1. GoI has the option of converting the debentures, wholly or partly
into fully paid equity shares of IFCI Limited, at par, at any time
during the currency of debentures subject to compliance with provisions
of SEBI guidelines, in respect of preferential allotment. IFCI has the
right to redeem the convertible debentures issued to GoI, fully or
partly, at par, at any time after expiry of five years from the date of
the issue with prior approval of RBI.
2. The bonds originally guaranteed by GoI have been rolled over for a
period of 10 years from the respective due dates in line with the
minutes of meetings of stakeholders, held on November 26 and December
2, 2002 and communication to GoI.
3. Put option applicable on Rs 2,721.41 crore (Previous Year - Rs
1,096.55 crore). Terms of repayment annexed.
4. Loan from GoI to be issued in the form of 0.1% Optionally
Convertible Debentures and redeemable on 28.03.2023 has a right of
recompense on par with other stakeholders.
5. (a) Put/ Call Option applicable on Rs 465.00 crore (Previous Year -
Rs 1,433.33 crore).
(b) Include loans of Rs 300 crore (Previous Year - Rs 300 crore), against
escrow of cash flow/negative lien against certain identified loan
(c) Terms of repayment annexed.
Note 11 (Contd..)
@ includes on account of revaluation:
- Freehold Land - Gross Block as on 01.04.2011 - Rs 69.91 crore;
Additions - Rs Nil; Deductions - Rs Nil; as on 31.03.2012 - Rs 69.91 crore
- Leasehold Land - Gross Block as on 01.04.2011 - Rs 277.36 crore;
Additions - Rs Nil; Deductions - Rs Nil; as on 31.03.2012 - Rs277.36 crore
- Depreciation for the year - Rs 4.69 crore (Previous Year - Rs 5.94
- Building - Gross Block as on 01.04.2011 - Rs 687.42 crore; Additions -
Rs Nil; Deductions - Rs 0.71 crore; as on 31.03.2012 - Rs 686.71 crore;
Depreciation for the year - Rs 14.35 crore (Previous Year - Rs 10.79
Gross Block includes Rs 1,033.99 crore (Previous Year - Rs 1,034.69
crore) on account of revaluation of Land & Buildings carried out in
Financial Year 2009-10. The additional charge of depreciation of Rs
19.04 crore for the year (Previous Year - Rs 22.29 crore) on revaluation
carried out in earlier years has been charged to Profit & Loss Account
and an equivalent amount withdrawn from Revaluation Reserve and
credited to Profit and Loss Account.
Note: The above balances include:
- Investments of Rs234.45 crore (Previous Year - Rs 99.50 crore) in
respect of equity shares which are subject to a lock-in period.
- Investments of Rs1.20 crore (Previous Year - Rs 5.00 crore) in respect
of equity shares which are subject to restrictive covenants.
- Nil (Previous Year - Rs 26.12 crore) in equity under Portfolio
Management Scheme of subsidiary.
- Investments of Rs 38.06 crore (Previous Year - Nil) in respect of
equity shares lent under Securities Lending & Borrowing Scheme within
1. Contingent Liabilities and Commitments (to the extent not provided
1.1 Contingent Liabilities (Rs crore)
As at 31.03.2012 31.03.2011
(i) Guarantees issued in Indian Currency 26.96 26.96
(ii) Bank Guarantees 8.87 8.87
(iii) Performance Guarantees issued 0.66 0.60
(iv) Claims not acknowledged as debts 156.10 92.35
(v) Tax Matters*
- Income Tax 27.07 27.07
- Service Tax 4.84 4.54 *In view of judicial pronouncements and legal
opinions in respect of issues under appeal, no provision is considered
2. In exercise of the powers conferred by Section 211(3) of the
Companies Act, 1956, the Central Government vide notification dated
February 8, 2011, has exempted Public Financial Institutions as
specified under Section 4A of the Companies Act, 1956 from disclosing
company-wise details of Investments subject to fulfillment of certain
conditions. The accounts for the year ended March 31, 2012 have been
prepared in accordance therewith.
3. The stakeholders of IFCI in Financial Year (FY) 2002-03 had
approved the package for restructuring of debt/liabilities, inter alia,
providing for release of Rs5,220 crore (comprising Rs 3,604 crore towards
principal and Rs 1,616 crore towards interest over future years on
liabilities taken over/to be serviced by Government of India) as Grant.
Government of India (GoI) released Rs 2,932.31 crore, comprising Rs 523
crore as loan (FY 2002-03) and Rs 2,409.31 crore (FY 2003-04 to FY
2006-07) as Grant. The amount of Rs 2,409.31 crore received as Grant in
FY 2003-04 to 2006-07 comprised of Rs 1,606.31 crore towards principal
and Rs 803 crore towards interest. Out of Rs 1,606.31 crore received
towards principal, Rs1,359 crore (FY 2003-04) was accounted as
extra-ordinary income and Rs 247.31 crore (FY 2004-05 to FY 2006-07) as
Restructuring Reserve in the Reserve & Surplus A/c and thereafter
transferred to Profit & Loss A/c, as per the guidelines conveyed by
RBI. The amount of Rs 803 crore received towards interest was reduced
from the cost of borrowings in respective years. No Grant has been
received since April 1, 2007.
4. The Company has applied the Securities Premium account in writing
off the expenses incurred during the year on issue of Bonds amounting
to Rs 25.93 crore (Previous Year - Rs 5.99 crore charged to the Revenue)
in line with Section 78 of the Companies Act, 1956.
5. During the year, the Company has obtained valuation of certain
long term unquoted investments by an independent valuer. The report of
the said expert has been considered for the purpose of assessment of
decline other than temporary in the value of said long term unquoted
6. In respect of Investments in shares and debentures in certain
cases, scrips are yet to be received.
7. Balances appearing under loans, sundry debtors and sundry creditors
are subject to confirmation in certain cases.
8. There are no Micro and Small Enterprises, to whom the Company owes
dues, which are outstanding for more than 45 days as at March 31, 2012.
This information as required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the Company.
9. There are no material prior period items, except to the extent
disclosed, included in Profit & Loss A/c required to be disclosed as
per Accounting Standard-5 issued by the ICAI read with RBI guidelines.
10. Defined Benefit Plans/Long Term Compensated Absences - As per
Actuarial Valuations as on March 31, 2012 and recognized in the
financial statements in respect on Employee Benefit Schemes.
11. The Company operates in India and hence it is considered to
operate only in domestic segment. More than 90% of revenue for the
Company comes from a single segment of Financing. Accordingly, segment
reporting as required under Accounting Standard- 17, issued by the ICAI
is not applicable.
12. In compliance with Accounting Standard 27 - on ''Financial
Reporting of Interests in Joint Ventures'' as notified by the
Companies (Accounting Standards) Rules, 2006, the Company has 50%
interests in one joint venture viz. IFCI Sycamore Capital Advisors (P)
Limited incorporated in India in November 2011. The amounts invested at
par were Rs 0.01 crore Class A Equity Shares and Rs 2.64 crore Fully
Convertible Debentures. Required disclosure of Assets, Liabilities,
Income, Expenditure and Contingent Liabilities has not been made as the
period of 12 months has not been completed since the incorporation of
the Joint Venture.
13. Fixed Assets possessed by the Company are treated as Corporate
Assets and notCash Generating Units as defined by Accounting
Standard-28 - Impairment of Assets issued by the ICAI. As on
March 31, 2012, there were no events or changes in circumstances which
indicate any impairment in the assets.
14. Total value of outstanding Currency Swaps was USD 98.70 million
against INR, EURO 0.60 million against INR and EURO 79.50 million
against USD (Previous Year - USD 41.90 million against INR and EURO 69
million against USD respectively) equivalent to Rs1,069.40 crore
(Previous Year - Rs634.31 crore) whereas total value of outstanding
Forex Deals other than Currency Swaps was USD 0.15 million against INR
equivalent to Rs0.77 crore (Previous Year - USD 4.30 million against INR
and EUR 5 million against USD equivalent to Rs19.29 crore and Rs31.84
15. Foreign Currency exposure that is not hedged by derivative
instrument or otherwise is USD 0.02 million (Previous Year - USD 0.25
million) and EUR 0.03 million (Previous Year - 0.0172 million),
equivalent to Rs 0.28 crore (Previous Year - Rs 1.23 crore)
16. During the year, the Company had issued infrastructure bonds as
defined u/s 80 CCF of the Income Tax Act, 1961 amounting to Rs571.89
crore. Of this, Rs446.36 crore has been utilized for the purpose of
''Infrastructure Lending'' in terms of the CBDT Notification No.
S.0.2060 (E) dated September 9, 2011. The balance amount of Rs125.53
crore, raised through issue of these bonds during March, 2012, shall be
utilized during FY 2012-13.
17. Previous year/period figures have been re-grouped/re-arranged
wherever necessary, to conform to current year presentation in terms of
revised Schedule VI issued by Ministry of Corporate Affairste.