IFCI

1(a) Estimated amount of contract (including lease contract) remaining
 to be executed on capital account (net of advances) as at
 31.03.2009-Rs. Nil (Previous Year-Rs.6.21 crore).
 
 2.  The Company has been granted exemption as on March 31, 2009 by the
 Government of India, Ministry of Corporate Affairs, under Section
 211(4) of the Companies Act, 1956, regarding the following requirements
 of Schedule VI of the Companies Act, 1956:
 
 i) Company-wise details of investments where the market value in case
 of quoted investments and cost in case of unquoted investments in any
 particular company not exceeding Rs.2 crore each.
 
 ii) Age-wise Classification of Sundry Debtors.
 
 The accounts have been prepared in accordance therewith,
 
 3.  The stakeholders of 1FCI in FY 2002-03 had approved the package for
 restructuring of debt/liabilities, inter alia, providing for release of
 Rs.5,220 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 Govt, of India) as Grant. Government of India
 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,
 Rs.1,359 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 Reserves & 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. In view of Gol letter dated December 12, 2007,
 stating that it would assist IFCI Ltd in case such a situation arises,
 no Grant has been received in FY 2007-08 and 2008-09.
 
 4.  The bonds guaranteed by Govt, of India of Rs.2,468.15 crore include
 bonds of Rs.1,187.64 crore which have been rolled over for 10 years
 from the respective due dates in line with the minutes of meetings of
 stakeholders, held on November 26, and December 2, 2002. Government of
 India has been requested to extend the guarantee for the rolled over
 period.
 
 5(a) Transfer of equivalent amount to Capital Redemption Reserve
 Account in respect of Preference Shares of Rs.20 crore redeemed in the
 FY 2001-02, was complied with in FY 2007-08. However, the Companys
 application to the Regional Director, Kanpur for compounding is yet to
 be disposed off by the authorities.
 
 5(b) During the current year, Preference Shares of Rs.82.035 crore have
 been redeemed as per restructured terms on 01.04.2008 and necessary
 amount has been transferred to the Capital Redemption Reserve Account
 from Profit and Loss Account.
 
 6(a) Govt, of India has the option of converting the debentures, as
 shown at A of Schedule III, 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 also has the right to redeem
 the convertible debentures issued to Govt, of India, fully or partly,
 at par, at any time after expiry of five years from the date of the
 issue with prior approval of RBI,
 
 6(b) During the financial year 2007-08, Zero Coupon Optionally
 Convertible Debentures (ZCOCDs) amounting to Rs. 1,323.99 crore held by
 Public Sector Banks and Financial Institutions were converted into
 equity shares of the Company. LIC had, however, stated that they would
 convert only as much of their ZCOCDs into equity as would maintain
 their shareholding at 8.39% post conversion of ZCOCDs. Accordingly, the
 shareholders at the AGM held on September 12, 2008 had approved
 reduction of share capital for aligning the stake of LIC to 8.39% as
 requested by LIC. The order of the High Court of Delhi passed on
 February 26, 2009 for reduction of Equity Share Capital and minutes
 forming part of the petition have been registered by Registrar of
 Companies on April 15. 2009. The reduction in Equity Share Capital is
 effective from the date of registration.
 
 6(c) The Optionally Convertible Debentures held by LIC and Gol do not
 have specific terms of conversion.
 
 7.  The Company has availed loans of Rs.300 crore (Previous Year -
 Rs.300 crore) against security of cash flow/negative lien against
 certain identified assets.
 
 8.  As directed by Reserve Bank of India, the assets and liabilities in
 foreign currency have been valued as per Foreign Exchange Dealers
 Association of India Guidelines.
 
 9.  Profit for the current year is less by Rs.0.12 crore (Previous Year
 - Rs.0.99 crore) due to following of FEDAI for revaluation of
 outstanding swap contracts vis-a-vis Accounting Standard-11, issued by
 The Institute of Chartered Accountants of India (ICAI).
 
 10.  In respect of Investments in shares, debentures and security
 receipts in certain cases, scrips are yet to be received.
 
 11.  The Gross Block of Fixed Assets includes Rs.595.50 crore (Previous
 Year - Rs.670.23 crore) on account of revaluation of Fixed Assets
 carried out in past. Consequent to the said revaluation, there is an
 additional charge of depreciation of Rs.9.75 crore (Previous Year -
 Rs.10.14 crore) and an equivalent amount has been withdrawn from
 Revaluation Reserve and credited to Profit and Loss Account
 
 12.  Balances appearing under loans, sundry debtors and sundry
 creditors are subject to confirmation in certain cases.
 
 13.  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, 2009.
 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.
 
 14.  Details of investments purchased and sold/redeemed during the year
 ended March 31, 2009 are enclosed as Annexure.
 
 15.  There are no material prior period items included in Profit & Loss
 Account required to be disclosed as per Accounting Standard-5 issued by
 The Institute of Chartered Accountants of India (ICAI) read with RBI
 Guidelines.
 
 16. As more than 90% of revenue for Ihe Company comes from a single
 segment of financing, segment reporting as required under Accounting
 Standard-17, issued by The Institute of Chartered Accountants of India
 (ICAI) is not applicable to IFCI.
 
 17(a) Provisions of Accounting Standard-19, issued by The Institute of
 Chartered Accountants of India (ICAI) - Leases are not applicable as
 the Company has not entered into leasing transaction on or after April
 01, 2001.
 
 18(b) (i) The Company has entered into lease agreement for office
 premises at two centers.  Some of the significant terms and conditions
 of the arrangements are:
 
 - Agreement may generally be terminated by either party on serving a
 notice period.
 
 - The lease arrangements are generally renewed on expiry of lease
 period subject to mutual agreement.
 
 - The company shall not sublet, assign or part with the possession of
 the premises without prior written consent of lessor.
 
 (ii) Rent in respect of above is charged to Profit & Loss Account.
 
 19. Fixed Assets possessed by the Company are treated as Corporate
 Assets and not Cash Generating Units as defined by Accounting
 Standard-28 issued by The Institute of Chartered Accountants of India
 (ICAI) - Impairment of Assets. As on March 31, 2009, there were no
 events or changes in circumstances which indicate any impairment in the
 assets.
 
 20.  Total value of outstanding Currency Swaps was USD 9.45 million
 against INR and EUR 40.80 million against USD (Previous Year - US$ l.5
 million against INR and EUR 29.9 million against USD) equivalent to
 Rs.323.98 crore {Previous Year - Rs.236.25 crore), whereas total value
 of outstanding Forex Deals other than Currency Swaps was USD 3.5
 million against INR and EUR 16 million against USD equivalent to
 Rs.124.03 crore (Previous Year - USD 10 million and EUR 20 million).
 
 21.  Foreign Currency exposure that is not hedged by directive
 instrument at or otherwise is USD 0.01 million and EUR 0.02 million,
 equivalent to Us.0.16 crore.
 
 22.  Previous year figures have been re-grouped/re-arranged wherever
 necessary, to conform to current year presentation.
 
 23.  Balance Sheet abstract and Companys General Business Profile as
 per Part IV of Schedule VI of the Companies Act, 1956 enclosed as
 Appendix.