Notes to Accounts of Tourism Finance Corporation of India Ltd.

Mar 31, 2025

Operating Segments (Ind AS - 108)

a) Based on the "Management Approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on an analysis of various performance indicators by business segments. The Managing Director (MD) has been identified as CODM. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segment, and are as set out in the significant accounting policies.

b) The company operates in a single segment namely "Financing and Investment Activities" taking into account the different risks and returns, the organisational structure and the internal reporting systems.

c) Entity-Wide Disclosures-

(i) Information about major customers

The company is not reliant on single customer for revenue and hence revenue from no single external customer amounts to 10 per cent or more of an entity''s revenues.

(ii) Geographical Information

Geographical Locationwise details of Non Current Assets and Revenue from Customers.

1. Description of Leases

The Company''s significant leasing arrangements is in respect of leases of premises for office use in Mumbai. The tenure of lease arangements is for 3 years ending on 28th February 2028. Under lease arrangement, refundable interest-free security deposit of Rs.9.00 lakh has been provided to the Lessor. The company has applied the incremental borrowing rate to lease liabilities recognised in the balance sheet at the date of initial application.

2. Maturity analysis of lease liabilities

The tables below shows the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for undiscounted cash flows.

Fair value measurements under Ind AS are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value are observable and significance to the inputs to the fair value measurement in its entirety, which are described as follows

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at measurement date.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

- Level 3 inputs for the asset or liability that are not based on observable market data (unobservable inputs) that the Company can access at measurement date.

(A) Credit risk

i. The company manages and controls credit risk by setting limits on the amount of risk it is willing to accept for individual counterparties and for geographical and industry concentrations, and by monitoring exposures in relation to such limits.

ii Significant estimates and judgements Impairment of financial assets:-

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company''s history for past 10 years, existing market conditions as well as forward looking estimates at the end of each reporting period.

Company has adopted policy to recognise impairment loss (ECL) in books and has categorized all loans, in tourism & non-tourism segments based on nature of substantive security, in three stages:

Stage-1 - Standard Assets (with no overdues or default upto 30 days)

Stage-2 - Standard Assets (with overdues between 31 days to 90 days)

Stage-3 - Non-Performing Assets / Restructured Assets - Credit impaired.

ECL is calculated based on past ten years data as follows:-

ECL= Exposure at Default X Probability of Default (PD) X Loss given default (LGD)

Probability of Default (PD):

Stage-1: No of Borrowers moving to Stage-3

Total No of Borrowers ^{X Loan Ex}p^{osure (in} % ^terms)

Stage-2: No of Borrowers moving to Stage-3

Total No of Borrowers in Stage-2 ⁽ⁱⁿ % ^terms)

Stage-3: 100% (Since defalut has already incurred)

Loss given Default: LGD = 1 - (PV Recovery - Cost of recovery) (in % terms)

Exposure at Default

Where PV recovery is the sum of discounted cash flows of the recovery made (discounted at weighted average cost of borrowings).

It is presumed that there is increase in credit risk whenever past dues exceed 30 days, however the presumption is rebuttable if there are sufficient at supportable information that demonstrates that the credit risk has not increased despite past overdues exceeding 30 days but less than 60 days, such as availability of tangible security, confirmed availability of buyer/auction price for exceeding the value of the loan asset. All such cases are reviewed by the Audit Commitee of the Board before finalisation.

Further, Wherever the management believes that there is increase in credit risk, the Company may provide additional ECL over and above the stagewise ECL requirement.

Collateral and other credit enhancements

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are in place covering the acceptability and valuation of each type of collateral.

The main types of collateral obtained are, as follows:

- For project lending to hotel/other tourism sector, Exclusive/Pari-passu charge on project assets alongwith mortgage of land and building and hypothecation of movables.

- For manufacturing lendings, the security cover by means of charge on net fixed assets/project assets of the borrower company should be atleast 1.5 times or by way of charge on collateral immovable assets based on distress sale value Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement.

- Government Guarantee on lending under ECLGS to tourism and non-tourism sectors.

(B) Liquidity risk

Liquidity is the risk that suitable sources of funding for Company''s business activities may not be available. The Company''s objective is to maintain optimum level of liquidity to meet its cash requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It also maintains adequate sources to finance its short term and long term fund requirement suchas overdraft facility and Long term borrowing through domestic market.

(ii) Maturity profile of financial liabilities

The tables below analyse the company''s financial liabilities into relevant maturity companyings based on their contractual maturities for: all non-derivative financial liabilities for which the contractual maturities are essential for an understanding of the timing of the cash flows:-

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant :-

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings.

(i) Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the long term loans with floating interest rates. The Company manages its interest rate risk according to its Board approved Interest Rate Risk Management policy''. Market interest rate risk is mitigated by proper review of market conditions, factors etc.

The company''s borrowings are carried at amortised cost.

The fixed costs borrowings are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(a) Exposure

The company''s exposure to equity securities price risk arises from investments held by the company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss To manage its price risk arising from investments in equity securities, the company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the company

(b) Senstivity

Company has insignificant investment in indexed linked equity and also there is no significant change in movement in last two years. Hence, sensitivity not required to be disclosed.

Profit for the period would increase/decrease as a result of gains/losses on equity securities classified as fair value through profit or loss. Other components of equity would increase/decrease as a result of gains/losses on equity instrument classified as fair value through other comprehensive income.

43 Capital Management (Ind AS -1)

The primary objective of the Company''s capital management policy is to ensure compliance with regulatory capital requirements. In line with this objective, the Company ensures adequate capital at all times and manages its business in a way in which capital is protected, satisfactory business growth is ensured, cash flows are monitored, borrowing convenants are honoured and ratings are maintanied.

Regulatory capital-related information is presented as part of the RBI mandated disclosures. The RBI norms require capital to be maintained at prescribed levels. In accordance with such norms, Tier I capital of the company comprises of share capital, share premium, reserves and perpetual debt, Tier II capital comprises of subordinated debt and provision on loans that are not credit-impaired. There were no changes in the capital management process during the periods presented.

8.14.6 Institutional Set Up for Liquidity Risk Management

The Liquidity Risk management of the Company is governed by the Liquidity Risk Management Framework and Asset & Liability Management(ALM) Policy approved by the Board. The Board of Directors of the Company has the overall responsibility for management of liquidity risk. The Board decides the strategy, policies and procedures to manage liquidity risk in accordance with the liquidity risk tolerance/limits approved by it. The Risk Management Committee of Directors (RMCD) is responsible for evaluating the overall risks faced by the company including liquidity risks. The Asset Liability Management Committee (ALCO) is responsible for ensuring adherence to the liquidity risk tolerance/limit set by the Board as well as implementing the liquidity risk management strategy. The role of ALCO with respect to liquidity risk includes, inter alia, decision on desired maturity profile and mix of incremental assets and liabilities, responsibilities and controls for managing liquidity risk and overseeing the liquidity positions at an entity level.

In terms of the requirement as per RBI notification no. RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 on Implementation of Indian Accounting Standards, NBFCs are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and IRACP norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the Company exceeds the total provision required under IRACP as at March 31, 2025 and accordingly, no amount is required to be transferred to impairment reserve.

55 In the opinion of the Management, the All Financial Assets,including Loans & Advances, have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and necessary provision has been made in the cases wherever it is considered as doubtful.

56 Miscellaneous Expenses do not include items of expenses exceeding 1% of the total revenue of the company or Rupees Ten Lakh which ever is higher.

57 Figures in Financial Statements have been rounded off to the nearest lakh (except number of shares) and previous years figures have been re-grouped, re-arranged wherever necessary to make them comparable with those of the current year''s figures.

58 TFCI has availed financial assistance from banks and financial institutions against the security of loan receivables. TFCI submits their statement of loan outstanding and other required return certified by management on monthly basis and duly certified by statutory auditors on quarterly basis. These statements are in agreement with the books of accounts.

---

Mar 31, 2024

Operating Segments (Ind AS - 108)

a) Based on the "Management Approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on an analysis of various performance indicators by business segments. The Managing Director (MD) /Whole Time Director (WTD) has been identified as CODM. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segment, and are as set out in the significant accounting policies.

b) The company operates in a single segment namely "Financing and Investment Activities" taking into account the different risks and returns, the organisational structure and the internal reporting systems.

c) Entity-Wide Disclosures-

(i) Information about major customers

The company is not reliant on single customer for revenue and hence revenue from no single external customer amounts to 10 per cent or more of an entity''s revenues.

(ii) Geographical Information

Geographical Loaction wise details of Non Current Assets and Revenue from Customers.

1. Description of Leases

The Company''s significant leasing arrangements is in respect of leases of premises for office use in Mumbai. The tenure of lease arangements is for 5 years ending on 9th January 2028. Under lease arrangement, refundable interest-free security deposit of ''9.90 lakh has been provided to the Lessor. The company has applied the incremental borrowing rate to lease liabilities recognised in the balance sheet at the date of initial application.

2. Maturity analysis of lease liabilities

The tables below shows the company''s financial liabilities into relevant maturity groupings based on their contractual maturities for undiscounted cash flows.

Fair value measurements under Ind AS are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value are observable and significance to the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at measurement date.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) that the Company can access at measurement date.

ii Significant estimates and judgements Impairment of financial assets:-

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the company''s history for past 10 years, existing market conditions as well as forward looking estimates at the end of each reporting period.

Where PV recovery is the sum of discounted cash flows of the recovery made (discounted at weighted average cost of borrowings).

It is presumed that there is increase in credit risk whenever past dues exceed 30 days, however the presumption is rebuttable if there are sufficient at supportable information that demonstrates that the credit risk has not increased despite past overdues exceeding 30 days but less than 60 days, such as availability of tangible security, confirmed availability of buyer/auction price for exceeding the value of the loan asset. All such cases are reviewed by the Audit Commitee of the Board before finalisation.

Further, Wherever the management believes that there is increase in credit risk, the company may provide additional ECL over and above the stagewise ECL requirement.

The amount and type of collateral required depends on an assessment of the credit risk of the counterparty. Guidelines are in place covering the acceptability and valuation of each type of collateral.

The main types of collateral obtained are, as follows:

- For project lending to hotel/other tourism sector, Exclusive/first Pari-passu charge on project assets alongwith mortgage of land and building and hypothecation of movables.

- For manufacturing lendings, the security cover by means of charge on net fixed assets/project assets of the borrower company should be atleast 1.5 times or by way of charge on collateral immovable assets based on distress sale value Management monitors the market value of collateral and will request additional collateral in accordance with the underlying agreement.

(B) Liquidity risk

Liquidity is the risk that suitable sources of funding for Company''s business activities may not be available. The Company''s objective is to maintain optimum level of liquidity to meet its cash requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It also maintains adequate sources to finance its short term and long term fund requirement suchas overdraft facility and Long term borrowing through domestic market.

(ii) Maturity profile of financial liabilities

The tables below analyse the company''s financial liabilities into relevant maturity companyings based on their contractual maturities for: all non-derivative financial liabilities for which the contractual maturities are essential for an understanding of the timing of the cash flows:-

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant :-

(C) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk :- interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings.

(i) Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the long term loans with floating interest rates. The Company manages its interest rate risk according to its Board approved Interest Rate Risk Management policy''. Market interest rate risk is mitigated by proper review of market conditions, factors etc.

The company''s borrowings are carried at amortised cost.

The fixed costs borrowings are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

iii Price risk

(a) Exposure

The company''s exposure to equity securities price risk arises from investments held by the company and classified in the balance sheet either as fair value through OCI or at fair value through profit or loss To manage its price risk arising from investments in equity securities, the company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the company

(b) Senstivity

Company has insignificant investment in indexed linked equity and also there is no significant change in movement in last two years. Hence, sensitivity not required to be disclosed.

Profit for the period would increase/decrease as a result of gains/losses on equity securities classified as fair value through profit or loss. Other components of equity would increase/decrease as a result of gains/losses on equity instrument classified as fair value through other comprehensive income.

Capital Management (Ind AS -1)

The primary objective of the Company''s capital management policy is to ensure compliance with regulatory capital requirements. In line with this objective, the Company ensures adequate capital at all times and manages its business in a way in which capital is protected, satisfactory business growth is ensured, cash flows are monitored, borrowing convenants are honoured and ratings are maintanied.

Regulatory capital-related information is presented as part of the RBI mandated disclosures. The RBI norms require capital to be maintained at prescribed levels. In accordance with such norms, Tier I capital of the company comprises of share capital, share premium, reserves and perpetual debt, Tier II capital comprises of subordinated debt and provision on loans that are not credit-impaired. There were no changes in the capital management process during the periods presented.

46 Approval of Financial Statements (Ind AS - 10)

These financial statements are approved by the Board of Directors and authorized for issue on May 17, 2024

47 Recent Accounting Pronouncements (Ind AS - 8) :

No New/Amended Standard have been issued which will have any impact on the financial statement of the company.

48 Non-current Assets Held for Sale (Ind AS - 105)

The company has property consisting Land & Building having carrying value of ''530.99 lakh (Land ''133.84 lakh & building ''397.15 lakh) as on 31 March 2024 at "Mussoorie". The company is in the process to sale of this asset, accordingly the property has been classified as "Non-current asset held for Sale". The estimated market value of this property is ''750.00 lakh and the appropriation of its sale proceeds shall be subject to the decision on our appeal in MPID Court/Bombay High Court.

8.14.6 Institutional Set Up for Liquidity Risk Management

The Liquidity Risk management of the Company is governed by the Liquidity Risk Management Framework and Asset & Liability Management(ALM) Policy approved by the Board. The Board of Directors of the Company has the overall responsibility for management of liquidity risk. The Board decides the strategy, policies and procedures to manage liquidity risk in accordance with the liquidity risk tolerance/limits approved by it. The Risk Management Committee of Directors (RMCD) is responsible for evaluating the overall risks faced by the company including liquidity risks. The Asset Liability Management Committee (ALCO) is responsible for ensuring adherence to the liquidity risk tolerance/limit set by the Board as well as implementing the liquidity risk management strategy. The role of ALCO with respect to liquidity risk includes, inter alia, decision on desired maturity profile and mix of incremental assets and liabilities, responsibilities and controls for managing liquidity risk and overseeing the liquidity positions at an entity level.

In terms of the requirement as per RBI notification no. RBI/2019-20/170 DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 on Implementation of Indian Accounting Standards, NBFCs are required to create an impairment reserve for any shortfall in impairment allowances under Ind AS 109 and IRACP norms (including provision on standard assets). The impairment allowances under Ind AS 109 made by the Company exceeds the total provision required under IRACP as at March 31, 2024 and accordingly, no amount is required to be transferred to impairment reserve.

56 In the opinion of the Management, the All Financial Assets,including Loans & Advances, have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and necessary provision has been made in the cases wherever it is considered as doubtful.

57 Miscellaneous Expenses do not include items of expenses exceeding 1% of the total revenue of the company or Rupees Ten Lakh which ever is higher.

58 Figures in Financial Statements have been rounded off to the nearest lakh (except number of shares) and previous years figures have been re-grouped, re-arranged wherever necessary to make them comparable with those of the current year''s figures.

59 TFCI has availed financial assistance from banks and financial institutions against the security of loan receivables. TFCI submits their statement of loan outstanding and other required return certified by management on monthly basis and duly certified by statutory auditors on quarterly basis. These statements are in agreement with the books of accounts.

---

Mar 31, 2023

2.17 Provisions, Contingent Liabilities and Contingent

Assets

2.17.1 Provisions

A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Provisions are determined based on the best estimate required to settle the obligation at the Balance Sheet date.

2.17.2 Contingent Liabilities

Contingent liabilities are not recognized but disclosed in Notes when the company has possible obligation due to past events and existence of the obligation depends upon occurrence or non-occurrence of future events not wholly within the control of the company. Contingent liabilities

are assessed continuously to determine whether outflow of economic resources have become probable. If the outflow becomes probable, then relative provision is recognized in the financial statements.

2.17.3 Contingent Assets

Contingent Assets are not recognized but disclosed in Notes which usually arise from unplanned or other unexpected events that give rise to the possibility of an inflow of economic benefits.

Contingent assets are assessed continuously to determine whether inflow of economic benefits becomes virtually certain, then such assets and the relative income will be recognized in the financial statement.

2.18 Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

37 Operating Segments (Ind AS - 108)

a) Based on the "Management Approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on an analysis of various performance indicators by business segments. The Managing Director (MD) /Whole Time Director (WTD) has been identified as CODM. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual business segment, and are as set out in the significant accounting policies.

b) The company operates in a single segment namely "Financing and Investment Activities" taking into account the different risks and returns, the organisational structure and the internal reporting systems.

c) The Company has filed an application with Registrar of Companies - Delhi & Haryana on 28.10.2022 for striking/removal of the name of its wholly owned subsidiary TFCI Capital Limited, which was promoted on 12.07.2019 and had not commenced business, under section 248(2) of Companies Act 2013. The application for striking-off the name of TFCI Capital Limited was approved by ROC on 23.03.2023.

d) Entity-Wide Disclosures-

(i) Information about major customers

The company is not reliant on single customer for revenue and hence revenue from no single external customer amounts to 10 per cent or more of an entity''s revenues.

56 In the opinion of the Management, the All Financial Assets,including Loans & Advances, have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and necessary provision has been made in the cases wherever it is considered as doubtful.

57 Miscellaneous Expenses do not include items of expenses exceeding 1% of the total revenue of the company or Rupees Ten Lakh which ever is higher.

58 Figures in Financial Statements have been rounded off to the nearest lakh (except number of shares) and previous years figures have been re-grouped, re-arranged wherever necessary to make them comparable with those of the current year''s figures.

59 TFCI has availed financial assistance from banks and financial institutions against the security of loan receivables. TFCI submits their statement of loan outstanding and other required return certified by management on monthly basis and duly certified by statutory auditors on quarterly basis. These statements are in agreement with the books of accounts.

60 Covid-19 pandemic has resulted in significant volatility in Global and Indian economy; however, Covid-19 has been controlled and is no longer a pandemic. Based on the post Covid-19 economic indicators and future estimates, the Company does not envisage any significant impact on its operations and financials.

As per our report of even date for and on behalf of the Board

for M Verma & Associates

Chartered Accountants (Bapi Munshi) (S. Ravi)

Firm Reg. No: 501433C Director Non Executive Chairman

(CA Mohender Gandhi)

Partner (Sanjay Ahuja) (Anoop Bali)

M.No.088396 Company Secretary Whole Time Director & CFO

Date : May 20, 2023

Place : New Delhi

---

Mar 31, 2018

1 The Company is engaged mainly in the business of financing. Since all activities are related to the main activity, there are no reportable segments as per Accounting Standard Segment Reporting (AS-17)

2 The Board of Directors have recommended dividend on equity share at Rs.2/- per share at their meeting held on 26 May 2018. As per Companies (Accounting Standard) Amendment Rules 2016, the dividend will be recorded after approval of shareholders in ensuing AGM.

3 Capital Commitments: NIL (Previous Year: Rs. 21,28,513/-)

4 Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with the current year''s figures

5 There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2018. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 Disclosure required in Accordance with AS-19 - Leases A. Assets taken on operating lease:

1. The Company has taken Office Premises on non-cancellable operating lease. Minimum lease payments of Rs. 5,01,980/- (P.Y. Rs.4,12,55,787/-) are charged to Statement of Profit & Loss during the year.

2 Future commitments in respect of minimum lease rentals payable in respect of aforesaid lease entered by the Company are as follows:

---

Mar 31, 2017

1. Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with the current year''s figures.

2. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 3} 207. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. Disclosure required in Accordance with AS-19 - Leases A. Assets taken on operating lease:

4. The Company has taken Office Premises on non-cancellable operating lease. Minimum lease payments of Rs,4,255,787/- (P.Y. Rs,4,63,29,203/-) are charged to Statement of Profit & Loss during the year.

---

Mar 31, 2016

1. Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with the current year''s figures.

2. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for r 45 days as at March 206. This information as required to be disclosed under the Micro, Small and M Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company._

3. Disclosure required in Accordance with AS-19 - Leases A. Assets taken on operating lease:

4. The Company has taken Office Premises on non-cancellable operating lease. Minimum lease payments of ''^^^IB/- (P.Y. ''4,07,29,728/-) are charged to Statement of Profit & Loss during the year.

5. Future commitments in respect of minimum lease rentals payable in respect of aforesaid lease entered by the Company are as follows:

6. The additional information required to be disclosed vide RBI norms - as certified by the management

7. Rating Assigned By Credit Rating Agencies for the Bonds/Borrowings of TFCI

-Credit Analysis & Research Ltd (CARE)CARE A (reaffirmed vide letter dated 18.08.2015) -Brickworks Ratings (India) Pvt. Ltd. BWR AA (reaffirmed Vide letter dated 16.10.2015) -Smear Ratings Ltd. SMERA AA (reaffirmed Vide letter dated 05.08.2015)

-No Migration of Ratings took place during the year

8. No Penalty is levied by any regulator during the year.

---

Mar 31, 2015

1. Terms / rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share

2. Contingent liabilities not provided for where order of CIT(Appeals)/ITAT, in similar matters, in previous years, are in favour of the TFCI Income Tax 10,31,69,782 11,93,52,077

3. The Company is engaged mainly in the business of financing. Since all activities are related to the main activity, there are no reportable segments as per Accounting Standard Segment Reporting (AS-17)

4. Related Party Disclosure

As per Accounting Standard - 18, the Company's related parties and transactions are disclosed below :

5. Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with the current year's figures

6. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Disclosure required in Accordance with AS-19 - Leases A. Assets taken on operating lease:

a. The Company has taken Office Premises on non-cancellable operating lease. Minimum lease payments of Rs.4,07,29,728/- (P.Y. Rs.3,84,69,409/-) are charged to Statement of Profit & Loss during the year.

8. The additional information required to be disclosed vide RBI norms - as certified by the management

a. Rating Assigned By Credit Rating Agencies for the Bonds/Borrowings of TFCI

* Credit Analysis & Research Ltd (CARE) : CARE A (reaffirmed vide letter dated 31.10.2014)

* Brickworks Ratings (India) Pvt. Ltd. : BWR AA (reaffirmed Vide letter dated 25.11.2014)

* No Migration of Ratings took place during the year

b. No Penalty is levied by any regulator during the year.

---

Mar 31, 2014

1. The ALM Statement has been prepared as per RBI Guidelines.

2. The Company is engaged mainly in the business of financing. Since all activities are related to the main activity, there are no reportable segments as per Accounting Standard Segment Reporting (AS-17)

3. The two accounts out of three restructured in F.Y. 2012-13 (agreegate outstanding Rs.91,17,50,000) have been regularised, However as per RBI guidelines, the provision against the principal outstanding of Rs.83,42,50,000 as on 31.03.2014 have been provided @ 3.50% instead of 2.75% in previous year. The accounts would be upgraded after 2 years from the date of restructuring and provision would be reversed.

4. As per RBI Circular No. DBOD No.BP.BE 77/21.04.018/2013-14 dated 20th Dec 2013, TFCI has recognised Deferred Tax Liability (DTL) on special reserve created under Sec 36(1)(viii) of the Income Tax Act by debiting the P&L a/c for the current financial year. However, for the amount allowed by the assessing officer in the respective previous years, deferred tax liability has been created by debiting the General Reserve.

5. Contingent liabilities not provided for where order of CIT(Appeals)/ITAT, in similar matters, in previous years, are in favour of the TFCI

---

Mar 31, 2013

1 The Company is engaged mainly in the business of fnancing. Since all activities are related to the main activity, there are no reportable segments as per Accounting Standard Segment Reporting (AS-17)

2 During the year, 3 cases have been restructured under the Corporate Debt restructuring mechanism involving principal amount of Rs.91,17,50,000. The restructuring involves basically deferrement of recovery of principal dues, in view of the prevailing diffcult market conditions and in all the cases, the present NPV has been protected. In one case, pending documentation, the approved scheme is yet to be implemented and status quo as on 1st October 2012 has been maintained. The accounts have been treated as ''''Standard Assets''''

3 Previous year fgures have been regrouped / rearranged wherever considered necessary to make them comparable with the current year''s fgures

4 There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identifed on the basis of information available with the Company.

5 Disclosure required in Accordance with AS-15 - Employees Benefts

a) Defned Contribution Plans:

The Company has recognised Rs.33,20,123/- (P.Y. Rs.32,50,449/-) as expense in Statement of Proft & Loss.

b) Defned Beneft Plans:

Gratuity – As per actuarial valuations as on March 31, 2013 and recognized in the fnancial statements

5.1 Break up of Leased Assets and stock on hire and other assets counting towards AFC activities : NIL

5.2 Exposure to Real Estate Sector : Rs. 35.00 crores (Previous Year : NIL)

---

Mar 31, 2012

1 CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

Income Tax 7,61,35,497 5,03,08,913

2 The Company is engaged mainly in the business of financing. Since all activities are related to the main activity, there are no reportable segments as per Accounting Standard on Segment Reporting (AS-17) 30 Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with the current year's figures

There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3.1 Break up of Leased Assets and stock on hire and other assets counting towards AFC activities : NIL

---

Mar 31, 2011

1. Contingent liabilities not provided for in respect of:

(Rs. in lacs) As at As at 31.3.2011 31.3.2010

Income Tax 509.30 71.13

2. Segment Reporting:

The Company is engaged mainly in the business of fnancing. Since all activities are related to the main activity, there are no reportable segments as per Accounting Standard on Segment Reporting (AS-17).

3. Related Party Disclosure

As per Accounting Standard – 18, the Company's related parties and transactions are disclosed below:

A. List of related parties & relationships, where control exists:

1. Related Parties Relation

IFCI Ltd. (Investing Company) - Associate

North-East Tourism Dev. - Associate Corporation Pvt. Ltd.

Shell Inn International Limited - Associate (w.e.f 15.03.2011)

2. Key Managerial Personnel Relation

Mrs. Archana Capoor - Chairman & Managing Director

B. Transactions with related parties & key managerial personnel:

1. Related Parties :-

(a) IFCI Ltd. Dividend Paid -Rs. 328.04 lacs (P.Y Rs. 254.22 lacs) Dividend Received - Rs.0.20 lacs (P.Y Rs.0.20 lacs) Rent & Other Charges Paid - Rs.0.89 lacs (P.Y Rs.0.89 lacs)

(b) Shell Inn Interest on Loans - Rs.18.17 lacs International Limited Outstanding Rupee Loan - Rs. 3000.00 lacs

2. Key Managerial Mrs. Archana Capoor : - Remuneration Personnel :- Paid - Rs. 47.71 lacs (P.Y Rs. 32.97 lacs) Staff Loan Outstanding - Rs.12.29 lacs (P.Y Rs. 16.04 lacs)

4. Capital Commitments: NIL (Previous Year Rs. 31.95 Lacs)

5. Interest on deposits in income from operations includes proft on sale of units of Debt based Mutual Funds of Rs.391.61 lacs (P. Y. Rs.342.38 lacs)

6. Previous year fgures have been regrouped / rearranged wherever considered necessary to make them comparable with the current year's fgures.

7. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

8. Unclaimed dividend from 2004 onwards amounting to Rs.74,58,371 (P.Y. Rs.66,48,616) is deposited with Scheduled Banks. No amount is due/outstanding to be paid/credited to Investor Education & Protection Fund as on 31st March 2011

9. The additional information required to be disclosed vide RBI norms - as certified by the management.

9.1. Break up of Leased Assets and stock on hire and other assets counting towards AFC activities : NIL

9.2 Exposure to Real Estate Sector : NIL

---

Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

(Rs. in lacs) As at 31.3.2010 As at 31.3.2009

Sales Tax NIL 9.33

Income Tax matters pending in appeals against which no provision has been made amounts to Rs.71.13 lakhs (previous year-Rs.57 lakhs) in view of favourable decisions of I.T.A.T.

2. Segment Reporting:

The Company is engaged mainly in the business of financing tourism-related projects. Since all activities are related to the main activity, there are no reportable segments as per Accounting Standard on Segment Reporting (AS-17).

3. Related Party Disclosure

As per Accounting Standard – 18, the Companys related parties and transactions are disclosed below:

A. List of related parties & relationships, where control exists:

1. Related Parties Relation

IFCI Ltd. (Investing Company) - Associate

North-East Tourism Dev. Co. Pvt. Ltd. - Associate

2. Key Managerial Personnel Relation

Mrs. Archana Capoor - Chairman & Managing Director

B. Transactions with related parties & key managerial personnel:

1. Related Parties :- IFCI Ltd.:- Dividend Paid - Rs.254.22 lacs (P.Y Rs.226.39 lacs)

Dividend Received - Rs.0.20 lacs (P.Y Rs.0.20 lacs)

Rent & Other Charges Paid – Rs.0.89 lacs (P.Y Rs.65.65 lacs)

2. Key Managerial Personnel :- Mrs. Archana Capoor: - Remuneration Paid - Rs.32.97 lacs (P.Y Rs.25.07 lacs) Staff Loan Outstanding - Rs. 16.04 lacs (P.Y Rs.15.09 lacs)

4. Capital Commitments:

Company has Incurred Capital expenditure of Rs. 84.98 lacs during F.Y. 2009-10 for upgradation of its office at Scope Minar, Laxmi Nagar, Delhi, which includes lift replacement, power back up etc. An amount of Rs. 31.95 lacs is estimated to be incurred during next year on the same.

5. Interest on deposits in income from operations includes profit on sale of units of Debt based Mutual Funds of Rs.342.38 lacs (P. Y. Rs.463.40 lacs)

6. Previous year figures have been regrouped / rearranged wherever considered necessary to make them comparable with the current years figures.

7. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

8. Exposure to Real Estate Sector : NIL

Schedules A to N form an integral part of accounts and have been duly authenticated.