Increase Minus
Friday, February 05, 2016   SENSEX  24616.97  Up  278.54      Adani Ports :   211.20  Down  -3.40      Asian Paints :   897.15  Up  8.45      Axis Bank :   398.90  Up  16.80      B H E L :   132.80  Up  3.25      Bajaj Auto :   2361.10  Up  51.05      Bharti Airtel :   307.10  Up  2.60      Cipla :   569.95  Up  19.70      Coal India :   326.20  Up  4.75      Dr Reddy's Labs :   3109.05  Up  101.70      GAIL (India) :   341.50  Down  -13.10      H D F C :   1183.70  Up  13.70      HDFC Bank :   1056.40  Up  6.10      Hero Motocorp :   2578.05  Up  67.55      Hind. Unilever :   844.95  Up  10.35      ICICI Bank :   209.20  Up  5.15      Infosys :   1174.95  Down  -4.95      ITC :   323.90  Up  2.25      Larsen & Toubro :   1139.65  Up  3.60      Lupin :   1801.45  Up  149.35      M & M :   1217.35  Up  16.20      Maruti Suzuki :   3723.25  Down  -70.60      NTPC :   124.70  Down  -1.30      O N G C :   219.95  Down  -0.15      Reliance Inds. :   972.30  Down  -1.65      St Bk of India :   168.20  Up  5.15      Sun Pharma.Inds. :   856.80  Up  24.25      Tata Motors :   337.25  Up  11.30      Tata Steel :   234.00  Up  7.85      TCS :   2425.85  Up  8.40      Wipro :   558.00  Down  -1.60    
GET QUOTES NAV NEWS
SENSEX
24616.97
278.54
NIFTY
7489.1
85.10
GOLD
27507
85.00
SILVER
35789
-40.00
equity
Daily Market Tracker
Gainers & Losers  
Live Indices  
Index Movers  
Advances & Declines  
Value & Volume Toppers  
Only Buyers/Sellers  
Sector Watch  
Bulk Deals  
Block Deals  
New Highs & Lows  
52 Week High & Low  
Out/Under Performers
Index Constituents  
Unusual Volume  
Historical Returns  
News Analysis
Market Analysis
Technical Chart
Company Profile
Other Markets
Corporate Action
Debt Content
Submit Your Query
You Are Here : Markets  |  Equity   |   Company Profile  |   Reports
Housing Development Finance Corporation Ltd(Industry :   Finance - Housing)
 
BSE Code:500010NSE Symbol: HDFCP/E  (TTM): 29.44
ISIN Demat:INE001A01036Div Yield %:1.26EPS   (TTM) :40.21
Book Value (Rs):196.1559914Market Cap (RsCr):186892.81Face Value (Rs) :2
  Change Company 






NOTES ON ACCOUNTS











Notes forming part of the standalone financial statements

1. SIGNIFICANT ACCOUNTING POLICY

1.1 ACCOUNTING CONVENTION

These accounts have been prepared in accordance with historical cost convention, applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956 and the guidelines issued by the National Housing Bank. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes thatthe estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

1.2 SYSTEM OF ACCOUNTING

The Corporation adopts the accrual concept in the preparation of the accounts.

The Balance Sheet and the Statement of Profit and Loss of the Corporation are prepared in accordance with the provisions contained in Section 211 of the Companies Act 1956, read with Revised Schedule VI.

1.3 INFLATION

Assets and liabilities are recorded at historical cost to the Corporation. These costs are not adjusted to reflect the changing value in the purchasing power of money.

1.4 OPERATING CYCLE

Based on the nature of its activities, the Corporation has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

1.5 CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Corporation are segregated based on the available information.

1.6 CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.7 INTEREST ON HOUSING LOANS

Repayment of housing loans is generally by way of Equated Monthly Instalments (EMIs) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, pre-EMI interest is payable every month. Interest on loans is computed either on an annual rest or on a monthly rest basis.

1.8 INCOME FROM LEASES

Lease rental income in respect of leases is recognised in accordance with the AccountingStandard on 'Leases' (AS 19) notified by the Companies (Accounting Standards) Rules, 2006.

1.9 INCOME FROM INVESTMENTS

The gain/loss on account of Investments in Preference Shares, Debentures/Bonds and Government Securities held as long-term investments and acquired at a discount/premium, is recognised over the life of the security on a pro-rata basis. Interest Income is accounted on accrual basis. Dividend income is accounted when the right to receive is established.

1.10 BROKERAGE AND SERVICE CHARGES ON DEPOSITS

Brokerage, other than incentive brokerage, and service charges on deposits are amortised over the period of the deposit. Incentive brokerage, which is payable to agents who achieve certain collection targets, is charged to the Statement of Profit and Loss.

1.11 TRANSLATION OF FOREIGN CURRENCY

Initial recognition

Transactions in foreign currencies entered into by the Corporation are accounted at the exchange rates prevailing on the date of the transaction.

Measurement at the Balance Sheet date

Assets and liabilities in foreign currencies are converted at the rates of exchange prevailing at the year-end, where not covered by forward contracts. Wherever the Corporation has entered into a forward contract or an instrumentthat is, in substance, a forward exchange contract, the difference between the forward rate and the exchange rate on the date of the transaction is recognised as income or expense over the life of the contract.

Cross currency interest rate swaps are recorded by marking the foreign currency component to spot rate.

The net loss/gain on translation of long term monetary assets and liabilities in foreign currencies is amortised over the maturity period of such monetary assets and liabilities and charged to the Statement of Profit and Loss. The unamortised exchange difference is carried in the Balance Sheet as "Foreign currency monetary item translation difference account". The net loss/gain on translation of short term monetary assets and liabilities in foreign currencies is recorded in the Statement of Profit and Loss.

1.12 INVESTMENTS

Investments are capitalised at cost inclusive of brokerage and stamp charges and are classified into two categories, viz. Current or Long Term. Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Provision for diminution in the value of investments is made in accordance with the guidelines issued by the National Housing Bank and the Accounting Standard on 'Accounting for Investments' (AS 13) notified bythe Companies (Accounting Standards) Rules, 2006, and is recognised through the Provision for Contingencies Account. Investment properties are carried individually at cost less accumulated depreciation and impairment, if any.

1.13 TANGIBLE FIXED ASSETS

Fixed Assets are capitalised at cost inclusive of legal and/or installation expenses. Leased Assets are accounted in accordance with the Accounting Standard on 'Leases' (AS 19) notified by the Companies (Accounting Standards) Rules, 2006.

1.14 INTANGIBLE ASSETS

Intangible Assets comprising of system software are stated at cost of acquisition, including any cost attributable for bringing the same to its working condition, less accumulated amortisation. Any expenses on such software for support and maintenance payable annually are charged to the Statement of Profit and Loss.

1.15 DEPRECIATION AND AMORTISATION

Tangible Fixed Assets

Depreciation on all Fixed Assets other than Leased Assets and Leasehold Improvements, is provided for the full year in respect of assets acquired during the year. No depreciation is provided in the year of sale.

In respect of Leased Assets and Leasehold Improvements depreciation is provided on a pro-rata basis from the date of installation/acquisition.

Depreciation on Buildings, Computers, Leased Assets and Leasehold Improvements, is calculated as per the straight-line method; and on other assets as per the reducing balance method. All assets except Computers and Leased Assets are depreciated at rates specified by the Companies Act, 1956. Depreciation on Computers is calculated at the rate of 25 per cent per annum. Depreciation in respect of finance leases is provided on the straight line method over the primary period of lease or over the specified period, as defined under Section 205(5)(a) of the CompaniesAct, 1956, whichever isshorter. Depreciation in respectof Leasehold Improvements is provided on the straight-line method over the primary period of the lease.

Intangible Assets

Capitalised software is amortised over a period of four years on a straight-line basis. Investment in Properties Depreciation on Investment in properties is provided on a pro-rata basis from the date of acquisition.

1.16 PROVISIONS AND CONTINGENCIES

A provision is recognised when the Corporation has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are neither recognised nor disclosed in the financial statements.

1.17 PROVISION FOR CONTINGENCIES AND NON-PERFORMING ASSETS

The Corporation's policy is to carry adequate amounts in the Provision for Non-Performing Assets account and the Provision for Contingencies account to cover the amount outstanding in respect of all non-performing assets and standard assets respectively as also all other contingencies. All loans and other credit exposures where the instalments are overdue for Ninety days and more are classified as non-performing assets in accordance with the prudential norms prescribed bythe National Housing Bank. The provision for non-performing assets is deducted from loans and advances. The provisioning policy of the Corporation covers the minimum provisioning required as per the NHB guidelines.

1.18 EMPLOYEE BENEFITS

Defined contribution plans

The Corporation's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made. These funds and the schemes there under are recognised by the Income-tax authorities and administered by various trustees. The Rules of the Corporation's Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay interest at the rate declared for Employees' Provident Fund by the Government under para 60 of the Employees' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Corporation.

Defined Benefit Plans

For defined benefit plans in the form of gratuity fund and post retirement pension scheme for whole time Directors, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Except in case of Dubai branch of the Corporation, the provision for gratuity is made in accordance with the prevalent local laws.

Short-term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised duringthe year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

Long-term Employee Benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.

1.19 EARNINGS PER SHARE

Basic earnings per share is computed by dividing the profiV(loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

1.20 INCOME-TAX

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise the assets.

Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Statement of Profit and Loss.

1.21 SERVICE TAX INPUT CREDIT

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing/utilising the credits.

1.22 SECURITISED ASSETS

Derecognition of securitised assets in the books of the Corporation, recognition of gain or loss arising on securitisation and accounting for credit enhancement provided by the Corporation is based on the Guidance Note on Accounting for Securitisation issued by the Institute of Chartered Accountants of India.

Securitised assets are derecognised in the books of the Corporation based on the principle of surrender of control over the assets. Credit Enhancement provided by the Corporation by way of investments in subordinate Class B Pass Through Certificates is included under Investments in Pass Through Certificates in Note no. 13.

2. SHARE CAPITAL

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
AUTHORISED
162,50,00,000 Equity Shares of Rs 2 each 325.00 325.00
(Previous Year 162,50,00,000 Equity Shares of Rs 2 each)
325.00 325.00
ISSUED, SUBSCRIBED AND FULLY PAIP UP
154,63,47,255 Equity Shares of Rs 2 each 309.27 295.39
(Previous Year 147,69,70,010 Equity Shares of Rs 2 each)
309.27 295.39

2.1 Reconciliation of number of shares outstanding at the beginning and at the end of the reporting period:

Particulars

As at March 31, 2013

As at March 31, 2012

Number Rs in Crores Number Rs in Crores
Equity shares outstanding as at the beginning of the year 147,69,70,010 295.39 146,68,86,690 293.37
Shares allotted pursuant to exercise of stock options 1,46,93,995 2.94 1,00,23,420 2.00
Shares allotted pursuant to exchange of warrants 5,46,83,250 10.94 59,900 0.02
Equity shares outstanding as at the end of the year 154,63,47,255 309.27 147,69,70,010 295.39

2.2 The details of each shareholder holding more than 5 percent shares in the Corporation:

Particulars

Outstanding as on 31.3.2013

Outstanding as on 31.3.2012

Number % of shares held to total Shares Number (%) of shares held to total Shares
Aberdeen Asset Management Asia Ltd. (on behalf of funds advised/managed) 12,74,90,319 8.24 11,35,93,819 7.69
Life Insurance Corporation of India - - 8,25,68,977 5.59

2.3 4,77,13,935 shares of Rs 2 each (Previous Year 11,71,16,560 shares of Rs 2 each) were reserved for issuance as follows :

a) 4,77,13,935 shares of Rs 2 each (Previous Year 6,24,07,930 shares of Rs 2 each) towards outstanding Employees Stock Options granted/available for grant, including lapsed options [Refer Note 2.4].

b) Nil shares of Rs 2 each (Previous Year 5,47,08,630 shares of Rs 2 each) towards outstanding share warrants [Refer Note 3.8].

The Corporation has only one class of shares referred to as equity shares having Face Value of Rs 2 each. Each holder of equity share is entitled to one vote per share.

The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

2.4 During the year, Nomination and Compensation Committee of Directors (NCCD) at its meeting held on May 23, 2012 granted the 58,67,546 new stock options along with 2,34,929 options lapsed under previous Schemes i.e. ESOS-05 : 32,030 options, ESOS-07 : 1,32,087 options, ESOS-08 : 70,812 options in all aggregating to 61,02,475 stock options representing 3,05,12,375 equity shares of Rs 2 each at an exercise price of Rs 3,117.50 per option to Employees and Directors of the Corporation under Employees Stock Option Scheme - 2011 (ESOS-11). The said price was determined in accordance with the pricing formula approved by the shareholders i.e. at the latest available closing price of the equity shares of the Corporation on the stock exchange on which the shares are listed and having higher trading volume, prior to the meeting of the NCCD at which the options are granted.

In terms of ESOS -11, the options would vest over a period of 1-3 years from the date of grant, but not later than May 22, 2015, depending upon option grantee completing continuous service of three years with the Corporation. Accordingly, no options have vested during the current year. The options can be exercised over a period of five years from the date of respective vesting.

Under Employees Stock Option Scheme - 2008 (ESOS - 08), the Corporation had on November 25, 2008, granted 57,90,000 stock options at an exercise price of X1,350.60 per option representing 57,90,000 equity shares of X10 each to the employees and directors of the Corporation. The said price was determined in accordance with the pricing formula approved by the shareholders i.e. at the latest available closing price on the stock exchange having higher trading volume, prior to grant of options.

In terms of ESOS - 08, the options would vest over a period of 1-3 years from the date of grant, but not later than November 24, 2011, depending upon option grantee completing continuous service of three years with the Corporation. Accordingly, during the year Nil options (Previous Year 64,042 options) were vested and 112 options (Previous Year 581 options) were lapsed after vesting. The options can be exercised over a period of five years from the date of respective vesting.

Under Employees Stock Option Scheme - 2007 (ESOS - 07), the Corporation had on September 12, 2007, granted 54,56,835 stock options at an exercise price of X2,149 per option representing 54,56,835 equity shares of Rs 10 each to the employees and directors of the Corporation. The said price was determined in accordance with the pricing formula approved by the shareholders i.e. at the latest available closing price on the stock exchange having higher trading volume, prior to grant of options.

In terms of ESOS - 07, the options would vest over a period of 1-3 years from the date of grant, but not later than September 11, 2010, depending upon option grantee completing continuous service of three years with the Corporation. All the options have been vested in the earlier years. In the current year 525 options (Previous Year 1,630 options) were lapsed after vesting. The options can be exercised over a period of five years from the date of respective vesting.

Under Employees Stock Option Scheme - 2005 (ESOS - 05), the Corporation had on October 25, 2005, granted 74,73,621 stock options at an exercise price of Rs 912.90 per option representing 74,73,621 equity shares of Rs 10 each to the employees and directors of the Corporation. The said price was determined in accordance with the pricing formula approved by the shareholders i.e. at the latest available closing price on the stock exchange having higher trading volume, prior to grant of options.

In terms of the ESOS-05, the options would vest over a period of 2-3 years from the date of grant, but not later than October 24, 2008, depending upon option grantee completing continuous service of three years with the Corporation. All the options have been vested in the earlier years. In the current year 12,285 options (Previous Year 524 options) were lapsed after vesting. The options can be exercised over a period of five years from the date of respective vesting. Accordingly, all the options vested under ESOS-05 have been exercised.

Method used for accounting for share based payment plan:

The Corporation has used intrinsic value method to account for the compensation cost of stock options to employees of the Corporation. Intrinsic value is the amount by which the quoted market price of the underlying share exceeds the exercise price of the option. Since the options under ESOS-11, ESOS-08, ESOS-07 and ESOS-05 were granted atthe market price, the intrinsic value of the option is Nil. Consequentlythe accounting value of the option (compensation cost) is also Nil.

Movement in the options under ESOS-11, ESOS-08, ESOS-07 and ESOS-05:

Particulars

ESOS-11

Options Current Year Options Previous Year
Outstanding at the beginning of the year - -
Granted during the year 61,02,475 -
Vested during the year - -
Exercised during the year - -
Lapsed during the year 31,200 -
Outstanding at the end of the year 60,71,275 -
Unvested at the end of the year 60,71,275 -
Exercisable at the end of year - -
Weighted average price per option

Rs 3177.50

Particulars

ESOS-08

Options Current Year Options Previous Year
Outstanding at the beginning of the year 22,81,083 32,29,708
Granted during the year - -
Vested during the year - 64,042
Exercised during the year 5,24,232 9,48,044
Lapsed during the year 112 581
Outstanding at the end of the year 17,56,739 22,81,083
Unvested at the end of the year - -
Exercisable at the end of year 17,56,739 22,81,083
Weighted average price per option

Rs 1,350.60

Particulars

ESOS-07

Options Current Year Options Previous Year
Outstanding at the beginning of the year 37,80,574 44,21,246
Granted during the year - -
Vested during the year - -
Exercised during the year 21,09,398 6,39,042
Lapsed during the year 525 1,630
Outstanding at the end of the year 16,70,651 37,80,574
Unvested at the end of the year - -
Exercisable at the end of year 16,70,651 37,80,574
Weighted average price per option

Rs 2,149.00

Particulars

ESOS-05

Options Current Year Options Previous Year
Outstanding at the beginning of the year 3,17,454 7,35,576
Granted during the year - -
Vested during the year - -
Exercised during the year 3,05,169 4,17,598
Lapsed during the year 12,285 524
Outstanding at the end of the year - 3,17,454
Unvested at the end of the year - -
Exercisable at the end of year - 3,17,454
Weighted average price per option

Rs 912.90

With effect from August 21, 2010, the nominal face value of equity shares of the Corporation was sub-divided from Rs 10 per share to Rs 2 per share. Accordingly, each options exercised after August 21, 2010 is entitled to 5 equity shares of Rs 2 each.

Fair Value Methodology:

The fair value of options have been estimated on the date of grant using Black-Scholes model as under:

The key assumptions used in Black-Scholes model for calculating fair value under ESOS-2011, ESOS-2008, ESOS-2007 and ESOS-2005 as on the date of grant viz. May 23, 2012, November 25, 2008, September 12, 2007 and October 25, 2005, are as follows :

Particulars ESOS-2011 ESOS-2008 ESOS-2007 ESOS-2005
Risk-free interest rate (p.a.) 8.06% 6.94% 7.70% 6.38%
Expected life Upto 2 years Upto 2 years Upto 2 years 2 to 3 years
Expected volatility of share price 15% 29% 19% 30%
Expected growth in dividend (p.a.) 20% 20% 20% 20%
The weighted average fair value, as on the date of grant (per Stock Option) Rs 474.56 Rs 238.79 Rs 307.28 Rs 105.50

Since all the stock options granted under ESOS-2008, ESOS-2007 and ESOS-2005 have been vested, the stock based compensation expense determined under fair value based method is Rs Nil (Previous Year Rs Nil). Accordingly there is no change in the reported and proforma net profit and Basic and Diluted EPS.

However, had the compensation cost for the stock options granted under ESOS-11 been determined based on the fair value approach, the Corporation's net profit and earnings per share would have been as per the pro-forma amounts indicated below:

Particulars Current Year Previous Year
Net Profit (as reported) 4,848.34 4,122.62
Less : Stock-based compensation expenses determined under fair value based method, net of tax: [Gross Rs 233.78 crores (Previous Year Rs Nil)] (pro forma) 157.93
Net Profit (pro forma) 4,690.41 4,122.62
Less : Amounts utilised out of Shelter Assistance Reserve 9.13 6.89
Net Profit considered for computing EPS (pro forma) 4,681.28 4,115.73

 

Particulars Current Year Previous Year
Basic earning per share (as reported) 31.84 27.97
Basic earning per share (pro forma) 30.80 27.97
Diluted earning per share (as reported) 31.45 27.54
Diluted earning per share (pro forma) 30.42 27.54

3. RESERVES AND SURPLUS

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
SPECIAL RESERVE No. I [Refer Note 3.3] 51.23 51.23
SPECIAL RESERVE No. II [Refer Note 3.3]
Opening Balance 4,750.95 4,020.95
Add: Transfer from Statement of Profit and Loss [Refer Note 3.4] 775.00 730.00
Sub Total 5,525.95 4,750.95
GENERAL RESERVE
Opening Balance 6,103.16 5,232.29
Add : Transfer from Statement of Profit and Loss 956.62 870.87
Sub Total 7,059.78 6,103.16
ADDITIONAL RESERVE (u/s 29C of the NHB Act)
Opening Balance 1,453.93 1,183.86
Add : Transfer from Statement of Profit and Loss [Refer Note 3.4] 825.00 620.00
Sub Total 2,278.93 1,803.86
Less : Utilised during the Year [Refer Note 3.2]
[Net of Deferred Tax of Rs Nil (Previous Year Rs 168.07 crores)] 349.93
Sub Total 2,278.93 1,453.93
SECURITIES PREMIUM
Opening Balance 6,038.89 6,218.89
Add : Transferred from Capital Reserve [Refer Note 3.8] 301.23 -
Add : Received during the year 3,819.09 305.07
10,159.21 6,523.96
Less : Utilised during the year (Net) [Refer Note 3.5] [(Net of tax effect of Rs 175.54 crores) (Previous Year Rs 223.25 crores)] 438.04 485.07
Sub Total 9,721.17 6,038.89
SHELTER ASSISTANCE RESERVE
Opening Balance 22.76 14.65
Add : Transfer from Statement of Profit and Loss 40.00 15.00
62.76 29.65
Less : Utilised during the year [Refer Note 3.1] 9.13 6.89
Sub Total 53.63 22.76

 

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
CAPITAL RESERVE
Opening Balance 301.27 301.27
Less: Transferred to Securities Premium [Refer Note 3.8] (301.23) -
Sub Total 0.04 301.27
SURPLUS IN THE STATEMENT OF PROFIT AND LOSS:
Opening Balance - -
Profit for the year 4,848.34 4,122.62
Amount available for appropriations 4,848.34 4,122.62
Appropriations
- Special Reserve No. II [Refer Note 3.4] 775.00 730.00
- General Reserve 956.62 870.87
- Additional Reserve (u/s 29C of the NHB Act) [Refer Note 3.4] 825.00 620.00
- Shelter Assistance Reserve 40.00 15.00
- Proposed Dividend [(Dividend Rs 12.50 per equity share of Rs 2 each) (Previous Year Rs 11 per equity share of Rs 2 each)] 1,932.93 1,624.67
- Additional Tax on Proposed Dividend 328.50 263.56
- Additional Tax on Dividend - 2011-12 [Refer Note 3.6] (24.62) (4.66)
- Dividend including tax of Rs 2.08 crores (Previous Year Rs 0.44 crore) pertaining to previous year paid during the year [Refer Note 3.7] 14.91 3.18
Sub Total - -
Total 24,690.73 18,722.19

3.1 Miscellaneous Expenses under Note 29.1 exclude Rs 9.13 crores (Previous Year Rs 6.89 crores) in respect of amounts utilised out of Shelter Assistance Reserve during the year.

3.2 During the year, in addition to the charges of Rs 145 crores (Previous Year Rs 80 crores) to the Statement of Profit and Loss, an amount of Rs Nil (net of Deferred Tax Rs Nil) [Previous Year Rs 349.93 crores (net of Deferred Tax of Rs 168.07 crores)], being one time charge on account of changes in the provisioning requirements by the National Housing Bank vide circulars no. NHB.HFC.DIR.3/CMD/2011 dated August 5, 2011 and NHB.HFC. DIR.4/CMD/2012 dated January 19, 2012 was transferred from Additional Reserve created as per Section 29C of the National Housing Bank Act, 1987 pursuant to circular NHB(ND)/DRS/Pol-No.03/2004-05 dated August 26, 2004 as under:

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
To Provision for Contingencies Account [Refer Note 6.2] 54.24 439.36
To Provision for Non-Performing Loans [Refer Note 15.7] 39.05 158.64
To Provision for Doubtful Receivables [Refer Note 20] 51.71 -
145.00 598.00

3.3 Special Reserve has been created over the years in terms of Section 36(1)(viii) of the Income-tax Act, 1961 out of the distributable profits of the Corporation. Special Reserve No. I relates to the amounts transferred upto Financial Year 1996-97, whereas Special Reserve No. II relates to the amounts transferred thereafter.

3.4 As per Section 29 C of the National Housing Bank Act, 1987, the Corporation is required to transfer at least 20% of its net profits every year to a reserve before any dividend is declared. For this purpose any Special Reserve created by the Corporation under Section 36(1)(viii) of the Income- tax Act, 1961 is considered to be an eligible transfer. The Corporation has transferred an amount of Rs 775 crores (Previous Year Rs 730 crores) to Special Reserve II in terms of Section 36(1)(viii) of the Income-tax Act, 1961 and an amount of Rs 825 crores (Previous Year Rs 620 crores) to "Additional Reserve (u/s 29C of the NHB Act)".

3.5 During the year, Corporation utilised Rs 438.04 crores (net of tax effect of X175.54 crores) [(Previous Year Rs 485.07 crores (net of tax effect of Rs 223.25 crores)] in accordance with Section 78 of the Companies Act, 1956, towards the proportionate premium payable on redemption of Zero Coupon Secured Redeemable Non Convertible Debentures (ZCD).

3.6 Additional Tax on dividend 2011-12 credit taken, Rs 24.62 crores (Previous Year Rs 4.66 crores), pertains to the dividend tax paid by the subsidiary companies of the Corporation on the dividend paid to the Corporation as per Section 115(O)(1A) of the Income Tax Act, 1961.

3.7 In respect of equity shares issued pursuant to Employee Stock Option Schemes and exchange of warrants, the Corporation paid dividend of Rs 12.83 crores for the year 2011-12 (X 2.74 crores for the year 2010-11) and tax on dividend of Rs 2.08 crores (Previous Year Rs 0.44 crores) as approved by the shareholders at the Annual General Meeting held on July 11, 2012.

3.8 Duringthe year 2009-10, the Corporation had made a simultaneous issue ofZero Coupon Secured Redeemable Non-Convertible Debentures (ZCD) aggregating to Rs 4,000 crores and 1,09,53,706 warrants at a issue price of Rs 275 per warrant aggregating to Rs 301.23 crores. Each of the warrants entitled the holder to acquire one equity share of the Corporation at an exercise price of Rs 3,000 per share of face value of Rs 10 each (now exercise price of Rs 600 per share of face value of Rs 2 each) on or before August 23, 2012. The said issue of ZCD and Warrants was made under Chapter Xlll-A of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. The Subscription amount received on Issue of warrants has been transferred from Capital Reserve to Securities Premium Account as the same is not refundable/adjustable in future.

4. LONG-TERM BORROWINGS

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Bonds and Debentures [Refer Notes 4.3 & 4.11] 59,503.10 43,691.40
Term Loans :
- Banks [Refer Note 4.11] 5,454.30 10,183.17
- Others [Refer Note 4.11] 1,393.58 1,411.96
Sub Total 66,350.98 55,286.53
Deposits [Refer Note 4.3] 23,654.03 19,551.21
Total 90,005.01 74,837.74

4.1 Long-term borrowings are further sub-classified as follows :

Sr. No. Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Long term borrowings - Secured : [Refer Note 4.2]
a) Bonds and Debentures
- Bonds 57.50 62.50
- Non Convertible Debentures 55,970.60 40,153.90
Sub-Total 56,028.10 40,216.40
b) Term Loans from Banks
- Scheduled Banks 4,855.00 8,850.17
Sub-Total 4,855.00 8,850.17
c) Term Loans from other parties
- Asian Development Bank [Refer Note 4.4] 276.75 296.61
- Kreditanstalt fur Wiederaufbau 10.65 20.70
- National Housing Bank 1,072.04 1,055.51
1,359.44 1,372.82
Total Secured 62,242.54 50,439.39
Long term borrowings - Unsecured:
a) Bonds and Debentures
- Non Convertible Subordinated Debentures [Refer Note 4.10] 3,475.00 3,475.00
b) Term Loans from Banks
- Scheduled Banks 599.30 1,333.00
c) Term Loans from other parties
- Under a line from Kreditanstalt fur Wiederaufbau 34.14 39.14
Deposits [Refer Note 4.8] 23,654.03 19,551.21
Total Unsecured: 27,762.47 24,398.35
Total 90,005.01 74,837.74

4.2 All secured Long term borrowings are secured by negative lien on the assets of the Corporation and mortgage of property.

4.3 Non-Convertible Debentures includes Rs 625.00 crores (Previous Year Rs 580.00 crores) and Deposits includes Rs 3.01 crores (Previous Year Rs 1.34 crores) from related parties [Refer Note 35].

4.4 The Corporation has availed a loan of USD 100 million from the Asian Development Bank (Loan II). In respect of tranches 1 and 2 aggregatingto USD 60 million, as perthe agreements with a scheduled bank, the Corporation has handed over the dollar funds to the bank overseas and has obtained rupee funds in India amounting to Rs 200 crores by way of a term loan and Rs 100 crores through the issue of bonds which have been subscribed by the bank.

In respect of tranche 3 of USD 40 million, as per the agreement with a financial institution, the Corporation has handed over the dollars to a financial institution overseas and under a back-to-back arrangement obtained rupee funds in India. All payments in foreign currency are the responsibility of the financial institution. In terms of the agreements, the Corporation's foreign exchange liability is protected.

4.5 The Corporation had availed USD 175 million under the Foreign Currency Borrowing scheme of the Reserve Bank of India (RBI) under the "approval route" in terms of the RBI Press Release No. 2008-2009/700 dated November 17, 2008, with a maturity of three years. In terms of the RBI guidelines, these borrowings have been swapped into rupees for the entire maturity by way of principal only swaps. The said loans have been fully repaid in the current year [Refer Note 9.1].

4.6 As on March 31, 2013, the Corporation has foreign currency borrowings of USD 632.96 million equivalent (Previous Year USD 875.78 million). The Corporation has undertaken currency swaps, principal only swaps, currency options and forward contracts on a notional amount of USD 286.75 million equivalent (Previous Year USD 406.76 million) to hedge the foreign currency risk. Further, interest rate swaps on a notional amount of USD 130 million equivalent (Previous Year USD 123 million) are outstanding, which have been undertaken to hedge the interest rate risk on the foreign currency borrowings. As on March 31, 2013, the Corporation's net foreign currency exposure on borrowings net of risk management arrangements is USD Nil (Previous Year USD Nil).

As a part of asset liability management on account of the Corporation's Adjustable Rate Home Loan product as well as to reduce the overall cost of borrowings, the Corporation has entered into interest rate swaps wherein it has converted its fixed rate rupee liabilities of a notional amount of Rs 21,185 crores (Previous Year Rs 25,210 crores) as on March 31, 2013 for varying maturities into floating rate liabilities linked to various benchmarks. In addition, the Corporation has entered into cross currency swaps of a notional amount of USD 476.45 million equivalent (Previous Year USD 588.07 million) wherein it has converted its rupee liabilities into foreign currency liabilities and the interest rate is linked to the benchmarks of respective currencies.

4.7 Monetary assets and liabilities denominated in foreign currencies net of risk management arrangement are revalued at the rate of exchange prevailing at the year end. Cross Currency Interest Rate Swaps are recorded by marking the foreign currency component to spot rates.

For Forward contracts or instruments that are in substance, forward exchange contracts, the premiums on such contracts are being amortised over the life of contracts. The amount of exchange difference in respect of such contracts to be recognised as expense in the Statement of Profit and Loss over subsequent accounting periods is Rs 29.90 crores (Previous Year Rs Nil).

4.8 Public deposits as defined in Paragraph 2(l)(y) of the Housing Finance Companies (NHB) Directions, 2010, are secured by floating charge on the Statutory Liquid Assets maintained in terms of sub-sections (1) & (2) of Section 29B of the National Housing Bank Act, 1987.

4.9 Pursuant to the notification dated December 29, 2011 issued by the Ministry of Corporate Affairs amending the Accounting Standard 11, the Corporation has exercised the option as per Para 46A inserted in the Standard for all long term monetary assets and liabilities. Consequently, an amount of Rs 169.79 crores (without considering future tax benefit of Rs 57.71 crores) [Previous Year Rs 206.24 crores (without considering the future tax benefit of Rs 66.90 cores)] representingtranslation difference is carried forward in the Foreign Currency Monetary Item Translation Difference Account as on March 31, 2013. This amount is to be amortised over the period of the monetary assets/liabilities.

4.10 During the year, the Corporation raised Rs Nil (Previous Year Rs 1000 crores) through issue of Long Term Unsecured Redeemable Non-Convertible Debentures (subordinated debt). As at March 31, 2013, the Corporation's outstanding subordinated debt is Rs 3,475 crores (Previous Year Rs 3,475 crores). These debentures are subordinated to present and future senior indebtedness of the Corporation and qualifies as Tier II capital under National Housing Bank (NHB) guidelines for assessing capital adequacy. Based on the balance term to maturity as at March 31, 2013, 85.90% (Previous Year 91.51%) of the book value of the subordinated debt is considered as Tier II capital for the purpose of capital adequacy computation.

4.11 Terms of redemption of bonds and debentures and for repayment terms of term loans:

A) Bonds and Debentures

Bonds & Debentures - Secured

Maturities - 1-3 years 3-5 years > 5 years TOTAL
Rates of Interest
6.03% - 8% 2,830.60 800.00 - 3,630.60

(2,383.30)

(1,380.60)

(500.00)

(4,263.90)

8.01% - 10% 20,000.00 13,555.00 9,335.00 42,890.00

(7,345.00)

(7,260.00)

(10,245.00)

(24,850.00)

10.01% - 11.95% - 2,205.00 4,200.00 6,405.00

-

(1,085.00)

(5,320.00)

(6,405.00)

450.00 2,490.00 2,940.00
Zero Coupon

(1,900.00)

(2,630.00)

-

(4,530.00)
Variable Rate
- Linked to G Sec 116.00 12.30 34.20 162.50

(10.25)

(116.75)

(40.50)

(167.50)

TOTAL - SECURED A 23,396.60 19,062.30 13,569.20 56,028.10
A

(11,638.55)

(12,472.35)

(16,105.50)

(40,216.40)

Bonds & Debentures - Unsecured

Maturities 1-3 years 3-5 years > 5 years TOTAL
Rates of Interest
7.62% - 9.5% 500.00 475.00 2,500.00 3,475.00

-

(975.00)

(2,500.00)

(3,475.00)

TOTAL - UNSECURED B 500.00 475.00 2,500.00 3,475.00
B

-

(975.00)

(2,500.00)

(3,475.00)

TOTAL - (SECURED & UNSECURED) A+B 23,896.60 19,537.30 16,069.20 59,503.10
A+B

(11,638.55)

(13,447.35)

(18,605.50)

(43,691.40)

B) Term Loans from Banks

Term Loans from Banks - Secured

Maturities 1-3 years 3-5 years > 5 years TOTAL
Rates of Interest
Term Loans from Scheduled Banks - Rupee
7.01% - 9% 323.00 - - 323.00

(557.00)

(323.00)

-

(880.00)

9.01% - 10.75% 1,032.00 2,400.00 1,100.00 4,532.00

(2,755.00)

(1,000.00)

(4,000.00)

(7,755.00)

Term Loans from Scheduled Banks - Foreign Currency
USD LIBOR + 450 bps to 600 bps - - - -

(215.17)

-

-

(215.17)

TOTAL - SECURED A 1,355.00 2,400.00 1,100.00 4,855.00
A

(3,527.17)

(1,323.00)

(4,000.00)

(8,850.17)

Term Loans from Banks - Unsecured
Maturities 1-3 years 3-5 years > 5 years TOTAL
Rates of Interest
Term Loans from Scheduled Banks - Rupee 10.50% - - - -

(650.00)

-

-

(650.00)

Term Loans from Scheduled Banks - Foreign Currency
USD LIBOR + 325 bps - 599.30 - 599.30

(111.00)

(572.00)

-

(683.00)

TOTAL UNSECURED B - 599.30 - 599.30
B

(761.00)

(572.00)

-

(1,333.00)

TOTAL (SECURED & UNSECURED) A+B 1,355.00 2,999.30 1,100.00 5,454.30
A+B

(4,288.17)

(1,895.00)

(4,000.00)

(10,183.17)

C) Term loans from other Parties

Term Loans from Other parties - Secured

Maturities - 1-3 years 3-5 years > 5 years TOTAL
Rates of Interest
Asian Development Bank
USD LIBOR + 40 bps 11.86 13.42 36.94 62.22

(10.47)

(11.83)

(41.15)

(63.45)

Variable linked to Bank PLR 21.93 24.80 68.30 115.03

(20.62)

(23.32)

(81.08)

(125.02)

Variable linked to G Sec 18.97 21.45 59.08 99.50

(17.84)

(20.17)

(70.13)

(108.14)

Kreditanstalt fur Wiederaufbau 1.70% 10.65

-

-

10.65

(20.70)

(20.70)

National Housing Bank 6% - 8% 202.14 174.20 61.22 437.56

(169.15)

(125.01)

(50.69)

(344.85)

8.01% - 10% 348.21 112.24 80.14 540.59

(226.29)

(78.80)

-

(305.09)

10.01% - 10.20% 93.89 - - 93.89

(405.57)

-

-

(405.57)

TOTAL SECURED A 707.65 346.11 305.68 1,359.44
A

(870.64)

(259.13)

(243.05)

(1,372.82)

Term Loans from Other parties - Unsecured

Maturities - 1-3 years 3-5 years > 5 years TOTAL
Rates of Interest
Kreditanstalt fur Wiederaufbau 6% 31.14 3.00 34.14

(21.70)

(17.44)

-

(39.14)

TOTAL UNSECURED B 31.14 3.00 - 34.14
B

(21.70)

(17.44)

-

(39.14)

TOTAL (SECURED & UNSECURED) A+B 738.79 349.11 305.68 1,393.58
A+B

(892.34)

(276.57)

(243.05)

(1,411.96)

5. OTHER LONG TERM LIABILITIES

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Amounts payable on swaps [Refer Note 4.7] 486.08 459.60
Interest accrued but not due on borrowings 947.42 518.81
Security and other deposits received 13.11 12.76
Income received in advance 29.35 22.04
Accrued Redemption Loss on Investments 19.27 25.16
Total 1,495.23 1,038.37

6. LONG TERM PROVISIONS

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Provision for Employee Benefits [Refer Note 27.3] 33.98 28.65
Provision for Contingencies [Refer Notes 6.1 & 6.2] 1,265.24 1,218.09
Provision for premium payable on redemption of Debentures 315.34 255.70
Total 1,614.56 1,502.44

6.1 Provision for Contingencies includes provisions for standard assets and all other contingencies. As per National Housing Bank Circular No. NHB/HFC/DIR.3/CMD/2011 dated August 5, 2011, and NHB/HFC/DIR.4/CMD/2012 dated January 19, 2012, in addition to provision for non-performing assets, all housing finance companies are required to carry a general provision. (i) at the rate of 2% on housing loans disbursed at comparatively lower rate of interest in the initial few years, after which rates are reset at higher rates; (ii) at the rate of 1% of Standard Assets in respect of Commercial Real Estates and (iii) at the rate of 0.40% of the total outstanding amount of loans which are Standard Assets other than (i) & (ii) above.

Accordingly, the Corporation is required to carry a minimum provision of Rs 1,119.48 crores (Previous Year Rs 1,075.82 crores) towards standard assets.

6.2 Movement in Provision for Contingencies Account during the year is as under: [Refer Note 32.2]

Particulars Current Year Previous Year
Opening Balance 1,218.09 803.94
Additions during the year [Refer Note 3.2] 54.24 439.36
Utilised during the year - towards Diminution in Value of Investments [Refer Note 30.2] (7.09) (25.21)
Closing Balance 1,265.24 1,218.09

7. SHORT-TERM BORROWINGS

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Loans repayable on demand:
- From Banks - Unsecured 259.27 4.94
Deposits - Unsecured [Refer Note 7.2] 5,655.57 2,031.53
Other Loans and Advances:
- Scheduled Banks - Secured 3,285.00 14,325.00
- National Housing Bank - Secured 36.85 134.77
- Commercial Papers - Unsecured 9,550.00 4,650.00
12,871.85 19,109.77
Total 18,786.69 21,146.24

7.1 Secured short term borrowing are secured by negative lien on the assets of the Corporation.

7.2 Deposits includes Rs 21.53 crores (Previous Year Rs 249.17 crores) due from related parties [Refer Note 35].

8. TRADE PAYABLES

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Amounts payable on swaps [Refer Note 4.7] 33.91 154.83
Others 26.89 23.89
Total 60.80 178.72

8.1 Trade Payables include Rs Nil (Previous Year Rs Nil) payable to "Suppliers" registered under the Micro, Small and Medium Enterprises Development Act, 2006. No interest has been paid/payable by the Corporation during the year to the "Suppliers" covered under the Micro, Small and Medium Enterprises Development Act, 2006. The above information takes into account only those suppliers who have responded to inquiries made by the Corporation for this purpose.

8.2 Trade Payables include Rs Nil (Previous Year Rs 0.09 crores) being amount payable to HDFC Provident Fund Trust towards deficiency in the fund account.

8.3 As required under Section 205C of the Companies Act, 1956, the Corporation has transferred Rs 1.11 crores (Previous Year Rs 0.79 crores) to the Investor Education and Protection Fund (IEPF) during the year. As of March 31, 2013, no amount was due for transfer to the IEPF.

9. OTHER CURRENT LIABILITIES

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Current maturities of long-term borrowings 50,036.41 43,143.52
Interest accrued but not due on borrowings 4,254.18 2,825.95
Interest accrued and due on matured deposits 33.10 27.36
Income and other amounts received in advance 223.72 168.62
Unclaimed dividend 11.61 9.68
Unclaimed matured deposits and interest accrued thereon 310.11 276.50
Other payables
- Statutory Remittances 173.86 67.47
- Grants received from Kreditanstalt fur Wiederaufbau 164.78 140.90
- Amounts payable - Securitised Loans 449.39 458.11
- Amounts payable to Gratuity Fund 6.34 2.96
- Amounts payable Interest Rate Swaps 68.17 78.70
- Accrued redemption loss on Investments 9.40 3.31
- Others 24.80 25.24
5,729.46 4,084.80
Total 55,765.87 47,228.32

9.1 Current maturities of Long term borrowings are further sub-classified as under:

Sr. No. Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Current maturities of long-term borrowings - Secured
(i) Bonds and Debentures
- Bonds 5.00 4.70
- Non Convertible Debentures 20,013.30 13,792.00
(ii) Term Loans from Banks
- Scheduled Banks 4,885.24 11,851.95
- Short Term Foreign Currency Borrowing [Refer Note 4.5] - 831.00
(iii) Term Loans from other parties
- Asian Development Bank 24.05 22.30
- Kreditanstalt fur Wiederaufbau 10.65 10.35
- National Housing Bank 369.14 438.50
Total Secured : 25,307.38 26,950.80
Current maturities of long-term borrowings - Unsecured
(i) Scheduled Banks 2,100.81 1,480.63
(ii) Term Loans from other parties - -
- Under a line from Kreditanstalt fur Wiederaufbau 5.00 2.03
(iii) Deposits [Refer Note 7.2] 22,623.22 14,710.06
Total Unsecured: 24,729.03 16,192.72
Total 50,036.41 43,143.52

9.2 Current maturities of long term borrowings are secured by negative lien on all assets of the Corporation and mortgage of property.

9.3 Current maturities of Non-Convertible Debentures includes Rs 95.00 crores (Previous Year Rs 25.00 crores) and Deposits includes Rs 2.69 crores (Previous Year Rs 2.98 crores) from related parties [Refer Note 35].

10. SHORT-TERM PROVISIONS

Particulars March 31, 2013 March 31, 2012
Rs in Crores Rs in Crores
Provision for Employee benefits [Refer Note 27.3] 76.01 64.25
Provision for premium payable on redemption of Debentures 402.62 557.39
Provision for Tax (Net of Advance Tax) 62.53 60.66
Proposed Dividend 1,932.93 1,624.67
Additional Tax on Dividend 328.50 263.56
Total 2,802.59 2,570.53

11. TANGIBLE ASSETS

GROSS BLOCK

DEPRECIATION AND AMORTISATION

NET BLOCK

As at March 31, 2012 Additions Deductions As at March 31, 2013 As at March 31 2012 For the Year Deductions As at March 31, 2013 As at March 31 2013 As at March 31, 2012
Land :
- Freehold 15.70 15.70 - 15.70 15.70
- Leasehold 3.45 3.45 0.57 0.04 0.61 2.84 2.88
Buildings :
- Own Use 211.07 0.05 0.04 211.08 39.02 3.44 0.02 42.44 168.64 172.05
- Leasehold Improvements 13.39 3.16 0.52 16.03 9.12 2.03 0.47 10.68 5.35 4.27
Computer Hardware 56.68 6.26 1.71 61.23 47.64 5.85 1.70 51.79 9.44 9.04
Furniture and Fittings:
- Own Use 49.18 3.84 0.40 52.62 39.48 3.02 0.35 42.15 10.47 9.70
- Under Operating Lease 0.71 0.71 0.60 0.02 0.62 0.09 0.11
Office Equipment etc.:
- Own Use 42.86 4.45 0.95 46.36 28.28 2.85 0.71 30.42 15.94 14.58
- Under Operating Lease 0.79 0.79 0.63 0.02 0.65 0.14 0.16
Vehicles :
- Owned 10.32 2.19 1.39 11.12 6.33 1.52 1.08 6.77 4.35 3.99
Leased Assets :
- Plant & Machinery * 129.18 129.18 129.18 129.18 -
- Vehicles * 16.37 16.37 16.37 16.37 -
Total 549.70 19.95 5.01 564.64 317.22 18.79 4.33 331.68 232.96 232.48
Previous Year 542.02 18.55 10.87 549.70 310.17 17.13 10.08 317.22 232.48 231.85

* Assets held for disposal

Notes :

1) Buildings include Rs 0.01 crore (Previous Year Rs 0.01 crore) being the cost of shares in Co-operative Housing Societies and Limited Companies.

2) Depreciation charge for the financial year, excludes Rs 2.42 crores (Previous Year Rs 2.42 crores) being depreciation charge on investment in Properties.

12. INTANGIBLE ASSETS:

GROSS BLOCK

DEPRECIATION AND AMORTISATION

NET BLOCK

As at March 31, 2012 Additions Deductions As at March 31, 2013 As at March 31 2012 For the Year Deductions As at March 31, 2013 As at March 31, 2013 As at March 31, 2012
Computer Software 5.88 5.89 - 11.77 4.41 2.38 - 6.79 4.98 1.47
Previous Year 5.52 0.36 - 5.88 3.42 0.99 - 4.41 1.47 2.10

13. NON-CURRENT INVESTMENTS (At Cost)

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Trade Investments :
Equity Shares - Subsidiaries and Associate Companies 8,217.70 8,181.42
Preference Shares - Convertible - Subsidiary Company 85.00 65.00
Debentures - Redeemable - Subsidiary Company 30.00 -
Debentures - Convertible - Associate Company - 2.00
Venture Funds 176.80 627.22
Non Trade Investments :
Equity Shares 772.07 877.44
Preference Shares - Convertible 0.50 0.50
Preference Shares - Cumulative Redeemable 5.99 5.99
Debentures and Bonds - Redeemable - for Financing Real Estate Projects 163.33 163.33
Debentures and Bonds - Redeemable - Others 59.98 53.98
Pass Through Certificates and Security Receipts - for Financing Real Estate Projects 48.77 56.72
Security Receipts - Others 22.28 15.15
Government Securities 2,762.58 1,751.14
Mutual Funds 5.00 20.00
Venture Funds 110.80 100.33
Properties [Net of Depreciation of Rs 15.86 crores (Previous Year Rs 13.48 crores)] 141.54 144.18
12,602.34 12,064.40
Less : Provision for Diminution in Value of Investments 70.48 52.84
12,531.86 12,011.56

 

Book Value Market Value
Rs in Crores Rs in Crores
Aggregate of Quoted Investments 5,982.39 27,365.06
Previous Year 6,093.72 22,768.95
Aggregate of Investments listed but not quoted 2,925.91
Previous Year 1,914.46
Aggregate of Investments in Unquoted Mutual Funds 5.00 5.02
(Refer Note 2 below)
Previous Year 17.00 16.52
Aggregate of Unquoted Investments (Others) 3,477.02
Previous Year 3,842.20
Properties 141.54
Previous Year 144.18
12,531.86
Previous Year 12,011.56

Trade Investments

Number

of Shares

Face Value per Share Rs As at March 31, 2013 Rs in Crores Number

of Shares

Face Value per Share Rs As at March 31, 2012 Rs in Crores
Equity Shares - Subsidiaries and Associate Companies (fully paid)
Subsidiaries
Credila Financial Services Pvt. Ltd. 1,89,38,670 10 22.97 1,89,38,670 10 22.97
GRUH Finance Ltd. * 10,65,38,925 2 60.74 2,13,07,785 10 60.74
HDFC Asset Management Co. Ltd. 1,50,96,600 10 235.88 1,50,96,600 10 235.88
HDFC Developers Ltd. 50,000 10 0.05 50,000 10 0.05
HDFC Education and Development Services Pvt. Ltd. 51,00,000 10 5.10 31,00,000 10 3.10
HDFC ERGO General Insurance Co. Ltd. 39,06,40,750 10 597.30 38,70,20,000 10 574.73
HDFC Holdings Ltd. 18,00,070 10 102.40 18,00,070 10 102.40
HDFC Investments Ltd. 2,66,70,500 10 66.15 2,66,70,500 10 66.15
HDFC Property Ventures Ltd. 10,00,000 10 1.00 10,00,000 10 1.00
HDFC Realty Ltd. 77,50,070 10 7.31 57,50,070 10 5.31
HDFC Sales Pvt. Ltd. 40,10,000 10 4.02 40,10,000 10 4.02
HDFC Standard Life Insurance Co. Ltd. 144,37,33,842 10 1,545.64 144,37,33,842 10 1,545.64
HDFC Trustee Co. Ltd. 1,00,000 10 0.10 1,00,000 10 0.10
HDFC Venture Capital Ltd. 4,02,500 10 0.40 4,02,500 10 0.40
HDFC Ventures Trustee Co. Ltd. 50,000 10 0.05 50,000 10 0.05
H T Parekh Foundation 1,00,09,990 10 10.01
2,659.12 2,622.54
Associate Companies
HDFC Bank Ltd. * 39,32,11,100 2 5,549.74 39,32,11,100 2 5,549.74
IPFonline Ltd. 3,79,860 10 6.31 3,79,860 10 6.31
India Value Fund Advisors Pvt. Ltd. 9,75,002 4 0.03 9,75,002 4 0.03
Indian Association for Savings and Credit - 2,99,930 10 0.30
RuralShores Business Services Pvt. Ltd. 4,76,351 10 2.50 4,76,351 10 2.50
5,558.58 5,558.88
8,217.70 8,181.42

* listed shares

Preference Shares - Convertible - Subsidiary Company (fully paid)

0.01% Credila Financial Services Pvt. Ltd. (Compulsorily Fully Convertible Preference Shares) 4,99,99,972 10 50.00 2,99,99,992 10 30.00
0.01% Credila Financial Services Pvt. Ltd. (Optionally Fully Convertible Preference Shares) 3,49,99,984 10 35.00 3,49,99,984 10 35.00
85.00 65.00

 

Number of Debentures/ Face Value per Debenture/ Bond As at March 31, 2013 Number of Debentures/ Face Value per Debenture/ Bond As at March 31, 2012
Bonds (Rs) Rs in Crores Bonds (Rs) Rs in Crores
Debentures - Redeemable - Subsidiary Company (fully paid)
12.75% Credila Financial Services Pvt. Ltd. 100 10,00,000 10.00
12.75% Credila Financial Services Pvt. Ltd. 100 10,00,000 10.00
12.75% Credila Financial Services Pvt. Ltd. 100 10,00,000 10.00
30.00
Debentures - Convertible - Associate Company
- Redeemable (fully paid)
6.50% Indian Association for Savings
and Credit (Compulsorily Fully
Convertible Debentures) - 20,00,000 10 2.00
- 2.00

 

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Venture Funds
HDFC Investment Trust 176.80 176.80
HDFC Property Fund - Scheme IT Corridor Fund - 450.42
176.80 627.22

Non-Trade Investments

Number of Shares Face Value per Share Rs As at March 31, 2013 Rs in Crores Number of Shares Face Value per Share Rs As at March 31, 2012 Rs in Crores
Equity Shares (fully paid)
Unlisted :
AEC Cements and Constructions Ltd. 2,80,000 10 0.28 2,80,000 10 0.28
Avantha Power & Infrastructure Ltd. 1,45,35,188 10 45.00 1,40,62,500 10 45.00
Asset Reconstruction Co. (India) Ltd. 75,41,137 10 46.37 75,41,137 10 46.37
Career Launcher Education Infrastructure & Services Ltd. 9,38,028 10 21.18 9,38,028 10 21.18
Computer Age Management Services Pvt. Ltd. 73,57,080 10 2.05 73,57,080 10 2.05
Credit Information Bureau (India) Ltd. 12,50,000 10 1.25 12,50,000 10 1.25
Feedback Ventures Pvt. Ltd. 18,10,515 10 8.97 18,10,515 10 8.97
GVFL Ltd. 1,50,000 10 0.27 1,50,000 10 0.27
Idhasoft Ltd. 4,71,06,525 1 8.21 4,71,06,525 1 8.21
INCAB Industries Ltd. 76,188 10 0.23 76,188 10 0.23
Infrastructure Development Corporation (Karnataka) Ltd. 1,50,000 10 0.15 1,50,000 10 0.15
Infrastructure Leasing & Financial Services Ltd. 1,15,87,194 10 78.11 1,23,87,194 10 83.50
IVF Advisors Pvt. Ltd. 2,000 10 0.01 2,000 10 0.01
Kesoram Textile Mills Ltd. 22,258 2 - 22,258 2 -
(received on demerger in 1999-2000)
Mahindra First Choice Wheels Ltd. 31,82,000 10 4.84 31,82,000 10 4.84
MIEL e-Security Pvt. Ltd. 1,11,112 10 4.11 1,11,112 10 4.11
National Stock Exchange of India Ltd. 73,750 10 21.45 73,750 10 21.45
Next Gen Publishing Ltd. 19,35,911 10 1.70 19,35,911 10 1.70
Novacel Life Sciences Ltd. 7,50,000 10 0.75 7,50,000 10 0.75
New India Co-operative Bank Ltd. * 250 10 0.00 250 10 0.00
OCM India Ltd. 22,56,295 10 3.41 22,56,295 10 3.41
PPN Power Generating Co. Pvt. Ltd. 34,25,953 100 35.37 34,25,953 100 35.37
Tamil Nadu Urban Infrastructure Financial Services Ltd. 1,50,000 10 0.15 1,50,000 10 0.15
Tamil Nadu Urban Infrastructure Trustee Co. Ltd. 15,000 10 0.02 15,000 10 0.02
The Greater Bombay Co-operative Bank Ltd. * 40 25 0.00 40 25 0.00
The Ratnakar Bank Ltd. 88,04,680 10 58.99 88,04,680 10 58.99
TVS Credit Services Ltd. 50,00,000 10 10.00 50,00,000 10 10.00
Value & Budget Housing Corporation (India) Pvt. Ltd. 6,52,674 10 20.95 6,52,674 10 20.95
Vayana Enterprises Pvt. Ltd. 10,44,776 10 3.47 10,44,776 10 3.47
377.29 382.68
Listed :
Axis Bank Ltd. 92,000 10 11.61 92,000 10 11.61
Andhra Cements Ltd. 2,59,57,055 10 49.82 2,59,57,055 10 49.82
BASF India Ltd. 1,89,635 10 12.74 - - -
Bajaj Auto Ltd. - - - 21,000 10 2.95
Bharat Bijlee Ltd. 1,22,480 10 2.65 1,22,480 10 2.65
Bharat Heavy Electricals Ltd. - - - 7,41,930 2 16.22
Credit Analysis and Research Ltd. 2,422 10 0.18 - - -
Castrol India Ltd. 2,71,970 10 4.69 1,35,985 10 4.69
Chambal Fertilizers & Chemicals Ltd. - - - 13,30,831 10 2.02
Coromandel International Ltd. (received under Scheme of Arrangement in 2003-04) 2,69,330 2 - 2,69,330 2 -
Crompton Greaves Ltd. 1,68,750 2 4.27 1,68,750 2 4.27
Development Credit Bank Ltd. 40,47,926 10 16.89 40,47,926 10 16.89
Engineers India Ltd. 3,11,992 5 10.86 3,11,992 5 10.86
GlaxoSmithKline Consumer Healthcare Ltd. - - - 17,902 10 4.21
Grasim Industries Ltd. 35,000 10 10.86 - - -
Hindustan Oil Exploration Co. Ltd. 1,48,26,303 10 105.50 1,48,26,303 10 105.50
Indian Oil Corporation Ltd. 1,51,000 10 4.94 1,51,000 10 4.94
Indraprastha Medical Corporation Ltd. 90,00,000 10 38.65 90,00,000 10 38.65
Infosys Technologies Ltd. 33,000 5 9.69 33,000 5 9.69
IDFC Ltd. (Erstwhile Infrastructure Development Finance Co. Ltd.) 1,70,00,000 10 17.00 2,00,00,000 10 20.00
ITC Ltd. 2,51,000 1 4.07 5,51,000 1 8.94
Larsen & Toubro Ltd. - - - 2,90,000 2 23.44
Mahindra & Mahindra Ltd. 3,15,000 5 5.87 15,10,000 5 28.15
Nestle India Ltd. 8,200 10 3.49 8,200 10 3.49
Nirlon Ltd. 9,09,000 10 5.00 9,09,000 10 5.00
NMDC Ltd. 1,66,660 1 5.00 1,66,660 1 5.00
Oil & Natural Gas Corporation Ltd. 2,10,000 5 6.97 2,10,000 5 6.97
Reliance Industries Ltd. 1,41,169 10 14.36 1,41,169 10 14.36
Rural Electrification Corporation Ltd. - - - 2,62,994 10 5.35
Shipping Corporation of India Ltd. 1,28,439 10 1.80 1,28,439 10 1.80
Siemens Ltd. 10,43,100 2 36.83 12,43,100 2 43.88
State Bank of India 15,000 10 3.15 1,50,842 10 13.70
Tata Consultancy Services Ltd. - - - 1,27,995 1 5.63
Tata Steel Ltd. 1,36,448 10 7.90 1,36,448 10 7.90
Tata Motors Ltd. - DVR - - - 7,90,550 2 9.80
The Great Eastern Shipping Co. Ltd. - - - 6,40,000 10 2.48
Wipro Ltd. - - - 1,01,910 2 3.90
394.79 494.76
772.08 877.44

* Amount less than Rs 50,000

Number of Shares Face Value per Share Rs As at March 31, 2013 Rs in Crores Number of Shares Face Value per Share Rs As at March 31, 2012 Rs in Crores
Preference Shares - Convertible - (fully paid)
0.02% Ziqitza Healthcare Ltd.
(Compulsorily Fully Convertible Preference Shares) 2,350 10 0.50 2,350 10 0.50
0.50 0.50
Preference Shares - Cumulative Redeemable (fully paid)
0.001% BPL Ltd. 5,99,014 100 5.99 5,99,014 100 5.99
5.99 5.99
Debentures and Bonds - Redeemable
- for financing Real Estate Projects (fully paid)
- Zero Coupon Bonds
- Listed Unquoted
NHB Sumeru Zero Coupon Bonds (Refer Note 3 below) (yield to maturity - 9%) 1,50,000 10,000 63.33 1,50,000 10,000 63.33
Trent Ltd. (yield to maturity - 10%) 1,000 10,00,000 100.00 1,000 10,00,000 100.00
163.33 163.33
Debentures and Bonds - Redeemable -Others (fully paid)
Unlisted
- Others
5.64% Mandava Holdings Private Limited (yield to maturity - 14.10%) 8 5,00,00,000 39.98 8 5,00,00,000 39.98
3% Feedback Infrastructure Services Pvt. Ltd. (yield to maturity -13%) 2,00,000 1,000 20.00 1,40,000 1,000 14.00
59.98 53.98

 

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Pass Through Certificates & Security Receipts
- for financing Real Estate Projects
Pass Through Certificates 28.80 36.75
Security Receipts 19.97 19.97
48.77 56.72
- Others
Security Receipts 22.28 15.15
22.28 15.15
Government Securities
Government of India Loans 2,762.58 1,751.14
Schemes of Mutual Funds
Axis Mutual Fund 0.00 2.00
DSP Blackrock Mutual Fund 0.00 5.00
Reliance Mutual Fund 0.00 5.00
M50 Exchange Traded Fund 0.00 3.00
HDFC Mutual Fund 5.00 5.00
5.00 20.00
Venture Funds
Faering Capital India Evolving Fund 11.54 7.20
Gaja Capital India Fund 8.10 6.10
HDFC Property Fund - Scheme HDFC India Real Estate Fund 37.90 40.60
India Value Fund 38.85 36.23
India Venture Trust 4.85 4.85
Kaizen Trust 4.50 1.50
Tata Capital Growth Fund 5.06 3.85
110.80 100.33

Notes :

1) Unquoted investments include Rs 14.03 crores (Previous Year Rs 22.20 crores) in respect of equity shares, which are subject to a lock-in period and include Rs 20.95 crores (Previous Year Rs 20.95 crores) in respect of equity shares, which are subject to restrictive covenant. Quoted investments include Rs Nil (Previous Year Rs 4,013.97 crores) in respect of equity shares which are subject to a lock-in period and include Rs 60.74 crores (Previous Year Rs 60.74 crores) in respect of equity shares, which are subject to restrictive covenant.

2) Market value of Investments in Unquoted Mutual Funds represents the repurchase price of the units issued by the Mutual Funds.

3) NHB Sumero Zero Coupon Bonds are held as Capital Assets under Section 2(48) of the Income Tax Act, 1961.

14. DEFERRED TAX ASSET

In compliance with the Accounting Standard relating to 'Accounting for Taxeson Income' (AS22), notified bythe Companies (Accounting Standards) Rules, 2006, the Corporation has taken credit of Rs 3.18 crores (Previous Year Rs 12 crores) in the Statement of Profit and Loss for the year ended March 31, 2013 towards deferred tax asset (net) for the year, arising on account of timing differences and Rs NIL. (Previous Year Rs 168.07 crores) has been adjusted against the utilisation from Additional Reserve u/s 29C as per Note no. 3.2.

The major components of deferred tax assets and liabilities are:

Particulars

Assets

Liabilities

Current Year Previous Year Current Year Previous Year
a) Depreciation 49.82 49.44
b) Provision for Contingencies 630.67 572.41
c) Provision for Employee Benefits 26.12 20.42
d) Accrued Redemption Loss (net) 9.74 9.23
e) Others (net) 14.67 75.58
Total 681.20 677.64 49.82 49.44
Net Deferred Tax Asset 631.38 628.20

15. LONG-TERM LOANS AND ADVANCES

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Loans: [Refer Notes 15.3, 15.4 and 15.5]
Secured:
- Individuals 1,04,820.04 83,670.99
- Corporate Bodies 46,037.06 40,842.98
- Others 1,249.10 1,471.57
1,52,106.20 1,25,985.54
Less: Provision for Non-performing loans [Refer Note 6.1 and 15.7] (including additional provision made by the Corporation) (475.33) (452.89)
1,51,630.87 1,25,532.65
Others:
Corporate Deposits [Refer Notes 15.2 & 15.6] - 647.70
Capital Advances - Unsecured; considered good 11.45 4.30
Security Deposits - Unsecured; considered good 166.98 162.10
Instalments due from borrowers - Secured; considered good 79.17 73.77
Other Long-term Loans and Advances:
- Staff Loans Others - Secured; considered good (Refer Note 15.1) 14.75 10.99
- Prepaid Expenses - Unsecured; considered good 112.14 106.98
- Advance Tax (Net of Provision) 1,433.07 961.42
1,817.56 1,967.26
Total 1,53,448.43 1,27,499.91

15.1 Loans includes amounts due from the directors Rs 0.15 crores (Previous Year Rs 0.17 crores) [Refer Note 35].

15.2 Investments in Debentures, Pass Through Certificates, Security Receipts and Corporate Deposits amountingto Rs 212.10 crores (Previous Year Rs 865.05 crores) are towards financing Real Estate Projects. The Debentures, Pass Through Certificates and Security Receipts are reflected in Note 13.

15.3 Loans granted by the Corporation aggregating to Rs 1,50,256.20 crores (Previous Year Rs 1,24,368.87 crores) are secured or partly secured by:

(a) Equitable mortgage of property and/or

(b) Pledge of shares, units, other securities, assignment of life insurance policies and/or

(c) Hypothecation of assets and/or

(d) Bank guarantees, company guarantees or personal guarantees and/or

(e) Negative lien and/or

(f) Assignment of hire purchase receivables and/or

(g) Undertaking to create a security.

15.4 Loans include Rs 27.99 crores (Previous Year Rs 34.78 crores) in respect of properties held for disposal under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

15.5 Long term loans and advances includes non-performing loans of Rs 1,198.86 crores (Previous Year Rs 1,069.13 crores).

15.6 Out of the Corporate Deposits, amounts aggregating to Rs Nil (Previous Year Rs 645 crores) are secured.

15.7 Movement in Provision for Non-Performing Loans is as under: [Refer 32.2]

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Opening Balance 452.89 320.43
Additions during the year [Refer Note 3.2] 39.05 158.64
Utilised duringthe year - towards Loans written off (16.61) (26.18)
Closing Balance 475.33 452.89

16. OTHER NON-CURRENT ASSETS

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Unamortised discount on Non-Convertible Debentures 20.22 36.56
Receivables on Securitised Loans 246.14 122.51
Foreign Currency Monetary Items Translation Difference Account [Refer Note 4.9] 123.28 140.39
Interest accrued but not due on Loans 230.20 129.82
Interest accrued but not due on Bank Deposits 0.01 25.68
Income accrued but not due on Investments 45.13 16.53
Advance against Investment in Properties 52.43 54.52
Bank Deposits with maturities beyond twelve months from balance sheet date [Refer Note 16.1] 62.34 528.55
Total 779.75 1,054.56

16.1 Bank deposits with maturities beyond twelve months includes earmarked balances Rs 62.23 crores (Previous Year Rs 63.50 crores) against foreign currency loans.

17. CURRENT INVESTMENTS

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Held as Current Investments (At cost or market value whichever is lower unless stated otherwise)
Debentures and Bonds - Redeemable 45.00 144.03
Certificate of Deposits 522.99 -
Current maturities of Long Term Investments (at cost)
Debentures and Bonds - Redeemable 2.00 -
Security Receipts - 8.55
Government Securities 74.69 28.47
Venture Funds & Other Funds 437.06 25.09
1,081.74 206.13
Less : Provision for Diminution in Value of Investments 0.14 10.70
1,081.60 195.44

 

Book Value Market Value
Rs in Crores Rs in Crores
Aggregate of Quoted Investments 34.86 36.14
Previous Year 35.00 34.51
Aggregate of Investments listed but not quoted 84.69
Previous Year 48.47
Aggregate of Unquoted Investments (Others) 962.05
Previous Year 111.97
1,081.60
Previous Year 195.44

 

Number of Debentures/ Bonds Face Value per Debenture/ Bond (Rs) As at March 31, 2013 Rs in Crores Number of Debentures/ Bonds Face Value per Debenture/ Bond (Rs) As at March 31, 2012 Rs in Crores
Held as current investments
Debentures and Bonds - Redeemable (fully paid)
- Unlisted
11.50% Andhra Cements Ltd. - 35,00,000 100 35.00
0% Reliance Industries Ltd. - 4,31,617 100 4.32
11.50% Deccan Chronicle Holdings Ltd. 500 10,00,000 49.71
- Listed Unquoted
12.00% Cholamandalam DBS Finance Ltd. - 100 10,00,000 10.00
11.25% Development Credit Bank Ltd. 100 10,00,000 10.00 100 10,00,000 10.00
- Listed Quoted
9.00% Coromandel International Ltd. (bonus) 2,69,330 15 - - - -
12.00% Muthoot Finance Ltd. 2,50,000 1,000 25.00 2,50,000 1,000 25.00
12.15% Religare Finvest Ltd. 1,00,000 1,000 10.00 1,00,000 1,000 10.00
Total 45.00 144.03

 

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Certificate of Deposits
State Bank of Bikaner and Jaipur (yield to maturity - 14%) 99.58 -
Corporation Bank (yield to maturity - 14%) 248.95 -
Kotak Mahindra Bank Ltd. (yield to maturity - 14%) 174.46
522.99 -

 

Number of Debentures/ Bonds Face Value per Debenture/ Bond (Rs) As at March 31, 2013 Rs in Crores As at March 31, 2012 Rs in Crores
Current maturities of Long Term Investments
Debentures and Bonds - Redeemable (fully paid)
6.50% Indian Association for Savings and Credit 20,00,000 10 2.00 -
2.00 -

 

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Security Receipts - 8.55
- 8.55
Government Securities
Government of India Loans 74.69 28.47
Venture Funds and Other Funds
India Value Fund 11.06 8.37
Tamil Nadu Urban Development Fund 16.72 16.72
HDFC Property Fund - Scheme HDFC IT Corridor Fund 409.28 -
437.06 25.09

18. TRADE RECEIVABLES

As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Trade Receivables - Unsecured; Considered Good, less than six months 1.32 60.21
Total 1.32 60.21

19. CASH AND BANK BALANCES

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
(a) Cash and cash equivalents
(i) Balances with banks:
In Current Accounts 786.20 964.99
In Deposit accounts with original maturity less than 3 months 2,500.00 1,500.00
(ii) Balances with Reserve Bank of India - 0.06
(iii) Cash on hand 0.88 0.47
(iv) Cheques on hand 36.97 33.88
3,324.05 2,499.40
(b) Other Bank balances
(i) Earmarked balances with banks - Unclaimed dividend account 11.61 9.68
(ii) Other - Against Foreign Currency Loans [Refer Note 4.4] 5.41 4.76
(iii) Short-term bank deposits 2,410.07 2,959.01
Total 5,751.14 5,472.85

20. SHORT-TERM LOANS AND ADVANCES

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Loans: [Refer Note 20.1]
Current maturities of long-term loans and advances 17,939.97 14,889.04
Others:
Current maturities of Staff Loans others - Secured; Considered good 3.54 2.83
Corporate Deposits [Refer Notes 20.2, 20.3 & 20.5] 1,688.72 2,662.54
Instalments due from borrowers - Secured; Considered good 706.71 439.46
Other Advances - Unsecured; Considered good [Refer Note 20.4] 56.80 1,884.43
Security Deposits - Unsecured; Considered good 6.12 8.89
Others - Unsecured considered doubtful 49.71 -
2,511.60 4,998.15
Less : Provision for Doubtful Receivables [Refer Notes 3.2 & 32.2] 51.71

-

Sub Total 2,459.89 4,998.15
Total 20,399.86 19,887.19

20.1 Out of Current maturities of Long term loans and advances, amounts aggregating Rs 16,933.97 crores (Previous Year Rs 13,480.91 crores) are secured [Refer Note 15.3].

20.2 Out of the Corporate Deposits, amounts aggregating to Rs 1,192.42 crores (Previous Year Rs 2,101.44 crores) are secured and amounts aggregating to Rs 2 crores (Previous Year Rs Nil) considered as doubtful.

20.3 Corporate Deposits includes amounts due from the related parties Rs 10.00 crores (Previous Year Rs 29.10 crores) [Refer Note 35].

20.4 Other Advances includes amounts due from the related parties Rs 10.05 crores (Previous Year Rs 8.86 crores) [Refer Note 35].

20.5 Corporate Deposits amounting to Rs 834.66 crores (Previous Year Rs 2,108.44 crores) are towards financing Real Estate Projects.

20.6 Current maturities of staff loans includes amounts due from the directors Rs 0.02 crores (Previous Year Rs 0.02 crore) [Refer Note 35].

21. OTHER CURRENT ASSETS

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Foreign Currency Monetary Items Translation Difference Account [Refer Note 4.9] 46.51 65.85
Unamortised Discount on Commercial Paper 242.13 116.37
Receivables on Securitised Loans 18.04 3.47
Interest accrued but not due on Loans 160.45 119.44
Income accrued but not due on Investments 73.41 69.86
Interest accrued but not due on Deposits 125.93 101.08
Application money - Investments 1.00 -
Total 667.47 476.07

22. CONTINGENT LIABILITIES AND COMMITMENTS

22.1 Contingent Liability in respect of guarantees provided by the Corporation aggregated to Rs 203.00 crores (Previous Year Rs 783.95 crores).

22.2 Contingent liability in respect of income-tax demands, net of amounts provided for and disputed by the Corporation, amounts to Rs 818.73 crores (Previous Year Rs 606.17 crores). The matters in dispute are under appeal. The said amount has been paid/adjusted and will be received as refund if the matters are decided in favour of the Corporation.

22.3 Contingent Liability in respect of corporate undertakings provided by the Corporation for securitisation of receivables aggregated to Rs 1,939.31 crores (Previous Year Rs 1,940.13 crores). The outflows would arise in the event of a shortfall, if any, in the cash flows of the pool of the securitised receivables.

22.4 Contingent Liability in respect of disputed dues towards sales tax, wealth tax, interest on lease tax and payment towards employers' contribution to ESIC not provided for by the Corporation amounts to Rs 0.15 crores (Previous Year Rs 0.15 crores).

22.5 Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs 102.34 crores (Previous Year Rs 206.70 crores).

23. REVENUE FROM OPERATION

Current Year Previous Year
Rs in Crores Rs in Crores
Interest Income :
- Interest on Loans 18,944.11 15,248.42
- Other Interest [Refer Note 23.1] 873.06 800.53
- Net Gain/(Loss) on foreign currency transaction and translation 1.18 105.98
Income from Leases 4.26 9.84
Dividends [Refer Note 23.2] 480.66 309.66
Surplus from deployment in Cash Management Schemes of Mutual Funds [Refer Note 23.3] 252.34 319.78
Fees and Other Charges [Refer Note 23.4] 241.34 268.37
Total 20,796.95 17,062.58

23.1 a) Other Interest includes Interest on Investments amounting to Rs 328.99 crores (Previous Year Rs 203.22 crores), including Rs 9.79 crores (Previous Year Rs 15.29 crores) in respect of current investments.

b) Other Interest includes Interest on Income Tax Refund Rs 5.83 crores (Previous Year Rs Nil).

23.2 a) Dividend income includes Rs 269.42 crores (Previous Year Rs 148.21 crores) received from subsidiary companies.

b) Dividend income includes Rs 0.38 crores (Previous Year Rs 2.40 crores) in respect of current investments.

23.3 Surplus from deployment in Cash Management Schemes of Mutual Funds amounting to Rs 252.34 crores (Previous Year Rs 319.78 crores) is in respect of investments held as current investments.

23.4 Fees and Other Charges is net of the amounts paid to Direct Selling Agents Rs 264.00 crores (Previous Year Rs 248.54 crores).

24. a) Profit on sale of investments includes profit of Rs 0.83 crores (Previous Year Rs Nil) in respect of investments held as current investments.

b) Profit on sale of investments includes profit of Rs 0.77 crores (Previous Year Rs Nil) on account of sale of shares of Indian Association for Savings and Credit (Associate Company) and Rs Nil (Previous Year Rs 0.12 crores) on account of shares bought back by India Value Fund Advisors Pvt. Ltd. (Associate Company).

25. Other Income includes rent of Rs 10.15 crores (Previous Year Rs 10.00 crores), of which Rs 0.10 crores (Previous Year Rs 0.24 crores) is in respect of rent for certain assets given on operating lease and also includes sublease payments received Rs 0.31 crores (Previous Year Rs 0.07 crores) in respect of a property acquired under operating lease as per Note 28.1.

25.1 Earning in foreign currency:

Current year Previous Year
Interest on Bank Deposits 3.59 2.95
Consultancy and other fees 12.52 8.24

25.2 In accordance with the Accounting Standard on 'Leases' (AS 19), notified by the Companies (Accounting Standards) Rules, 2006, the following disclosures in respect of Operating Leases are made :

Income from Leases includes Rs 4.14 crores (Previous Year Rs 4.46 crores) in respect of properties and certain assets leased out by the Corporation under Operating Leases. Out of the above, in respect of the non-cancellable leases, the future minimum lease payments are as follows:

Period Current Year Previous Year
Not later than one year 2.63 4.02
Later than one year but not later than five years 3.58 5.77
Later than five years - 1.05

26. FINANCE COST

Current Year Previous Year
Rs in Crores Rs in Crores
Interest
- Loans 2,187.03 3,045.62
- Deposits 4,456.86 2,964.51
- Bonds and Debentures 5,916.46 4,161.95
- Commercial Paper 1,073.64 701.01
13,633.99 10,873.09
Net Loss on foreign currency transaction and translation 165.78 220.27
Other Charges 91.12 63.42
Total 13,890.89 11,156.78

26.1 Other Charges includes Exchange loss of Rs 0.10 crore (Previous Year net of Exchange gain of Rs 0.97 crore).

26.2 A net gain of Rs 53.23 crores (Previous Year Rs 25.36 crores) has been recognised in the Statement of Profit and Loss being net gain on translation of foreign currency monetary assets and liabilities as shown below:

Particulars Current Year Previous Year
Exchange (Gain) / Loss on Translation
- Foreign Currency Denominated Assets and Foreign Currency Borrowings [Refer Note 4.9] (131.72) (54.87)
- Cross Currency Interest Rate Swaps [Refer Note 4.7] 78.49 29.51
Net (Gain)/Loss on Translation [Refer Note 4.9] (53.23) (25.36)

26.3 Expenditure in foreign currency:

Rs in Crores
Particulars Current Year Previous Year
Interest and Other Charges on Loans 27.95 27.44
Others 23.01 14.72

27. STAFF EXPENSES [Refer Note 27.3]

Current Year Previous year
Particulars Rs in Crores Rs in Crores
Salaries and Bonus [Refer Notes 27.1 & 27.2] 196.84 165.72
Contribution to Provident Fund and Other Funds 38.02 30.37
Staff Training and Welfare Expenses 11.33 9.70
Total 246.19 205.79

27.1 Salaries and Bonus include Rs 12.03 crores (Previous Year Rs 8.77 crores) towards provision made in respect of accumulated leave salary and leave travel assistance which is in the nature of Long Term Employee Benefits and has been actuarially determined as per the AS 15 (Revised).

27.2 Expenditure shown in Note 27 is net of recovery from subsidiary companies in respect of Salaries Rs 3.00 crores (Previous Year Rs 1.82 crores).

27.3 EMPLOYEE BENEFITS

In accordance with the Accounting Standard on Employee Benefits (AS 15) (Revised 2005) notified by the Companies (Accounting Standards) Rules, 2006, the following disclosures have been made:

The Corporation has recognised the following amounts in the Statement of Profit and Loss which are included as under :

Particulars Current Year Previous Year
Rs in Crores Rs in Crores
Provident Fund 9.96 8.33
Superannuation Fund 7.14 5.86
Employees' Pension Scheme-1995 1.22 1.13

The Rules of the Corporation's Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay interest at the rate declared for Employees' Provident Fund by the Government under para 60 of the Employees' Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the deficiency shall be made good by the Corporation. In the current year deficiency of Rs Nil (Previous Year Rs 0.15 crores), included in Staff Training and Welfare Expenses, was made good by the Corporation.

The details of the Corporation's post-retirement benefit plans for its employees including whole-time directors are given below which is as certified by the actuary and relied upon by the auditors:

Particulars Current Year Previous Year
Change in the Benefit Obligations:
Liability at the beginning of the year 107.69 94.24
Current Service Cost 4.21 3.90
Interest Cost 9.14 7.80
Benefits Paid (6.48) (6.54)
Actuarial loss 13.57 8.29
Liability at the end of the year * 128.13 107.69

* The Liability at the end of the year Rs 128.13 crores (Previous Year Rs 107.69 crores) includes Rs 34.52 crores (Previous Year Rs 29.18 crores) in respect of an un-funded plan.

Particulars Current Year Previous Year
Fair Value of Plan Assets:
Fair Value of Plan Assets at the beginning of the year 75.56 60.17
Expected Return on Plan Assets 7.65 6.16
Contributions 16.94 20.38
Benefits Paid (6.48) (6.54)
Actuarial loss on Plan Assets (6.16) (4.61)
Fair Value of Plan Assets at the end of the year 87.51 75.56
Total Actuarial loss to be recognised (19.73) (12.90)
Actual Return on Plan Assets:
Expected Return on Plan Assets 7.65 6.16
Actuarial loss on Plan Assets (6.16) (4.61)
Actual Return on Plan Assets 1.49 1.55
Expense Recognised in the Statement of Profit and Loss:
Current Service Cost 4.21 3.90
Interest Cost 9.14 7.80
Expected Return on Plan Assets (7.65) (6.16)
Net Actuarial loss to be recognised 19.73 12.90
Expense recognised in the Profit and Loss Account under "Staff Expenses" 25.43 18.44
Reconciliation of the Liability Recognised in the Balance Sheet:
Opening Net Liability 32.13 34.07
Expense recognised 25.43 18.44
Contribution by the Corporation 16.94 20.38
Amount recognised in the Balance Sheet under "Provision for Employee Benefits" Rs 34.52 crores (Previous Year Rs 29.18 crores) and under "Other Current Liabilities" Rs 6.10 crores (Previous Year Rs 2.95 crores) 40.62 32.13

 

Particulars 2012-13 2011-12 2010-11 2009-10 2008-09
Amount Recognised in the Balance Sheet:
Liability at the end of the year 128.13 107.69 94.24 81.40 69.60
Fair Value of Plan Assets at the end of the year 87.51 75.56 60.17 53.86 46.93
Amount recognised in the Balance Sheet under "Provision for Employee Benefits" and "Other Current Liabilities" 40.62 32.13 34.07 27.54 22.67
Experience Adjustment :
On Plan Liabilities 17.25 10.58 7.13 7.04 3.94
On Plan Assets (6.16) (4.61) (3.36) (2.91) (2.32)
Estimated Contribution for next year 8.03 6.79 5.79 4.72 2.05

Investment Pattern:

Particulars % Invested % Invested
Current Year Previous Year
Central Government securities 23.13 21.84
State Government securities/securities guaranteed by State/Central Government 1.00 1.69
Public Sector/Financial Institutional Bonds 27.56 24.85
Private Sector Bonds 10.91 15.49
Special Deposit Scheme 2.52 2.92
Certificate of Deposits 1.69 3.26
Deposits with Banks and Financial Institutions 3.47 3.49
Equity Shares 20.52 20.57
Others (including bank balances) 9.20 5.89
Total 100.00 100.00

Based on the above allocation and the prevailing yields on these assets, the long term estimate of the expected rate of return on fund assets has been arrived at.

Principal Assumptions:

Particulars Current Year Previous Year
% %
Discount Rate 8.25 8.50
Return on Plan Assets 8.60 8.60
Salary Escalation 5.00 5.00

The estimate offuture salary increase, considered in the actuarial valuation takes account of inflation, seniority, promotion and other relevant factors.

28. ESTABLISHMENT EXPENSES

Particulars Current Year Previous Year
Rs in Crores Rs in Crores
Rent [Refer Note 28.1] 52.73 32.05
Rates and Taxes 3.34 2.93
Repairs and Maintenance - Buildings 5.72 5.41
General Office Expenses 1.97 1.84
Electricity Charges 11.30 9.81
Insurance Charges 0.62 0.53
Total 75.68 52.57

28.1 In accordance with the Accounting Standard on 'Leases' (AS 19), notified by the Companies (Accounting Standards) Rules, 2006, the following disclosures in respect of Operating Leases are made :

The Corporation has acquired properties under non-cancellable operating leases for periods ranging from 12 months to 36 months. The total minimum lease payments for the current year, in respect thereof, included under Rent, amounts to Rs 26.79 crores (Previous Year Rs 2.65 crores). Out of the above, the Corporation has sub-leased a property, the total sub-lease payments received in respect thereof included under Other Income amount to Rs 0.31 crores (Previous Year Rs 0.07 crores). The future minimum lease payments in respect of the properties acquired under non-cancellable operating leases are as follows:

Period Current Year Previous Year
Not later than one year 32.50 2.57
Later than one year but not later than five years 30.88 3.78

29. OTHER EXPENSES

Particulars Current Year Previous Year
Rs in Crores Rs in Crores
Travelling and Conveyance 16.63 14.61
Printing and Stationery 7.00 6.31
Postage, Telephone and Fax 19.92 18.03
Advertising 24.06 24.20
Repairs and Maintenance - Other than Buildings 6.75 5.92
Office Maintenance 16.97 15.31
Legal Expenses 14.45 9.99
Computer Expenses 10.17 8.45
Directors' Fees and Commission 3.13 2.70
Miscellaneous Expenses [Refer Notes 29.1 & 29.2] 71.27 65.61
Auditors' Remuneration [Refer Note 29.4] 3.08 1.85
Total 193.43 172.98

29.1 Miscellaneous Expenses exclude Rs 9.13 crores (Previous Year Rs 6.89 crores) in respect of amounts utilised out of Shelter Assistance Reserve during the year.

29.2 Miscellaneous Expenses include Provision for Wealth Tax amounting to Rs 0.60 crores (Previous Year Rs 0.65 crores) and Securities Transaction Tax amounting to Rs 0.45 crores (Previous Year Rs 0.23 crores).

29.3 Expenditure shown in Note 29 is net of recovery from a subsidiary company in respect of Miscellaneous expenses Rs Nil (Previous Year Rs 0.89 crores).

29.4 Auditors' Remuneration:

Particulars Current Year Previous Year
Audit Fees 1.05 0.81
Tax Matters 0.84 0.27
Other Matters 1.00 0.66
Reimbursement of Expenses 0.01 0.01
Service Tax 0.36 0.20
Less: Service tax input credit availed (0.18) (0.10)
3.08 1.85

Audit Fees include Rs 0.03 crores (Previous Year Rs 0.03 crores) paid to Branch Auditors.

30. PROVISION FOR NON PERFORMING LOANS

30.1 As per the Housing Finance Companies (NHB) Directions, 2010, non-performing assets are recognised on the basis of ninety days overdue. The total provision carried by the Corporation in terms of paragraph 29 (2) of the Housing Finance Companies (NHB) Directions, 2010 and NHB circular NHB.HFC. DIR-3/CMD/2011 dated August 5, 2011 in respect of Housing and Non-Housing Loans is as follows [Refer Note 15]:

Particulars

Sub-Standard Assets

Doubtful Assets

Current Year Previous Year Current Year Previous Year
Housing 52.60 74.16 179.31 182.33
Non-Housing 72.07 39.12 30.48 30.42

30.2 Provision for Contingencies debited to the Statement of Profit and Loss includes Provision for Diminution in the Value of Investments amounting to Rs 7.09 crores (Previous Year Rs 25.21 crores). The balance of the Provision represents provision made against non-performing assets and other contingencies [Refer Note 6.2].

31. In accordance with the Accounting Standard on 'Earnings Per Share' (AS 20), notified by the Companies (Accounting Standards) Rules, 2006 :

(i) In calculating the Basic Earnings Per Share, the Profit After Tax of Rs 4,848.34 crores (Previous Year Rs 4,122.62 crores) has been adjusted for amounts utilised out of Shelter Assistance Reserve of Rs 9.13 crores (Previous Year Rs 6.89 crores).

Accordingly the Basic Earnings Per Share has been calculated based on the adjusted Profit After Tax of Rs 4,839.21 crores (Previous Year Rs 4,115.73 crores) and the weighted average number of shares during the year of 151.97 crores (Previous Year 147.17 crores).

(ii) The reconciliation between the Basic and the Diluted Earnings Per Share is as follows :

Particulars Current Year Previous Year
Basic Earnings Per Share 31.84 27.97
Effect of outstanding Stock Options (0.39) (0.43)
Diluted Earnings Per Share 31.45 27.54

(iii) The Basic Earnings Per Share has been computed by dividing the adjusted Profit After Tax by the weighted average number of equity shares for the respective periods; whereas the Diluted Earnings Per Share has been computed by dividing the adjusted Profit After Tax by the weighted average number of equity shares, after giving dilutive effect of the outstanding Stock Options for the respective periods. The relevant details as described above are as follows :

Particulars Current Year Previous Year
Weighted average number of shares for computation of Basic Earnings Per Share 151.97 147.17
Diluted effect of outstanding Stock Options 1.90 2.30
Weighted average number of shares for computation of Diluted Earnings Per Share 153.87 149.47

32. Summary of total Borrowings, Loans and Investments Total Borrowings

Term-wise Break-up Current Year Previous Year
Long-term borrowings 90,005.01 74,837.74
Short-term borrowings 18,786.69 21,146.24
Current maturities of long-term borrowings 50,036.41 43,143.52
1,58,828.11 1,39,127.50
Category-wise Break-up
Bonds and Debentures 79,521.40 57,488.10
Term Loans:
- Banks 15,984.62 38,676.69
- Others 1,839.27 2,019.91
- Commercial Papers 9,550.00 4,650.00
Deposits 51,932.82 36,292.80
1,58,828.11 1,39,127.50

Total Loans

Rs in Crores
Term-wise Break-up Current Year Previous Year
Long-term loans 1,52,106.20 1,25,985.54
Current maturities of long-term loans 17,939.97 14,889.04
1,70,046.17 1,40,874.58
Less: Provision for non performing loans (475.33) (452.89)
Net Loan Book: 1,69,570.84 1,40,421.69
Category-wise Break-up
Individual 1,11,320.65 88,777.85
Corporate Bodies 56,956.65 50,189.60
Others 1,768.87 1,907.13
1,70,046.17 1,40,874.58
Less: Provision for non performing loans (475.33) (452.89)
Net Loan Book: 1,69,570.84 1,40,421.69

Total Investments

Rs in Crores
Particulars Current Year Previous Year
Non-Current Investments 12,531.86 12,011.56
Current Investments 1,081.60 195.44
13,613.46 12,207.00

32.1 Summary of total provision for contingencies:

Particulars As at March 31, 2013 As at March 31, 2012
Rs in Crores Rs in Crores
Provision for Contingencies Account [Refer Note 6.2] 1,265.24 1,218.09
Provision for Non-Performing Loans [Refer Note 15.7] 475.33 452.89
Provision for doubtful receivables [Refer Note 20] 51.71 -
Total 1,792.28 1,670.98

33. DISCLOSURE REQUIRED BY NATIONAL HOUSING BANK

The following additional disclosures have been given in terms of the circular no. NHB/ND/DRS/Pol-No.35/2010-11 dated October 11, 2010 issued by the National Housing Bank.

(a) Capital to Risk Assets Ratio (CRAR)

Particulars Current Year Previous Year
1) CRAR (%) 16.35 14.61
2) CRAR - Tier I Capital (%) 13.85 11.63
3) CRAR - Tier II Capital (%) 2.50 2.98

(b) Exposure to Real Estate Sector

Rs in Crores
1. Direct Exposure Current Year Previous Year
A Residential Mortgages :
Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented. Individual Housing Loans upto Rs 15 Lacs : Rs 22,509.70 crores (Previous Year Rs 21,417.04 crores) 1,08,054.76 86,536.16
B Commercial Real Estate : Lending secured by mortgages on commercial real estate 27,828.64 25,920.95
C Investments in Mortgage Backed Securities (MBS) and other securitised exposures -
(i) Residential 28.80 36.75
(ii) Commercial Real Estate Nil Nil
2. Indirect Exposure
Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs) 124.07 124.07

In computing the above information, certain estimates, assumptions and adjustments have been made by the Management which have been relied upon by the auditors.

(c) Asset Liability Management

Maturity pattern of certain items of assets and liabilities as on March 31, 2013:

Assets and Liabilities are classified in the maturity buckets as per the guidelines issued by the National Housing Bank.

Maturity Buckets

Liabilities

Assets

Borrowings from Banks Market Borrowings Advances Investments
1 day to 30 days (one month) 709.27 2,223.75 2,594.45 524.99
Over one month to 2 months 353.25 355.00 2,629.28 -
Over 2 to 3 months 476.51 1,347.50 2,843.57 1,009.28
Over 3 to 6 months 867.24 3,326.25 8,929.89 403.90
Over 6 months to 1 year 2,474.98 8,468.30 15,865.27 2,285.04
Over 1 to 3 years 4,557.90 25,631.17 52,850.07 267.89
Over 3 to 5 years 3,611.72 26,594.18 36,811.29 229.09
Over 5 to 7 years 1,933.75 11,210.15 22,156.78 8,393.94
Over 7 to 10 years 1,000.00 8,915.10 14,903.68 -
Over 10 years - 1,000.00 9,986.56 499.33
Total 15,984.62 89,071.40 1,69,570.84 13,613.46

Maturity pattern of certain items of assets and liabilities as on March 31, 2012:

Assets and Liabilities are classified in the maturity buckets as per the guidelines issued by the National Housing Bank.

Maturity Buckets

Liabilities

Assets

Borrowings from Banks Market Borrowings Advances Investments
1 day to 30 days (one month) 432.42 - 3,037.91 -
Over one month to 2 months 2,018.56 1,693.26 1,939.41 480.24
Over 2 to 3 months 2,779.26 663.60 2,190.72 36.25
Over 3 to 6 months 2,883.64 3,740.00 6,066.95 952.98
Over 6 months to 1 year 5,167.97 5,782.35 12,653.87 974.85
Over 1 to 3 years 13,276.42 12,069.26 43,174.07 571.13
Over 3 to 5 years 7,126.43 17,499.72 28,748.75 326.91
Over 5 to 7 years 3,391.99 10,617.57 18,994.03 8,329.54
Over 7 to 10 years 1,100.00 9,068.15 14,637.79 9.00
Over 10 years 500.00 1,004.19 8,978.19 526.10
Total 38,676.69 62,138.10 1,40,421.69 12,207.00

In computing the above information, certain estimates, assumptions and adjustments have been made bythe Management which have been relied upon bythe auditors.

34. DIVIDEND PAYABLE TO NON-RESIDENT SHAREHOLDERS

The Corporation has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made by/on behalf of non-resident shareholders. The particulars of dividends payable to non-resident shareholders (including Foreign Institutional Investors) are as under:

Particulars Current Year Annual Previous Year Annual
Year to which the dividend relates 2011-12 2010-11
Number of non-resident shareholders 4,750 4,277
Number of shares held by them of Face Value of Rs 2 each 105,85,88,251 107,37,73,004
Gross amount of dividend (in X) 1164,44,70,761 966,39,57,036

35. RELATED PARTY TRANSACTIONS

As per the Accounting Standard on 'Related Party Disclosures' (AS 18), notified by the Companies (Accounting Standards) Rules, 2006, the related parties of the Corporation are as follows:

A) Subsidiary Companies
HDFC Developers Ltd. HDFC Investments Ltd.
HDFC Holdings Ltd. HDFC Asset Management Company Ltd.
HDFC Trustee Company Ltd. HDFC Realty Ltd.
HDFC Standard Life Insurance Company Ltd. HDFC ERGO General Insurance Company Ltd.
HDFC Venture Capital Ltd. HDFC Sales Pvt. Ltd.
HDFC Ventures Trustee Company Ltd. HDFC Property Ventures Ltd.
GRUH Finance Ltd. Credila Financial Services Pvt. Ltd
Griha Investments (Subsidiary of HDFC Holdings Ltd.) Griha Pte. Ltd. (Subsidiary of HDFC Investments Ltd.)
HDFC Education and Development Services Pvt. Ltd. (w.e.f. 28th December 2012)
HDFC Asset Management Company (Singapore) Pte. Ltd. HDFC Life Pension Fund Management Company Ltd.
(Subsidiary of HDFC Asset Management Company Ltd.) (Subsidiary of HDFC Standard Life Insurance Company Ltd.)
H. T. Parekh Foundation (w.e.f. 19th October, 2012)
B) Associate Companies C) Entities over which control is exercised
HDFC Bank Ltd. HDFC Property Fund - Scheme - HDFC IT Corridor Fund
India Value Fund Advisors Pvt. Ltd. HDFC Investment Trust
RuralShores Business Services Pvt. Ltd.
IPF. Online Ltd.
Indian Association for Savings and Credit
(Up to 26th September, 2012)

 

D) Key Management Personnel E) Relatives of Key Management Personnel
Mr Keki M. Mistry (where there are transactions)
Ms Renu Sud Karnad Ms Arnaaz K. Mistry Mr Rishi R. Sud
Mr V. Srinivasa Rangan Mr Ashok Sud Ms Riti Karnad
Mr Ketan Karnad Ms Swam Sud
Ms Abhinaya S. Rangan

I) The nature and volume of transactions of the Corporation during the year, with the above related parties were as follows:

Particulars

Subsidiary Companies

Associates

Entities over which control is exercised

Key Management Personnel

Relatives of Key Management Personnel

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year
INCOME/ TRANSACTION
Dividend 269.42 148.21 169.38 129.92 0.05 0.12 - -
Interest 5.55 3.12 9.89 6.39 100.11 21.49 - -
Consultancy & Other Fees 14.60 17.96 - - - -
Rent 17.75 3.03 1.71 1.68 - - 0.01 0.03
Other Income 0.26 0.11 44.64 29.54 - - -
EXPENDITURE/ TRANSACTION
Interest 53.08 45.00 3.71 1.02 - 0.47 0.41 0.05 0.07
Bank & Other Charges - 1.49 1.53 - - -
Remuneration - - - 16.72 13.36 -
Other Expenses 127.04 98.61 138.16 105.26 - - 0.09 0.06
ASSETS
Investments 2,774.12 2,687.54 5,558.58 5,560.88 586.08 627.22 - -
Loans 13.27 - - 0.17 0.19 -
Corporate Deposits 7.00 29.10 3.00 - - -
Bank Balance and Deposits - 821.68 1,439.29 - - -
Trade Receivable 0.01 0.02 - 8.31 - - -
Others 10.00 8.76 2.19 2.08 - - -
LIABILITIES
Deposits 21.53 249.17 0.17 0.17 - 5.30 3.87 0.40 0.45
Non-Conve rtible Debentures 720.00 605.00 - - - -
Others 27.27 21.47 1.04 3.41 - 0.21 0.19 0.03 0.04

During the year, the Corporation has sold individual loans amounting to Rs 5,125 crores (Previous Year Rs 4,978 crores) to HDFC Bank Ltd. and Corporate Loan amounting to Rs 50 crores (Previous Year Rs Nil) to HDFC Standard Life Insurance Co. Ltd.

II) The nature and volume of material transactions of the Corporation during the year, with the above related parties were as follows:

Particulars

Subsidiary Companies

Associates

Entities over which control is exercised

Key Management Personnel

Relatives of Key Management Personnel

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year
INCOME/TRANSACTION
Dividend
- HDFC Asset Management Co. Ltd. 66.43 49.82 - - - - - - - -
- HDFC Bank Ltd. - - 169.08 129.76 - - - - - -
- HDFC Holdings Ltd. 50.85 - - - - - - - - -
- HDFC Investment Ltd. 120.02 60.01 - - - - - - - -
Interest
- HDFC Bank Ltd. - - - 6.08 - - - - - -
- HDFC Investment Trust - - - - - 3.93 - - - -
- HDFC IT Corridor Fund - - - - 94.67 17.56 - - - -
Consultancy & Other Fees
- HDFC Asset Management Co. Ltd. 14.38 17.62 - - - - - - - -
Rent
- HDFC Asset Management Co. Ltd. 9.87 2.66 - - - - - - - -
- HDFC ERGO General Insurance Co. Ltd. 4.96

-

-

-

-

-

-

-

-

-

- HDFC Bank Ltd. - - - 1.68 - - - - - -
Other Income
- HDFC Bank Ltd. - - 44.64 29.54 - - - - - -
EXPENDITURE/ TRANSACTION
Interest
- HDFC ERGO General Insurance Co. Ltd. 7.99

-

-

-

-

-

-

-

-

-

- HDFC Standard Life Insurance Co. Ltd. 37.59 22.46

-

-

-

-

-

-

-

-

- HDFC Holdings Ltd.

-

13.47

-

-

-

-

-

-

-

-

- HDFC Investment Ltd. - 5.17 - - - - - - - -
Bank & Other Charges
- HDFC Bank Ltd. - - 1.49 1.53 - - - - - -
Remuneration
- Mr. Keki M. Mistry - - - - - - 6.67 5.52 - -
- Ms. Renu S. Karnad - - - - - - 6.20 5.15 - -
- Mr. V. S. Rangan - - - - - - 3.85 2.69 - -
Other Expenses
- HDFC Sales Private Ltd. 119.97 92.67

-

-

-

-

-

-

-

-

- HDFC Bank Ltd. - - 138.16 105.26 - - - - - -
ASSETS
Investments
- HDFC Bank Ltd.

-

-

5,549.74 5,549.74

-

-

-

-

-

-

- HDFC Standard Life Insurance Co. Ltd. 1,545.64 1,545.64 - - - - - - - -
Loans
- GRUH Finance Ltd. 13.27

-

-

-

-

-

-

-

-

-

- Ms. Renu S. Karnad - - - - - - - 0.12 - -
- Mr. V. S. Rangan - - - - - - - 0.07 - -
Corporate Deposits
- HDFC Sales Private Ltd. 7.00 26.10

-

-

-

-

-

-

-

-

- RuralShores Business Services Pvt. Ltd. - - 3.00 - - - - - - -
Bank Balance and Deposits
- HDFC Bank Ltd. - - 821.68 1,439.29 - - - - - -
Trade Receivable
- HDFC Standard Life Insurance Co. Ltd. 0.01 0.01 - - - - - - - -

 

Particulars

Subsidiary Companies

Associates

Entities over which control is exercised

Key Management Personnel

Relatives of Key Management Personnel

Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year Current Year Previous Year
Others
- HDFC ERGO General Insurance Co. Ltd. 1.44 - - - - - - - - -
- HDFC Standard Life Insurance Co. Ltd. 7.60 7.55 - - - - - - - -
- HDFC Bank Ltd. - - 2.19 8.87 - - - - - -
LIABILITIES
Deposits
- HDFC Holdings Ltd. 21.03 140.47 - - - - - - - -
- HDFC Investment Ltd. - 107.15 - - - - - - - -
- Mr. Keki M. Mistry - - - - - - 3.28 3.85 - -
Non-Convertible Debentures
- HDFC ERGO General Insurance Co. Ltd. 105.00 55.00 - - - - - - - -
- HDFC Standard Life Insurance Co. Ltd. 615.00 550.00 - - - - - - - -
Others
- HDFC ERGO General Insurance Co. Ltd. 4.72 1.79 - - - - - - - -
- HDFC Standard Life Insurance Co. Ltd. 22.52 19.41 - - - - - - - -

36. SEGMENT REPORTING

The Corporation's main business is financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes in India. All other activities of the Corporation revolve around the main business. As such, there are no separate reportable segments, as per the Accounting Standard on 'Segment Reporting' (AS 17), notified bythe Companies (Accounting Standards) Rules, 2006.

37. INTEREST IN JOINT VENTURES

In compliance with the Accounting Standard relating to 'Financial Reporting of Interests in Joint Ventures' (AS 27), notified by the Companies (Accounting Standards) Rules, 2006, the Corporation has interests in the following jointly controlled entities, which are incorporated in India.

Names of Companies

HDFC Standard Life Insurance Co. Ltd.

HDFC ERGO General Insurance Co. Ltd.

Current Year Previous Year Current Year Previous Year
Percentage of Shareholding 72.37 72.37 73.91 74.00
Amount of Interest based on the last Audited Accounts
Assets 30,390.96 24,455.06 2,412.81 1,761.86
Liabilities 29,405.80 23,836.16 1,883.28 1,368.58
Income 10,059.54 7,579.94 1,075.73 778.38
Expenditure 9,729.73 7,383.81 941.28 807.75
Capital Commitment 274.66 141.07 5.10 6.61
Contingent Liability 245.45 157.20 - -

38. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

   
  A    |   B   |   C    |  D    |    E    |  F  |    G   |   H  |  I  |    J   |   K  |   L  |    M  |   N  |   O  |   P  |  Q  |  R  |  S  |  T   |  U   |   V   |    W   |  X   |  Y  |    Z
Left Decrease Increase Right SEBI Regn. No. NSE: INB/INF/INE 230881235   |   BSE: INB/INF/INE 010881234   |   DSE: INB 050881235   |   MCX-SX : INE 260881235  |   USE - INE 270881235   |   NSDL- DP ID: IN-DP-NSDL-14-96   |   CDSL DP ID: IN-ID-CDSL-43-99         Commodity Membership No.: MCX-10705, NCDEX-0016, NMCE-CL0044, NSPOT-10002, NSEL-10700, SNX-2255, ICEX-1025   |   Dubai Gold and Commodity Exchange (DGCX)-3035   |   Indian Energy Exchange (IEX)- Electricity Trading N2DLOAIL0000
4E/2, Jhandewalan Extension New Delhi Delhi 110 055 India
Copyright@2012 Alankit . All rights reserved. Designed, developed and powered by C-MOTS Infotech (ISO 9001:2008 certified)