IFCI Ltd. — Annual Report 2021

Jun 28, 2021

No. IFCl/CS/2021-33 June 28, 2021

The National Stock Exchange of India Limited Exchange Plaza Plot No. C/1, G Block, Bandra Kuria Complex Bandra (East) Mumbai — 400 051

CODE: IFCI

Dear Sir/Madam,

Re: Outcome of the Board Meeting held on June 28, 2021.

This is to inform that the Board at its Meeting held on June 28, 2021 has approved the following:

• 1. The Standalone and Consolidated Financial Results of the Company for the quarter and Financial Year ended March 31, 2021 along with Auditor's Reports, Statements of Assets and Liability, Statement of Cash Flow and Declaration of Unmodified Opinion for the Standalone and Consolidated Financial Results respectively.
• 1. The initiation of process of selection and appointment of Consultant for formulating the IFCI's Revival Strategy.

This is for your information and record.

Thanking You

Yours faithfully For IFCI Limited

1,(\ (Rupa Deb) ** ■Company** Secretary Encl.: As above

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vue, 61 48-6 rkf, 4188f — 110 019 VaITM +91-11-4173 2000, 4179 2800 7l761: +91-11-2623 0201, 2648 8471 44Z{W: www.ifciltd.com - 1,74899DL1993G01053677

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IFCI Limited Regd. Office:

IFCI Tower, 61 Nehru Place, New Delhi - 110 019 Phone: +91-4173 2000, 4179 2800 Fax: +91-11-2623 0201, 2648 8471 Website: www.ifciltd.com CIN: L74899DL1993G01053677

In Development of 1-he Nation since 1948

No. IFCl/CS/2021- 332- June 28, 2021

The National Stock Exchange of India Limited Exchange Plaza Plot No, C/1, G Block, Bandra Kuria Complex Bandra (East) Mumbai — 400 051

CODE; IFCI

Dear Sir/Madam,

Re: Declaration regarding Auditor's Report with an unmodified opinion for the Financial Year ended March 31, 2021,

Pursuant to Regulation 33(3)(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. CIR/CFD/CMD/56/2016 dated May 27, 2016, this is to state that there is unmodified opinion in the Standalone and Consolidated Audit Reports of the Company for the Financial Year ended March 31, 2021.

This is for your information and record.

Thanking You

Yours faithfully For IFCI Limited

(Rupa Deb) Company Secretary

Encl.: As above

arif *ni 11J1 ⁸

itart-a-qmqicriq: 3i-r6gcMi31re icH., 61 ol 8m 88 - 11 0 019 V2llisf: +91-11-4173 2000, 4179 2800 ¹W8Vr: +91-11-2623 0201, 2648 8471 44-ZirOZ: www.ifciltd.com L74899DL1993G01053677

1948 2'1 1a851-6 af

IFCI Limited Regd. Office:

IFCI Tower, 61 Nehru Place, New Delhi - 110 019 Phone: +91-4173 2000, 4179 2800 Fax: +91-11-2623 0201, 2648 8471 Website: www.ifciltd.com CIN: L74899DL1993G01053677

In Development of the Nation since 1948

ान्य सम्पान
अर्थश्री नेपछ श्री स्थान स्थितिहरू (ADDITIONAL PARTIES)

$\,$

. IFCLLTD. CIN: L74899DL1993GOI053677 REGD, OFFICE : IFCI TOWER 61, NEHRU PLACE, NEW DELHI - 110 019 WEBSITE: www.lfciltd.com

1. 1. A 1994 S. STATEMENT OF AUDITED IS INVOLUGACITY INCLUSION THE QUARTER AND YEAR ENDED MARCH 31, 2021 2.3. 2.2. 2.2. 2.2. 2.2. 2.2. 2.2. 2. (₹ in Crores)

$\bar{z}$

			Standalone Results
		Particulars	Quarter ended 31/03/21 (Unaudited)	Ouarter ended 31/12/20 (Unaudited)	Quarter ended 31/03/20 (Unaudited)	Year ended 31/03/21 (Audited)	Year ended 31/03/20 (Audited) ana tina
		Revenue from operations
	a)	Interest Income	(188, 64)	314.13	733,79	1,085.73	2,144.10
	b)	Dividend Income	13.76	8.80	0.11	25.69	43,24
	c)	Rental income	8.86	9.81	9.52	38.50	36.19
	d)	Fees and commission Income	8.51	10.21	4.73	34.72	20.13
	e)	Net gain on fair value changes	(1.11)	57.23	$\bullet$	193.26
		Total Revenue from operations	(156.62) 10.20	400.18 0.79	748.15 1.16	1,378.00 18,92	2,243.66 20,40
	$\ddot{0}$ Total income	Other Income	(146.42)	400.97	749.31	1,396.92	2,264,06
	Expenses
	a)	Finance costs	267.24	275.81	318.82	1.118.97	1,416.35
	b)	Net loss on fair value changes			98.56		275.50
	Q)	Impainment on financial instruments	193,91	979.82	727.08	2,271,63	421.96
	d)	Employee Benefits Expenses	32.99	16.55	67.40	91.09	143,92
	e)	Depreciation and Amortization	7.93	6.64	7.40	29.30	30.66
	Ð	Others expenses	13.08	6.03	45.32	33.16 3,544.15	II6.58
	Total expenses	Profit/ (loss) before exceptional and tax (1-2)	515.15 (661.57)	1,284.85 (883.88)	1,264,58 (515, 27)	(2,147.23)	2,404,97 (140.91)
9₹.
4	Exceptional items		÷.	$\overline{a}$
کی گئ		Profit/ (loss) before \tan (3-4) in a later that $\alpha$ and $\beta$ is a later than $\alpha$	(661.57)	(883.88)	3 an 102 an 15 an	(2.147.23)	(140.91)
6	Tax expense
	a)	Income tax		$\overline{a}$
	b)	Taxation for earlier years	8,57		۰.	8.57	43.99
	c)	Deferred Tax (Net)	178.50 187.07	(143.71) (143.71)	74.41 7441	(197.99) (189.42)	92.98 136.97
71		Total Tax expense [6(a) to 6(c)] Profit/(loss) for the period (5+6) 14年4月 DS ST 15-42 N.Y	(848.64)	(740.17)	1589.681	(1.957.81).	277.88
8		Other Comprehensive Income
	a)	Items that will not be reclassified to profit or loss
		-Fair value changes on PVTOCI - equity securities	2.52	5.05	(7.58)	27.77	(30.27)
		Loss on sale of FVTOCI - equity securities	۰	$\blacksquare$	$\blacksquare$		(5.12)
		Income tax relating to items that will not be reclassified to profit or loss		٠.
		Tax on Fair value changes on FVTOCI - Equity securities	(0.89)	(1.76)	2.65	(9.71)	(30.87)
		Tax on Actuarial gain/(loss) on Defined benefit obligation					18.65
	en en la esta	Subtour also shows that the contract of the settlement of the settlement of the settlement of the settlement of	$15 - 15 - 15$	$-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$ , $-7$		TANK 3 4 4 5 4 3.06	(4701)
	ы	Hems that will be reclassified to profit or loss
		-Debt securities measured at FVTOCI - net change in fair value	(9.99)	15.84	(9.22)	2.35	(10.76)
		Debt securities measured at FVTOCI - reclassified to profit and loss
		Income tax relating to items that will be reclassified to profit or loss
		Tax on Fair value changes on FVTOCI - Debt securities	4.03	(5.54)	17.15	1.72	18.72
		$\mathbf S$ ulitotal ${\mathbf 0}$		(紫泥区	39.ZSL	我的	kt (ve 1996. 1996. – Albert II.
			(5.96)	10.30	7,93	4.07
Service		Other contrired this is come of doss) and of the company of the company of the	الاقتلاء تستحدث تناخذ	2012. SERCE 1999	Contract Common Discussion	--------------------------------------	$22.3 - 139.65$
26203		Total comprehensive income. (Ioss) (after tax) (748) : A 27, 33-34, A = 27, 77-3		ಿಯಲ್ಲಿ (852,96) - ಎಲ್. ಎಂ. (726,59) ಒಂದು ಅವರ (586,68)		20 14:53 11:035.681	- 52.52.5319.531
10		Paid-up equity share capital (Face Value of ₹ 10/-each)	1.895.99	1.895.99	1.695.99	1,895.99	1,595.99
11		Other equity (as per audited balance sheet as at 31st March)				476,11	2,411.78
12		Earnings per share (face value of $\bar{x}$ 10 each) (not annualised for the interim periods):
	$\left( n\right)$	Basic $(\overline{\epsilon})$	(4.48) (4.48)	(3.90)	(3.48) (3.48)	(10.33)	(1.64)
	(b)	Diluted (₹)		(3.90)		(10.33)	(1.64)

$-3-$

$\bar{z}$

$\begin{array}{c} \textbf{IFCI LTD},\ \textbf{CIN: L74899DL1993GO1053677} \end{array}$ REGD. OFFICE: IFCI TOWER 61, NEHRU PLACE, NEW DELHI - 110 019 WEBSITE: www.ifciltd.com

$\bar{z}$

STATEMENT OF AUDITED (CONSOLIDATED) FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2021						an sa kara (₹ In Crore)
Dentis San Ro Consolidated Results 25 A						94 -17
		Particulars	Quarter ended 31/03/21 (Unaudited)	Ouarter ended 31/12/20 (Unaudited)	Quarter coded $31/03/20$ . (Unsudited)	Year ended 31/03/21 (Audited)	Year ended 31/03/20 (Andited)
		Revenue from operations
	a)	Interest Income	(170.76)	341,47	778.05	1,192.86	2,254.92
	Ъ	Dividend Income	10.21	8.82	20.08	27.74	63.21
	c)	Reatal Income	6.22	9.91	(0.21)	29.39	28.17
	ď)	Fees and commission Income	3.19	16.10	(114, 29)	46.98	40.62
	e) $\mathbf{f}$	Net gain on fair value changes Sale of products (including Excise Daty)	(19, 49) 7.30	58.69 38.66	(4.01) 3.34	196.55 56.02	÷ 13.84
	g)	Sale of survices	169.69	137.14	246.95	516,82	471.23
		Total Revenue from operations	6.36	610,79	929,91	2.066.36	2,871.99
	h)	Other Income	9,40	(0.67)	(70.92)	27.45	33.69
		Total income	15.76	610.12	858.99	2,093.81	2,905.68
$\mathbf{2}$	Expenses
	a) b)	Finance costs Fees and commission expense	263.62 22,08	286,13 21.05	316.02	1,147.23	1,451.27
	c)	Net loss on fair value changes	$\tilde{\phantom{a}}$	$\blacksquare$	8.11 68.98	60.57 ۰	37.09 245.92
	d)	Impairment on financial instruments	209.33	984.23	751.03	2,305,11	473,40
	e)	Cost of materials consumed	1.90	28.33	17,02	30.31	37.35
	Ð	Purchases of Stock-in-trade	5.92	5.72	3.08	21.40	13.28
	g)	Employee Benefits Expenses Depreciation and Amortization	100.78	60.81	120.62	292.42	326.06
	h) i)	Others expenses	18.54 58.90	17.04 67.82	19.44 63.33	72.39 251.54	81.34 330.25
		Total expenses	681.07	1,471.13	1,367.63	4.180.97	2,995.96
- 3		Profit/ (loss) before exceptional and tax (1-2)	(665.31)	(861.01)	(508.64)	(2,087.16)	(90.28)
4		Exceptional items	(2.37)		3.96	(2.37)	3.96
Ă.		Profit/(loss) before $\tan(3-4)$ , $\sin(3-4)$ , $\sin(3-4)$ , $\sin(3-4)$	(662.94) 94 S.E	(861.01) 367 Y.H	(512.60)	(2,084,79)	(94.24)
6		Tax expense Income tax
	a) b)	Taxation for earlier years	4.83 8.67	3,26 (0.12)	0.03 1.22	17.50 8.97	3.70 44.38
	c)	Deferred Tax (Net)	172.53	(146.16)	70.34	(199.68)	80.89
		Tax expense [6(a) to 6(c)]	186.03	(143.02)	71.59	(173.21)	128.97
		$\mathcal{I}$ , $\left\langle \mathrm{Profi}\mathcal{U}(\mathrm{loss})\right\rangle$ for the period after taxes ${\mathbb{S}\text{-}\mathbb{S}}\left\langle \mathbb{S}\right\rangle$ , $\left\langle \mathbb{S}\right\rangle$ , $\left\langle \mathbb{S}\right\rangle$ , $\left\langle \mathbb{S}\right\rangle$	సామాన్ (848.97)	(717.99) 것정	(584.19)	(1,911.58)	(223.21)
8		Share of net profit of associates and joint ventures accounted for using the
÷G. 10		Profit/(loss) for the period (7+8) $\rightarrow$ $\rightarrow$ $\rightarrow$ $\rightarrow$ $\rightarrow$ $\rightarrow$ $\rightarrow$ $\rightarrow$ Other Comprehensive Income	ل کال پارل مردم ال (848.97)	(717.99)	(584, 19) 23	(1, 911.58)	(2.23.21)
	a)	Items that will not be reclassified to profit or loss -Fair value changes on FVTOCI - Equity securities
		-Gain/(loss) on sale of FVTOCI - Equity securities	209.48	19.32 $\mathbf{r}$	102.35	542.33	(119.94) (5.12)
		-Actuarial gain/(loss) on Defined benefit obligation	3.02	(3.29)	(1.15)	0.42	(4.46)
		Income tax relating to items that will not be reclassified to profit or loss
		Tax on Fair value changes on FVTOCI - Equity securities	(49.13)	(5.85)	(24.54)	(130.20)	(15.37)
	b)	-Tax on Actuarial gain/(loss) on Defined benefit obligation Items that will be reclassified to profit or loss	(0.73) à.	0.81	1.82	(0.07)	19.76
		Fair value changes on FVTOCI - Debt securities	(9.99)	15.84	(9.22)	2,35	(10.76)
		Debt securities measured at FVTOCI - reclassified to profit and loss	$\blacksquare$	$\blacksquare$	$\blacksquare$
		Exchange differences in translating the financial statements of a foreign operation	0.05	(0.12)	0.76	(0.34)	1,16
		Income tax relating to items that will be reclassified to profit or loss -Tax on Fair value changes on FVTOCI - Debt securities
		Other comprehensive income / (loss) (net of tax)	4.03 156.73	(5.54) 21.17	17.15 87.17	1.72 416.21	18.72 (116.01)
11 12		Total comprehensive income $I$ (luss) (after tax) (99.10) $\sqrt{3}$ (8.13) $\sqrt{3}$ (1.13) $\sqrt{3}$ Profit for the period attributable to Equity holders of the parent	والأواليان (692.24)	(696.82)	(497.02)	(1, 495, 37)	(339, 22)
			(854.20)	(727.12)	(572.82)	(1,941,51)	(230.44)
		Non-controlling interest	5.25	9.12	(11.36)	29.93	7.23
13		Other Comprehsive income attributable to Equity holders of the parent	81,02	17.53	47.39	230.51	(50.22)
14		Non-controlling interest Total comprehensive income for the period attributable to Equity holders of the	75.73	3.65	39.79	185.70	(35.79)
	parent		(773.18)	(709.59)	(525.43)	(1,711.00)	(310.66)
		Non-controlling interest	80.98	12.77	28.43	215.63	(28.56)
15		Paid-up equity share capital (Face Value of ₹ 10/- each)	1,895.99	1,895.99	1,695.99	1,895.99	1,695.99
16		Other Equity (as per audited balance sheet as at 31st March)				1,841.97	3,553.04
17		Earnings per share (face value of $\bar{x}$ 10 each) (not annualised for the interim periods):	(4.51)
		(a) $\text{B指}(\xi)$ ODED NURSING	(4.51)	(3.84) (3.84)	(3.38) (3.38)	(10.24)	(1.36) $(10.24)$ / $\sim$ $\pi$ e/1 $(136)$
		See accompanying notes to the financial results

$-4-$

$\sim$

$\hat{\boldsymbol{\beta}}$

$\ddot{\phantom{a}}$

$\frac{1}{2}$

IFCILTO. FV4 LD
CIN: L74899DL1993G0i053677
REGD, OFFICE : IFCI TOWER
61, NEHRU PLACE, NEW DELHI ~ 110 019
WEBSITE: www.lfciltd.com

$(7 in Cross)$

		OF ASSETS & LIABILITIES	Standalone		Consolidated
Paixlenais		As at 31/03/21 (Audited)	As at 31/03/20 (Audited)	As at 31/03/21 (Audited)	As at 31/03/20 (Audited)
T,	ASSETS
(1)	Financial assets
	(a) Cash and cash equivalents	533.56	1,034.03	1,179.73	1,527.72
	(b) Bank balance other than (a) above	588.33	589,76	1,340.71	1,052.86
	(c) Derivative financial instruments		50.04		50.04
	(d) Trade receivables	57.32	78.43	193.63	192.67
	(e) Loans	6,479.71	10,295.36	6.840.83	10,767.31
	(f) Investments	2,950.34	1,882.54	5,504.10	3,962.55
	(g) Other financial assets	139.49	132.68	1,538.06	1,039.15
	Total Financial Assets	42 10,748.75	14,062.84	16,597.06	18,592.30
(2)	Non-Financial Assets
	(a) Investment in subsidiaries	1,343.71	1,352.13
	(b) Investment accounted using equity method
	(c) Inventories			88.63	118.53
	(d) Current tax assets (Net)	62.23	181.48	111.03	276.31
	(e) Deferred (ax assets (Net)	2,122.05	1,932.04	1,707.08	1.635.93
	(f) Investment property	185.50	190.08	201.13	206.01
	(g) Property, plant and equipment	741.73	687.08	1,068.88	1,017.73
	(h) Capital work-in-progress			8.89	4.28
	(i) Intangible assets under development			0.02	0,01
	(j) Goodwill			446.64	446.64
	(k) Other intangible assets	0.91	1.27	45.57	49.82
	(I) Other non-financial assets	14.46	22.36	77.88	79.96
	Total Non-Financial Assets and Li	4.470.59 0.04	4,366.44	3.755.75	3,835.2
(3)	Assets classified as held for sale Total Assets (1+2+3) San J 1 p.e.	3.77715,219.38	18,429.28	11,31 $-20.364.12$ 53	11,28 22,438.80 ಯೋಜನೆ ಇನ
ĀЛ 72 н.,	5. M 12 : 194 LIABILITIES AND EQUITY
	LIABILITIES
(1)	Financial Liabilities
	(a) Derivative financial instruments	15.91		15.91
	(b) Trade payables
	(i) total outstanding dues of MSMEs			0.40	4,88
	(ii) total cutstanding dues of creditors other than MSMEs	165.68	66.60	409.92	242.72
	(c) Other payables
	(i) total outstanding dues of MSMEs
	(ii) total outstanding dues of creditors other than MSMEs			211.10	192.50
	(d) Debt securities	7,270.78	7,844.60	7,370.99	7,973.93
	(e) Borrowings (other than debt securities)	2,285.70	3,165.50	2.356.95	3,279.11
	(f) Subordinated liabilities	1,313.30	1,313.30	1,313.30	1,313.30
	(g) Other financial liabilities	1,713.31	1,805.64	3.496.10	2,871.52
	Total Financial Liabilities	12,764.68	14,195,64	15,174,67	15,877.96
(2)	Non-Financial Liabilities
	(a) Provisions	82.18	125.01	152.39	205.04
	(b) Other non-financial liabilities	0.42 82.60 وتقويها	0, 86 0.50125.87	12.57 164.95	28.75 233.79 823 B.A.
24 (3)	Total Non-Financial Liabilities and acceptance of the company Equity
	(a) Equity share capital	1,895,99	1,695.99	1,895.99	1,695,99
	(b) Other equity	476.11	2,411.78	1,841.97	3,553.04
	Non controlling interest			1,286.53	1,078.02
	Foial Boults	2,372.10	4,107.77	3,737.96	÷. 5,249,03
	Total Liabilities and Equity ( 172+3) 27.	15,219.38	18,429.28	20,364.12	- 22,438.80

$-5-$

$\hat{\boldsymbol{\beta}}$

IFC I LTD. CLN: L74899101.1993001053677 REGD. OFFICE : IFCI TOWER 61, NEHRU PLACE, NEW DELHI - 110 019 WEBSITE: www.lfciltd.com

				(T in Crates)
	.• STATEMENT OF CASH FLOW FOR THE YEAR ENDED MAliCH 31, 2021 :
	- Standalo.ne	:		• Consolidated . ••
P.artianiari	'Year ended 3110301 (Audited) . • ' .	Year ended 01/03/20 (Audited) .: -	• • Year ended • 3003121 (Audited)	'Year ended 31103/20 - (Audited) - •
A. CASH FLOW FRoni OPERATING ACTIV1TES
Net Profit before Tax	(2,147.23)	(140.91)	(2,084.79)	(94.24)
Adjustments for
Depreciation and amortisation	19.30	30.66	72.39	81.34
impairment provision/ write offs	2,271.63	421.96	2,305.11	472.29
Unrealised gain/(loss) an investments	(304.53)	275.50	53.42	(252.79)
bnpairment on Non-financial asset	(11.34)	63.17
(NOD/ Loss on Sale of Assets	(0.01)	(8.53)	(0.01)	(7.41)
Operating Profit before Working Capital Changes & Operating Activities	(162.18)	541.95	346.12	199.20
Adjustments for Operating Activities:
(Incnease)/ decrease in Investments	(777.68)	1,163.64	(1,051130)	1,734.49
(Increase)/ decrease in Inventory			29.90	36.52
(Increase)/ decrease in Leans & Advances	1,589.09	2,488.28	1,621.38	2,473.92
(Increase)/ decrease in Derivative Financial Instruments	65.95	(35.38)	• 65,95	(35.38)
Increase/ (decrease) in Trade Payables	99.08	(40.67)	181.31	60.42
(Incii•ease)/ decrease in Receivables	19.99	(71.48)	(0.96)	(17.53)
Increase/ (decrease) in Debt Sect:tides	(573.82)	(1,382.19)	(602.94)	(1,360.17)
Increase'(decrease) in Borrowings Operating Profit before Working Capital Changes	(879.80) (559.38)	(2,388.21) 375.84	(922,16) (331.70)	(2,46759) 623.73
Adjustments Inn	7.90	(7.85)	(439.91)	(118.57)
(Increase)/ decrease in Other Financial Assets Increase/ (decrease) in Other Non-financial Asset	(9,54)	20.16	1.65	3.98
Increase/ (decrease) ht Other Financial Liability	(92.33)	60,93	608.91	175.11
Increase/ (decrease) in Other Non-financial Liability	(0.44)	(0.53)	(16.17)	52,35
Increase/ (decrease) in Prevision	(87.71)	61.59	(52.23)	47.94
Increase/ (decrease) in ethos bank balances	1.43	(45.55)	(287.85)	(113,91)
Increase,/ (decrease) in assets held for sale	(0.04)	45.46	(0.03)	46.66
Cash Flaw 'before taxation	(175.23)	134.21	(244.62)	53,57
Income Trig (paid)/ refund - Net	110.67	(21.40)	138.79	(47.12)
NO Caili fliriv from OcierallitiAedvities . ''	(633.94)	486.69	(437.53)	. 63518.
B. CASFI FLOW FROM INVESTING ACTIVITIES	(82.84)	(8.03)	(97.98)	(41.79)
Purchase of / Advance for property, plant and equipments (including Leased property)
Investment in subsidiaries	11.34	(63.17)	-	-
Proceeds from sale of investment property	4.58	(3.29)	4.60	3.29
Sale of investment in associates and joint ventures				-
Purchase oti Advance for Intangible Asset	0.36 0.03	0.38 25.95	(0.71) (9.25)	(1.00) 6.99
Proceeds from sale of property, plant and equipments (including leased property)
Nit .asiillttii tiinniliwiifing.Mifigriii -:::	_ . (66.53}	fl - {48.10	: (103.34)	5(32.91])
C. CASH FLOW FROM FINANCING ACTIVITIES Dividend Paid			(7.12)	(4.21)
Share application money received	200.00	203.00	200.30	200.00
Net' itish iltAr•front . 1111;niiiiiike'llittfes	200.00	.-20000.	: :192.88	,195.79
Nel Ittere4e1 (Decrease) In Cash imd Cash Equivalent Mon (A40-FC) • -. • - •• - -	. (500. ,. . 117)	• 638.49 • - -	•.- . (47.:99)	-798.46
• Add : Cash and Cash Equivalents at beginning of the 6.nancial year .	1,334.03	395.54	1,527.72	729.25
Cash and Cash Equivalents at the end of the financial year	533.56	1,034.03	1,179.73	1,527.72

IFCI LTD. CIN: 174899DL1993001053 677 REGD. OFFICE :IFCITCWER 61, NEHRU PLACE, NEW DELHI — 110 019 WEBSITE: www.lfclltd,core

Notes:

• 1 The abeve financial results were reviewed by the Audit Committee and approved by the Board of Directors at the meeting held on 280 June 2021. These results have been audited by the Statutory Audit= of tire Company, 1)4/s M.K. Aggarwal & Co, Chartered Accountants,
• 2 The shareholders at its 27th Annual General Meeting held on December 22, 2020 approved the increase in Authorised Equity Share Capital film extant Rs. 2000 Crore comprising of 200 Crore number of equity shares of Rs. 10 each Sa lts. 4,000 Cross comprising cf 400 Crore number of equity shares of Rs. 10 each. Further, the Company has received Rs, 200 m ores from 001, Department of Financial Services, Ministry of Finance, an March 23, 2020, towards subsuiption to die share capital of the Company. The same has been classified under Other Equity ( Share application money pending allotment) as on 31st March 2020. The Company has subsequently allotted 20 crore number of equity shares E, Rs. 10 each to the President of India (Government of India) on May 21, 2020. Also, the Company received Rs. 200 crave on March 15,2021 from the Government of India towards subscription to the share capital dining the Financial Year 2020-21 as sham application money. In this regard, the Committees of Directors had allotted 14,59,85401 number of equity shares efface value of Rs. 101- each to the Government of /ndia on Amil 23,7021 Ps. 13.701- per equity share (including security premium of Rs. 3.70 ,per equity share)".
• 3 Interest income Is staled at net off ECL provisions and far the current quarter it has becomes negative due Se increase in LGD from 49,634 (Denemeber 20201 to 57.59% (March 2021).
• 4 In accordance with the P.BI Circular No, 9I31/2021-22/17 DOR.STR.REC.4/21.04.04812021.22 dated April 7, 2021 for refund/adjustment of ' interest on interest' charged during moratorium period i.e. March 1, 2020 to August 31,2070, an amount of Rs 8.23 erase has been estimated. Accordingly such provision has been created in books of account by debiting interest income.
• 5 As on March 31,21121, Impainnent allowance under Ind AS 109 is higher than RBI Prudential (ERACP) Norms (including standard assets provisioning). Accordingly the company has provided for the amount sayer Ind As in the books of aecounis as on 51st March 2021. The existing impairment reserve of Rs.34.54 crores created upto March 31,2021 has not been reversed. Though ECL on Loan Assets Is computed on portfolio basis, however during the current year, full impairment allowance has been made on loan accounts declared as fraud as per RBI nouns.
• 6 The Company has changed its accounting policy whereby income on stage 3 assets shall not be recognized in books of eccounts with effect from 01st April 2021. Also, incense already accrued ems 31st March 2021 shall be de-recognized on certain stage 3 assets.

Accordingly, an amount cf Rs 613.71 cr (not of ECL impairment allowance of Rs 83338 cm) has been charged to P &L account. Thus theloss for the year is higher by Rs 613.71 or and loan assets are lower by Rs 1447.08 Sr

• 7 The (Covid-19) pandemic globally and in India is causing significant disturbance in the financial Markets. On 11.03.2020, the Covid-19 outbreak was declared a global pandemic by the World Health Organization ( WHO). It has resulted in significant disruption in global and Indian economic activities. The situation has been under close watch by the Company to take prompt actions for continuity of business operation is optimized manner. The Cainpany believes that going forward, the impact of this outbreak will not be significant on its business and financial position.
• 8 The valuation of Investments its subsidiaty companies hes been considered on the basis of financial statements of the subsidiaries far the period ended 31st December 2020, instead of 31st March 2021. There is no material impact of 11116 011 the financial statements of the company.
• 9 Stockholding Coiporation of India Ltd. (SHCIL) had during the year 2000.01 undertaken a transaction of 0 24.45 crore with a client through the Calcutta Stock Exchange (CSE) under the 'Cash on Payout scheme Pile the sale of 7,20,000 equity shares of DSQ Industries Limited The said transaction was :confirmed by CSE based on winch post-dated cheques were issued The cheques were stopped for payment before their due date by the Company as the underlying trade transaction was contended lobe non-bonafide and disallowed lay CSE. A Bank, which had granted fmancial assistance against the said cheques, issued a notice of demand against the Company under Section 138 of the Negotiable Instrument Act, 1881. The Bank also filed an application its the Debt Recovery Tribunal (DRT) for recovery of the amount alongwith compound interest from the Company and the client, The Company disputed the claim of the Bank. The Bank's application to the DRT was dismissed and only the client was held liable. The Bank and the client had filed an appeal in the Debt Recovery Appellate Tribunal (DRAT) against the order of DRT. The appeals were allowed vide the DRAT order dated September 23, 2011, which stated that the amount would carry compouad interest from lot August 2001 @. 19% pa. with quarterly rests till realisation and the Bank was entitled to realize the sum from both the client and the Company. The Company filed a Revision Application in High Court, Calcutta on November 30, 2011 which was admitted hut ire interim relief WIS granted. Hence, the Company filed a Special Leave Petition (SLP) in the Supreme Court for stay of the High Court Order for riot granting interim relief of staying the DRAT ceder, the Order of the DRAT and the recovery certificate and notice of demand issued by Presiding Officer and recovery officer of DRT respectively. The Supreme Court vide its order dated April 23,2012 granted stay on the recovery proceedings and requested the Calcutta High Court to dispose ofif the Revision Application within a period of four months and the Company no deposit 030.00 crore with the Caleutta High Court Registry within a period of 4 weeks from the date of order by way of a short tents deposit in a nationalised bank, Accordingly, the Company had deposited the money with the Calcutta High Court, Registry. The revision application was dismissed. The Company filed Special Leave Petition (S12) in the Supreme Court le May 2015. The Supreme Court vide its order dated May 14, 2015 stayed the operation of the execution proceedings and the Company to deposit with the Registrar, Supreme Court of India, a fixed deposit receipt in the name of the Company and endorsed in favour of the Registrar an amount cinch less than 0 30.00 erase. Accordingly, the Company made the deposit. The amount of 7 60.00 snore, deposited by the Company in the High Court (0 30.00 more) and Supreme Court (0 30.00 crore) is shown under the heading "Long Tern Loans and Advances" under the sub heading "Security and other deposits" in the Statement of Balance Sheet, The bank was granted liberty to withdraw 30,00 crore along with interest that had been lying as deposit before the High Court of Kolkata which is subject to final decision in the SLP. Accordingly, an amount of 0 38.04 more was released to the Bank. Further by an order dated October 12, 21115, the Supreme Court directed the bank to withdraw an additional amount of 0 15.00 crore along with accrued interest from the money deposited with the Supreme Court Accordingly, an amount of 0 15.45 crore was released to the Bank The Special Leave petition has been converted into a Civil Appeal on February 08, 2017 and the matter is listed in the Suererne Court for final disposal. The matter is appearing regularly and was last taken IT far hearing in February 2020.

The amennts released to the Bank is subject to the final decision in the matter. In view of the nature of dispute, the amount of contingent liability has not been ascertained. Pending final adjudication niche matter by the Honorable Supreme Court and also in view of the legal opinion obtained by KIM, its the opinion of SHCIL management no provision is required to be made in the statement of Profit and Loss for year ended March 21, 2021.

10 In case of Stock Holding Corporation of India Ltd (SHCIL), there were certain unreconciled Items amounting to Rs 3.50 Cr grouped under trade receivable anon 31st March 2019. On further Investigation It has been revealed that one of the employee of the company bad fraudulently made payments to the non-clients amounting to Rs 2.94 Cr (net after recovery) fan client bank accounts. The cempany has filed a First Information Report to the Rabak police station, And the company has filed an insurance claim to New India Assurance Cempany Limited.

As it March 31, 2020, the Company can determine the amount of embezzlement of to prior accounting periods however it cannot detennine the amount of period specific loss as required under lndAS 8, as ammmts recoverable from the employee and that dam the Insurance claim is not fully determinable at March 31, 2020. Therefore it falls under the exception to IndAS 0 which states that If the quantum of loss cannot be ascertained cleanly during the current pealed the accouriting effects can be taken prospectively. The company on a conservative assessment, has provided an impaiment of Rs 2.94 or for the entire recoverable in the profit & loss statement of the previous financial year. Also the company had appointed an outside agency to prepare the bank reconciliation of the said bank acceunt from FY 2014-15 to FY 20105- 19. Rectification entries have been passed on receipt of revised bank reconciliation statement la the previous financial year.

During the current financial year , the insurance company has granted Rs 2.75 cc against a claim of Rs 2.94 cr. Out of the awarded claim, Rs 2.21 cr has been received from the insurance company and the balance of Rs 53.79 lakhs will he recived upon the monelizaticn of assets owned by the said employee or from the insurance company in case of any shortfall. Accordingly, the reversal of an impairment of Rs 2.75 er accounted in the current financial year.

The company had appointed a forensic auditor to conduct detailed analysis of the embezzlement of fund. The final report has been submitted by Forensic Auditor. Based on report management behaves that there is unlikely of any further financial hnpact of the same en the financial statements.

MCI LTD. CIN: L74699DL1993G01013677 REGD. ORRICE IFCI TOWER 61, NIH RU PLACE, NEW DELI-11 —110 019 WEBSLTE: www.ifciltd :corn

• 11 De all the secured bonds and debentures issued by the Company and ontstanding as on 31st March 2021, HO% security cover has been maintained against principal and interest, by way of floating chaige on receivables of the Company and/or Govertnnent Securities owned by the Company.
• 12 In the context of reporting business/geographical segment as required by Ind AS 108 "Operating Segments", the Company operations mann:dee of only one business segrnent of financing . Hence, there is no reportable segment as per Ind AS 108.
• 13 The figure for the quarter ended 31st Mardi 2021 and 31st March 2020 have been derived by deducting the year to date figures for the period ended 31st December 2020 and 31 at December 2019 from the audited figures for the year ended 3Ist March 2021 and 31st March 2029 respectively.
• 14 The figures for the previous quarter/period have been regrouped /rearranged wherever necessary to conform to the current period presentation

Place: New Delhi Date: 28 lune 2021

El 30, Ilishant Kurkj, Mum Pura, New De1h1410034

Tele : 011-47517171, 27353131 M.: 9899997699, 9810064176 Email : atul@mkac.in Website : www.mkae.in

Independent Auditor's Report on Quarterly & Annual Standalone Financial Results of IFCI Limited pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. 2015 as amended

To, The Board of Directors of IFCI Limited

Opinion

1. We have audited the accompanying Standalone financial results of IFCI Limited ("The Company') for the quarter and year to date ended 31st March, 2021 (the "statement") attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations")

In our opinion and to the best our information and according to the explanations given to us, these standalone financial results;

• i. are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
• give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net loss including other comprehensive loss and other financial information for the quarter ended and year to date ended 31st March 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the

Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

• 1. We draw attention to Note No. 4, regarding the reversal of "Interest charged on Interest" related to Moratorium period i.e. 1st March, 2020 to 31st August, 2020.
• 1. We draw attention to Note No. 5, with regard to full impairment allowance on fraud accounts, in terms of RBI guidelines.
• 1. We draw attention to Note No. 6, regarding change in accounting policy towards derecognition of income on certain Stage-3 assets. Consequently, the loss for the year is higher by Rs. 613.71 Crores (net of ECL provision of Rs. 833.38 Crores) and loan assets are lower by Rs. 1447.08 Crores.
• 1. We draw attention to Note No. 7, regarding the entity's impact of COVID-19 pandemic on its financial results.
• S. We draw attention to Note No. 8, where the valuation of the investments in subsidiary companies has been considered on the basis of limited review of financial statement for the quarter ended 31st December 2020.
• 1. The Capital Risk Adequacy Ratio (CRAR) stands at (-) 10.80% as on 31.03.2021, below the RBI stipulated guideline vide circular dated 31st May, 2018 (R8I/2017-18/181 DNBR (PD) CC.No,092/03.10.001/2017-18).

Our Opinion is not modified in respect of these matters.

Management's Responsibilities for the Standalone Financial Statements

These quarterly financial results as well as the year to date standalone financial statements have been prepared on the basis of interim financial statements. The Company's management and Board of Directors are responsible for the preparation and presentation of these financial statements that give a true and fair view of the net profit, other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Accounting Standards 34 "Interim Financial Reporting" specified under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, 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.

In preparing the standalone financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The management and Board of Directors are also responsible for overseeing the company's financial reporting process.

Auditor's Responsibilities for the Audit of Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the Standalone Financial Statements made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

1. The statement includes the results for the quarter ended March 31, 2020, being the balancing figures between audited figures in respect of full financial year ending on that date and the published year to date figures up to third quarter of the current financial year which were subjected to limited review by us. Our report on the statement is not modified in respect of this matter.

For M K Aggarwal & Co. Chartered Accountants Fifin Registration No: 001411N

Ac,cavuvJ

crnrxgaiai Partner Membership No. 099374 ODIN: 2J fl t fr R.ON2S;

Place: - New Delhi Date: - 28th June 2021

IN 30, rilsbant KunJ, Pitam Pura, New Delhi-110034

• Tele : 011-47517171, 27355151 M.: 9899997699, 9810064176 Email : atul@mkacari Website : www.mkac.in

Independent Auditor's Report on Quarterly & Annual Consolidated Financial Results of IFCI Limited pursuant to the Regulation 33 of the SEM (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended

To, The Board of Directors of IFCI Limited

Opinion

1. We have audited the accompanying statement of Annual Consolidated financial results of IFCI Limited (hereinafter referred to as 'Holding Company') and its subsidiaries (the holding company and its subsidiaries together referred to as "the Group"), for the year to date ended 31st March, 2021 (the "statement") attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

In our opinion and to the best our information and according to the explanations given to us, and on consideration of the reports of the other auditors on separate audited financial statements of the subsidiaries, the aforesaid consolidated financial results:

1. includes the annual financial results of the following entities:

S. No	Name Of the Entity	Relationship , ._.
1.	IFCI Limited	Parent Company
2.	IFCI Financial Services Ltd. (IFIN)	Subsidiaries
3.	IFCI Venture Capital Funds Ltd. (IVCF)	Subsidiaries
	IFCI Infrastructure Development Ltd, (IIDL)	Subsidiaries

5.	IFCI Factors Ltd. (IFL)	Subsidiaries
6.	MPCON Ltd.	Subsidiaries
7.	Stock Holding Corporation of India Ltd.	Subsidiaries
8.	IFIN Commodities Ltd. (indirect control through	Step-down
	IFIN)	subsidiaries
9.	IFIN Credit Ltd. (indirect control through IFIN)	Step-down
		subsidiaries
10.	IFIN Securities Finance Limited (indirect control	Step-down
	through IFIN)	subsidiaries
11.	IIDL Realtors Pvt. Ltd. (indirect control through	Step-down
	IIDL)	subsidiaries
12.	SHCIL Services Ltd. (indirect control through	Step-down
	SHCIL)	subsidiaries
13.	Stockholding Document Management Services	Step-down
	Limited (indirect control through SHCIL)	subsidiaries
14.	Stockholding Securities IFSC Limited (indirect	Step-down
	control through SHCIL)	subsidiaries

• are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in $i_{\rm s}$ this regard; and
• ii. give a true and fair view in conformity with the recognition and measurement principles laid down in the applicable accounting standards and other accounting principles generally accepted in India of the net loss and other comprehensive loss and other financial information for the quarter ended and year to date ended 31st March 2021.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further

described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

• 1. We draw attention to Note No. 4, regarding the reversal of "Interest charged on Interest" related to Moratorium period i.e. 1st March, 2020 to 31st August, 2020.
• 1. We draw attention to Note No. 5, with regard to full impairment allowance on fraud accounts, in terms of RBI guidelines.
• 1. We draw attention to Note No. 6, regarding change in accounting policy towards derecognition of income on certain Stage-3 assets. Consequently, the loss for the year is higher by Rs. 613.71 Crores (net of ECL provision of Rs. 833.38 Crores) and loan assets are lower by Rs. 1447.08 Crores.
• 1. We draw attention to Note No. 7, regarding the entity's impact of COVID-19 pandemic on its financial results.
• 1. We draw attention to Note No. 9, related to outcome of continuing litigation of Stock Holding Corporation of India Limited with a Bank, pending adjudication of the matter by the Honorable Supreme Court. As per the legal opinion obtained by the Management of Stock Holding Corporation of India Limited, no provision has been recognized in the Statement of Profit and Loss.

1. The Capital Risk Adequacy Ratio (CRAR) stands at (-) 10.80% as on 31.03.2021, below the RBI stipulated guideline vide circular dated 31st May, 2018 (RBI/2017-18/181 DNBR (PD) CC.No.092/03.10.001/2017-18).

Our Opinion is not modified in respect of these matters

Management's Responsibilities for the Consolidated Financial Statements

The Holding Company's Board of Directors is responsible for the preparation and presentation of these Consolidated financial statements in terms of the requirements of the Companies Act, 2013 that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows and consolidated changes in equity of the Group in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act,.

The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, 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.

In preparing the consolidated financial statements, respective Board of Directors of the companies included in the Group and of its subsidiaries are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are responsible for overseeing the company's financial reporting process of the Group.

Auditor's Responsibilities for the Audit of Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures in the Consolidated Financial Statements made by management.
• Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance of Holding Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Other Matters

• 1. The statement includes the results for the quarter ended March 31, 2021, being the balancing figures between audited figures in respect of full financial year ending on that date and the published year to date figures up to third quarter of the current financial year which were subjected to limited review by us. Our report on the statement is not modified in respect of this matter.
• 1. We did not audit the financial statements of six subsidiaries and seven step-down subsidiaries, whose financial statements reflect total assets of Rs. 6757.83 Crores, total income of Rs. 742.76 Crores, total net profit after tax of Rs. 60.30 Crores and total comprehensive income (net of tax) of Rs. 454.37 Crores for the year to date ended 31.03.2021, as considered suitably in the consolidated audited financial statements. These audited financial statements have been audited by other Auditors whose report has been furnished to us by the Management and our opinion on the Consolidated Audited Financial Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and our report in terms of sub-section (3) and (11) of Section 143 of the Act, in so far as it related to the aforesaid subsidiaries, is based solely on the report of the other auditors.

19,

• 1. In respect of Subsidiary Company " M/s IFCI Factors Limited", the statutory auditor has opined that 'The company has classified one of the account as Standard on 31.03.2021, by providing an adhoc sanction of Rs. 1.20 Crore (10% of outstanding) on 31.03.2021 and accordingly the overdue has been adjusted and account regularized."
• 1. In respect of consolidated accounts of Subsidiary Company "M/s IFCI Infrastructure Development Limited", the statutory auditor has opined that, "During the year, the company has followed the system of processing its accounting transactions through the Accounting Software "Tally ERP". All the vouchers are approved manually and same are posted in the books of accounts maintained in Tally Software only. However, it has been observed that there is possibility of posting of entries in back date within the quarter of the financial year. Accordingly, the company did not have any appropriate Internal Control System in place in Tally Software to prohibit such back dated entries, which may have financial implications."

The above observations at S, No. 3 & 4 are not material in nature in respect of consolidated state of affairs of the group and hence our opinion is not modified in respect of these matters.

For M K Aggarwal & Co.

Chartered Accountants Firm Registration No: 001411N

------ CA AtitlTAg - ";:vv-a-r-

Partner Membership No. 099374 UDIN: N27 L i3p9-9E0 (/'6'

Place: - New Delhi Date: - 28th June 2021