Financial Performance

of

Indiainfoline

2010

Financial performance (year 2009-2010)

The Directors have pleasure in presenting the 15th Annual Report along with the audited statements of accounts for the fin. Yr. ended March 31, 2010. I Financial resultsII A snapshot of the financial performance of the Company and its major subsidiaries for the financial year 2009-10 s as under: (Rs. mn) Name of Company Revenues Profit befor interest, tas

depreciation and taxProfi afterTax

India Infoline Ltd. 6,981.9 2,754.2 1,520.2India Infoline Investment Services Ltd.

1,650.3 855.3 475.5

Moneyline Credit Ltd. 572.9 94.1 7.1

India Infoline Distribution Company Ltd.

67.9 68.2 35.8

Iindia nfoline Housing Finance Ltd.

54.6 34.2 19.5

India nfoline Marketing Services Ltd.

860.5 130.6 34.0

India nfoline Insurance Services Ltd.

164.8 79.8 18.1

India nfoline Insurance Brokers Ltd.

385.5 31.7 20.6

India nfoline Commodities Ltd.

275.9 44.8 26.7

India Infoline Media and Research Services Ltd.

53.8 44.7 10.9

NFL Realty Ltd. 207.6 207.6 (5.7) FL Wealth Management Ltd.

626.4 222.2 147.3

FL (Asia) Pte. Ltd. 331.8 103.1 29.5 NFL Inc. 49.2 14.8 16.9 Inter Company Adjustments

1,055.0 298.6

Aggregate 11,238.7 4,373.1 2,340.5 Other subsidiaries 10.6 (13.6) (15.9)

The consolidated financial performance is as under: (rs. mn)

2009-10 2008-09 Gross total income 11,238.7 8,775.0Profit before interest, depreciation and taxation 4373.1 2,922.7 Interest and financial charges 291.4 331.8 Depreciation 534.6 396.0 Profit before tax 3,547.1 2,194.9 Taxation Current 1,201.1 653.7 Deferred (37.4) (30.9) Fringe benefit tax - 27.9 Short or excess provision for income tax 42.9 (29.2) Net profit for the year 340.5 1,573.4 Less: Exceptional item (net of tax) - -

Net profit before minority interest 340.5 1,573.4

Less: Minority interest (20.6) (125.2) Less: Appropriations - - Interim dividend 852.0 794.5 Proposed dividend - - Dividend distribution tax 44.8 135.0 Transfer to general reserve 52.0 105.8 Transfer to special reserve 102.4 139.0 Add: Balance brought forward from the - -

previous year 2,087.1 1,813.3 Balance to be carried forward 3155.8 2,087.2

A snapshot of he stand-alone fnancial performance of India Infoline Limited is as under: (rs. mn)

2009-10 2008-09

Gross total income 6,981.9 4,921.3

Profit before interest, depreciation and taxation 2754.2 1,848.8 Interest and fnancial charges 102.5 78.5 Depreciation 318.6 255.6 Profit before tax 2,333.1 1,514.7 Taxation Current 831.6 480.8 Deferred 58.2 12.3 Fringe benefit tax - 10.3 Short or excess provision for ncome ax 39.6 (22.3) Net profit for the year 520.1 1,058.2 Less: Exceptional Item (Net of ax) - - Less: Appropriations - - Interim dividend 852.0 794.5 Dividend distribution tax 144.8 135.0 Transfer to general reserve 152.0 105.8 Add: Balance brought forward from the previous year 1,252.1 1,229.1 Balance to be carried forward 1623.4 1,252.0

Review of operations The Indian capital markets staged a remarkable recovery during 2009-10 on the back of an overall global change in sentiment and economic recovery in India. Your Company continues to buid upon its competitive position as a leading player in Indian financial services sector. On a consolidated basis, the Companys income increased by 28.0% to Rs. 11.2 bn and EBITDA increased 49.6% to Rs. 4.4 bn. Profit after tax before extra ordinary items and minority interest increased by 48.7% to Rs. 2.3 bn.

Profit & Loss account of India Infoline

Profit loss account

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06IncomeOperating income 665.99 542.27 616.11 272.12 44.70ExpensesMaterial consumed - - - - -Manufacturing expenses  14.52 93.32 105.93 38.62 0.30Personnel expenses 162.62 136.91 128.79 56.22 2.99Selling expenses 137.18 67.38 67.20 42.07 0.35Adminstrative expenses 104.83 85.81 91.60 49.51 1.40Expenses capitalised - - - - -Cost of sales 419.14 383.42 393.53 186.42 5.05Operating profit 246.85 158.85 222.58 85.71 39.65Other recurring income 24.30 29.37 56.33 14.59 3.77Adjusted PBDIT 271.14 188.22 278.91 100.30 43.42Financial expenses 13.88 11.15 22.82 8.35 2.20Depreciation  31.86 25.56 19.44 12.33 1.47Other write offs - - - - -Adjusted PBT 225.40 151.51 236.65 79.62 39.75Tax charges  77.34 47.88 78.39 27.50 13.28Adjusted PAT 148.07 103.63 158.26 52.12 26.47Non recurring items 7.90 -0.03 -29.04 - -Other non cash adjustments-3.96 2.23 -0.53 - -Reported net profit 152.02 105.83 128.69 52.12 26.47Earnigs before appropriation277.22 228.74 176.10 69.77 26.55Equity dividend 85.20 79.45 34.26 14.96 13.33Preference dividend - - - - -Dividend tax 14.48 13.50 5.82 2.10 1.87Retained earnings 177.54 135.79 136.01 52.71 11.35

Balance Sheet in Cr.

Balance sheet

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06Sources of fundsOwner's fundEquity share capital 57.04 56.68 57.10 50.17 45.10Share application money 0.40 11.37 59.77 4.42 4.42Preference share capital - - - - -Reserves & surplus 1,050.67 980.13 932.75 235.18 123.83Loan fundsSecured loans 1.17 1.70 - 44.68 1.50Unsecured loans 496.58 0.10 130.57 36.27 80.89Total 1,605.86 1,049.99 1,180.20 370.72 255.74Uses of fundsFixed assetsGross block 108.83 143.68 98.32 73.10 8.75Less : revaluation reserve - - - - -Less : accumulated depreciation 60.63 44.94 35.08 24.38 5.23Net block 48.20 98.73 63.24 48.71 3.52Capital work-in-progress 1.75 4.51 0.49 - -Investments 1,104.22 869.31 915.68 171.45 100.25Net current assetsCurrent assets, loans & advances 1,709.81 778.75 872.38 446.12 179.94Less : current liabilities & provisions1,258.12 701.31 671.60 295.57 27.97Total net current assets 451.69 77.43 200.78 150.55 151.98Miscellaneous expenses not written - - - - -Total 1,605.86 1,049.99 1,180.20 370.72 255.74Notes: Book value of unquoted investments1,101.49 869.28 915.68 171.40 100.25Market value of quoted investments3.27 0.03 - - -Contingent liabilities 24.17 20.85 8.00 8.00 73.00Number of equity sharesoutstanding (Lacs)

2852.15 2834.00 571.03 501.67 451.01

ANNUAL RESULTS

Annual results in brief

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06Sales 698.04 571.50 616.11 269.78 44.70Operating profit 275.27 184.78 220.92 81.40 39.63Interest 10.25 7.85 21.16 6.39 2.18Gross profit 265.17 177.04 256.09 91.95 41.22EPS (Rs) 5.33 3.66 4.51 2.08 1.17

Annual results in details

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06Other income 0.15 0.10 56.33 16.94 3.77Stock adjustment - - - - -Raw material - - - - -Power and fuel - - - - -Employee expenses 164.15 143.42 134.79 55.88 1.94Excise - - - - -Admin and selling expenses - 95.47 93.78 58.68 -Research and development expenses

- - - - -

Expenses capitalised - - - - -Other expenses 258.62 147.83 166.62 73.82 3.13Provisions made - - - - -Depreciation 31.87 25.56 19.44 12.33 1.47Taxation 81.29 47.88 78.92 27.50 13.28Net profit / loss 152.02 103.59 128.69 52.12 26.47Extra ordinary item - - -29.04 - -Prior year adjustments - 2.23 - - -Equity capital 57.04 56.68 57.10 50.17 45.10Equity dividend rate - - - - -Agg.of non-prom. shares (Lacs) 1895.40 1878.48 379.99 336.78 158.02Agg.of non promotoHolding (%) 66.46 66.28 66.54 67.13 59.81OPM (%) 39.43 32.33 35.86 30.17 88.67GPM (%) 37.98 30.97 38.08 32.07 85.05NPM (%) 21.77 18.12 19.14 18.18 54.61

Competition of indiainfoline with other companies

Last Price Market Cap.(Rs. cr.)

SalesTurnover

Net Profit Total Assets

SKS Microfinance

1,288.60 9,274.38 - - -

Indiabulls140.75 4,366.85 1,420.81 264.16 11,000.08

Edelweiss Cap50.10 3,762.35 245.53 34.21 2,763.54

HSBC Invest394.00 2,789.12 14.41 -1.49 678.88

India Infoline95.00 2,755.80 698.04 152.02 1,605.86

Motilal Oswal F154.95 2,219.42 51.13 42.38 532.80

Network 18157.65 1,823.59 32.96 -44.54 1,596.23

Future Capital261.40 1,679.32 55.29 17.32 1,196.17

Geojit BNP31.70 714.05 261.71 56.80 319.05

Delta Corp42.35 707.93 54.10 13.57 356.87

PERFORMANCE HIGHLIGHT IN 2009-10

Business Division Business Highlights

Broking

Market share of equities increase from 3.4% in 2007-08 to 3.76% in 2008-09.

Customer base for retail equities increased 35.8% from .44 ml in 2007- 08 to .06 ml in 2008-09.

Published in-depth and thematic reports on INCH, politics, rural India, infrastructure, self commodities, utilities and India worming. Insurance

Receive Insurance Broking License.

Forged alliances with major insurance companies for the distribution of life and Nonlife products.

Alter the product mix in favor of traditional products like Endowment Products. Credit and Finance

Proactively suspended personal loan and mortgages business from September 2008, while the personal loan business is still suspended, the mortgages business has been Re- Started.

Revenue at Rs.2654.1 ml in 2008-09 against Rs.1937.5 ml in 2007-08.

Registered the Housing Finance Subsidiary with NHB. Wealth and asset Management

Introduce the family office platform.

Raised around Rs.1.8 bl in the largest single day debenture listing of its kind.

Received in principle approval for sitting up of Mutual Funds.

Establish the infrastructure and knowledge capital for Office Store Asset Management Services.

Highlights, 2009-10 Industry optimism

Wealth management

• Mobilised Rs 1.8 bn in the largest single-day debenture listing of its kind• Built relationships with many reputed families across India and the globe

Asset management

• Received the in-principle approval from SEBI to sponsor a Mutual fund• IIFL Securities Pte Ltd received approval from the Monetary Authority of Singapore To carry out corporate advisory and dealing in securities. The Singapore arm can now Offer broking, asset management and investment banking services• IIFL Inc received an FII license, thereby facilitating the investment of dedicated funds In India• Setup a team of experienced professionals for the offshore asset management business

Key Takeaways from India Infoline concall:

India Infoline was the Global coordinator and BRLM for the QIP of Emami Limitedand the Co-BRLM to the QIP of Cipla Ltd. Also, they were the Syndicate members toAdani Power IPO in July 2009.The first premium mobilization from insurance broking business stood at Rs 410million.The net NPA on the books continue to remain less than 1%.Its core business improved significantly.Its market share remains same at 3.6%.Average daily equities volumes stood at Rs 33.36 billion as compared to Rs 32.25billion in the previous quarter.The company's customer base improved to 33%.Its financial income grew by 48.7%.Its employee cost was of Rs 7.36 million.Administrator cost grew by 28% at Rs 507 million, QoQ.Depreciation coat stood at Rs 131.5 million.Interest coat was of Rs 155 million.Its advertisement cost was of Rs 24 million.Its cash and cash equivalent stood at Rs 9.3 billion and debt was at Rs 300 millions.