LIC Housing Finance Directors Report, LIC Housing Fin Reports by Directors
LIC Housing Finance
BSE: 500253|NSE: LICHSGFIN|ISIN: INE115A01026|SECTOR: Finance - Housing
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Directors Report Year End : Mar '14    Mar 13
To the members of LIC Housing Finance Limited.
 The Directors are pleased to present the Twenty Fifth Annual Report
 together with the audited financial statements for the year ended 31st
 March, 2014.
 Financial results
                                               (Rs. in crore)
                                   For the year         For the year
                                   ended 31st           ended 31st
                                   March, 2014          March, 2013
 Profit before Tax                    1,825.50             1,373.56
 Tax Expense                            508.32               350.36
 Profit after Tax                      1317.18              1023.21
 Special reserve &                      370.00               270.00
 Statutory reserve u/s
 29Cof NHB Act
 General reserve                        200.00               400.00
 Proposed dividend                      227.10               191.77
 Tax on dividend                         38.48                32.35
 Balance carried forward                481.60               129.09
 to next year
                                       1317.18              1023.21
 Silver Jubilee Year
 On 20th June, 2013 LIC Housing Finance Limited commenced its Silver
 Jubilee Year. The Company has over these years demonstrated the
 viability and importance of retail housing finance withstanding various
 ups and downs in the business cycle. LIC HFL has been one of the major
 players in the retail housing finance market in India and despite a
 number of new entrants in the industry, your Company continues to be
 one of the key player.
 The Board of Directors sincerely acknowledges and appreciates the
 valuable support and guidance given by the shareholders, customers,
 financiers, employees and every other stakeholder who has been
 supporting the Company over the successful twenty-five years.
 Considering the performance during the year 2013-14, your Directors
 recommend payment of dividend for the financial year ended 31st March,
 2014 of Rs. 4.50 per equity share of face value of Rs. 2/- per share (225
 percent including special dividend of 25 percent, being commemoration
 of stepping into 25th illustrious year of operation), as against Rs. 3.80
 per equity share of face value of Rs. 2/- per share for the previous
 year. The total dividend outgo for the current year would amount to Rs.
 265.58 crore including Dividend Distribution Tax of Rs. 38.48 crore, as
 Against Rs. 224.12 crore including dividend distribution tax of Rs. 32.35
 crore, for the previous year.
 Income and profit
 The Company earned total revenue of Rs. 9,334.66 crore, registering an
 increase of 21.88 percent. The percentage of administrative expenses to
 the housing loans, which was 0.36 percent in the previous year, has
 come down to 0.34 percent during the year 2013-14.
 Profit before tax and after tax stood at Rs. 1,825.50 crore and Rs.
 1,317.18 crore respectively as against Rs. 1,373.56 crore and Rs. 
 1,023.21 crore, respectively, for the previous year. Profit before tax 
 increased by 33 percent over the previous year while profit after tax 
 showed same growth of 29 percent as compared to that of previous year.
 Lending operations
 Individual loans:
 The main thrust continues on individual housing loans with a
 disbursement growth of 4.56 percent during the year mainly due to
 overall slowdown in the economy. During the year, the Company
 sanctioned 1,37,753 individual housing loans for Rs.  25,437.20 crore and
 disbursed 1,41,107 loans for Rs. 24,289.73 crore. Housing loan to
 Individual i.e., retail loans constitute 95.24 percent of the total
 sanctions and 96.12 percent of the total disbursements for the year
 2013-14 as compared to 93.82 percent and 95.36 percent respectively
 during the year 2012-13. The gross retail loan portfolio grew by over
 17.85 percent from Rs. 75,147.46 crore as on 31st March, 2013 to Rs.
 88,558.58 crore as on 31st March, 2014.
 The cumulative sanctions and disbursements since incorporation, in
 respect of individual housing loans are:
 Amount sanctioned   :     Rs. 1,52,349.37 crore
 Amount disbursed    :     Rs. 1,39,594.86 crore
 More than 16.80 lac customers have been serviced by the Company up to
 31st March, 2014 since its inception.
 Project loans:
 The project loans sanctioned and disbursed by the Company during the
 year were Rs. 1,271 crore and Rs. 981.50 crore respectively. These loans
 are generally for short durations, giving better yields as compared to
 individual loans. The project loan which had shown a positive growth of
 24.03 percent in the previous year has achieved a negative growth of 13
 percent in the year under review.
 Marketing and Distribution
 During the year under review, efforts were undertaken to further
 strengthen the distribution network. The distribution network of the
 Company consists of 131 Area Offices (AO), 72 Business Centres (BC), 1
 Extension Counter (EC) and 40 offices of LICHFL Financial Services
 Ltd., wholly owned subsidiary company engaged in distribution of
 various financial products including housing loan. The Company has
 representative offices in Dubai and Kuwait.
 During the F. Y. 2013-2014, Rs. 10,884.43 crore was received by way of
 schedule repayment of principal through monthly installments as well as
 prepayment of principal ahead of schedule, as compared to Rs. 7,978.99
 crore received last year.
 Non-Performing Assets and Provisions
 The amount of gross Non-Performing Assets (NPA) as at 31st March, 2014
 was Rs. 609.00 crore, which is 0.67 percent of the housing loan portfolio
 of the Company, as against Rs. 471.22 crore i.e. 0.61 percent of the
 housing loan portfolio as at 31st March, 2013. The net NPA as at 31st
 March 2014 was Rs. 353.58 crore i.e. 0.39 percent of the housing loan
 portfolio vis--vis Rs. 275.94 crore i.e. 0.36 percent of the housing
 loan portfolio as at 31st March, 2013. The total cumulative provision
 towards housing loan portfolio as at 31st March, 2014 is Rs. 706.81 crore
 as against Rs. 694.55 crore in the previous year.  During the year, the
 Company has written off Rs. 0.00385 crore of housing loan portfolio as
 against Rs. 31.37 crore during the previous year.
 Resource Mobilisation
 The Company raised funds aggregating to Rs. 29,931.27 crore through term
 loans from banks, Non-Convertible Debentures (NCD), NHB refinance and
 Public Deposits.
 Non Convertible Debentures (NCD)
 During the year, the Company issued NCD amounting to Rs. 21,000/- crore
 on a private placement basis which have been listed on Wholesale Debt
 Segment of National Stock Exchange of India Ltd. The NCDs have been
 assigned highest rating of ''CRISIL AAA/Stable'' by CRISIL & ''CARE AAA''
 by CARE. As at 31st March, 2014, NCDs amounting to Rs. 54,004/- crore
 were outstanding. The Company has been regular in making payment of
 principal and interest on the NCDs.
 As at 31st March, 2014, there are no NCDs which have not been claimed
 by the Investors or not paid by the Company after the date on which the
 said NCDs became due for redemption. Hence the amount of NCD remaining
 unclaimed or unpaid beyond due date is Nil.
 Subordinate Bonds & Upper Tier II Bonds
 During the year, the Company has not issued any Subordinate Bonds and
 Upper Tier II Bonds. As at 31st March, 2014, the outstanding
 Subordinate Bonds and Upper Tier II Bonds
 stood at Rs. 3,000/- crore. Considering the balance term of maturity as
 at 31st March, 2014, Rs. 2,500/- crore of the book value of the
 Subordinate Bond and Upper Tier II Bonds is considered as Tier II
 Capital as per the Guidelines issued by NHB for the purpose of Capital
 Term Loan from Banks / LOC, Refinance from NHB
 The total loans / LOC outstanding from the Banks as at 31st March, 2014
 are Rs. 20,241.41 crore as compared to Rs. 20,482.14 crore as at 31st
 March, 2013. The Refinance from NHB as at 31st March, 2014 stood at Rs.
 3,384.72 crore as against Rs. 2,470.18/- crore as at 31st March, 2013.
 During the year, the Company has availed Rs. 1,458.70 crore Refinance
 from NHB under Golden Jubilee Rural Housing Scheme, Rural Housing Fund,
 Energy Efficient Housing Refinance Scheme, Urban Housing Fund and
 Refinance for Women.
 The Company''s long term loan facilities have been assigned the highest
 rating of ''CRISILAAA/STABLE'' and short term loan has been assigned
 rating of ''CRISIL A1 '' signifying highest safety for timely servicing
 of debt obligations.
 Public deposits
 As at 31st March, 2014, the outstanding amount on account of public
 deposits was Rs. 1193.97 crore as against Rs. 773.60 crore in the 
 previous year. The deposit base has increased from 10,038 to 16,401.
 CRISIL has for the eighth consecutive year, re-affirmed a rating of
 CRISIL FAAA/Stable for the company''s deposits which indicates highest
 degree of safety regarding timely servicing of financial obligations
 and carries the lowest credit risk.
 The support of the agents and their commitment to the Company has been
 vital in mobilization of deposits and making the product most preferred
 investment for individual households and others.
 158 deposits amounting to Rs. 4.52 crore which were due for repayment on
 or before 31st March, 2014 were not claimed by the depositors till that
 date. Since then, 29 depositors have claimed or renewed deposits of Rs.
 1.01 crore. Depositors were intimidated through Company''s agency for
 Public Deposits namely Link Intime India Pvt. Ltd., regarding the
 maturity of deposits with a request to either renew or claim their
 deposits.  Where the deposit remains unclaimed, reminder letters are
 sent to depositors periodically and follow up action is initiated
 through the respective agent.
 As per the provisions of Section 205C of the Companies Act, 1956,
 deposits remaining unclaimed for a period of seven years from the date
 they became due for payment have to be transferred to the Investor
 Education and Protection Fund (IEPF) established by the Central
 Government, though as on date no amount has become due for transfer to
 IEPF. The depositors are requested to claim their deposit amount and
 interest thereon as and when due or renew the same without delay.
 Exemption from provision of Section 73(1) of the Companies Act, 2013.
 In exercise of the powers under sub-section 1 of Section 73 of the
 Companies Act, 2013, read with Companies (Acceptance of Deposits)
 Rules, 2014, the Central Government has granted exemption to the public
 deposit scheme of a Housing Finance Company registered with the
 National Housing Bank established under the National Housing Bank Act,
 1987 (No. 53 of 1987).
 Regulatory Compliance
 The Company has been following guidelines, circulars and directions
 issued by National Housing Bank (NHB) from time to time.
 Your Company has been maintaining capital adequacy as prescribed by the
 NHB. The capital adequacy was 16.38 percent (as against 12 percent
 prescribed by the NHB) as at 31st March, 2014 after considering the
 loan to value ratio for deciding risk weightage.
 The Company has adopted Know Your Customer (KYC) Guidelines, Anti Money
 Laundering Standards, Fair Practices Code, Model Code of Conduct for
 Direct Selling Agents and Guidelines for Recovery Agents engaged by
 HFCs as prescribed by NHB from time to time. During the year NHB has
 prescribed that HFCs shall provide ''Most Important Terms and
 Conditions'' of housing loans which the Company has implemented with the
 objective of ensuring a better understanding of the major terms and
 conditions of the loan agreed upon between the Company and its
 The Company also has been following directions / guidelines / circulars
 issued by SEBI from time to time applicable to a listed company.
 Joint Statutory Auditors M/s. Chokshi & Chokshi, Chartered Accountants,
 Mumbai having Registration No.101872W and M/s. Shah Gupta & Co.,
 Chartered Accountants, Mumbai having Registration No.109574W hold
 office until the conclusion of the forthcoming Annual General Meeting
 (AGM) and are eligible for appointment. The Company has received a
 confirmation from them to the effect that their appointment, if made at
 the ensuing AGM would be in terms of Section 139 and 141 of the
 Companies Act, 2013 and Rules made there under.
 The Board proposes to appoint M/s. Chokshi & Chokshi and M/s. Shah
 Gupta & Co. as Joint Statutory Auditors of the Company for financial
 year 2014-15.
 Shri Dhananjay Mungale, Director resigned from the Board of Directors
 of the Company with effect from 1st August, 2013 on completion of
 directorship for nine years in terms of Code of Conduct for Board of
 Directors and Senior Management, adopted by the Company. The Board
 places on record its
 appreciation of his valuable contributions, commitment and guidance
 made during his tenure.
 Ms. Savita Singh, Director, retires by rotation at the ensuing AGM and
 is eligible for reappointment.
 Shri S. K. Roy was appointed as Chairman of the Company by the Board
 with effect from 1st August, 2013 consequent upon Shri D. K. Mehrotra
 relinquishing his Directorship and Chairmanship on attaining
 superannuation. The Board places on record its appreciation of valuable
 contributions, commitment and guidance made by Shri D. K. Mehrotra
 during his tenure.
 Shri V. K. Sharma on being elevated to the post of Managing Director of
 LIC of India, relinquished the post of Managing Director & CEO of the
 Company. The Board places on record its appreciation of his valuable
 contributions, commitment and guidance made during his tenure.
 Ms. Sunita Sharma was appointed by the Board of the Company as
 Additional Director and Managing Director & CEO with effect from 5th
 November, 2013 for a period of three years in terms of nomination
 received from Life Insurance Corporation of India, subject to approval
 of shareholders at the forthcoming Annual Genral Meeting. As required
 under section 160 of the Companies Act, 2013, a Notice has been
 received from a Member proposing the name of Ms. Sunita Sharma for the
 office of a Director.
 Shri T. V. Rao was appointed as Additional Director of the Company by
 the Board with effect from 1st August, 2013.  As required under section
 160 of the Companies Act, 2013, a Notice has been received from a
 member proposing the name of Shri T. V. Rao for the office of a
 Director. Shri T. V.  Rao has submitted a declaration under Section
 149(7) of the Companies Act, 2013 confirming that he meets the criteria
 prescribed for Independent Director under Section 149(6) of the said
 Act. In the opinion of the Board, Shri T. V. Rao fulfils the conditions
 specified in the Act, for such appointment.
 Shri S. B. Mainak was appointed as Additional Director of the Company
 by the Board with effect from 3rd July, 2014 in terms of nomination
 received from Life Insurance Corporation of India, subject to approval
 of shareholders at the forthcoming AGM. As required under section 160
 of the Companies Act, 2013, a Notice has been received from a Member
 proposing the name of Shri S. B. Mainak for the office of a Director.
 All the above Directors of the Company have confirmed that they are not
 disqualified from being appointed as directors in terms of Section
 164(2) of the Companies Act, 2013.
 Corporate Governance
 A certificate from the Joint Statutory Auditors of the Company
 regarding compliance of the conditions of Corporate Governance as
 stipulated under Clause 49 of the Equity Listing Agreement with Stock
 Exchanges is attached to the Corporate Governance Report.
 Your Company has been complying with the principles of good Corporate
 Governance over the years. The Board of Directors supports the broad
 principles of Corporate Governance. In addition to the basic governance
 issues, the Board lays strong emphasis on transparency, accountability
 and integrity.
 Corporate Social Responsibility
 In accordance with the provision of Section 135 of the Companies Act,
 2013, the Company is required to constitute a Corporate Social
 Responsibility (CSR) Committee of Directors comprising atleast three
 Directors including an Independent Director.
 The Board at its meeting held on 16th January, 2014 constituted the CSR
 Committee. The CSR Committee will monitor the implementation of the CSR
 Policy and apprise the Board accordingly.
 The Company has identified the fields it would like to focus its energy
 on Education Health, Livelihood, Infrastructure development and Social
 Management Discussion and Analysis Report
 Management Discussion and Analysis Report for the year under review, as
 stipulated under clause 49 of Equity the Listing Agreement with Stock
 Exchanges is presented in a separate section forming part of the Annual
 Business Responsibility Report
 In accordance with the provisions of Clause 55 of the Equity Listing
 Agreement, the Business Responsibility Report (BRR) is presented in a
 separate section forming part of the Annual Report.
 Depository system
 The Company has an agreement with the Central Depository Services
 (India) Limited (CDSL) for transactions of its shares in dematerialised
 form, in addition to the National Securities Depository Limited (NSDL),
 to give a choice to its shareholders in selecting depository
 participant. As at 31st March, 2014, 10,558 members of the Company
 continue to hold shares in physical form. As per the Securities and
 Exchange Board of India''s (SEBI) instructions, the Company''s shares
 have to be transacted in dematerialised form and therefore, members are
 requested to convert their holdings to dematerialised form.
 Particulars Regarding Conservation of Energy, Technology Absorption and
 Foreign Exchange Earnings and Outgo
 The Company does not own any manufacturing facility.  Hence the
 particulars relating to the conservation of energy and technology
 absorption stipulated in the Companies (Disclosure of Particulars in
 the Report of the Board of Directors) Rules, 1988, are not applicable.
 The particulars of foreign currency expenditure and foreign currency
 earnings during 2013-14 are given at item No.12 and No.13 in the Notes
 to the Accounts. There are no employees covered by Section 217 (2A) of
 the Companies Act, 1956, read with
 the Companies (Particulars of Employees) Rules, 1975, as amended.
 Auditors observations
 No adverse remark or observation has been given by the Joint Statutory
 The Company has an in-house internal audit system for Back Offices
 conducted by the Audit department and a reputed firm of Chartered
 Accountants as internal auditor for Corporate Office. Continuous
 efforts are made to further strengthen the internal audit system to
 make it commensurate with the size and the nature of business.
 Systems and procedures are being upgraded from time to time to provide
 checks and alerts for avoiding fraud arising out of misrepresentation
 made by borrower/s while availing the housing loans.
 Outlook for 2014-15
 The initiatives taken by the Company during the year are expected to
 improve its operational and financial performance.  During FY 2014-15,
 the Company proposes:
 - To grow business qualitatively by consolidating our position and
 strengthening the competitiveness on service delivery.
 - To create brand LIC HFL as a source of trusted partner exuding
 consumer confidence.
 - Understand the inherent risks to our business and managing it
 - Focus on winning and retaining customers.
 - Pursue new skills and expand knowledge in other departments or on
 competition without being limited by past practices.
 - Expand its operations by establishing new business centres.
 - Increase its distribution by appointing new agents and activising
 more agents.
 - Incentivising and motivating the marketing intermediaries
 systematically for improving productivity.
 - Raising funds through loans at attractive rates of interest and
 - Making efforts towards reducing overall cost of funds.
 - Steps to improve the recovery ratio and ensuring lowest NPA level.
 Improving receivable management through support system.
 - Timely review of credit appraisal system to improve the loan asset
 - Continuous efforts to upgrade Information Technology platform to
 ensure prompt and effective service to the clientele.
 - Swift, appropriate and competitive pricing of its existing loan
 schemes to attract new customers.
 The management perspective about future of the Company
 In view of the huge shortage in urban housing units in the country, the
 Union government has been providing continued support to make the
 sector attractive and giving it due recognition. The technical
 committee constituted by the Ministry of Housing and Urban Poverty
 Alleviation has estimated housing shortage at 18.78 million during the
 12th Five Year Plan period of which over 95 percent of housing shortage
 is estimated in the Economically Weaker Sections and Low Income Group
 categories. Therefore, the management reasonably foresees good
 potential for growth in the business of the Company.
 Directors'' Responsibility Statement pursuant to Section 217 (2AA) of
 the Companies Act, 1956
 In accordance with the provisions of Section 217 (2AA) of the Companies
 Act, 1956, and based on the information provided by the management,
 your Directors state that:
 - In the preparation of the annual accounts, the applicable accounting
 standards have been followed.
 - Accounting policies were applied consistently.  Reasonable and
 prudent judgement and estimates were made so as to give true and fair
 view of the state of affairs of the Company as at the end of 31 st
 March, 2014 and of profit of the Company for the year ended on that
 - Proper and sufficient care has been taken for maintenance of
 accounting records in accordance with the provisions of the Companies
 Act, 1956, for safeguarding the assets of the Company and for
 preventing/detecting fraud and other irregularities.
 - The annual accounts are prepared on a going concern basis.
 Human resources
 The Company aims to align HR practices with business goals, motivate
 people for higher performance and build a competitive working
 environment. Productive high performing employees are vital to the
 Company''s success. The Board values and appreciates the contribution
 and commitment of the employees towards performance of your Company
 during the year. To create the leadership bench and for sustainable
 competitive advantage, the company inducted / promoted employees during
 the year. In pursuance of the Company''s commitment to develop and
 retain the best available talent, the Company had organised various
 training programmes for upgrading skill and knowledge of its employees
 in different operational areas. Apart from fixed salaries and
 perquisites, the Company also has in place performance-linked
 incentives which reward outstanding performers who meet certain
 performance targets. It has been sponsoring its employees for training
 programmes / seminars / conferences organised
 by reputed professional institutions.
 Employee relations remained cordial and the work atmosphere remained
 congenial during the year.
 Subsidiaries and group companies
 The Consolidated financial statements incorporating the results of the
 Company''s subsidiaries namely LICHFL Care Homes Limited, LICHFL
 Financial Services Limited, LICHFL Trustee Company Private Limited and
 LICHFL Asset Management Company Limited for the year ended 31st March,
 2014, are attached along with the statement pursuant to Section 212 of
 the Companies Act, 1956, with respect to the said subsidiaries. The
 review of performance of the subsidiaries is as under:
 1.  LICHFL Care Homes Limited:
 LICHFL Care Homes Limited, a wholly owned subsidiary of LIC Housing
 Finance Limited, was incorporated on 11th September, 2001 with an
 authorised capital of Rs. 25 crore. The basic purpose of promoting the
 Company was to establish and operate assisted community living centers
 for the senior citizens.
 The Company had a brief turnaround in the financial year 2011 - 12
 making a profit of Rs. 241.71 lac. Though for the fiscal 2013-14, there
 was a loss of Rs. 276.43 lac. However the Company is confident of posting
 profit during financial year 2014-15.
 The project in Bangalore Phase II has been completed and handing over
 of the keys for Phase II was done on 12th August, 2013. The Bhubaneswar
 project is going ahead at full stream and we expect its completion
 within a year.
 With life expectancy going up and number of elderly citizens rising
 year after year, it is expected that demand for care-homes would also
 increase. As a result, the Company is set on a growth trajectory
 keeping LIC & LIC HFLs'' vision for fulfillment of Corporate Social
 Responsibility at the main focus.
 2.  LICHFL Financial Services Limited :
 LICHFL Financial Services Limited, a wholly owned subsidiary of LIC
 Housing Finance Limited was incorporated on 31st October 2007, for
 undertaking non fund based activities like marketing of housing loans,
 insurance products (life insurance and general insurance), credit
 cards, mutual funds, fixed deposits etc.  It has become operational in
 March 2009 and at present has got 40 offices all over the country
 spread over 10 states.
 SARVESHAM POORNAM BHAVATU  the vision of the company is to provide
 complete financial solutions to Customers. Towards this, the company
 began distribution of Life Insurance products of LIC of India, Housing
 of LIC Housing Finance Limited, Mutual Funds of all fund houses,
 General Insurance of United India Insurance Company Limited, Credit
 Cards of LIC Cards Services Limited and Fixed Deposits of LIC Housing
 Finance Limited. More business verticals will be added depending on
 market opportunities and customer needs.
 LIC HFL FSL has forayed into the field of Pension after The Pension
 Fund Regulatory Authority of India (PFRDA) on 23rd July, 2013 granted
 the Certificate of Registration and Commencement of Business as Points
 of Presence (POP) for NPS, i.e, National Pension System. This new
 vertical started operations on 11th October, 2013.
 The Company is a Corporate Agent for LIC of India and earned revenue of
 Rs. 56.02 Lac from it. As a Corporate Agent for LIC HFL for the Home Loan
 products, it earned revenue of Rs. 473.13 Lac from it. The revenue from
 General Insurance Business was Rs. 14.25 lac. The retail income from
 Mutual Funds, Public Deposits, Credit cards and NPS was Rs. 10.25 lac.
 The company provides complete financial solution to secure not only the
 present but also the future of the customer and his family. In this
 endeavour the marketing officials assist at every step  from financial
 planning to manage every aspect of right investment, both for the short
 term and for longer terms.
 The Company has earned a Profit after Tax of Rs. 2.27 Crore for the
 financial year 2013-14 and recommended dividend @ 7 percent for FY
 2013-14, for the fifth straight year. The Company during the year under
 review consolidated it operations in 40 locations across the country.
 The systematic approach along with the new initiatives taken during the
 earlier years are expected to drive the revenues in a positive
 direction and improve the operational and financial performance.
 The Company has plans to expand on a selective basis and concentrate on
 strengthening the strong areas in the area of distribution of Home
 Loans and Life Insurance.  The Company has started to make an impact in
 certain locations in the generation of revenue from the Home Loans. The
 Company will also focus on expanding the client base in the other
 verticals. The Company would evaluate the right opportunities for
 growth, profitability and value addition to its share holders.
 3.  LICHFL Trustee Company Private Limited :
 LICHFL Trustee Company Private Limited was incorporated on 5th March,
 2008 for undertaking the business of trusteeship. In the year 2010, the
 Company has registered LIC HFL Fund with SEBI as Venture Capital Fund
 (VCF) under the SEBI (Venture Capital Funds) Regulations, 1996. The
 Fund launched its maiden Scheme viz. LIC HFL Urban Development Fund
 (Fund) and 30th March, 2013 was declared as Final Closure Date
 of the Fund after successfully garnering fund raising of Rs. 529.35 crore
 as against the target of Rs. 500 crore.  The Fund is managed by LICHFL
 Asset Management Company Ltd. as Investment Manager. The Fund has
 started investing in the Investee Companies at the project level.
 4.  LICHFL Asset Management Company Limited:
 LICHFL Asset Management Company Limited was incorporated on 14th
 February, 2008 for undertaking the business of managing, advising,
 administering venture/mutual funds, unit trusts, investment trusts
 etc. set up, formed or established in India or abroad and to act as
 financial and investment advisor.
 The Company has been appointed as Investment Manager to raise and
 manage the maiden Fund viz. LICHFL Urban Development Fund. The Company
 has successfully raised total commitments of Rs. 529.35 crore to LICHFL
 Urban Development Fund through Banks, Financial Institutions,
 Corporate and HNIs as against the targeted size of Rs. 500 crore. 30th
 March, 2013 was announced as Final Closure Date of the Fund. Investment
 proposals of Rs. 136 crore have been approved so far and based on
 milestone achievement Rs. 86 crore has been invested till 31st March,
 2014 across four portfolio companies in Bangalore and Pune. The second
 drawdown of Rs. 46.04 core (8.70 percent of aggregate capital commitment)
 has been drawn during 2013-14.
 The Directors place on record their appreciation for the advice,
 guidance and support given by the Life Insurance Corporation of India
 and the NHB and all the bankers of the Company. The Directors express
 their sincere thanks to the Company''s clientele, lenders and members
 for their patronage. The Directors also record their appreciation for
 the dedicated services of the employees and their contribution to the
 growth of the Company.
                                                 For and on behalf
                                                 of the Board
 Place  :  Mumbai 
 Date   : 3rd July, 2014
Source : Dion Global Solutions Limited
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