extensive branch network. We leverage
IIFL Group’s vast and well-entrenched
distribution network to reach out to
customers in semi-urban and rural areas.
The objective is to increase the share of the
business in under-served Tier II and Tier III
segments through analytics-led targeted
lending and cross-selling. Our branches
give us the human interface, which is
combined with the digital platform to tap
opportunities in the retail lending space.
Key Priorities for FY2016-17
Retail focus
Maintaining risk quality, and smooth
transition to stricter NPA and provision
norms
Improving operational efficiency
Rapid adoption of data analytics and
digitization to drive growth in a fast
changing environment
RETAIL FOCUS
We are focused on retail lending with
high growth and dispersed risk. We seek
to increase our presence in promising
segments including home loan, loan
against property, commercial vehicle
finance and gold loan by utilizing the
extensive branch network to reach
across the country. Our retail business
enables scale and diversification across
geographies, sectors, and collaterals.
MAINTAINING RISK QUALITY, AND
SMOOTH TRANSITION TO STRICTER
NPA AND PROVISION NORMS
IIFL takes a holistic view of risk
management and undertakes an
enterprise-wide risk management
approach under the Enterprise Risk
Management (ERM) Framework. The Group
has in place Risk Management Committee
and Asset Liability Management
Committee (ALCO), consisting of Directors
and senior officials. They regularly meet and
review the policies, systems, controls, and
positions of the financing business. The Risk
Management Committee reviews the risk
management processes, covering credit
and underwriting controls, operations,
technology and compliance risks.
We intend to proactively adopt new NPA
norms and absorb the impact through
continuous improvements in our internal
controls and systems.
IMPROVING OPERATIONAL EFFICIENCY
In order to effectively cater to retail
lenders, we focus on ensuring high degree
of operational excellence and system
automation. We have invested in our own
proprietary system for loan processing
to reduce turnaround time. We plan to
continue our investments in digitizing
business operations effectively enabling us
to replace human judgement and manual
operations by algorithm driven decision
making. This would help bring down our
costs of acquisition leading to improved
operational efficacy.
RAPID ADOPTION OF DATA
ANALYTICS AND DIGITIZATION TO
DRIVE GROWTH IN A FAST CHANGING
ENVIRONMENT
We are a multi-product NBFC. During the
year, the Company entered the digital SME
space through tie-ups with e-commerce
companies, to provide analytics-led,
pre-approved working capital finance to
their suppliers. With diversified product
lines and use of digital delivery channels
and data analytics, we aim to satisfy our
customers’ needs better. This will help
us maintain relations with customers
throughout the product life cycle and
offer us with opportunities to up-sell and
cross-sell products. Furthermore, this will
aid portfolio diversification and reduce risk
of revenue volatility.
13
Chairman’s Message
During the year, the loan book
grew 21% y-o-y to ` 177,695 mn.
We can create significant value
through product innovation and
low-cost, digitally enabled delivery
channels. Our theme for this year Value through Diversity - signifies
the growth opportunity that
beckons us.
Dear Shareholders,
Non-Banking Financial Companies (NBFCs) have a huge role to
play in increasing the scope and reach of credit intermediation
in the country. India’s growth prospects with a rising middle class
population offer enormous opportunities to the financial sector
to serve the needs of a large and discerning customer base. As
a regulator for NBFCs, the Reserve Bank of India has pro-actively
taken several prudential risk control measures over the years to
ensure healthy functioning and growth of NBFCs. With convenient
and innovative service channels, NBFCs can fill important gaps in
financial inclusion by catering to geographies where the banking
system is unable to enter.
14
During the year, the Government and RBI
announced a slew of measures to promote
wider access to formal credit and payment
systems. Aadhaar-linked biometric
transactions, Unified Payment Interface
(UPI), and Bharat Bill Payments System
are steps in the right direction towards
simplifying the financial ecosystem.
Your Company believes that a strong
foundation built on trust, customer
centricity, and diversified product suite will
set the pace for growth and help us deepen
our presence in under-served segments.
We can create significant value through
product innovation and low-cost, digitally
enabled delivery channels. Our theme for
this year - Value Through Diversity - signifies
the growth opportunity that beckons us.
Chairman’s Message | Corporate Overview
AN EXCITING AND EVENTFUL YEAR
During the financial year ended March
31, 2016, your Company registered
healthy performance across financial
and operating metrics. Your Company
generated consolidated income of
` 11,563 million and posted net profit of
` 3,387 million compared with ` 10,255
million and ` 3,012 million in the previous
year. Net interest income stood at
` 9,856 million with ROE of 16.9% (on a
consolidated basis).
Your Company provides loans to salaried
and self-employed individuals and small
and medium enterprises (SMEs). The loan
book comprises home loans, gold loans,
commercial vehicle (CV) finance, loan
against securities, healthcare equipment
finance, and loans to SMEs. A diversified
loan book provides a cushion against
headwinds in a particular segment. During
the year, the loan book grew 21% y-o-y to
` 177,695 million, led by retail mortgages
and CV finance. The retail mortgage loan
book grew 89% y-o-y and constitutes 41%
of the loan book and the CV loan book
grew 93% y-o-y and forms 10% of the
loan book. Within retail home loans, your
Company has directed its efforts towards
the affordable housing segment under
Pradhan Mantri Awas Yojana – Credit Linked
Subsidy Scheme.
During the year, your Company undertook
focused efforts in enhancing people,
process and platform within our various
product segments. Our experienced team
of professionals worked on simplifying the
loan disbursal processes and strengthening
the credit assessment, collection, and risk
policies for scalability and profitability.
Gross NPA and Net NPA ratios stood at
1.44% and 0.54% respectively as at
March 31, 2016.
SURGE OF OPPORTUNITIES
Of 350 million active internet users in India
in 2015, 134 million regularly use social
media platforms - a number
that is growing exponentially
(Source: Digital Statshot India). The
explosion of e-commerce, internet, and
social media usage in India has led to rise
of a new class of digitally savvy, non-bank
financing players in India and globally.
These platforms leverage social media
and internet browsing data to evaluate
creditworthiness of a customer. Fast
changing customer behavior and digital
disruption are a precursor to various new
initiatives that your Company plans to
launch and these will play an important
role in augmenting our capabilities and
promoting steady growth.
We plan to expand delivery of basic
financial services to customers through
innovative technologies. Few such
contemporary technologies include
mobile phone-enabled solutions, electronic
money models, and digital payment
platforms. Digital channels can drive down
costs for customers and service providers,
opening the door to remote and underserved populations.
Your Company leverages technology across
the value chain to drive efficiencies and
improve customer interaction, service, and
reporting. In this respect, your Company
invested in mobile technologies, data
analytics, and digital infrastructure for
a convenient loan disbursal process,
granular credit decisioning, and targeted
lending approach. In the digital era, a
credit decisioning process based on realtime, risk-based scoring method, credit
bureau scores, and consumer behavior can
speed up loan approval and create alerts
in collections mechanism. The business
processes within each of our holistic
product portfolio are customized to offer
hassle-free finance solutions to the target
customer segment.
to expand and fortify its footprint in the
existing network and explore untapped
markets. Moreover, digitalization lies at
the center of all our long-term business
expansion plans. Meeting and exceeding
customer expectations have always been
our ultimate objective.
Your Company remains committed towards
constantly delivering as per customer
needs with our diversified and innovative
range of products and services. The aim
is to migrate our business processes to
end-to-end digital platforms and source a
meaningful share of new business through
digital financing. Your Company will
continue to invest in integrated technology
platforms that can offer seamless and
quality services to our steadily growing
customer base. Customer centricity, backed
by technology solutions and a strong
lineage with our parent in servicing the
retail consumer base, will help us achieve
long-term growth and sustain a culture that
harmonizes quality with consistent growth.
As we look ahead, macro-economic
conditions look bright and with significant
investments and efforts made by your
Company to stay competitive, we are well
placed to capitalize on the opportunity. I
am confident that with perseverance and
commitment of our strong team, your
Company is well-positioned to attain new
milestones.
Warm Regards,
V. K. Chopra
Chairman,
SCALING UP
In the past couple of years, we have
focused on strengthening our talent pool,
streamlining processes and systems, and
improving our operating model. As your
Company moves into the next financial
year, we look at the future with increased
vigor and confidence. Your Company is set
15
CEO’s Insight
Change is inevitable, growth is
intentional – Colin Wilson
We have simplified processes and
are migrating to a paradigm that
enables better and faster credit
decisions by using enhanced
technologies at the field level.
Dear Shareholders,
Focus on excellence and customer centricity holds the key
towards shaping a business from a long-term perspective. In this
context, we have developed distinct capabilities vis-à-vis provision
of financial solutions to both under-served and under-banked
customers over the years. Notably, these customer segments have
limited access to the formal lending ecosystem, as catering to
these segments necessitates careful handholding. Nonetheless,
we have a well-diversified product portfolio and possess a panIndia distribution coverage that places us well to cater to these
customer segments. IIFL Finance has emerged as one of the
leading NBFCs in India by providing all consumer groups with the
relevant products and services.
16
We believe FY2015-16 has been a
defining year, wherein we achieved another
year of steady financial performance
while making structural alignments to
our businesses with respect to people,
platforms, and processes. Thus, we have
laid a foundation for growth in a rapidly
evolving environment. During this year,
the focus of our investments was on
boosting frontline sales strength in core
retail businesses, including mortgages,
commercial vehicles, and SMEs. We have
created the right blend of management
expertise at the senior level.
Technology is a big disruptor in the
current day and age, which continues to
bring about a disruptive change across
businesses at a much faster pace. Backed
by continued focus on transformation
of business processes, we have created
a dedicated management structure that
CEO’s Insight | Corporate Overview
builds on our digital capabilities and
marketing expertise. We have launched
our first-ever mobile app for IIFL Loans
and now have a new revamped responsive
website. We have developed functionalities
including cashless payment, IMPS, selfservice portals and the adoption in this
context is increasing gradually.
As part of our long-term strategy, we
have put in place a central analytics
team and have made the requisite
investments to set up the necessary
infrastructures. As business operations
increasingly digitize, algorithm-driven
decisions will likely replace human
judgment and manual operations.
Analytics would play a pivotal role in
customer and portfolio management,
enabling lower costs of acquisition and
drive higher operational efficiency.
We will continue to take advantage of
this platform and thus, reach out to
more customers directly and indirectly
through our distribution partners.
We have simplified processes and are
migrating to a paradigm that enables
better and faster credit decisions by
using enhanced technologies at the
field level. Our consistent performance
stems from continued efforts of our
skilled and dedicated team. Respect for
individual, open work culture, effective
communication, fair and unbiased
treatment, and welfare of employees
are significant value propositions we
have fostered over the years. Thus, IIFL
Finance has retained a highly engaged
talent pool and has established a high
level of trust among its employees.
BUSINESS PERFORMANCE
Our AUM during the year came in at
` 195.1 billion, up 21% year-on-year and
our profit after taxation stood at ` 3.4
billion, increasing 12%. Our operating
performance reflects the shift towards
long-term orientation. This orientation
also reflects in the investments made
by the Company across different
components of the value chain products, people, process, technology,
and values, to name a few.
MORTGAGE
During the year under consideration,
the Company established a robust
communication structure with its
customers, along with its retail lending
strategy. It fortified the business vertical
of retail home loans to capitalize on new
opportunities in the expanding affordable
home loan segment. Rising affordability,
increasing urbanization and favorable
demographics will be the key drivers of
growth in the mortgage industry. Housing
credit is expected to grow at a steady
pace of 17-19% in FY2016-17 with higher
growth in under-served markets, which are
emerging as growth drivers for HFCs and
NBFCs (Source: ICRA). We are expanding our
geographic presence and strengthening
our sales force to capitalize on this demand.
COMMERCIAL VEHICLE
The commercial vehicle finance grew at
~68% in sales volume and registered 60%
growth in the customer base during the
year. The Company’s constant endeavor
to fulfill customer expectations without
losing focus on quality has led to this
growth. Replacement of aging fleet
prior to implementation of BS-IV and the
government’s recent proposal to allow
private players in the passenger transport
sector represent other growth drivers.
We are well prepared to leverage on
this opportunity.
most of this segment consists of selfemployed individuals who have limited
access to finance. Hence, there is huge
opportunity for NBFCs to fill in the gap.
WAY FORWARD
The industry is at a turning point and is
poised for rapid growth. A significant
catalyst that will shape the contours
of this industry will be adoption and
integration of technology in every aspect
of our functioning. This will not only
lead to reduction in costs and enhanced
productivity but also ensure better and
more sophisticated delivery of our products
and services to our customers. The result is
an exceptional customer experience and a
significant brand recall.
We are looking at consolidating our
operations around the exclusive IT systems
that we have built, making use of worldclass analytics and portals for achieving
business and customer satisfaction.
As we move forward, we intend to take
the learnings from our endeavors and
constantly improve in our pursuit of
excellence in business practices. The future
roadmap is promising and we will continue
to focus on our ability and capacity to
deliver value by exceeding the expectations
of our customers.
Warm Regards,
GOLD
The year under review has not been
particularly favorable for gold loan
financing, given a sharp correction in gold
prices. We focused on presenting new
schemes, rationalized our processes, and
renewed our focus on collections, which
helped us to maintain our asset quality.
Rajashree Nambiar
Executive Director and CEO,
SME
During the year, we made good headway
in this segment and explored new channels
through digitization and partnerships,
in our endeavor to garner higher market
share. We believe that credit among the
MSME market participants in India is
still under-penetrated with large section
financed through informal sources. Further,
17
Delivering
Diverse
Solutions
Customers have wide-ranging financing needs,
which we address through diverse solutions. We
offer home loan, loan against property and gold
jewellery, commercial vehicle finance to healthcare
and SME finance, and capital market finance. Our
multiple products and services across various
business segments provide a diversified revenue
pool and cushion against headwinds in any
particular segment.
18
Our focus is on high growth, dispersed-risk
retail lending where we can take advantage
of our geographical footprint in reaching
out to the target segments. We have also
digitally redesigned our products wherever
necessary in keeping with the latest trends,
effectively bringing down our cost-toincome ratio.
In step with changing times, we have
forayed into digital SME financing
through tie-ups with e-commerce players.
Moreover, the Company intends to increase
its penetration in this product segment
gradually through tie-ups with other
prominent players.
Having multiple products catering to
different profile of borrowers helps us to
diversify our risk largely. Moreover, we have
a strong risk management framework in
place that leverages technology to monitor
and manage risks effectively. We believe
our conscious decision to maintain a
diversified product mix, coupled with our
focus on asset quality and cost controls
will drive profitability. Furthermore, it
will enable us to leverage our brand
effectively and widen revenues through
effective cross-selling and other growth
opportunities.
KEY ADVANTAGES
Diversified nature of loan book protects us
from risks of single product exposure
We maintain relationship with our
customers throughout the product life
cycle, which offers us the opportunity for
repeat business and cross-selling other
products
Continuous monitoring and active
re-balancing depending on changing needs
and market dynamics
Shorter processing and response time
19
Investing in
Platforms,
People and
Processes
We are operating at a time when technology is
disrupting traditional approaches and driving
significant transformation in business processes
and customer experience. At the same time,
a strong government agenda for digitization
through flagship initiatives such as e-Sign and UPI
(Unified Payment Interface) creates a favorable
environment for change.
As the landscape changes around us,
adoption of digitization and technology
continues to be at the core of our
organizational strategy. We have launched
several new initiatives, along with digitizing
customer experience across multiple touch
points. Our processes ensure a disciplined
approach towards risk management
and managing growth. A combination
of simplified processes, automation and
improved turnaround time makes every
interaction more cost-effective and enhances
customer satisfaction.
ELEVATING CUSTOMER
EXPERIENCE
Launched an all refreshed IIFL website
with detailed information, calculators,
and call-back facilities for further
assistance, helping customers make
informed decisions
Introduced digital methods of
disbursing loans via IMPS transfer and
prepaid card
Made available online payment service
to make payments quick, easy, safe and
convenient for all products
Introduced our self-service portal to
help customers manage their loan
account online
Launched a new IIFL Loans Mobile
app, for both Android and iOS phones,
enabling customers to get information
at their fingertips - account summary,
complete statement and interest
certificate, among others
Enabled tablet-based collections for
commercial vehicle business
TRANSFORMING BUSINESS
PROCESSES
API integration with digital finance
partners for instant sanctioning
Shift towards electronic surveillance of
gold loan in branches across India
STRENGTHENING HUMAN
CAPITAL
Strengthened our leadership team
with fresh talent and capabilities
Introduced best practices in talent and
resource management
Encouraged employees to enhance
their entrepreneurial, technical and
behavioral skills in line with the Group’s
culture of learning and continuous
development
These initiatives have created a strong
platform for sustainable growth and
positioned us well to become a prominent
digital lender in the marketplace.
Invested in new platforms for data
analytics and accounting
21
Tapping
Opportunities
in Retail Lending
Space
Our focus on retail lending enables us to disperse our
risk exposure effectively by including low-income and
middle-income segments. This helps us to expand our
loan portfolio steadily while maintaining asset quality
and achieving growth. We believe, we are better
aligned towards our strategic goals of going retail,
since more than 75% of our loan book comprised retail
loans, as on March 31, 2016. This number is expected
to increase further given our continued focus on retail
lending and shift of non-retail loans in our capital
market book to IIFL Wealth.
Economic growth, rise in middle class population, and
continued focus of the government on affordable housing
(incentivizing developers and consumers alike) will help sustain
momentum in the retail mortgage space. Furthermore, recovery
in infrastructure and industrial sectors have engendered revival
in heavy commercial vehicles and used vehicle segments. Thus,
we expect mortgage, commercial vehicle and SME financing to
be our biggest growth drivers, going forward.
22
HOME LOAN
India’s housing finance industry is growing
fast and is served by multiple institutions
that cater to people in diverse geographies
and across income levels. Mortgage lending
has significantly contributed to growth
in construction activities and housing
consumption. According to ICRA, total
housing credit outstanding in India as on
December 31, 2015 stood at ` 11.9 trillion,
showing 18% growth for nine months visà-vis ` 10.5 trillion of March 31, 2015. This
growth was mainly because of disbursements
against construction-linked loans, growth in
the affordable housing segment, and increase
in demand from Tier II and Tier III cities.
In the Union Budget FY2015-16, the
government announced a slew of measures
to bolster the housing finance sector. Firsttime home buyers will get an additional
interest deduction of ` 50,000 in FY2016-17
(the current deduction is ` 150,000), if the
loan availed does not exceed ` 3.5 million
and the cost of the house is restricted
to ` 5 million (usually categorized as
affordable houses). The plan of housing for
all is a key constituent of the Government’s
strategy for making Indian cities inclusive
and productive. Improved stimulus to
the establishment of affordable housing
mission, accompanied by faster approvals
and other supportive policy changes will
lead to an upturn in construction activity.
COMMERCIAL VEHICLE
SEGMENT
During FY2015-16, the commercial vehicle
industry registered 11.51% year-on-year
growth with sales of 685,704 units, compared
with 614,948 units in FY2014-15 (Source:
autocarpro.in). The market was largely driven
by new model launches, lower fuel prices,
and declining interest rates. India’s rapid
urbanization, coupled with improving road
infrastructure and regulatory policies will
influence CV buyers and Original Equipment
Manufacturers (OEMs). Our existing
geographic footprint, along with operating
efficiency, faster response time places us in a
better position to leverage this opportunity.
SME
While Small and Medium Enterprises
(SMEs) are vital in integrating any
economic system in the society, they
face several challenges – the most
prominent amongst them being the
availability of low-cost and timely
finances for growth and expansion. SMEs
need suitable finance to meet needs
at each stage of their life cycle – right
from conception through operation,
development, reorganization, recovery
and beyond. A constructive approach is
required, involving innovative lending
from the financial sector and improved
corporate governance structure. This will
pave way for a robust flow of finances to
SMEs. According to CRISIL, loan against
property segment for SMEs is expected
to grow by ` 5 trillion by FY2018-19; and
NBFCs are expected to contribute nearly
half of this.
The retail segment underlines significant
opportunities for the lending business,
especially in the digital SME segment. The
focus on digital India and e-commerce
along with huge latent demand for credit
from the self-employed population in India
will drive the lending business.
DIGITAL FINANCE
Through the digital finance initiative,
the Company aims to collaborate with
e-commerce portals, aggregators and
fintech companies to offer financial
solutions to their merchants. We aspire
to deploy advanced technology in every
aspect of the business and thus facilitate
significant reduction in operational costs
while creating a highly scalable growth
model. This combined with various
initiatives supported by Government
towards Digital India will help bring in
additional volumes and new customers to
our Digital SME segment.
23
Corporate Social Responsibility
As a responsible corporate citizen, we undertake numerous
initiatives that empower the underprivileged sections of society
and help uplift the communities we work with.
KEY FOCUS AREAS
Integrated Rural Development
Drought Relief and Water Conservation
Education & Financial Literacy
Health
Economic Empowerment of Women
Sustainable Livelihood
IIFL FOUNDATION
IIFL Group’s CSR arm, IIFL Foundation
aims to alleviate poverty and facilitate
economic development through focused
and need-based programs. What started
as a financial literacy program has now
blossomed into a holistic intervention.
IIFL Foundation has always followed a
bottom-up approach. The foundation’s
core activities are in Maharashtra and it is
conducting programs in Rajasthan too.
During the year, Dr. Sarika Kulkarni, CEO
of IIFL Foundation, was honoured as ‘100
Most Impactful CSR Leaders Award (Global
Listing)’ at the World CSR Day.
KEY PROJECTS
TRIBAL DEVELOPMENT
IIFL Group has adopted 32 tribal locations
in three villages (Walvanda, Shiroshi
and Kasatwadi) of Jawhar Taluka in
Palghar district, Maharashtra under
IIFL’s flagship program ‘Gram Vardhan
Yojana’. This entails working on various
social parameters, which include
building check dams and other rainwater
harvesting structures, to ensure year-long
water supply and support agri-based
livelihoods.
Furthermore, we focus on income
generation and skill development
programs for women, vocational training
for tribal boys and community sanitation
24
Gram Vardhan (village adoption program), Jawhar, Maharashtra
units for hamlets. Our sanitation units aim
to achieve Open Defecation Free tribal
areas, contributing to the government’s
Swachh Bharat initiative.
CHECK DAMS AND OTHER RAINWATERHARVESTING STRUCTURES
IIFL Foundation has vowed to make the
tribal areas of Jawhar Taluka drought
free. In FY2015-16, we constructed
two big check dams and over 50
other rainwater-harvesting structures.
Consequently, the groundwater table
rose substantially in these areas.
Therefore, during FY2015-16, over 40
farmers did not have to migrate, and
are cultivating flowers and vegetables
throughout the year.
WOMEN EMPOWERMENT PROGRAMS
Over and above training, skilling, and
supporting 1,000 tribal women to start
micro enterprises, we have also supported
a ‘Women’s Development Centre’ in
Kankroli, Rajsamand district, one of the
most backward areas in Rajasthan. IIFL
Foundation will be conducting several
skill-training and income-generation
programs for women. A nursing school for
underprivileged girls was also supported
in Ponda, Goa. This school will train
250 young girls and support them with
sustainable employment opportunities.
EDUCATION AND FINANCIAL LITERACY
Financial literacy is one of the flagship
programs of IIFL Group. Under our
Financial Literacy Agenda for Mass
Empowerment Initiative (FLAME), we
have been undertaking several programs
for people from different walks of life.
In FY2015-16 the focus was on financial
literacy in rural areas and over 150,000
people from Maharashtra’s tribal belt
undertook this program.
FINANCIAL SERVICES HACKATHON
In association with the Centre for
Innovation and Incubation (CIIE) at IIM
Ahmedabad, we hosted a one-of-its-
Corporate Social Responsibility | Corporate Overview
kind financial services business-plan
competition. The top three ideas would be
incubated at IIM Ahmedabad.
Health Camp at Barsana
Micro enterprises for women
HEALTHCARE INTERVENTIONS
We have undertaken various projects to
provide healthcare services to the rural
poor. Among various measures, free
health check-up camps were conducted
in rural areas (Pandharpur, Maharashtra;
Barsana, UP; and Jawhar, Maharashtra).
Over 200,000 people were checked and
screened at these camps and over 15,000
eye surgeries were performed. We have
also supported a cancer screening camp
for rural Karnataka, where over 100,000
people were checked.
32
Tribal locations adopted in
Jawhar Taluka, Palghar
50
Constructed rainwaterharvesting structures
1,000
Tribal women supported to
start micro enterprises
Check dam construction in Jawhar
25
Advisory Board
IIFL Group’s Advisory Board comprises stalwarts with
extensive experience and domain expertise, providing
independent and informed perspective and oversight to
Management, while guiding the Group’s strategic focus.
Mr. Ashok Jha
Retired IAS, Former Finance Secretary,
Government of India
Mr. Ashok Jha, an IAS officer, has had a stint
of 38 years in civil services and held crucial
positions in State and Central Government
establishments. For about two years,
Mr. Jha served in the Finance Ministry of
the Government of India, first as Secretary,
Economic Affairs, and later with additional
responsibility as Finance Secretary. He was
India’s alternate Governor in the World Bank
and the Asian Development Bank.
Mr. Jha served as the Secretary, Department
of Industrial Policy and Promotion and
Chairman of Foreign Investment Promotion
Board (FIPB) in his capacity as Secretary,
Economic Affairs. He was also Advisor,
International Affairs, FICCI. After retiring,
Mr. Jha was President, Hyundai Motors,
India. He is currently an Independent
Director on the Boards of some companies.
26
Mr. Keki Dadiseth
Former Chairman of HUL
Mr. Keki Dadiseth, a Fellow member
of the Institute of Chartered Accountants
of England & Wales, had joined Hindustan
Lever Ltd. in 1973 and became Chairman
of HUL in 1996. He was appointed as
Director on the Board and Executive
Committee of Unilever PLC and Unilever NV
in May 2000. In India, he is on the Boards
of The Indian Hotels, Britannia Industries,
Piramal Enterprises, Siemens, Godrej
Properties, ICICI Prudential Life Insurance,
ICICI Prudential Asset Management Trust.
He is the Chairman of the Convening Board
of Marsh & McLennan Cos in India, and
Non-Executive Chairman of Omnicom
India. He is also on the Advisory Board of
Accenture Services and PriceWaterhouse
Coopers, and a Senior Advisor to the World
Gold Council, India.
Mr. Keki Mistry
Vice Chairman and CEO
of HDFC Ltd.
Mr. Keki Mistry is a Fellow of The Institute
of Chartered Accountants of India. Mr.
Mistry joined HDFC in 1981. He was
appointed as Executive Director in 1993,
as Deputy Managing Director in 1999,
and as Managing Director in 2000. He was
re-designated as the Vice Chairman and
Managing Director in October 2007 and as
Vice Chairman and Chief Executive Officer
from January 2010. Besides being on the
board of several HDFC group companies,
Mr. Mistry is a director on the board of
other public limited companies such as
HCL Technologies, Sun Pharmaceutical
Industries, Greatship (India), Torrent Power,
and GRUH Finance. He is also on the board
of CDC Group, London.
Advisory Board | Corporate Overview
Mr. Sat Pal Khattar
Singapore-based prominent lawyer
and investor
Mr. Khattar, a prominent lawyer, is a
Singapore-based Indian community
leader and businessman. He was founder
of Khattar Wong & Partners, one of
Singapore’s largest law firms, and is the
Chairman of Khattar Holdings, a private
family investment firm. Among the various
positions held by him, Mr. Khattar was
Chairman of the Board of Trustees of
Singapore Business Federation, a member
of the President Council for Minority
Rights, a life trustee of the Singapore
Indian Development Association (SINDA),
and Co-Chairman of the Singapore-India
Partnership Foundation. He received
the prestigious Padma Shri award from
Government of India in 2011.
Mr. Somasekhar Sundaresan
Eminent Lawyer, Partner,
M/s J. Sagar Associates
Mr. Somasekhar Sundaresan is an
eminent Corporate Lawyer who heads
the Securities Law practice of M/s J. Sagar
Associates, Advocates and Solicitors. He
has extensive experience in advising
clients in the areas of Securities Laws,
M&A, and Foreign Investment in India,
including strategic Foreign Direct
Investment, Portfolio Investments
and Private Equity Investments.
Mr. Somasekhar is a permanent invitee to
the executive committee of FICCI and is
an active member of its Capital Markets
Committee.
Mr. S. Venkatachalam
Career banker, ex-Citibank,
Chairman, Oracle India
Mr. S. Venkatachalam is the Chairman of
the Board of Directors of Oracle Financial
Services Software. He has served Citibank
N. A. for nearly 30 years, holding several
senior positions during his stint. He is
currently on the Board of Equifax Credit
Information Services and Canara Robeco
Asset Management Company and he is
an advisor to Karvy Financial Services.
He has previously served as an advisor
to Fullerton India Credit Corporation and
was on the Board of State Bank of India
as an Independent Director. A Chartered
Accountant by profession, he has rich
experience in the field of banking, finance,
administration, compliance, taxation,
and labor laws.
27
Board of Directors
Our Board of Directors are highly respected for
their professional integrity and rich financial and
banking experience.
Mr. V. K. Chopra
Independent Director
& Chairman
Mr. V. K. Chopra is a Fellow Member of
The Institute of Chartered Accountants of
India. He was the Whole-time Member of
SEBI for two years. He has been a career
banker and has held several top positions
during his 36 years of experience in Banks;
including three years as the Chairman
and Managing Director in Corporation
Bank; three years as Executive Director in
Oriental Bank of Commerce and as General
Manager in Central Bank of India where he
worked for more than three decades.
28
Mr. Nirmal Jain
Whole-time Director
Mr. Nirmal Jain is Founder and Chairman
of IIFL Holdings Limited. He is a PGDM
from IIM, Ahmedabad, a rank holding
Chartered Accountant and a Cost
Accountant. He started his career in
1989 with Hindustan Lever Limited and
founded Probity Research and Services
(later renamed as India Infoline Limited)
in 1995; one of the first independent
equity research companies in India. He
was instrumental in steering the Group’s
foray into various businesses that have
grown significantly over the years in
terms of networth and profitability.
Under his leadership, IIFL Group has
emerged a dominant and diversified
player in the financial services space
over the past 21 years.
Mr. R. Venkataraman
Non-Executive Director
Mr. R. Venkataraman, Co-Promoter and
Managing Director of IIFL Holdings
Limited. He is a B.Tech from IIT, Kharagpur
and MBA from IIM, Bangalore. He joined
the Company’s Board in July 1999. He
has been contributing immensely into
the establishment of various businesses
over the past 17 years. He previously
held senior managerial positions at ICICI
Limited, including ICICI Securities, its
investment banking joint venture with
JP Morgan, and Barclays BZW. He worked
as Assistant Vice President with GE
Capital Services India in its private equity
division. He has a varied experience
of more than 25 years in the financial
services sector.
Board of Directors | Corporate Overview
Ms. Geeta Mathur
Ms. Geeta Mathur is a Chartered
Accountant and a graduate from Shriram
College of Commerce, Delhi University.
She specializes in project, corporate and
structured finance, treasury, investor
relations, and strategic planning. She
started her career with ICICI where she
worked for over 10 years in project,
corporate and structured finance, and
represented ICICI on the Board of reputed
companies such as Eicher Motors, Siel Ltd.
She then worked in various capacities
in large organizations such as IBM and
Emaar MGF. She is currently on the Board
of several large listed companies including
Motherson Sumi, NIIT and RSWM.
Ms. Rajashree Nambiar
Executive Director & CEO
Ms. Rajashree Nambiar holds an MBA and
a Bachelor of Science in Physics (Honours).
She is an experienced banker with 22 years
of rich work experience with ANZ and the
Standard Chartered Group. She has held
several leadership positions within the
SCB group; last position held was, General
Manager, Retail Banking Products, Brand &
Marketing, India & South Asia.
29
Operating Landscape and Performance
Industry Overview
Non-banking finance companies (NBFCs) are integral to India’s financial
ecosystem. They play a significant role in nation building and financial
inclusion by reaching out to the society’s unbanked and under-banked
segments. They primarily cater to the micro, small and medium
enterprises (MSMEs), which can lay the foundation for entrepreneurship,
innovation and job creation opportunities in the country.
Improving macroeconomic conditions, higher
credit penetration, enhanced consumption,
and disruptive digital trends will allow credit
of NBFCs to grow at a healthy 7-10% (real
growth rate), over the next five years. As credit
penetration deepens, consumption growth
can outpace income growth, engendering
a strong growth outlook. Democratization
of credit is a huge driver for consumption,
improving livelihood of people.
Factors that facilitate growth of NBFCs include
better product lines, wider and effective
reach, strong risk management capabilities
and better understanding of customer
segments. In an environment where delivery
of financial services is highly commoditized,
customer experience remains the critical
differentiator. The ability to tailor financial
KEY GROWTH DRIVERS
Economic growth
At 7.6% GDP growth for financial year
ended March 31, 2016 (FY2015-16), India is
one of the fastest among major economies
in the world. During the year, the economy
crossed the US$2 trillion mark and is
expected to continue with this trajectory
in FY2016-17.
Looking ahead, India’s growth story
will be determined by investments
in infrastructure and excellence in
manufacturing. The economy
continues to consolidate the gains
achieved through the government’s
fiscal consolidation measures. The
Government is also enhancing ease
of doing business in India; and the
30
Credit growth at NBFC as a % of total credit
CAGR 7%
(%)
CAGR 10%
25.0
20.0
15.0
13.0 13.0
13.9
14.3
14.9
15.7
15.9
17.3
19.0
17.0
20.9
18.2
10.0
5.0
0.0
2015
2016E
2017E
2018E
2019E
2020E
Source: PwC Analysis
solutions to customers across multiple platforms will result in an upsurge in product innovation.
This in turn will enhance demand for NBFCs.
country aims to figure among the
top 100 nations in the ease of doing
business ranking of World Bank.
Furthermore, across-the-board reforms
in financial services, manufacturing,
infrastructure, and the rural sector
potentially augur well for the economy.
Housing shortage
According to market research firm
RNCOS, shortage of urban housing across
the country is expected to increase to
an estimated 34 million units by 2022.
This is primarily driven by increasing
demand-supply gap and rising income
level of the working population in Tier I
and Tier II cities. There has been a rise in
affordability due to a fall in home loan
rates and rising income levels.
Urbanization
With more than 10 million people
migrating to cities and towns every year,
the total urban population is expected to
reach about 600 million by 2031. Between
2015 and 2031, the stride of urbanization
is likely to increase at 2.1% CAGR. This
trend has significantly increased demand
for housing in the urban context, with
growth of smaller families.
Rise in nuclear families
The fall in household size is expected
to create demand for 10 million new
housing units. About 35% of India’s
population is in the 15-35 age bracket
which is expected to drive the demand
for housing over the next 15 years. Based
on changing socio-economic factors,
Operating Landscape and Performance | Corporate Overview
the number of nuclear families will
rise, correspondingly raising demand
for affordable housing in the country,
especially in metro cities.
Government initiatives
The Government has taken the lead
in pushing India’s NBFC sector. Some
initiatives include
RBI has simplified registration norms
for NBFCs by making the process of
registration for new NBFCs hassle-free
Tax deduction in respect of provision of
non-performing assets (NPAs) up to 5%
of the total income, previously limited
to banks, public and state financial
institutions, is now extended to NBFCs
in the Union Budget for FY2016-17
Sluggishness in domestic demand and
slowing global economy growth led to
deterioration in asset quality of Indian
NBFCs and banks in FY2015-16.
Extension of Securitisation and
Reconstruction of Financial Assets and
Enforcement of Security Interest Act
(SARFAESI) for Asset financing NBFCs
would help in improving loan recovery
from defaulting borrowers. In addition,
in a boost to Asset Reconstruction
Companies (ARC), 100% FDI would be
permitted through the automatic route
by making the necessary amendments
to SARFAESI Act
Interest reversals due to transition to a
more stringent regulation for NPA would
affect margins in the medium term
NPA recognition is moving from
150+dpd currently to 120+dpd in
FY2016-17 and further to 90+dpd in
FY2017-18, on par with banks
Standard asset provisioning is being
raised from 0.30% currently to 0.35%
in FY2016-17 and further to 0.40% in
FY2017-18
Housing loans of up to ` 5 million are
brought under the affordable housing
segment with loans up to ` 2.8 million
in urban and ` 2.5 million in other
centres under Priority Sector Lending
The decision of the RBI to increase LTV
ratio to 90% for loans up to ` 3 million
or less was another positive step, which
will enable home finance companies to
lend more to LMI customers, enabling
them to own a home
Additional interest deduction of
` 50,000 is allowed for loan up to
` 3.5 million for first-time home buyers,
where cost of the house does not
exceed ` 5 million
OUTLOOK
Following muted growth for the past few
years, FY2016-17 seems a favorable year
due to following factors:
Forecast of above-normal
monsoons: After two consecutive
years of “below-average” monsoons,
Indian Meteorological Department
(IMD) predicted “above-normal”
monsoon for 2016. Agriculture,
the backbone of Indian economy,
has been struggling since the past
two years and rural demand has
been weak owing to decrease in
disposable income. This reflected in
slowing sales of rural-centric products
such as tractors, motorcycles, and
FMCG. An “above-normal” monsoon
would provide a strong fillip to rural
consumption, resulting in higher
growth in rural credit for commercial
vehicles, tractors, gold, and SME loans
Strong fundamental outlook:
Falling oil prices, increasing public
capital expenditure and encouraging
government schemes would
supplement credit growth in the
system. Initiatives such as ‘Make in
India’ and ‘Start-up India’ should boost
credit demand in the medium term
for banks and NBFCs
Changing market demographics:
Upgrading to 4G services,
accelerating growth of e-commerce,
and digitization in rural India have
led to significant demand in credit
from both entrepreneurs and
customers. Such a scenario would
compel NBFCs to innovate with
digital products and services, catering
to a new set of customers. Many
digital start-ups offering innovative
products (e.g. peer-to-peer lending)
are slowly gaining momentum in
India. The future appears exciting
since companies would need to
continuously evolve their business
models to counter new competition
31
Operating Landscape and Performance (Contd.)
Operational and Financial Highlights
AUM stands at ` 195 billion up 21%
year-on-year. Total loan book stands at
` 178 billion up 21% year-on-year
Profit After Tax stands at ` 3.4 billion up
12% year-on-year
We remained focused on strengthening
the core of our business by increasing
operational efficiency and streamlining
processes
Our strategy is well on track as we
delivered on our goals of consistent,
profitable, and responsible growth
Gross and Net NPA (Non-performing
asset) were 1.44% and 0.54%
respectively for the year under review
Provision coverage (including standard
assets provision) was at 90% as on
March 31, 2016
We are prepared for the movement to
new NPA norms and the businesses will
be resilient to absorb the impact
We continued to make good progress
with our digitization initiatives
Business Overview
HOME LOANS
Over the last decade, housing finance in the
country has emerged as one of the most
secured asset class with low delinquencies.
Housing finance has grown at a robust 19%
CAGR over the past three years (FY2013-15),
higher than the overall bank credit growth
(Source: Care Ratings).
The Government’s thrust on providing
housing to all by 2022, combined with
significant housing shortages in the low cost
and affordable housing is expected to fuel
credit growth in the segment. Reduction in
interest rates, increase in disposable income
due to economic growth, relaxation in FDI
norms, and renewed focus on execution of
projects will accelerate demand for home
loans. Moreover, income tax benefit for
first-time home buyers and the affordable
housing segment, particularly in Tier II and
Tier III cities will further contribute to growth
in this segment.
Outlook
India’s housing sector is charting an
attractive growth trajectory
(Source: Booming Housing Sector in
India Report). Rising population, nuclear
families, high disposable income, low
interest, and tax concessions in home
loans pave the way for an upsurge
32
in housing needs. The Company is
investing in technology to tap this
opportunity, to optimize internal as
well as external processes, reduce
turnaround time, and enhance customer
experience.
LOAN AGAINST PROPERTY
Loan against property (LAP) are provided
for working capital requirements,
business use, new commercial property
acquisition and construction financing.
The demand for loan against property
from small business segments has been
growing significantly. LAP is a common
avenue for micro, small & medium
sized enterprises (MSMEs) to fund their
working capital requirement.
Outlook
The demand for loan against property
from small business segments has been
growing significantly. LAP is a secured
avenue to fund the working capital
requirement for small & medium size
enterprises. IIFL will continue to carve a
niche for itself in this segment through
innovative offerings and service expertise.
Our presence in Tier II and Tier III cities,
process efficiency and quicker turnaround
time will provide an edge over the
competition.
SMALL AND MEDIUM ENTERPRISES
SMEs have been accepted as a major
engine of economic growth and for
promoting equitable development. The
major advantage of the sector for India
is its high employment potential at low
capital cost.
Outlook
IIFL Finance expects the SME market to
do well in FY2016-17, given thrust by
Government of India on SMEs through
initiatives such as ‘Make in India’ and other
reforms. The Company is competently
placed to scale its business and increase
market share through its strengthened
sales and support team.
LOAN AGAINST CAPITAL MARKET
INSTRUMENTS
In order to ensure consistent and inclusive
growth of an economy, capital markets
play a critical role in mobilizing savings in
productive and long-term assets. Domestic
macroeconomic variables like benign
inflation, improved liquidity from RBI, along
with government’s pro-reform initiatives
are set to provide the much needed fillip
to economic activity. An encouraging
response has been noticed to initial public
offerings with strong participation from
domestic as well as institutional investors.
Operating Landscape and Performance | Corporate Overview
The mutual fund industry registered robust
inflows during the year from the retail and
high networth investors.
Outlook
Performance of capital markets in India
will be largely driven by favorable
macroeconomic conditions, lower interest
rates, and good corporate earnings. The
Company plans to tap opportunities in
the primary and secondary markets and
will continue to build on its diversified
securities and retail client portfolio.
COMMERCIAL VEHICLE FINANCE
During FY2015-16, sales of the domestic
CV industry grew at 11.5% in volume terms
comparison with 2.8% decline during
FY2014-15. The recovery was driven by
continuation of healthy replacement-led
demand in case of M&HCVs (trucks), and
fleet expansion by various State Road
Transport Undertakings (SRTUs) as well
as some pick-up in demand from the
mining and construction-driven sectors.
In addition, the industry also benefited
from implementation of BS-IV emission
norms, which became mandatory across
North India and some nearby regions from
October 2015.
The segment is likely to register 13-15%
during FY2016-17 driven by continuing
trend towards replacement of aging fleet,
pre-buying before implementation of BS-IV
across India, and expectations of pickup in
demand from infrastructure and industrial
sectors in view of reforms initiated by the
Government (Source: ICRA).
Outlook
IIFL Finance expects the market to grow
consistently at more than 10% or more for
the next three years, driven by continuing
trend towards replacement of aging fleet
and expectations of pick-up in demand
from the infrastructure, industrial and
mining sectors, in view of reforms initiated
by the Government. The Company is
competently positioned to scale its
business in keeping with growth in total
industry volume.
GOLD LOAN
Gold is a highly liquid asset and people
have leveraged it for meeting their
liquidity. However, for a very long time,
this activity was overwhelmingly carried
out by the unorganized sector (local
moneylenders and pawnbrokers). In
recent years, the organized sector (NBFCs
and Banks) has entered the business
in a big way and brought about a
transformation in the way the business
is done. However, even today, the larger
share of the business continues to be with
the unorganized sector; moreover, the
bulk of private gold is not monetized.
Two-thirds of India’s gold demand comes
from villages, where jewelery is traditionally
used for investment. India remained the
second biggest gold consumer in 2015 after
China, where demand rose last year by 3%
to 984.5 tonnes. According to the World
Gold Council, gold demand in India in the
first quarter of 2016 was 116.5 tonnes, 39%
lower than in the corresponding quarter of
2015, when it was 191.7 tonnes. In the Union
Budget FY2016-17, excise duty on jewelery
was increased from nil to 1% (without input
tax credit benefit; 12.5% excise duty with
input tax credit). India Ratings and Research
expects jewelery demand to remain strong
and grow between 3% and 5% to reach
670-685 tonnes in 2016, driven by weddingrelated purchases.
Outlook
With gold prices stabilizing, the
Company expects to grow the business,
improve operational efficiency, and
enhance customer experience on
the back of high quality assets and
digitization initiatives.
period and it plays a critical role at each
stage of the healthcare continuum.
The current demand and supply
side dynamics provide a significant
opportunity and rationale for
manufacturing medical devices in India.
The Government of India’s ‘Make in India’
initiative presents a platform for the sector
to revisit the operating model, identify
key imperatives for growth, and explore
possibilities for creating a step change in
the medical devices sector.
The Indian healthcare market, which is
worth US$ 100 billion, will likely to grow at
a CAGR of 23% to US$ 280 billion by 2020
(Source: Deloitte Touche Tohmatsu India).
Factors such as changing demographics,
rising life expectancy, and growing public
awareness have contributed to higher
demand for medical care.
Outlook
Going forward, the Company will
capitalize on its experience and will
pursue further strategic tie-ups with
manufacturers for equipment-based
schemes. The Company plans to continue
pursuing smaller ticket retail loans
through its branches and manufacturer
tie-ups. As a part of its strategy for
healthcare finance, it will focus more
on retail loans and will offer loans for
infrastructure expansion and renovation
and to various categories of healthcare
customers such as equipment dealers
and individual doctors. It also plans
to focus more in Tier II and III cities as
growth opportunities here are higher
compared with metros. This will help in
diversifying the portfolio from a business
risk perspective.
HEALTHCARE FINANCE
India’s healthcare industry is on a high
growth trajectory, having evolved
significantly in the last decade. However,
healthcare provision remains inequitable
and challenges in access to quality and
affordable healthcare persist in large parts
of the country. The medical devices sector
has also grown considerably during this
33
Operating Landscape and Performance (Contd.)
Risk Management
The Company recognizes the importance
of a well-defined and comprehensive Risk
Management Framework to ensure that
business growth is managed within the
risk limits and tolerances approved by the
Board. A strong risk management function
is an integral part of the Company’s
business strategy of delivering superior
risk-adjusted returns for its stakeholders.
As a large, systemically important NBFC,
the Company’s business model requires
the risk team to identify, measure, manage,
and mitigate all risk factors and allocate
capital among its diverse businesses.
The overall risk management
policy is approved by the Board of
Directors. Core risk management
responsibilities are embedded in the
Risk Management Committee (RMC)
of the Board and delegated to senior
management responsible for execution
and oversight. The RMC regularly
monitors the risk and capital profile and
approves the risk strategy annually
At the operating management level,
the Company has a three-line defenserisk-management model that ensures
that the front office functions, risk
management oversight, and assurance
roles are independent of one another
All major risk classes - credit risk, market
risk, operational risk, fraud risk, liquidity
risk, business risk and reputational risk
are managed within the Enterprise Risk
Management Framework
The Company’s risk management
framework consists of management
of systems, processes and policies.
Business is originated and managed
with the defined risk appetite of the
Company
The Risk team keeps a close watch on
the portfolio trends, to identify early
stress signals for potential losses and
for taking quick corrective and remedial
action
Risk Culture
The Company is committed to fostering
a strong risk management culture across
the organization. It is designed to help
reinforce resilience by encouraging a
holistic approach to the management of
risk at all levels within the organization.
Employees at all levels are responsible
for management and escalation of risks.
Emphasis is laid on ensuring that all extant
laws and regulations are fully complied
with in “letter and spirit” at all times.
Risk Infrastructure
The Company has, over the years,
continued to invest in people, processes
and technology to enhance the Risk
Management Framework in tandem with
growth of the business. The Company
will continue to strengthen its risk
management practices by adopting and
adapting the international best practices
and full compliance with extant regulatory
guidelines.
34
Statutory
Reports
Directors’ Report
36
Annexures
49
Directors’ Report
Dear Members,
Your Directors have pleasure in presenting the 12th Annual Report on the business, operations and state of affairs of India Infoline
Finance Limited (‘your/ the Company’) together with the Audited Financial Statements for the financial year ended March 31, 2016.
1)BACKGROUND
India Infoline Finance Limited is a wholly owned subsidiary of IIFL Holdings Limited and is registered with the Reserve Bank of
India (“RBI”) as a Systemically Important Non-Banking Financial Company not accepting public deposits (NBFC-ND-SI). The Company
has its presence in promising business segments including home loan, loan secured against gold, property, commercial vehicles
and securities by utilizing its extensive branch network to reach out to retail customers across the country. The retail business has
provided scale and diversifies the risk across geographies, industries and collaterals.
2) FINANCIAL RESULTS
(₹ In Million)
Consolidated
Particulars
Gross Total Income
Less: Expenditure
Profit/ Loss before Taxation
Less: Taxation expenses
Net Profit After tax
3) REVIEW OF BUSINESS
Your Company has focused on risk retail financing, which
has a dispersed risk profile and high growth potential. The
Company has further increased its presence in promising
segments including Mortgage Loan, Gold Loan, Loan against
Property, Commercial Vehicles and Capital Market Instruments
by utilizing its extensive branch network to reach out to retail
customers across the country. The retail business has provided
scale and diversified risk across Geographies, Industries and
Collaterals.
Overview of FY 2016 on consolidated basis
The Company’s income has increased by 14.69% to
₹ 27,653.79 million and profit after tax increased by
12.44% to ₹ 3,387.01 million during the year;
Loan book grew by 21.14% to ₹ 177,695.05 million as
of March 31, 2016 as against ₹ 146,679.98 million in the
previous year;
Mortgage assets contributed to 53.15% of loan book,
followed by Gold Loan accounting for 16.40%, Capital
Markets about 14.62%, Commercial Vehicle at 9.53% and
Medical Equipment Loans at 3.69%;
Gross and Net NPAs (Non performing assets) were 1.44%
and 0.54% respectively;
Provision coverage (including for standard assets) was
89.73% as at FY16 end. The capital adequacy ratio was
36
Standalone
2015-16
2014-15
2015-16
2014-15
27,653.79
22,445.07
5,208.72
1,821.71
3,387.01
24,110.99
19,596.46
4,514.53
1,502.25
3,012.28
22,073.42
17,922.63
4,150.79
1,433.47
2,717.32
21,766.39
18,053.02
3,713.37
1,236.11
2,477.26
at 17.71%, comprising Tier I capital ratio of 11.65% and
Tier II capital ratio of 6.05% as against the ratio of 15% as
prescribed by the Reserve Bank of India.
4) SHARE CAPITAL
As on March 31, 2016, the Paid up Equity Share Capital of the
Company was ₹ 2,371.54 million and the Paid up Preference
Share Capital of the Company was ₹ 3,250 million. Pursuant
to the terms of issue of 15,00,00,000 - 9.25% Cumulative,
Redeemable, Non-convertible Preference Shares of ₹ 10/each of the Company aggregating ₹ 1,500 million (CRPS),
the Company has redeemed the CRPS on April 25, 2016. The
redemption was done at par value out of the profits of the
Company and a sum equal to the nominal amount of the
CRPS redeemed, has been transferred to Capital Redemption
Reserve in accordance with the provisions of Section 55 of the
Companies Act, 2013.
5) FUND RAISING
During the financial year ended March 31, 2016, the Company
has raised funds from following sources:
1)By issuance of Debentures on Private Placement basis:
During the year under review, the Company has raised
₹ 2,432.00 million by way of Secured Non-convertible
Debentures and ₹ 350.00 million by way of Unsecured
Non-convertible Debentures and the same has been
disclosed in Notes to Accounts for the financial year
ended March 31, 2016.
Directors’ Report | Statutory Reports
2)Funds raised by way of other Borrowings: The Company
has raised funds by way of term loans, issuance of
commercial paper and other sources, details whereof
have been provided in clause V of Annexure I to this
Report.
6) SECURITIZATION OF LOAN PORTFOLIO
During the year, your Company as an originator has
undertaken securitization transactions of total book value of
loan assets amounting to ₹ 5,872.08 million.
In addition to securitization transactions, during the year
under review total book value of loan assets amounting
to ₹ 4,719.18 million has been downsold by way of direct
assignment.
7)DIVIDEND
During the year under review, your Company declared an
interim dividend of ₹ 2.75 (i.e. @ 27.50%) per Equity Shares of
₹ 10/- each involving a total outlay of ₹ 784.94 million (including
dividend distribution tax). Your Directors recommend that
said interim dividend be considered as final.
The Company has also declared and paid dividend on
15,00,00,000 - 9.25% Cumulative, Redeemable, Nonconvertible Preference Shares of ₹ 10/- each (CRPS) as per
the terms of issue of CRPS involving a total outlay of ₹ 177.98
million (including dividend distribution tax).
Your Directors recommend dividend on the following
Preference Shares issued by the Company, subject to same
being approved by the members of the Company at the
ensuing Annual General Meeting and the total outflow on
account of dividend, if approved, would be as under:
Dividend on Preference Shares for financial year 2015-16
Sr.
No
1
2
Preference Shares
8% Non Convertible Redeemable
Preference Shares of ₹ 10/- each
8% Non Convertible Redeemable
Cumulative Preference Shares of ₹ 10/each
Total
Date of
Allotment
Amount of
Preference
Shares (₹ in
million)
Rate of
Dividend
No of Days
750
8%
366
60
12.21
1000
8%
366
80
16.29
140
28.50
September
29, 2014
March 18, 2015
8) SUBSIDIARY COMPANY
India Infoline Housing Finance Limited (IIHFL) is a wholly
owned subsidiary of the Company registered with the
National Housing Bank (NHB). The Company holds 100% of
the paid up share capital of IIHFL.
IIHFL holds Certificate of Registration (not valid for acceptance
of public deposits) from the NHB dated February 3, 2009 to
carry on the business of a housing finance institution.
IIHFL’s products include Mortgage Loans, Retail Mortgage
and Corporate Mortgage Loans. These loans are further
bifurcated into Housing Loans and Loans against Property
(“LAP”). Housing Loans includes finance for purchase of flats,
construction of houses, extension and for improvement in
the flats/homes and for acquiring plots of land (which are
intended to be used for construction of houses), LAP is availed
for working capital requirements, business use, acquisition of
new property and/or for financing construction projects.
1750
Amount of
Dividend
Preference
Distribution tax
Dividend (₹ in
(₹ In million)
million)
Financial Highlights of IIHFL FY 2015-16:
Loan book of IIHFL grew by 168% to ₹ 52,842.96 million
as of March 31, 2016 as against ₹ 19,736.39 million in the
previous year.
Gross and Net NPAs of IIHFL were 0.64% and 0.31%
respectively.
IIHFL’s provision coverage (including for standard assets)
was 122% as at FY16 end, the while Capital adequacy
ratio was at 16.75%, comprising Tier I capital ratio of
11.06% and Tier II capital ratio of 5.69%.
IIHFL’s income significantly increased by 141% to
₹ 5,695.97 million and profit after tax increased by 35% to
₹ 720.59 million during the year.
9) CONSOLIDATED FINANCIAL STATEMENTS
Pursuant to the provisions of Section 129(3) of the Companies
Act, 2013 the Consolidated Financial Statements of the
Company and a separate statement containing the salient
37
features of the Financial Statements of its subsidiary in the
prescribed Form No. AOC-1, is included in the Annual Report
at Page No. 163. The Financial Statements of the Subsidiary
Company is kept open for inspection by the Members at
the Registered Office of the Company. The Company shall
provide free of cost, a copy of the Financial Statements of the
subsidiary company to the members upon their request. The
said Financial Statements are also available on the website of
the Company www.iiflfinance.com.
10) TRANSFER TO RESERVES AND STATUTORY RESERVE FUND
During the year, the Company has transferred ₹ 1,222.00
million to Debenture Redemption Reserve. Besides this, in
accordance with Section 45 IC of the Reserve Bank of India
Act, 1934, the Company has transferred ₹ 550.00 million to
Special Reserve.
11) CAPITAL ADEQUACY
Your Company had Capital to Risk Assets Ratio (CRAR) of
17.71% as on March 31, 2016, as compared to the ratio of 15%
as prescribed by the Reserve Bank of India.
12) MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis (MDA) in accordance
with the Master Circular – “Non-Banking Financial Companies
– Corporate Governance (Reserve Bank) Directions, 2015” is
presented as underEconomic Overview, Industry Structure and
developments, Opportunities & Threats, Outlook,
Risk & Concerns
Economic Overview
India remains the fastest growing large economy in the globe,
which continues to grow at an anemic pace with considerable
uncertainties regarding path of monetary policy in advanced
economies and the extent of slowdown in China.
The Indian economy has grown at a respected rate of just
over 7% in the last two years despite two back to back
droughts. However, with forecast of a normal monsoon,
growth rate is likely to improve further in FY17 and expected
to cross 8% over the medium-term. The fall in commodity
prices has been a major boon for the Indian economy and has
helped achieve macro-economic stability. Inflation has fallen
from almost 10% three years back to 5% now and current
account deficit too has fallen to just 1% of GDP. The new
government has continued the path of fiscal consolidation
and thus fiscal deficit is likely to fall to 3.5% of GDP this year.
This has brought much needed stability on the external
sector despite challenging global economic backdrop and
allowed the RBI to cut interest rates, which will help revive
investments in the economy.
38
Indian Rural economy, which has been reeling under two
consecutive droughts and fall in crop prices globally, is
likely to see a turnaround with the likelihood of normal
monsoons this year. Government’s efforts at kick starting
the investment cycle is showing some signs of improvement
in sectors such as roads, railways and power. A number of
indicators from two-wheeler sales to electricity generation
to cement demand suggest that economic activity is picking
up. Low capacity utilisation in many sectors will however keep
industrial capex muted until there is broad based recovery in
domestic demand. The Union Budget struck a fine balance
between maintaining fiscal prudence and stepping up public
investments as well as supporting the under-stress rural
economy. The recent passage of key reforms like Real Estate
Development Bill, Insolvency and Bankruptcy Code, Aadhaar
Bill and initiatives for ease of doing business etc would help
in solving certain major implementation hurdles and orderly
developments, thereby increasing efficiency. Measures like
Make in India, Skill Development will also aid in creating the
much needed jobs to absorb India’s growing work force.
Reviving the health of Indian banking sector, passage of key
reforms like Goods & Services Tax (GST) and execution of
various key projects would be critical for shaping the growth
in the future.
Scenario for NBFCs
Industry Structure and Developments
NBFCs play a crucial role in the development of Indian
economy by meeting the financing needs of the common
man. Favourable business environment and Government and
Regulatory developmental plays as a boost to NBFC Sector.
Increasing economic development in Tier II and Tier III cities
will lead to an increase in demand for credit, one of the key
growth drivers for NBFCs. The housing stock shortage is
pegged at around 19 million units in urban India. Increase in
demand for housing units driven by nuclearisation of families
will drive up the need for home finance. It is estimated that
currently 40% of the MSME credit demand is met through
informal sources. The growing demand from MSMEs, which
are currently accessing finance from informal sources or are
self-financed, is a huge opportunity for NBFCs to tap into.
NBFCs are today passing through a very crucial phase with
the implementation of revised regulatory framework with the
effective objective to harmonize it with Banks and Financial
Institutions and address regulatory gaps and arbitrage.
Beginning from FY16, the NPA recognition norms for NBFCs
has move from 180 days to 90 days gradually, with 120 days
by end FY17 and 90 days by end FY18. Minimum Tier-I CRAR
requirement move up to 8.50% by end FY16 and 10.00%
by end FY17. Asset financing NBFCs, with minimum assets
of ` 5,000 million, will be covered under the Securitization
and Reconstruction of Financial assets and Enforcement
of Security Interest Act (SARFAESI), which will significantly
improve their ability to force a collateral to recover dues from
defaulting borrowers. Continued reduction in interest rates
lower the borrowing costs for NBFCs
The aggregated balance sheet of the NBFC sector expanded
by 14.2 % on y-o-y basis in March, 2016 as compared to 16.8%
in March, 2015. Loans and Advances increased by 14.2% while
total borrowings increased by 14.5%.
“Large NBFCs are likely to grow at 14% in financial year
2016-17, with SME/MSME growing faster than commercial
vehicles. The overall gross NPA ratio of NBFCs across asset
classes is likely to rise to 7.8% by March 2017, from 6% at endSeptember 2015 and an estimated 6.7% in FY16,” the India
Ratings report said. Keeping this in mind, the NBFC sector
recognizes adequate policy support to meet the growing
financing needs of the economy to support the Digital India
and Make in India initiatives from the Government.
Moderation in incremental delinquencies in the sector will
continue through financial year 2016-17, led by strengthening
of risk management systems of lenders, an economic recovery
and a portfolio mix shift to less volatile asset classes. NBFCs will
continue to gain credit market share at the expense of banks,
as banks dealing with galloping NPAs and cleaning up of their
books by March 31 as directed by RBI, also struggling to raise
capital for a successful transition to the Basel-III regime, which
is forcing them to reduce credit growth.
Opportunities
Extensive distribution
recognition.
reach
and
strong
brand
Opportunity to cross sell services.
NBFCs are allowed deduction for provisions for NPAs
made under Section 36(1) (viia) of the Income Tax Act
upto 5% of their Total Income, akin to Banks from the
financial year 2016-17.
Proposal to allow FDI beyond the 18 Specified NBFC
activities under the automatic route in other activities
which are regulated by financial sector regulators.
Threats
Competition: Though NBFCs like ours are pioneers in scaling
up and popularizing gold loan business, banks which have
significant advantage in terms of cost of funds can scale up
gold loan business by offering it at lower rates than NBFCs. At
the same time, banks have significant disadvantage in terms of
higher operating cost for running this business. Unorganized
sector, for which no data is available on its size, can continue
catering to their niche customers.
Adverse regulatory changes: Though the Reserve Bank of
India and the National Housing Bank have framed adequate
regulations for regulating the sector, any future changes
or stringent measures can adversely affect the growth and
sustainability of this sector.
Fall in collateral value: Though strong risk management
mechanism is in place to meet the eventualities of fall in
collateral value i.e. fall in gold price, which remains at those
levels and simultaneously borrowers losing sentimental
attachment towards the collateral, can pose a threat to our
business.
Risks and Concerns
The Company has put in place a mechanism to minimise
operational risks through effective control systems which
call for constant review and an ongoing internal audit. Our
risk management framework aims to identify the diverse
risks faced by the Company and come up with appropriate
mitigation strategies. Our Internal Audit comprising of In
house Team as well as External Auditors - KPMG, undertake
a comprehensive audit of functional areas, systems, process
and operations at all the branches. Managing the risks arising
in credit, interest rates and liquidity form critical components
of our risk management system. The Company has in place
rigorous norms covering credit process through the Credit
Policy Framework. The Company is committed to fostering a
strong risk management culture across the organization. It is
designed to help reinforce resilience by encouraging a holistic
approach to the management of risk at all levels within
the organization. Employees at all levels are responsible
for the management and escalation of risks. Emphasis is
laid on ensuring that all extant laws and regulations are
fully complied with in “letter & spirit” at all times. An AssetLiability Management model has been developed to measure
and manage interest rate and liquidity risks and these are
thoroughly discussed and reviewed periodically by the Asset
Liability Management Committee and Board.
Demand drivers for 2016-17
India would be the fastest growing major economy in the world,
with IMF pegging the growth at 7.5% for FY17. Favourable
economic conditions would help NBFCs in registering healthy
loan growth. Improving macro-economic indicators and
healthy monsoon would help in restoring the asset quality
for NBFCs, which have been under pressure. Falling interest
rates would benefit NBFCs more than commercial banks, as
the former are largely whole-sale funded, and this would help
drive loan growth, improve interest margins and asset quality.
39
Outlook
After witnessing muted growth for past few years, the NBFC
Sector is poised for strong sector during with the following
favourable factors:
1.
Forecast of above normal monsoons: After two
consecutive years of “below average” monsoons, Indian
Meteorological Department (IMD) predicted “above
normal” monsoon for the year 2016. This is reflected
in slowing sales of rural-centric products like tractors,
motorcycles and FMCG. An “above normal” monsoon
would provide a strong fillip to rural consumption,
resulting in higher growth in rural credit for commercial
vehicles, tractors, gold and SME loans.
2.
Strong fundamental outlook: Falling oil prices and
commodities prices, increasing public capital expenditure
and encouraging government policies & schemes would
supplement credit growth in the system. Initiatives like
“Housing for all”, “Make in India”, “Digital India” and “Startup India” should boost credit demand in the medium
term for banks and NBFCs.
3.
Changing market demographics: Upgradation to 4G
services, the accelerating growth of e-commerce and
digitisation in rural India have led to tremendous demand
in credit from both entrepreneurs and customers. It
would compel NBFCs to innovate with digital products
catering to the new set of customers. Many digital startups offering innovative products (e.g. peer-to-peer
lending) are slowly gaining momentum in India. The
future appears to be exciting as companies would need
to innovate on their business models to counter the new
competition.
Internal Control
Your Company has an Internal Control System which
commensurate with the size, scale and complexity of its
operation. The Internal Audit team monitors and evaluates
the efficacy and adequacy of Internal Control system in
the Company, its compliance with operating systems and
accounting procedures. Based on the report of Internal
Auditor, process owners undertake corrective action in
their respective areas and thereby strengthen the controls.
Significant audit observations, if any and corrective actions
and implementation thereof are presented to the Audit
Committee of the Board.
Human Resources
Your Company considers that Human Resource Development
is vital for effective implementation of its business plan. The
Company makes continuous endeavors for imparting training
to employees through in-house training and specified external
40
training programmes such as training for gold loan valuers
and training in compliance and customer services. During the
year under review, the Company has hired 2,482 employees
and as on March 31, 2016 the number of employees of the
Company is 5,631.
For Segment wise or Product wise performance and discussion
on financial performance, kindly refer the Section on Wide
Spectrum of Offerings and Business Model and Strategic Priorities.
13)DEPOSITS
During the period under review, your company did not accept/
renew any deposit within the meaning of the Section 73 of
Companies Act, 2013 (the Act) read with the Rules framed
under the Act. Further, the Company does not intend to raise
any public deposits in terms of its declaration to the Reserve
Bank of India.
14) INTERNAL FINANCIAL CONTROL
The Company has in place adequate internal controls with
reference to financial statements and operations and the same
are operating effectively. The Internal Auditors tested the
design and effectiveness of the key controls and no material
weaknesses were observed in their examination. Further,
the Statutory Auditors verified the systems and processes
and confirmed that the Internal Financial Controls System
over financial reporting are adequate and such controls are
operating effectively.
15) VIGIL MECHANISM
The Company has established a Vigil Mechanism for its
Directors, employees and stakeholders to report their genuine
concerns or grievances. The said mechanism provides for
adequate safeguard against victimization of person who uses
such mechanism. The Policy on Vigil mechanism has been
uploaded on the website of the Company. The Vigil Mechanism
of the Company is overseen by the Audit Committee.
16) CREDIT RATING
The Secured Non-convertible Debentures of the Company
enjoys the rating of CARE AA/ICRA AA (Stable Outlook)/
Brickwork AA+ (Stable Outlook). The Equity Linked Nonconvertible Debentures of the Company has the rating of
PP MLD (ICRA) AA (Stable Outlook) and the Unsecured Nonconvertible Debentures are rated CRISIL AA- (Stable outlook)/
ICRA AA (Stable Outlook)/CARE AA/Brickwork AA+ (Stable
outlook). The Term Loan Facilities have been rated CARE AA/
ICRA AA (Stable Outlook) & Brickwork AA+ (Stable Outlook).
Further, the Commercial Paper of the Company has the
highest rating of ICRA A1+.
Strong Credit Ratings by leading Rating Agencies reflect the
Company’s prudence and discipline.
17) EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return of
the Company in Form MGT – 9 is provided in Annexure – I to
this Report.
18)MATERIAL CHANGES AND COMMITMENTS AFFECTING
THE FINANCIAL POSITION OF THE COMPANY
There have been no material changes and commitments
affecting the financial position of the Company, which have
occurred during the financial year of the Company to which
the financial statements relate and as at date of this report.
19) CORPORATE GOVERNANCE
The Company has complied with the Corporate Governance
Guidelines for NBFCs issued by the Reserve Bank of India vide
Circular No. DNBR (PD) CC.No.053/03.10.119/2015-16 dated
July 01, 2015. In accordance with the Corporate Governance
Guidelines, the Company has put in place various Committees
and ensures best corporate practices to increase the investors
and other stakeholders confidence. Your Company has
complied with all the norms prescribed by the Reserve Bank
of India (RBI) including the Fair Practices Code, Anti Money
Laundering and Know Your Customer (KYC) guidelines besides
other guidelines.
A summary of the Corporate Governance measures adopted
by the Company are given below:
CEO, Mr. R. Venkataraman – Non-Executive Director and
Ms. Geeta Mathur – Independent Director.
Responsibilities of the Board
i.The key purpose of the Board is to ensure the Company’s
prosperity by collectively directing its affairs, whilst
meeting the appropriate interests of its shareholders and
stakeholders.
ii.
a.
establishing vision, mission & values and
determining, reviewing the goals, policy of the
Company from time to time;
b.
setting strategy and structure and deciding the
means to implement and support them;
c.
delegate to Management, determine monitoring
criteria to be used to ensuring effectiveness of
Internal Controls;
d.
exercising accountability to shareholders and be
responsible to relevant stakeholders; and
e. Management & Control.
i.The Company recognizes its role as a corporate citizen
and endeavors to adopt the best practices and the
highest standards of corporate governance through
transparency in business ethics, accountability to its
Customers, Government and others. The activities of
the Company are carried out in accordance with good
corporate practices and the Company is constantly
striving to better them by adopting the best practices.
The Company believes that good Corporate Governance
practices enable the Management to direct and control
the affairs of the Company in an efficient manner and to
achieve the goal of the Company of maximizing the value
for all its stakeholders.
ii.The Board of Directors along with its Committees provides
leadership and guidance to the Company’s Management
and directs, supervises and controls the activities of the
Company.
iii.
The size of the Board commensurate with the size
and business of the Company. At present, the Board
comprises of 5 Directors viz, Mr. V. K. Chopra- Chairman
(Independent Director), Mr. Nirmal Jain- Whole-time
Director, Ms. Rajashree Nambiar- Executive Director &
The Board is primarily responsible for:
iv.
The Board has constituted various Committees with
specific terms of reference to focus on specific issues
and ensure expedient resolution of diverse matters.
These include the Audit Committee, Nomination and
Remuneration Committee, Stakeholders Relationship
Committee, Asset Liability Management Committee,
Risk Management Committee, Corporate Social
Responsibility Committee, etc. The composition of the
various Committees along with their terms of reference is
as under-
A. Audit Committee
The Audit Committee comprises the following Directors
as its members:
Mr. V. K. Chopra – Chairman (Independent Director)
Ms. Geeta Mathur – Independent Director
Mr. R. Venkataraman – Non-Executive Director.
The Company Secretary of the Company is Secretary
of the Committee. The details of all Related Party
Transactions are periodically placed before the Audit
Committee. During the year, there were no instances
where the Board did not accept the recommendation of
the Audit Committee.
41
The terms of reference of Audit Committee inter alia
includes the following:
a.To oversee the Company’s financial reporting process
and disclosure of its financial information to ensure
that the financial statement is correct, sufficient and
credible;
b.
The
recommendation
for
appointment,
remuneration and terms of appointment of Auditors
of the Company;
c.Review and monitor the auditor’s independence and
performance, and effectiveness of audit process;
d.
Examination of the financial statement and the
auditors’ report thereon;
e.
Approval or any subsequent modification of
transactions of the Company with related parties;
f.
g.Valuation of undertakings or assets of the Company,
wherever it is necessary;
h.Evaluation of Internal Financial Controls and Risk
Management Systems;
i.Monitoring the end use of funds raised through
public offers and related matters.
j.Approval of payment to statutory auditors for any
other services rendered by the statutory auditors;
Scrutiny of inter-corporate loans and investments;
k.Reviewing the findings of any internal investigations
by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal
control systems of a material nature and reporting
the matter to the board;
l.To look into the reasons for substantial defaults in
the payment to the depositors, debenture holders,
shareholders (in case of non-payment of declared
dividends) and creditors;
m. To oversee the functioning of the vigil mechanism;
n.To carry out such other business as may be required
by applicable law or considered appropriate in view
of the general terms of reference and the purpose of
the Audit Committee;
42
The Audit Committee shall have such powers as may
be required under the Companies Act, 2013 and
such other applicable Regulations as may be notified
by Reserve Bank of India from time to time.
During the Financial year 2015-16, the Audit
Committee met four times i.e. on May 6, 2015, July
29, 2015, October 23, 2015, and January 28, 2016.
B. Nomination and Remuneration Committee
The Nomination and Remuneration Committee presently
comprises the following Directors as its member:
Mr. R. Venkataraman – Non Executive Director.
The Company Secretary of the Company acts as a
Secretary of this Committee.
The Remuneration Policy of the Company is available
at the website of the Company at www.iiflfinance.com.
During the year, the Nomination and Remuneration
Committee has approved the grant of Employee Stock
Options (ESOPs) to various employees of the Company
and its Subsidiary. The terms of reference of the
Nomination and Remuneration Committee inter alia
i.
identify persons who are qualified to become
Directors and who may be appointed in Senior
Management and recommend to the Board their
appointment and removal;
ii.
iii.formulate the criteria for determining qualifications,
positive attributes and independence of a Director;
iv. to devise policy on:
carry out evaluation of every Director’s performance;
a.
remuneration including any compensation
related payments of the Directors, Key
Managerial Personnel and other employees
and recommend the same to the Board of the
Company;
b.board diversity laying out an optimum mix of
Executive, Independent and Non-Independent
Directors keeping in mind the needs of the
Company;
v.to carry out such other business as may be required
by applicable law or considered appropriate in view
of the general terms of reference and the purpose of
the Nomination and Remuneration Committee.
mitigate and report business risks with clear lines of
ownership.
During the Financial year 2015-16, the Nomination
and Remuneration Committee met four times i.e.
on May 7, 2015, July 29, 2015, October 23, 2015, and
January 28, 2016.
To drive and co-ordinate risk management process
covering all areas of risk (including operational,
strategic,
financial,
commercial,
regulatory,
reputational etc.).
C. Stakeholders Relationship Committee
The Stakeholders Relationship Committee of the
Company presently comprises the following Directors as
its members
Mr. R. Venkataraman - Chairman (Non-Executive Director)
Mr. Nirmal Jain – Whole-time Director
Ms. Rajashree Nambiar- Executive Director & CEO.
To ensure that the business risk strategy and
management processes comply with applicable
regulatory requirements and corporate governance
principles.
The terms of reference of the Stakeholders Relationship
Committee inter alia includes the following:
i.
Consider and resolve the grievances of security
holders of the company and to take up such other
matters as per the directions of the Board of Directors
of the Company and/ or as required under Laws as
may be applicable to the Company or as may be
voluntarily identified by the Committee for reference
purposes.
ii.
Authorize any individual to sign in response to
stakeholder grievances and do such act, things
or deeds as may be required in order to resolve
grievances; etc.
To ensure that the business risk management
principles and processes are widely understood
across the Company through adequate induction,
training and awareness programmes.
To periodically monitor and review Company’s key
business risks and risk mitigation plans, and advise
the Board of business risks which could materially
impact Company’s delivery of its business plans,
strategy, and reputation, if left untreated.
To monitor external developments in the business
environment which may have an adverse impact on
Company’s risk profile, and make recommendations,
as appropriate.
To sponsor specialist reviews of key risk areas as
appropriate.
During the Financial year 2015-16, the Stakeholder
Relationship Committee met once on October 21,
2015.
To report to the Board on key risks, risk management
performance and the effectiveness of internal
controls.
D. Risk Management Committee
The Risk Management Committee comprises the
following Directors as its members:
Ms. Rajashree Nambiar – Executive Director & CEO.
To constitute operating risk management committee
and delegate such powers to it as may be deemed
necessary.
The objective of the Risk Management Committee is to
oversee the risk management governance structure,
define and review the framework for identification,
assessment, monitoring, mitigation and reporting of
risks. The terms of reference of the Risk Management
E. Asset Liability Management Committee (ALCO):
The Asset Liability Management Committee comprises
the following Directors as its members
Ms. Rajashree Nambiar – Executive Director & CEO.
To ensure there is an embedded, robust process in
place throughout the Company to identify, assess,
The terms of reference of the Asset Liability Management
During the Financial year 2015-16, the Risk Management
Committee met twice i.e. on May 7, 2015 and October 23,
2015.
43
i.Ensuring adherence to the limits set by the Board
as well as for deciding the business strategy of the
NBFC (on the assets and liabilities sides) in line with
the NBFC’s budget and decided risk management
objectives.
ii.Prepare forecasts (simulations) showing the effects
of various possible changes in market conditions
related to the balance sheet and recommend the
action needed to adhere to NBFC’s internal limits.
ii.
Maintain the Company’s CSR policy framework
(e.g. environment, human rights and responsible
business conduct) in line with best practice and the
appropriate international standards and guidelines;
iii.Receive reports and review activities from executive
and specialist groups managing CSR matters across
the Company’s operations.
iv.Consider and propose an Annual Budget for CSR
activities to the Board
iii.Ensure that the NBFC operates within the limits /
parameters set by the Board.
iv.ALCO would also articulate the current interest rate
view of the NBFC and base its decisions for future
business strategy on this view.
v.Measuring and Managing liquidity needs and ensure
NBFC’s ability to meet its liabilities as they become
due, liquidity management can reduce probability of
an adverse situation developing.
vi.
Present to the Board Statement of Assets and
Liabilities.
vii.Update Board on various Assets and securitization of
Mortgage Loans, Commercial Vehicle & Gold Loans.
viii.Recommending Board about the viable source of
finance to cater fund requirements of the Company.
During the Financial year 2015-16, the Asset Liability
Management Committee met four times i.e. on May 7,
2015, July 29, 2015, October 23, 2015 and January 28,
2016.
F.Corporate Social Responsibility Committee
(CSR Committee)
The CSR Committee comprises the following Directors as
its members:
Mr. R. Venkataraman – Chairman (Non-Executive Director)
Ms. Geeta Mathur – Independent Director.
The terms of reference of the CSR Committee inter alia
44
i.
Consider any matters relating to the social,
charitable, community and educational activities,
expenditures and related publications of the
Company and its subsidiary companies (the “Group”)
that it determines to be desirable. In addition, the
CSR Committee shall examine any other matters
referred to it by the Board.
During the Financial year 2015-16, the Corporate Social
Responsibility Committee met thrice i.e. on April 1, 2015,
July 29, 2015 and March 31, 2016.
Besides the aforesaid Committees, the Board of Directors
of the Company has constituted Committees comprising
of Senior Management Persons for day to day operations
of the Company viz. Finance Committee, Group Credit
Committee, etc.
G.Number of Meetings of the Board, etc and
attendance thereat
During the Financial Year 2015-16, the Board of Directors
met 5 times on May 7, 2015, July 29, 2015, October 23,
2015, November 10, 2015 & January 28, 2016. The details
of attendance of members at meetings of the Board is as
under:
Name of Director
Mr. V. K. Chopra
Mr. Nirmal Jain
Mr. R. Venkataraman
Ms. Geeta Mathur*
Mr. Sunil Kaul^
Mr. Nilesh Vikamsey #
Board Meetings
Held Attended
5
5
5
5
5
5
4
3
5
5
4
2
1
1
* Ms. Geeta Mathur was appointed as Independent Director w.e.f.
July 29, 2015.
^ Mr. Sunil Kaul resigned from the Board as Non - Executive Director
w.e.f. January 20, 2016.
# Mr. Nilesh Vikamsey resigned from the Board as an Independent Director
w.e.f. June 17, 2015.
The Chairman of the Audit Committee and the
Nomination & Remuneration Committee had attended
the Annual General Meeting of the Company held on July
29, 2015.
None of the Non-Executive Directors and Independent
Directors had any pecuniary relationships or transactions
with the Company during the year under review apart from
receiving sitting fees for attending Board and Committee
Meeting and commission based remuneration, if any.
Disclosures as required under Circular No. DNBR (PD)
CC.No.053/03.10.119/2015-16 dated July 01, 2015
issued by the Reserve Bank of India forms part of
financial statements of the Company for the year ended
March 31, 2016.
20) RISK MANAGEMENT
The Management of the Company monitors and reports
principal risks and uncertainties that can impact its ability to
achieve its strategic objectives. The Management Systems,
Organizational Structures, Processes, Standards and Code
of Conduct of the Company altogether form the Risk
Management Governance System of the Company.
Your Company’s Management confirms that no significant
and material orders have been passed by the Regulators or
Courts or Tribunals impacting the going concern status and
company’s operation in future in accordance with Rule 8 (5)
(vii) of the Companies (Accounts) Rules, 2014.
21) REGULATORY COMPLIANCE
The Company has complied with all the applicable guidelines
prescribed by the Reserve Bank of India for NBFCs regarding
Accounting Standards, Prudential Norms including Income
Recognition, Capital Adequacy, Guidelines on Corporate
Governance; Fair Practices Code, KYC, AML requirements, etc.
22) ANNUAL EVALUATION OF THE BOARD
Pursuant to the provisions of the Companies Act, 2013, the
performance of the Board, Chairman, Managing Director/
Executive Director, Independent Directors, Non-Executive
Directors and the Committees was carried out. A meeting of
Independent Directors was held during the year under review.
The criteria for performance evaluation inter alia includes
Board effectiveness, quality of discussion contribution at
the meetings, business acumen, strategic thinking, time
commitment, relationship with the stakeholders, corporate
governance practices, contribution of the Committees to the
Board in discharging in its functions, etc.
23) DIRECTORS AND KEY MANAGERIAL PERSONNEL
During the year under review, Mr. Nilesh Vikamsey,
Independent Director and Mr. Sunil Kaul, Non - Executive
Director resigned from the office of Director with effect from
June 17, 2015 and January 20, 2016, respectively.
The Board place on record its sincere appreciation for the
valuable services rendered by Mr. Sunil Kaul and Mr. Nilesh
Vikamsey during their tenure as Directors of the Company
The Board has appointed Ms. Geeta Mathur as Additional
(Independent) Director with effect from July 29, 2015 and
who shall hold office till the forthcoming Annual General
Meeting of the Company. The Company has received a
Notice as per the provision of Section 160 of the Companies
Act, 2013, from the Member of the Company proposing
the candidature of Ms. Geeta Mathur as a Director of
the Company.
In terms of Section 152 of the Companies Act, 2013 and the
Articles of Association of the Company, Mr. Nirmal Jain, Wholetime Director, is liable to retire by rotation at the ensuing
Annual General Meeting of the Company and is eligible for
re-appointment.
Mr. Amit Mehendale, Chief Financial Officer resigned from the
Company with effect from July 29, 2015. Mr. Milind Gandhi,
then Financial Controller of the Company was designated as
Chief Financial Officer with effect from October 23, 2015. Mr.
Jitendra Maheshwari, Company Secretary resigned from the
Company with effect from November 10, 2015 and Ms. Preeti
Chhabria was appointed as Company Secretary with effect
from January 28, 2016.
The Board place on record its sincere appreciation for the
valuable services rendered by Mr. Amit Mehedale and Mr.
Jitendra Maheshwari during their tenure as a Key Managerial
Personnel of the Company.
24)AUDITORS
M/s. Sharp and Tannan Associates, Chartered Accountants
have been the Statutory Auditors of the Company since
inception. They are eligible for re-appointment pursuant
to Section 139(2) of the Companies Act, 2013 (the Act) and
have given their necessary consent and certificate pursuant
to the provisions of the Sections 139(1) and 141 of the Act
and the Rules framed thereunder for their reappointment
as the statutory auditors for the term permissible under the
Companies Act, 2013.
Accordingly, the Board of Directors of the Company
recommend the appointment of M/s. Sharp and Tannan
Associates, Chartered Accountants (ICAI Registration No.
109983W), as the Statutory Auditors of the Company from the
conclusion of forthcoming Annual General Meeting (“AGM”)
till the conclusion of the next AGM, subject to the approval of
the members in the forthcoming AGM.
45
25) SECRETARIAL AUDIT
The Secretarial Audit for the financial year 2015-16 was
conducted by M/s. M Siroya and Company, Practicing Company
Secretaries (ICSI Registration No: 4157), in accordance with
the provisions of Section 204 of the Companies Act, 2013.
The Secretarial Audit Report is provided in Annexure VI to
this Report. The Secretarial Audit Report does not contain any
qualifications or reservation or adverse remarks and is self
explanatory.
26) DIRECTORS’ RESPONSIBILITY STATEMENT:
The Board acknowledges its responsibility for ensuring
compliance with the provisions of Section 134 (3) (c) read with
Section 134(5) of the Companies Act, 2013 in the preparation
of the annual accounts for the year ended as on March 31,
2016 and state that:
a.In the preparation of the annual accounts, the applicable
accounting standards had been followed along with
proper explanation relating to material departures;
b.The directors had selected such accounting policies and
applied them consistently and made judgments and
estimates that are reasonable and prudent so as to give a
true and fair view of the state of affairs of the company at
the end of the financial year and of the profit and loss of
the company for that period;
c.The directors had taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of Companies Act, 2013
for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities;
d.The directors had prepared the annual accounts on a
going concern basis;
e.The directors had laid down internal financial controls
to be followed by the company and that such internal
financial controls are adequate and were operating
effectively; and
Company and further the Board is also of the opinion that the
Independent Directors fulfill all the conditions specified in the
Companies Act, 2013 making them eligible to act as such.
28) AUDITORS REPORT
The Audit Report as issued by M/s. Sharp and Tannan
Associates, Chartered Accountants, Statutory Auditors of
the Company forming part of financial statements of the
Company does not contain any qualifications or reservation
or adverse remarks and is self explanatory.
29) PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
Particulars of loans given, investments made, guarantees given
and securities provided are disclosed in Notes to Accounts of
the financial statements for the year ended March 31, 2016.
30)
PARTICULARS OF CONTRACTS OR ARRANGEMENTS
WITH RELATED PARTIES
All Related Party Transactions that were entered during the
financial year were in ordinary course of the business of the
Company and were at arm’s length. No contract/ arrangement
have been entered by the Company with its Promoters,
Directors, Key Managerial Personnel or other persons which
may have a potential conflict with the interest of the Company.
Since all Related Party Transactions entered into by the
Company were in the ordinary course of business and were
on an arm’s length basis, Form AOC-2 is not applicable to the
Company. The transactions with related party are disclosed
in notes to accounts in the standalone financial results of the
Company for the year ended March 31, 2016.
31)
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Conservation of energy
The Company is engaged in providing finance and as
such its operations do not account for substantial energy
consumption. However, the Company is taking all possible
measures to conserve energy. Some of the environment
friendly measures adopted by the Company are as under:
f.
The directors had devised proper systems to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.
Installed Thin Film Transistor (TFT) monitors that saves
power,
Light Emitting Diode (LED) lights,
27)
STATEMENT OF DECLARATION BY INDEPENDENT
DIRECTORS
In terms of provisions of sub-section (7) of Section 149 of the
Companies Act, 2013, the Company has received declaration by
Independent Directors stating and confirming that they are not
disqualified to act as Independent Directors on the Board of the
Automatic power shutdown of idle monitors,
Creating environmental awareness by way of distributing
the information in electronic form,
46
Installation of capacitors to save power,
Education and awareness programs for employees; etc
The Management frequently puts circulars on corporate
intranet, IWIN for the employees educating them on ways and
means to conserve the electricity and other natural resources
and ensures strict compliance of the same.
Technology
The Company has adopted best practices for digitisation of
its business processes and has embraced the principle for
Social, Mobility, Analytics, and Cloud (SMAC) to offer superior
customer experience. The Company is actively evaluating
and implementing open source operating systems, Bring
Your Own Device (BYOD), and Google Apps for workplace to
boost employee productivity, while reducing the operational
costs for technology infrastructure. The Company follows the
hybrid cloud model to improve uptimes, cost efficiency, agility,
and manage costs through usage of infrastructure as per
business cycles and needs. The management of centralised and
distributed technology infrastructure is outsourced to reputed
vendors, enabling the internal technology team to focus on
delivery of new products, services, and functionality to our
customers anywhere, anytime, and on devices of their choice.
Three specific areas in which the Company has focused
includes Customer On-boarding, Disbursements and
Servicing.
For Customer on-boarding, the Company is building
capabilities to take on-boarding to the customer’s doorsteps
digitally using customized application and services on
Tablets. eKYC – With more than 100 Crores Aadhaar holders
in the country, it is an important channel for delivery of
services to customers. The Company is in the advanced stages
of implementing Aadhaar based eKYC process for all our
business and process streams
The Company has built robust automated decision platforms
which are backed by advanced analytics to provide Instant
decision to customers application. The automated scorecard
captures all the relevant customer parameters to provide
instant outcome for customers. This not only reduces the
time and interactions but also provides improved services
to customers. Use of prepaid card based loan disbursements
was launched for Gold Loan business in Oct’15. Till Mar’16, we
have disbursed close to 6,000 card amounting to ₹ 11.2 crores
for Gold Loan business.
“IIFL Loans” Mobile Application - IIFL Loans mobile application
was launched in Jan’16 and in very short time we have
witnessed good uptake and usage by customers. By Mar’16,
IIFL loans active users has crossed 10,000 and has been
growing steadily ever since.
Foreign Exchange Earning and Outgo
During the year under review, the details of Foreign Exchange
Earnings and Outgo of the Company are as under
Foreign Earnings – Nil
Foreign Outgo – Nil
32) EMPLOYEE REMUNERATION
Disclosures pertaining to remuneration and other details as
required under Section 197(12) of the Act read with rule 5(1) of
the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014 are provided in Annexure – V.
Further a statement showing the names and other particulars
of the employees drawing remuneration in excess of the
limits as set out in the rules 5(2) and 5(3) of the aforesaid rules
forms part of this report. However, in terms of first proviso
to Section 136(1) of the Act, the annual report and accounts
are being sent to members and others entitled thereto,
excluding the aforesaid information. The said information
is available for inspection by the members at the registered
office of the Company during business hours on working
days upto the date of the ensuing Annual General Meeting.
If any member is interested in obtaining a copy thereof, such
member may write to the Company Secretary, whereupon a
copy would be send.
33)
DISCLOSURES UNDER SEXUAL HARASSMENT OF
WOMEN AT WORKPLACE (PREVENTION, PROHIBITION &
REDRESSAL) ACT 2013:
The Company is committed to provide and promote a safe
and healthy work environment for all its employees. The
Company has zero tolerance towards a sexual harassment at
the workplace. The Company has put in place the mechanism
for the redressal and resolution of complaints under its
Policy of prevention of sexual harassment. The following are
the details of workplace sexual harassment complaints in
India, reported as per the Sexual Harassment of Women at
Workplace (Prevention, Prohibition & Redressal) Act 2013 and
Ministry of Women and Child Development Notification dated
December 19, 2013:
Workplace Sexual Harassment
complaints received
Number of complaints received
Number of complains disposed off
Number of complains pending
Manner in which the complaints
were disposed off
FY 2015-16
9
9
Nil
In accordance with the Policy
of the Company and after
due inquiry / investigations,
necessary actions were taken
and dispensed off.
47
34) DOWNSTREAM INVESTMENTS
During the year under review, the Company has not made any downstream investments in terms of Circular 1/2014 of Foreign Direct
Investment Policy.
35) IIFL EMPLOYEE STOCK OPTION PLAN (ESOP) PLAN 2015
In order to develop and implement a long term Incentive Program to effectively attract, motivate and retain the best talent from the
industry in a competitive environment, the Company has implemented IIFL ESOP PLAN 2015. The following disclosures are being
made under Rule 12 of the Companies (Share Capital and Debentures) Rules, 2014:
Sr.
No
1
2
3
4
5
6
7
8
9
10
(i)
Particulars (up to March 31, 2016)
Options Granted
Options Vested
Options Exercised
Total number of shares arising out of exercise of options
Options Lapsed
Exercise price
Money realized by exercise of options
Variation in terms of Options
Total number of Options in force
Employee wise details of Options granted to:
Key Managerial Personnel
Ms. Rajashree Nambiar – Executive Director & CEO
Mr. Milind Gandhi – Chief Financial Officer
(ii) Any other employee who receives grant of options in any one year of option amounting to 5% or more of options
granted during the yearMs. Rajashree Nambiar – Executive Director & CEO
Mr. Monu Ratra – CEO of India Infoline Housing Finance Limited, subsidiary of the Company
(iii) Identified employees who were granted option during any one year equal to or exceeding 1% of the issued capital
(excluding outstanding warrants and conversions) of the Company at the time of grant.
36)ANNEXURE FORMING PART OF THIS REPORT OF
DIRECTORS
The Annexure referred to in this Report and other information
which are required to be disclosed are annexed herewith and
form a part of this Report of the Directors:
a. Extracts of Annual Return in Form MGT-9 - Annexure I.
b.Declaration from Executive Director & CEO for compliance
with regards to Code of Conduct - Annexure II.
c.
Annual Report on Corporate Social Responsibility Annexure III.
d. Nomination and Remuneration Policy - Annexure IV.
e.Ratio of remuneration to median employees remuneration
as per Section 197 (12) of Companies Act, 2013 read with Rule
5(1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014- Annexure V.
48
f.
Secretarial Audit Report - Annexure VI
IIFL ESOP
PLAN 2015
780,040
Nil
Nil
Nil
Nil
NA
NA
NA
11,857,701
180,700
15,400
180,700
120,500
Nil
37)ACKNOWLEDGEMENTS
The Board of Directors wish to place on record its appreciation
for the continued support and co-operation extended by the
Reserve Bank of India, other Government Authorities, Banks,
Financial Institutions, Shareholders and other Stakeholders
viz. Debentureholders, Intermediaries and Business Associates
for their continued support.
Your Directors would also like to take this opportunity to
express their appreciation for the dedicated efforts of the
employees of the Company, resulting in significant milestones
achieved during the year.
For and on behalf of the Board of Directors
Place: Mumbai
Date: May 04, 2016
V. K. Chopra
Chairman (Independent Director)
DIN: 02103940
Annexure I
Extract of Annual Return as provided under section 92 (3) of Companies Act, 2013
The Extract of Annual Return as specified in form MGT-9 under Section 92 (3) of Companies Act, 2013 read with Rule 12 (1) of the
Companies (Management and Administration) Rules, 2014 is as under:
I.
REGISTRATION AND OTHER DETAILS
1
2
3
CIN
Registration Date
Name of the Company
4
Category/ Sub Category of the Company
5
Address of the Registered office of the Company
6
7
Whether Listed / Unlisted
Name, Address and contact details of Registrar and Transfer Agent
U67120MH2004PLC147365
07/07/2004
Category- Company Limited by Shares and sub category Indian Non-Government Company.
12A-10, 13th floor, Parinee Crescenzo, G Block, C-38 & 39,
Bandra Kurla Complex, Bandra- East, Mumbai- 400051
Listed Company (Debt Securities)
Link Intime India Private Limited
C-13, Pannalal Silk Mills Compound,
LBS Marg, Bhandup (W), Mumbai - 400 078
Tel: +91 22 2596 3838
Fax: +91 22 2594 6969
E-mail : [email protected]
Website: www.linkintime.co.in
II.
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the Total turnover of the Company are as below:
Sr. No Name and Description of main products/ services
1
Other Credit Granting
NIC code of the product/ Service
6492
% to total turnover of the Company
100%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sr.
No
1
Name and Address
of the Company
IIFL Holdings Limited
2
India Infoline Housing
Finance Limited (IIHFL)
L74999MH1995PLC093797
Holding/ Subsidiary/
Associate Company
Holding Company*
U65993MH2006PLC166475
Subsidiary Company** 100% Equity shares
CIN/ GIN
% of
Shares held
100% Equity shares
Applicable
Section
Section 2 (87) of
Companies Act, 2013
Section 2 (87) of
Companies Act, 2013
* D
uring the year under review, IIFL Holdings Limited, the Holding Company of the Company has acquired 26,86,481 equity shares of the Company from Benett Coleman
Limited and consequent to which, the Company has become a wholly owned Subsidiary of IIFL Holdings Limited.
** D
uring the year, the Company has acquired 110,000,000 - 6% Compulsorily Convertible Redeemable Preference Shares of ₹ 10/- each (CRPS) of IIHFL and consequent
to which, IIHFL has become a wholly owned Subsidiary of the Company. Further, the Company exercised the conversion of 135,000,000 CRPS held by it in IIHFL into
Equity Shares of ₹ 10/- and the same has been converted at fair value certified by the Chartered Accountant.
49
50
2,686,481
-
-
2,686,481
2,686,481
- 237,154,030
-
-
-
-
-
1.13%
1.13%
100.00% 23,7154,030
-
-
1.13%
-
-
98.87% 237,154,030
- 234,467,549
-
98.87% 237,154,030
98.87% 237,154,030
Demat
Total
-
-
-
-
- 237,154,030
-
-
-
-
- 237,154,030
- 237,154,030
- 237,154,030
-
Physical
No. of Shares held at the end of the year
234,467,549
234,467,549
-
No. of Shares held at the begging of the year
% of Total
Demat
Physical
Total
Shares
A.Promoters
1) Indian
a. Individual/ HUF
b. Central Govt/ State Govt
c. Body Corporate
234,467,549
d. Banks/ FIS
e. Any other
Sub Total (A) (1)
234,467,549
2) Foreign
a. NRI- Individuals
b. Other Individuals
c. Body Corporate
d. Bank/ FI
e. Any Other
Sub Total (A) (2)
Total Shareholding of Promoter (A) = (A)(1) +(A) (2) 234,467,549
B. Public Shareholding
1) Institutions
a. Mutual funds
b. Banks/ FI
c. Central Govt/ State Govt
d. Venture Capital Funds
e. Insurance Companies
f. FIIS
g. Foreign Venture Capital funds
h. Others (Specify)
Sub- Total (B) (1)
2) Non-Institutions
a. Bodies Corporates
(i) Indian
2,686,481
(ii) Overseas
b. Individuals
(i)
Individuals holding nominal share capital
up to ₹ 1 Lakh
(ii)
Individual holding nominal share capital
in excess of ₹ 1 Lakh
c. Others
Sub Total (B) (2)
2,686,481
Total Public Shareholding (B) = (B) (1) + (B) (2)
2,686,481
C. Shares held by Custodian for GDR’s and ADR’s
Grand Total (A+B+C)
237,154,030
Category of Shareholder
IV. SHAREHOLDING PATTERN (EQUITY SHARE CAPITAL BREAK UP AS PERCENTAGE OF TOTAL EQUITY)
i. Category- wise Shareholding
100.00%
-
-
-
-
100%
100%
100%
% of Total
Shares
1.13%
1.13%
-
-
-
1.13%
-
-
1.13%
1.13%
1.13%
% of Change
during the
year
ii. Shareholding of Promoters:
Sr.
No
Shareholders name
1
Shareholding at the beginning of the year
No. of Shares
% of Total
% of Shares
Shares of the
Pledged/
Company encumbered
to total shares
234467549
98.87%
-
Shareholding at the end of the year
% Change in
No. of Shares
% of Total
% of Shares shareholding
during the
Shares of the
Pledged/
year
Company encumbered to
total shares
237,154,030
100%
-
1.13%
iii Change in Promoters’ Shareholding :
Sr.
No
Particulars
1.
2.
3.
At the beginning of the year
Add: Increase in shareholding on 30-Mar-2016 (Transfer)
At the End of the year
Shareholding during
the year
% of total
No. of shares shares of the
company
234,467,549
98.87%
2,686,481
1.13%
237,154,030
100%
Cumulative Shareholding
during the year
% of total
No. of shares
shares of the
company
23,44,67,549
98.87%
237,154,030
100%
237,154,030
100%
iv.Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
IIFL Holdings Limited holds the 100% equity share capital of the Company.
v. Shareholding of Directors and Key Managerial Personnel:
Name of Director/ KMP
Shareholding at the beginning
of the year
% of total
No. of Shares
shares of the
Company
Add: Increase in shareholding
At the End of the year
Cumulative Shareholding
during the year
% of total
No. of Shares
shares of the
Company
NIL
*The following Directors of the Company holds Equity Shares of the Company as Nominees of IIFL Holdings Limited and the details of their holding as Nominees are as under:
Sr. No
1
2
3
No. of Equity Shares
4,950
5,000
10
9,960
Name of Shareholder
Mr. Nirmal Bhanwarlal Jain- Whole-time Director
Mr. Venkataraman Rajamani- Director
Ms. Rajashree Nambiar – Executive Director & CEO
Total
% of Equity shares
0.00%
0.00%
0.00%
0.00%
V.INDEBTEDNESS
Indebtedness of the Company including interest outstanding/ accrued but not due for payment
Particulars
Indebtedness at the beginning of the financial year
i. Principal Amount
ii. Interest Due but not paid
iii. Interest Accrued but not due
Total (i+ii+iii)
Change in Indebtedness during the financial year
Addition
Deduction
*Net Change
(` in Million)
Total
Indebtedness
Secured Loans
excluding deposits
Unsecured
Loans
Deposits
85,734.16
NIL
1643.58
87,377.74
34,770.91
NIL
681.06
35,451.97
NIL
NIL
Nil
Nil
120,505.07
NIL
2324.64
122,829.71
12,732.00
22,592.85
-9,860.85
199,650.00
204,550.00
-4,900.00
NIL
NIL
NIL
212,382.00
227,142.85
-14,760.85
51
Particulars
Indebtedness at the end of the financial year
i. Principal Amount
ii. Interest Due but not paid
iii. Interest Accrued but not due
Total (i+ii+iii)
Secured Loans
excluding deposits
Unsecured
Loans
Deposits
75,873.31
Nil
2,369.71
78,243.02
29,870.91
Nil
848.84
30,719.75
NIL
Nil
Nil
Nil
(` in Million)
Total
Indebtedness
1,05,744.23
Nil
3218.55
108,962.78
*Net change represents the principal amount of borrowing
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole Time Director and/ or Manager:
Name of MD/ WTD/ Manager
Mr. Nirmal Jain
Ms. Rajashree
Nambiar
Sr. No Particulars of Remuneration
1
2
3
4
5
Gross Salary Salary as per provisions contained in Section 17 (1) of Income Tax
Act, 1961
Value of Perquisites u/s 17 (2) of Income Tax Act, 1961
Profit in lieu of salary under Section 17 (3) of Income Tax Act, 1961
Stock Option
Sweat Equity
Commission
-as % of Profit
- Others, specify
Others, please specify
Total (A)
Ceiling as per the Act.
34,770,000
26,478,694
61,248,694
-
-
-
-
-
-
21,600
21,600
34,791,600
26,478,694
61,270,294
₹ 415,079,014 being 10% of net profit computed as per
provision of Section 198 of Companies Act, 2013.
Mr. Nirmal Jain, Chairman & Executive Director of IIFL Holdings Limited, Holding Company has not drawn any remuneration from the Holding Company.
B. Remuneration to other Directors:
1
2
52
Independent Directors
Fees for attending Board/ Committee Meeting
Commission
Others, pls specify
Total (1)
Other Non- Executive Director
Fees for attending Board Committee Meeting
Commission
Others, please specify
Total (2)
Total B (1+2)
Total Managerial Remuneration
Overall ceiling as per the Act.
Total Amount
(in ₹)
Name of Directors
Sr. no Particulars of Remuneration
Mr. Nilesh
Vikamsey
200,000
200,000
Mr. Sunil Kaul
Nil
Nil
Nil
Nil
200,000
Total
Amount (in ₹)
Mr. V. K. Chopra Ms. Geeta Mathur
1,190,000
1,000,000
2,190,000
2,190,000
810,000
-
2,200,000
1,000,000
810,000
3,200,000
Mr. R. Venkataraman
Nil
Nil
Nil
Nil
810,000
3,200,000
1)₹ 41,507,901/- being 1% of net profit computed as per provision of
Section 198 of Companies Act, 2013 w.r.t commission paid to NonExecutive Directors.
2)Overall ceiling is ₹ 456,586,915 i.e. 11% of net profit computed as per
provision of Section 198 of Companies Act,2013
C. Remuneration to Key Managerial Personnel Other than MD/Manager/WTD: (Amount in ₹)
Sr.
No
1
2
3
4
5
Mr. Jitendra
Ms. Preeti
Mr. Amit
Mr. Milind
Maheshwari
Chhabria##
Mehendale –
Gandhi^^ CFO
- Company
Company
CFO^
Secretary#
Secretary
Particulars of Remuneration
Gross Salary
(a)Salary as per provisions contained in Section 17 (1)
of Income Tax Act, 1961
(b) Value of Perquisites u/s 17 (2) of Income Tax Act, 1961
(c)Profits in lieu of salary under section 17 (3) of
Income Tax Act, 1961
Stock Option
Sweat Equity
Commission -as a profit
Others
Total
Total
2,408,384
1,826,868
1,013,429
447,023
5,695,704
2,408,384
1,826,868
75,000
1,088,429
2,00,000
647,023
2,75,000
5,970,704
^ Mr. Amit Mehendale ceased to be Chief Financial Officer with effect from July 29, 2015. Accordingly remuneration drawn by him from the period April 1, 2015 to July 29,
2015 is disclosed above.
^^ Mr. Milind Gandhi, joined as Financial Controller was designated by Board as Chief Financial Officer of the Company with effect from October 23, 2015.
#Mr. Jitendra Maheshwari resigned as the Company Secretary of the Company w.e.f. November 10, 2015 and accordingly his remuneration from the period April 1, 2015
to November 10, 2015 is disclosed above.
##Ms. Preeti Chhabria was appointed as Company Secretary of the Company with effect from January 28, 2016 (Board approval date) and joining date (January 11, 2016)
and accordingly her remuneration from January 11, 2016 to March 31, 2016 is disclosed above.
D. Penalties/ punishment/ Compounding of offences:
Type
A.Company
Penalty
Punishment
Compounding
B. Directors
Penalty
Punishment
Penalty
C. Other officers in Default
Penalty
Punishment
Compounding
Section of the
Companies Act
Brief Description
Details of penalty/ Authority [RD/ NCLT/
punishment/ Comp
Court]
Appeal Made, if any
Nil
For India Infoline Finance Limited
Place: Mumbai
Date: May 04, 2016
V. K. Chopra
DIN: 02103940
53
Annexure II
Compliance with the Code of Conduct
Executive Director and CEO Certification
I confirm that all the Directors, Key Managerial Personnel and members of the Senior Management have affirmed compliance with the
Code of Conduct of India Infoline Finance Limited.
Rajashree Nambiar
DIN: 06932632
Date: May 04, 2016
Place: Mumbai
54
Annexure III
Annual Report on CSR Activities
[Pursuant to sub-section (3) of Section 135 of the Act and Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014 and as amended]
1. OUTLINE OF CSR POLICY
The CSR Policy and projects of India Infoline Finance Limited are steered by the same values that guide the business of the IIFL Group
of Companies. It can be summarized in one acronym – GIFTS, which stands for:
Growth
Integrity
Fairness
Transparency
Service Orientation
By applying these values to the CSR projects, India Infoline Finance Limited aims to undertake initiatives that create sustainable
growth and empowers underprivileged sections of society.
The focus areas prioritized by India Infoline Finance Limited in its CSR strategy are given below:
Rural Development & Poverty Alleviation
Women Empowerment
Healthcare
Education & Vocational Education
The CSR Policy adopted by IIFL Group of companies is available on http://www.indiainfoline.com/aboutus/iifl-csr-policy
2. COMPOSITION OF THE CORPORATE SOCIAL RESPONSIBILITY COMMITTEE (CSR COMMITTEE)
The Board of Directors of India Infoline Finance Limited has constituted CSR Committee that fulfills the requirements of Section 135
of the Companies Act, 2013 (hereafter referred to as Section 135). The CSR Committee comprises of following members:
Mr. R. Venkataraman – Chairman (Non- Executive Director)
Mr. Nirmal Jain - Whole Time Director
Ms. Geeta Mathur - Independent Director
3. AVERAGE NET PROFIT OF THE COMPANY FOR LAST 3 FINANCIAL YEARS
The average net profit of India Infoline Finance Limited for 3 financial years is ` 2,976,034,078/4. PRESCRIBED CSR SPEND OF INDIA INFOLINE FINANCE LIMITED
The recommended CSR expenditure for India Infoline Finance Limited as per Section 135 for the financial year 2015-16 was
` 5,95,20,682/5.
DETAILS OF CSR SPENT DURING THE FINANCIAL YEAR 2015-16
a. Total amount to be spent for the FY 2015-16 - ` 5,95,20,682/b. Amount unspent, if any –Nil
c. Manner in which the amount spent during the FY 2015-16 is detailed below:
55
During financial year 2015-16, India Infoline Finance Limited has spent ` 59,520,850/- on CSR Projects i.e. complete 2% of its profit.
The breakdown of the manner in which this expenditure was made has been depicted in the table as under:Sr. CSR Projects/ Activity
No identified
Projects or
Programs (1)
Local area or
other (2) Specify
the State and
district where
projects or
programs was
undertaken
Amount
Outlay
(Budget)
Projects or
Programs
wise
Cluster Development for
Total Transformation of Tribal
Villages
Supporting the establishment
of a centre learning for higher
education
Rural Development Taluka Jawhar;
& Poverty Alleviation District Palghar;
Maharashtra
Promotion of
Gurgaon;
Education
Haryana
26,500,000/-
3
Supporting Vocational
Training of youths & Women
4
Supporting for enhancing agri
based livelihood skills
5
Supporting Setting up of a
Women’s Development Centre
6
Supporting Skilling of women
to facilitate income generation
opportunities
7
Supporting Eye check up
camp and surgeries in Jawhar
Promotion of
Employment
Enhancing
Vocational Skills
Promotion of
training & skills
in agri based
livelihoods
Promotion of
Gender Equality
& Empowering
Women
Promotion of
employment
enhancing
vocational skills for
women
Promotion of
Preventive Health
1
2
8
9
10
11
Sector in which
the project is
covered
Amount
Spent on the
Projects or
programs
Sub-heads:
Direct
expenditure
on projects
or programs
Overheads
Direct 26,500,000/-
Cumulative
Expenditure
upto
Reporting
Period
Amount Spent
Direct or through
Implementing
Agency
12,500,000
Direct12,500,000
Rajsamand;
Rajasthan
1,681,250
Direct 1,681,250
26,500,000/- 26,500,000/- Through
Bosco Samajik Vikas
Sanstha
12,500,000/- 1,25,00,000/-Through
International
Foundation for
Research & Education
1,681,250 16,81,250 Through
Yuva Parivartan
Jawhar; District
Palghar;
Maharashtra
2,756,325
Direct
2,756,325
27,56,325 27,56,325 Through
Yuva Parivartan
Kankroli,
Rajasamand
District;
Rajasthan
Village Pai,
Girwa Block,
District Udaipur,
Rajasthan
2,500,000
Direct
2,500,000
2,500,000 2,500,000 Through
Rajsamand Jan Vikas
Sanstha
300,000
Direct
300,000
1,200,000
Direct
1,200,000
10,000,000
Direct
10,000,000
Direct
1,500,000
Jawhar, District
Palghar;
Maharashtra
Supporting IIMA for
Promotion of
Ahmedabad,
infrastructure development
Education
Gujarat
Supporting Financial Inclusion Promoting activities Ahmedabad,
to support financial Gujarat
inclusion
Supporting Libraries in Tribal Promoting
Jawhar, District
School
Education
Palghar
Maharashtra
Supporting initiatives of
Women
Jawhar District
Indiainfoline Foundation
Empowerment
Palghar;
Maharashtra
1,500,000
300,000 300,000 Through
Vanbandhu Sewa
Sanstha
1,200,000 1,200,000 Through
Chaitanya Sewa Trust
10,000,000 10,000,000 Through
IIMA
1,500,000 1,500,000 Through
CIIE, IIMA
500,000
Direct
500,000
500,000 500,000 Through
Pratham Books
15,000
Direct
15,000
83,275 15,000 Through
Indiainfoline
Foundation
6. REASONS FOR UNSPENT AMOUNT
Not Applicable
7. OTHER ACTIVITIES FROM THE IIFL GROUP
a)Building Check dams and other rain water harvesting structures in drought prone Jawhar: IIFL foundation has vowed to make
the tribal areas of Jawhar taluka, Palghar District of Maharashtra drought free. Water scarcity in Jawhar is stark and not only is
access to drinking water a challenge and women have to travel large distances to fetch water but lack of water throughout the
year has also resulted in large scale migration of farmers after the paddy season. In 2015 - 16, IIFL constructed 2 big check dams
and over 50 other rain water harvesting structures. The impact was immediate and direct as not only the ground water table
56
rose substantially in these areas but importantly over 40
farmers did not have to migrate for the first time in their life
and are growing flowers and vegetables throughout the
year. Needless to say this is positively impacting the rural
local economy sustainably making the change visible. IIFL
has vowed to make Jawhar drought free and will take big
steps in this direction in coming years.
b)Swachh Bharat Abiyaan (open defecation free villages):
IIFL group undertook an ambitious project of installing
100 toilets in 32 hamlets of Walvanda, Shiroshi &
Kasatwadi villages in Jawhar. Currently there is 100%
open defecation and this initiative would completely
eradicate open defecation and support in the national
agenda of Swachh Bharat Abhiyaan.
c)
Financial Services Hackathon: IIFL being one of the
leading companies in the financial services space has a
moral obligation of supporting not only financial literacy
programs but importantly start ups that can propel large
scale financial inclusion. IIFL in association with the CIIE
(Centre for Innovation & Incubation) at IIMA hosted a one
of its kind financial services business plan competition of
which the top three ideas would be incubated at IIMA.
d)Health Interventions: The IIFL Group of Companies has
undertaken various projects to provide the rural poor
access to healthcare services. Amongst various measures,
free health check-up camps were conducted in rural areas
of Pandharpur, Maharashtra, Barsana, UP and Jawhar,
Maharashtra. Over 2 lakh people were checked and
screened in these camps while over 15,000 eye surgeries
were performed. IIFL also supported a Cancer screening
camp for the rural poor in Karnataka where over 100,000
people got themselves checked.
8. RESPONSIBILITY STATEMENT OF THE CSR COMMITTEE
Through this Report, India Infoline Finance Limited seeks to
communicate its commitment towards CSR to the Ministry
of Corporate Affairs. The implementation and monitoring
of the CSR Policy is in compliance with the CSR objectives
and policies as laid down in this Report. The Board of the
Company and the CSR Committee is responsible for the
integrity and the objectivity of all the information provided in
the disclosure above. All projects reported have been selected
based on careful evaluation of the extent to which they create
sustainable positive outcomes for marginalized segments of
society. The Company has adopted measures to ensure that
these projects are implemented in an effective and efficient
manner so that they are able to deliver maximum potential
impact. In line with the requirements of the Section 135, the
Company has also established a monitoring mechanism to
track the progress of its CSR projects.
Place: Mumbai
Date: May 04, 2016
R. Venkataraman
Chairman - CSR Committee
DIN No: 00011919
Rajashree Nambiar
DIN No: 06932632
57
Annexure IV
NOMINATION AND REMUNERATION POLICY
I.OBJECTIVE:
This policy on nomination and remuneration of Directors,
Key Managerial Personnel and Senior Management has been
approved by the Nomination and Remuneration Committee
(NRC) and Board of Directors.
II. DEFINITIONS :
1.“Act” means the Companies Act, 2013 and Rules framed
there under, as amended from time to time.
4.
“Senior Management” means the personnel of the
Company who are members of its Core Management
Team excluding Board of Directors comprising all
members of Management one level below the Executive
Directors, including the Functional Heads.
Unless the context otherwise requires, words and
expressions used in this Policy and not defined herein but
defined in the Companies Act, 2013 / Listing Agreement
(wherever applicable), as may be amended from time
to time shall have the meaning respectively assigned to
them therein.
III. ROLE OF NRC :
identify persons who are qualified to become Directors
and who may be appointed in Senior Management and
recommend to the Board their appointment and/or
removal;
formulate the criteria for determining qualifications,
positive attributes and independence of a Director;
carry out evaluation of every Director’s performance;
to devise Policy on remuneration including any
compensation and related payments of the Directors,
Key Managerial Personnel and other employees and
recommend the same to the Board of the Company;
To carry out such other business as may be delegated by
the Board from time to time or required by applicable law
58
IV.APPOINTMENT AND REMOVAL OF DIRECTOR, KMP AND
SENIOR MANAGEMENT
1. Appointment Criteria and Qualifications
a)A person being appointed as Director, KMP or in
Senior Management should possess adequate
qualification, expertise and experience for the
position he / she is considered for appointment.
2. “Board” means Board of Directors of the Company.
3. “Key Managerial Personnel” (KMP) means:
Managing Director, or Chief Executive Officer or
Manager
Whole-time Director;
Chief Financial Officer;
Company Secretary; and such other officer as may be
prescribed.
or considered appropriate in view of the general terms of
reference and the purpose of the NRC.
b) Independent Director :
(i) Qualifications of Independent Director:
An Independent director shall possess
appropriate skills, experience and knowledge
in one or more fields of Finance, Law,
Management, Sales, Marketing, Administration,
Research, Corporate Governance, Operations or
other disciplines related to the business of the
Company.
(ii) Positive attributes of Independent Directors:
An independent director shall be a person of
integrity, who possesses relevant expertise
and experience and who shall uphold ethical
standards of integrity and probity; act
objectively and constructively; exercise his
responsibilities in a bona-fide manner in the
interest of the company; devote sufficient time
and attention to his professional obligations for
informed and balanced decision making; and
assist the company in implementing the best
corporate governance practices.
2.Removal:
Due to reasons for any disqualification mentioned in
the Act or under any other applicable Act, rules and
regulations , NRC may recommend, to the Board with
reasons recorded in writing, removal of a Director, KMP
or Senior Management subject to the provisions and
compliance of the Act, rules and regulations.
3.Retirement
The Director, KMP and Senior Management shall retire as
per the applicable provisions of the Act and the prevailing
Policy of the Company. The Board will have the discretion
to retain the Director, KMP, Senior Management in the
same position/ remuneration or otherwise even after
attaining the retirement age, for the benefit of the
Company.
V.REMUNERATION:
A.Directors:
a.Executive Directors (Managing Director, Manager or
Whole-time Director):
i.At the time of appointment or re-appointment,
the Executive Directors shall be paid such
remuneration as may be mutually agreed
between the Company (which includes the NRC
and the Board of Directors) within the overall
limits prescribed under the Companies Act,
2013.
ii.
The remuneration shall be subject to the
approval of the Members of the Company in
General Meeting and in accordance with the
provisions of the Companies Act, 2013
iii.
The remuneration of the CEO & Managing
Director is broadly divided into fixed and
incentive pay. In determining the remuneration
(including the fixed increment and performance
bonus) NRC shall consider the following:
a.
the relationship of remuneration and
performance benchmark;
b.balance between fixed and incentive pay
reflecting short and long term performance
objectives, appropriate to the working of
the Company and its goals;
c.responsibility required to be shouldered ,
the industry benchmarks and the current
trends; and
d.
The performance of the Company vis-àvis the annual budget achievement and
individual performance.
ii.A Non-Executive Director may be paid
commission on an annual basis, of
such sum as may be approved by the
Board on the recommendation of NRC
and in accordance with the provisions
of the Act;
iii.NRC may recommend to the Board, the
payment of commission on uniform
basis, to reinforce the principles of
collective responsibility of the Board.
iv.
In determining the quantum of
commission payable to the Directors,
NRC shall make its recommendation
after taking into consideration the overall
performance of the Company and the
onerous responsibilities required to be
shouldered by the Director.
v.The total commission payable to the
Directors in any financial year shall
not exceed 1% of the net profit of
the Company to be computed in the
manner as provided under the Act;
vi.The commission shall be payable on
pro-rata basis to those Directors who
occupy office for part of the year.
B. KMP & Senior Managerial Personnel:
i.
The remuneration / compensation / commission
etc. to the KMP and Senior Management will be
determined and approved by NRC. The remuneration
of managerial personnel shall be subject to the
approval of the shareholders of the Company and
Central Government, wherever required, as specified
in the Act.
b.
Non- Executive Director:
i.
The Non-Executive Independent
Director may receive fees for attending
meetings of Board or Committee
thereof. Provided that the amount
of such fees shall not exceed Rupees
One Lac per meeting of the Board or
Committee or such amount as may be
prescribed by the Central Government
from time to time.
ii.
While approving the remuneration of the Key
Managerial Personnel and Senior Management
of the Company, NRC will consider maintaining a
balance between fixed and incentive pay reflecting
short and long term performance objectives
appropriate to the working of the Company.
iii.
NRC shall consider and determine that the
compensation of remuneration is reasonable and
sufficient to attract retain and motivate KMP and
senior management;.
59
VI. GRANT OF ESOPS:
The Executive Directors, Non-Executive Directors, KMPs,
Senior Management, other employees of the Company,
Subsidiary(ies), Holding Company & Associate Companies
shall be eligible for employee’s stock options of the Company.
The Independent Directors of the Company shall not be
eligible for the Employee’s stock options of the Company.
VII.EVALUATION:
The Committee shall carry out evaluation of performance of
every Director, KMP and Senior Management Personnel at
regular interval (yearly).
The Committee shall also formulate and provide criteria for
evaluation of Independent Directors and the Board as a whole.
Executive Director, Whole-time Director, etc. can be appointed
as a member of NRC but, however, shall not chair the NRC.
The term of NRC shall be continued unless terminated by the
Board of Directors.
Frequency of Meetings
The meeting of NRC shall be held at such regular intervals as
may be required.
NRC may invite such Executives, as it considers appropriate, to
be present at its meetings.
Secretary
The Company Secretary of the Company shall act as Secretary
of NRC. In absence of Company Secretary, NRC may designate
any other official(s) or any of the member of NRC who shall act
as a Secretary of NRC.
VIII.OTHER DETAILS:
Membership
NRC shall consist of a minimum 3 Non-Executive Directors,
majority of them being Independent Director’s. The Chairperson
of the Committee shall be an Independent Director.
Place: Mumbai
Date: May 04, 2016
60
V. K. Chopra
DIN: 02103940
Annexure V
The ratio of the remuneration of each Director to the median employee’s remuneration and other details in terms of sub-section 12 of
Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 is as under:
Sr.
No
Requirements
Disclosure
1
The ratio of the remuneration of each director to the median remuneration Mr. Nirmal Jain (Whole Time Director) – 173.96x
of the employees for the financial year
Ms. Rajashree Nambiar (Executive Director)-77.88x
Mr. Nilesh Vikamsey (Non Executive Director) – 0.94x
Mr. V. K. Chopra (Non Executive Director) – 10.34x
Ms. Geeta Mathur (Non Executive Director) – 3.82x
2
The percentage increase in remuneration of each director, CFO, CEO, CS in Mr. Nirmal Jain – 25%
the financial year
Ms. Rajashree Nambiar- 10%
Mr. Milind Gandhi –Not Applicable
Ms. Preeti Chhabria- Not Applicable
Mr. Nilesh Vikamsey (Non Executive Director) – Not Applicable
Mr. V. K. Chopra (Non Executive Director) – Not Applicable
Ms. Geeta Mathur (Non Executive Director) – Not Applicable
3
The percentage increase in the median remuneration of employees in the
financial year
The median remuneration of the employees in the financial year was increased
by 14.63%. The calculation of % increase in Median Remuneration is done
based on comparable employees. For this we have excluded employees who
were not eligible for any increment
4
The number of permanent employees on the rolls of the Company
The Company had 5631 employees on the rolls as on March 31, 2016
5
The explanation on the relationship between average increase in
remuneration and Company performance
The remuneration components include a fair proportion of fixed and variable
pay. The increase in fixed pay is periodically reviewed while the increase in
variable pay is broadly aligned to the Company performance during the
financial year
6
Comparison of the remuneration of the Key Managerial Personnel against
the performance of the Company
For the financial year 2015-16, KMPs was paid approx 0.48 % of net profit
before tax for the year.
7
Variations in the market capitalization of the Company, price earnings ratio Not Applicable.
as at the closing date of the current FY and previous FY and percentage
increase over decrease in the market quotations of the shares of the
Company in comparison to the rate at which the Company came out with
the last public offer
8
Average percentile increase already made in the salaries of employees other Not Applicable as all the employees under Managerial role.
than the managerial personnel in the last financial year and its comparison
with the percentile increase in the managerial remuneration and
justification thereof and point out if there are any exceptional circumstances
for increase in the managerial remuneration;
9
Comparison of the each remuneration of the Key Managerial Personnel
against the performance of the Company
The comparison of remuneration of each of the Key Managerial Personnel
against the performance of the Company is as below:
Name of Key Managerial Personnel
Designation
% of Net Profit before Tax
Mr. Amit Mehendale (Resigned w.e.f. July 29, 2015)
CFO
0.07%
Mr. Milind Gandhi (Appointed w.e.f. October 23, 2015)
CFO
0.07%
Mr. Jitendra Maheshwari (Resigned w.e.f. November 10, 2015)
Company Secretary
0.04%
Ms. Preeti Chhabria (Appointed w.e.f. January 28, 2016)
Company Secretary
0.02%
10
The key parameters for any variable component of remuneration availed
by the directors.
The broad factors and guidelines considered for the Performance Bonus are:
(a) Annual Performance Review of the Directors; and
(b) Financial outcomes and profitability of the Company and IIFL Group
11
The ratio of the remuneration of the highest paid director to that of the
Not applicable
employees who are not directors but receive remuneration in excess of the
highest paid director during the year.
12
Affirmation that the remuneration is as per the remuneration policy of the It is hereby affirmed that the remuneration paid is as per the Remuneration
Company
Policy of the Company.
Place: Mumbai
Date: May 04, 2016
V. K. Chopra
DIN: 02103940
61
Annexure VI
Form No. MR - 3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2016
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014]
To,
The Members,
(a)The Securities and Exchange Board of India (Issue and Listing
of Debt Securities) Regulations, 2008;
We have conducted the Secretarial Audit of the compliance
of applicable statutory provisions and the adherence to good
corporate practices by India Infoline Finance Limited (hereinafter
called the Company). Secretarial Audit was conducted in a manner
that provided us a reasonable basis for evaluating the corporate
conducts/statutory compliances and expressing our opinion
thereon.
Based on our verification of the Company’s books, papers, minute
books, forms and returns filed and other records maintained by the
Company and also the information provided by the Company, its
officers, agents and authorized representatives during the conduct
of the secretarial audit, we hereby report that in our opinion, the
Company has, during the audit period covering the financial year
ended on March 31, 2016 complied with the statutory provisions
listed hereunder and also that the Company has proper Boardprocesses and compliance-mechanism in place to the extent, in
the manner and subject to the reporting made hereinafter:
(b)
The Securities and Exchange Board of India (Debenture
Trustees) Regulations, 1993;
(c)The Securities and Exchange Board of India (Registrars to an
Issue and Share Transfer Agents) Regulations, 1993 regarding
the Companies Act and dealing with client; and
(d)
The Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
(w.e.f. December 1, 2015);
(vii)Based on the representation made by the Company and
its officers and our verification of the relevant records, the
Company has adequate system and process in place for
compliance under the other Laws applicable specifically to
the Company, as mentioned below:
a)The Reserve Bank of India Act, 1934, as applicable to NonBanking Financial Companies;
b)
Systemically Important Non-Banking Financial (NonDeposit Accepting or Holding) Companies Prudential
Norms (Reserve Bank) Directions, 2015;
(i)The Companies Act, 1956 (the Old Act) and the rules made
thereunder, as may be applicable;
c)
Non-Banking Financial Companies Auditor’s Report
(Reserve Bank) Directions, 2008;
(ii)
The Companies Act, 2013 (the Act) and the rules made
thereunder, as may be applicable;
d)Frauds – Future approach towards monitoring of frauds
in NBFCs;
(iii)The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and
the rules made thereunder;
e) Fair Practices Codes (FPC) for all NBFCs;
f ) Corporate Governance;
We have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company for the
financial year ended on March 31, 2016 according to the provisions of:
(iv)The Depositories Act, 1996 and the Regulations and Bye-laws
framed thereunder;
(v)The Foreign Exchange Management Act, 1999 and the Rules
and Regulations made thereunder to the extent of Foreign
Direct Investment.
g)Raising Money through Private Placement by NBFCs-Non
Convertible Debentures;
(vi)
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’):
h)
KYC Norms/AML Standards/Combating Financing of
Terrorism – Unique Customer Identification Code for
NBFC Customers in India; and
i)Early Recognition of Financial Distress, Prompt Steps for
Resolution of Fair Recovery for Lenders: Framework for
Revitalising Distressed Assets in the Economy.
62
Based on the representation made by the Company and its
officers, the Company has adequate system and process in place
for compliance under the other applicable Laws, Acts, Rules,
Regulations, Circulars, Guidelines and Standards including the
following:
a)Labour Laws and other incidental laws related to labour and
employees appointed by the Company either on its payroll or
on contractual basis as related to wages, gratuity, provident
fund, ESIC, compensation etc.;
b) Acts as prescribed under Direct Tax and Indirect Tax;
c) Acts prescribed under prevention and control of pollution;
Majority decision is carried through while the dissenting members’
views, if any, are captured and recorded as part of the minutes.
We further report that there are adequate systems and processes
in the Company commensurate with the size and operations of the
Company to monitor and ensure compliance with applicable laws,
rules, regulations and guidelines.
We further report that during the audit period the Company has
undertaken following event/action having a major bearing on the
Company’s affairs in pursuance of the above referred laws, rules,
regulations, guidelines, standards, etc. referred to above:
(i)Private Placement of Non-Convertible Debentures/Unsecured
Sub-Debt during the year:
d) Acts prescribed under environmental protection;
Issue Size
Sl.
₹. In
No.
Million)
1. 512
2. 210
3. 280
4. 420
5. 200
6. 150
7. 220
8. 120
9. 250
10. 58
11. 112
12. 250
e) Land Revenue laws of respective States;
f ) Labour Welfare Act of respective States; and
g) Local laws as applicable to various offices of the Company.
We have also examined compliance with the applicable clauses of
the following:
(i)
Listing Agreements entered into by the Company with
the Stock Exchanges for Listed Debt Securities and
Non-Convertible Preference Shares issued on private
placement basis; and
(ii)
Secretarial Standards issued by the Institute of Company
Secretaries of India, w.e.f. July 1, 2015.
During the period under review the Company has complied with
the provisions of the Act, Old Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above
We further report that the Board of Directors of the Company
is duly constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The changes
in the composition of the Board of Directors that took place during
the period under review were carried out in compliance with the
provisions of the Act.
Adequate notice is given to all directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance, and a system exists for seeking and
obtaining further information and clarifications on the agenda
items before the meeting and for meaningful participation at the
meeting.
Date of Issue
Nature of Security
12/05/2015
02/06/2015
16/06/2015
13/08/2015
11/09/2015
16/09/2015
16/10/2015
03/12/2015
18/12/2015
23/12/2015
18/01/2016
16/02/2016
Non-Convertible Debentures
Unsecured-Sub Debt
Unsecured-Sub Debt
Non-convertible Debentures
(ii)On May 11, 2015, members at their Extra-Ordinary General
Meeting approved the following:
(a)Pursuant to the special resolution under Section 180(1)
(a) and 180(1)(c) of the Companies Act, 2013, the Board of
Directors have been authorised to create charges subject
to a maximum limit of ` 20,000 crores and borrow moneys
(apart from temporary loans from the Company’s bankers
in the ordinary course of business) subject to maximum
limit of ` 20,000 crores; and
(b)Pursuant to the Special Resolution u/s 42 of the Companies
Act, 2013, to offer Secured/Unsecured/Listed/Unlisted/
Rated/Unrated/Convertible/Non-Convertible/Market
Linked / Subordinated Debt/Perpetual Debentures/
Fixed Maturity Debentures aggregating ₹ 7,000 (Seven
Thousand) Crores on private placement basis during the
financial year 2015-2016.
(iii)
On July 29, 2015, the members at their Annual General
Meeting approved the following:
63
(a)Payment of commission upto 1% of net profits of the
Company to the Non-Executive Directors of the Company
for a period of five years; and
(b)Confirmed appointment of Ms. Rajashree Nambiar as an
Executive Director of the Company.
(iv)In accordance with the terms of issue of Secured, Redeemable,
Non-convertible Debentures of the Company, the Company
has redeemed the following debenturesSr.
ISIN
No.
1. INE866I07636
2. INE866I07487
Nominal Value
(in ₹)
350,000,000
150,000,000
Redemption
Date
29-Apr-2015
27-July-2015
Type
Partial
Total
(ix)In respect of Appointment of Ms. Rajashree Nambiar as an
Executive Director of the Company, the Company had made an
application in Form CG 1 under Section 460 of the Companies
Act, 2013 to the Central Government vide SRN C79103552,
with regards to eForm MGT 14, and the same was approved
by the Central Government vide its Order No. 17/23/2015 CL V
dated April 13, 2016; and
(x)On November 23, 2015, the members at their Extra Ordinary
General Meeting approved the following:
a) Modification of IIFL ESOP, 2015; and
b)
Grant of ESOP to employees of Holding Company/
Subsidiary company(ies)/Associate Company(ies).
For M Siroya and Company
Company Secretaries
(v)On November 10, 2015, the Board of Directors of the Company
has declared interim dividend of ` 2.75/- per Equity Share of
` 10/- each.
(vi)The Company has made an Investment in Equity Shares of
India Infoline Housing Finance Limited for an amount up to
₹ 100 crores;
(vii)
Acquired 11,00,00,000 - 6% Compulsorily Convertible
Redeemable Preference Shares of ₹ 10/- each of India Infoline
Housing Finance Limited.
(viii)On October 24, 2016, the members at their Extra Ordinary
General Meeting approved the following:
a) Adoption of IIFL ESOP, 2015;
b)
Grant of ESOP to employees of Holding Company
Subsidiary company(ies)/Associate company(ies); and
c)Grant of ESOP to employees exceeding 1% of the issued
capital of the Company
64
Place: Mumbai
Date: May 04, 2016
Mukesh Siroya
Proprietor
FCS No.: 5682
CP No.: 4157
This report is to be read with our letter of even date which is
annexed as Annexure A and forms an integral part of this report.
‘Annexure A’
To,
The Members,
Our report of even date is to be read along with this letter.
Maintenance of Secretarial record is the responsibility of the
management of the Company. Our responsibility is to express an
opinion on these Secretarial records based on our audit.
We have followed the audit practices and processes as were
appropriate to obtain reasonable assurance about the correctness
of the contents of the Secretarial records. The verification was done
on test basis to ensure that correct facts are reflected in Secretarial
records. We believe that the processes and practices, we followed
provide a reasonable basis for our opinion.
The compliance of the Corporate and other applicable laws, rules,
regulations, standards is the responsibility of the management.
Our examination was limited to the verification of the procedures
on test basis.
The Secretarial Audit Report is neither an assurance as to the future
viability of the Company nor of the efficacy or effectiveness with
which the management has conducted the affairs of the Company.
For M Siroya and Company
Company Secretaries
Place: Mumbai
Date: May 04, 2016
Mukesh Siroya
Proprietor
FCS No.: 5682
CP No.: 4157
We have not verified the correctness and appropriateness of
financial records and Books of Accounts of the Company.
Wherever required, we have obtained the Management’s
representation about the compliance of laws, rules and regulations
and happening of events etc.
65
Standalone Financial
Statements
Consolidated Financial
Statements
67
120
Standalone | Financial Statements
Independent Auditors’ Report
To the Members of
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial
statements of India Infoline Finance Limited (“the Company”),
which comprise the Balance Sheet as at 31 March, 2016, and the
Statement of Profit and Loss, and the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies
and other explanatory information.
MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE
FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters
stated in Section 134(5) of the Companies Act, 2013 (the ‘Act’)
with respect to the preparation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in
accordance with the accounting principles generally accepted in
India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal financial
control relevant to the Company’s preparation of the financial
statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates
made by the Company’s Directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone financial statements.
OPINION
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Act in the manner
so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of
affairs of the Company as at 31st March, 2016, and its profit and its
cash flows for the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1.As required by the Companies (Auditor’s Report) Order, 2016
(the ‘Order’) issued by the Central Government of India in
terms of Section 143(11) of the Act, we give in the “Annexure
A”; a statement on the matters specified in paragraphs 3 and 4
of the Order.
2.As required by Section 143(3) of the Act, we report that:
(a)We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b)In our opinion, proper books of account as required by
law have been kept by the Company so far as it appears
from our examination of those books;
(c)The Balance Sheet, the Statement of Profit and Loss and
the Cash Flow Statement dealt with by this report are in
agreement with the books of account;
(d)
In our opinion, the aforesaid standalone financial
statements comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7
of the Companies (Accounts) Rules, 2014;
(e)
On the basis of the written representations received
from the directors as on 31st March, 2016 taken on
record by the Board of Directors, none of the directors is
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required
to be included in the audit report under the provisions of the Act
and the Rules made thereunder.
We conducted our audit in accordance with the Standards
on Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment,
67
disqualified as on 31st March, 2016 from being appointed
as a director in terms of Section 164 (2) of the Act;
(f )With respect to the adequacy of the internal financial
controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our
separate report in “Annexure B”; and
ii)The Company did not have any long-term contracts
including derivative contracts for which there were
any material foreseeable losses; and
iii)There were no amounts which were required to be
transferred to the Investor Education and Protection
Fund by the Company.
For Sharp and Tannan Associates
Chartered Accountants
Firm’s Registration No.:109983W
By the hand of
(g)With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our
opinion and to the best of our information and according
to the explanations given to us:
68
i)The Company has disclosed the impact of pending
litigation on its financial position in its financial
statements-Refer Note. 26 to the financial statements;
Place: Mumbai
Date: May 04, 2016
Parthiv S. Desai
Partner
Membership No.: 042624
Annexure A to the Auditors’Report
The Annexure referred to in Independent Auditors’ report to the
members of India Infoline Finance Limited (“the Company”) for the
year ended 31 March, 2016. We report that:
1. (a)The Company is maintaining proper records showing full
particulars, including quantitative details and situation of
fixed assets.
(b)As explained to us, these fixed assets have been physically
verified by the management in accordance with a phased
programme of verification which in our opinion is
reasonable, having regard to the size of the Company and
nature of its assets. The frequency of physical verification
is reasonable and no material discrepancies were noticed
on such verification.
(c)According to the information and explanations given to
us and on the basis of our examination of the records of
the Company, the title deeds of immovable properties
are held in the name of the Company.
2.
The Company is not carrying on any manufacturing or
trading activity. Therefore, paragraph 3 (ii) of the order is not
applicable to the Company.
3.The Company has granted loans to twelve companies covered
in the register maintained under section 189 of the Companies
Act, 2013 (‘the Act’).
(a)In our opinion, the rate of interest and other terms and
conditions on which the loans had been granted to
the companies listed in the register maintained under
Section 189 of the Act were not, prima facie, prejudicial
to the interest of the Company.
(b)In the case of the loans granted to the companies listed
in the register maintained under section 189 of the Act,
the borrowers have been regular in the payment of the
principal and interest as stipulated.
(c)There are no overdue amounts in respect of the loans
granted to companies listed in the register maintained
under section 189 of the Act.
4.
In our opinion and according to the information and
explanations given to us, the Company has complied with the
provisions of section 185 and 186 of the Act, with respect to
the loans, investments, guarantees and securities.
5.The Company has not accepted any deposits during the year
from the public to which the directives issued by Reserve
Bank of India and the provisions of Section 73 to 76 and any
other relevant provisions of the Act and the rules framed there
under apply. Therefore, Paragraph 3 (v) of the Order is not
6.
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 prescribed by the
Central Government under section 148(1) of the Companies
Act, 2013. Therefore, Paragraph 3 (vi) of the Order is not
7. (a)According to the information and explanations given to
us and the records of the Company examined by us, the
Company is generally regular in depositing undisputed
statutory dues including provident fund, employees’
state insurance, income tax, sales tax, service tax, duty of
customs, duty of excise, value added tax and any other
material statutory dues as applicable to the Company,
with the appropriate authorities. There were no material
undisputed amounts payable in respect of provident fund,
employees’ state insurance, income tax, sales tax, service
tax, duty of customs, duty of excise, value added tax and
any other material statutory dues as applicable to the
Company outstanding as at 31st March 2016 for a period of
more than six months from the date they became payable
Nature Of the Statue
Nature of the disputed Dues
Income Tax,1961
Disallowance of Expenses
U/S 14(A) of the Act
U/S 14(A) of Act
U/S 14(A) of IT Act
Income Tax,1961
Income Tax,1961
(b)According to the information and explanations given
to us and records of the Company examined by us,
there are no cases of non-deposit with the appropriate
authorities of disputed dues of sales tax or service tax or
duty of customs or duty of excise or value added tax, as
applicable to the Company. However according to the
information and explanations given to us, the following
dues of income tax have not been deposited by the
Company on account of dispute:
Amount of Tax
(` In Millions)
14.12
Period to which
amount relates
AY 2010-11
55.20 outstanding out of
total demand of 88.15
34.10 outstanding out of
total demand of 59.10
AY 2011-12
AY 2012-13
Forum where dispute is pending
Appeal filed before CIT(A) against
the order passed u/s 143 r.w. 254
Appeal is filed with Hon'ble ITAT
Commissioner of Income Tax
Appeal
69
8.
Based on our audit procedures and according to the
information and explanations given to us, the Company has
not defaulted in repayment of its dues to financial institutions,
banks and debenture holders. The Company has not borrowed
from government.
9.The Company did not raise any money by way of initial public
offer or further public offer (including debt instruments).
However, it has raised monies by way of private placement
of debt instruments and term loans and monies raised were
applied for the purpose for which those were raised.
10.We report that during the year, the Company has come across
fraud totaling to ` 13.28 Millions in respect of its lending
operations. Out of the same ` 2.83 Millions have already been
recovered, please refer Note no 36 to the financial statements.
Out of the total amount of fraud, frauds involving employees
of the Company amounted to ` 7.75 Millions of the same
` 1.21 Millions have already been recovered. We have neither
come across any instance of fraud by the Company, noticed or
reported during the year nor have we been informed of any
such case.
13.According to the information and explanations given to us
and based on our examination of the records of the Company,
transactions with the related parties are in compliance
with sections 177 and 188 of the Act where applicable and
details of such transactions have been disclosed in the
financial statements as required by the applicable accounting
standards.
14.According to the information and explanations give to us and
based on our examination of the records of the Company, the
Company has not made any preferential allotment or private
placement of shares or fully or partly convertible debentures
during the year. Therefore, paragraph 3 (xiv) of the Order is not
15.According to the information and explanations given to us
and based on our examination of the records of the Company,
the Company has not entered into non-cash transactions with
directors or persons connected with him. Therefore, paragraph
3 (xv) of the Order is not applicable to the Company.
16.The Company is registered under section 45-IA of the Reserve
Bank of India Act 1934.
11.According to the information and explanations give to us and
based on our examination of the records of the Company, the
Company has paid/provided for managerial remuneration in
accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Act.
12.
In our opinion and according to the information and
explanations given to us, the Company is not a nidhi company.
Therefore, paragraph 3(xii) of the Order is not applicable to
the Company.
70
By the hand of
Place: Mumbai
Date: May 04, 2016
Parthiv S. Desai
Partner
Annexure B to the Auditors’ Report
Independent Auditors’ report to the members of India Infoline
Finance Limited (“the Company”) on the Internal Financial Controls
under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”).
We have audited the internal financial controls over financial
reporting of the Company as of 31 March, 2016 in conjunction with
our audit of the standalone financial statements of the Company
for the year ended on that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL
CONTROLS
The Company’s management is responsible for establishing and
maintaining internal financial controls based on the internal control
over financial reporting criteria established by the Company
considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants
of India (‘ICAI’).
These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct
of its business, including adherence to Company’s policies, the
safeguarding of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting records, and
the timely preparation of reliable financial information, as required
under the Companies Act, 2013.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on the Company’s
internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls over Financial
Reporting (the “Guidance Note”) and the Standards on Auditing,
issued by ICAI and deemed to be prescribed under section 143(10)
of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting
was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence
about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit
of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether
due to fraud or error.
Company’s internal financial controls system over financial
reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER
FINANCIAL REPORTING
A company’s internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance
with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition
of the company’s assets that could have a material effect on the
financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS
OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to
71
future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
OPINION
In our opinion, the Company has, in all material respects, an
adequate internal financial controls system over financial
reporting and such internal financial controls over financial
reporting were operating effectively as at 31 March, 2016, based
on the internal control over financial reporting criteria established
by the Company considering the essential components of internal
72
control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India
By the hand of
Place: Mumbai
Date: May 04, 2016
Parthiv S. Desai
Partner
Auditor’s Additional Report
To,
Board of the Directors
Mumbai
REPORT ON COMPLIANCE WITH THE NON-BANKING
FINANCIAL COMPANIES AUDITOR’S REPORT (RESERVE
BANK) DIRECTIONS, 2008
Pursuant to the Non-Banking Financial Companies Auditor’s Report
(Reserve Bank) Directions, 2008 (the “Directions”) and as per the terms
of our engagement dated 7th August, 2015. We have examined the
matters specified in the Directions in respect of India Infoline Finance
Limited. (the “Company”) for the year ended March 31, 2016.
MANAGEMENT’S RESPONSIBILITY
The Management is responsible for the design and implementation
of the internal procedures, systems, processes and controls to ensure
compliance with the Directions on an ongoing basis. This responsibility
also includes reporting non-compliances, if any, to the Reserve Bank
of India, Board of the Company and its Audit Committee.
Our responsibility is to report on the matters specified in the
Directions based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India (ICAI). Those Standards require that we comply
with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether there are any identified
non-compliances. An audit involves performing procedures to
obtain audit evidence about the compliance with the Directions.
The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement
of the information and records, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
controls relevant to the Company’s compliance with the Directions
in order to design audit procedures that are appropriate in the
circumstances. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our certificate.
We conducted our examination in accordance with the Guidance
Note on Special Purpose Audit Reports and Certificates issued by
the Institute of Chartered Accountants of India.
2.The Company is entitled to continue to hold such CoR in terms
of its asset / income pattern as on March 31, 2016.
3.The Company during the year is not an Asset Finance Company
(AFC) as defined in Non-Banking Financial Companies
Acceptance of Public Deposits (Reserve Bank) Directions 1998.
4.The Company during the year is not a Non-Banking Financial
Company- Micro Finance Institutions (NBFC-MFI) as defined in
Non-Banking Financial Company- Micro Finance Institutions
(Reserve Bank) Directions, 2011 dated December 02, 2011
(MFI Directions).
5.The Board of Directors of the Company has passed a resolution
in its meeting held on April 17, 2015 for non-acceptance of
public deposits.
6.The Company has not accepted any public deposits during
the year ended March 31, 2016.
7.
The Company has complied with the prudential norms
relating to income recognition, accounting standards, asset
classification and provisioning for bad and doubtful debts
as applicable to it in terms of Systematically Important Non–
Banking Financial (Non –Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Directions, 2015.
8.The annual statement of capital funds, risk assets / exposures
and risk asset ratio (NBS –7) has been furnished to the Bank
on April 20, 2016 within the stipulated period based on the
un-audited books of account. The Company had correctly
arrived at and disclosed the capital adequacy ratio, based on
the unaudited books of account, in the return submitted to
the Bank in Form NBS – 7 and such ratio is in compliance with
the minimum CRAR prescribed by the Bank.
RESTRICTION ON USE
This report is issued pursuant to our obligations under Non-Banking
Financial Companies Auditor’s Report (Reserve Bank) Directions,
2008 to Reserve Bank of India and should not be used by any other
person or for any other purpose. Sharp & Tannan Associates neither
accepts nor assumes any duty or liability for any other purpose or to
any other party to whom our report is shown or into whose hands it
may come without our prior consent in writing.
By the hand of
CONCLUSION
Based on our examination of the books and records of the
Company as produced for our examination and the information
and explanations given to us we further report that:
1.The Company is engaged in the business of non-banking
financial institution and has obtained a certificate of
registration (COR) no. B-13.01792 dated May 12, 2005
from the Reserve Bank of India (‘the Bank’), Department of
Non-Banking Supervision, Mumbai Regional Office.
Place: Mumbai
Date: May 04, 2016
Parthiv S. Desai
Partner
73
Standalone
Balance Sheet
As at March 31, 2016
(` in Millions)
Particulars
I
As at
March 31, 2016
As at
March 31, 2015
3
4
5,621.54
17,472.58
23,094.12
5,621.54
15,853.08
21,474.62
5
53,651.24
481.99
54,133.23
79,796.24
471.57
80,267.81
25,494.14
31,270.57
30,492.98
8,246.55
725.66
64,959.33
142,186.68
13,608.83
4,361.42
1,016.73
50,257.55
151,999.98
580.28
0.02
4.71
585.01
7,961.73
927.13
726.34
0.12
5.65
732.11
6,641.79
799.40
46,588.18
993.84
86.93
56,557.81
35,346.38
731.92
117.73
43,637.22
3,202.37
5,860.01
7,144.83
10,125.83
70,322.75
5,479.16
179.57
85,043.86
142,186.68
82,778.78
7,238.17
343.06
107,630.66
151,999.98
Note No.
EQUITY AND LIABILTIES
(1) Shareholder's Funds
(a) Share Capital
(b) Reserve and Surplus
Sub-Total
(2) Non-Current Liabilities
(a) Long-term borrowings
(b) Other Long-term liabilities
(c) Long-term provisions
Sub-Total
(3) Current Liabilities
(a) Short-term borrowings
(b) Other current liabilities
- Current maturities of long term borrowings
- Others
(c) Short-term provisions
Sub-Total
Total - Equity And Liabilities
6
7
8
6
II ASSETS
(1) Non-current assets
(a) Fixed assets
(i)
Tangible assets
(ii)
Intangible assets
(iii)
Capital work-in-progress
Sub-Total
(b) Non-current investments
(c) Deferred tax assets (Net)
(d) Long-term loans & advances
- Loans
- Others
(e) Other non-current assets
Sub-Total
(2) Current assets
(a) Current investments
(b) Cash and Bank balances
(c) Short-term loans & advances
- Loans
- Others
(d) Other current assets
Sub-Total
Total - Assets
See accompanying notes forming part of the Standalone financial statements
9
10
11
12
13
14
15
16
13
14
1-46
As per our attached report of even date
For Sharp & Tannan Associates
Firm’s Registration No. 109983W
By the hand of
For and on behalf of the Board of Directors of
Parthiv S. Desai
Partner
Membership No.: (F) 042624
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Chief Financial Officer
Preeti Chhabria
Company Secretary
74
Standalone Statement
of Profit and Loss
For the year ended March 31, 2016
(` in Millions)
Particulars
Note No.
2015-16
2014-15
17
18
20,714.31
1,359.11
22,073.42
20,854.45
911.94
21,766.39
19
20
21
22
23
2,020.55
12,842.52
266.77
1,911.98
880.81
17,922.63
4,150.79
2,032.95
12,702.47
312.21
2,073.56
931.83
18,053.02
3,713.37
1,561.19
(127.72)
1,433.47
2,717.32
1,532.07
(316.54)
20.58
1,236.11
2,477.26
10.1
10.1
10.0
10.3
10.3
10.0
INCOME
Revenue from operations
Other Income
Total Revenue
EXPENDITURE
Employee benefit expenses
Finance cost
Depreciation & amortisation expenses
Other expenses
Provision & Write off
Total Expenses
Profit before tax
Tax expenses :
Current tax
Deferred tax
Current tax expense relating to prior years
Total tax expense
Profit after tax for the year
Earnings per equity share
(1)Basic
(2)Diluted
Face Value Per Equity Share `
See accompanying notes forming part of the Standalone financial statements
24
1-46
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
75
Standalone Cash Flow Statement
(` in Millions)
Particulars
2015-2016
2014-2015
4,150.79
3,713.35
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before taxation, and extraordinary item
Adjustments for:
Depreciation
Provision for doubtful loans (Note : 23)
Provision for standard loans (Note : 23)
Provision for diminution in value of investments (Note : 23)
Provision for contingencies (Note : 23)
Gratuity & leave enchasment (Note : 19)
Operating profit before working capital changes
Increase / (Decrease) in short term & long term provisions
Increase / (Decrease) in other liabilities
Decrease / (Increase) in trade inventories
Decrease / (Increase) in other current assets
Decrease / (Increase) in other non current assets
Cash generated from operations
Tax (Paid) / Refund
Net cash from operating activities
Decrease / (Increase) in long term loans & advances
Decrease / (Increase) in short term loans & advances
Net cash used in operating activities (A)
266.77
456.45
10.00
1.73
30.19
765.14
4,915.93
312.21
416.45
199.75
14.40
258.01
17.13
(27.71)
(52.49)
3,626.51
163.49
30.79
1,053.32
70.48
305.31
48.62
3,793.08
8,709.01
1,217.95
4,931.30
1,425.24
6,356.54
(2,028.98)
6,680.03
(1,729.21)
4,627.33
(11,660.67)
14,215.03
9,234.39
(5,096.09)
(23,768.68)
(24,237.44)
(119.66)
(82.51)
(1,319.95)
3,942.46
2,502.85
(816.41)
(1,890.00)
(2,788.92)
(965.77)
(9,260.85)
(5,776.44)
(16,003.06)
(4,265.82)
(693.65)
3,250.00
24,546.86
4,385.46
31,488.67
4,462.31
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets,including intangible assets, capital work-in-progress and
capital advances#
Purchase of non-current investments#
Purchase of current investments#
Proceeds from sale/maturity of current investments#
Net cash from investing activities (B)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend & Dividend Distribution Tax paid
Proceeds from Issue of Preference Share capital
Proceeds from long term borrowings#
Repayment of long term borrowings#
Proceeds from short term borrowings#
Repayment of short term borrowings#
Net cash from financing activities (C)
Net Increase/(Decrease) in cash and cash equivalents ( A + B + C)
76
(` in Millions)
Particulars
Opening Cash and cash equivalents
Cash on hand and balances with banks
Closing Cash and cash equivalents
See accompanying notes forming part of the standalone financial statements
#
2015-2016
2014-2015
10,125.83
5,663.52
5,860.01
10,125.83
Represents net amount due to the transaction volume
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
Cash & cash equivalent as at the end of the year include:
Cash & bank balances (Refer Note 16)
Cash & cash equivalent at the end of the year
3.
Previous year's figures are re-grouped \re-arranged wherever necessary
5860.01
10125.83
5,860.01
10,125.83
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
77
Standalone Financial Statements of India Infoline Finance Limited
Notes forming part of Standalone Financial Statements for the year ended March 31, 2016
NOTE 1.CORPORATE INFORMATION:
The Company is a systemically important Non-Banking Financial
Company not accepting public deposits (“NBFC-ND-SI”) registered
with the Reserve Bank of India (RBI) under section 45-IA of the
Reserve Bank of India Act, 1934 and primarily engaged in financing
and related activities. The Company has received the certificate
of registration from RBI on May 12, 2005, enabling the Company
to carry on business as Non-Banking Financial Company. The
Company offers broad suite of financial products such as mortgage
loan, gold loan, loan against securities, commercial vehicle loan,
loans to small & medium enterprise (SME) and health care finance
to retail and corporate clients.
NOTE 2.SIGNIFICANT ACCOUNTING POLICIES:
2.1 Basis of preparation of financial statements:
The financial statements have been prepared in accordance
with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with all material aspects of the
applicable Accounting Standards notified under section 133
of the Companies Act 2013, read together with Rule 7 of
the Companies (Accounts) Rules, 2014(as amended) and the
relevant provisions of the Companies Act 2013 along with the
guidelines issued by Reserve bank of India (RBI) as applicable
to NBFC’s. The financial statements have been prepared on
accrual basis under the historical cost convention.
2.2 Prudential norms:
The Company follows the Reserve Bank of India (“RBI”)
directions in respect of systemically important non-banking
financial (Non-Deposit Accepting or Holding) companies
prudential norms (Reserve Bank) directions, 2015 (“RBI
Directions, 2015) dated March 27, 2015, as amended from
time to time in respect of income recognition, income from
investments, accounting of investments, asset classification,
provisioning and disclosures in the Balance Sheet. Accounting
Standards (AS) under section 133 of the Companies Act 2013,
read together with Rule 7 of the Companies (Accounts) Rules
2014 issued by the Ministry of Corporate Affairs and Guidance
Note issued by The Institute of Chartered Accountants of India
(“ICAI”) are followed in so far as they are not inconsistent with
the RBI directions.
2.3 Use of estimates:
The preparation 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. The management
believes that the estimates used in the preparation of financial
statements are prudent and reasonable. Difference between
the actual result and estimates are recognized in the period in
which the results are known /materialised.
78
2.4 Fixed assets:
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. 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. In case of transfer
of used fixed assets from group companies, depreciation is
charged over the remaining useful life of the asset.
Individual assets / group of similar assets costing up to ` 5,000 has
been depreciated in full in the year of purchase. Leasehold land is
depreciated on a straight line basis over the leasehold period.
Estimated useful life of assets are as under:
Class of assets
Buildings*
Computers*
Office equipment
Electrical*
Furniture and fixtures*
Vehicles*
Software
Useful life
20 years
3 years
5 years
5 years
5 years
5 years
3 years
*For these class of assets, based on internal assessment and independent
technical evaluation carried out by external valuers the management believes
that the useful lives as given above best represent the period over which
management expects to use these assets. Hence the useful lives for these assets
are different from the useful lives as prescribed under Part C of Schedule II of the
Companies Act 2013.
2.5 Assignment of loan portfolio:
De-recognition of loans assigned, in the books of the
Company, is based on the concept of surrender of control
over the loans resulting in a “true sale” of loans. Future
interest spread receivables in case of a par structure deals are
recognised over the tenure of agreements as per guidelines
issued by the RBI. Expenditure in respect of direct assignment
is recognised upfront. Credit enhancement in the form of cash
collateral provided by the Company is included under cash
and bank balance / loans and advances, as applicable.
2.6 Revenue recognition:
The Company complies, in all material respects, with the
Accounting Standard -9 issued by the Institute of Chartered
Accountants of India, prudential norms relating to income
recognition, asset classification and the minimum provisioning
for bad and doubtful debts and standard assets, specified in
the directions issued by the RBI, as applicable to it, and
Interest income is recognised on the time proportionate
basis as per agreed terms.
Interest income is recognised and remaining due for
more than 150 days for all the loans are reversed and are
accounted as income when these are actually realised.
Dividend income is recognised when the right to receive
payment is established.
Processing fees received from customers is recognised as
income on receipt basis.
In respect of the other heads of income, the Company
accounts the same on accrual basis.
2.7 Preliminary expenses:
Preliminary expenses are written off in the same financial year
in which they are incurred.
2.8 Employee benefits:
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 Statement of Profit &
loss.
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.
2.9 Provisions, contingent liabilities and contingent assets:
Non-performing loans are written off / provided for, as per
management estimates, subject to the minimum provision
required as per Systemically Important Non-Banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential
Norms (Reserve Bank) Directions, 2015 (“RBI Direction’s, 2015)
dated March 27, 2015. Provision on standard assets is also
made as per the RBI Directions 2015.
The provision is recognised if, as a result of a past event, the
company has a present obligation that can be estimated
reliably, and it is probable that an outflow of economic
benefits will be required to settle 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
2.10Taxes on income:
Tax expense comprises of current and deferred tax and
includes any adjustments related to the past periods in current
and /or deferred tax adjustments that may become necessary
due to certain developments or reviews during the relevant
period. Current income-tax is measured at the amount
expected to be paid to the tax authorities in accordance with
the Income-tax Act, 1961.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 income taxes reflect the impact of timing differences
between taxable income and accounting income originating
during the current year and reversal of timing differences of
earlier year. Deferred tax is measured using the tax rate and
the tax laws enacted or substantively enacted at the Balance
Sheet date. The deferred tax assets are recognised only to
the extent that it has become reasonably certain or virtually
certain, as the case may be, that sufficient future taxable
income will be available.
Carrying amount of deferred tax assets are reviewed at each
balance sheet date. The company writes down the carrying
amount of a deferred tax asset to the extent that it is no longer
reasonably certain that sufficient future taxable income will
be available against which deferred tax asset can be realised.
Any such write down is reversed to the extent that it becomes
be available.
2.11Operating leases:
Lease rentals in respect of operating lease arrangements are
charged to the Statement of Profit & Loss in accordance with
Accounting Standard 19, issued by the Institute of Chartered
Accountants of India.
2.12Investments:
Investments, which are readily realizable and intended to be
held for not more than one year from the date on which such
investments are made, are classified as current investments. All
other Investments are classified as non – current investments.
Current investments are stated at lower of cost or market / fair
value. Non – current investments are carried at cost. Provision
for diminution in value of non – current investments is made,
if in the opinion of the management, such diminution is
other than temporary. For investment in mutual funds, the
79
net assets value (NAV) declared by the mutual funds at the
Balance Sheet date is considered as the fair value.
2.13Inventories:
Closing stock is valued at cost or market value, whichever is
lower. Cost is computed on FIFO basis.
2.14Earnings per share:
Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the period.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.
2.15Borrowings:
Borrowings are bifurcated under long term and short term
liabilities. Commercial papers are recognised at face value at
the time of its issue. Any difference between the proceeds and
the redemption value is recognised in profit & loss account
over the period of the borrowings.
2.16Debenture issue expenses:
Debenture issue expenses incurred on public issue of Non
Convertible Debentures are amortized over tenure of the
underlying debenture.
In case of private placement of Non Convertible Debentures
the same is charged to the profit and loss account in the year
NOTE 3. SHARE CAPITAL
(i) Authorised, Issued, Subscribed and Paid-up Share Capital:
(` in Millions)
Particulars
Authorised Share Capital:
300,000,000 Equity Shares (Previous Year 300,000,000) of ` 10 each
400 Preference Shares (Previous Year 400) of ` 100 each
575,000,000 Preference Shares (Previous Year 575,000,000) of ` 10 each
Total
Issued, Subscribed and Paid-up Share Capital:
237,154,030 Equity Shares (Previous Year 237,154,030) of ` 10 each with voting rights
75,000,000 - 8% Compulsorily Redeemable Non-Convertible Non-Cumulative Preference Shares
(Previous Year 75,000,000 l) of ` 10 each
100,000,000 - 8% Compulsorily Redeemable Non-Convertible Cumulative Preference Shares (Previous
Year 100,000,000 ) of ` 10 each
150,000,000 - 9.25% Compulsorily Redeemable Non-Convertible Cumulative Preference shares
(Previous Year 150,000,000) of ` 10 each
Total
80
As at
March 31, 2016
As at
March 31, 2015
3,000.00
199.96
0.04
5,750.00
8,950.00
3,000.00
199.96
0.04
5,750.00
8,950.00
2,371.54
2,371.54
750.00
750.00
1,000.00
1,000.00
1,500.00
5,621.54
1,500.00
5,621.54
(ii) Reconciliation of the shares outstanding at the beginning and at the end of the year:
Particulars
Equity Shares:
Add: Issued during the year
Outstanding at the end of the year
8% Compulsorily Redeemable Non Convertible Non Cumulative
Preference Shares:
8% Compulsorily Redeemable Non Convertible Cumulative Preference
Shares:
9.25% Compulsorily Redeemable Non Convertible Cumulative
Preference Shares:
No. of
Amount in `
Shares
No. of
Amount in `
Shares
237,154,030
237,154,030
2,371.54
2,371.54
237,154,030
237,154,030
2,371.54
2,371.54
75,000,000
75,000,000
750.00
750.00
75,000,000
75,000,000
750.00
750.00
100,000,000
100,000,000
1,000.00
1,000.00
100,000,000
100,000,000
1,000.00
1,000.00
150,000,000
150,000,000
1,500.00
1,500.00
150,000,000
150,000,000
1,500.00
1,500.00
(iii) Rights attached to equity shares:
The Company has issued only one class of equity shares having a par value of ` 10/- per share. Each holder of equity share is entitled
to one vote per share. The Company declares and pays dividends in Indian Rupees. During the year ended March 31, 2016, equity
shareholders were paid interim dividend of ` 2.75/- (Previous Year ` 2.50/-) per share.
(iv) Rights attached to preference shares:
a)75,000,000-8% compulsorily redeemable Non-convertible Non-cumulative preference shares of ` 10/- each aggregating to
` 750.00 million. These shares shall have seniority over equity shareholders with respect to payment of capital and dividend. It
shall carry dividend rate of 8% p.a. and will not have any cumulative right with respect to payment of dividend.
b)100,000,000-8% compulsorily redeemable Non convertible Cumulative preference shares of ` 10/- each aggregating to
` 1,000.00 million. These shares shall have seniority over equity shareholders with respect to payment of capital and dividend.
It shall carry dividend rate of 8% p.a. and their right to dividend is on cumulative basis.
c)150,000,000-9.25% compulsorily redeemable Non convertible Cumulative Preference Shares aggregating to ` 1,500.00 million.
These shares shall have seniority over equity shareholders with respect to payment of capital and dividend. Their right to
dividend is on cumulative basis. During the year ended March 31, 2016 the company has declared and paid dividend on these
shares @9.25% p.a. in accordance with the terms of the Issue.
Other rights of the holders of Preference Shares shall be governed by the provisions of the Companies Act 2013, read with applicable
rules and any amendment / modification in law from time to time and such other applicable regulations.
(v) Shares held by holding company, subsidiaries and their associates:
Name of Shareholder
Equity Shares
IIFL Holdings Limited (Formerly India Infoline Limited)
No. of Shares
% Holdings
237,154,030
100.00%
No. of Shares
% Holdings
234,467,549
98.87%
81
Name of the shareholder
No. of Shares
% Holdings
Preference shares:
8% Compulsorily Redeemable Non- Convertible Non Cumulative
Preference Shares of ` 10 each fully paid up
Shares of ` 10 each fully paid up
IIFL Wealth Management Limited
Preference shares of ` 10 each fully paid up
No. of Shares
% Holdings
75,000,000
100.00%
75,000,000
100.00%
50,000,000
-
50.00%
-
50,000,000
49,500,000
50.00%
49.50%
-
-
150,000,000
100.00%
(vi) Details of shareholders Holdings more than 5% shares in the company:
Equity shares of ` 10 each fully paid up
No. of Shares
% Holdings
No. of Shares
% Holdings
237,154,030
100.00%
234,467,549
98.87%
75,000,000
100.00%
75,000,000
100.00%
50,000,000
-
50.00%
-
50,000,000
49,500,000
50.00%
49.50%
-
-
150,000,000
100.00%
(vii)Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in
cash or by way of bonus shares or shares bought back during the period of five years immediately preceding the reporting
date: Nil
NOTE 4. RESERVES AND SURPLUS
(` in Millions)
Particulars
Securities Premium Reserve
Opening balance
Addition during the year
Deduction during the year
Closing balance
Debenture Redemption Reserve (Refer Note -4.1)
Opening balance
Addition during the year
Closing balance
General Reserve
Opening balance
Addition due to transfer during the year from surplus in the Statement of Profit and Loss
Closing balance
82
As at
March 31, 2016
As at
March 31, 2015
8,657.49
8,657.49
8,657.49
8,657.49
2,203.00
949.00
3,152.00
1,890.00
313.00
2,203.00
463.00
463.00
463.00
463.00
(` in Millions)
Particulars
As at
March 31, 2016
As at
March 31, 2015
1,922.50
550.00
2,472.50
1,415.00
507.50
1,922.50
2,607.09
2,717.32
1,687.28
2,477.26
(652.17)
(132.78)
(278.75)
(34.12)
(550.00)
(949.00)
2,727.59
17,472.58
(592.89)
(100.76)
(35.98)
(7.32)
(507.50)
(313.00)
2,607.09
15,853.08
Special Reserve (Pursuant to Section 45-IC of Reserve Bank of India Act, 1934)
Opening balance
Addition due to transfer during the year from surplus in the Statement of Profit and Loss
Closing balance
Surplus / (Deficit) in Statement of Profit and Loss
Opening balance
Addition: Profit / (Loss) for the year
Less: Appropriations
Interim dividend
Dividend distribution Tax on Interim Dividend
Preference Dividend
Dividend distribution Tax on Preference Shares
Transfer to special reserve as per section 45-IC of the RBI Act, 1934
Transfer to general reserve
Transfer to debenture redemption reserve
Closing balance
Total
NOTE: 4.1. Pursuant to Section 71 of the Companies Act, 2013 read with Rule 18 of the Companies (Share Capital and Debentures Rules,
2014) the Company being an NBFC was required to create debenture redemption reserve of a value equivalent to 25% of the debentures
offered through a public issue. Accordingly, ` 949.00 million (Previous year ` 313.00 million) has been transferred to debenture
redemption reserve account for the financial year ended March 31, 2016.
NOTE 5. LONG TERM BORROWINGS
Non Convertible Debentures
Secured:
Non Convertible Debentures (Refer Note -5.1)
Unsecured:
Amount disclosed under the head “Other Current Liabilities” (Refer Note -8)
Sub-Total (A)
Term Loan
Secured:
Term Loan from Banks (Refer Note - 5.3)
Sub-Total (B)
Total (A+B)
No. of Shares
% Holdings
(` in Millions)
No. of Shares
% Holdings
16,581.04
26,618.12
10,615.12
500.00
9,696.10
26,277.14
9,370.91
35,989.03
24.82
(10,639.94)
-
(500.00)
-
27,374.10
27,374.10
53,651.24
43,807.21
43,807.21
79,796.24
19,853.04
(19,853.04)
-
13,108.83
(13,108.83)
-
The Company has also raised ` 2,432.00 millions (Previous Year ` 11,353.00 millions) and ` 350.00 millions (Previous Year ` 2,550.00
millions) by issue of secured and unsecured non convertible debentures respectively. During the year, the Company has raised secured
term loans aggregating ` 10,300.00 millions (Previous Year ` 29,650.00 millions) from various banks.
The above term loans are secured by way of first pari-passu charge over the current assets in the form of receivables, book debts, bills,
outstanding monies receivables including future movable assets, other than those specifically charged. Out of the total loans from banks,
loans amounting to ` 40,227.52 millions (Previous Year ` 52,916.29 millions) are also guaranteed by Holding Company IIFL Holdings Limited.
IL&FS Trust Company Limited (“ITCL”) acts as a security trustee for all bank borrowings. The security trustee is responsible for ensuring that
the security cover as required for the individual term loans / cash credit / working capital demand loans facilities are being maintained
during the tenure of each of the loans.
Debenture redemption reserve on the NCD’s has been created as disclosed in note 4.1.
83
NOTE 5.1. NON CONVERTIBLE DEBENTURES – SECURED
Particulars
Equity Linked Non Convertible Debentures - Series 042 Type II of Face value
` 1,00,000 Each Redeemable on 28-Feb-2022 at par
Equity Linked Non Convertible Debentures – Series 041 Type II of Face value
Equity Linked Non Convertible Debentures – Series 039 Type II of Face value
` 1,00,000 Each Redeemable on 28-Jan-2022 at par
10.60% Redeemable Non Convertible Debentures of Face Value ` 1,000,000
Each Redeemable on 03-Nov-2021 at par
11% Non-Convertible Debentures of Face value ` 1,000,000
Each Redeemable on 6-Mar-2019
Equity Linked Coupon Non Convertible Debentures of Face Value ` 1,000,000
18-Jan-2019 at par
Zero Coupon Non Convertible Debentures of Face Value ` 1,000,000 16-Jan2019 at premium
Zero Coupon Non Convertible Debentures of Face Value ` 1,000,000
26-Dec-2018 at premium
12-Dec-2018 at premium
27-Nov-2018 at premium
08-Nov-2018 at premium
25-Oct-2018 at premium
12% Secured Redeemable Non Convertible Debentures Option III of
Face Value ` 1,000 Each Redeemable on 30-Sep-2018 at par
12% Redeemable Non Convertible Debentures Option IV of Face Value
` 1,000 Each Redeemable on 30-Sep-2018 at par
13-Sep-2018 at premium
09-Aug-2018 at premium
Zero Coupon Non Convertible Debentures of Face Value ` 1,000,000 13-Jul2018 at premium
Zero Coupon Non Convertible Debentures of Face Value ` 1,000,000 14-Jun2018 at premium
10.55% Non-Convertible Debentures of Face value ` 1,000,000 Each
Redeemable on 11-June-2018
Each Redeemable on 31-May-2018 at par
31-May-2018 at premium
10% Non-Convertible Debentures of Face value ` 1,000,000 Each Redeemable
on 24-May-2018
17-Apr-2018 at premium
Zero coupon Non-Convertible Debentures of Face value ` 1,000,000 Each
Redeemable on 10-Apr-2018 at premium
84
(` in Millions)
Non-Current
As at
As at
March 31, 2016
March 31, 2015
Current
As at
As at
March 31, 2016 March 31, 2015
15.00
18.00
-
-
18.00
35.00
-
-
6.00
19.00
-
-
2,875.00
2,875.00
-
-
2,875.00
2,875.00
-
-
100.00
100.00
-
-
50.00
-
-
-
44.00
-
-
-
34.00
-
-
-
34.00
-
-
-
60.00
-
-
-
30.00
-
-
-
30.00
-
-
-
30.00
-
-
-
130.00
-
-
-
2,701.50
2,711.93
-
-
261.54
267.62
-
-
60.00
-
-
-
250.00
-
-
-
100.00
-
-
-
70.00
-
-
-
100.00
100.00
-
-
1,050.00
1,050.00
-
-
35.00
-
-
-
100.00
100.00
-
-
175.00
-
-
-
40.00
-
-
-
142.00
-
-
-
67.00
67.00
-
-
Particulars
Zero Coupon Non Convertible Debentures of Face Value ` 1,000,000 Each
Equity Linked Non Convertible Debentures – Series 038 of Face value
` 1,00,000 Each Redeemable on 19-Mar-2018 at par
Equity Linked Non Convertible Debentures – Series 042 Type I of Face value
Equity Linked Non Convertible Debentures – Series 042 Type III of Face value
Equity Linked Non-Convertible Debentures of Face value ` 1,000,000
Each Redeemable on 12-Feb-2018
07-Feb-2018 at par
Equity Linked Non Convertible Debentures of Face Value ` 1,000,000
07-Feb-2018 at par
Equity Linked Non Convertible Debentures – Series 040 of Face value
` 1,00,000 Each Redeemable on 29-Jan-2018 at par
Zero coupon Non-Convertible Debentures of Face value ` 1,000,000
Each Redeemable on 23-Jan-2018 at premium
ZERO coupon Secured Redeemable Non Convertible Debentures Series 7
Option I Date of Maturity 09-Jan-2018
Redeemable on 18-Dec-2017 at premium
Each Redeemable on 06-Dec-2017 at premium
ZERO coupon Secured Redeemable Non Convertible Debentures Series 4
Option II. Date of Maturity 20-Nov-2017
Each Redeemable on 02-Nov-2017 at premium
Each Redeemable on 21-Sep-2017 at premium
Each Redeemable on 3-Oct-2017 at premium
Each Redeemable on 11-Oct-2017 at premium
Each Redeemable on 31-Aug-2017 at premium
Each Redeemable on 16-Aug-2017 at premium
Each Redeemable on 03-Jul-2017 at premium
23-Jun-2017 at par
Zero Coupon Secured Redeemable Non –Convertible Debentures of
Face Value ` 1,000 Each Redeemable on 20-Jun-2017 at par
16-Jun-2017 at premium
15-May-2017 at par
Each Redeemable on 29-Apr-2015 at par
Non-Current
As at
As at
March 31, 2016
March 31, 2015
Current
As at
As at
March 31, 2016 March 31, 2015
62.00
62.00
-
-
33.00
33.00
-
-
200.00
-
-
-
130.00
-
-
-
120.00
120.00
-
-
248.00
458.00
-
-
250.00
250.00
-
-
50.00
50.00
-
-
361.00
403.00
-
-
25.00
-
-
-
12.00
-
-
-
275.00
307.00
-
-
152.00
202.00
-
-
34.00
34.00
-
-
30.00
30.00
-
-
60.00
60.00
-
-
40.00
40.00
-
-
610.00
610.00
-
-
40.00
40.00
-
-
61.00
61.00
-
-
39.00
39.00
-
-
91.00
91.00
-
-
170.00
170.00
-
-
180.00
180.00
-
-
120.00
120.00
-
-
21.00
-
-
-
200.00
200.00
-
-
50.00
-
-
-
250.00
-
-
-
-
-
-
350.00
85
Particulars
Equity Linked Non Convertible Debentures – Series 042 Type III of Face value
` 1,00,000 Each Redeemable on 25-Apr-2017 at par
Equity Linked Non Convertible Debentures of Face Value ` 1,000,000
18-Apr-2017 at par
12.15% Non-Convertible Debentures of Face value ` 1,000,000
Each Redeemable on 4-Apr-2017
Each Redeemable on 3-Apr-2016 at premium
Each Redeemable on 03-Apr-2017 at premium
07-Feb-2017 at premium
Equity Linked Non Convertible Debenture –Series i-037 of Face Value
` 1,00,000 Each Redeemable on 21-Nov-2016 at par
Equity Linked Non Convertible Debenture-Series i-036 of face value
Equity Linked Non Convertible Debenture-Series i-035 of Face Value
` 1,00,000 Each Redeemable on 25-Oct-2016 at par
` 1,00,000 each Redeemable on 24-Oct-2016 at par
12% Secured Redeemable Non Convertible Debentures. Option I. of
12% Secured Redeemable Non Convertible Debentures. Option II.of
Zero Coupon Non-Convertible Debentures of Face value ` 1,000,000
Each Redeemable on 6-Sept-2016
Equity Linked Non Convertible Debentures – Series I 32 of Face value
` 1,00,000 Each Redeemable on 02-Sep-2016 at par
Equity Linked Non Convertible Debentures – Series I 31 Face value ` 1,00,000
Each Redeemable on 01-Sep-2016 at par
11.90 % Non-Convertible Debentures of Face value ` 1,000 Each Redeemable
on 18-Aug-2016 at par
11.70 % Non-Convertible Debentures of Face value ` 1,000 Each Redeemable
on 18-Aug-2016 at par
` 1,00,000 Each Redeemable on 18-Aug-2016 at par
` 1,00,000 Each Redeemable on 25-Jul-2016 at par
86
Non-Current
As at
As at
March 31, 2016
March 31, 2015
Current
As at
As at
March 31, 2016 March 31, 2015
-
350.00
350.00
-
350.00
350.00
-
-
250.00
250.00
-
-
50.00
-
-
-
150.00
150.00
-
-
-
220.00
220.00
-
180.00
180.00
-
-
200.00
-
-
-
-
-
30.00
-
-
56.50
56.50
-
-
350.00
350.00
-
-
62.30
62.30
-
-
74.10
74.10
-
-
30.50
30.50
-
-
93.50
93.50
-
-
5,845.21
4,981.88
-
-
840.48
728.44
-
-
50.00
50.00
-
-
59.00
59.00
-
-
13.00
13.00
-
-
2,275.08
2,094.35
-
-
200.49
104.45
-
-
35.00
35.00
-
-
44.70
39.70
-
-
26.70
26.70
-
-
85.20
85.20
-
-
148.40
148.40
-
-
142.50
117.20
-
-
388.90
381.80
-
-
27.50
27.50
-
Particulars
` 1,00,000 Each Redeemable on 27-Jun-2016 at par
Zero coupon Non-Convertible Debentures of Face value 1,000,000
Each Redeemable on 27-Jul-2015 at premium
Total
Non-Current
As at
As at
March 31, 2016
March 31, 2015
Current
As at
As at
March 31, 2016 March 31, 2015
-
146.00
145.50
-
-
74.40
74.40
-
-
266.11
235.70
-
16,581.04
26,618.11
10,615.12
150.00
500.00
NOTE 5.1.1 The above debentures are secured by way of registered mortgage and/or charge over Immovable property and/or current
assets, book debts, receivables (both present and future) and other assets of the Company.
NOTE 5.2. NON CONVERTIBLE DEBENTURES – UNSECURED
Particulars
Redeemable on 24-May-2023 at par
Redeemable on 4-Nov-2022 at par
Redeemable on 30-Aug-2022 at par
Redeemable on 30-Aug-2022 at par
10.50% Non-Convertible Debentures of Face value ` 1,000 Each Redeemable
on 16-Sept-2021 at par
on 10-Sept-2021 at par
Redeemable on 4-Sep-2020 at par
Redeemable on 3-June-2020 at par
Redeemable on 30-Apr-2020 at par
on 30-Mar-2019 (SBMIB VII – 7 years) at par
on 30-Mar-2019 (SBMIB VI - 7 years) at par
on 2-Mar-2019 (SBMIB V – 7 years) at par
Redeemable on 27-Feb-2019 at par
Redeemable on 27-Feb-2019 at premium
Redeemable on 27-Feb-2019 at par
on 23-Feb-2019 (SBMIB IV – 7 years) at par
Zero Coupon Non-Convertible Debentures of Face value ` 1,000,000 Each
Redeemable on 20-Feb-2019 at par (Refer Note - 5.2.1)
on 7-Feb-2019 (SBMIB III – 7 years) at par
on 7-Feb-2019 (SBMIB II – 7 years) at par
on 18-Jan-2019 (SBMIB I – 7 years) at par
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
100.00
100.00
-
-
230.00
230.00
-
-
150.00
150.00
-
-
50.00
50.00
-
-
150.00
-
-
-
200.00
-
-
-
2,000.00
2,000.00
-
-
100.00
100.00
-
-
450.00
450.00
-
-
0.35
0.35
-
-
0.05
0.05
-
-
0.09
0.09
-
-
250.00
250.00
-
-
250.00
250.00
-
-
250.00
250.00
-
-
0.47
0.47
-
-
500.00
500.00
-
-
0.25
0.25
-
-
0.03
0.03
-
-
1.16
1.16
-
-
87
Non-Current
As at
As at
March 31, 2016
March 31, 2015
Particulars
12.75% Non-Convertible Debentures series N5 of Face value ` 1,000 Each
12.75% Non-Convertible Debentures series N6 of Face value ` 1,000 Each
Zero Coupon Non-Convertible Debentures series N7 of Face value ` 1,000
Each Redeemable on 17-Sep-2018 at par
on 04-Apr-2018 (SBDB VI – 6 years) at par
on 30-Mar-2018 (SBDB V – 6 years) at par
on 30-Mar-2018 (SBDB IV – 6 years) at par
on 1-Mar-2018 (SBDB III – 6 years) at par
on 7-Feb-2018 (SBDB II – 6 years) at par
on 23-Jan-2018 (SBDB I – 6 years) at par
on 30-Mar-2017 (SBMIB VI – 5 years) at par
on 30-Mar-2017 (SBMIB VII – 5 years) at par
on 2-Mar-2017 (SBMIB V – 5 years) at par
on 23-Feb-2017 (SBMIB IV – 5 years) at par
on 7-Feb-2017 (SBMIB III – 5 years) at par
on 7-Feb-2017 (SBMIB II – 5 years) at par
on 18-Jan-2017 (SBMIB I – 5 years) at par
Total
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
3,948.53
3,948.53
-
-
600.38
600.38
-
-
451.09
451.09
-
-
1.77
1.77
-
-
1.79
1.79
-
-
1.44
1.44
-
-
2.41
2.41
-
-
2.54
2.54
-
-
3.76
3.76
-
-
-
3.23
3.23
-
-
2.33
2.33
-
-
3.13
3.13
-
-
3.79
3.79
-
-
4.77
4.77
-
-
3.30
3.30
-
9,696.10
4.27
9,370.91
4.27
24.82
-
NOTE 5.2.1 For these non convertible debentures, the company has a call option, after 5 years from the date of allotment subject to prior
approval from the Reserve Bank of India for redemption. These non convertible debentures do not have any put option.
NOTE 5.3. TERM LOANS FROM BANKS - SECURED
(` in Millions)
Non current
Maturities
Rate of interest *
9.01% to 10.0%
10.01 % to 11.00 %
11.01 % to 12.00 %
Total
1-3 years 3 years & above
4,399.66
18,029.44
437.50
22,866.60
1,400.00
3,107.50
4,507.50
Total
5,799.66
21,136.94
437.50
27,374.10
1-3 years 3 years & above
26,573.46
9,486.67
36,060.13
5,592.08
2,155.00
7,747.08
Total
32,165.54
11,641.67
43,807.21
*The rate of interest for the above term loans is linked to the base rates of the banks and is subject to change from time to time. The above categorisation of loans has been
based on the interest rates, prevalent as on the respective reporting dates.
88
NOTE 6. PROVISIONS
(` in Millions)
Particulars
Provision for Employee Benefits
Provision for leave encashment
Provision for gratuity (Refer Note -19.1)
Sub-Total (A)
Other Provisions
Provision for standard assets
Provision for expenses
Provision for Tax {Net of Advance Tax & TDS ` 2,876.96/- (PY: ` 1,653.40/-)}
Proposed Dividend (including Dividend Payable)
Dividend Distribution Tax on Proposed Dividend
Sub-Total (B)
Total (A+B)
Non Current
As at
As at
March 31, 2016 March 31, 2015
Current
As at
March 31, 2016
As at
March 31, 2015
18.41
18.41
18.00
18.00
7.70
4.16
11.86
8.05
1.74
9.79
463.58
463.58
481.99
453.57
453.57
471.57
254.26
284.19
146.85
28.50
713.80
725.66
511.16
452.48
35.98
7.32
1,006.94
1,016.73
NOTE 7. SHORT TERM BORROWINGS
(` in Millions)
Particulars
Secured
Cash credit from banks
Term loan from banks
Loan from financial Institution
Sub-Total
Unsecured
Commercial paper
Less: Unexpired discount on commercial paper
Sub-Total
Total
As at
March 31, 2016
As at
March 31, 2015
4,120.47
1,450.00
5,570.47
3,468.72
1,700.00
1,000.00
6,168.72
20,150.00
(226.33)
19,923.67
25,494.14
25,400.00
(298.15)
25,101.85
31,270.57
The above secured borrowings are secured by way of first pari-passu charge over the current assets in the form of receivables, book
debts, bills, outstanding monies receivables including future movable assets, other than those specifically charged. Out of the above
secured borrowings, ` 4,120.47 million (Previous Year ` 5,166.11 million) are also guaranteed by holding Company IIFL Holdings Limited.
89
NOTE 8. OTHER CURRENT LIABILITIES
(` in Millions)
Particulars
Current Maturities of Long Term Borrowings
Secured Non Convertible Debentures
Unsecured Non Convertible Debentures
Loans from Banks
Sub-total (Refer Note-5)
Others
Payable to group company (Refer Note -38)
Interest accrued but not due on borrowings
Payables on account of assignments / securitization transactions
Temporary overdrawn bank balance as per books
Advances from customers
Contractually reimbursable expenses
Income received in advance
Statutory remittances
Employees salary & benefit payable
Other payables
Sub-total
Total
As at
March 31, 2016
As at
March 31, 2015
10,615.12
24.82
19,853.04
30,492.98
500.00
13,108.83
13,608.83
3,218.55
946.94
3,077.75
557.92
122.63
48.77
50.88
203.70
19.41
8,246.55
38,739.53
6.87
2,324.64
844.22
783.63
77.42
66.91
47.53
192.89
17.31
4,361.42
17,970.25
NOTE 9. TANGIBLE ASSETS
(` in Millions)
Particulars
Cost or valuation as at April 01,2015
Additions
Deductions/Adjustments during the year
As at March 31,2016
Depreciation
Upto April 01,2015
Depreciation for the year
Deductions/Adjustments during the
year
Upto March 31,2016
Net Block as at March 31,2016
131.98
12.12
(20.58)
123.52
126.69
6.26
Electrical
Equipment
349.68
12.69
(111.55)
250.82
245.78
58.49
Furniture
And Fixture
756.04
17.39
(286.33)
487.10
520.60
122.74
Office
Equipment
350.03
4.92
(99.55)
255.40
231.17
61.38
(19.57)
113.38
10.14
5.29
(98.76)
205.53
45.29
103.89
(243.81)
399.53
87.57
235.44
(87.01)
205.54
49.86
118.86
Computer
Premises
Vehicles
Total
283.64
139.36
423.00
26.04
16.50
5.50
3.00
8.50
0.24
1.30
1,876.87
189.48
(518.01)
1,548.34
1,150.52
266.67
42.54
380.46
257.60
1.54
6.96
5.26
(449.14)
968.06
580.28
726.34
NOTE 10. INTANGIBLE ASSETS
(` in Millions)
Particulars
Software/Intangible assets
Cost or valuation as at April 1, 2015
Additions
Deductions / Adjustments during the year
Amortisation
As at April 1, 2015
Amortisation for the year
Up to March 31, 2016
Net Block as at March 31, 2016
90
Amount
6.25
(0.24)
6.01
6.13
0.10
(0.24)
5.99
0.02
0.12
NOTE 11. NON – CURRENT INVESTMENTS
Particulars
Face
Value in `
Number
Amount
(` in Millions)
Number
Amount
Unquoted, Non Trade, Long Term (Valued at Cost)
Investment in Wholly Owned Subsidiary
Equity Shares:
India Infoline Housing Finance Limited (Fully Paid Up)
Preference Shares:
India Infoline Housing Finance Limited - 10% Redeemable (Fully Paid Up)
10
14,968,181
3,404.77
10,900,000
1,005.00
10
20,000,000
300.00
20,000,000
300.00
India Infoline Housing Finance Limited - 6% Compulsorily Convertible
Cumulative Redeemable (Fully Paid Up)
10
-
-
25,000,000
Sub-total (A)
Equity Shares Others:
Credit Information Bureau (India) Limited
Sub-total (B)
Unquoted , Non- Trade ,Non – Current
Mutual Funds:
IIFL India Growth Fund
Sub-total (C)
Non Convertible Debentures for financing real estate projects:
Arch Agro Industries Limited
Assotech Limited
Radius & Deserve Land Developers Pvt Ltd
Roseberry Developers Private Limited
Roseberry Developers Private Limited- (Series B)
Ruchi Priya Developers Private Limited
Shambhavi Realty Private Limited
Sheth Buildwell Private Limited
Nuevo Suncity Private Limited
Sutlej Housing Private Limited
Parinee Realty Private Limited
Renaissance Indus Infra Private Limited
Galleria Developers Private Limited- (Series C)
Wahwa Group Holdings Private Limited
Less: Provision for diminution in the value of investment
Sub-total (D)
Market Linked Debenture:
Reliance Capital Limited (Refer Note - 11.1)
Sub-Total (E)
Grand Total (A+B+C+D+E)
3,704.77
250.00
1,555.00
10
250,000
155.00
155.00
250,000
155.00
155.00
10
4,562,418
50.00
50.00
-
-
10,000
100,000
1,000,000
100,000
65,981
100,000
100,000
100,000
100,000
100,000
100,000
13,131
100,000
100,000
13,073
2,600
120
1,516
4,000
4,000
9,500
16,320
2,634
130.73
260.00
120.00
100.00
400.00
400.00
950.00
1,631.99
34.59
(26.15)
4,001.16
13,073
4,680
2,400
3,000
7,425
959
2,580
700
3,723
10,000
857
11,500
-
130.73
468.00
240.00
300.00
742.50
95.92
258.00
70.00
372.27
1,000.00
85.71
1,150.00
(26.14)
4,886.99
100,000
508
50.80
50.80
7,961.73
448
-
44.80
44.80
6,641.79
NOTE 11.1 Held to cover possible payout in respect of certain structured products issued by the Company.
91
NOTE 12. DEFERRED TAX ASSETS
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:
(` in Millions)
Sr.
No.
a.
b.
c.
d.
e.
Particulars
As at
March 31, 2016
As at
March 31, 2015
500.19
160.43
265.07
1.44
927.13
380.15
156.97
209.41
0.60
52.27
799.40
On Provision for doubtful debts
On Provision for standard assets
On Depreciation
On Gratuity
On Provision for expenses
Total
NOTE 13. LOANS & ADVANCES
(` in Millions)
Particulars
Loans & Advances
- Secured, Considered Good
- Secured, Considered Doubtful (Non-Performing Loans)
- Unsecured, Considered Doubtful (Non-Performing Loans)
- Unsecured, Considered Good
Less: Provision for Doubtful Loans
Sub-total
Others loans & advances
Dues from customers:
- Secured, Considered Good
- Secured, Considered Doubtful (Non-Performing Loans)
- Unsecured, Considered Good (Non-Performing Loans)
Deposits given
Deposit with exchanges
Capital advances:
- Unsecured
Advance Income Tax {Net of Provision for Tax & TDS ` 3,204.08/- (PY: `
2,698,.18/-)}
Sub-total
Total
Non Current
As at
As at
March 31, 2016 March 31, 2015
Current
As at
March 31, 2016
As at
March 31, 2015
46,104.35
1,340.99
41.29
(898.45)
46,588.18
34,579.15
1,405.17
(637.94)
35,346.38
70,481.97
137.89
12.51
208.12
(517.74)
70,332.75
82,876.58
224.00
(321.81)
82,778.77
151.15
-
177.65
-
4,763.73
675.26
8.17
32.00
7,125.78
51.66
5.73
55.00
-
11.08
-
-
842.69
993.84
47,582.02
543.19
731.92
36,078.30
5,479.16
75,801.91
7,238.17
90,016.94
NOTE 14. OTHER ASSETS
(` in Millions)
Particulars
Unamortized debenture issue expenses
Prepaid expenses
Service tax input credit receivable
Staff loans
Others
Total
92
Non Current
As at
As at
March 31, 2016 March 31, 2015
36.91
50.02
86.93
48.87
68.86
117.73
Current
As at
March 31, 2016
As at
March 31, 2015
51.12
91.06
3.09
1.69
32.61
179.57
120.29
127.40
3.03
1.55
90.79
343.06
NOTE 15. CURRENT INVESTMENTS: (VALUED AT COST OR MARKET VALUE WHICHEVER IS LOWER UNLESS STATED OTHERWISE)
Particulars
Quoted, Trade, Current
Bonds:
8.48% NHAI -2028
7.35% NHAI -2031
Sub-total (A)
Government Securities:
7.16% Government Security – 2023
Sub-Total (B)
Mutual Funds:
Kotak Bond Plan A
HDFC Monthly Income Plan-Long Term Plan-Growth
Birla Sunlife Income Plus Growth
Reliance Fixed Horizon Fund
ICICI Prudential Gilt fund
ICICI Prudential Value Fund Series 6 (Div)
ICICI Prudential Value Fund Series 6 (G)
Birla Sunlife Fixed Term Plan SR IP Regular
Subtotal (C)
Total Quoted Investment (A+B+C) {I}
Unquoted , Non- Trade ,Current
Mutual Funds:
DWS Ultra Short Term Fund
IIFL Liquid Fund Regular Growth
Subtotal (D)
Assotech Limited
Renaissance Indus Infra Pvt. Ltd.
Sheth Buildwell Private Ltd
Pratibha Impex Private Limited
Roseberry Developers Private Limited- Series B
Wadhwa Constructions and Infrastructures Private Limited
Sub Total (E)
Unquoted, Trade, Current
Mutual Funds:
Indiareit Apartment Fund
IIFL Income Opportunities Fund
IIFL National Development Agenda Fund
IIFL Income Opportunities - Special Situation Class B
IIFL Real Estate Fund ( Domestic) Series 1 Class B
IIFL Real Estate Fund ( Domestic) Series 1 Class C
Subtotal (F)
Total Unquoted Investment (D+E+F) {II}
Grand Total {I+II}
Face
Value in `
Number
Amount
(` in Millions)
Number
Amount
1,000,000
1,000
105,974
109.57
109.57
90
-
98.39
98.39
100
100
-
-
5,000,000
10,000,000
450.50
1,029.40
1,479.90
-
10
10
10
10
10
10
10
10
8,438,732
13,781,672
5,638,900
13,703,744
-
337.95
393.33
355.48
380.98
1,467.74
1,577.31
12,114,297
17,878,898
7,493,687
20,000,000
500,000
2,500,000
3,500,000
483.30
508.30
470.80
200.00
5.00
25.00
38.76
1,731.16
3,309.45
10
10
1,000
-
-
73,501,223
11,230,487
8,986
1,130.00
120.00
10.00
1,260.00
100,000
100,000
100,000
100,000
100,000
29,443
100,000
100,000
100,000
100,000
2,459
492
25
2,000
2,905
4,000
-
245.88
49.24
2.49
200.00
85.53
400.00
983.14
520
137
2,000
1,600
5,000
2,000
300
6,027
52.00
13.67
200.00
160.00
500.00
200.00
30.00
602.73
1,758.40
100,000
1
10
10
10
57
96
58,351,970
9,713,024
25,542,335
7,500,000
10.61
69.78
100.00
275.03
186.50
641.92
1,625.06
3,202.37
9,890,182
9,713,024
5,857,833
214
7,500,000
102.91
100.00
59.53
554.54
816.98
3,835.38
7,144.83
93
Particulars
Aggregate cost of quoted mutual fund units
NAV of quoted mutual fund units
Aggregate cost of quoted investments
Aggregate market value of quoted investments
Aggregate cost of unquoted investments
Face
Value in `
Number
Amount
1,467.75
1,544.99
1,577.32
1,653.98
1,625.05
(` in Millions)
Number
Amount
1,731.16
1,735.60
3,309.45
3,356.73
3,835.38
NOTE 16. CASH AND BANK BALANCE
(` in Millions)
Current
Particulars
Cash and Cash Equivalents
Cash on hand
Balance with Banks:
- In Current accounts
Subtotal (A)
Other Banks Balances
Deposits pledged with banks as margin for credit enhancement/ guarantees for credit enhancement/ lien
against loans taken (Refer Note 16.1)
Deposits with original maturity for more than three months but less than twelve months
Subtotal (B)
Total (A + B)
As at
March 31, 2016
As at
March 31, 2015
126.06
443.83
3,554.71
3,680.77
7,260.20
7,704.03
2,127.67
51.57
2,179.24
5,860.01
2,419.72
2.08
2,421.80
10,125.83
NOTE 16.1. DETAILS OF FIXED DEPOSITS
(` in Millions)
Breakup of Fixed Deposits
Amount
Lien Marked
First Loss Credit Enhancement
Second Loss Credit Enhancement
Free fixed deposits
Interest accrued on fixed deposits
Total
516.85
1,424.30
186.52
28.83
22.74
2,179.24
NOTE 17. REVENUE FROM OPERATIONS
(` in Millions)
Particulars
Income from financing activities
Profit from sale of investments (Net)
Dividend Income
Total
94
2015-2016
2014-2015
19,925.09
734.57
54.65
20,714.31
20,468.00
285.67
100.78
20,854.45
NOTE 18. OTHER INCOME:
(` in Millions)
Particulars
Processing fee
Interest on fixed deposits
Administration fee & other charges from customer
Miscellaneous income
Total
2015-2016
2014-2015
390.72
198.59
620.90
148.90
1,359.11
357.08
154.91
263.86
136.09
911.94
NOTE 19. EMPLOYEE BENEFIT EXPENSES
(` in Millions)
Particulars
Salaries
Contribution to and provision for :
- Provident and other Funds (Refer note - 19.2)
- Leave encashment
- Gratuity
Staff welfare expenses
Total
2015-2016
2014-2015
1,812.08
1,872.36
96.13
12.58
17.61
82.15
2,020.55
75.44
12.24
4.89
68.02
2,032.95
NOTE 19.1. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD (AS) 15 REVISED “EMPLOYEE BENEFIT”
(` in Millions)
Particulars
Assumptions
Discount rate
Salary escalation
Rate of return on plan assets
Change in Benefit Obligation
Liability at the beginning of the year
Interest cost
Current service cost
Liability transferred in
Liability transferred out
Benefit paid
Actuarial (Gain)/ loss on obligations
Liability at the end of the year
Amount Recognised in the Balance Sheet
Fair value of plan assets at the end of the year
Funded status (Surplus)
Net (Liability)/Asset recognised in the Balance Sheet
Expense recognised in profit and loss statement
Interest cost
Expected return on plan assets
Benefit paid
Actuarial (Gain) or loss
Expense recognised in profit and loss statement
2015-2016
2014-2015
7.84%
5.00%
7.84%
7.89%
5.00%
7.89%
43.85
3.46
13.07
0.93
(3.32)
(12.71)
2.38
47.66
40.31
3.68
14.60
2.19
(0.73)
(3.08)
(13.12)
43.85
(47.66)
43.50
(4.16)
(4.16)
(43.85)
42.11
(1.74)
(1.74)
3.45
13.07
(3.32)
4.41
17.61
3.69
14.60
(0.15)
(13.25)
4.89
95
(` in Millions)
Particulars
Balance sheet reconciliation
Opening net liability
Net transfer in
Net transfer out
Expenses as above
Employers contribution
Net Liability/(Asset) recognised in the Balance Sheet
2015-2016
2014-2015
1.74
0.93
(3.32)
17.61
(12.80)
4.16
38.59
2.19
(0.73)
4.89
(43.20)
1.74
NOTE 19.2. DEFINED CONTRIBUTION PLANS
The Company has also recognised the following amount as an expense:
(` in Millions)
Particulars
Contribution to provident and other fund
2015-2016
2014-2015
79.91
54.07
NOTE 20. FINANCE COST
(` in Millions)
Particulars
Interest expense
Other borrowing cost
Total
2015-2016
2014-2015
12,629.77
212.75
12,842.52
12,488.58
213.89
12,702.47
NOTE 21. DEPRECIATION AND AMORTISATION EXPENSES
(` in Millions)
Particulars
Depreciation on Tangible Assets (Refer Note -9)
Amortisation of Intangible Assets (Refer Note -10)
Total
96
2015-2016
2014-2015
266.67
0.10
266.77
312.11
0.10
312.21
NOTE 22. OTHER EXPENSES
(` in Millions)
Particulars
Advertisement
Books & periodicals
Bank charges
Communication
Corporate Social Responsibility Expenses (Refer Note -40)
Direct operating expenses
Electricity charges
Exchange & statutory charges
Insurance Premium
Legal & professional fees
Loss on sale of fixed assets
Marketing expenses
Membership & subscription charges*
Miscellaneous expenses
Office expenses
Postage & courier
Printing & stationery
Rent
Rates & taxes
Repairs & Maintenance:
- Computer
- Others
Remuneration to Auditors:
- Audit fees
- Certification expenses
- Out of pocket expenses
Software charges
Travelling & conveyance
Total
2015-2016
2014-2015
43.04
0.48
41.16
74.19
59.52
45.52
84.23
15.47
25.24
202.71
6.97
243.15
0.00
4.37
262.35
30.86
36.01
446.78
4.67
51.07
0.78
47.03
80.15
13.70
66.74
94.16
25.64
53.49
147.97
2.41
333.46
0.10
7.95
350.42
22.18
53.07
485.48
1.18
10.46
32.81
7.85
40.01
1.19
0.10
56.04
184.66
1,911.98
1.19
0.05
0.07
6.70
180.76
2,073.56
*amount is less than ` 0.01 million, hence shown as 0.00 million wherever applicable
NOTE 23. PROVISIONS AND WRITE OFF
(` in Millions)
Particulars
Bad debts written off
Provision for contingencies
Provision for diminution in the value of investments
Provision for doubtful loans (Non Performing Assets)
Provision for standard loans
Total
2015-16
2014-15
412.63
1.73
456.45
10.00
880.81
43.22
258.01
14.40
416.45
199.75
931.83
97
NOTE 24. BASIC AND DILUTED EARNINGS PER SHARE (EPS) COMPUTED IN ACCORDANCE WITH ACCOUNTING STANDARD (AS)
20 “EARNINGS PER SHARE”
(` in Millions)
Particulars
Basic EPS
Profit after Tax as per statement of profit and loss(` in millions)
Less: Preference Dividend & DDT on Preference Dividend (` in millions)
Profit after Tax attributable to Equity shareholders (` in millions)
Weighted average number of equity shares outstanding
Basic EPS (`)
Diluted EPS
Profit after Tax as per statement of profit and loss(` in millions)
Less: Preference Dividend & DDT on Preference Dividend (` in millions)
Profit after Tax attributable to Equity shareholders(` in millions)
Add: Potential Equity Shares on account of grant of Employees Stock Options
Diluted EPS (`)
Face Value per share
A
B
A/B
C
D
C/D
As at
March 31, 2016
As at
March 31, 2015
2,717.32
312.87
2,404.45
237,154,030
10.1
2,477.26
43.30
2,433.96
237,154,030
10.3
2,717.32
312.87
2,404.45
237,154,030
780,040
237,934,070
10.1
10.0
2,477.26
43.30
2,433.96
237,154,030
237,154,030
10.3
10.0
NOTE 25. CONTINGENT LIABILITIES AS ON MARCH 31, 2016 ARE AS FOLLOWS
(` in Millions)
Sr.
No.
(i)
(ii)
Particulars
In respect of Income Tax Demands (Refer note 25.1)
Legal suits filed by the consumers in Consumer Forum and Civil Court
Total
As at
March 31, 2016
As at
March 31, 2015
257.84
257.84
161.87
0.20
162.07
NOTE 25.1. The Company has filed appeal against the said demands raised by the department.
NOTE 26. The Company is subject to legal proceedings and claims which have arisen in the ordinary course of the business. The
Company’s management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have
material and adverse effect on the Company’s financial position.
NOTE 27. UNDISBURSED SANCTIONED LOANS
As on the balance sheet date there were undisbursed sanctioned loans of ` 9,549.50 million.
NOTE 28. As on the Balance Sheet date, there were outstanding commitments of capital expenditure of ` 17.98 million (Net of advances)
(Previous Year ` 5.06 million), out of the total contractual obligation entered up to the end of the year.
98
NOTE 29. DETAILS OF PROPOSED PREFERENCE DIVIDEND
Particulars
Proposed Dividend
On 8% Compulsorily Redeemable Non- Convertible Non Cumulative Preference Shares of ` 10 each
Number of shares
Dividend (A) (` in Millions)
On 8% Compulsorily Redeemable Non Convertible Cumulative Preference Shares of ` 10 each
Number of shares
Dividend (B) (` in Millions)
On 9.25% Compulsorily Redeemable Non Convertible Cumulative Preference shares of ` 10 each
Number of shares
Dividend (C) (` in Millions)
Total (A+B+C) (` in Millions)
2015-16
2014-15
` 0.8 Per share
75,000,000
60.00
` 0.8 Per share
100,000,000
80.00
140.00
` 0.8 Per share
75,000,000
30.25
` 0.8 Per share
100,000,000
3.07
` 0.9 Per share
150,000,000
2.66
35.98
NOTE 30. The Company has taken office premises on operating lease at various locations. Lease rents in respect of the same have been
charged to statement of Profit and Loss. 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 180 days. The minimum Lease rentals outstanding as at March 31, 2016 are as under:
(` in Millions)
Minimum Lease Payments
Upto One year
One to Five years
Total
As at
March 31, 2016
As at
March 31, 2015
43.99
0.45
44.44
50.80
0.95
51.75
NOTE 31. The Company operates from and uses the premises, infrastructure and other facilities and services as provided to it by its
holding Company/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/recoverable 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.
NOTE 32. SEGMENT REPORTING
In the opinion of the management, there is only one reportable business segment (Financing & Investing) as envisaged by Accounting
Standard - 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.
NOTE 33. DETAILS OF DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES
Other current liabilities includes ` Nil/- (Previous year: ` Nil) payable to“Suppliers”registered under the Micro, Small and Medium Enterprises
Development Act, 2006. No interest has been paid / is payable by the Company during the year to “Suppliers” registered under this act.
The aforementioned is based on the responses received by the Company to its inquiries with suppliers with regard to applicability under
the said Act.
NOTE 34. RETURN ON ASSETS
The return on assets for the financial year 2015-16 was 1.8% (Previous year 1.8%).
99
NOTE 35. The Company has implemented “India Infoline Finance Limited Employees Stock Options Scheme-2015” (IIFL ESOP 2015) and
has outstanding options granted under the said scheme. The options are granted by the Nomination & Remuneration Committee vest in
graded manner and must be exercised within the specified period as per the IIFL ESOP 2015.
(A) The details of the Employee Stock Option Schemes is as under:
ESOP 2015
Particulars
No. of options as on March 31, 2016
Method of accounting
Vesting plan
Exercise period
Grant Dates
Grant Price (` Per Share)
Book Value on the date of Grant of Option (` Per Share)
780,040
Intrinsic Value
Please refer the schedule below
Maximum 7 years from the date of grant.
2-Dec-2015 and 9-Mar-2016
83.00
83.00
Vesting Proportion
Schedule of vesting
On first anniversary of the grant
On second anniversary of the grant
On third anniversary of the grant
On fourth anniversary of the grant
10%of the options granted
(B) Movement of option Granted
ESOP 2015
Particulars
Options outstanding at the beginning of the year
Granted during the year
Exercised during the year
Lapsed during the year
Options outstanding at the end of the year
780,040
780,040
NOTE 36. During the year under review, the Company had come across frauds totalling to ` 13.28 millions (Previous year ` 41.46
millions) in respect of our lending operations. Out of the above ` 2.83 millions (Previous year ` 23.32 millions) has already been recovered.
Suitable action has been taken by the Company to recover the balance amounts.
NOTE 37. As on March 31, 2016 the gold loan portfolio comprises 20.33% (Previous year 24.85%) of the total assets of the Company.
NOTE 38. Disclosures in respect of applicability of AS – 18 Related Party Disclosures:
(a) Related parties where control exists:
Nature of relationship
Name of party
Holding Company
Direct Subsidiaries
Fellow Subsidiaries
India Infoline Housing Finance Limited
India Infoline Commodities Limited
India Infoline Media & Research Services Limited
IIFL Capital Limited
India Infoline Limited (Formerly India Infoline Distribution Company Limited)
India Infoline Insurance Services Limited
India Infoline Insurance Brokers Limited
IIFL Realty Limited
India Infoline Commodities DMCC
IIFL Wealth (UK) Limited
IIFL Capital Inc.
IIFL Asset Reconstruction Company Limited
100
Nature of relationship
Name of party
Group Companies
IIFL Distribution Services Limited (Formerly IIFL Distribution Services Private Limited)
IIFL Investment Advisor and Trustee Services Limited (Formerly IIFL Trustee Services Limited)
India Alternative Investment Advisors Private Limited
India Infoline Trustee Company Limited
India Infoline Asset Management Company Limited
IIFL Alternate Asset Advisors Limited
IIFL (Asia) Pte. Limited
IIFL Capital Pte. Limited
IIFL Securities Pte Limited
IIFL Private Wealth Hong Kong Limited
IIFL Private Wealth (Mauritius) Limited
IIFL Private Wealth Management (Dubai) Limited
IIFL Inc.
IIFL Private Wealth (Suisse) SA.
IIFL Properties Private Limited (Formerly Ultra Sign and Display Private Limited)
India Infoline Foundation
IIFL Wealth Finance Limited (Formerly Chephis Capital Markets Limited)
Nirmal Jain
Rajashree Nambiar
R. Venkataraman
Madhu Jain (Spouse of Mr. Nirmal Jain)
Valentino S. Peter (Spouse of Mrs. Rajashree Nambiar)
Orpheus Trading Private Limited
Ardent Impex Private Limited
Other Related Parties
(b) Significant Transaction with Related Parties:
(` in Millions)
Nature of Transaction
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
Key
Management
Personnel /
others
0.75
(0.16)
0.78
(7.74)
22.13
(2.75)
0.09
11.93
(7.69)
1.87
(2.90)
0.94
(0.42)
114.24
(51.81)
-
1.00
45.44
-
-
Total
0.75
(0.16)
(7.83)
114.24
(51.81)
0.78
(7.74)
22.13
(2.75)
1.00
45.44
0.09
11.93
(7.69)
1.87
(2.90)
0.94
(0.42)
Interest Income
India Infoline Limited (Formerly India Infoline
Distribution Company Limited)
India Infoline Media and Research Services Limited
IIFL Investment Adviser Trustee Services Limited
IIFL Alternate Assets Advisors Limited
IIFL Facilities Services Limited( Formerly Known As
IIFL Realty Limited)
(7.83)
-
-
101
(` in Millions)
Key
Management
Personnel /
others
4.21
-
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
-
-
3.32
(3.23)
-
-
-
2.53
(2.80)
-
0.14
(3.50)
-
0.29
(0.11)
23.25
7.31
(4.30)
0.08
0.12
(0.99)
-
0.02
-
86.65
(31.36)
-
-
-
18.67
(6.98)
-
-
18.67
(6.98)
-
226.07
(42.58)
-
-
-
226.07
(42.58)
-
-
-
-
0.49
-
0.49
-
0.07
Arranger/Management /Marketing Support / Processing fees / Advisory expenses
3.42
IIFL Alternate Advisors Limited
(0.95)
Rent Expenses
78.91
(71.00)
IIFL Properties Private Limited (Formerly Ultra Sign
and Display Private Limited)
Commission/ Brokerage Expense
0.58
(0.32)
-
-
-
0.07
-
-
-
-
3.42
(0.95)
-
1.42
(0.38)
-
78.91
(71.00)
1.42
(0.38)
-
-
-
0.58
(0.32)
Mrs.Madhu Jain
Total
3.32
(3.23)
2.53
(2.80)
4.21
-
Interest Expense
IIFL Wealth Finance Limited (Formerly Chephis Capital
Markets Limited)
Service Charges Income
Referral Fees Income
Interest Income Reversal
Mrs.Madhu Jain
Donation Paid
102
-
0.29
(0.11)
0.12
23.25
0.14
(3.50)
7.31
(4.30)
0.08
0.02
86.65
(31.36)
(0.99)
(` in Millions)
Director’s Remuneration
Preference Dividend
Equity Dividend
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
Key
Management
Personnel /
others
-
-
-
-
73.51
(46.72)
73.51
(46.72)
31.78
-
-
76.13
(35.00)
-
1.53
-
-
76.13
(35.00)
31.78
1.53
-
644.79
(586.17)
-
-
-
-
644.79
(586.17)
515.00
(3,190.00)
-
540.00
(360.00)
469.90
-
(300.00)
-
540.00
(360.00)
515.00
(3,190.00)
2,750.00
(1,467.58)
150.00
469.90
10.00
7,870.00
(300.00)
(300.00)
-
540.00
(360.00)
515.00
(3,190.00)
7,870.00
150.00
10.00
469.90
2,750.00
(1,467.58)
(300.00)
-
-
500.00
(500.00)
Total
ICD Taken
Markets Limited)
2,750.00
(1,467.58)
150.00
10.00
7,870.00
-
ICD Returned
Markets Limited)
515.00
(3,190.00)
-
540.00
(360.00)
7,870.00
150.00
10.00
2,750.00
(1,467.58)
-
469.90
-
-
500.00
(500.00)
-
ICD Given
103
(` in Millions)
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
(500.00)
-
1,815.30
(97.50)
490.00
(2,543.42)
2,387.00
(435.50)
257.00
(16.00)
3.50
309.00
(465.00)
543.00
(1,069.50)
-
6,609.50
(4,708.50)
-
25.00
4,747.50
61.50
(40.00)
Key
Management
Personnel /
others
-
(500.00)
-
500.00
(500.00)
1,815.30
(97.50)
490.00
(2,543.42)
2,387.00
(435.50)
309.00
(465.00)
257.00
(16.00)
3.50
543.00
(1,069.50)
6,609.50
(4,708.50)
-
4,747.50
25.00
-
-
Total
(500.00)
1,815.30
(97.50)
6,609.50
(4,708.50)
25.00
490.00
(2,543.42)
2,387.00
(435.50)
4,747.50
257.00
(16.00)
3.50
309.00
(465.00)
543.00
(1,069.50)
61.50
(40.00)
500.00
(500.00)
(500.00)
1,815.30
(97.50)
6,609.50
(4,708.50)
490.00
(2,543.42)
2,387.00
(435.50)
309.00
(465.00)
4,747.50
257.00
(16.00)
3.50
25.00
543.00
(1,069.50)
ICD Received Back
104
-
(` in Millions)
Loans Given
Mrs.Madhu Jain
Loans Received Back
Mrs.Madhu Jain
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
-
-
-
61.50
(40.00)
Key
Management
Personnel /
others
-
-
-
-
-
1,701.48
-
1,701.48
-
-
-
-
-
1,701.48
-
1,701.48
-
-
150.00
-
-
-
-
150.00
-
-
150.00
-
-
-
-
150.00
-
-
-
1,000.00
-
-
-
1,000.00
-
-
850.06
(1,941.21)
(1,009.78)
-
-
-
(1,009.78)
850.06
(1,941.21)
919.19
-
550.00
(897.06)
(1,162.76)
-
-
-
919.19
550.00
(897.06)
(1,162.76)
-
116.27
(205.56)
(0.04)
(0.18)
21.99
-
-
-
116.27
(205.56)
21.99
(0.04)
(0.18)
(5.47)
-
101.57
(30.94)
0.20
(0.45)
0.01
(1.19)
0.01
-
-
-
-
-
-
-
101.57
(30.94)
(5.47)
0.20
(0.45)
0.01
(1.19)
0.01
-
Total
61.50
(40.00)
NCD Issue
NCD bought back
Investment in subsidiary
Sale of Investment (Net)
Purchase of Investment (Net)
Allocation / Reimbursement of expenses paid
Allocation / Reimbursement of expenses paid others
India Infoline Insurance services Limited
-
105
(` in Millions)
Allocation / Reimbursement of expenses received
Allocation / Reimbursement of expenses received others
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
-
0.29
0.14
(0.30)
4.14
(1.02)
-
-
Key
Management
Personnel /
others
-
0.21
-
2.83
4.64
0.13
6.18
(73.27)
(2.39)
6.28
(26.87)
-
-
-
6.28
(26.87)
0.21
2.83
4.64
0.13
6.18
(73.27)
(2.39)
0.29
(0.73)
-
0.06
1.52
(0.60)
0.16
1.99
(0.12)
1.16
0.32
(1.38)
0.26
-
-
-
0.06
1.52
(0.60)
0.16
0.29
(0.73)
0.26
1.99
(0.12)
1.16
0.32
(1.38)
(600.00)
(500.00)
-
-
-
-
(500.00)
(600.00)
(17.56)
(7.40)
-
-
-
-
(7.40)
(17.56)
Total
0.29
4.14
(1.02)
0.14
(0.30)
Sale of Preference Shares
Capital Gains on Sale of Preference Shares
106
(` in Millions)
Allotment of Preference shares
Capital Gain on Sale of Investment
Conversion of Preference Shares
Sale of Portfolio (Assignment/Securitization)
Guarantee Commission
Payable towards Assignment Transaction
Receipt towards Assignment Transaction
Receipt towards Other Transaction
Payable towards Other Transaction
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
Key
Management
Personnel /
others
(1,250.00)
-
(2,000.00)
-
-
-
(1,250.00)
(2,000.00)
-
0.99
(20.34)
-
-
-
0.99
(20.34)
-
-
1,399.77
-
-
-
1,399.77
-
-
-
(834.76)
-
-
(834.76)
-
0.79
(0.15)
1.14
(1.09)
5.23
(2.38)
-
-
-
0.79
(0.15)
1.14
(1.09)
5.23
(2.38)
-
-
223.83
(145.99)
-
-
223.83
(145.99)
-
-
373.15
(640.12)
-
-
373.15
(640.12)
-
-
(21.62)
-
-
(21.62)
-
-
4.40
-
-
-
4.40
-
Total
Note: ICD transactions are excluding intraday funding
107
(c) Closing balance:
(` in Millions)
Sundry payable
IIFL Realty Limited
Sundry Receivable
India Infoline Limited
Collateral given (On behalf of)
IIFL Realty Limited
IIFL Insurance Brokers Limited
India Infoline Media and Research Services
Limited
Holding
Company
Fellow
Subsidiaries
Direct
Subsidiaries
Group
Companies
Key
Manage-ment
Personnel /
others
-
(6.87)
(0.18)
0.50
(58.34)
-
-
-
(6.87)
0.50
(58.34)
(0.18)
-
0.78
-
-
-
-
0.78
-
-
(1680.00)
(200.00)
(130.00)
-
-
-
(1680.00)
(200.00)
(130.00)
Total
NOTE 39. DISCLOSURE OF LOAN AND ADVANCES PURSUANT TO REGULATION 53(F) OF THE SECURITIES AND EXCHANGE
BOARD OF INDIA (LISTING OBLIGATION AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
(` in Millions)
Name of Related Party
IIFL Realty Limited
Balance on
March 31, 2016
Maximum outstanding
during the year
-
2,556.00
500.00
47.00
185.00
1,420.00
300.00
NOTE 40. CORPORATE SOCIAL RESPONSIBILITY
During the financial year 2015-16, the Company has spent ` 59.52 million (P.Y. ` 13.70 million) out of the total amount of ` 59.52 million
(P.Y. ` 44.36 million) required to be spent as per section 135 of the Companies Act 2013 in respect of Corporate Social Responsibility
(CSR). The Company was focused on implementing the projects identified by the CSR Committee and had successfully completed most
of the projects. The Company had substantially utilised the amount required to be spent on CSR projects. The Company has many
ongoing projects and plans to further increase the spend in the years to come through its impact driven projects.
NOTE 41. DISCLOSURE AS REQUIRED UNDER NOTIFICATION NO. DNBR (PD) CC. NO.053/03.10.119/2015-16
JULY 01, 2015 ISSUED BY RESERVE BANK OF INDIA:
i. Capital Adequacy Ratio: DATED
(` in Millions)
Name of Related Party
CRAR (%)
CRAR - Tier I Capital (%)
CRAR - Tier II Capital (%)
Amount of subordinate debt raised as Tier- II capital
Amount raised by issue of perpetual debt Instruments.
108
Balance on
March 31, 2016
Maximum outstanding
during the year
17.71%
11.66%
6.05%
350
-
18.02%
11.26%
6.76%
2,550
-
ii.
Disclosure of Investments:
(` in Millions)
Sr.
No.
(1)
(2)
Particulars
As at
March 31, 2016
As at
March 31, 2015
11,164.11
11,164.11
26.15
26.15
11,137.96
11,138.00
-
13,812.76
13,812.76
26.15
26.15
13,786.61
13786.61
-
26.15
26.15
11.75
26.15
11.75
26.15
Value of Investments
(i)
Gross value of Investments
(a) In India
(b) Outside India
(ii) Provision for depreciation/diminution
(a) In India
(b) Outside India
(iii) Net value of Investments
(a) In India
(b) Outside India
Movement of provisions held towards depreciation on investments
(i)
Opening Balance
(ii) Add: Provision made during the year
(iii) Less: Write -off / write-back of excess provisions during the year
(iv) Closing balance
iii.Derivatives
a) Forward Rate Agreement / Interest Rate Swap
The company transacts in Interest Rate Swap, however the outstanding position as on March 31, 2016 is Nil
b) Exchange Traded Interest Rate (IR) Derivatives
The company is not carrying out any activity of providing Derivative cover to the third parties
c) Disclosures on Risk Exposure in Derivatives
The company undertakes transactions in derivative products in the role of a user with counter parties. The company deals in
derivatives for balance sheet management i.e. hedging fixed rate, floating rate and for hedging the variable interest in case of
benchmark linked debentures. All derivatives are marked on reporting dates and the resulting loss (if any) is recorded in the
statement of profit and loss.
Dealing in derivatives is carried out by the specific group of treasury department of the company based on the purpose of the
transaction.
The company has a credit and market risk department that assesses counterparty risk and market risk limits, within the risk
architecture and processes of the company. The company has in place a policy which covers various aspects that apply to the
functioning of the derivative business.
iv. Disclosures pertaining to securitisation transactions:
The Company sells loans through securitisation and direct assignment.
A)The information on securitisation of the Company as an originator in respect of securitization transaction done during the
year is given below:
(` in Millions)
Particulars
Total number of Loan Assets under par structure
Total book value of loan assets
Sale consideration received
March 31,2016
March 31,2015
44,933
5,872.08
5,818.03
47,071
4,868.13
4,835.06
109
B)The information on securitisation of the Company as an originator in respect of outstanding amount of securitised assets
is given below:
(` in Millions)
Particulars
Number of SPVs sponsored by the company for outstanding securitisation transactions
Total amount of securitised assets as per books of SPVs sponsored by company
Total amount of exposures retained by the company to comply with MRR as on the
date of Balance Sheet
a) Off - Balance sheet exposures
First Loss
Others
b) On - Balance sheet exposures
First Loss
Investment in PTC
Overcollateralization
Amount of exposures to securitisation transaction other than MRR
i) Exposures to own securitizations
First Loss
Others
ii) Exposures to third party securitizations:
First Loss
Others
i) Exposures to own securitizations
First Loss
Others
ii) Exposures to third party securitisations:
First Loss
Others
March 31,2016
March 31,2015
15
6,356.54
-
9
5,792.46
-
100.0
-
55.90
-
1,131.70
36.06
87.13
653.47
70.59
33.07
55.10
55.10
-
-
186.52
106.42
-
-
C)The information on direct assignment of the Company as an originator in respect of par transaction done during the year
is given below:
(` in Millions)
Particulars
Total number of loan assets under par structure (in numbers)
Total book value of loan assets
Sale consideration received
110
March 31,2016
March 31,2015
1,046
4,719.18
4,247.26
1,372
8,149.93
7,398.86
D)The information on direct assignment of the Company as an originator in respect of outstanding amount of assets
assigned under par structure is given below:
(` in Millions)
Particulars
Number of transactions assigned by the Company (in numbers)
Total amount outstanding
Total amount of exposures retained by the company to comply with MRR as on the date of
Balance Sheet
First loss
Others
First loss
Investment in PTC
Exposures to own assigned transactions
Amount of exposures to assigned transaction other than MRR
i) Exposures to own assigned transactions
First loss
Others
ii) Exposures to third party assigned transactions
First loss
Others
i) Exposures to own assigned transactions
First loss
Others
ii) Exposures to third party assigned transactions
First loss
Others
v.
March 31,2016
March 31,2015
11
9,478.18
-
8
8961.76
-
-
-
292.60
905.64
-
292.60
835.20
-
-
-
-
-
-
-
-
-
Asset liability management maturity pattern:
Particulars
Deposits
Advances
Investments
Borrowings
Foreign currency assets
Foreign currency liabilities
Upto
30/31 days
12,394.33
400.06
6,090.40
-
Over 1
month
upto
2 month
9,814.38
2.49
17,652.76
-
Over 2
months
upto
3 months
9,635.68
2,849.61
-
Over 3
months &
upto
6 months
16,560.41
258.41
12,465.52
-
Over 6
months
& upto
1 year
23,141.00
1,003.88
14,456.46
-
Over 1
year
& upto
3 year
26,438.62
5,072.58
42,397.12
-
Over 3
year
& upto
5 year
8,910.00
760.58
9,932.50
-
Over
5 years
Total
12,138.01
3,704.77
3,794.00
-
119,032.43
11,202.77
109,638.37
-
111
vi. Exposure to Real Estate Sector
(` in Millions)
Category
a)
b)
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.
(ii) Commercial Real Estate
Lending secured by mortgages on commercial real estate (office buildings, retail space,
multi-purpose commercial premises, multi-family residentail building, multi tenanted
commercial premises. industrial or warehouse space, hotels, land acquisition, development and
construction, etc.) Exposure would also include non-fund based limits.
(iii) Investments in Mortgage back securities (MBS) and other securitised exposure
(a) Residential
(b) Commercial Real estate.
Total Exposure to Real Estate Sector
Indirect Exposure
Fund based and non-fund based exposures on National Housing Bank(NHB)and Housing
(i)
Finance Companies(HFCs).
(ii) Investment in Real Estate Fund
Total Indirect Exposure
As at
March 31, 2016
As at
March 31, 2015
13,790.15
34,854.40
20,892.86
8,465.91
4,879.72
39,562.73
6,540.80
49,861.10
3,704.77
1,555.00
186.49
3,891.26
554.54
2,109.54
vii. Exposure to Capital Market:
(` in Millions)
Sr. No.
Particulars
Direct investment in equity shares, convertibles bonds, convertible debentures and unit of equityoriented mutual funds the corpus of which is not exclusively invested in corporate debt;
(ii)
Advances against shares/bonds/debentures or other securities or on clean basis to individuals for
investments in shares ( including IPOs/ ESOPs), convertible bonds, convertible debentures, and unit
of equity-oriented mutual funds;
(iii)
Advances for any other purpose where shares or convertible bonds or convertibles debentures or
units of equity-oriented mutual funds are taken as primary security;
(iv)
Advances for any other purposes to the extent secured by the collateral security of shares or
convertible bonds or convertible debentures or unit or equity-oriented mutual funds i.e. where the
primary security other than shares/ convertible bonds / convertible debentures / units of equityoriented mutual funds does not fully cover the advances;
(v)
Secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbroker
and market makers;
(vi)
Loan sanctioned to corporate against the security of shares/bonds/debentures or other securities
or on clean basis for meeting promoter's contribution to the equity of new companies in
anticipation of raising resources;
(vii)
Bridge loans to companies against expected equity flows/issues;
(viii)
All exposures to Venture Capital Funds ( both registered and unregistered)
Total Exposure to Capital Market
March 31, 2016
March 31, 2015
155.00
155.00
19,455.44
19,382.56
6,524.05
5,205.24
-
-
-
-
26,134.49
24,742.80
(i)
viii. Details of registrations obtained from other financial regulators:
Name of the Regulator
Pension Fund Regulatory and Development Authority
112
Registration Number
5612
xi. Details of penalties imposed by RBI or other regulators:
a. No penalty has been imposed during the year.
b.No adverse comments have been received in writing from Reserve Bank of India or any other regulator on regulatory
compliances.
i.
Details of Credit Ratings: A) Ratings assigned by Credit Rating Agencies:
Amount Rating Assigned
Rating Agency
Product
CARE
CARE
CARE
CARE
Long Term Bank Faciltiies
Non Convertible Debenture Issue
Subordinated Debt
Redeemable Preference Shares
30,950.00
45,500.00
5000.00
2000.00
CARE AA (Double A)
CARE AA (Double A)
CARE AA (Double A)
CARE AA (RPS) (Double A) Redeemable
Preference Shares
CARE
ICRA
ICRA
ICRA
ICRA
ICRA
ICRA
Perpetual Debt
Subordinated Debt
Long Term Bank Faciltiies
Long Term Debt Programme
Secured NCD Programme
Unsecured NCD Programme
Long Term Principal Protected Equity Linked
Programme*
3000.00
10,000.00
57,750.00
25,100.00
20,000.00
5,000.00
6,000.00
CARE AA- (Double A Minus)
[ICRA] AA (Stable)
[ICRA] AA (Stable)
[ICRA] AA (Stable)
[ICRA] AA (Stable)
[ICRA] AA (Stable)
PP-MLD [ICRA] AA (Stable)
ICRA
CRISIL
Brickwork
Brickwork
Brickwork
Brickwork
Short Term Debt Programme
Subordinated Debt
Secured NCD
Secured NCD
Subordinated NCD*
Fund Based Term Loans*
50,000.00
10,000.00
10,500.00
500.00
750.00
1,000.00
[ICRA] A1+
CRISIL AA-/Stable
BWR AA+ (Stable)
BWR AA+ (Stable)
BWR AA+ (Stable)
BWR AA+ (Stable)
B)
Details of migration of credit ratings during the year:
Rating Agency
Product
Brickwork
Brickwork
Brickwork
Brickwork
Proposed Bank loan Facilities*
Subordinate Long Term NCD*
Secured NCD
Secured NCD
*`
(` in Millions)
Amount Rating Assigned
1,000.00
750.00
10,500.00
500.00
BWR AA+ (Stable)
BWR AA+ (Stable)
BWR AA+ (Stable)
BWR AA+ (Stable)
BWR AA (Stable)
BWR AA (Stable)
BWR AA (Stable)
BWR AA (Stable)
3750 million was enhanced during the current year
ii. Details of Directors Remuneration:
(` in Millions)
Name of Director
Remuneration paid
Nirmal Jain
Rajashree Nambiar
Mukesh Kumar Singh*
Total
34.77
26.48
12.27
73.52
*Paid for April 2015 – June 2015
Note: The above is exclusive of gratuity, leave encashment and reimbursements, if any.
113
iii. Details of Provisions and Contingencies:
(` in Millions)
Particulars
Provision for depreciation on Investment
Provision towards NPA
Other Provision and Contingencies:
Bad debts written off/(back)
Total
Provision made towards Income Tax
2014-2015
456.45
14.40
416.45
412.63
1.73
10.00
880.81
1,561.96
43.23
258.01
199.75
931.84
1,552.63
iv. Details of concentration of deposits, advances, exposures & NPA:
a)
Concentration of Advances:
Particulars
Total advances to twenty largest borrowers
Percentage of advances to twenty largest borrowers to total advances
b)
Concentration of Exposures:
Particulars
Total exposure to twenty largest borrowers / customers
Percentage of exposure to twenty largest borrowers / customers to total exposure
c)
Concentration of NPAs:
Particulars
Total exposure to top four NPA accounts
d)
Details of sectorwise NPA:
Sr.
Sector
No.
1
2
3
4
5
6
7
Agriculture & allied activities
MSME
Corporate borrowers
Services
Unsecured personal loans
Auto Loans
Other loans*
*Other loans include all loans that cannot be classified under any of the other sectors.
114
2015-2016
(` in Millions)
Amount
23,614.85
18.91%
(` in Millions)
Amount
23,656.05
18.71%
(` in Millions)
Amount
654.58
(` in Millions)
% of NPAs to total
advances in that sector
3.53%
6.80%
1.94%
1.91%
0.00%
1.53%
1.56%
v. Movement of NPAs: (` in Millions)
Particulars
(i)
(ii)
(iii)
(iv)
March 31, 2016
March 31, 2015
0.64%
0.57%
1,686.57
1,198.93
669.39
2,216.11
855.77
1,250.21
419.42
1,686.57
726.82
563.05
489.96
799.91
312.47
577.08
162.73
726.82
959.75
635.86
179.42
1,416.20
543.30
673.14
256.69
959.75
Net NPAs to Net Advances (%)
Movement of NPAs (Gross)
(a) Opening balance
(b) Addition during the year
(c) Reduction during the year
(d) Closing balance
Movement of Net NPAs
(a) Opening balance
(b) Addition during the year
(c) Reduction during the year
(d) Closing balance
Movement of provision for NPAs (excluding provision on standard assets)
(a) Opening balance
(b) Provision made during the year
(c) Write off / write-back of excess provisions
(d) Closing balance
vi. Disclosure of Complaints:
Sr.
Particulars
No.
I
Ii
Iii
Iv
Number
Number of complaints pending at the beginning of year
Number of complaints received during the year
Number of complaints redressed during the year
Number of complaints pending at the end of the year
175
175
-
vii.The Company during the financial year has not exceeded single borrower limit (SGL) / group borrower limit (GBL) while performing
its lending operations.
viii. Disclosure of restructured accounts:
Sr.
No
1
2
3
Type of Restructuring
Asset Classification
Details
Restructured
Accounts as on
April 1 of the FY
2015 (opening
figures)*
No. of
borrowers
Amount
outstanding
Provision
thereon
Fresh restructuring No. of
during the year
borrowers
Amount
2016
outstanding
Provision
thereon
Upgradations
No. of
to restructured
borrowers
standard category Amount
during the FY 2016 outstanding
Provision
thereon
Under CDR Mechanism / SME Debt
Restructuring Mechanism
SubStandard
Doubtful
Loss
Standard
Others
Total Standard
SubDoubtful
Standard
Total
Loss
Total
-
-
-
-
-
-
4
8
-
12
12
-
-
-
-
-
-
57.91
47.42
-
105.33
105.33
-
-
-
-
-
-
11.09
26.54
-
37.63
37.63
-
-
-
-
-
-
3
-
-
3
3
-
-
-
-
-
-
12.88
-
-
12.88
12.88
-
-
-
-
-
-
1.29
-
-
1.29
1.29
-
-
-
-
-
3
-
-
-
3
3
-
-
-
-
-
48.90
0
-
-
48.90
48.90
-
-
-
-
-
-
-
-
-
-
-
115
Sr.
No
4
5
6
7
Type of Restructuring
Asset Classification
Details
Restructured
standard advances
which cease to
attract higher
provisioning and
/ or additional risk
weight at the end
of the FY 2015
and hence need
not be shown
as restructured
standard advances
at the beginning of
the next FY 2016
Downgradations
of restructured
accounts during
the FY 2016
Write-offs of
restructured
accounts during
the FY 2016
Restructured
Accounts as on
March 31 of the
FY 2016(closing
figures*)
No. of
borrowers
Amount
outstanding
Provision
thereon
No. of
borrowers
Amount
outstanding
Provision
thereon
No. of
borrowers
Amount
outstanding
Provision
thereon
No. of
borrowers
Amount
outstanding
Provision
thereon
including
provision for
diminution in
fair value
Under CDR Mechanism / SME Debt
Restructuring Mechanism
SubStandard
Doubtful
Loss
Standard
Others
Total Standard
SubDoubtful
Standard
Total
Loss
Total
-
-
-
-
-
-
1
-
-
1
1
-
-
-
-
-
-
4.17
0.42
-
-
4.17
0.42
4.17
0.42
-
-
-
-
-
-
-
4
-
4
4
-
-
-
-
-
-
-
22.16
-
22.16
22.16
-
-
-
-
-
-
-
14.40
-
14.40
14.40
-
-
-
-
-
-
-
4
-
4
4
-
-
-
-
-
-
-
25.26
-
25.26
25.26
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
-
-
3
3
-
-
-
-
-
-
12.88
1.29
-
-
12.88
1.29
12.88
1.29
NOTE 42. ASSET CLASSIFICATION
(` in Millions)
Particulars
Standard Assets
Sub-Standard Assets
Doubtful Assets
Loss Assets
Out Standing
Balance
Provision
1,22,635.98
(125,273.62)
938.94
(947.72)
1,215.20
(716.61)
61.97
(22.18)
463.58
(453.58)
915.16
(684.05)
439.07
(253.46)
61.97
(22.18)
Note:
a.In terms of RBI circular a general provision of ` 463.58 millions (Previous Year ` 453.58 millions) has been made at 0.30% of the standard assets under the head ‘Provision
on Standard Loans’ in Note 23.
b. Figures in bracket represent previous year’s figure.
116
NOTE 43. Particulars as per RBI Directions (as required in terms of paragraph 13 of Systemically Important Non- Banking Financial (NonDeposit Accepting or Holdings) Companies Prudential Norms (Reserve Bank) Directions 2015):
1. Loans and advances availed by the NBFCs inclusive of interest accrued there on but not paid:
(` in Millions)
Particulars
Amount
outstanding
Amount overdue
27,196.17
9,720.91
48,677.15
19,923.68
4,120.47
-
Liabilities Side:
(a)Debentures:
Secured
Unsecured (Other than falling within the meaning of public deposits)
(b) Deferred credits
(c) Term loans
(d) Inter–corporate loans and borrowings
(e) Commercial Paper
(f ) Other Loans(Overdraft)
2. Break – up of Loans and Advances including Bills Receivables [Other than included in (4) below]:
(` in Millions)
Amount
Outstanding
Particulars
Assets Side:
(a)Secured
(b)Unsecured
124,631.46
220.63
3. Break- up of leased assets and stock on hire and other assets counting towards AFC activities:
(` in Millions)
Particulars
(i)
(ii)
(iii)
Amount
Lease assets including lease rentals under sundry debtors
(a) Financial lease
(b) Operating lease
Stock on hire including hire charges under sundry debtors
(a) Assets on hire
(b) Repossessed Assets
Other Loans counting towards AFC activities
(a) Loans where assets have been repossessed
(b) Loans other than (a) above
-
117
4. Break–up of Investments:
(` in Millions)
Amount
Particulars
Current Investments :
1) Quoted :
(i)Shares:
(a)Equity
(b)Preference
(ii) Debentures and Bonds
(iii) Units of mutual funds
(iv) Government Securities
(v) Others (Certificate of Deposits)
2)Unquoted:
(i)Shares:
(a)Equity
(b)Preference
(v) Others (please specify)
Long Term Investments:
1)Quoted:
(i)Shares:
(a)Equity
(b)Preference
(v) Others (please specify)
2)Unquoted:
(i)Shares:
(a) Equity of subsidiary companies
(b) Preference of subsidiary companies
(v) Others / Equity Shares
109.57
1467.75
-
983.14
641.92
-
-
3,404.77
300.00
4,051.96
50.00
155.00
5. Borrower Group-wise Classification of all assets financed as in (2) and (3) above:
(` in Millions)
Category
1. Related Parties
a)Subsidiaries
b) Companies in the same group
c) Other related parties
2. Other than related parties
Total
118
Amount Net of Provisions
Secured
Unsecured
124,631.46
124,631.46
220.63
220.63
Total
124,852.09
124,852.09
6.Investor group wise classification of all investments (Current and Long Term) in shares and securities (Both quoted and
unquoted):
(` in Millions)
Category
1 Related Parties*
a)Subsidiaries
b) Companies in the same group
c) Other related parties
2 Other than related parties
Total
Market Value/
breakup or fair
value or NAV
Book value (Net of
provisions)
3,704.77
7,535.99
11,240.76
3,704.77
7,459.34
11,164.11
* As per Accounting Standard of ICAI
7. Other Information:
(` in Millions)
Particulars
Amount
(i)
(ii)
(iii)
2,216.11
799.91
-
Gross Non-Performing Assets
(a) Related parties
(b) Other than related parties
Net Non-Performing Assets
(a) Related parties
(b) Other than related parties
Assets acquired in satisfaction of debt
NOTE 44. Particulars as per RBI Directions for auction details (As required in terms of paragraph 20 (2) of Systemically Important
Non-Banking Financial (Non-Deposit Accepting or Holdings) Companies Prudential Norms (Reserve Bank) Directions 2015:
(` in Millions)
Number of gold loan accounts for which auctions done
133,619
Outstanding
amount
Amount recovered
in auction
9,402.84
7,449.67
None of the group companies have participated in the above auctions.
NOTE 45. UNHEDGED FOREIGN CURRENCY EXPOSURE
The unhedged foreign currency exposure as on 31st March 2016 is Nil (Previous Year Nil).
NOTE 46. Previous year’s figure are regrouped, reclassified and rearranged wherever considered necessary to confirm to current year’s
presentation.
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
119
Independent Auditors’ Report
To the Members of
about whether the consolidated financial statements are free from
material misstatement.
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
We have audited the accompanying consolidated financial
statements of India Infoline Finance Limited (hereinafter referred to
as“the Holding Company”) and its subsidiary (the Holding Company
and its subsidiary together referred to as “the Group”) comprising
of the Consolidated Balance Sheet as at 31st March, 2016, the
Consolidated Statement of Profit and Loss, the Consolidated Cash
Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information
(hereinafter referred to as “the consolidated financial statements”).
An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the consolidated
financial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of
material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Holding
Company’s preparation of the consolidated financial statements
that give a true and fair view in order to design audit procedures
that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Holding Company’s Board of Directors, as well as evaluating the
overall presentation of the consolidated financial statements.
MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED
FINANCIAL STATEMENTS
The Holding Company’s Board of Directors are responsible for the
preparation of these consolidated financial statements in terms of
the requirements of the Companies Act, 2013 (hereinafter referred
to as “the Act”) that give a true and fair view of the consolidated
financial position, consolidated financial performance and
consolidated cash flows of the Group in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014. The respective
Board of Directors of the companies included in the Group are
responsible for maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the
assets of the Group and for preventing and detecting frauds and
other irregularities; the selection and application of appropriate
accounting policies; making judgments and estimates that are
reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair
view and are free from material misstatement, whether due to
fraud or error, which have been used for the purpose of preparation
of the consolidated financial statements by the Directors of the
Holding Company, as aforesaid.
Our responsibility is to express an opinion on these consolidated
financial statements based on our audit. While conducting the
audit, we have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required
to be included in the audit report under the provisions of the Act
and the Rules made there under.
We conducted our audit in accordance with the Standards
on Auditing specified under Section 143(10) of the Act. Those
Standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance
120
We believe that the audit evidence obtained by us is sufficient
consolidated financial statements.
OPINION
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid consolidated
financial statements give the information required by the Act in
the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India, of the
consolidated state of affairs of the Group as at 31st March, 2016,
and their consolidated profit and their consolidated cash flows for
the year ended on that date.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by Section 143 (3) of the Act, we report, that:
(a)
We have sought and obtained all the information and
explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit of the aforesaid
consolidated financial statements.
(b)In our opinion, proper books of account as required by law
relating to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our
examination of those books.
(c)The Consolidated Balance Sheet, the Consolidated Statement
of Profit and Loss, and the Consolidated Cash Flow Statement
dealt with by this Report are in agreement with the relevant
books of account maintained for the purpose of preparation
of the consolidated financial statements.
(d)In our opinion, the aforesaid consolidated financial statements
comply with the Accounting Standards specified under
Consolidated | Financial Statements
Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
(e)On the basis of the written representations received from
the directors of the Holding Company as on 31st March,
2016 taken on record by the Board of Directors of the
Holding Company and our Report of its subsidiary company
incorporated in India, none of the directors of the Group
companies, incorporated in India is disqualified as on 31st
March, 2016 from being appointed as a director in terms of
Section 164 (2) of the Act.
i.
The consolidated financial statement disclosed the
impact of pending litigations on the consolidated
financial position of the Group – Refer notes 26 to the
Consolidated Financial Statements.
ii.
The Group did not have any long-term contracts
including derivative contracts for which there were any
material foreseeable losses; and
iii.
There were no amounts which were required to be
transferred to the Investor Education and Protection Fund
by the Holding Company, and its subsidiary company.
(f )
With respect to the adequacy of the internal controls
over financial reporting of the Group and the operating
effectiveness of such controls, refer to our separate Report in
Annexure ‘A’; and
(g)With respect to the other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditor’s) Rules, 2014, in our opinion and to the
best of our information and according to the explanations
given to us:
By the hand of
Place: Mumbai
Date: 4thMay, 2016
Parthiv S. Desai
Partner
121
Annexure A to the Auditors’Report
The Report on the Internal Financial Controls under Clause (i)
of Sub-section 3 of Section 143 of the Companies Act, 2013
(“the Act”)
In conjunction with our audit of the consolidated financial
statements of the Company as of and for the year ended
31st March, 2016, We have audited the internal financial controls
over financial reporting of India Infoline Finance Limited
(hereinafter referred to as the ‘Holding Company’) and its
subsidiary company which is incorporated in India, as of that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL
CONTROLS
The respective Board of Directors of the Holding company and
its subsidiary company, which are companies incorporated in
India, are responsible for establishing and maintaining internal
financial controls based on the internal control over financial
reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial
Reporting (the ‘Guidance Note’) issued by the Institute of
Chartered Accountants of India (ICAI). These responsibilities
include the design, implementation and maintenance of
adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of
its business, including adherence to the respective company’s
policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness
of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act,
2013 (the ‘Act’).
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on the Company’s
internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance
Note issued by the ICAI and the Standards on Auditing deemed
to be prescribed under Section 143(10) of the Act, to the extent
applicable, to an audit of internal financial controls, both issued
by the ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established
and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence
about the adequacy of the internal financial controls system over
122
financial reporting and their operating effectiveness. Our audit
of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including
the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error.
and appropriate to provide a basis for our audit opinion on
the Company’ internal financial controls system over financial
reporting
MEANING OF INTERNAL FINANCIAL CONTROLS OVER
FINANCIAL REPORTING
A Company’s internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles. A Company’s internal financial
control over financial reporting includes those policies and
procedures that: (1) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance
with authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or disposition
of the Company’s assets that could have a material effect on the
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS
OVER FINANCIAL REPORTING
Because of the inherent limitations of internal financial controls
over financial reporting, including the possibility of collusion
or improper management override of controls, material
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal
financial controls over financial reporting to future periods are
subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
OPINION
In our opinion, the Holding Company and its subsidiary
company which are companies incorporated in India, have, in
all material respects, an adequate internal financial controls
system over financial reporting and such internal financial
controls over financial reporting were operating effectively as
at 31st March, 2016, based on the internal control over financial
reporting criteria established by the Company considering the
essential components of internal control stated in the Guidance
Note issued by the ICAI.
By the hand of
Place: Mumbai
Date: 4thMay, 2016
Parthiv S. Desai
Partner
123
Consolidated
Balance Sheet
(` in Millions)
Particulars
I
Note No.
As at
March 31, 2016
As at
March 31, 2015
5,621.54
19,018.67
24,640.21
-
5,621.54
16,815.30
22,436.84
1,179.44
86,306.68
724.86
87,031.54
91,792.88
568.97
92,361.85
33,547.36
34,006.64
33,272.96
13,485.81
915.21
81,221.34
192,893.09
14,033.83
6,326.92
1,102.11
55,469.50
171,447.63
594.73
0.02
51.52
8.83
655.10
4,256.96
966.41
729.48
0.12
1.75
6.56
737.91
5,088.36
828.87
90,071.01
1,172.69
132.07
96,599.14
50,555.65
768.81
182.31
57,424.00
3,202.37
6,507.53
7,144.82
10,903.73
79,475.11
6,192.58
261.26
95,638.85
192,893.09
87,163.34
7,641.62
432.21
113,285.72
171,447.63
EQUITY AND LIABILITIES
(1) Shareholders' funds
(a) Share Capital
(b) Reserve and Surplus
Sub-Total
(2) Minority Interest
(3) Non Current Liabilities
(a) Long-term borrowings
(b) Other Long-term liabilities
(c) Long-term provisions
Sub-Total
(4) Current Liabilities
(a) Short-term borrowings
(b) Other current liabilities
-Borrowings
-Others
(c) Short-term provisions
Sub-Total
Total Equity and Liabilities
3
4
4A
5
6
7
8
6
IIASSETS
(1) Non-current assets
(a) Fixed assets
(i) Tangible assets
(ii) Intangible assets
(iii) Goodwill (on Consolidation)
(iv) Capital work-in-progress
Sub-Total
(b) Non-current investments
(c) Deferred tax assets (Net)
(d) Long-term loans & advances
-Loans
-Others
(e) Other non-current assets
Sub-Total
(2) Current assets
(a) Current investments
(b) Inventories
(c) Cash and Bank balances
(d) Short-term loans & advances
-Loans
-Others
(e) Other current assets
Sub-Total
Total - Assets
See accompanying notes forming part of the consolidated financial statements
9
10
11
12
13
14
15
16
13
14
1-42
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
124
ConsolidatedStatement of Profit and Loss
(` in Millions)
Particulars
Note No.
2015-16
2014-15
17
18
25,735.77
1,918.02
27,653.79
23,004.90
1,106.09
24,110.99
19
20
21
22
23
2,691.17
16,090.59
269.55
2,306.62
1,087.14
22,445.07
5,208.72
2,160.29
13,855.88
312.37
2,218.69
1,049.23
19,596.46
4,514.53
1,966.19
(142.55)
(1.93)
1,821.71
3,387.01
1,806.10
(324.98)
21.13
1,502.25
3,012.28
12.6
12.6
10.0
12.2
12.2
10.0
INCOME
Revenue from operations
Other Income
Total Revenue
EXPENDITURE
Employee benefit expenses
Finance cost
Depreciation & amortisation expenses
Other expenses
Provision & Write off
Total Expenses
Profit before tax
Tax expenses :
Current tax expense for current year
Deferred tax
Current tax expense relating to prior years
Total tax expense
Profit after tax for the year
Earnings per equity share
(1) Basic
(2) Diluted
Face Value Per Equity Share `
24
1-42
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
125
Consolidated Cash Flow Statement
(` in Millions)
Particulars
2015-2016
2014-2015
5,208.72
4,514.52
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before taxation, and extraordinary item
Adjustments for:
Depreciation
Provision for doubtful loans (Note : 23)
Provision for standard loans (Note : 23)
Provision for diminution in value of investments (Note : 23)
Provision for contingencies (Note : 23)
Gratuity & Leave enchasment (Note : 19)
Operating profit before working capital changes
Increase / (Decrease) in short term & Long term provisions
Increase / (Decrease) in Other liabilities
Decrease / (Increase) in Inventories
Decrease / (Increase) in Other current assets
Decrease / (Increase) in Other non-current assets
Cash generated from operations
Tax (Paid) / Refund
Net cash from operating activities
Decrease / (Increase) in long term loans & advances
Decrease / (Increase) in short term loans & advances
Net cash used in operating activities (A)
269.55
521.11
150.48
1.73
39.68
982.55
6,191.27
312.37
493.11
240.20
14.40
258.01
18.32
-
(163.00)
(94.24)
6,919.37
170.93
50.24
298.53
70.48
199.14
71.02
6,977.54
13,168.81
1,336.41
5,850.93
544.93
6,395.86
(2,483.97)
10,684.84
(2,027.63)
4,368.23
(39,807.92)
8,941.35
(20,181.73)
(12,181.68)
(27,523.90)
(35,337.35)
(186.74)
831.39
2,763.02
3,407.67
(86.70)
(1,917.98)
(505.17)
(2,509.85)
(914.80)
13,752.93
(459.27)
(1.00)
12,377.86
(4,396.20)
(740.05)
3,250.00
31,004.12
7,121.52
40,635.59
2,788.39
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets,including intangible assets,CWIP and Capital advances#
Purchase of non-current investments#
Purchase of current investments#
Net cash from investing activities (B)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend & Dividend Distribution Tax paid
Proceeds from issue of Preference Shares
Proceeds from long term borrowings#
Proceeds from short term borrowings#
Share Issue Expenses
Net cash from financing activities (C)
Net Increase/(Decrease) in cash and cash equivalents ( A + B + C)
126
(` in Millions)
Particulars
Opening Cash and cash equivalents
Closing Cash and cash equivalents
# Represents net amount due to the transaction volume
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 Cash & cash equivalent as at the end of the year include:
Cash & bank balances (Refer Note 16)
Cash & cash equivalent at the end of the year
2015-2016
2014-2015
10,903.73
8,115.34
6,507.53
10,903.73
6,507.53
10,903.73
6,507.53
10,903.73
3.Previous year's figures are re-grouped \re-arranged wherever necessary
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
127
Consolidated Financial Statements of India Infoline Finance Limited
Notes forming part of Consolidated Financial Statements for the year ended March 31, 2016
NOTE 1.CORPORATE INFORMATION
The Consolidated financial statements relates to “India Infoline
Finance Limited” and its subsidiary “India Infoline Housing
Finance Limited” (IIHFL). The Company is a systemically important
Non-Banking Financial Company not accepting public deposits
(“NBFC-ND-SI”) registered with the Reserve Bank of India (RBI)
under section 45-IA of the Reserve Bank of India Act, 1934 and
primarily engaged in financing and related activities. The Company
has received the certificate of registration from RBI on May 12,
2005, enabling the Company to carry on business as Non-Banking
Financial Company. The Company offers broad suite of financial
products such as mortgage loan, gold loan, loan against securities,
commercial vehicle loan, loans to small & medium enterprise (SME)
and health care finance to retail and corporate clients.
NOTE 2.SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of consolidation
i. Basis of preparation of financial statements
The Consolidated Financial Statements are prepared in
accordance with the Accounting Standard (AS) 21 on
Consolidated Financial Statement notified under section
133 of the Companies Act 2013, read together with Rule
7 of the Companies (Accounts) Rules, 2014(as amended)
and the relevant provisions of the Companies Act 2013.
The Consolidated Financial Statements comprises of
India Infoline Finance Limited and its subsidiaries.
The financial statements have been prepared in
accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with all
material aspects of the applicable Accounting Standards
notified under section 133 of the Companies Act 2013,
read together with Rule 7 of the Companies (Accounts)
Rules, 2014 (as amended) and the relevant provisions of
the Companies Act 2013 along with the guidelines issued
by the Reserve bank of India (RBI) as applicable to NBFC’s
as well as norms prescribed by National Housing Bank
(NHB). The financial statements have been prepared on
accrual basis under the historical cost convention.
ii. Principles of consolidation
The financial statements of the group companies of
India Infoline Finance Limited have been prepared in
accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with all
material aspects of the applicable Accounting Standards
notified under section 133 of the Companies Act 2013,
read together with Rule 7 of the Companies (Accounts)
Rules, 2014 issued by the Ministry of Corporate Affairs.
The financial statements have been prepared on accrual
basis under the historical cost convention. The effects
of all inter-group transactions and balances have been
eliminated on consolidation.
128
iii. List of subsidiaries consolidated
The individual Balance Sheet as at March 31, 2016,
statement of profit and loss and cash flow statement for
the year ended March 31, 2016 of following subsidiary is
included in consolidation:
India Infoline Housing Finance Limited (IIHFL)
2.2 Use of estimates
The preparation 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 /materialised.
2.3 Fixed Asset, Depreciation and Amortization
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. 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. In case of transfer
of used fixed assets from group companies, depreciation is
charged over the remaining useful life of the asset.
Individual assets/group of similar assets costing up to ` 5,000
has been depreciated in full in the year of purchase. Leasehold
land is depreciated on a straight line basis over the leasehold
period.
Estimated useful life of the assets are as under:
Class of assets
Buildings*
Computers*
Office equipment
Electrical*
Furniture and fixtures*
Vehicles*
Software
Useful life
20 years
3 years
5 years
5 years
5 years
5 years
3 years
*For these class of assets, based on internal assessment and independent
technical evaluation carried out by external valuer’s the management believes
that the useful lives as given above best represent the period over which
management expects to use these assets. Hence the useful lives for these assets
are different from the useful lives as prescribed under Part C of Schedule II of the
Companies Act 2013.
2.4 Assignment of loan portfolio
Derecognition of loans assigned, in the books of the Company,
is based on the concept of surrender of control over the
loans resulting in a “true sale” of loans. Future interest spread
receivables in case of a par structure deals are recognised over
the tenure of agreements as per guidelines issued by the RBI.
Expenditure in respect of direct assignment is recognised
upfront. Credit enhancement in the form of cash collateral
provided by the Company is included under Cash and bank
balance / Loans and advances, as applicable.
2.5 Revenue recognition
The Company complies, in all material respects, with the
Accounting Standard -9 issued by the Institute of Chartered
Accountants of India, Prudential Norms relating to income
recognition, asset classification and the minimum provisioning
for bad and doubtful debts and standard assets, specified in
the directions issued by the RBI & NHB, as applicable to it, and
Interest Income is recognised on the time proportionate basis
as per agreed terms;
Interest Income recognised and remaining due for more than
150 days for all the loans are reversed and are accounted
as income when these are actually realised. In the books of
subsidiary IIHFL, interest income is reversed if it is due for 90
days or more;
Dividend income is recognised when the right to receive
payment is established;
Processing fees received from customers is recognised as
income on receipt basis;
In respect of the other heads of income, the Company
accounts the same on accrual basis.
2.6 Preliminary expenses
Preliminary expenses are written off in the financial year in
which they are incurred.
2.7 Employee benefits
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
statement of profit & loss. 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.
2.8 Provisions, Contingent liabilities and Contingent assets
A provision is recognised if, as a result of past event, the
company has a present obligation that can be estimated
reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation.
Non-performing loans are written off / provided for, as per
management estimates, subject to the minimum provision
required as per Non-Banking financial (Non-Deposit
Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2015 (“RBI Directions, 2015) dated March 27,
2015. Provision on standard assets is made as per notification
no. DNBR.009/CGM(CDS)-2015 dated March 27, 2015 issued
by RBI.
For the subsidiary IIHFL non-performing loans are written
off / provided for, as per management estimates subject to
the minimum provision required as per National Housing
Bank (NHB) Directions. Provision on standard assets is made
as per notification No. NHB. HFC. DIR. 9/ CMD/ 2013 dated
September 6, 2013 issued by NHB.
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
2.9 Taxes on income
Tax expense comprises of current and deferred tax and
includes any adjustments related to the past periods in current
and /or deferred tax adjustments that may become necessary
due to certain developments or reviews during the relevant
period. Current income-tax is measured at the amount
expected to be paid to the tax authorities in accordance with
the Income-tax Act, 1961.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 income taxes reflect the impact of timing differences
between taxable income and accounting income originating
during the current year and reversal of timing differences of
earlier year. Deferred tax is measured using the tax rate and
the tax laws enacted or substantively enacted at the Balance
Sheet date. The deferred tax assets are recognised only to
the extent that it has become reasonably certain or virtually
certain, as the case may be, that sufficient future taxable
income will be available.
129
Carrying amount of deferred tax assets are reviewed at each
balance sheet date. The company writes down the carrying
amount of a deferred tax asset to the extent that it is no longer
be available against which deferred tax asset can be realised.
Any such write down is reversed to the extent that it becomes
be available.
2.10Operating leases
Lease rentals in respect of operating lease arrangements are
charged to the statement of profit & loss in accordance with
Accounting Standard 19 – Leases, issued by the Institute of
Chartered Accountants of India.
2.11Investments
Investments, which are readily realizable and intended to be
held for not more than one year from the date on which such
investments are made, are classified as current investments. All
other Investments are classified as non – current investments.
Current investments are stated at lower of cost or market / fair
value. Non – current investments are carried at cost. Provision
for diminution in value of non – current investments is made,
if in the opinion of the management, such diminution is
other than temporary. For investment in mutual funds, the
net assets value (NAV) declared by the mutual funds at the
Balance Sheet date is considered as the fair value.
2.12Inventories
Closing stock is valued at cost or market value, whichever is
lower. Cost is computed on FIFO basis.
2.13Earnings per share
Basic earnings per share are calculated by dividing the net
profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the period.
For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.
2.14Borrowings
Borrowings are bifurcated under long term and short term
liabilities. Commercial papers are recognised at Face value at
the time of its issue. Any difference between the proceeds and
the redemption value is recognised in profit & loss account
over the period of the borrowings.
2.15Debenture Issue Expenses
Debenture issue expenses incurred on public issue of non
convertible debentures are amortized over tenure of the
underlying debenture.
In case of private placement of non convertible debentures
the same is charged to the profit and loss account in the year
NOTE 3. SHARE CAPITAL
(i) Authorised, Issued, Subscribed and Paid-up Share Capital
(` in Millions)
Particulars
Authorised Share Capital:
400 Preference Shares (Previous Year 400) of ` 100 each
575,000,000 Preference Shares (Previous Year 575,000,000) of ` 10 each
Total
Issued, Subscribed and Paid-up Share Capital:
237,154,030 Equity Shares (Previous Year 237,154,030) of ` 10 each with voting rights
75,000,000 - 8% Compulsorily Redeemable Non- Convertible Non - Cumulative Preference Shares
(Previous Year 75,000,000 ) of ` 10 each
100,000,000 - 8% Compulsorily Redeemable Non Convertible Cumulative Preference Shares (Previous
Year 100,000,000 ) of ` 10 each
150,000,000 - 9.25% Compulsorily Redeemable Non Convertible Cumulative Preference shares
(Previous Year 150,000,000) of ` 10 each
Total
130
As at
March 31, 2016
As at
March 31, 2015
3,000.00
199.96
0.04
5,750.00
8,950.00
3,000.00
199.96
0.04
5,750.00
8,950.00
2,371.54
2,371.54
750.00
750.00
1,000.00
1,000.00
1,500.00
5,621.54
1,500.00
5,621.54
(ii) Reconciliation of equity shares outstanding at the beginning and at the end of the year
Particulars
Equity Shares:
8% Compulsorily Redeemable Non Convertible Non Cumulative
Preference Shares:
Shares:
No. of
` in Millions
Shares
No. of
` in Millions
Shares
237,154,030
237,154,030
2,371.54
2,371.54
237,154,030
237,154,030
2,371.54
2,371.54
75,000,000
75,000,000
750.00
750.00
75,000,000
75,000,000
750.00
750.00
100,000,000
100,000,000
1,000.00
1,000.00
100,000,000
100,000,000
1,000.00
1,000.00
150,000,000
150,000,000
1,500.00
1,500.00
150,000,000
150,000,000
1,500.00
1,500.00
Preference Shares:
(iii) Rights attached to equity shares
The Company has only one class of equity shares having a par value of ` 10/- per share. Each holder of equity share is entitled to
one vote per share. The Company declares and pays dividends in Indian Rupees. During the year ended March 31, 2016, equity
shareholders were paid interim dividend of ` 2.75/- (Previous Year ` 2.50/-) per share.
(iv) Rights attached to preference shares
a.75,000,000-8% compulsorily redeemable Non convertible Non cumulative preference shares of ` 10/- each aggregating to `
750 million. These shares shall have seniority over equity shareholders with respect to payment of capital and dividend. It shall
carry dividend rate of 8% p.a. and will not have any cumulative right with respect to payment of dividend.
b.100,000,000-8% compulsorily redeemable Non convertible Cumulative preference shares of ` 10/- each aggregating to ` 1,000
million. These shares shall have seniority over equity shareholders with respect to payment of capital and dividend. It shall carry
dividend rate of 8% p.a. and their right to dividend is on cumulative basis.
c.150,000,000-9.25% compulsorily redeemable Non convertible Cumulative Preference Shares aggregating to ` 1,500 million.
These shares shall have seniority over equity shareholders with respect to payment of capital and dividend. Their right to
dividend is on cumulative basis. During the year ended March 31, 2016 the company has declared & paid dividend on these
shares @ 9.25% p.a. in accordance with the terms of the Issue.
Other rights of the holders of Preference Shares shall be governed by the provisions of the Companies Act 2013, read with
applicable rules and any amendment / modification in law from time to time and such other applicable regulations.
131
(v) Shares held by holding company / ultimate holding, subsidiaries and their associates
Equity Shares
Preference Shares
8% Compulsorily Redeemable Non-Convertible Cumulative Preference
9.25% Compulsorily Redeemable Non-Convertible Cumulative
Preference shares of ` 10 each fully paid
No. of Shares
% Holdings
237,154,030
100.00%
No. of Shares
% Holdings
No. of Shares
% Holdings
234,467,549
98.87%
No. of Shares
% Holdings
75,000,000
100.00%
75,000,000
100.00%
50,000,000
-
50.00%
-
50,000,000
49,500,000
50.00%
49.50%
-
-
150,000,000
100.00%
(vi) Details of shareholders holding more than 5% shares in the Company:
Equity shares of ` 10 each fully paid up
No. of Shares
% Holdings
No. of Shares
% Holdings
237,154,030
100.00%
234,467,549
98.87%
75,000,000
100.00%
75,000,000
100.00%
50,000,000
-
50.00%
-
50,000,000
49,500,000
50.00%
49.50%
-
-
150,000,000
100.00%
(vii)Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash or by
way of bonus shares or shares bought back during the period of five years immediately preceding the reporting date: Nil
132
NOTE 4.RESERVES AND SURPLUS
(` in Millions)
Particulars
Securities Premium Account
Opening Balance as per last financial statement
Addition during the year from Statement of Profit and Loss
Deduction during the year (Share issue expenses)
Closing balance
General Reserve
Deduction during the year
Closing balance
Special Reserve
I. Special Reserve Pursuant to Section 45 IC of Reserve Bank of India Act, 1934
Closing balance
II. Special Reserve Pursuant to Section 29C of National Housing Bank Act, 1987
Closing balance
Total Special Reserve (I + II)
Debenture Redemption Reserve (Refer Note 4.1)
Closing balance
Surplus / (Deficit) in Statement of Profit and Loss
Less: Appropriations
Preference Dividend (Including Proposed Dividend)
Dividend Distribution Tax on Preference Dividend (Including DDT on Proposed Dividend)
Interim Dividend
Dividend Distribution Tax on Interim Dividend
Transfer to Special Reserve as per Section 45 IC of the RBI Act,1934
Transfer to Special Reserve as per Section 29 C of the NHB Act,1987
Deferred Tax Liability
Transfer to Debenture Redemption Reserve
Closing balance
Total
As at
March 31, 2016
As at
March 31, 2015
8,657.49
8,657.49
1.00
8,656.49
8,657.49
463.00
463.00
463.00
463.00
1,922.50
550.00
2,472.50
1,415.00
507.50
1,922.50
223.20
150.50
373.70
2,846.20
115.20
108.00
223.20
2,145.70
2,543.00
1,222.00
3,765.00
2,000.00
543.00
2,543.00
3,006.11
3,387.01
1,985.63
3,012.28
338.98
53.69
652.17
132.77
550.00
150.50
5.02
1,222.00
3,287.98
19,018.67
101.98
27.89
592.89
100.76
507.50
108.00
9.79
543.00
3,006.11
16,815.30
NOTE 4.1 Pursuant to Section 71 of the Companies Act, 2013 read with Rule 18 of the Companies (Share Capital and Debentures Rules,
2014) the Company being an NBFC was required to create debenture redemption reserve of a value equivalent to 25% of the debentures
offered through a public issue. Accordingly, ` 949.00 million (Previous year ` 313 million) has been transferred to debenture redemption
reserve account for the financial year ended March 31, 2016. For the subsidiary IIHFL debenture redemption reserve has been made at
the rate of 25% on public issue of non convertible debentures. Accordingly, ` 273.00 million (Previous year ` 230.00 million) has been
transferred to debenture redemption reserve account for the financial year ended March 31, 2016.
133
4A. Minority Interest:
(` in Millions)
Particulars
As at
March 31, 2016
As at
March 31, 2015
1,179.44
(1,179.44)
0.00
0.00
1,179.44
1,179.44
Opening Minority Interest
Subsequent increase/(decrease) during the year
Closing Minority Interest
NOTE 5. LONG TERM BORROWINGS
Non Convertible Debentures
Secured:
Unsecured:
Sub-Total (A)
Term Loan
Secured:
Term Loan from Banks (Refer Note - 5.3)
Sub-Total (B)
Total
Non-Current
As at March As at March 31,
2015
31, 2016
(` in Millions)
Current Maturities
As at March As at March 31,
2015
31, 2016
28,091.67
35,239.75
12,195.12
800.00
12,166.10
40,257.77
11,370.91
46,610.66
24.82
(12,219.94)
-
(800.00)
-
46,048.91
46,048.91
86,306.68
45,182.21
45,182.21
91,792.88
21,053.01
(21,053.01)
-
13,233.83
(13,233.83)
-
The Company has also raised ` 10,875.00 millions (Previous Year ` 15,346.00 millions) and ` 820.00 million (Previous Year ` 45,500.00
million) by issue of secured and unsecured non convertible debentures respectively. During the year, the Company has raised secured
term loans aggregating ` 28,950.00 millions (Previous Year ` 31,150.00 millions) from various banks. Of the above company has raised
Foreign Currency Term Loan aggregating to ` 900 (Previous Year ` Nil ) from RBL.
The above term loans are secured by way of first pari-passu charge over the current assets in the form of receivables, book debts, bills,
outstanding monies receivables including future movable assets, other than those specifically charged. Out of the total loans from banks,
loans amounting to ` 59,602.30 million/- (Previous Year ` 54,416.29 million) are also guaranteed by Holding Company IIFL Holdings
Limited.
IL&FS Trust Company Limited (“ITCL”) acts as a security trustee for all bank borrowings. The security trustee is responsible for ensuring that
the security cover as required for the individual term loans / cash credit / working capital demand loans facilities are being maintained
during the tenure of each of the loans.
Debenture redemption reserve on the NCD’s has been created as disclosed in note 4.1.
NOTE 5.1. NON CONVERTIBLE DEBENTURES – SECURED
Particulars
Equity Linked Non Convertible Debentures - Series 042 Type II Of Face Value
` 1,00,000 Each Redeemable On 28-Feb-2022 At Par
` 1,00,000 Each Redeemable On 10-Feb-2022 At Par
134
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
15.00
18.00
-
-
18.00
35.00
-
-
Particulars
` 1,00,000 Each Redeemable On 28-Jan-2022 At Par
10.60% Redeemable Non Convertible Debentures Of Face Value ` 1,000,000
Each Redeemable On 03-Nov-2021 At Par
Zero Coupon Secured Redeemable Non-Convertible Debentures Of Face
Value ` 1,000,000 Each Redeemable On 19-Mar-2019 At Premium
11% Non-Convertible Debentures Of Face Value ` 1,000,000 Each
Redeemable On 6-March-2019
Zero Coupon Secured Non Convertible Debentures Of Face Value ` 1,000,000
Each Redeemable On 27-Feb-2019 At Premium
Equity Linked Coupon Non Convertible Debentures Of Face Value ` 1,000,000
18-Jan-2019 At Par
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 16-Jan2019 At Premium
Zero Coupon Secured Redeemable Non-Convertible Debentures Series A8
Option III Of Face Value ` 1,000,000 Each Redeemable On 16-Jan-2019 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 26-Dec2018 At Premium
11.52% Secured Non Convertible Debentures Series N1 Of Face Value ` 1,000
Each Redeemable On 26-Dec-2018 At Par
Option II Of Face Value ` 1,000,000 Each Redeemable On 26-Dec-2018 At
Premium
Cnx Nifty Index Linked Secured Redeemable Non-Convertible Debentures
Series Ihf 002 Of Face Value ` 1,000,000 Each Redeemable On 21-Dec-2018
At Par
Cnx Nifty Index Linked Secured Redeemable Non-Convertible Debentures
Series Ihf 001 Type B Of Face Value ` 1,000,000 Each Redeemable On 21-Dec2018 At Par
Option I Of Face Value ` 1,000,000 Each Redeemable On 12-Dec-2018 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 27-Nov2018 At Premium
Option III Of Face Value ` 1,000,000 Each Redeemable On 27-Nov-2018 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 08-Nov2018 At Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 08-Nov-2018 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 25-Oct2018 At Premium
Option Iii Of Face Value ` 1,000,000 Each Redeemable On 17-Oct-2018 At
Premium
Option Iii Of Face Value ` 1,000,000 Each Redeemable On 17-Oct-2018 At
Premium
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
6.00
19.00
-
-
2,875.00
2,875.00
-
-
2,875.00
2,875.00
-
-
60.00
60.00
-
-
100.00
100.00
-
-
100.00
100.00
-
-
50.00
-
-
-
44.00
-
-
-
44.00
-
-
-
34.00
-
-
-
3,944.63
4,018.64
-
-
34.00
-
-
-
310.00
-
-
-
290.00
-
-
-
34.00
-
-
-
34.00
-
-
-
60.00
-
-
-
60.00
-
-
-
30.00
-
-
-
30.00
-
-
-
30.00
-
-
-
30.00
-
-
-
30.00
-
-
-
30.00
-
-
-
130.00
-
-
-
135
Particulars
Option I Of Face Value ` 1,000,000 Each Redeemable On 03-Oct-2018 At
Premium
12% Secured Redeemable Non Convertible Debentures Option III Of Face
Value ` 1,000 Each Redeemable On 30-Sep-2018 At Par
12% Redeemable Non Convertible Debentures Option IV Of Face Value `
1,000 Each Redeemable On 30-Sep-2018 At Par
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 13-Sep2018 At Premium
Option Ii Of Face Value ` 1,000,000 Each Redeemable On 13-Sep-2018 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 09-Aug2018 At Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 09-Aug-2018 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 13-Jul2018 At Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 13-Jul-2018 At
Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 28-Jun-2018 At
Premium
10.40% Secured Redeemable Non Convertible Debentures Of Face Value
` 1,000,000 Each Redeemable On 21-Jun-2018 At Par
Option III Of Face Value ` 1,000,000 Each Redeemable On 15-Jun-2018 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 14-Jun2018 At Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 14-Jun-2018 At
Premium
10.55% Non-Convertible Debentures Of Face Value ` 1,000,000 Each
Redeemable On 11-June-2018
Each Redeemable On 31-May-2018 At Par
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 31-May2018 At Premium
Zero Coupon Secured Redeemable Non-Convertible Debentures Series 9
Option II Of Face Value ` 1,000,000 Each Redeemable On 31-May-2018 At
Premium
10% Non-Convertible Debentures Of Face Value ` 1,000,000 Each
Redeemable On 24-May-2018
Option I Of Face Value ` 1,000,000 Each Redeemable On 24-May-2018 At
Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 08-May-2018 At
Premium
Option IV Of Face Value ` 1,000,000 Each Redeemable On 18-Apr-2018 At
Premium
136
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
130.00
-
-
-
2,701.50
2,711.93
-
-
261.55
267.62
-
-
60.00
-
-
-
60.00
-
-
-
250.00
-
-
-
310.00
-
-
-
100.00
-
-
-
100.00
-
-
-
464.00
-
-
-
100.00
100.00
-
-
500.00
-
-
-
70.00
-
-
-
-
-
36.00
100.00
100.00
-
-
1,050.00
1,050.00
-
-
35.00
-
-
-
35.00
-
-
-
100.00
100.00
-
-
175.00
-
-
-
175.00
-
-
-
40.00
-
-
-
39.00
-
-
-
70.00
70.00
-
-
Particulars
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 17-Apr2018 At Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 17-Apr-2018 At
Premium
Zero Coupon Non-Convertible Debentures Of Face Value ` 1,000,000 Each
Redeemable On 10-Apr-2018 At Premium
Option III Of Face Value ` 1,000,000 Each Redeemable On 10-Apr-2018 At
Premium
Option IV Of Face Value ` 1,000,000 Each Redeemable On 03-Apr-2018 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 Each
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 02-Apr2018 At Premium
Option III Of Face Value ` 1,000,000 Each Redeemable On 02-Apr-2018 At
Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 02-Apr-2018 At
Premium
Equity Linked Non Convertible Debentures - Series 038 Of Face Value `
100,000 Each Redeemable On 19-Mar-2018 At Par
Equity Linked Non Convertible Debentures - Series 042 Type I Of Face Value
` 100,000 Each Redeemable On 27-Feb-2018 At Par
Equity Linked Non Convertible Debentures - Series 042 Type III Of Face Value
Equity Linked Non-Convertible Debentures Of Face Value ` 1,000,000 Each
Redeemable On 12-Feb-2018
07-Feb-2018 At Par
Equity Linked Non Convertible Debentures Of Face Value ` 1,000,000 07-Feb2018 At Par
Equity Linked Non Convertible Debentures - Series 040 Of Face Value `
100,000 Each Redeemable On 02-Feb-2018 At Par
` 1,00,000 Each Redeemable On 29-Jan-2018 At Par
Zero Coupon Non-Convertible Debentures Of Face Value ` 1000,000 Each
Redeemable On 23-Jan-2018 At Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 23-Jan-2018 At
Premium
Zero Coupon Secured Redeemable Non Convertible Debentures. Series 7.
Option I. Date Of Maturity 09/01/2018
Option I Of Face Value ` 1,000,000 Each Redeemable On 09-Jan-2018 At
Premium
Redeemable On 18-Dec-2017 At Premium
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
142.00
-
-
-
102.00
-
-
-
67.00
67.00
-
-
37.00
37.00
-
-
433.00
433.00
-
-
62.00
62.00
-
-
33.00
33.00
-
-
200.00
-
-
-
130.00
-
-
-
62.00
62.00
-
-
33.00
33.00
-
-
120.00
120.00
-
-
248.00
458.00
-
-
250.00
250.00
-
-
50.00
50.00
-
-
361.00
403.00
-
-
25.00
-
-
-
12.00
-
-
-
275.00
307.00
-
-
152.00
202.00
-
-
34.00
34.00
-
-
33.00
33.00
-
-
30.00
30.00
-
-
30.00
30.00
-
-
60.00
60.00
-
-
-
-
-
-
137
Particulars
Option II Of Face Value ` ,1000,000 Each Redeemable On 18-Dec-2017 At
Premium
Redeemable On 06-Dec-2017 At Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 06-Dec-2017 At
Premium
Zero Coupon Secured Redeemable Non Convertible Debentures. Series 4.
Option II Date Of Maturity 20 Nov-2017
Option II Of Face Value ` 1,000,000 Each Redeemable On 20-Nov-2017 At
Premium
Redeemable On 02-Nov-2017 At Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 02-Nov-2017 At
Premium
Zero Coupon Secured Redeemable Non-Convertible Debentures Series I
Option III Of Face Value ` 1,000,000 Each Redeemable On 11-Oct-2017 At
Premium
Redeemable On 11-Oct-2017 At Premium
Redeemable On 3-Oct-2017 At Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 03-Oct-2017 At
Premium
Redeemable On 21-Sep-2017 At Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 21-Sep-2017 At
Premium
Option III Of Face Value ` 1,000,000 Each Redeemable On 14-Sep-2017 At
Premium
Redeemable On 31-Aug-2017 At Premium
Zero Coupon Secured Redeemable Non-Convertible Debentures Option I Of
Face Value ` 1,000,000 Each Redeemable On 31-Aug-2017 At Premium
Redeemable On 16-Aug-2017 At Premium
Value ` 1,000,000 Each Redeemable On 16-Aug-2017 At Premium
Redeemable On 03-Jul-2017 At Premium
23-Jun-2017 At Par
Zero Coupon Secured Redeemable Non –Convertible Debentures Of Face
Value ` 1,000 Each Redeemable On 20-Jun-2017 At Par
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 16-Jun2017 At Premium
Option III Of Face Value ` 1,000,000 Each Redeemable On 15-Jun-2017 At
Premium
15-May-2017 At Par
Value ` 1,000,000 Each Redeemable On 15-May-2017 At Premium
138
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
60.00
60.00
-
-
40.00
40.00
-
-
40.00
40.00
-
-
610.00
610.00
-
-
115.00
115.00
-
-
40.00
40.00
-
-
35.00
35.00
-
-
91.00
91.00
-
-
91.00
91.00
-
-
39.00
39.00
-
-
39.00
39.00
-
-
65.00
65.00
-
-
65.00
65.00
-
-
500.00
-
-
-
170.00
170.00
-
-
170.00
170.00
-
-
180.00
180.00
-
-
180.00
180.00
-
-
120.00
120.00
-
-
21.00
-
-
-
200.00
200.00
-
-
50.00
-
-
-
500.00
500.00
-
-
250.00
-
-
-
100.00
100.00
-
-
Particulars
Each Redeemable On 29-Apr-2015 At Par
Equity Linked Non Convertible Debentures - Series 042 Type III Of Face Value
` 100,000 Each Redeemable On 25-Apr-2017 At Par
Zero Coupon Secured Non Convertible Debentures Of Face Value ` 1,000,000
Each Redeemable On 24-Apr-2017 At Premium
Equity Linked Non Convertible Debentures Of Face Value ` 1,000,000 18Apr-2017 At Par
Option Ii Of Face Value ` 1,000,000 Each Redeemable On 10-Apr-2017 At
Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 10-Apr-2017 At
Premium
Redeemable On 4-Apr-2017
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 03Apr-2017 At Premium
Option II Of Face Value ` 1,000,000 Each Redeemable On 03-Apr-2017 At
Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 20-Mar-2017 At
Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 07-Mar-2017 At
Premium
Zero Coupon Non Convertible Debentures Of Face Value ` 1,000,000 07-Feb2017 At Premium
Option I Of Face Value ` 1,000,000 Each Redeemable On 07-Feb-2017 At
Premium
Equity Linked Non Convertible Debenture -Series I-037 Of Face Value
` 1,00,000 Each Redeemable On 21-Nov-2016 At Par
Equity Linked Non Convertible Debenture-Series I-036 Of Face Value
Equity Linked Non Convertible Debenture-Series I-035 Of Face Value
` 1,00,000 Each Redeemable On 25-Oct-2016 At Par
` 1,00,000 Each Redeemable On 24-Oct-2016 At Par
12% Secured Redeemable Non Convertible Debentures. Option I. Of Face
12% Secured Redeemable Non Convertible Debentures. Option II.Of Face
Redeemable On 6-Sept-2016
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
-
-
-
350.00
-
350.00
350.00
-
350.00
350.00
-
-
250.00
250.00
-
-
350.00
350.00
-
-
50.00
-
-
-
850.00
850.00
-
-
500.00
-
-
-
150.00
150.00
-
-
-
220.00
220.00
-
180.00
180.00
-
-
200.00
-
-
-
200.00
-
-
-
-
500.00
500.00
-
-
500.00
500.00
-
-
-
30.00
-
-
-
30.00
-
-
56.50
56.50
-
-
350.00
350.00
-
-
62.30
62.30
-
-
74.10
74.10
-
-
30.50
30.50
-
-
93.50
93.50
-
-
5,845.21
4,981.88
-
-
840.48
728.44
-
-
50.00
50.00
-
139
Particulars
Zero Coupon Secured Redeemable Non-Convertible Debentures Option II Of
Face Value ` 1,000,000 Each Redeemable On 06-Sep-2016 At Premium
Equity Linked Non Convertible Debentures - Series I 32 Of Face Value
` 100,000 Each Redeemable On 02-Sep-2016 At Par
Equity Linked Non Convertible Debentures - Series I 31 Face Value ` 100,000
Each Redeemable On 01-Sep-2016 At Par
11.90 % Non-Convertible Debentures Of Face Value ` 1,000 Each Redeemable
On 18-Aug-2016 At Par
11.70 % Non-Convertible Debentures Of Face Value ` 1,000 Each Redeemable
On 18-Aug-2016 At Par
` 100,000 Each Redeemable On 18-Aug-2016 At Par
` 1,00,000 Each Redeemable On 25-Jul-2016 At Par
` 100,000 Each Redeemable On 18-Jun-2016 At Par
Option Ii Of Face Value ` 1,000,000 Each Redeemable On 11-Apr-2016 At
Premium
Redeemable On 27-Jul-2015 At Premium
Zero Coupon Secured Redeemable Non-Convertible Debentures of Face
value ` 1,000,000 Each Redeemable on 27-Jul-2015 at premium
Zero Coupon Secured Redeemable Non-Convertible Debentures of Face
Value ` 1,000,000 Each Redeemable on 22-Apr-2015 at premium
Total
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
-
50.00
50.00
-
-
59.00
59.00
-
-
13.00
13.00
-
-
2,275.08
2,094.35
-
-
200.49
104.46
-
-
35.00
35.00
-
-
44.70
39.70
-
-
26.70
26.70
-
-
85.20
85.20
-
-
148.40
148.40
-
-
142.50
117.20
-
-
388.90
381.80
-
-
27.50
27.50
-
-
146.00
145.50
-
-
74.40
74.40
-
-
266.10
235.70
-
-
-
500.00
-
-
-
-
150.00
-
-
-
100.00
28,091.67
35,239.75
12,195.12
200.00
800.00
The above debentures are secured by way of registered mortgage and or charge over immoveable property and/or current assets, book debts, receivables
(both present and future) and other assets of the Company. Debenture redemption reserves on the Non Convertible Debentures have been created as
disclosed in note 4.1.
140
NOTE 5.2. NON CONVERTIBLE DEBENTURES – UNSECURED
Particulars
Redeemable On 24-May-2023 At Par
Redeemable On 4-Nov-2022 At Par
Redeemable On 30-Aug-2022 At Par
Redeemable On 30-Aug-2022 At Par
9.30% Unsecured Redeemable Non Convertible Subordinated Debentures
Series U04 Of Face Value ` 1,000,000 Each Redeemable On 11-Feb-2022 At Par
Series U03 Of Face Value ` 1,000,000 Each Redeemable On 25-Jan-2022 At Par
10.50% Non-Convertible Debentures Of Face Value ` 1,000 Each Redeemable
On 16-Sept-2021 At Par
On 10-Sept-2021 At Par
Series U02 Of Face Value ` 1,000,000 Each Redeemable On 10-Aug-2021 At Par
Series U01 Of Face Value ` 1,000,000 Each Redeemable On 26-Jul-2021 At Par
Redeemable On 4-Sep-2020 At Par
Redeemable On 3-June-2020 At Par
Redeemable On 30-Apr-2020 At Par
12% Unsecured Subordinate Non Convertible Debentures Option I Of Face
Value ` 1,000 Each Redeemable On 02-Apr-2020 At Par
Zero Coupon Unsecured Subordinate Non Convertible Debentures Option II
Of Face Value ` 1000 Each Redeemable On 02-Apr-2020 At Premium
On 30-Mar-2019 (SBMIB VII – 7 Years) At Par
On 30-Mar-2019 (SBMIB VI - 7 Years) At Par
On 2-Mar-2019 (SBMIB V – 7 Years) At Par
Redeemable On 27-Feb-2019 At Par
Redeemable On 27-Feb-2019 At Premium
Redeemable On 27-Feb-2019 At Par
On 23-Feb-2019 (SBMIB IV – 7 Years) At Par
Redeemable On 20-Feb-2019 At Par (Refer Note - 5.2.1)
On 7-Feb-2019 (SBMIB III – 7 Years) At Par
On 7-Feb-2019 (SBMIB II – 7 Years) At Par
On 18-Jan-2019 (SBMIB I – 7 Years) At Par
12.75% Non-Convertible Debentures Series N5 Of Face Value ` 1,000 Each
12.75% Non-Convertible Debentures Series N6 Of Face Value ` 1,000 Each
Non-Current
As at
As at
March 31, 2016
March 31, 2015
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
100.00
100.00
-
-
230.00
230.00
-
-
150.00
150.00
-
-
50.00
50.00
-
-
100.00
-
-
-
100.00
-
-
-
150.00
-
-
-
200.00
-
-
-
100.00
-
-
-
170.00
-
-
-
2,000.00
2,000.00
-
-
100.00
100.00
-
-
450.00
450.00
-
-
1,798.58
1,798.58
-
-
201.42
201.42
-
-
0.35
0.35
-
-
0.05
0.05
-
-
0.09
0.09
-
-
250.00
250.00
-
-
250.00
250.00
-
-
250.00
250.00
-
-
0.47
0.47
-
-
500.00
500.00
-
-
0.25
0.25
-
-
0.03
0.03
-
-
1.16
1.16
-
-
3,948.53
3,948.53
-
-
600.38
600.38
-
-
141
Non-Current
As at
As at
March 31, 2016
March 31, 2015
Particulars
Zero Coupon Non-Convertible Debentures Series N7 Of Face Value ` 1,000
Each Redeemable On 17-Sep-2018 At Par
On 04-Apr-2018 (SBDB VI – 6 Years) At Par
On 30-Mar-2018 (SBDB V – 6 Years) At Par
On 30-Mar-2018 (SBDB IV – 6 Years) At Par
On 1-Mar-2018 (SBDB III – 6 Years) At Par
On 7-Feb-2018 (SBDB II – 6 Years) At Par
On 23-Jan-2018 (SBDB I – 6 Years) At Par
On 30-Mar-2017 (SBMIB VI – 5 Years) At Par
On 30-Mar-2017 (SBMIB VII – 5 Years) At Par
On 2-Mar-2017 (SBMIB V – 5 Years) At Par
On 23-Feb-2017 (SBMIB IV – 5 Years) At Par
On 7-Feb-2017 (SBMIB III – 5 Years) At Par
On 7-Feb-2017 (SBMIB II – 5 Years) At Par
On 18-Jan-2017 (SBMIB I – 5 Years) At Par
Total
(` in Millions)
Current
As at
As at
March 31, 2016 March 31, 2015
451.09
451.09
-
-
1.77
1.77
-
-
1.79
1.79
-
-
1.44
1.44
-
-
2.41
2.41
-
-
2.54
2.54
-
-
3.76
3.76
-
-
-
3.23
3.23
-
-
2.33
2.33
-
-
3.13
3.13
-
-
3.79
3.79
-
-
4.77
4.77
-
-
3.30
3.30
-
12,166.11
4.27
11,370.91
4.27
24.82
-
NOTE 5.2.1 For these non convertible debentures, the company has a call option, after 5 years from the date of allotment subject to
prior approval from the Reserve Bank of India for redemption. These non convertible debentures do not have any put option.
NOTE 5.3 TERM LOANS FROM BANKS-SECURED
(` in Millions)
Non-current
Maturities
Rate of interest*
9.00 % to 10.00 %
10.01 % to 11.00 %
11.01 % to 12.00 %
Total
1-3 years 3 years and
above
9,054.85
25,262.36
437.50
34,754.71
3,269.80
8,024.40
11,294.20
Total
1-3 years
3 years and
above
Total
12,324.65
33,286.76
437.50
46,048.91
27,073.46
9,486.67
36,560.13
6,467.08
2,155.00
8,622.08
33,540.54
11,641.67
45,182.21
*The rate of interest for the above term loans are linked to the base rates of the banks and are subject to change from time to time. The above categorization of loans has been
based on the interest rates, prevalent as on the respective reporting dates.
142
NOTE 6. PROVISIONS
(` in Millions)
Particulars
Provision for employee benefits
Provision for leave encashment
Provision for gratuity (Refer Note – 19.1)
Subtotal
Other Provisions
Provision for Tax {Net of Advance Tax & TDS ` 3,218.59/- (P Y : ` 1,945.61/-)}
Provision for expenses
Proposed Dividend (including dividend payable)
Dividend Distribution Tax on Dividend
Subtotal
Total
Non-Current
As at
As at
March 31, 2016 March 31, 2015
Current
As at
March 31, 2016
As at
March 31, 2015
24.28
24.28
18.87
18.87
10.22
5.30
15.52
8.37
2.04
10.41
700.58
700.58
724.86
550.10
550.10
568.97
408.12
312.15
146.85
32.57
899.69
915.21
491.32
549.95
35.98
14.45
1,091.70
1,102.11
NOTE 7. SHORT TERM BORROWINGS
(` in Millions)
Particulars
Secured Loans:
Bank overdraft
Short term Loan from banks
Loan from financial Institution
Sub total
Unsecured Loans:
Commercial Paper
Less : Unexpired discount on commercial paper
Inter Corporate deposit
Sub total
Total
As at
March 31, 2016
As at
March 31, 2015
4,770.45
1,450.00
6,220.45
3,961.30
1,700.00
1,000.00
6,661.30
27,650.00
26,650.00
(323.09)
27,326.91
33,547.36
(324.66)
1,020.00
27,345.34
34,006.64
The above secured borrowings are secured by way of first pari-passu charge over the current assets in the form of receivables, book debts,
bills, outstanding monies receivables including future movable assets, other than those specifically charged. Out of the above secured
borrowings, ` 4,770.45 millions (Previous Year ` 5,658.68 millions) are also guaranteed by holding Company IIFL Holdings Limited.
NOTE 8. OTHER CURRENT LIABILITIES
(` in Millions)
Particulars
Current Maturities of Long Term Borrowings
Secured Non Convertible Debentures
Unsecured Non Convertible Debentures
Loans from Banks
Sub-total (Refer Note-5)
Others
Advances from customers
Accrued salaries and benefits
Contractually reimbursable expenses
Income received in advance
Interest accrued but not due on borrowings
As at
March 31, 2016
As at
March 31, 2015
12,195.12
24.82
21,053.02
33,272.96
800.00
13,233.83
14,033.83
753.24
279.90
369.79
48.77
4,379.71
990.30
218.59
125.24
66.91
2,566.16
143
(` in Millions)
Particulars
Payables on account of assignment /securitization transactions
Payable to group company (Refer Note- 38)
Statutory remittances
Temporary overdrawn Bank balance as per books
Other payables
Sub-total
Total
As at
March 31, 2016
As at
March 31, 2015
1,050.31
68.26
6,512.33
23.50
13,485.81
46,758.77
851.06
6.87
56.96
1,425.20
19.62
6,326.92
20,360.75
NOTE 9. TANGIBLE ASSETS
(` in Millions)
Particulars
Cost or valuation as at April 01,2015
Additions
Deductions/Adjustments during the year
As at March 31,2016
Depreciation
Upto April 01,2015
Depreciation for the year
Deductions/Adjustments during the
year
Upto March 31,2016
132.30
17.75
(20.58)
129.47
Electrical
Equipment
349.92
13.52
(111.54)
251.90
Furniture
And Fixture
756.18
20.78
(286.34)
490.62
Office
Equipment
350.27
6.75
(99.55)
257.47
126.73
7.43
245.79
58.67
520.60
123.55
(19.57)
(98.75)
114.58
14.87
5.57
205.72
46.18
104.12
Computer
Premises
Vehicles
Total
285.98
139.36
425.34
5.50
5.41
10.91
1,880.15
203.57
(518.01)
1,565.71
231.20
61.67
26.11
16.62
0.24
1.50
1,150.67
269.44
(243.79)
(87.02)
-
-
(449.13)
400.36
90.27
235.58
205.85
51.62
119.07
42.73
382.62
259.87
1.74
9.17
5.26
970.98
594.73
729.48
NOTE 10. INTANGIBLE ASSETS
(` in Millions)
Amount
Particulars
Software/Intangible assets
Cost or valuation as at April 1, 2015
Additions
Amortisation
As at April 1, 2015
Amortisation for the year
Up to March 31, 2016
6.25
(0.24)
6.01
6.13
0.10
(0.24)
5.99
0.02
0.12
NOTE 11. NON – CURRENT INVESTMENTS
Particulars
Quoted, Non Trade, Long Term (Valued at Cost)
Non Convertible Debentures:
India Infoline Finance Limited Unsecured NCD-Series N6
India Infoline Finance Limited Unsecured NCD-Series N7
Total Quoted Investment {I}
Unquoted, Non Trade, Long Term (Valued at Cost)
144
Face
Value in `
1,000
1,000
Number
Amount
(` in Millions)
Number
Amount
1,085
261
1.22
0.35
1.57
Particulars
Equity Shares Others:
Credit Information Bureau (India) Limited
Sub-total (B)
Unquoted , Non- Trade ,Non – Current
Mutual Funds:
Arch Agro Industries Limited
Assotech Limited
Radius & Deserve Land Developers Pvt Ltd
Roseberry Developers Private Limited- (Series B)
Shambhavi Realty Private Limited
Sheth Buildwell Private Limited
Nuevo Suncity Private Limited
Renaissance Indus Infra Private Limited
Galleria Developers Private Limited- (Series C)
Wahwa Group Holdings Private Limited
Sub-total (C)
Market Linked Debenture
Reliance Capital Limited (Refer Note - 11.1)
Sub-Total (D)
Grand Total (A+B+C+D)
Face
Value in `
Number
Amount
(` in Millions)
Number
Amount
10
250,000
155.00
155.00
250,000
155.00
155.00
10
4,562,418
50.00
-
-
10,000
100,000
1,000,000
100,000
65,981
100,000
100,000
100,000
100,000
100,000
100,000
13,131
100,000
100,000
13,073
2,600
120
130.73
260.00
120.00
1,516
4,000
4,000
9,500
16,320
2,634
-
100.00
400.00
400.00
950.00
1,631.99
34.59
(26.15)
4,001.16
13,073
4,680
2,400
3,000
7,425
959
2,580
700
3,723
10,000
857
11,500
-
130.73
468.00
240.00
300.00
742.50
95.92
258.00
70.00
372.27
1,000.00
85.71
1,150.00
(26.15)
4,886.98
100,000
508
448
44.80
44.80
5,088.36
50.80
50.80
4,256.96
NOTE 11.1 Held to cover possible payout in respect of certain structured products issued by the Company.
NOTE 12. DEFERRED TAX ASSETS
The company has 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
results in a net deferred tax asset:
(` in Millions)
Sr.
No.
a.
b.
c.
d.
e.
Particulars
On Depreciation
On Gratuity
On Provision for doubtful debts
On Provision for Expenses
On Provision for standard assets
Gross Deferred Tax Asset (A)
Deferred Tax Liability on Special Reserve (B)
Net Deferred Tax Asset (A-B)
As at
March 31, 2016
As at
March 31, 2015
264.56
1.82
561.73
242.46
1,070.57
209.34
0.70
418.23
52.27
190.38
870.92
104.16
966.41
42.05
828.87
145
NOTE 13. LOANS & ADVANCES
(` in Millions)
Particulars
Non-Current
As at
As at
March 31, 2016 March 31, 2015
Loans & Advances
-Secured,Considered Good
-Secured,Considered Doubtful (Non-Performing Loans)
-Unsecured, Considered Good (Non-Performing Loans)
Less : Provision for Doubtful Loans
Sub-total
Others loans & advances
Dues from Customers:
-Secured, Considered Good
-Secured, Considered Doubtful (Non-Performing Loans)
-Unsecured, Considered Good (Non-Performing Loans)
Deposits given
Deposit with exchanges
Capital advances:
-Secured
-Unsecured
Unsecured Inter Corporate Deposit
Advance Income Tax {(Net of provision for Tax `3,649.65/- (P Y : ` 2,875.18/-)}
Sub-total
Total
Current
As at
March 31, 2016
As at
March 31, 2015
89,444.60
1,658.27
41.29
(1,073.15)
90,071.01
49,743.37
1,560.26
(747.98)
50,555.65
79,623.54
148.68
220.63
(517.74)
79,475.11
87,251.98
233.17
(321.81)
87,163.34
159.46
181.00
-
5,432.48
684.94
8.16
67.00
7,487.96
57.93
5.73
90.00
1,013.23
1,172.69
91,243.70
11.08
576.73
768.81
51,324.46
6,192.58
85,667.69
7,641.62
94,804.96
NOTE 14. OTHER ASSETS
(` in Millions)
Particulars
Non-Current
As at
As at
March 31, 2016 March 31, 2015
Unamortised debenture issue expenses
Prepaid expenses
Service tax input credit receivable
Staff loans
Others
Total
82.05
50.02
132.07
Current
As at
March 31, 2016
As at
March 31, 2015
72.49
147.85
5.03
1.69
34.20
261.26
143.63
134.50
3.20
1.55
149.33
432.21
113.45
68.86
182.31
NOTE 15. CURRENT INVESTMENTS: (VALUED AT COST OR MARKET VALUE WHICHEVER IS LOWER UNLESS STATED OTHERWISE)
Particulars
Quoted, Trade, Current
Bonds:
8.48% NHAI -2028
7.35% NHAI -2031
Sub-total (A)
Government Securities:
Less: Provision for diminution in the value of investment (Refer Note – 24)
Sub-Total (B)
146
Face
Value in `
1,000,000
1,000
100
100
Number
Amount
105,974
(` in Millions)
Number
Amount
109.57
109.57
90
98.38
98.38
-
5,000,000
10,000,000
450.50
1,029.40
1,479.90
Particulars
Mutual Funds:
Kotak Bond Plan A
HDFC Monthly Income Plan-Long Term Plan-Growth
Birla Sunlife Income Plus Growth
Reliance Fixed Horizon Fund
ICICI Prudential Gilt fund
ICICI Prudential Value Fund Series 6 (Div)
ICICI Prudential Value Fund Series 6 (G)
Birla Sunlife Fixed Term Plan SR IP Regular
Subtotal (C)
Total Quoted Investment (A+B+C) {I}
Unquoted, Non- Trade, Current
Mutual Funds:
DWS Ultra Short Term Fund
IIFL Liquid Fund Regular Growth
Subtotal (D)
Assotech Limited
Renaissance Indus Infra Pvt. Ltd.
Sheth Buildwell Private Ltd
Pratibha Impex Private Limited
Roseberry Developers Private Limited- Series B
Wadhwa Constructions and Infrastructures Private Limited
Sub Total (E)
Unquoted, Trade, Current
Mutual Funds:
Investment - Indiareit Apartment Fund
IIFL Income Opportunities Fund
IIFL National Development Agenda Fund
IIFL Income Opportunities - Special Situation Class B
IIFL Real Estate Fund ( Domestic) Series 1 Class B*
IIFL Real Estate Fund ( Domestic) Series 1 Class C
Subtotal (F)
Total Unquoted Investment (D+E+F) {II}
Grand Total {I+II}
Aggregate cost of quoted mutual fund units
NAV of quoted mutual fund units
Aggregate cost of quoted investments
Aggregate market value of quoted investments
Aggregate cost of unquoted investments
Face
Value in `
10
10
10
10
10
10
10
10
10
10
1,000
Number
Amount
8,438,732
13,781,672
5,638,900
(` in Millions)
Number
Amount
337.95
393.33
355.48
380.98
1,467.74
1,577.31
12,114,297
17,878,898
7,493,687
20,000,000
-
-
73,501,223
11,230,487
8,986
1,130.00
120.00
10.00
1,260.00
2,459
492
25
2,000
2,905
245.88
49.24
2.49
200.00
85.53
400.00
983.14
520
137
2,000
1,600
5,000
2,000
300
6,027
52.00
13.67
200.00
160.00
500.00
200.00
30.00
602.73
1,758.40
10.61
69.78
100.00
275.03
186.49
641.91
1,625.05
3,202.37
1,467.75
1,544.99
1,577.32
1,653.98
1,625.05
9,890,182
9,713,024
5,857,833
214
7,500,000
102.91
100.00
59.53
0.00
554.54
816.98
3,835.38
7,144.82
1,731.16
1,735.60
3,309.45
3,356.73
3,835.37
13,703,744
-
100,000
100,000
100,000
100,000
100,000
29,443
100,000
100,000
100,000
100,000
4,000
-
100,000
1
10
10
10
57
96
58,351,970
9,713,024
25,542,335
7,500,000
500,000
2,500,000
3,500,000
483.30
508.30
470.80
200.00
5.00
25.00
38.76
1,731.16
3,309.44
*amount is less than ` 0.01 million, hence shown as ` 0.00 million wherever applicable
147
NOTE 16. CASH AND BANK BALANCE
(` in Millions)
Current
Particulars
Cash and Cash Equivalents
Cash on hand
Balance with Banks:
- In Current accounts
Subtotal (A)
Other Banks Balances
Deposits pledged with bank as margin for credit enhancement/ guarantees for credit enhancement/ lien
against loans taken (Refer Note 16.1)
Deposits with original maturity for more than three months but less than twelve months (Refer Note 16.1)
Subtotal (B)
Total (A+B)
As at
March 31, 2016
As at
March 31, 2015
126.06
443.83
4,061.63
4,187.69
7,874.50
8,318.33
2,268.30
51.54
2,319.84
6,507.53
2,560.32
25.08
2,585.40
10,903.73
NOTE 16.1. DETAILS OF FIXED DEPOSITS
(` in Millions)
Amount
Breakup of Fixed Deposits
Lien Marked
First Loss Credit Enhancement
Second Loss Credit Enhancement
Free FDR
Interest accrued on Fixed Deposits
551.88
1,529.90
186.52
28.80
22.74
2,319.84
NOTE 17. REVENUE FROM OPERATIONS
(` in Millions)
Particulars
Income from financing activities
Profit from sale of investments (Net)
Dividend Income
Total
2015-2016
2014-2015
24,959.23
772.79
3.75
25,735.77
22,596.03
292.43
116.44
23,004.90
NOTE 18. OTHER INCOME
(` in Millions)
Particulars
Processing fee
Interest on fixed deposits
Administration fee & other charges from customer
Miscellaneous income
Total
148
2015-2016
2014-2015
804.32
211.04
652.78
249.88
1,918.02
503.33
170.45
296.22
136.09
1,106.09
NOTE 19. EMPLOYEE BENEFIT EXPENSES
(` in Millions)
Particulars
Salaries
Contribution to and provision for :
- Provident and other Funds (Refer note - 19.2)
- Leave encashment
- Gratuity
Staff welfare expenses
Total
2015-2016
2014-2015
2,452.82
1,994.58
112.64
18.38
21.30
86.03
2,691.17
78.10
12.82
5.50
69.29
2,160.29
NOTE 19.1. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD (AS) 15 REVISED “EMPLOYEE BENEFIT”
(` in Millions)
Particulars
Assumptions
Discount rate
Salary escalation
Rate of return on plan assets
Change in Benefit Obligation
Liability at the beginning of the year
Interest cost
Liability transferred out
Benefit paid
Actuarial (Gain)/ loss on obligations
Amount Recognized in the Balance Sheet
Fair value of plan assets at the end of the year
Funded status (Surplus)
Net Liability/(Asset) recognized in the Balance Sheet
Expense Recognized in Statement of Profit and Loss
Interest cost
Expected return on plan assets
Benefit paid
Actuarial (Gain) or loss
Expense Recognized in Statement of Profit and Loss
Balance Sheet reconciliation
Opening net liability
Net transfer in
Net transfer out
Expenses as above
Employers contribution
Net Liability/(Asset) recognized in the Balance Sheet
2015-2016
2014-2015
7.84%
5.00%
7.84%
7.89%
5.00%
7.89%
46.85
3.70
14.16
5.21
(3.44)
(13.02)
4.83
58.28
42.76
3.91
15.07
2.61
(0.73)
(3.70)
(13.07)
46.85
(58.28)
52.99
(5.29)
(5.29)
(46.85)
44.81
(2.04)
(2.04)
3.70
14.16
(3.54)
6.98
21.30
3.90
15.07
(0.26)
(13.21)
5.50
2.04
5.21
(3.44)
21.30
(19.81)
5.30
39.82
2.61
(0.73)
5.51
(45.17)
2.04
149
NOTE 19.2. DEFINED CONTRIBUTION PLANS
The Company has also recognised the following amount as an expense:
(` in Millions)
Particulars
Contribution to provident and other fund
2015-2016
2014-2015
95.24
56.47
NOTE 20. FINANCE COST
(` in Millions)
Particulars
Interest expenses
Other borrowing cost
Total
2015-2016
2014-2015
15,820.78
269.81
16,090.59
13,612.01
243.87
13,855.88
NOTE 21. DEPRECIATION AND AMORTISATION EXPENSES
(` in Millions)
Particulars
Depreciation on Tangible Assets (Refer Note -9)
Amortisation of Intangible Assets (Refer Note -10)
Total
2015-2016
2014-2015
269.45
0.10
269.55
312.27
0.10
312.37
NOTE 22. OTHER EXPENSES
(` in Millions)
Particulars
Advertisement
Books & periodicals
Bank charges
Communication
Corporate social responsibility expenses (Refer Note -37)
Direct operating expenses
Electricity charges
Exchange & statutory charges
Insurance premium
Legal & professional fees
Loss on sale of fixed assets
Marketing expenses
Membership & subscription charges*
Miscellaneous expenses
Office expenses
Postage & courier
Printing & stationery
Rent
Rates & taxes
Repairs & maintenance:
- Computer
- Others
Remuneration to Auditors:
- Audit fees
- Certification expenses
- Out of pocket expenses
Software charges
Travelling & conveyance
Total
*amount is less than ` 0.01 million, hence shown as ` 0.00 million wherever applicable
150
2015-2016
2014-2015
43.90
0.50
42.58
77.14
68.90
84.38
87.30
21.22
29.16
264.21
6.97
430.28
0.00
4.90
252.76
32.89
40.43
462.28
4.69
60.93
0.78
47.32
81.37
13.75
89.15
94.68
29.55
53.59
163.24
2.41
390.71
0.10
8.08
359.09
22.91
54.96
492.03
1.20
12.72
32.81
9.00
40.03
1.42
0.15
0.02
58.83
246.18
2,306.62
1.42
0.09
0.09
7.00
195.21
2,218.69
NOTE 23. PROVISIONS AND WRITE OFF
(` in Millions)
Particulars
As at
March 31, 2016
As at
March 31, 2015
413.82
1.73
521.11
150.48
1,087.14
43.51
258.01
14.40
493.11
240.20
1,049.23
Bad debts written off
Provision for diminution in the value of Investments
Provision for doubtful loans (Non performing assets)
Provision for standard loans
Total
NOTE 24. BASIC AND DILUTED EARNINGS PER SHARE (EPS) COMPUTED IN ACCORDANCE WITH ACCOUNTING STANDARD (AS)
20 “EARNINGS PER SHARE”
(` in Millions)
Particulars
Basic EPS
Profit after Tax as per statement of profit and loss
Less: Preference Dividend & DDT on Preference Dividend
Profit after Tax attributable to Equity shareholders (` in Million)
Weighted average number of equity shares beginning
Basic EPS (`)
Diluted EPS
Profit after Tax as per statement of profit and loss
Less: Preference Dividend & DDT on Preference Dividend
Profit after Tax attributable to Equity shareholders (` in Million)
Weighted average number of equity shares beginning
Add: Potential Equity Shares on account of grant of Employees Stock Options
Diluted EPS (`)
Face Value per share
2015-2016
2014-2015
3,387.01
392.67
2,994.33
237.15
12.6
3,012.28
129.86
2,882.42
237.15
12.2
3,387.01
392.67
2,994.33
237.15
0.78
237.93
12.6
10.0
3,012.28
129.86
2,882.42
237.15
237.15
12.2
10.0
A
B
A/B
C
D
C/D
NOTE 25. The summary of consolidated Financial Statements represents consolidation of accounts of the Company with its following
subsidiaries, all incorporated within India, as detailed below:
(` in Millions)
Proportion of ownership interest*
Particulars
As at
March 31, 2016
As at
March 31, 2015
100%
100%
*Based on equity share capital holding.
NOTE 26. AS ON MARCH 31, 2016, CONTINGENT LIABILITIES NOT PROVIDED FOR ARE AS FOLLOWS
(` in Millions)
Sr.
No.
(i)
(ii)
Particulars
In respect of Income tax demands (Refer Note 26.1)
Legal suits filed by the consumers in consumer forum and civil court (Refer note 26.2)
Total
As at
March 31, 2016
As at
March 31, 2015
257.84
0.34
258.17
161.87
0.20
162.07
151
NOTE 26.1. The Company has filed appeal against the said demands raised by the department.
NOTE 26.2. The Company is subject to legal proceedings and claims which have arisen in the ordinary course of the business. The Company’s
management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have material and adverse effect on
the Company’s financial position.
NOTE 27. As on the Balance Sheet date, there were outstanding commitments of capital expenditure of ` 26.96 millions (Net of advances) (Previous
Year ` 5.06 millions), out of the total contractual obligation entered up to the end of the year.
NOTE 28. DETAILS OF PROPOSED PREFERENCE DIVIDEND
(` in Millions)
Particulars
Dividend Proposed by IIFL
On 8.00% Compulsorily Redeemable Non- Convertible Non Cumulative Preference Shares of ` 10 each
Number of shares
Dividend (A) (` in Million)
On 8.00% Compulsorily Redeemable Non Convertible Cumulative Preference Shares of ` 10 each
Number of shares
Dividend (B) (` in Million)
On 9.25% Compulsorily Redeemable Non Convertible Cumulative Preference shares of ` 10 each
Number of Shares
Dividend (C) (` in Million)
Total (A+B+C) {I} (` in Million)
Dividend Proposed by Subsidiary – IIHFL
On 6.00% Compulsory Convertible Cumulative Redeemable Preference Shares of ` 10 Each
No of Shares
Dividend (D) (` in Million)
On 10.00% Redeemable Preference Shares of ` 10 Each
No of Shares
Dividend (E) (` in Million)
Total (D+E) {II} (` in Million)
Total {I+II} (` in Million)
As at
March 31, 2016
As at
March 31, 2015
` 0.8 Per share
75,000,000
60.00
` 0.8 Per share
75,000,000
30.25
` 0.8 Per share
100,000,000
80.00
` 0.8 Per share
100,000,000
3.07
140.00
` 0.9 Per share
150,000,000
2.66
35.98
-
` 0.6 Per share
135,000,000
81.00
` 1 Per share
20,000,000
20.00
20.00
160.00
` 1 Per share
20,000,000
20.00
101.00
136.98
NOTE 29. The Company operates from and uses the premises, infrastructure and other facilities and services as provided to it by its
holding company/ 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/recoverable 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.
NOTE 30. The Company has taken office premises on operating lease at various locations. Lease rent in respect of the same have been
charged to statement of Profit and Loss .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 180 days. The Company has also taken some other assets under operating lease. The minimum lease rentals
outstanding as at March 31, 2016, are as under:
(` in Millions)
Minimum Lease Payments
Upto One year
One to five years
Total
152
As at
March 31, 2016
As at
March 31, 2015
47.31
0.45
47.76
53.78
0.95
54.73
NOTE 31. 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.
NOTE 32. Details of Dues to Micro, Small and Medium Enterprises:
Other Current liabilities includes ` Nil (Previous year ` Nil) payable to “Suppliers” registered under the Micro, Small and Medium Enterprises
Development Act, 2006. No interest has been paid / is payable by the Company during the year to “Suppliers” registered under this act.
The aforementioned is based on the responses received by the Company to its inquiries with suppliers with regard to applicability under
the said Act.
NOTE 33. RETURN ON ASSETS
The return on assets for the financial year 2015-2016 was 1.8% (Previous year 2.0%).
NOTE 34. The Company has implemented “India Infoline Finance Limited Employees Stock Options Scheme-2015” (IIFL ESOP 2015) and
has outstanding options granted under the said scheme. The options are granted by the Nomination & Remuneration Committee vest in
graded manner and must be exercised within the specified period as per the IIFL ESOP 2015.
(A) The details of the Employee Stock Option Schemes is as under:
Particulars
No. of options as on March 31, 2016
Method of accounting
Vesting plan
Exercise period
Grant Dates
Grant Price (` Per Share)
Book Value on the date of Grant of Option (` Per Share)
Schedule of vesting
On first anniversary of the grant
On second anniversary of the grant
On third anniversary of the grant
On fourth anniversary of the grant
ESOP 2015
780,040
Intrinsic Value
Please refer the schedule below
Maximum 7 years from the date of grant.
2-Dec-2015 and 9-Mar-2016
83.00
83.00
Vesting Proportion
(B) Movement of option Granted
Particulars
Options outstanding at the beginning of the year
Granted during the year
Exercised during the year
Lapsed during the year
Options outstanding at the end of the year
ESOP 2015
780,040
780,040
NOTE 35. During the year under review, the Company had come across frauds totaling to ` 13.28 millions (Previous year ` 41.46 millions) in
respect of our lending operations. Out of the above ` 2.84 millions (Previous year ` 23.32 millions) has already been recovered. Suitable
action has been taken by the Company to recover the balance amounts.
153
NOTE 36. As on March 31, 2016 the gold loan portfolio comprises 14.99% (Previous year 22.03%) of the total asset of the Company.
NOTE 37. CORPORATE SOCIAL RESPONSIBILITY
During the financial year 2015-16, the Company spend ` 68.90 millions (P.Y. ` 13.75 millions) out of the total amount of ` 69.10 millions
(P.Y. ` 49.01 millions) required to be spent as per section 135 of the Companies Act 2013 in respect of Corporate Social Responsibility
[CSR]. The Company was focused on implementing the projects identified by the CSR Committee and had successfully completed most
of the projects. The Company had substantially utilized the amount required to be spent on CSR projects and small amount of ` 0.20
million remain as unspent. The Company has many ongoing projects and plans to further increase the spend in the years to come
through its impact driven projects.
NOTE 38. DISCLOSURES IN RESPECT OF APPLICABILITY OF AS – 18 RELATED PARTY DISCLOSURES
(a) Related parties where control exists:
Nature of Relationship
Holding Company
Direct Subsidiaries
Fellow Subsidiaries
Group Companies
Other related parties
154
Name of party
India Infoline Media & Research Services Limited
India Infoline Limited (Formerly India Infoline Distribution Company Limited)
IIFL Realty Limited
India Infoline Commodities DMCC
IIFL Wealth (UK) Limited
IIFL Capital Inc.
IIFL Asset Reconstruction Company Limited
IIFL Distribution Services Limited (Formerly IIFL Distribution Services Private Limited)
IIFL Investment Advisor and Trustee Services Limited (Formerly IIFL Trustee Services Limited)
India Infoline Trustee Company Limited
IIFL Alternate Asset Advisors Limited
IIFL (Asia) Pte. Limited
IIFL Capital Pte. Limited
IIFL Securities Pte Limited
IIFL Private Wealth Hong Kong Limited
IIFL Private Wealth (Mauritius) Limited
IIFL Private Wealth Management (Dubai) Limited
IIFL Inc.
IIFL Private Wealth (Suisse) SA.
IIFL Properties Private Limited (Formerly Ultra Sign and Display Private Limited)
IIFL Wealth Finance Limited (Formerly Chephis Capital Markets Limited)
Nirmal Jain
Rajashree Nambiar
R. Venkataraman
Madhu Jain (Spouse of Mr. Nirmal Jain)
Valentino S. Peter (Spouse of Mrs. Rajashree Nambiar)
Orpheus Trading Private Limited
Ardent Impex Private Limited
(b) Significant Transaction with Related Parties:
(` in Millions)
Interest Income
IIFL Facilities Services Limited( Formerly Known As IIFL
Realty Limited)
India Alternates Investment Advisors Private Limited
Mrs. Madhu Jain
Interest Expense
Realty Limited)
Markets Limited)
Key
Group Management
Companies
Personnel /
Other
Holding
Company
Fellow
Subsidiary
Direct
Subsidiary
(7.83)
-
3.32
(3.23)
11.93
(7.69)
0.78
(7.74)
1.87
(2.90)
0.94
(0.42)
0.09
0.75
(0.16)
22.13
(2.75)
-
-
45.44
1.00
2.53
(2.80)
-
4.21
-
45.44
(7.83)
3.32
(3.23)
11.93
(7.69)
1.00
0.78
(7.74)
2.53
(2.80)
1.87
(2.90)
0.94
(0.42)
0.09
0.75
(0.16)
22.13
(2.75)
4.21
-
4.23
(3.31)
-
42.42
(0.47)
(0.82)
0.08
7.31
(4.30)
0.02
(0.38)
0.29
-
-
0.12
(0.99)
-
-
0.12
42.42
(0.47)
4.23
(3.31)
(0.82)
0.08
7.31
(4.30)
0.02
(0.38)
(0.99)
0.29
-
Grand Total
155
(` in Millions)
Referral Fees Income
Interest Income Reversal
Mrs. Madhu Jain
Donation Paid
Key
Group Management
Companies
Personnel /
Other
Holding
Company
Fellow
Subsidiary
Direct
Subsidiary
-
226.07
(42.58)
-
-
-
226.07
(42.58)
-
-
-
-
0.49
-
0.49
-
-
0.07
-
-
-
-
0.07
-
-
12.36
1.56
(0.95)
-
-
-
12.36
1.56
(0.95)
-
78.91
(71.00)
-
-
1.92
(0.38)
-
78.91
(71.00)
1.92
(0.38)
-
0.59
(0.56)
-
-
-
0.59
(0.56)
-
-
-
-
73.51
(46.72)
73.51
(46.72)
-
(30.00)
-
-
-
-
1.53
-
-
-
(30.00)
31.78
(36.00)
1.53
-
644.79
(586.17)
-
-
-
-
644.79
(586.17)
1,005.00
(5,690.00)
-
11,880.00
(1,020.00)
150.00
2,750.00
(1,467.58)
-
-
-
11,880.00
(1,020.00)
1,005.00
(5,690.00)
150.00
2,750.00
(1,467.58)
Grand Total
Arranger / Management / Marketing Support /
Processing Fees / Advisory expenses
Realty Limited)
Rent Expenses
Realty Limited)
IIFL Properties Private Limited( Formerly Known As Ultra
Sign and Display Private Limited)
Commission / Brokerage expense
Preference Dividend
31.78
(36.00)
Equity Dividend
ICD Taken
Realty Limited)
IIFL Holding Limited
Markets Limited)
156
(` in Millions)
ICD Returned
Realty Limited)
Markets Limited)
ICD Given
Realty Limited)
Holding
Company
Fellow
Subsidiary
Direct
Subsidiary
Group
Companies
-
(110.00)
540.00
(1,110.00)
10.00
-
-
(300.00)
-
Key
Management
Personnel /
Other
-
1,005.00
(5,690.00)
-
12,900.00
150.00
2,750.00
(1,467.58)
540.00
(1,110.00)
(110.00)
(300.00)
10.00
-
-
-
-
12,900.00
1,005.00
(5,690.00)
150.00
2,750.00
(1,467.58)
540.00
(1,110.00)
(110.00)
(300.00)
10.00
-
(500.00)
-
543.00
(1,069.50)
2,387.00
(435.50)
490.00
(2,543.42)
309.00
(465.00)
257.00
(16.00)
3.50
500.00
(500.00)
-
4,747.50
25.00
61.50
(40.00)
-
-
4,747.50
(500.00)
543.00
(1,069.50)
2,387.00
(435.50)
25.00
490.00
(2,543.42)
61.50
(40.00)
309.00
(465.00)
257.00
(16.00)
3.50
500.00
(500.00)
Grand Total
(110.00)
(300.00)
540.00
(1,110.00)
10.00
-
157
(` in Millions)
Holding
Company
Fellow
Subsidiary
Direct
Subsidiary
Group
Companies
-
1,815.30
(97.50)
-
-
Key
Management
Personnel /
Other
-
-
(500.00)
543.00
(1,069.50)
2,387.00
(435.50)
490.00
(2,543.42)
(40.00)
309.00
(465.00)
257.00
(16.00)
3.50
500.00
(500.00)
1,815.30
(97.50)
-
4,747.50
25.00
61.50
-
-
(500.00)
543.00
(1,069.50)
2,387.00
(435.50)
25.00
490.00
(2,543.42)
61.50
(40.00)
309.00
(465.00)
257.00
(16.00)
3.50
500.00
(500.00)
1,815.30
(97.50)
-
-
-
-
1,701.48
-
1,701.48
-
-
-
-
-
1,701.48
-
1,701.48
-
NCD Issued
Realty Limited)
-
300.00
-
-
-
-
300.00
-
NCD Bought Back
Realty Limited)
-
150.00
-
-
-
-
150.00
-
-
850.06
(1,941.21)
-
-
-
850.06
(1,941.21)
919.19
-
(897.06)
-
-
-
919.19
(897.06)
ICD Received Back
Realty Limited)
Loan Given
Mrs. Madhu Jain
Loan Received Back
Mrs. Madhu Jain
Sale of Investment (Net)
Purchase of Investment (Net)
158
Grand Total
1,815.30
(97.50)
4,747.50
-
(` in Millions)
Allocation / Reimbursement of expenses paid
Allocation / Reimbursement of expenses paid others
Realty Limited)
Allocation / Reimbursement of expenses received
Realty Limited)
Sum of Allocation / Reimbursement of expenses
received others
Realty Limited)
Holding
Company
Fellow
Subsidiary
Direct
Subsidiary
Group
Companies
-
(1,162.76)
550.00
-
-
-
Key
Management
Personnel /
Other
-
-
123.21
(206.02)
(0.04)
(0.18)
-
-
-
123.21
(206.02)
(0.04)
(0.18)
(0.19)
-
0.35
0.01
0.14
(0.30)
0.01
(1.19)
101.71
(33.01)
0.20
(0.45)
-
-
-
0.35
0.01
0.14
(0.30)
0.01
(1.19)
101.71
(33.01)
(0.19)
0.20
(0.45 )
0.21
-
2.83
0.13
6.18
(73.27)
(2.39)
4.64
-
-
-
-
2.83
0.21
0.13
6.18
(73.27)
(2.39)
4.64
-
0.29
(0.68)
0.06
1.16
-
-
-
-
0.06
1.16
0.29
(0.68)
Grand Total
(1,162.76)
550.00
-
159
(` in Millions)
Capital Gains on Sale of Preference Shares
Allotment of Preference Shares
Sale of Preference Shares
Capital Gain on Sale of Investment
Guarantee Commission
Realty Limited)
Delayed Paying Charges
Debenture Issue Expense
160
Holding
Company
Fellow
Subsidiary
Direct
Subsidiary
Group
Companies
-
0.16
2.08
(0.12)
0.32
(1.38)
4.02
(0.60)
-
-
Key
Management
Personnel /
Other
-
(17.56)
(7.40)
-
-
-
-
(7.40)
(17.56)
(1,250.00)
-
(2,000.00)
-
-
-
(1,250.00)
(2,000.00)
(600.00)
(500.00)
-
-
-
-
(500.00)
(600.00)
-
0.99
(20.34)
-
-
-
0.99
(20.34)
-
5.23
(2.38)
1.14
(1.09)
0.79
(0.15)
-
-
-
5.23
(2.38)
1.14
(1.09)
0.79
(0.15)
-
(5.08)
-
-
-
(5.08)
-
(9.61)
-
-
-
(9.61)
Grand Total
0.16
2.08
(0.12)
0.32
(1.38)
4.02
(0.60)
(` in Millions)
Key
Group Management
Companies
Personnel /
Other
Holding
Company
Fellow
Subsidiary
Direct
Subsidiary
-
(2.19)
-
-
-
(2.19)
-
0.78
-
-
-
-
0.78
-
Purchase of Immovable Assets
Realty Limited)
Sundry receivables
Grand Total
Note: ICD Transactions are excluding Intraday Funding.
c)
Balance outstanding at the end of the year:
(` in Millions)
Sundry payable
IIFL Facilities Services Limited( Formerly Known As IIFL Realty Limited)
ICD payable
Collateral given (On behalf of)
IIFL Insurance Brokers Limited
Sundry Receivable
Key
Group
Management
Companies
Personnel
Holding
Company
Fellow
Subsidiaries
-
(6.87)
(0.18)
-
-
(6.87)
(0.18)
-
(1,020.00)
-
-
(1,020.00)
-
(1,680.00)
( 200.00)
(130.00)
-
0.78
-
-
-
-
-
Total
(1,680.00)
(200.00)
(130.00)
0.78
-
161
NOTE 39. Additional information pursuant to para 2 of general instructions for the preparations of Consolidated Financial Statements.
(` in Millions)
Name of entity
Indian Subsidiaries
Subtotal
Adjustment arising out of consolidation
Minority Interest in subsidiaries
Total
Net Assets
as % of
consolidated
Amount
net assets
82%
23,094.12
18%
100%
Share in profit or loss
as % of
consolidated
Amount
profit or loss
79%
2,717.32
5,179.34
28,273.46
(3,633.25)
24,640.21
21%
100%
720.59
3,437.91
(50.90)
3,387.01
NOTE 40. Figures pertaining to subsidiary companies have been reclassified wherever necessary to bring them in line with parent
company’s financial statements.
NOTE 41. UNHEDGED FOREIGN CURRENCY EXPOSURE
The unhedged foreign currency exposure as on 31st March 2016 is Nil (Previous Year Nil).
NOTE 42. Previous year’s figure are regrouped, reclassified and rearranged wherever considered necessary to confirm to current year’s
presentation.
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
162
Form AOC-I
SALIENT FEATURES OF FINANCIAL STATEMENTS OF SUBSIDIARY / ASSOCIATES / JOINT VENTURES AS PER COMPANIES
ACT, 2013:
Subsidiary: India Infoline Housing Finance Limited
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
Preference Shares
(` In Millions)
Share Capital
Reserves & Surplus
Total Assets
Total Liabilities
Investments
Total Turnover
Profit/(loss) Before Taxation
Provision for Taxation(Including Deferred Tax)
Profit after Taxation
Proposed Preference Dividend
Extent of Interest in Subsidiary
349.68
4,829.65
54,534.86
54,534.86
5,695.96
1,108.84
388.25
720.59
20.00
100%
*Based on equity share capital holding.
Note: Reporting period for the subsidiary is the same as holding company.
By the hand of
Parthiv S. Desai
Partner
Nirmal Jain
Whole Time Director
DIN : 00010535
Rajashree Nambiar
Executive Director
DIN : 06932632
Place : Mumbai
Dated: May 04, 2016
Milind Gandhi
Preeti Chhabria
Company Secretary
163
Pan India Presence
Chandigarh
1
Punjab
25
Uttarakhand
8
Haryana
22
Delhi
36
Uttar
Pradesh
22
Rajasthan
46
Assam
13
Bihar
7
Jharkhand
12
Madhya
Pradesh
61
Gujarat
133
West
Bengal
50
Tripura
2
Chattisgarh
7
Odisha
24
Maharashtra
130
Telangana
2
Andhra
Pradesh
143
Goa
6
Karnataka
69
Tamil Nadu
142
Kerala
33
Total No. of Branches:
994
Corporate Information
BOARD OF DIRECTORS
Mr. V. K. Chopra
CSR Committee
Mr. R. Venkataraman
Chairman (Non-Executive Director)
Mr. Nirmal Jain
Whole-time Director
Mr. Nirmal Jain
Whole-Time Director
Mr. R. Venkataraman
Ms. Geeta Mathur
Asset Liability Management Committee
Mr. V. K. Chopra
Ms. Geeta Mathur
COMMITTEES OF BOARD
Audit Committee
Mr. V. K. Chopra
Mr. Nirmal Jain
Whole-Time Director
Mr. R. Venkataraman
STATUTORY AUDITORS
M/s Sharp & Tannan Associates, Chartered
Accountants
Ms. Geeta Mathur
INTERNAL AUDITORS
M/s KPMG
Nomination and Remuneration
Committee
Mr. V. K. Chopra
SECRETARIAL AUDITORS
M/s. M Siroya and Company, Company
Secretaries
Mr. R. Venkataraman
CORE MANAGEMENT TEAM
Mr. Dolphie Barboza
Business Head – Commercial Vehicle Finance
Ms. Geeta Mathur
Mr. G. L. Kumar
Business Head – SME Finance
Stakeholders’ Relationship Committee
Mr. R. Venkataraman
Chairman (Non-Executive Director)
Mr. Nishant Jasapara
Business Head – LAS & Digital Finance
Mr. Nirmal Jain
Whole-time Director
Risk Management Committee
Mr. V. K. Chopra
Mr. Akash Bafna
Head – Credit Policy
Ms. Jayati Chakraborty
Head – Operations
Mr. Milind Gandhi
Mr. Amarnath B. S.
Treasurer
Mr. Nirmal Jain
Whole-time Director
Ms. Garima Nahar
Head – Legal & Secretarial
Mr. K. Chandrachoodan
Head – Compliance
Ms. Geeta Mathur
Ms. Preeti Chhabria
Company Secretary
Mr. Jerry Tauro
Head – Human Resources
Mr. Anujeet Kudva
Head – Internal Audit & Operational Risk
Mr. Subrata Das
Head – Business Analytics
Mr. Sandeep Ranjan
Head – Digital Strategy
REGISTRAR AND SHARE TRANSFER
AGENT
M/s. Link Intime India Pvt. Ltd., C-13, Pannalal
Silk Mills compound, L.B.S. Marg, Bhandup
(West), Mumbai – 400078
LIST OF BANKERS
Allahabad Bank
Andhra Bank
Axis Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Citibank
Corporation Bank
DCB Bank
Dena Bank
ICICI Bank
IDBI Bank
Indian Overseas Bank
IndusInd Bank
Jammu and Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Kotak Mahindra Bank Limited
ING Vysya Bank
Oriental Bank of Commerce
Punjab and Sind Bank
Punjab National Bank
Ratnakar Bank Ltd
Standard Chartered Bank
Syndicate Bank
UCO Bank
Union Bank of India
Vijaya Bank
Yes Bank
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 materialize, or should underlying assumptions prove
incorrect, actual results may vary. IIFL does not intend to assume any obligation or update or revise these forward-looking statements in light of developments,
which differs from those anticipated.
([email protected])
www.iiflfinance.com
www.indiainfoline.com
concept, content and design at
CIN – U67120MH2004PLC147365
12A-10, 13th Floor, Parinee Crescenzo,
C-38 and C-39, G Block, Behind MCA,
Bandra Kurla Complex,
Bandra East, Mumbai – 400 051
Email id: [email protected]
Phone No.: (91-22) 67881000
Fax No.: (91-22) 67881010
Value Through Diversity.
2015-16
Annual Report

Annual Report 2015-16

Transcription

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