i

BOARD OF DIRECTORS
Mr. Rahul Bhave, Non-Executive Chairman Mr. Anish Babu Venugopal, Managing Director
Mr. Prasoon, Nominee Director Mr. Arvind Kumar Jain, Non-Executive Director
Mr. Ajay Kumar Kapur, Non-Executive Director Ms. Tripti Somani, Non-Executive Director
Mr. Gauri Shankar, Non-Executive Director

CHIEF FINANCIAL OFFICER COMPANY SECRETARY

Ms. Indu Gupta Mr. Rachit Tandon

AUDITORS

STATUTORY AUDITORS SECRETARIAL AUDITORS

M D Gujrati & Co. Saurabh Agrawal & Co.
Chartered Accountants Company Secretaries
J-8, Green Park Ext 403, Nirmal Tower,
New Delhi- 110016 26 Barakhamba Road,
Connaught Place,
New Delhi-110 001

BANKERS REGISTRAR

Axis Bank Ltd MCS Share Transfer Agent Limited

HDFC Bank Ltd F-65, 1st floor Okhla Industrial Area, Phase I,
State Bank of India New Delhi -110 020
IDBI Bank

DEBENTURE TRUSTEE

Vistra ITCL (India) Limited

IL&FS Financial Centre, Plot C-22, G Block,
Bandra-Kurla Complex,
Bandra East, Mumbai-400 051

REGISTERED OFFICE

IFCI Tower,
61, Nehru Place,
New Delhi - 110 019.
Tel (011) 41732511, 41732525
Fax (011) 26453348
Website: www.ifciventure.com
E-Mail: [email protected]
 CONTENTS PAGE NO

Notice ................................................................................................................................................................... 1

Directors’ Report ................................................................................................................................................ 6

Policy on Dealing with Related Party Transactions ........................................................................................ 20

Corporate Social Responsibility ...................................................................................................................... 22

Secretarial Audit Report (MR-3) ..................................................................................................................... 25

Comments of Comptroller and Auditor General of India............................................................................. 29

Report on Corporate Governance .................................................................................................................. 32

Independent Auditors’ Report ......................................................................................................................... 42

Balance Sheet .................................................................................................................................................... 53

Profit & Loss Account ....................................................................................................................................... 54

Cash Flow Statement ....................................................................................................................................... 55

Significant Accounting Policies & Notes to the Financial statements.......................................................... 59

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 NOTICE OF ANNUAL GENERAL MEETING

NOTICE is hereby given that the THIRTY SIXTH ANNUAL GENERAL MEETING OF THE MEMBERS OF IFCI VENTURE
CAPITAL FUNDS LIMITED (IFCI VENTURE) will be held on Tuesday, September 24, 2024 at 3:00 P.M., through Video
Conferencing (VC)/ Other Audio Video Means (OAVM), at the Registered Office of the Company situated at IFCI Tower,
61, Nehru Place, New Delhi - 110 019, to transact the following business(es):

ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Balance Sheet as on March 31, 2024 and the Profit & Loss Account for
the year ended March 31, 2024, and the Reports of the Board of Directors and Auditors thereon, and in this regard,
shall pass the following resolution as Ordinary Resolution:

“RESOLVED THAT the Audited Balance Sheet of the Company as at March 31, 2024 and the Profit & Loss
Account for the Financial Year ended March 31, 2024, together with the Directors’ Report and the Auditors’ Report
thereon, be and are hereby, received, considered and adopted.”

2. To appoint Director(s) in place of Ms. Tripti Somani, Non-Executive Director and who retires by rotation and being
eligible offer herself for re-appointment.

To consider and, if thought fit, pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Sections 152 and any other applicable provisions of the
Companies Act, 2013 and the rules made thereunder (including any statutory modification(s) or re-enactment
thereof for the time being in force), Ms. Tripti Somani (holding DIN 06764190), who retires by rotation and being
eligible for re-appointment be and is hereby re-appointed as Non-Executive Director of the Company whose office
shall be liable to retirement by rotation.”

3. To fix the remuneration of Statutory Auditors and, if thought fit, pass the following resolution as an Ordinary
Resolution:

“RESOLVED THAT pursuant to the provisions of Section 139, 142 and any other applicable provisions of
Companies Act, 2013 and the rules made thereunder (including any statutory modification(s) or re-enactment
thereof for the time being in force), the Board of Directors of the Company, be and is hereby, authorized to fix
the remuneration including out of pocket expenses, if any, to be payable to Statutory Auditors of the Company as
appointed by the Comptroller and Auditor General of India for the Financial Year 2024-25.”

SPECIAL BUSINESS

4. Appointment of Mr. Gauri Shankar (DIN:06764026) as Non-Executive Director of the Company.

To consider, and if thought fit, pass the following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 149, 152 read with Section 161 and any other
provisions of the Companies Act, 2013 read with rules made thereunder (including any statutory amendment(s),
modification(s), variation or re-enactment thereof, for the time being in force), Mr. Gauri Shankar (DIN: 06764026),
who was appointed as an Additional Director under the category of Non-Independent Director on the Board of the
Company w.e.f. October 09, 2023 to hold office up to the date of this Annual General Meeting of the Company and
in respect of whom a notice in writing pursuant to Section 160 of the Companies Act, 2013, has been received in the
prescribed manner, be and is hereby appointed as Non-Executive Director under the category of Non-Independent
Director liable to retire by rotation on Board of the Company.”

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 “RESOLVED FURTHER THAT Managing Director and Company Secretary, be and are hereby, authorized to
do all such acts, deeds and things necessary in this behalf and to file necessary particulars with the Registrar of
Companies, NCT of Delhi & Haryana.”

By order of the Board of Directors

For IFCI Venture Capital Funds Ltd

Sd/-
(Rachit Tandon)
Company Secretary
Place: New Delhi
Date: August 06, 2024

Notes:

1. The Ministry of Corporate Affairs (MCA), vide its General Circular No. 20/2020 dated 5th May, 2020 read with
the subsequent circulars issued from time to time, the latest one being General Circular No. 09/2023 dated 25th
September, 2023 (MCA Circulars), and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2023/167 dated October
7, 2023 has allowed the Companies to conduct the Annual General Meeting (AGM) through Video Conferencing
(VC) or Other Audio-Visual Means (OAVM) till 30th September, 2024 without the physical presence of members at
a common venue. In compliance with the provisions of the Companies Act, 2013 (the Act), SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and MCA Circulars, the 36th AGM of the
Company shall be conducted through VC/OAVM hereinafter called as ‘e-AGM’.

2. The deemed venue for thirty-sixth e-AGM shall be the Registered Office of the Company at IFCI Tower, Nehru Place,
New Delhi - 110019.

3. Attendance of the Members participating in the 36th AGM through VC/OAVM Facility shall be counted for the
purpose of reckoning the quorum under Section 103 of the Act.

4. Pursuant to the provisions of the Act, a member entitled to attend and vote at the AGM is entitled to appoint a proxy
to attend and vote on his/her behalf and the proxy need not be a member of the Company. Since this AGM is being
held pursuant to the MCA Circulars through VC/OAVM facility, physical attendance of members has been dispensed
with. Accordingly, the facility for appointment of proxies by the members will not be available for the e-AGM and
hence the Proxy Form and attendance Slip are not annexed to this Notice.

5. Institutional/Corporate shareholders (i.e. other than individuals/HUF etc.) are required to send a scanned copy (pdf/
jpg format) of its board or governing body’s resolution/authorization, etc., authorising their representative to attend
the-AGM on its behalf and to vote.The said resolution/authorization shall be sent to the Company by e-mail through
its registered email address to [email protected]

6. The facility of joining the e-AGM through VC/OAVM will be opened 15 minutes before and will be open upto 15
minutes after the scheduled start time of the e-AGM, i.e., from 2:45 p.m. to 3:15 p.m.

7. Members shall receive necessary information/procedure separately at their registered e-mail addresses to enable
them to access the audio-video facility for participation in the meeting.

8. In terms of sections 101 and 136 of the Act, read with the rules made thereunder, the companies may send the notice
of AGM and the annual report, including financial statements, boards’ report, etc. by electronic mode. Pursuant to
the said provisions of the Act read with MCA Circulars, notice of thirty-sixth e-AGM along with the Annual Report
for FY 2023-24 is being sent only through electronic mode to those members whose email addresses are registered
with the Company. Members may note that the Notice and Annual Report for FY 2023-24 will also be available on
the Company’s website at www.ifciventure.com

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9. Members are informed that in case if a demand for poll is made by any member in respect to any item, the members
shall cast their vote on the resolutions only by sending emails through email addresses which are registered with the
company.The voting shall be sent to the Company by e-mail through its registered email address to [email protected]

10. Members who have not registered their e-mail addresses so far are requested to register their e-mail address for
receiving all communication including Annual Report, Notices, Circulars, etc. from the Company electronically.

11. Members are requested to kindly communicate immediately any change in their address, if any, to the Managing
Director/Company Secretary at the Registered Office of the Company.

12. Members are requested to support our commitment to environment protection by choosing to receive the
Company’s communication through email going forward.

13. The Register of Directors and Key Managerial Personnel and their Shareholding maintained under Section 170 of
the Companies Act, 2013; the Register of Contracts or Arrangements in which Directors are interested maintained
under Section 189 of the Companies Act, 2013 shall be made available for inspection through electronic mode and
shall remain open and be accessible to any member during the continuance of the meeting.

14. Since the meeting will be conducted through VC/OAVM facility, the route map is not annexed to this Notice.

Details of Directors seeking Appointment / Re-appointment at the ensuing Annual General Meeting, pursuant to Secretarial
Standard – 2 issued by the Institute of Company Secretaries of India are as under:

PROFILE OF DIRECTORS SEEKING APPOINTMENT / RE-APPOINTMENT AT THIS ANNUAL

GENERAL MEETING
Name of the Director Ms. Tripti Somani Mr. Gauri Shankar
Directors 06764190 06764026
Identification
Number (DIN)
Date of Birth 15.07.1985 25.03.1956
Date of First September 11, 2022 October 09, 2023
Appointment on the
Board
Profile / Expertise in Ms. Tripti Somani graduated from SRCC and Mr. Gauri Shankar holds bachelor’s degree
Specific functional did a Master of business law from National in science and commerce; He has over
Areas. Law School Bangalore. She is a professional 42 years’ of experience in Banking and
Chartered Accountant with 15 years of Finance and served as Managing Director
experience but a social entrepreneur at and Chief Executive officer of Punjab
heart. She started Womennovator in 2015, a National Bank in 2015. He was also the
social impact incubator & platform to foster Executive Director of the same Bank.
women entrepreneurship. She have progressive Prior to this, he worked in Bank of India in
experience in profit and non-profit organizations various positions, which include General
both large and SMEs including business and Manager of various Departments viz,
financial advisory for various organizations Finance (CFO), National Banking Group
such as PwC, Grant Thornton (GT) & World North (Operations), Asset Recovery,
Bank. She is a CEO of KGS Advisors, a Financial Learning and Development (HR) and
advisory firm and founder and Co-founder of Strategy and Planning. Mr. Shankar has vast
Womennovator, Gvriksh, Queens XI Cricket experience in domestic and international
League and Ex- Chairperson and Ex- Co- operations. Worked in Bank of India’s
Chairperson of Women Entrepreneurship Singapore and Jakarta Operations.
Committee and MSME Committee – PHDCCI His forte is Finance, Strategy and HR
from PHD Chamber of Commerce and industry, Development. He also worked as DGM
ASSOCHAM, MEPSC Skill Council. She served and Zonal Manager of Lucknow Zone.
on the governing council of NIESBUD, Ministry While in PNB, he was Chairman of PNB’s
of Skill development and entrepreneurship, and wholly owned subsidiary Punjab National
also acted as board member to companies like Bank (International) Limited, London
SMC food (Madhusudan) and many more. and director on other subsidiaries and

3
 Whether related to No No (for different periods) namely PNB
JVs
any Board Members, Housing Finance Limited, PNB Gilts Ltd.
Manager or KMP of and Punjab National Bank Kazakhstan.
the Company
Qualifications Masters of Business Law -National Law School B.Sc & B.Com,(University of Delhi)
Bangalore CAIIB-I (Indian Institute of Bankers)
Chartered Accountant, ICAI
List of Directorship in - Creamy Foods Limited - PNC Infratech Ltd
other Companies - SMC Foods Limited - Paisalo Digital Ltd
- Ravine Creations Private Limited - Mohit Minerals Ltd
- Universal Fingrowth Pvt Ltd
- Association of Women in Business
- Infomerics Valuation & Ratings Pvt
- Council for Redressal and Development of
Ltd.
Industries in India
- Womennovator Virtual Incubator LLP
- Elecbits Labs LLP
- Craftpreneur Artisanat LLP
- K G Somani & Co LLP
Membership of Nil - PNC Infratech Pvt Ltd
Committee of the 1. ACB (Member)
Board in other 2. Risk Management Committee
Companies. (Member)
3. NRC (Member)

- Paisalo Digital Ltd

1. ACB (Chairman)
2. Risk Management Committee
(Chairman)
No. of Equity Shares Nil Nil
held
No. of Board 3 2
Meetings attended/
entitled to attend
during the year

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 EXPLANATORY STATEMENT
(PURSUANT TO SECTION 102 OF THE COMPANIES ACT 2013)

Item No. 4

Mr. Gauri Shankar (DIN: 06764026) aged 68 years is a Non-Executive Non-Independent Director of the Company. Mr.
Gauri Shankar was appointed as an Additional Director by the Board of Directors of the Company w.e.f. October 09,
2023.

Under Section 161 of the Companies Act, 2013 read with Article 110(10)(a) of the Articles of Association of the Company,
Mr. Gauri Shankar holds office only up to the date of this Annual General Meeting of the Company. A notice has been
received proposing candidature of Mr. Gauri Shankar for the office of Director of the Company and his appointment has
been recommended by Nomination & Remuneration Committee.

Mr. Gauri Shankar holds bachelor’s degree in science and commerce; He has over 42 years’ of experience in Banking
and Finance and served as Managing Director and Chief Executive officer of Punjab National Bank in 2015. He was
also the Executive Director of the same Bank. Prior to this, he worked in Bank of India in various positions, which
include General Manager of various Departments viz, Finance (CFO), National Banking Group North (Operations), Asset
Recovery, Learning and Development (HR) and Strategy and Planning. Mr. Shankar has vast experience in domestic and
international operations. Worked in Bank of India’s Singapore and Jakarta Operations. His forte is Finance, Strategy and
HR Development. He also worked as DGM and Zonal Manager of Lucknow Zone. While in PNB, he was Chairman of
PNB’s wholly owned subsidiary Punjab National Bank (International) Limited, London and director on other subsidiaries
and JVs (for different periods) namely PNB Housing Finance Limited, PNB Gilts Ltd. and Punjab National Bank Kazakhstan.

The Board considered that given his vast and diverse experience, the Company would benefit under his guidance.
Accordingly, the Board recommends the resolution in relation to appointment of Mr. Gauri Shankar as a Non-Executive
Director under the category of Non-Independent Director liable to retire by rotation on Board of the Company, for the
approval of the shareholders of the Company.

He will be eligible to pay the sitting fees for attending Board and Committee Meetings, in compliance with the provisions
of the Companies Act, 2013 and directions of the Board prevailing from time to time. He is not holding any shares in the
Company. He is not having any relationship with other directors, manager and Key Managerial Personnel of the Company.
Details of his other Directorships and Membership/ Chairmanship of Committees of other Boards are forming part of
this Notice.

Except Mr. Gauri Shankar, being an appointee, none of the Directors and Key Managerial Personnel of the Company and
their relative(s) is/ are concerned or interested, financially or otherwise, in the resolution set out in Item No. 4.

Note: Articles of Association of the Company and all other documents related to appointment of Mr. Gauri Shankar shall
be made available for inspection through electronic mode and shall remain open and be accessible to any member during
the continuance of the meeting.

By order of the Board of Directors

For IFCI Venture Capital Funds Ltd.
Sd/-
(Rachit Tandon)
Company Secretary
Place: New Delhi
Date: August 06, 2024

5
 DIRECTORS’ REPORT

TO THE MEMBERS OF IFCI VENTURE CAPITAL FUNDS LIMITED

The Board of Directors of your Company are pleased to present the Thirty Sixth Annual Report of IFCI Venture
Capital Funds Limited (the Company) together with the Report on Corporate Governance and Audited Financial
Statements for the Financial Year ended March 31, 2024.

1. FINANCIAL RESULTS AND STATE OF COMPANY’S AFFAIRS

The financial results of your Company for the Financial Year 2023-24 and 2022-23 under review are summarized in
the following table:
(Rs. in Lakhs)
Financial Year 2023-24 2022-23
(Restated)
Total Income 9856.92 4096.75
Expenditure
- Finance Cost 22.74 98.93
- Net Loss on fair value changes - 284.21
- Employee Benefit Expenses 679.08 547.80
- Impairment on financial instruments - -
- Depreciation 4.59 10.76
- Other Expenses 7769.06 2667.14
Total Expenditure 8475.47 3608.83
Profit/(loss) Before Tax 1381.45 487.92
Less: Tax Expenses 1278.29 (53.93)
Profit/(loss)for the period 103.16 541.85
Add: Other Comprehensive Income 18.42 6.97
Total Comprehensive Income for the period 121.58 548.81

Note on change in Accounting Policy

IFCI Venture has changed its accounting policy for interest accrual on stage 3 / non-performing assets (NPA), aligning
with the holding company effective from April 1, 2021 as per approval of Board. This change impacts the recognition
and write-off of interest income associated with stage 3 assets.

Policy Changes

• Recognition of Interest Income: Interest income on stage 3 assets will be recognized using the Effective
Interest Rate (EIR) method applied to the amortized cost of the underlying asset (gross assets minus Expected
Credit Loss (ECL)).

• Write-off of Interest Income: Any increase in the gross carrying amount of stage 3 assets resulting from
the application of the EIR method will be written off against the recognized interest income, if there is no
reasonable expectation of recovery.

The Management has considered that the aforesaid changes are material and as a result the financials of 31.3.2023
were also restated. Interest income for FY 2022-23 and 2021-22 has increased by INR 1,163.41 Lakhs and INR
1,266.84 Lakhs respectively. Since there is no expectation of recovery, the same has been written off as bad debts
respectively. Hence, there is no impact on Net Profit/ Net loss of these years respectively.

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2. CHANGE IN NATURE OF BUSINESS & MATERIAL CHANGES AND COMMITMENTS AFFECTING
FINANCIAL POSITION OF THE COMPANY BETWEEN THE END OF THE FINANCIAL YEAR
AND THE DATE OF THE REPORT

There has been no change in the nature of business of your Company during the reporting period. Further, apart
from above there have been no material changes and commitments which affect the financial position between the
end of the Financial Year and date of Directors’ Report.

3. DIVIDEND
No interim or final dividend has been declared for the Financial Year 2023-24.

4. TRANSFER TO RESERVES
The Company has transferred Rs. 24.32 lakh to the reserves u/s 45IC of the RBI Act, 1934 during the Financial Year
ended March 31, 2024 as your company earned profit during the year.

5. CAPITAL STRUCTURE/CHANGE IN SHARE CAPITAL

The capital structure of your Company is given as under:
Authorized Share Capital Issued, Subscribed and Paid-up Share Capital
15,00,00,000 Equity Shares of Rs.10/- each aggregating to 6,03,71,008 Equity Shares of Rs.10/- each aggregating
Rs.150,00,00,000/- to Rs.60,37,10,080/-
* During the Financial Year 2023-24, there was no change in authorised, issued, subscribed and paid-up share capital of the company.

6. DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (KMP) APPOINTED OR

RESIGNED DURING THE FINANCIAL YEAR.
During the Financial Year and till the date of signing of this report, the following changes have occurred in the
composition of the Board of Directors of your Company:

In accordance with the provisions of Companies Act, 2013 and the Articles of Association of the Company, IFCI
Ltd. the holding company; (i) has extended the deputation period of Shri V. Anish Babu, General Manager, IFCI Ltd.
as Managing Director, of IFCI Venture for a further period of one-year w.e.f. April 25, 2024. (ii) has nominated Shri.
Rahul Bhave and was appointed as a Nominee Director on the Board of the Company w.e.f. January 04, 2024 and
(iii) the nomination of Sh. Manoj Mittal, as a Nominee Director and Chairman of the Company has been withdrawn
on account of cessation of his services with IFCI Ltd w.e.f. July 27, 2024.

Shri. Gauri Shankar was appointed as Additional Director(s) w.e.f. October 09, 2023 and is proposed to be regularized
as Non-Executive Director under the category of Non-Independent Director who shall hold office up to the date
of forthcoming Annual General Meeting.

During the year, no other changes took place in the composition of the Board of Directors of the Company. The
composition of the Board of Directors of the Company is not in compliance with the applicable norms of the
Companies Act, 2013, since in terms of the Act and amendment made thereof, the Company shall have at least
two Independent Directors and as per notification dated June 05, 2015 for the induction of Independent Director
on the Board of a Government Company, opinion from concerned Ministry or parent Department of the Central
Government, which is administratively in charge of the Company or as the case may be, the State Government,
is required that the person intending to act as Independent Director shall be a person of integrity and possess
relevant expertise and experience. Therefore, the power to appoint Independent Directors vests with the Ministry
administratively in-charge of the Company i.e. Department of Financial Services, MOF. Communications have been
sent to the concerned Ministry and once the appointment of the Independent Director is made by the Department
of Financial Services, the abovementioned provisions will be complied with.

7. DIRECTOR LIABLE TO RETIRE BY ROTATION

Smt. Tripti Somani, Non-Executive Directors (holding DIN 06764190) will retire by rotation at the forthcoming
Annual General Meeting and being eligible, have offered herself for re-appointment.

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8. SECRETARIAL STANDARDS
Pursuant to the provisions of Section 118 of the Companies Act, 2013, the Company has complied with the applicable
provisions of the Secretarial Standards issued by the Institute of Company Secretaries of India.

9. NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS

During the Financial Year 2023-24, in compliance with the provisions of the Companies Act, 2013 and rules made
thereunder, 4 (four) meetings of the Board of Directors were conducted, and the details of such meetings forms part
of the Report on Corporate Governance, appearing separately in the Annual Report.

10. COMPOSITION OF AUDIT COMMITTEE OF DIRECTORS

Your Company has in place an Audit Committee of Directors, as required under the provisions of Companies Act,
2013 and other applicable regulations. However, the composition of the Audit Committee is not in compliance
with the provisions of the Companies Act, 2013 as the Company does not have any Independent Director for the
reason mentioned at point no.6 above. Composition of Audit Committee of Directors and meetings held during the
financial year alongwith the attendance forms part of Report on Corporate Governance, appearing separately in the
Annual Report.

Your directors would further like to inform that there has been no matter where the Board has not accepted the
recommendations of the Committee.

11. DISCLOSURE OF NOMINATION AND REMUNERATION POLICY

Pursuant to the provisions of the Companies Act, 2013, your Company has put in place a Nomination & Remuneration
Policy.The terms of reference of the Nomination & Remuneration Committee, meetings held during the financial year
alongwith the attendance of the members forms part of Report on Corporate Governance, appearing separately in
the Annual Report.

As per Notification dated June 05, 2015, issued by the Ministry of Corporate Affairs, Government Companies are
exempted from complying with the provisions of sub section (2), (3) and (4) of Section 178 of the Companies Act,
2013. Accordingly, your Company being a Government Company is not required to disclose the Nomination and
Remuneration Policy in the Directors’ Report.

12. POLICY ON DEALING WITH RELATED PARTY TRANSACTIONS

Your Company has formulated a Policy on Materiality of Related Party Transactions, for the purpose of identification
and dealing with related parties.The Policy on dealing with Related Party Transactions as has been uploaded on your
Company’s website at www.ifciventure.com and salient features is enclosed at Annexure I.

13. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

All Related Party Transactions were placed before the Audit Committee of Directors for approval. Prior omnibus
approval of the Audit Committee was obtained on yearly basis for the transactions which were of foreseen and
repetitive in nature. None of the Directors has any pecuniary relationship or transaction vis-à-vis the Company.

All Related Party Transactions entered during the year under report were in ordinary course of the business and at
Arm’s Length basis. No Material Related Party Transaction was entered during the year by your Company.Accordingly,
the disclosure of Related Party Transactions as required under Section 134(3)(h) of the Companies Act, 2013, in
Form AOC2 is not applicable and hence, does not form part of the Board’s Report.

14. ANNUAL RETURN

Pursuant to the provisions of the Companies Act, 2013, the Company shall place a copy of the annual return in
prescribed format on the website of the company, if any, and the web-link of such annual return shall be disclosed in
the Board’s report. The same is available on the Company’s weblink i.e. http://www.ifciventure.com/investors

15. CORPORATE SOCIAL RESPONSIBILITY

Pursuant to section 135 of the Companies Act, 2013 and rules made thereunder including amendment thereof,

8
 the brief outline of the Corporate Social Responsibility (CSR) Policy of the Company and the project/program
undertaken by the Company on CSR activities during the year are set out in Annexure II of this report in the
format prescribed in the Companies (Corporate Social Responsibility) Rules, 2014. The policy is available on the
Company’s website i.e. www.ifciventure.com.

16. PARTICULARS OF EMPLOYEES AND REMUNERATION

As per Notification dated June 5, 2015, issued by the Ministry of Corporate Affairs, Government Companies are
exempt from complying with the provisions of section 197 of the Companies Act, 2013, read with Rules made
thereunder. Accordingly, your Company being a Government Company is exempt from disclosing the information
required under the said section read with Rules made thereunder in the Board’s Report.

17. PERFORMANCE EVALUATION

The Board of Directors and Nomination & Remuneration Committee of Directors has put in place an evaluation
framework for the evaluation of the Board, its committees and of the individual Directors, in compliance with the
provisions of the Companies Act, 2013. A structured questionnaire was prepared after taking into consideration
various aspects of the Directors’ functioning such as delegation of responsibilities to the Committees, level of
Directors’ integrity and ability to handle conflict constructively, Directors acting in accordance with the provisions
of Articles of Association of the Company and the Committees’ functions in accordance with terms of reference
prescribed by the Board, etc.

The Directors expressed their satisfaction with the evaluation process.

18. DISCLOSURE AS PER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,

PROHIBITION AND REDRESSAL) ACT, 2013

Your Company has a policy on Prevention of Sexual Harassment at Workplace and is complying with the provisions
of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the Financial
Year 2023-24, no complaint was received on this ground.

19. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE

COMPANIES ACT, 2013.

As your Company is primarily engaged in the business of financing of companies in the capacity of being a Non-
Banking Financial Company, therefore the provisions of Section 186 [except for sub-section (1)] of the Companies
Act, 2013 are not applicable to your Company.

20. MAINTENANCE OF COST RECORDS

As your Company is primarily engaged in the business of financing of companies in the capacity of being a Non-
Banking Financial Company, therefore maintenance of cost records under the provisions of Section 148(1) of the
Companies Act, 2013 are not applicable to your Company.

21. RISK MANAGEMENT

Your company is engaged in managing PE/VC funds registered with SEBI under AIF regulations apart from recovery
of its NPA portfolio. As part of its business activities, the company is exposed to certain kinds of financial and non-
financial risks.

The Risk Management department of your company has put in place a detailed framework to enable your company
to adhere to guidelines/policies concerning risk management, prescribed by the Reserve Bank of India, Government
of India and other applicable regulatory authorities and address risk management in an efficient manner, which allows
optimization of risk- return profile contributing to improve risk adjusted returns and optimal use of capital. Your
Company has Integrated Risk Management Policy/ Manual in place which has laid down risk management framework
to identify, assess and monitor risks and strengthen controls to mitigate risks of the company.

9
22. DEPOSITS

Your Company being a Non-Deposit Accepting Company has not accepted any deposits during the Financial Year
2023-24. There were no public deposits outstanding as at the beginning or end of the Financial Year 2023-24.

23. SIGNIFICANT OR MATERIAL ORDERS PASSED BY REGULATORS OR COURT IMPACTING THE

GOING CONCERN STATUS OF THE COMPANY

There are no significant material orders passed by the Regulators or Courts or Tribunal during the year under
review which has an impact on the going concern status and company’s operations in future.

24. VIGIL MECHANISM

Your Company has in place a Vigil Mechanism Policy, in compliance with the provisions of Companies Act, 2013,
under which the Directors and employees can report to the Management their concerns about unethical behavior,
actual or suspected fraud or violation of the code of conduct and to provide adequate safeguards to them against
any sort of victimization on raising an alarm. During the Financial Year under review, no instance of the disclosure has
been made to the Designated Authority or to the Chairperson of the Audit Committee of Directors.

The details of the Vigil Mechanism Policy are posted on the website of the Company i.e. www.ifciventure.com

25. INCOME AND EXPENDITURE COMPONENTS

(i) Income Components

ii) Expenditure Components

0%

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26. INDUSTRY AND BUSINESS OF THE COMPANY

I. INDUSTRY STRUCTURE & DEVELOPMENTS

i. Introduction

The Indian economy expanded at a robust pace in 2023-24, with real GDP growth accelerating to 7.6 per cent from
7.0 per cent in the previous year – the third successive year of 7 per cent or above growth. With gross fixed capital
formation (GFCF) accelerating to 10.2 per cent in 2023-24 from 6.6 per cent in 2022-23, investment was the major
driver of domestic demand, buoyed by government spending on infrastructure.

Scheduled commercial banks (SCBs) remained well-capitalised, maintaining capital adequacy above the regulatory
minimum as at end-September 2023. Bank credit growth sustained momentum during 2023-24. The asset quality of
SCBs improved further, along with moderation in the gross non-performing assets (GNPAs) as at end-September
2023.

Capital adequacy of non-banking financial companies (NBFCs) was comfortable and asset quality improved as at end-
September 2023. On the profitability front, Return on Assets (RoA) and Net Interest Margin (NIM) stood strong, and
the cost-to income ratio improved. Robust credit growth was sustained, supported by demand for retail credit.

Capital and asset quality of banks and NBFCs remain healthy, supporting the growth in bank credit and domestic
activity. Pre-emptive regulatory measures aimed at curbing excessive consumer lending and bank lending to NBFCs,
and investments in alternate investment funds (AIFs) are expected to contain the build-up of potential stress in
balance sheets of financial intermediaries and contribute to financial stability.

A. Banking Sector

The Indian banking industry has been on an upward trajectory aided by strong economic growth, rising disposable
incomes, increasing consumerism and easier access to credit.

The Indian banking industry has recently witnessed the rollout of innovative banking models like payments and small
finance banks. In recent years India has also focused on increasing its banking sector reach, through various schemes
like the Pradhan Mantri Jan Dhan Yojana and Post payment banks. Bank accounts opened under GoI Pradhan Mantri
Jan Dhan Yojana have deposits of over ~US$ 25.13 billion in beneficiary accounts. 51.11 crore beneficiaries banked
till December 15th, 2023.

Schemes like these coupled with major banking sector reforms like digital payments, neo-banking, a rise of Indian
NBFCs and fintech have significantly enhanced India’s financial inclusion and helped fuel the credit cycle in the country.

In 2023, total assets in the public and private banking sectors were US$ 1686.70 billion and US$ 1016.39 billion,
respectively. In 2023, assets of public sector banks accounted for 58.31% of the total banking assets (including public,
private sector and foreign banks). The interest income of public banks reached US$ 102.4 billion in 2023. In 2023,
interest income in the private banking sector reached US$ 70 billion.

India’s digital lending market witnessed a growth of CAGR 39.5% over a span of 10 years.The Indian digital consumer
lending market is projected to surpass US$ 720 billion by 2030, representing nearly 55% of the total US$ 1.3 trillion
digital lending market opportunity in the country.

Digital modes of payments have grown by leaps and bounds over the last few years. As on January 2024, there were
560 banks actively using UPI. The total number of digital transactions during this period amounted to 15.08 billion,
with a total value of US$ 25.27 billion (Rs. 2.1 trillion).

Enhanced spending on infrastructure, speedy implementation of projects and continuation of reforms are expected
to provide further impetus to growth in the banking sector. All these factors suggest that India’s banking sector is
poised for robust growth as rapidly growing businesses will turn to banks for their credit needs.

The advancement in technology has brought mobile and internet banking services to the fore. Artificial Intelligence
(AI) and automation are demonstrating unprecedented value while Blockchain has sparked innovation throughout

11
 the business landscape and is poised to continue in doing so. The banking sector is laying greater emphasis on
providing improved services to their clients and upgrading their technology infrastructure to enhance customer’s
overall experience as well as give banks a competitive edge.

B. NBFC Sector

Non-Banking Financial Companies (NBFCs) work with the sole aim of making financial services accessible to one
and all. The unique objective set them apart from the banks and made them the prime drivers of growth.

NBFC sector plays an extremely crucial role in the development of the country’s core infrastructure. By offering
quicker funds and credit to the Indian trade and commerce industry, these entities are enabling the nation-wide
growth of large infrastructure projects. Furthermore, small businesses, start-ups, and MSMEs/SSIs are dependent on
funds offered by NBFCs. Thus, indirectly, NBFCs create more job opportunities at the macro-economic level.

NBFCs help promote financial inclusion by extending credit and financial services to underserved population
segments. NBFCs complement the banking sector by providing access to credit for individuals and businesses who
may not meet the stringent requirements of traditional banks. NBFCs are involved in offering credit facilities to both
the urban and the rural clientele for the development of the economy. It helps micro-businesses and build low-cost
houses, promoting the economic growth of the countryside, and providing microcredit for women.

According to the RBI’s latest Financial Stability Report, NBFCs were the largest net borrowers of funds from the
financial system, with gross payables of Rs 16.58 lakh crore and gross receivables of Rs 1.61 lakh crore as of the end
of March 2024. “A breakup of their gross payables reveals that the bulk of funds were sourced from SCBs, followed
by AMC-MFs and insurance companies,” states the report.

The banks’ share in the funding mix of NBFCs has jumped from 47.5 per cent in December 2018 to 55.1 per cent
in March 2024. Similarly, the long-term funds provided by banks and AIFs have increased from 40.7 per cent to 45.9
per cent in the same period. Further, Non-banking financial companies (NBFCs) remain healthy, with CRAR at 26.6
per cent, GNPA ratio at 4.0 per cent and Return on Assets (RoA) at 3.3 per cent, respectively, at end-March 2024.

ii. Regulatory Changes

The Department of Supervision (DoS) is entrusted with the responsibility of supervising all Scheduled Commercial
Banks (SCBs) [excluding Regional Rural Banks (RRBs)], Local Area Banks (LABs), Payments Banks (PBs), Small Finance
Banks (SFBs), Credit Information Companies (CICs), All India Financial Institutions (AIFIs), Urban Co-operative
Banks (UCBs), Non-Banking Financial Companies (NBFCs) [excluding Housing Finance Companies (HFCs)] and
Asset Reconstruction Companies (ARCs).

During the year, the Department took several initiatives for strengthening the supervision of NBFCs. The impact
of new asset classification norms on the gross Non-Performing Assets (GNPAs) reported by NBFCs was analysed.
GNPAs of the NBFC sector decreased from 6.3 per cent of gross advances on March 31, 2022 to 5.9 per cent as on
September 30, 2022, which was the cut-off date for implementation of the new norms. GNPAs decreased to 5.0 per
cent of gross advances as on March 31, 2023, and further to 4.6 per cent as on September 30, 2023. Since the system
of marking of days past due on a daily basis was already implemented by the larger NBFCs, the new norms did not
have a major impact on the reported asset quality. The increase in gross advances of the NBFC sector by 15.9 per
cent during 2022-23 also had a mitigating impact on the GNPA level.

Several regulatory and supervisory guidelines were issued during the year in line with global best practices towards
strengthening of governance, risk management practices and capital buffers. The regulatory guidelines included: (a)
default loss guarantee in digital lending; (b) framework for compromise settlements and technical write-offs; (c)
prudential norms for classification, valuation, operations of investment portfolios of commercial banks; (d) minimum
capital requirements for operational risk; and (e) establishment of an umbrella organisation for UCBs.

The central bank on 16th of November 2023, announced increase in bank capital requirements for personal loan
credit cards and directed lenders to set limits on various retail segment loans, indicating RBI’s vigilance on the
unprecedented growth in these types of loans, affecting the NBFCs on the capital buffer they would need to
carry. Other steps the central bank announced was an increase in risk weights on loans given by banks to NBFCs,

12
 effectively pushing up capital needs for all classes of lenders, NBFCs were affected as most of their borrowings were
heavily dependent on banks In turn, this has pushed up interest rates for the borrowing segment. The central bank
increased the risk weight on consumer credit for banks and NBFCs to 125 per cent from 100 per cent.

II. BUSINESS OVERVIEW

i. Lending Operations

As IFCI Venture has changed its accounting policy whereby interest income on stage 3 shall be recorded in the
books of accounts with effect from 1st April, 2021, Interest income for the financial years 2022-23 and 2021-22 have
been reinstated and increased by Rs.1,163.41 lakh and Rs.1,266.84 lakh respectively. For the financial year 2023-24,
interest of Rs.1,117.10 lakh was accrued. The lending portfolio (net) stood at Rs.39.81 crore as at March 31, 2024
against Rs.76.41 crore as at March 31, 2023.

In view of no fresh lending business being perceived, and more focus on management of Funds entrusted by Ministry
of Social Justice & Empowerment (MosJE), Government of India, your Company continued with the existing General
Lending Policy (GLP). The broad features of the GLP inter alia included exposure limits for an individual company
upto Rs.10 crore or 10% of Owned Funds as at March 31, 2022 and for a Group upto Rs.15 crore or 15% of Owned
Funds as at March 31, 2022 with tenor of loans at upto 4 years. In addition, to ensure proper risk evaluation of
proposals, the internal risk rating process continues to be outsourced to external Rating Agencies (presently CARE
Ratings) and the same is linked to pricing of loans.

Your company has also been entrusted with management of Venture Capital Fund for Scheduled Tribes (VCF-ST) by
Ministry of Tribal Affairs, Government of India. The Fund was launched on the inaugural day of `Aadi Mahotsav 2024’
on 10th February, 2024 at Major Dhyan Chand National Stadium, New Delhi, by Shri Arjun Munda, Union Minister
of Tribal Affairs & Agriculture and Farmers Welfare, in the august presence of Honourable President of India, Smt.
Droupadi Murmu, Dr. Bharati Pravin Pawar, Honourable Minister of State and other dignitaries.

OUTLOOK

Several regulatory and supervisory measures will be undertaken in 2024-25 to further strengthen financial
intermediaries. They would include: (a) a comprehensive review of the extant IRACP norms and the prudential
framework for resolution of stressed assets across Regulated Entities (REs); (b) harmonised set of prudential
guidelines for all REs undertaking project finance; (c) a comprehensive review of the extant regulatory instructions
on interest rates on advances across REs; (d) move towards adopting a forward-looking expected credit loss (ECL)
approach; (e) issuance of Securitisation of Stressed Assets Framework; and (f) efforts towards enhancing awareness,
building capacity, and fostering collaboration among stakeholders to address effectively the multifaceted challenges
of climate change for the financial system.

ii. Private Equity/Venture Capital Funds Under Management by IFCI Venture

As you are aware, your company has been acting as an Asset Manager, managing Venture Capital Funds since 1991 and
has managed various private equity/venture funds in the past. Three of such funds viz. India Automotive Component
Manufacturers Private Equity Fund-1-Domestic (IACM-I-D), Green India Venture Fund (GIVF) and India Enterprise
Development Fund (IEDF) which started in 2008 were closed in FY 2019-20.

Your Company is presently managing 4 Schemes viz. Venture Capital Fund for Scheduled Castes (VCFSC), Venture
Capital Fund for Backward Classes (VCFBC) and Senior Care Ageing Growth Engine (SAGE) entrusted by Ministry
of Social Justice and Empowerment (MoSJE), Government of India under a Trust Fund viz. Venture Capital Fund
for Scheduled Castes and Backward Classes and the 4th scheme being Venture Capital Fund for Scheduled Tribes
(VCFST) entrusted by Ministry of Tribal Affairs (MoTA) which is floated under a separate Trust. The Funds are
registered as Alternate Investment Fund (AIF) Category - II with SEBI as per SEBI (AIF) regulation 2012. The total
amount of funds under management in year 2023-24 is Rs.951.89 crore. Your Company has a team of young and
experienced professionals having considerable length of experience, exposure and knowledge to carry on the
business operations of the private equity/Venture Funds.

VCFSC is a first of its kind Venture Capital Fund in India dedicated to promote entrepreneurship among the

13
 Scheduled Castes by providing concessional finance to them. It was started in the year 2015 with an initial corpus
of Rs.250 crore. During the year, MoSJE has contributed afresh an amount of Rs.22 crore in VCFSC. Also, the Fund
has distributed profit of Rs.9.60 crore to its investors viz. IFCI and MoSJE, out of which Rs.1.48 crore have been
ploughed back to form Fund Corpus and balance amount of Rs.8.12 crore have been distributed to investors. The
Fund has reached its target corpus of Rs.750 crore as on 31st March 2024. The aggregate sanctions under VCFSC
stands at Rs.523.09 Crore as on 31st March 2024 which has been sanctioned to 136 companies promoted by SC
entrepreneurs. IFCI Venture earns an annual management fee @ 1.5% p.a. on the fund corpus of VCFSC and an
amount of Rs.12.93 crore was booked as income towards management fee from VCFSC.

Further, with the objective to promote entrepreneurship amongst the SC Youth, a scheme namely “Ambedkar Social
Innovation Incubation Mission (ASIIM)” under VCFSC was launched on 30th September 2020 by MoSJE. Under
ASIIM, about 1000 SC Youth Entrepreneurs are targeted to be supported in the next 4 years with start-up ideas
through the Technology Business Incubators (TBIs) in various higher educational institutions. Under the scheme,
financial assistance of Rs.10 lakhs per year for a period of 3 years aggregating to Rs.30 Lakh is provided to the
companies promoted by SC Entrepreneurs.The aggregate sanctions under ASIIM stands at Rs.25.51 Crore as on 31st
March, 2024 which has been sanctioned to 86 companies promoted by SC entrepreneurs.

The other scheme viz. VCFBC aims at providing concessional finance to Backward Classes entrepreneurs. It was
started in FY 2017-18 (but VCFBC scheme was operational from 1st October 2019 after receiving minimum
contribution from MoSJE to start the fund as per SEBI regulations). During the year, MoSJE has contributed a fresh
amount of Rs.10 crore in VCFBC. The present corpus of VCFBC as on 31st March 2024 is Rs.158.85 crore. The
aggregate sanctions under VCFBC stands at Rs.112.25 Crore as on 31st March, 2024 which has been sanctioned to
22 companies promoted by BC entrepreneurs. IFCI Venture is earning an annual management fee @ 1.5% p.a. on
the fund corpus of VCFBC and an amount of Rs.2.66 crore was booked as income towards management fee from
VCFBC.

To enhance the awareness and coverage of VCFSC & ASIIM and VCFBC, IFCI Venture has participated in various
conferences /webinars to reach the prospective entrepreneurs and create an outreach for the scheme.Your Company
has also signed MoU with NSIC SC-ST Hub for deeper penetration of schemes. Your Company is also successfully
managing the mentorship portal named “Aye-Mentor” which was launched to facilitate startups, entrepreneurs to
gain business / industry experience and get mentoring from the experts.Your company has on-boarded 92 mentors
till date. In the Mentorship portal, till date about 213 mentorship request sessions with experienced mentors have
been received from mentees belonging to SC category.

In January 2023, the new Fintech based online application portal for VCF-SC, VCF-BC and ASIIM was made live. The
portal scrutinizes the applications at a primary level based on the predefined eligibility criteria as per the scheme
guidelines. It acts as the interface between the company and its applicants for channelizing their applications for
VCFSC,VCFBC and ASIIM schemes. All applications are now being received through this Fintech portal.

Further, SAGE Venture Fund was also launched in August 2022 with an objective to support innovative ideas for the
elderly care and promoting them into start-ups by providing equity support. MoSJE has already given a corpus of Rs.
20 crore, IIDL (a subsidiary of IFCI Limited) has contributed Rs. 1 crore to the Fund and IFCI Venture is acting as a
sponsor to the Fund with a present contribution of Rs.52.5 lakhs as per SEBI norms. The total corpus of the fund
stands at Rs.21.52 crore as on 31st March 2024.

Five proposals with sanction amount of Rs.5 crore have been sanctioned and Rs.2 Crore has been disbursed under
the fund. IFCI Venture is earning an annual management fee @ 2.5% p.a. on the fund corpus of SAGE and an amount
of Rs.0.64 crore was booked as income towards management fee from SAGE.

Further, your company has been entrusted to act as Investment Manager for Venture Capital Fund for Scheduled
Tribes (VCFST) by Ministry of Tribal Affairs (MoTA), Government of India. The scheme has been registered under
the Indian Trust Act, 1982 by the name “Venture Capital Fund for Scheduled Tribes”. It is registered with SEBI as AIF
Category II Fund. The Fund was launched on the inaugural day of `Aadi Mahotsav 2024’ on 10th February, 2024 at
Major Dhyan Chand National Stadium, New Delhi, by Shri Arjun Munda, Union Minister of Tribal Affairs & Agriculture
and Farmers Welfare, in the august presence of Honorable President of India, Smt. Droupadi Murmu, Dr. Bharati
Pravin Pawar, Honorable Minister of State and other dignitaries.

14
 The objective of the fund is to promote entrepreneurship among the Scheduled Tribes through provision of
concessional finance to them, to support, promote, handhold the start-up ideas till they reach commercial stage
by providing equity and/or credit support and to promote financial inclusion amongst ST entrepreneurs and to
motivate them for further growth of the ST communities.

The total corpus of the fund is Rs.21.52 crore. Ministry of Tribal Affairs (MoTA), Government of India has released
Rs.20 Crore as initial contribution towards the fund corpus in 2023-24,Tribal Co-operative Marketing Development
Federation of India Ltd. (TRIFED) has released Rs.1.00 crore as Investor and IFCI Venture has released Rs.0.52 crore
as sponsors contribution. IFCI Venture is earning an annual management fee @ 1.5% p.a. on the fund corpus of
VCFST and an amount of Rs.0.19 crore was booked as income towards management fee from VCFST.

27. PERFORMANCE OF YOUR COMPANY

i. Financial Performance

During FY 2023-24 your Company has earned profit of Rs.121.58 lakh as compared to Rs.548.81 lakh in FY 2022-23.
The book value per share increased to Rs.28.73 per share in FY 2023-24 from Rs.28.53 per share in FY 2022-23.

Rs. in Lakh

ii. Corporate Loan Portfolio

Your Company being a NBFC deals in the activities of providing Corporate Loan to credit-worthy companies. The
corporate loan portfolio of your Company stood at Rs.10,674.85 lakhs as on March 31, 2024 from Rs.18,950.39
lakhs as on March 31, 2023 with no sanction during the period.

Consequently, it was decided to consolidate operations and particularly focus on maintaining a comfortable liquidity
position. As a result, the lending operations have been discontinued with increased focus on recovery from stressed
and non-performing assets/recovery of investments and management of Venture Funds supported by Ministry of
Social Justice & Empowerment (MOSJE), Government of India viz.,Venture Capital Fund for Schedules Castes (VCF-
SC),Venture Capital Fund for Backward Classes (VCF-BC) & Ambedkar Social Innovation Incubation Mission (ASIIM),
under VCF-SC.

iii. Focus on Recovery from NPA’s/Investments:

IFCI Venture has been diligently pursuing recovery of dues from Non-Performing Assets (NPAs), technically written-
off accounts, and investments during FY 2023-24. A provision of 62.71% has been set aside for the loan portfolio.
To expedite recovery, the company has initiated various legal actions, including proceedings before Debt Recovery

15
 Tribunals, criminal complaints under Section 138 of the Negotiable Instruments Act, insolvency applications under
the Insolvency and Bankruptcy Code, 2016, enforcement of securities under the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, and attachment of guarantors’ personal assets.Additionally,
NPA and written-off accounts have been assigned. These concerted efforts resulted in recoveries of Rs. 1896.70
lakhs from NPAs/technically written-off cases and Rs. 3078.21 lakhs from investments during FY 2023-24. IFCI
Venture anticipates recovering a significant portion of outstanding dues in FY 2024-25.”

iv. Management of Private Equity/Venture Capital Funds

Your Company is presently managing 3 Schemes viz. Venture Capital Fund for Scheduled Castes (VCF-SC), Venture
Capital Fund for Backward Classes (VCF-BC) and Senior Care Ageing Growth Engine (SAGE) entrusted by Ministry
of Social Justice and Empowerment (MoSJE), Government of India under a Trust Fund viz. Venture Capital Fund for
Scheduled Castes and Backward Classes. The Fund is registered as Alternate Investment Fund (AIF) Category - II
with SEBI. The total amount of funds under management in year 2023-24 is Rs.951.89 crore.

The aggregate sanctions under VCFSC stands at Rs.523.09 Crore as on 31st March 2024 which has been sanctioned
to 136 companies promoted by SC entrepreneurs. IFCI Venture earns an annual management fee @ 1.5% p.a. on
the fund corpus of VCFSC and an amount of Rs.12.93 crore was booked as income towards management fee from
VCFSC.

The aggregate sanctions under VCFBC stands at Rs.112.25 Crore as on 31st March, 2024 which has been sanctioned
to 22 companies promoted by BC entrepreneurs. IFCI Venture is earning an annual management fee @ 1.5% p.a. on
the fund corpus of VCFBC and an amount of Rs.2.66 crore was booked as income towards management fee from
VCFBC.

The aggregate sanctions under ASIIM stands at Rs.25.51 Crore as on 31st March, 2024 which has been sanctioned
to 86 companies promoted by SC entrepreneurs.

The total corpus under SAGE fund stands at Rs.21.52 crore as on 31st March 2024. Five proposals with sanction
amount of Rs.5 crore have been sanctioned and Rs.2 Crore has been disbursed under the fund.

28. DOCUMENTS PLACED ON THE WEBSITE (www.ifciventure.com)

The following documents have been placed on the website of your Company in compliance with the Companies Act,
2013 and SEBI Regulations:
Ø Corporate Social Responsibility Policy as per section 135(4)(a) of the Companies Act, 2013.
 Financial Statements of the Company along with the relevant documents as per fourth proviso to section
136(1) of the Companies Act, 2013.
 Details of vigil mechanism for Directors and employees to report genuine concerns as per proviso to section
177(10) of the Companies Act, 2013.
 Code of Conduct for Intermediaries and Fiduciaries to Regulate, Monitor and Report Trading by Designated
Persons
 Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons
 Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information and Handling
of Price Sensitive information for Legitimate Purposes
 Related Party Transactions Policy.
 Guidelines on Corporate Governance, as per guidelines issued by Reserve Bank of India (RBI).
 Code of Business Conduct & Ethics for Board Members, KMPs and Senior Management, in compliance with the
applicable rules and regulations.

29. CORPORATE GOVERNANCE

A detailed report on Corporate Governance for the Financial year 2023-2024 is appearing separately in the Annual
Report.

16
30. CONSERVATION OF ENERGY,TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO

As your Company’s operations do not involve any manufacturing or processing activities, the particulars as per
Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988 regarding conservation
of energy and technology absorption are not applicable. The Company is also not engaged in any activity relating
to exports. During the Financial Year 2023-24, your Company neither incurred nor received any amount in foreign
currency.

31. QUALIFICATIONS OR OBSERVATIONS OR OTHER REMARKS MADE BY THE STATUTORY

AUDITORS

Pursuant to the provisions of Section 139 of the Act and the Rules framed thereunder, M/s M D Gujrati & Co.,
Chartered Accountants (Firm Regn No. 005301N), were appointed as Statutory Auditors of your Company by the
Comptroller & Auditor General of India.

The Financial Results of the Company for the Financial Year 2023-24 were unqualified by the Statutory Auditors of
the Company. However, the Statutory Auditors provided ‘Emphasis of Matter’.

The Auditors have mentioned the following in their Independent Auditors’ Report:

Emphasis of Matter

We draw attention to the Note no. 1(a),5, 20 & 29 of the financial statement regarding change in accounting policy
towards recognition of interest income on Stage-3 assets and write off the amount which have no reasonable
expectation of recovery with effect from 01st April 2021.

The results for the year were materially affected by Changes in accounting policies. The Board considered
Memorandum No. 1856/23-24 and took note of the recommendation of the CAG after receiving the clarification
from ICAI and RBI for recognition of interest income on Stage 3 assets in line with IND AS 109.

Accordingly, interest income for FY 2022-23 and 2021-22 will be increased by INR 1,163.41 Lakhs and INR 1,266.84
Lakhs respectively. Since there is no expectation of recovery, bad debts will be increased by same amounts respectively.
Hence, there is no impact on Net Profit and Net loss of these years respectively.

During the FY 2023-24, the company has recognized the Interest income of INR 1,117.10 Lakhs and written off the
INR 1,104.29 Lakhs as bad debts, since there is no expectation of recovery for the same.

The above are statements of facts based on the changes in policy.

32. QUALIFICATIONS OR OBSERVATIONS OR OTHER REMARKS MADE BY THE SECRETARIAL

AUDITORS

Pursuant to the provisions of Section 204 of the Act, the Board of Directors of your Company had appointed M/s
Saurabh Agrawal & Co. as the Secretarial Auditors of the Company.The observations of the Secretarial Auditors and
replies of the management for FY 2023-24, are given below: -

S. No. Observation Management’s Reply

1. As per Section 149(4) of the Companies As per notification dated June 05, 2015 for the induction
Act, 2013 read with Rule 4(1) of of Independent Director on the Board of a Government
the Companies (Appointment and Company, opinion from concerned Ministry or parent
Qualification of Directors) Rules, 2014 Department of the Central Government which is
the company shall have at least two administratively in charge of the Company or as the case
directors as Independent Directors, may be, the State Government, is required that the person
however the Company has not complied intending to act as Independent Director shall be a person
the provisions of the said section and of integrity and possesses relevant expertise and experience.
rule as the Company is not having any Therefore, the power to appoint Independent Directors vests
Independent Director on the Board. with the Ministry administratively in-charge of the Company

17
 i.e. Department of Financial Services, MOF. Communications
dated 20.04.2023, 28.06.2023 and 16.01.2024 and 27.02.2024
have been sent and once the appointment of Independent
Director is made by the Department of Financial Services,
the abovementioned provisions will be complied with.
2. The composition of the Board of Once the appointment of Independent Director is made
Directors, CSR Committee, Audit by the Department of Financial Services, the same shall be
committee and Nomination and complied with the various provisions of Companies Act,
Remuneration Committee are not as per 2013.
the provisions of Section 149, Section
135, 177 and 178 of the Companies Act,
2013 w.r.t. appointment of Independent
Directors;
3. As per Section 149(8) of the Companies The separate meeting of Independent Director shall be
Act, 2013 read with Schedule IV of the convened once the Independent Director is appointed on
Companies Act, 2013 separate meeting the Board of the Company.
of the Independent Directors was not
convened for the period under review;
4. The Company is having approximately The Company has discontinued the lending operations and
100% Loan Amount as Substandard/NPA all the Standard Accounts have been repaid. Therefore, the
as on 31st March, 2024. existing outstanding loan accounts are NPA’s and measures
have being taken for resolution of the same at the earliest.

Copy of the Secretarial Audit Report is annexed as Annexure III.

33. STATEMENT ON DECLARATION BY INDEPENDENT DIRECTORS

Pursuant to the provisions of Companies Act, 2013, during the Financial Year 2023-24, there were no Independent
Directors on the Board of the Company, for the reasons detailed in Point No. 6 of this Report.

34. INTERNAL FINANCIAL CONTROLS

Your Company has in place an Internal Financial Controls (IFC) Framework driven by the policies and procedures
adopted by the Company for ensuring the orderly and efficient conduct of its business, including adherence to
the Company’s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and
completeness of accounting records and timely preparation of reliable financial information.

35. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirement of Section 134(5) of the Act, the Directors hereby confirm that:

(i) In the preparation of the annual accounts, the applicable accounting standards have been followed along with
proper explanations relating to material departures;

(ii) The accounting policies has been selected and applied consistently to make judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of
the Financial Year and of the Profit & Loss of the Company for that period;

(iii) Proper and sufficient care had been taken for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing
and detecting fraud, and other irregularities.

(iv) The Annual accounts have been prepared on a going concern basis;

(v) Internal financial controls followed by the Company and that such internal financial controls are adequate
and were operating effectively. “Internal Financial Controls” mean the policies and procedures adopted by

18
 the Company for ensuring the orderly and efficient conduct of its business, including adherence to company’s
policies, safeguarding of its assets, prevention and detection of frauds, and errors, accuracy and completeness
of accounting records and timely preparation of reliable financial information; and

(vi) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.

36. AUDITORS

M/s M D Gujrati & Co., Chartered Accountants (Firm Registration No.005301N) were appointed by the Comptroller
& Auditor General of India (C&AG) as Statutory Auditors of your Company for FY 2023-24.

37. SUBSIDIARIES/ JOINT VENTURE/ ASSOCIATE

Your Company does not have any subsidiary/ joint venture/ associate company.

38. COMMENTS OF COMPTROLLER & AUDITOR GENERAL OF INDIA

The comments of Comptroller and Auditor General of India (C&AG) alongwith the IFCI Venture’s comments on
audit observation, if any, w.r.t. financial statements of your Company for the Financial Year ended March 31, 2024
under section 143(6)(b) of the Companies Act, 2013 is annexed as Annexure IV.

39. INSTANCES OF FRAUD, IF ANY REPORTED BY THE AUDITORS

There have been no instances of fraud reported by the Auditors under Section 143(12) of the Act.

40. DETAIL OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER INSOLVENCY AND
BANKRUPTCY CODE 2016 DURING THE YEAR ALONGWITH THEIR STATUS AS AT THE END
OF THE FINANCIAL YEAR

No Insolvency application has been made or any proceeding pending under Insolvency and Bankruptcy Code 2016
during the year against IFCI Venture Capital Funds Ltd.

41. DETAILS OF DIFFERENCE BETWEEN VALUATION AMOUNT ON ONE TIME SETTLEMENT

AND VALUATION WHILE AVAILING LOAN FROM BANKS AND FINANCIAL INSTITUTIONS
ALONGWITH REASONS THEREOF

During the year under review, there has been no one time Settlement of loans taken from Banks and Financial
Institutions.

42. ACKNOWLEDGEMENT

Your Directors wish to express gratitude for the cooperation, guidance and support from the Ministry of Finance,
Ministry of Social Justice & Empowerment, Government of India, Reserve Bank of India, Securities and Exchange
Board of India, Stock Exchanges, other regulatory bodies, Comptroller & Auditor General of India, Statutory Auditors,
Internal Auditors and Secretarial Auditors and State Governments. Your Directors also acknowledge the valuable
assistance and continued cooperation received from all banks, financial institutions, other members of the banking
fraternity and investors. Your Directors would also like to express their appreciation for the efforts and dedicated
service put in by the employees at all levels of your Company.

For and on behalf of the Board of Directors

Sd/- Sd/-
V. Anish Babu Prasoon
Place: New Delhi Managing Director Director
Date: August 06, 2024 Din: 02830575 Din:03599426

19
 ANNEXURE I

Salient Features of Policy on Dealing with Related Party Transactions

A. Approvals

I. Approval by Audit Committee

1. All Related Party Transactions (RPTs) (including any subsequent modifications thereof) shall require prior approval
of the Audit Committee of Directors.

2. The Audit Committee of Directors may grant omnibus approval for the RPTs proposed to be entered into by the
Company subject to the following conditions, namely:-

The Conditions for granting Omnibus approval are as under:

(1) The Audit Committee shall, after obtaining approval of the Board of Directors, specify the criteria for making the
omnibus approval which shall include the following, namely:-
(a) maximum value of the transactions, in aggregate, which can be allowed under the omnibus route in a year;
(b) the maximum value per transaction which can be allowed;
(c) extent and manner of disclosures to be made to the Audit Committee at the time of seeking omnibus approval;
(d) review, on quarterly basis or at such intervals as the Audit Committee may deem fit, related party transaction
entered into by the Company pursuant to each of the omnibus approval made;
(e) transactions which cannot be subjected to the omnibus approval by the Audit Committee.

2) The Audit Committee shall consider the following factors while specifying the criteria for making omnibus approval,
namely: -
(a) repetitiveness of the transactions (in past or in future);
(b) justification for the need of omnibus approval.

(3) The Audit Committee shall satisfy itself on the need for omnibus approval for transactions of repetitive nature and
that such approval is in the interest of the Company.

(4) The omnibus approval shall contain or include the following: -

(a) name of the related parties;
(b) nature and duration of the transactions;
(c) maximum amount of transaction that can be entered into;
(d) the indicative base price or current contracted price and the formula for variation in the price, if any;
(e) any other information relevant or important for the Audit Committee to take a decision on the proposed
transaction:
Provided that where the need for related party transaction cannot be foreseen and the aforesaid details are
not available, audit committee may make omnibus approval for such transactions subject to their value not
exceeding Rs. 1 crore per transaction.

(5) Omnibus approval shall be valid for a period not exceeding one financial year and shall require fresh approval after
the expiry of such financial year.

(6) Omnibus approval shall not be made for transactions in respect of selling or disposing of the undertaking of the
Company.

(7) Any other conditions as the Audit Committee may deem fit.

20
II. Approval by Board of Directors

Except with the consent of the Board of Directors given by a resolution at a meeting of the Board, IFCI Venture shall
not enter into any contract or arrangement with a related party with respect to-
(a) Sale, purchase or supply of any goods or materials;
(b) Selling or otherwise disposing of, or buying, property of any kind;
(c) Leasing of property of any kind;
(d) Availing or rendering of any services;
(e) Appointment of any agent for purchase or sale of goods, materials, services or property;
(f) Such related party’s appointment to any office or place of profit in the company, its subsidiary company or
associate company; and
(g) Underwriting the subscription of any securities or derivatives thereof, of the company:
Provided that nothing of the above shall apply to any transactions entered into by IFCI Venture in its ordinary course
of business other than transactions which are not on an arm’s length basis.
{Ordinary Course of Business shall include those business which forms part of the Main Object of the Memorandum
of Association of the Company}

Explanation-

the expression “office or place of profit” means any office or place-

Where such office or place is held by a director, if the director holding it receives from IFCI Venture anything by way
of remuneration over and above the remuneration to which he is entitled as director, by way of salary, fee, commission,
perquisites, any rent-free accommodation, or otherwise;

Where such office or place is held by an individual other than a director or by any firm, private company or other body
corporate, if the individual, firm, private company or body corporate holding it receives from IFCI Venture anything by way
of remuneration, salary, fee, commission, perquisites, any rent-free accommodation, or otherwise;

The expression “arm’s length transaction” means a transaction between two related parties that is conducted as if they
were unrelated, so that there is no conflict of interest.

III. Approval by Shareholders

1. Except with the prior approval of the company by a resolution, as may be specified under the Companies Act, 2013
or the Regulations, IFCI Venture shall not enter into a transaction(s), where the transaction(s) to be entered into:

(a) as contracts or arrangements with respect to clause(a) to (e) of subsection (1) of section 188 of the Companies Act
2013, with criteria as mentioned below –
(i) sale, purchase or supply of any goods or material, directly or through appointment of agent, amounting to ten
percent or more of the turnover of the company, as mentioned in clause (a) and clause (e) respectively of sub-
section (1) of section 188;;
(ii) selling or otherwise disposing of or buying property of any kind, directly or through appointment of agent,
amounting to ten percent or more of net worth of the company, as mentioned in clause (b) and clause (e)
respectively of sub-section (1) of section 188;;
(iii) leasing of property any kind amounting to ten per cent or more of the turnover of the company, as mentioned
in clause (c) of sub-section (1) of section 188;
(iv) availing or rendering of any services, directly or through appointment of agent, amounting to ten percent or
more of the turnover of the company as mentioned in clause (d) and clause (e) respectively of sub-section (1)
of section 188:;
Explanation- It is hereby clarified that the limit specified in sub-clauses (i) to (iv) shall apply for transaction
or transactions to be entered into either individually or taken together with the previous transactions during
a financial year.

21
(b) is for appointment to any office or place of profit in the Company, its subsidiary company or associate company at
a monthly remuneration exceeding two and half lakh rupees as mentioned in clause (f) of subsection (1) of section
188; or

(c) is for remuneration for underwriting the subscription of any securities or derivatives thereof, of the company
exceeding one per cent of the net worth as mentioned in clause (g) of sub-section (1) of section 188.

Explanation-

1 The Turnover or Net Worth referred in the above sub-rules shall be computed on the basis of the Audited Financial
Statement of the preceding Financial year.

2 In case of wholly owned subsidiary, the resolution is passed by the holding company shall be sufficient for the
purpose of entering into the transaction between the wholly owned subsidiary and the holding company.

3. All the related parties shall abstain from voting on such resolutions

4. No Member of IFCI shall vote on such Special/Ordinary Resolution (as the case may be), to approve any contract or
arrangement which may be entered into by the Company, if such member is a related party.

5. Provided also that nothing contained in the 3rd point shall apply to a company in which ninety per cent or more
members, in number, are relatives of promoters or are related parties.

Proviso:

The above clause I & III, w.r.t the Approval of Audit Committee, Omnibus Approval and Approval of Shareholder’s, will not
be applicable in the following cases:

1. Transaction entered into between two Government Companies;

2. Transactions entered into between a holding company and its wholly owned subsidiary whose accounts are
consolidated with such holding company and placed before the shareholders at the general meeting for approval.

ANNEXURE II

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

(Pursuant to the Companies (Corporate Social Responsibility) Rules, 2014)

1. Brief outline on the Company’s CSR policy of the Company:

• In alignment with the vision of the company, IFCI Venture, through its CSR initiatives will continue to enhance
value creation in the society and in the community in which it operates, through its services, conduct and
initiatives, so as to promote sustained growth for the society and community, in fulfillment of its role as a
Socially Responsible Corporate, with environmental concern.

• The main objectives of CSR Policy are:

i) To directly or indirectly take up programs that benefit the communities in and around its workplace
and results, over a period of time, in enhancing the quality of life and economic well-being of the local
populace.
ii) To generate through its CSR initiatives, a community goodwill for IFCI Venture and help reinforce a
positive & socially responsible image of IFCI Venture as a corporate entity and as a good Corporate
Citizen.
iii) Ensure commitment at all levels in the organization, to operate its business in an economically, socially and
environmentally sustainable manner, while recognizing the interest of all its stakeholders.

22
 • The terms of reference of the CSR Committee is as under:
i) To formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate
the activities to be undertaken by the company as specified in Schedule VII of Companies Act, 2013;
ii) To recommend the amount of expenditure to be incurred on the activities referred to in clause (i) above;
iii) To formulate and recommend to the Board, an annual action plan in pursuance of its CSR Policy;
iv) To monitor the Corporate Social Responsibility Policy of the company from time to time.

2. Composition of the CSR Committee

S. No. Name of Director Designation / Nature of Number of meetings Number of meetings

Directorship of CSR Committee of CSR Committee
held during the year attended during the
year
1. Ms. Tripti Somani (C) Non-Executive Director 2 2
2. Mr.V. Anish Babu Managing Director 1 1
3. Mr. Arvind K. Jain Non-Executive Director 1 1
4. Mr. Ajay Kr. Kapur* Non-Executive Director 1 1
5. Mr. Gauri Shankar* Non-Executive Director 1 1

*The Committee was re-constituted and introduced Mr. Ajay Kumar Kapur in place of Mr. Arvind Kumar Jain w.e.f
October 13, 2023 and Mr. Gauri Shankar in place of Mr.V. Anish Babu w.e.f October 13, 2023.

3. Web-Link where Composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed
on the website of the Company.

The weblink is: https://www.ifciventure.com/pdf/csr-policy.pdf

4. Provide the executive summary alongwith web link of Impact Assessment of CSR Projects carried out in pursuance
of sub-rule (3) of Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014: N.A.

5. (a) Average net profit of the company as per sub-section (5) of section 135. Rs. 6,43,11,221.33/-
(b) Two percent of average net profit of the company as per sub-section (5) of section 135. Rs. 12,86,224.42/-
(Rounded off to Rs. 12,86,300/-)
(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years. NIL
(d) Amount required to be set-off for the financial year, if any.: NIL
(e) Total CSR obligation for the financial year [(b)+(c)-(d).: Rs.12,86,224.42/- (Rounded off to Rs. 12,86,300/-)

6. (a) Amount spent on CSR Projects (23-24)(both Ongoing Project and other than Ongoing Project): Rs. 12,25,370/-
(b) Amount spent in Administrative Overheads.: Rs. 60,930/-
(c) Amount spent on Impact Assessment, if applicable. N.A.
(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: Rs. 12,86,300/-
(e) CSR amount spent or unspent for the financial year:
Total Amount Spent for Amount Unspent (in Rs):
the Financial Year (in Rs)
Total Amount transferred to Unspent Amount transferred to any fund specified
CSR Account as per Section 135(6) under Schedule VII as per second proviso to
Section 135(5)
Rs. 12,86,300/-
Amount (in Rs) Date of Transfer Name of Amount Date of
Fund Transfer
N.A. N.A. -- -- --

23
f) Excess amount for set off, if any: NIL
S.N Particulars Amount (in Rs)
(i) Two percent of average net profit of the Company as per Section 135(5) 12,86,300/-
(ii) Total amount spent for the financial year 12,86,300/-
(iii) Excess amount spent for the financial year [(ii)-(i)] --
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous --
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] --

7. a) Details of Unspent CSR amount for the preceeding three financial years:
S. Preceding Amount Balance Amount Amount Amount Deficiency,
No. Financial transferred Amount in spent transferred to Remaining to if any
Year to Unspent Unspent CSR in the any fund be spent in
CSR Account Account under reporting specified under succeeding
under Section subsection (6) Financial Schedule VII financial
135 (6) of section 135 Year as per Section years
(in Rs) (in Rs.) (in Rs) 135(6), if any (in Rs)
Amount Date of
(in Rs) transfer
1. 2019-20* -- -- 10,61,685 -- -- --
(19-20)
1,72,015
(23-24)
2. 2018-19* -- -- 69,38,000 -- -- --
(18-19, 19-
20 & 20-21)
1,97,000
(23-24)
3. 2022-23# 16,05,100 16,05,100 -- -- 16,05,100 --

* The unspent amount of Rs. 1,72,015 & Rs. 1,97,000 was allocated to another CSR project (i.e. Infrastructure support for
Shree Maa Anandmayee Vidhyapeeth, Kankhal, Haridwar, Uttarakhand.) which was spent in the F.Y.2023-24.
# The allocated unspent amount of Rs. 16,05,100/- has been transferred to Unspent CSR Account in April 2023 and will
be spent based on the achievement of milestones.

8) Whether any capital assets have been created or acquired through Corporate Social Responsibility amount: No
Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:
S. Short particulars of the Pincode Date of Amount Details of entity/ Authority/
No. property or asset(s) of the creation of CSR beneficiary of the registered owner
[including complete address property amount
and location of the property] or asset(s) spent
(1) (2) (3) (4) (5) (6)
CSR Registration Name Registered
Number, if applicable address
NIL

9) Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per subsection (5)
of section 135.: N.A.

Sd/- Sd/-
(V. Anish Babu) (Tripti Somani)
Place: New Delhi Managing Director Chairperson of CSR Committee
Date: August 06, 2024 DIN: 02830575 DIN:06764190

24
 ANNEXURE III

FORM NO. MR-3

SECRETARIAL AUDIT REPORT
For The Financial Year Ended 31st March, 2024
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014]

To
The Members
IFCI Venture Capital Funds Limited
CIN: U65993DL1988GOI030284
IFCI Tower, 61, Nehru Place,
New Delhi - 110019

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and adherence to good
corporate practices by IFCI Venture Capital Funds Limited (CIN: U65993DL1988GOI030284) (herein after called “the
Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate
conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the IFCI Venture Capital Funds Limited books, papers, minute books, forms and returns filed
and other records maintained by the company and also the information provided by the Company, its officers, agents and
authorized representatives during the conduct of secretarial audit, the explanations and clarifications provided to us and
the representations made by the Management. We hereby report that in our opinion, the company has, during the audit
period covering the financial year ended on 31st March, 2024 generally complied with the statutory provisions listed
hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in
the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended on 31st March, 2024 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under as amended from time to time;

(ii) The Securities Contract (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;

(iii) The Depositories Act, 1956 and the regulations and Bye-laws framed there under;

(iv) Foreign Exchange Management Act, 1999 (FEMA) and the rules and regulations made there under to the extent of
the Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992
(‘SEBI Act’):-
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
[Not applicable to the Company during the audit period].

b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
[Not applicable to the Company during the audit period].

d. The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014; [Not applicable
to the Company during the audit period]

e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities), Regulations, 2008;

25
 f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealings with the client; [Not applicable as the Company is not registered as
Registrar to issue and Share Transfer Agent during the financial year under review].

g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; [Not applicable as
the Company has not listed its equity shares on any stock exchange]. and

h. The Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998; [Not applicable as
the Company has not bought back/proposed to buy back any of its securities during the financial year under
review].

(vi) The company has complied with other Laws as applicable to the Industry as per the undertaking given by the
company:
1. The Reserve Bank of India Act, 1934;
2. The Employee’s Provident Fund and Miscellaneous Provisions Act, 1952;
3. Payment of Gratuity Act, 1972;

We have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by the Institute of Company Secretaries of India.

(ii) The Listing Agreements entered into by the Company with the Bombay Stock Exchange and SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above subject to the following observations:-

i. As per Section 149(4) of the Companies Act, 2013 read with Rule 4(1) of the Companies (Appointment and
Qualification of Directors) Rules, 2014 the company shall have at least two directors as Independent Directors,
however the Company has not complied the provisions of the said section and rule as the Company is not
having any Independent Director on the Board;

ii. The composition of the Board of Directors, CSR Committee, Audit committee and Nomination and
Remuneration Committee are not as per the provisions of Section 149, Section 135, 177 and 178 of the
Companies Act, 2013 w.r.t. appointment of Independent Directors;

iii. As per Section 149(8) of the Companies Act, 2013 read with Schedule IV of the Companies Act, 2013 separate
meeting of the Independent Directors was not convened for the period under review;

iv. The Company is having approximately 100% Loan Amount as Substandard/NPA as on 31st March, 2024;

In respect of other laws specifically applicable to the company, we have relied on information/data provided by the
Company during the course of audit and reporting is limited to that extent.

We further report that:

The Board of Directors of the Company is not duly constituted with proper balance of Independent Directors as per
Section 149 of the Companies Act, 2013. The following change took place during the period under review:

1. Mr. Rahul Bhave has been appointed as Nominee Director of the Company with effect from 04/01/2024.

2. Mr. Gauri Shankar has been appointed as Additional Director with effect from 09/10/2023.

26
Adequate notice is given to all directors to schedule the Board Meetings, Agenda and detailed notes on agenda were sent
within prescribed time limit, and a system exists for seeking and obtaining further information and clarifications on the
agenda items before the meeting and for meaningful participation at the meeting.

All the decisions of Board of Directors and Committee Meeting were carried unanimously.

We further report that there are adequate systems and processes in the company commensurate with size and
operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

We further report that during the audit period the no event has occurred which had a major bearing on the Company’s
Affair in pursuance of the laws, rules, regulations and standards etc.

For Saurabh Agrawal & Co

Company Secretaries

Place: New Delhi Sd/-

Date : 01/07/2024 Saurabh Agrawal
UDIN: F005430F000640559
Partner
(Saurabh Agrawal & Co.)
FCS No.: 5430
C.P. No.: 4868

27
This report is to be read with our letter of even date which is annexed as ‘ANNEXURE A’ and forms an integral part of
this report.

‘ANNEXURE A’

To
The Members
IFCI Venture Capital Fund Limited
CIN: U65993DL1988GOI030284
IFCI Tower, 61 Nehru Place
New Delhi – 110019

Our Secretarial Audit Report for the financial year 31st March, 2024 is to be read along with this letter.

 Management Responsibility

1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systems
to ensure compliance with the provisions of all applicable laws and regulations and to ensure that the systems are
adequate and operate effectively;

 Auditor’s Responsibility

2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the
Company with respect to secretarial compliances;

3. We believe that audit evidence and information obtained from the Company’s management is adequate and
appropriate for us to provide a basis for our opinion;

4. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about
the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. We believe that the processes and practices, we followed provide
a reasonable basis for our opinion;

5. Wherever required we have obtained the management’s representation about the Compliance of laws, rules and
regulations and happening of events etc;

 Disclaimer

6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted the affairs of the Company;

7. We have not verified the correctness and appropriations of financial records and books of accounts of the Company

For Saurabh Agrawal & Co

Company Secretaries

Place: New Delhi Sd/-

Date: 01/07/2024 Saurabh Agrawal
UDIN: F005430F000640559
Partner
(Saurabh Agrawal & Co.)
FCS No.: 5430
C.P. No.: 4868

28
ANNEXURE IV

29
30
Management reply on comments of the Comptroller and Auditor General of India (C&AG)
The Value of IFCI Venture’s shareholding in Biotech Consortium India Ltd (BCIL) has been updated in the books for
the quarter ended June 2024 in line with the valuation carried out by IFCI Ltd.

31
 REPORT ON CORPORATE GOVERNANCE

1. COMPANY’S PHILOSOPHY

Corporate governance is the set of rules and processes that guide how a company is managed and overseen. It’s
vital for ensuring that businesses operate ethically and in the best interests of those involved. The primary goal of
corporate governance is to prevent corporate greed and promote responsible and transparent business practices.
IFCI Venture Capital Funds Limited (IFCI Venture) has been adhering to Good Corporate Governance Practices
to maintain transparency, accountability and dissemination of information in dealing with all the stakeholders, viz.
Shareholders, Government institutions & departments, Regulatory bodies, Bankers, Employees, and others. It entails
managing business in a manner that is accountable and responsible to the stakeholders.

2. BOARD OF DIRECTORS

A. Composition, Category and Attendance of the Board of Directors

As on March 31, 2024, the Board of the Company consists of 8 (eight) Directors, out of which 4 (four) Directors
were the nominees of IFCI Ltd. (IFCI), the Holding Company consisting of a Non-Executive Chairman, Nominee
Directors and a Managing Director. The remaining 4 (four) Directors were Non-Executive Directors appointed
under the category of Non-Independent Directors.

The composition of the Board, number of Board Meetings held, attendance of the Directors at the Board Meetings,
last Annual General Meeting and number of Directorship and Chairmanship/ Membership of the Committees in
other Companies in respect of each Director for Financial Year 2023-2024 is given below:-

S. Name of Director Category & Date Attendance Particulars No. of Directorship/ Committee
No & DIN of Appointment Memberships/ Chairmanship in other
companies
No. of Board At AGM Other Committee Committee
Meetings during held on directorship Membership Chairmanships
the year 2023-24 September including (ACD & (ACD & SRC)
27, 2023 name of Stakeholders
Held Attended listed Co. & Relationship
Category) Committee)
1. Mr. Manoj Mittal Nominee Director 4 3 Attended 3 - -
01400076 & Non-Executive IFCI Ltd. – MD
Chairman & CEO
(15.06.2021)
2. Mr. Rahul Bhave* Nominee Director 1 1 - 4 4 -
09077979 (04.01.2024) IFCI Ltd (IFCI Ltd)
WTD (IFCI Ltd)
(SHCIL)
(IIDL)
3. Mr.V. Anish Babu Managing Director 4 4 Attended - - -
02830575 (04.04.2022)
4. Mr. Prasoon Nominee Director 4 4 - 1 - -
03599426 (04.10.2022)
5. Mr. Arvind Kumar Jain Non-Executive 4 4 Attended 7 2 3
07911109 Director IFCI Ltd- NED (IFCI Ltd) (PNB Invt. Ser
(10.09.2021) (BOI Trustee) Ltd)
(Paytm Bank)
(IFCI Ltd)
6. Mr. Ajay Kumar Kapur Non-Executive 4 4 Attended 2 3 -
00108420 Director (USFBL)
(10.09.2021) (USFBL)
(Nabfins Ltd)
7. Ms. Tripti Somani Non-Executive 4 3 Attended 5 - -
06764190 Director
(11.09.2022)

32
 S. Name of Director Category & Date Attendance Particulars No. of Directorship/ Committee
No & DIN of Appointment Memberships/ Chairmanship in other
companies
No. of Board At AGM Other Committee Committee
Meetings during held on directorship Membership Chairmanships
the year 2023-24 September including (ACD & (ACD & SRC)
27, 2023 name of Stakeholders
Held Attended listed Co. & Relationship
Category) Committee)
8. Mr. Gauri Shankar** Non-Executive 2 2 - 4 1 1
06764026 Director (PNC Infrat- (Paisalo Dig. Ltd)
(09.10.2023) ech)

* Mr. Rahul Bhave, appointed as Nominee Director of the Company w.e.f. January 04, 2024.
** Mr. Gauri Shankar, was appointed as Non- Executive Director w.e.f. October 09, 2023.

Details of change in composition of the Board during the current and previous financial year. *

S.No Name of Director Capacity (i.e. Executive/Non Nature of Change Effective

Executive/Chairman/Promoter (Resignation, Date
Nominee/Independent) Appointment)
1. Mr. Rahul Bhave Nominee Director Appointment 04.01.2024
2. Mr. Gauri Shankar Non-Executive Director Appointment 09.10.2023

*Pursuant to RBI Circular No. RBI/2022-23/26 DOR. ACC. REC. No.20/21.04.018/2022-23 dated April 19, 2022 w.r.t
disclosure in Corporate Governance Report by NBFC-ML.

Notes:
1. Number of Meetings represents the Meetings held during the period in which the Director was Member of the
Board.
2. In case of Director(s) retired/ resigned, the status of other Directorship and Committee Membership is on the basis
of the last disclosure made by the Director(s).
3. The details of Committee Memberships/Chairmanship considered for the above purpose are Audit Committee and
Stakeholders’ Relationship Committee of all companies in which he/she is a Director.
4. None of the Directors are related to each other or to any Key Managerial Personnel of the Company.
5. None of the Directors hold any shares or non-convertible instruments of the Company.
6. None of the Directors held directorship in more than 10 Public Limited Companies.
7. None of the Directors on the Board are Members of more than 10 (ten) committees or Chairman of more than 5
(five) committees across all the companies in which he/ she is a Director.
8. Necessary disclosures regarding the positions in other public companies as on March 31, 2024 have been made by
the Directors.
9. Chart/ Matrix setting out the skills/expertise / competence of Board of Directors & name of Directors who have
such skills/ expertise/ competence.

1. Educational 1. Possess any Graduation/ Post Graduation/ M. Phil / Doctorate/such other qualification as may be
Qualification deemed fit.
2. Possess any other Professional Qualification / Degree/ Diploma/such other qualification as may
be deemed fit.
2. Experience / 1. Possess appropriate skills, experience and knowledge in one or more fields of finance, law,
Expertise management, sales, marketing, administration, research, corporate governance, technical
operations or other disciplines related to the Company’s business.
2. Preferably have undergone requisite training programme or mid-career Professional
Development trainings which would have enabled him/her to adapt to changing dynamics of
business environment.

33
B. Number of Board Meetings held and dates:

During the Financial year 2023-24, the Board of Directors met 4 (four) times, the dates of the Meetings were May
18, 2023, August 07, 2023, November 06, 2023 and February 06, 2024.

3. AUDIT COMMITTEE

A. TERMS OF REFERENCE

The terms of reference of Audit Committee broadly includes (a) To review with the management, the annual financial
statements before submission to the board for approval; (b) To review, with the management, performance of
statutory and internal auditors, and adequacy of the internal control systems.; (c) To review the adequacy of internal
audit function; (d) The recommendation of appointment, remuneration and terms of appointment of Auditors of the
Company; (e) To ensure that an Information Systems Audit of the Internal Systems and processes are conducted;
(f) The adequacy of internal controls including computerized information system controls and security.; (g) Review
and monitor the auditor’s independence and performance, and effectiveness of audit process; and (h) To consider
internal audit reports, reviews internal controls and verify that the system for internal control are adequate and
are operating effectively and provides guidance and direction to the internal audit function. To review the corporate
accounting and reporting practices. Review with the management the quarterly/ half yearly financial statements
of the Company and Auditors reports, before submission to the Board for approval; (i) To review all related party
transactions in the Company; (j) To provide an open avenue of communication between the independent auditors,
internal auditors and the Board of Directors; (k) Scrutiny of inter-corporate loans and investments; (l) Fraud review
and reporting.

B. COMPOSITION, MEETINGS AND ATTENDANCE OF THE COMMITTEE

The composition of the Audit Committee and attendance of Directors at the Meetings, during the F.Y. 2023-24 is
shown below:

S. Name of Member Category No. of Meetings Member of

No. Held Attended Committee since

1. Ms. Tripti Somani (C) Non-Executive Director 4 3 24.01.2023

2. Mr. Arvind Kumar Jain Non-Executive Director 4 4 14.10.2021
3. Mr. Prasoon Nominee Director 4 4 31.10.2022
4. Mr. Gauri Shankar* Non-Executive Director 2 2 13.10.2023

* The Committee was re-constituted and introduced Mr. Gauri Shankar w.e.f October 13, 2023.

Note: Number of Meetings represents the Meetings held during the period in which the Director was Member of the
committee.The composition of Audit Committee is not in compliance with the relevant provisions of the Companies Act,
2013 due to not having Independent Director on the Board of the Company.

The Statutory Auditors and other senior executives were invited to participate in the Meetings of the Audit Committee
wherever necessary, as decided by the Committee.The Company Secretary acts as the secretary of the Audit Committee.

During the Financial year 2023-24, the Audit Committee met 4 (four) times, the dates of the Meetings were May 18, 2023,
August 07, 2023, November 06, 2023 and February 06, 2024.

4. NOMINATION AND REMUNERATION COMMITTEE

A. TERMS OF REFERENCE

The terms of reference of Nomination and Remuneration Committee broadly include: (a) to Identify persons who
are qualified to become directors (excluding Independent Directors and IFCI’s Nominee Directors) and who may be
appointed in Senior Management as per the criteria laid down and recommending to the Board their appointment
and removal; (b) To formulate the criteria for evaluation of performance of Independent Directors and the Board; (c)

34
 To decide on the annual bonus/ variable pay pool and policy for its distribution across the executives; (d) Formulation/
Review of Policy on HR matters, including career management and succession planning; (e) Recommend to the
Board, all remuneration, in whatever form, payable to senior management.

B. COMPOSITION, MEETINGS AND ATTENDANCE OF THE COMMITTEE

The composition of the Nomination and Remuneration Committee and attendance of Directors at the Meetings,
during the F.Y. 2023-24, is shown below:

S. No. Name of Member Category No. of Meetings Member of

Held Attended Committee since
1. Mr. Prasoon (C) Nominee Director 1 1 24.01.2023
2. Mr. Arvind Kumar Jain Non-Executive Director 1 1 14.10.2021
3. Ms. Tripti Somani Non-Executive Director 1 1 31.10.2022
4. Mr. Ajay Kumar Kapur* Non-Executive Director 0 0 13.10.2023

* The Committee was re-constituted and introduced Mr. Ajay Kumar Kapur in place of Ms. Tripti Somani w.e.f
October 13, 2023.

Note: Number of Meetings represents the Meetings held during the period in which the Director was member of
the committee. The composition of Nomination & Remuneration Committee is not in compliance with the relevant
provisions of the Companies Act, 2013 as the Company is not having Independent Director on the Board of the Company.

During the Financial year 2023-24, the Nomination and Remuneration Committee of Directors met 1 (one) time, the date
of the Meeting was May 17, 2023.

5. EXECUTIVE COMMITTEE

A. TERMS OF REFERENCE

The terms of reference of Nomination and Remuneration Committee broadly include: (a) To review the affairs of
assisted concerns and/or to note/approve merger/amalgamation/ change of controlling interest /management/hiving
of divisions/one time settlement / negotiated settlement of dues/ conversion of loans into equity/ rehabilitation
package/ restructuring/ rescheduling of terms of financial assistance to all concerns with outstanding principal amount
and to approve consequential waiver of dues; (b) To consider all other MIS/Periodical reports by the management in
which no policy issues are involved.

B. COMPOSITION, MEETINGS AND ATTENDANCE OF THE COMMITTEE

The composition of the Executive Committee and attendance of Directors at the Meetings, during FY 2023-24, is
shown below:

S. No. Name of Member Category No. of Meetings Member of Committee

Held Attended since
1. Mr. Prasoon (C) Nominee Director 3 3 31.10.2022
2. Mr. Arvind Kumar Jain Non-Executive Director 3 3 14.10.2021
3. Mr. Ajay Kumar Kapur Non-Executive Director 2 2 14.10.2021 till 13.10.2023
4. Mr.V. Anish Babu Managing Director 3 3 04.04.2022
5. Mr. Gauri Shankar* Non-Executive Director 1 1 13.10.2023

* The Committee was re-constituted and introduced Mr. Gauri Shankar in place of Mr. Ajay Kumar Kapur w.e.f.
October 13, 2023.

Note: The number of Meetings represents the Meetings held during the period in which the Director was a Member of
the committee.

35
During the Financial Year 2023-24, the Executive Committee of Directors met 3 (three) times, the date of the Meeting
were May 17, 2023, August 04, 2023 and November 03, 2023.

6. CORPORATE SOCIAL RESPONSIBILITY COMMITTEE

A. TERMS OF REFERENCE

The terms of reference of the Corporate Social Responsibility (CSR) Committee are (a) to recommend the aggregate
amount of expenditure to be incurred on the prescribed activities; (b) to approve the CSR Activities involving the
prescribed limit as approved by the Board; (c) to look into projects/programs to be undertaken in areas and the
manner of execution/implementation of such projects/programs; (d) to monitor the Corporate Social Responsibility
Policy of the Company, from time to time.

B. COMPOSITION, MEETINGS AND ATTENDANCE OF THE COMMITTEE

The composition of the Corporate Social Responsibility Committee and attendance of Directors at the Meetings,
during the FY 2023-24, is shown below:

S. No. Name of Member Category No. of Meetings Member of Committee

Held Attended since
1. Ms. Tripti Somani (C) Non-Executive Director 2 2 31.10.2022
2. Mr.V. Anish Babu Managing Director 1 1 04.04.2022 till 13.10.2023
3. Mr. Arvind Kr. Jain Non-Executive Director 1 1 28.07.2023 till 13.10.2023
4. Mr. Ajay Kr. Kapur* Non-Executive Director 1 1 13.10.2023
5. Mr. Gauri Shankar* Non-Executive Director 1 1 13.10.2023

*The Committee was re-constituted and introduced Mr. Ajay Kumar Kapur in place of Mr. Arvind Kumar Jain w.e.f
October 13, 2023 and Mr. Gauri Shankar in place of Mr.V. Anish Babu w.e.f October 13, 2023.

Note: The number of Meeting represents the Meeting held during the period in which the Director was Member of the
Committee.The composition of CSR Committee is not in compliance with the relevant provisions of the Companies Act,
2013 due to not having Independent Director on the Board of the Company.

During the Financial year 2023-24, the Corporate Social Responsibility (CSR) Committee of Directors met 2 (two) times,
the dates of the meeting were August 04, 2023 and February 19, 2024.

7. IT STRATEGY COMMITTEE OF DIRECTORS

A. TERMS OF REFERENCE

The terms of reference of the IT-Strategy Committee includes (i) To review IS Audit and oversee the streamlining
operation of the IT in the organization; (ii) To review, report on and make recommendations for the improvement
of the IT infrastructure and IT systems; (iii) Approving IT strategy and policy documents and ensuring that the
management has put an effective strategic planning process in place; (iv) To guide IT Department of the Company to
develop and implement all IT policies and procedures, including those for architecture, security, disaster recovery;
(v) To oversee the deployment of long-term strategic plans for acquiring and enabling efficient and cost-effective
information processing and communication technologies; (vi) To oversee the acquiring, deployment, monitoring,
maintenance, development, and support of all hardware and software based on department needs; (vii) To seek IT
solutions that support business operations; (viii) Ascertaining that management has implemented processes and
practices that ensure that the IT delivers value to the business; (ix) Ensuring IT investments represents a balance of
risks and benefits and that budgets are acceptable; (x) Monitoring the method that management uses to determine
the IT resources needed to achieve strategic goals and provide high-level direction for sourcing and use of IT
resources; (xi) Ensuring proper balance of IT investments for sustaining NBFC’s growth and becoming aware about
exposure towards IT risks and controls.

36
B. COMPOSITION, MEETINGS AND ATTENDANCE OF THE COMMITTEE

The composition of the IT Strategy Committee of Directors and attendance of Directors at the Meetings, during the
FY 2023-24, is shown below:

S. No. Name of Member Category No. of Meetings Member of Committee

Held Attended since
1. Mr. Ajay Kumar Kapur (C) Non-Executive Director 3 3 31.10.2022
2. Mr. Prasoon Nominee Director 3 3 31.10.2022
3. Ms. Tripti Somani Non-Executive Director 3 2 31.10.2022

Note: The number of Meeting represents the Meeting held during the period in which the Director was Member of the
Committee.

During the Financial year 2023-24 the IT Strategy Committee of Directors met 3 (three) times and the dates of meetings
were May 17, 2023, August 05, 2023 and February 29, 2024.

8. RECOVERY AND NPA MANAGEMENT COMMITTEE

A. TERMS OF REFERENCE

The terms of reference of Recovery and NPA Management Committee is (a) to have more effective control on the
recovery of both Standard Accounts as well as NPA Accounts; (b) to monitor the recovery efforts in all accounts; (c)
to ensure that all accounts are properly identified for classification as NPA; (d) Periodic review of Non-Performing
Assets / Investments; (e) Review of SMA Accounts.

B. COMPOSITION, MEETINGS AND ATTENDANCE OF THE COMMITTEE

The composition of the Recovery and NPA Management Committee and attendance of Directors at the Meetings,
during the FY 2023-24, is shown below:

S. No. Name of Member Category No. of Meetings Member of Committee

Held Attended since
1. Mr. Prasoon* (C ) Nominee Director 1 1 31.10.2022
2. Mr.V. Anish Babu* Managing Director 1 1 04.04.2022 till 13.10.2023
3. Mr. Arvind Kumar Jain Non-Executive Director 1 1 14.10.2021
4. Mr. Gauri Shankar (C) Non-Executive Director 0 0 13.10.2023

* The Committee was re-constituted and introduced Mr. Gauri Shankar in place of Mr. V. Anish Babu w.e.f. October
13, 2023 and designate him as Chairman of the Committee.

Note: The number of Meetings represents the Meetings held during the period in which the Director was Member of the
committee.

During the Financial year 2023-24, the Recovery and NPA Management Committee of Directors met 1 (one) time, the
date of the meeting was April 11, 2023.

9. RISK MANAGEMENT COMMITTEE

A.TERMS OF REFERENCE

The terms of reference of Risk Management Committee broadly includes: (a) To formulate a detailed risk management
policy including review of the same and satisfying itself that policies and procedures are in place to manage risks
and critically assessing the institution’s business strategies and plans from a risk perspective and advising the Board
suitably; (b) Review Cyber Security and the Risk associated with it.

37
B. COMPOSITION, MEETINGS AND ATTENDANCE OF THE COMMITTEE

The composition of the Risk Management Committee and attendance of Directors at the Meeting, during the FY
2023-24, is shown below:

S. No. Name of Member Category No. of Meetings Member of Committee

Held Attended since
1. Mr. Arvind Kumar Jain (C) Non-Executive Director 3 3 24.01.2023
2. Mr. Ajay Kumar Kapur Non-Executive Director 3 3 14.10.2021
3. Ms. Tripti Somani Non-Executive Director 3 3 31.10.2022

Note: The number of Meeting represents the Meeting held during the period in which the Director was Member of the
committee.

During the Financial year 2023-24, the Risk Management Committee of Directors met 3 (three) times the date of
meetings were May 17, 2023, August 04, 2023 and November 03, 2023.

10. STAKEHOLDERS’ RELATIONSHIP COMMITTEE

As the number of shareholders of the Company being nine including four shareholders representing beneficial
interest of IFCI Ltd., Stakeholders’ Relationship Committee is not required to be constituted in IFCI Venture. This is
to confirm that no complaints/grievances were received from the Shareholders during the FY 2023-24.

11. GENERAL BODY MEETINGS

A. Date,Venue and Time for the last three General Body Meetings:

AGM Date Venue Time

30/09/2021 IFCI Tower, 61 Nehru Place, New Delhi-110019 2:30 P.M.
30/09/2022 IFCI Tower, 61 Nehru Place, New Delhi-110019 3:00 P.M.
27/09/2023 IFCI Tower, 61 Nehru Place, New Delhi-110019 3:00 P.M.

B. Details of Special Resolutions passed in the previous three Annual General Meetings:

AGM DATE Particulars of Special Resolution

30/09/2021 No special resolution was passed by the shareholders of IFCI Venture.
30/09/2022 No special resolution was passed by the shareholders of IFCI Venture.
27/09/2023 No special resolution was passed by the shareholders of IFCI Venture.

12. DISCLOSURES

(i) Remuneration to other Directors: -

(in Rs)

SI. No. Name of the Sitting Fee for attending Conveyance Charges Total
Directors Board/ Committee meetings
1. Ms. Tripti Somani 237000 - 237000
2. Mr. Ajay Kumar Kapur 231000 - 231000
3. Mr. Arvind Kumar Jain 291000 - 291000
4. Mr. Gauri Shankar 108000 - 108000

* No Commission was paid during the year.

38
(ii) Transaction with the related party (as per IND AS) during the period ended March 31, 2024:-

Nature of Relationship
Name of the Related Party
Holding Company IFCI Ltd.
Key Managerial Personnel (S. No. ii on deputation
i) Sh. Manoj Mittal – Non-Executive Chairman
from IFCI Ltd) ii) Sh.V. Anish Babu (MD)
iii) Sh. Rahul Bhave – Nominee Director
iv) Sh. Prasoon _ Nominee Director
v) Sh. Ajay Kapur – NED
vi) Sh. Arvind Jain – NED
vii) Smt. Tripti Somani – NED
viii) Sh. Gauri Shankar
viii) Mrs. Indu Gupta- (CFO)
ix) Mr. Rachit Tandon- (CS)
Fellow Subsidiaries IFCI Financial Services Ltd. (IFIN)
IFIN Securities Finance Ltd. (Indirect control through IFIN))
IFCI Factors Ltd. (IFL)
Stock Holding Corporation of India Ltd.
IFCI Social Foundation (Trust)
MPCON Ltd
IFCI Holding Document Management Services Ltd
Associates VCFBC
VCFST
SAGE Venture Fund
Associates held for sale
-Sharon Solution Ltd
-Titan Energy System Ltd

Type of Transaction – Current Year Previous Year

1. IFCI (Rs. in lakh) (Rs. in lakh)
Rent & Maintenance paid to IFCI Ltd.(Exclusive of taxes and cess) 165.98 167.10
Salaries paid to IFCI for employees deputed by IFCI Ltd. 98.29 59.19
Paid towards other expenses 1.38 1.14
Paid towards IT Services taken from IFCI.(Exclusive of taxes) 17.50 17.50
Salaries received for employees deputed to IFCI Ltd 43.41 18.79
2.IFCI Social Foundation – CSR contribution -- 16.05
3. IFCI Financial Services Ltd.
Brokerage/Professional fee paid 0.11 0.34
4.Stock Holding Corporation of India Ltd.
Brokerage/Professional fee paid 0.01 0.09
5. IFCI Factors Ltd (IFL) 29.03 16.34
6. MPCON Ltd
Salaries paid for employees deputed 41.14 11.31
7. IFCI Holding Document Management Services Ltd
Digitization of Documents 3.61 --
8. Associates:
VCF BC – Management Fee 225.22 186.27
SAGE Fund – Management Fee 53.81 31.11
VCFST 16.42 --

39
 Balance Outstanding with the related party during the period: -

Outstanding Balances – Current Year Previous Year

(in Lakhs) (in Lakhs)
IFCI 4.16 9.11
Payable to IFCI towards salary of employees deputed by IFCI
Interest accrued on Bonds - IFCI Ltd. 1274.29 1076.65
Bonds Subscribed& outstanding 1000.00 1000.00
IT Services from IFCI 2.76 2.76
Receivable from IFCI towards salary of employees deputed to IFCI -- 11.96
Other Payables 1.33 --
IFCI Factors Ltd-
Payable to IFCI towards salary of employees deputed by IFCI 2.93 4.35
Management fee- VCFBC 6.19 4.85

The transactions entered with the related parties are at Arm’s Length basis.

Except for the above, there were no significant related party transactions i.e. transactions material in nature with its
Promoters/Promoter Group, Directors or the management, their subsidiaries or relatives etc. which holds 10% or
more of shareholding in the entity that may potentially conflict with the interests of the Company at large.

(iii) In view of the size and operations of IFCI Venture, the Company has adopted the Vigil Mechanism Policy, in line with
the Companies Act, 2013.
(iv) There were no penalties, strictures imposed by the stock exchange/RBI on the listed entity/its directors during the
F.Y. 2023-24.
(v) The company had complied with the mandatory requirement of SEBI (LODR) 2015 w.r.t compliances pertaining to
the non-convertible securities and provisions of Companies Act, 2013 and Secretarial Standard.
(vi) There were no instances where the Board of Directors has not accepted the recommendation of the Audit
Committee/other committee of Directors.
(vii) The total fees being paid to the Statutory Auditor for the F.Y. 2023-24 has being disclosed in the Financial Statements
forming part of this Annual Report.
(viii) The disclosure in respect to the Sexual Harassment of Women at Workplace has being disclosed in the Annual
Report.
(ix) There were no transaction w.r.t ‘Loans and advances’ where any of the directors are interested.
(x) IFCI Venture, being a NBFC had complied with the covenants w.r.t debt securities issued which are listed on BSE.
(xi) As IFCI Venture is not under obligation to comply with the mandatory clauses w.r.t obtaining of certificates by PCS,
on disqualification of directors and compliance of various conditions of corporate governance, this report is being
prepared as a Good Corporate Governance Practice.

13. MEANS OF COMMUNICATION

The Annual Report and other statutory information are being sent to shareholders.

In compliance of the provisions of the Listing Agreement/Regulation of Debt Securities, the financial results of the
company are generally published in Financial Express newspaper, uploaded on company website www.ifciventure.
com. and informed the Stock Exchange through the listing center.

14. GENERAL SHAREHOLDERS INFORMATION

As per the notice attached to this Annual Report, the Annual General Meeting of the Company will be held on
(September 24, 2024).
a) The Financial Year of IFCI Venture is from April 1, 2023 to March 31, 2024.

40
b) Listing on Stock Exchanges and Listing Fees:
The Non-Convertible Redeemable Bonds of the Company on private placement basis are listed on BSE Limited
having address at P. J. Towers, Dalal Street, Mumbai 400 001. The Company had paid the listing fee to BSE Ltd for the
F.Y. 2023-2024 within its due date. The bonds are privately placed and rarely/not frequent tradeable in the market.
No equity shares of the company are listed on any recognised stock exchange(s).
c) Rating assigned by credit ratings agencies and migration of ratings during the year:
Credit Rating Agency 31/03/2024
CARE CARE BB; Negative
(Double B; Outlook; Negative) Reaffirmed
Brickwork BWR B+/Negative/Reaffirmation)

d) Shareholding Pattern as on March 31, 2024 and March 31, 2023 are given as under:-

As on March 31, 2024 As on March 31, 2023

No. of shares (%) No. of shares (%)
IFCI Ltd.# 5,95,21,008# 98.60 5,95,21,008# 98.60
Other Body Corporates 8,50,000 1.40 8,50,000 1.40
Total 6,03,71,008 100.00 6,03,71,008 100.00

# Includes four shares held by employees, for the beneficial interest, of IFCI, which are mentioned as below: -
NAME OF THE BENEFICIARY NUMBER OF SHARES HELD BENEFICIAL INTEREST WITH
Mr. Manish Kumar 1 IFCI LIMITED
Mr. Nitin Bagga 1 IFCI LIMITED
Mr. Praveen Kumar Vishwakarma 1 IFCI LIMITED
Mr. Amit Joshi 1 IFCI LIMITED

e) Address of Registered Office for correspondence:

Name and Address: IFCI Venture Capital Funds Ltd.
16th Floor, IFCI Tower
61 Nehru Place
New Delhi – 110 019.
Telephone: 41732511, 41732525
E-mail: [email protected]
Website: www.ifciventure.com

f) Registrar to the Issue and Share Transfer Agent:

Name and Address: MCS Share Transfer Agent Ltd.
F-65, 1st floor
Okhla Industrial Area,
Phase I, New Delhi-110020
Telephone: (011) 4140 6148
Fax No: (011) 5170 988
E-mail: [email protected]
g) Declaration of Compliance with the Code of Conduct for Board Members and Senior Management Personnel.

This is to confirm that the Company has adopted a Code of Conduct for Board Members and its employees. The
Code of Conduct as adopted is available on the Company’s website. It is further confirmed that the Company
has, in respect of the Financial Year ended March 31, 2024, received from the Members of the Board and Senior
Management, a declaration of Compliance with the Code of Conduct as applicable to them.

Sd/-
Date: August 06, 2024 V. Anish Babu
Place: New Delhi (Managing Director)
DIN: 02830575

41
 INDEPENDENT AUDITOR’S REPORT

To
The Members of
IFCI VENTURE CAPITAL FUNDS LIMITED

Report on the audit of Ind AS Financial Statement

This revised Independent Auditor’s Report is being issued in supersession of our earlier Independent Auditor’s Report
dated 22nd April 2024, at the instance of Comptroller and Auditor General (C&AG) of India. The revised report is
issued in view of certain modification in Annexure ‘B’ –Statements on the matter Specified in directions issued by the
Comptroller and Auditor General of India in accordance with Section 143(5) of the companies Act, 2013 as pointed
out by C&AG of India in our earlier report, Annexure –A of Independent Auditors Report pertaining to the regulatory
requirement of the auditor as required by the Companies (Auditor’s Report) Order, 2020 (CARO) issued by the Central
Government of India in terms of sub section (11) of section 143 of the Companies Act, 2013 and Report on Other Legal
and Regulatory Requirements of Independent Auditor’s Report. Further, we confirm that these changes do not affect true
& fair view and our opinion as expressed earlier.

Opinion

We have audited the accompanying Ind AS financial statements of IFCI VENTURE CAPITAL FUNDS LIMITED
(“the Company”), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including
other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement for the year then
ended, and notes to the Ind AS financial statements, including a summary of the significant accounting policies and other
explanatory information (herein after referred to as “financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2024, and profit and total comprehensive income, the changes in equity and its cash flows for the year
then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the
Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements
that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of
Ethics.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors is responsible for the other information. The other information comprises the
information included in the Board’s report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon. As the company has not prepared directors report at this stage hence, we are unable to
express our opinion whether the other information in board report is materially misstated or not.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.

42
Emphasis of Matter

We draw attention to the Note no. 1(A), 5, 20 & 29 of the financial statement regarding change in accounting policy
towards recognition of interest income on Stage-3 assets and write off the amount which have no reasonable expectation
of recovery with effect from 01st April 2021.

The results for the year were materially affected by Changes in accounting policies. The Board considered Memorandum
No. 1856/23-24 and took note of the recommendation of the CAG after receiving the clarification from ICAI and RBI for
recognition of interest income on Stage 3 assets in line with IND AS 109.

Accordingly, interest income for FY 2022-23 and 2021-22 has increased by INR 1,163.41 Lakhs and INR 1,266.84 Lakhs
respectively. Since there is no expectation of recovery, the same has been written off as bad debts respectively. Hence,
there is no impact on Net Profit/Net loss of these years respectively.

During the FY 2023-24, the company has recognized the Interest income of INR 1,117.10 Lakhs and written off the INR
1,104.29 Lakhs as bad debts, since there is no expectation of recovery for the same.

Our opinion is not modified in this matter.

Responsibility of Management for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the
Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position,
financial performance total comprehensive income changes in equity and cash flows of the Company in accordance
with the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of Ind AS
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Financial Statements

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

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

43
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing an opinion on the operating effectiveness of
the Company’s internal controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be
influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial
statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (the Order) issued by the central Government
of India in terms of Section 143(11) of the Act, we give in the Annexure “A” a statement on the matters
specified in paragraphs 3 and 4 of the Order;
2. As required by Section 143 (5) of the Act, we have considered the directions & sub-directions issued by the
Comptroller & Auditor General of India. We give our report in the attached Annexure “B”.
3. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by the law have been kept by the Company so far as
it appears from our examination of those books.
(c) The balance sheet, the statement of profit and loss (including other comprehensive income), the statement
of changes in equity and the statement of cash flows dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under
Section 133 of the Act.
(e) As per notification no. G.S.R 463(E) dated 05 June, 2015 issued by Ministry of Corporate Affairs, Section
164(2) of the Companies Act is not applicable to a Government Company. Thus, no reporting is made
under this point.
(f) Reporting on the adequacy of Internal Financial Controls with reference to financial statements of the
Company and the operating effectiveness of such controls, under section 143(3)(i) of the Act, Refer to our
Separate report in Annexure “C.”

44
 (g) With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as amended:
According to the information and explanations given to us and in terms of GSR 463 (E) dated June 05,
2015, issued by the Ministry of Corporate Affairs, the provisions of Section 197 pertaining to managerial
remuneration do not apply to a government company. Accordingly, paragraph 3(xi) of the Order is not
applicable.
(h) With respect to the other matters included in the Auditor’s Report in accordance with Rule 11 of the
Companies Act (Audit and Auditors) Rules, 2014 in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has two pending litigations with the Income Tax Department for the Assessment Year
2017-18 and 2018-19. The amount disputed under these cases are Rs. 53.04 Lakhs and Rs. 505.07
Lakhs respectively. The cases are currently pending before the Commissioner of Income Tax (Appeals)
[CIT (A)]. However, the impact of the same on financial position cannot be ascertained at present.
(ii) The Company did not have any long-term contracts including derivatives contracts causing any
material foreseeable losses.
(iii) There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.
(iv) (a) The management has represented that, to the best of it’s knowledge and belief, other than as
disclosed in the notes to the accounts, no funds have been advanced or loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by the
company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
whether, directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries;
(b) The management has represented, that, to the best of it’s knowledge and belief, other than as
disclosed in the notes to the accounts, no funds have been received by the company from any
person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries; and
(c) Based on audit procedures performed, nothing has come to our notice that has caused us to
believe that the representations under sub-clause (i) and (ii) contain any material misstatement
(v) The company has neither declared nor paid any dividend during the current period.
(vi) As per the notification no. G.S.R. 235(E), Dated: 31.03.2022, the MCA has implementation of audit
trail software commencing from financial year 2023-24. Based on our examination which include test
checks, the company has used an accounting software for maintaining its books of account which has
a feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the software. Further, during the course of our audit we did not
come across any instance of audit trail feature being tempered with.
FFor M D Gujrati & Co,
Chartered Accountants
FRN:-005301N

Sd/-
G L Agrawal
Partner
Place: New Delhi Membership No. 087454
Date: July 11, 2024 UDIN: 24087454BKALWA3929

45
 ANNEXURE- A TO THE INDEPENDENT AUDITORS REPORT

With reference to annexure referred to in paragraph 1 under ‘Report on Other Legal and Regulatory
Requirements’ section of our report of even date for the year ended March 31, 2024 on the financial
statements of IFCI VENTURE CAPITAL FUNDS LIMITED, we report that:

(i) In respect of Property Plant and Equipment (PPE) and Intangible assets (IA):

a) The company has maintained proper records showing full particulars, including quantitative details and situation
of Property, Plant and Equipment & Intangible Assets.

b) PPE were physically verified during the year by the Management in accordance with a regular programme
of verification which, in our opinion, provides for physical verification of all the PPE at reasonable intervals.
According to the information and explanation given to us, no material discrepancies were noticed on such
verification.

c) According to the information and explanations given to us and the records examined by us, the company
doesn’t hold any immovable properties of land and buildings which are either freehold or leasehold as at the
balance sheet date. Accordingly, reporting under clause (i) (c) of paragraph 3 of the Order is not applicable.

d) According to the information and explanation given to us and the records examined by us, the company has
not revalued its property plant and equipment & intangible asset during the year. Accordingly, reporting under
clause (i)(d) of the Order is not applicable.

e) According to the information and explanation given to us and the records examined by us, no any proceeding
have been initiated or are pending against the company for holding any benami property under the Benami
Transactions (prohibition) Act, 1988 and the rules made thereunder. Accordingly, reporting under clause (i)(e)
of the Order is not applicable.

(ii) In respect of Inventory & Working Capital:

a) As the company is engaged in providing of Services and does not have any inventory. Accordingly, reporting
under clause (ii) of paragraph 3 of the Order is not applicable.

b) According to the information and explanation given to us and the records examined by us, the company has
not been sanctioned any working capital loan. Accordingly, reporting under clause (ii)(b) of paragraph 3 of the
Order is not applicable.

(iii) In respect of Investment, Loans & Advances:

a) According to the information and explanations given to us, the company has not granted any loan, secured or
unsecured to companies, firm, limited liabilities partnerships or other parties covered in the register maintained
under Section 189 of the Companies Act, 2013. Accordingly, reporting under clause (iii)(a) of paragraph 3 of the
Order is not applicable.

b) The Company, being a Non-Banking Financial Company (‘NBFC’), registered under provisions of RBI Act, 1934.
In our opinion and according to the information and explanations given to us, the investments made, guarantees
provided, security given and the terms and conditions of the grant of all loans and advances in the nature of
loans and guarantees, provided during the year are, prima facie, not prejudicial to the Company’s interest.

c) In our opinion and according to the information and explanations given to us, in respect of loans and advances
in the nature of loans, the schedule of repayment of principal and payment of interest has been stipulated and
in cases where repayment of principal and payment of interest is not received as stipulated, the cognizance
thereof is taken by the Company in course of its periodic regulatory reporting. Refer note 48B to the Financial
Statements for summarized details of such loans.

46
 d) In respect of loans and advances in the nature of loans, the total amount overdue for more than ninety days
are as under.The Company takes steps for recovery of the principal and interest as per its defined procedures,,
which in our opinion are reasonable.

No. of borrowers Principal amount overdue Interest overdue Total overdue

(₹ in Lakhs) (₹ in Lakhs) (₹ in Lakhs)
9 10,317.19 357.66 10,674.85

e) Since the Company’s principal business is to give loans.Accordingly, the provision of clause 3(iii)(e) of the Order
is not applicable to it.

f) In our opinion and according to information and explanation given to us, there are no loans given which
are repayable on demand or without specifying the terms. Accordingly, the provision of clause 3(iii)(f) is not
applicable to it.

(iv) In our opinion and according to the information and explanations provided to us, the Company has not granted
any loans or provided any guarantees or security to the parties covered under Section 185 and 186 of the Act.
Accordingly, reporting under clause (iv) of paragraph 3 of the Order is not applicable.

(v) In our opinion and according to the information and explanation given to us, the Company has not accepted any
deposits in contravention of the directives issued by the Reserve Bank of India and the provisions of sections 73 to
76 or any other relevant provisions of the Companies Act 2013 and the rules framed there under, where applicable,
have been complied with. No order has been passed by the Company Law Board or National Company Law Tribunal
or RBI or any court or any other tribunal.

(vi) According to the information and explanations given to us, the maintenance of cost records has not been specified
by the Central Government under Section 148 (1) of the Companies Act, 2013 for the business activities carried out
by the Company. Accordingly, reporting under clause (vi) of paragraph 3 of the Order is not applicable.

(vii) According to the information and explanations given to us,

a) The Company has generally been regular in depositing undisputed statutory dues including goods and service
tax, provident Fund, employee state insurance, income-tax, duties of custom, cess and other material statutory
dues applicable to it with appropriate authorities. There were no undisputed amounts payable in respect of
aforesaid dues outstanding for a period of more than six months from the date they become payable as on
March 31, 2024, as per the accounts of the company.

b) Wherever any dues/demand has been raised by any statutory authority and has been disputed by the Company,
the same has been duly deposited under contest except in following cases:

Name of the Nature of Disputed Amount Paid/ Year to which Forum, where
statute dues Amount Adjusted demand dispute is
(in Lakhs) (in Lakhs) relates pending
Income Tax Act, 1961 Income Tax 53.04 53.04 AY 2017-18 CIT(A), New Delhi
Income Tax Act, 1961 Income Tax 505.07 559.90 AY 2018-19 CIT(A), New Delhi
# The department has withheld excess amount than the demand raised, and the company has filed a writ petition before the Delhi
High Court for refund of excess amount.

(viii) In our opinion, according to the information and explanation given to us, there is no any unrecorded income
surrendered or disclosed in the income tax assessment during the year. Accordingly, reporting under clause (viii) of
paragraph 3 of the Order is not applicable.

(ix) Reporting under this clause is below;

a) In our opinion and according to the information and explanations given to us, the Company has not defaulted
in the repayment of loans or borrowings or payment of Interest to any lender.

47
 b) According to the information and explanations given to us, the company is not declared willful defaulter by any
bank or financial institution or any other lender.

c) According to the information and explanations given to us, the company has not taken any term loan during
the year. Accordingly, reporting under clause (ix)(c) of paragraph 3 of the Order is not applicable.

d) According to the information and explanations given to us, the company has not raised any funds on short term
basis which have been utilized for long term purposes. Accordingly, reporting under clause (ix)(d) of paragraph
3 of the Order is not applicable.

e) The company has associates, however, no funds were raised for fulfilling the obligation of its associates.
Accordingly, reporting under clause (ix)(e) of paragraph 3 of the Order is not applicable.

f) According to the information and explanations given to us, the company has not raised any loans during the
year on the pledge of securities held in its subsidiaries, associate, or joint ventures. Accordingly, reporting under
clause (ix)(f) of paragraph 3 of the Order is not applicable.

(x) Reporting under this clause is below;

a) The Company has not raised monies by way of initial public offer or further public offer (including debt
instruments) or term loans. Accordingly, reporting under clause (ix) (a) of paragraph 3 of the Order is not
applicable.

b) During the year, the Company has not made any preferential allotment or private placement of shares or fully
or partly convertible debentures and hence reporting under clause (x)(b) of paragraph 3 of the Order is not
applicable to the Company.

(xi) a) To the best of our knowledge and according to the information and explanations given to us, no fraud by the
Company and no material fraud on the Company has been noticed or reported during the year. Accordingly,
reporting under clause (xi)(a) of paragraph 3 of the Order is not applicable.

b) On the basis of information and explanations given to us, there were no frauds by the company or on the
company by its employees or management which was identified during the course of audit. Accordingly,
reporting under clause (xi)(b) of paragraph 3 of the Order is not applicable.

c) On the basis of information and explanations given to us, no whistle-blower complaints were received during
the year. Accordingly, reporting under clause (xi)(c) of paragraph 3 of the Order is not applicable.

(xii) In our opinion, the Company is not a Nidhi company. Accordingly, reporting under sub clause (a), (b) and (c) of clause
(xii) of paragraph 3 of the Order is not applicable.

(xiii) The Company is a subsidiary of a government company and hence the provisions of Section 177 of the Act are
applicable to the Company. In our opinion and according to the information and explanations given to us, the
Company is in compliance with Section 188 of the Act, where applicable, for all transactions with the related parties
and the details of related party transactions have been disclosed in the financial statements as required by the
applicable accounting standards.

(xiv) (a) The company has an internal audit system commensurate with the size and nature of its business;

(b) The reports of the Internal Auditors for the period under audit were considered by the Statutory Auditor and
no material discrepancies were noticed in the internal audit report.

(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not
entered into any non-cash transactions with its directors or persons connected to its directors and hence provisions
of Section 192 of the Act are not applicable.

48
(xvi) Reporting under this clause is below;

a) The Company is required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and the
company has obtained the registration certificate from RBI.

b) In our opinion and according to the information and explanations given to us, the company has conducted
Non-Banking Financial or Housing Finance activities with a valid certificate of registration from the Reserve
Bank of India (RBI) as per the RBI Act, 1934.

c) In our opinion and according to the information and explanations given to us, the company is not a Core
Investment Company as defined in the regulations made by the RBI. Accordingly, reporting under clause (xvi)
(c) of paragraph 3 of the Order is not applicable.

d) In our opinion and according to the information and explanations given to us, the company is not part of a
group CIC. Accordingly reporting under clause (xvi) (d) of paragraph 3 of the Order is not applicable.

(xvii) In our opinion and according to the information and explanations given to us, the company has Not incurred any
cash losses during the immediately preceding financial year. Accordingly, reporting under clause (xvii) of paragraph 3
of the Order is not applicable.

(xviii)In our opinion and according to the information and explanations given to us, there is no resignation of statutory
auditors during the year. Accordingly, reporting under clause (xviii) of paragraph 3 of the Order is not applicable.

(xix) According to the information and explanations given to us and on the basis of financial ratios, ageing and expected
dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial
statements, our knowledge of the Board of directors and management plans and based on our examination of
the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any
material uncertainty exists as on the date of the audit report that company is not capable of meeting its liabilities
existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet
date. We, however, state that this is not an assurance as to the future viability of the company. We further state
that our reporting based on the facts up to the date of the audit report and we neither give any guarantee nor any
assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by
the company as and when they fall due.

(xx) In our opinion and according to the information and explanations given to us, the company has an unspent Corporate
Social Responsibility (CSR) amount of INR 16.05 Lakhs for FY 2022-23.The allocated Unspent amount of INR 16.05
Lakhs could not get spent during the F.Y. 2023-24 and since the project is an ongoing project, the same has been
transferred to Unspent CSR Account for F.Y. 2022-23 in April 2023 and will be spent by IFCI Social Foundation (ISF),
a registered trust, based on the achievement of milestones.

(xxi) The Company has no subsidiary hence preparation of consolidated financial statement is not applicable to the
company. Accordingly, reporting under clause (xxi) of paragraph 3 of the Order is not applicable.

For M D Gujrati & Co,

Chartered Accountants
FRN:-005301N

Sd/-
G L Agrawal
Partner
Place: New Delhi Membership No. 087454
Date: July 11, 2024 UDIN: 24087454BKALWA3929

49
 ANNEXURE “B” TO THE INDEPENDENT AUDITORS’ REPORT

Statements on the matters Specified in directions issued by the Comptroller and Auditor General of India
in accordance with Section 143(5) of the Companies Act, 2013

(Referred to in paragraph 2 of Report on Other Legal and Regulatory Requirements of our report of even
date of standalone financial statements)

S NO Directions Auditors’ Comment

1 Whether the company has system in place to process Yes No Adverse Comment
all the accounting transactions through IT system?
If yes, the implications of processing of accounting
transactions outside IT system on the integrity of the
accounts along with the financial implications, if any,
may be stated.
2 Whether there is any restructuring of an existing loan The Company did not have any borrowings during
or cases of waiver/write off of debts/loans/ interest etc. the year; hence there is no restructuring of loans
made by a lender to the company due to the company’s during the year under audit. There are no cases of
inability to repay the loan? If yes, the financial impact may waiver/write off debts/loans/interest etc. made by
be stated. Whether such cases are properly accounted a lender to the Company (i.e. IFCI Venture Capital
for? (In case, lender is a government company, then Funds Limited) due to the Company’s inability to
this direction is also applicable for statutory auditor of repay the loan.
Lender Company). Also, no restructuring of existing loans were made
by IFCI Venture Capital Funds Limited as in the
capacity of a Lender.
3 Whether funds (grants/subsidy etc.) received/ According to the information and explanations
receivable for specific schemes from Central /State provided to us by the Company: The Company has
Government or its agencies were properly accounted not received any fund(s) from Central/state Govt or
for/utilized as per its term and conditions? List the from its agencies during the year nor is any fund
cases of deviation receivable in respect of such schemes.
4 Investments: Yes, the titles of ownership of all investments are
Whether the titles of ownership in respect of CGS/ available in physical and/or de-mat form as applicable.
SGS/Bonds/ Debentures etc. are available in physical/ And the same agree with the respective amounts
demat form and these, in aggregate, agree with the shown in the Company’s books of accounts.
respective amounts shown in the Company’s books of
accounts? If not, details may be stated.
5 Loans: Yes, there is a system of periodical assessment
In respect of provisioning requirement of all of realizable value of securities available against
restructured, rescheduled, renegotiated loan-whether all such loans in place. Also, provision in the form
a system of periodical assessment of realizable value of of Expected Credit Loss as mandated by Indian
securities available against all such loans is in place and Accounting Standards has been created during the
adequate provision has been created during the year? year against these loans.
Any deficiencies in this regard, if any, may be suitably
commented upon along with financial impact

FFor M D Gujrati & Co,

Chartered Accountants
FRN:-005301N

Sd/-
G L Agrawal
Partner
Place: New Delhi Membership No. 087454
Date: July 11, 2024 UDIN: 24087454BKALWA3929

50
 ANNEXURE “C” TO THE INDEPENDENT AUDITORS’ REPORT

Report on the Internal Financial Controls Over Financial Reporting under Clause (f) of Sub-section 3 of
Section143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of IFCI VENTURE CAPITAL FUNDS LIMITED
as of March 31, 2024 in conjunction with our audit of the standalone financial statements of the Company for the year
ended on that date.

Management’s Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on
the internal control over financial reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India.These responsibilities include the design, implementation and maintenance
of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its
business, including adherence to respective company’s policies, the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable
financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company
based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing
prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls.

Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error.

We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our audit opinion
on the internal financial controls system over financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles.

A company’s internal financial control over financial reporting includes those policies and procedures that:

1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company;

51
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition
of the company’s assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of
collusion or improper management override of controls, material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future
periods are subject to the risk that the internal financial control over financial reporting may become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in
all material respects, an adequate internal financial controls system over financial reporting and such internal financial
controls over financial reporting were operating effectively as at March 31, 2024, based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in
the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India.

For M D Gujrati & Co,

Chartered Accountants
FRN:-005301N

Sd/-
G L Agrawal
Partner
Place: New Delhi Membership No. 087454
Date: July 11, 2024 UDIN: 24087454BKALWA3929

52
 IFCI VENTURE CAPITAL FUNDS LIMITED
CIN: U65993DL1988GOI030284
BALANCE SHEET AS AT 31st MARCH, 2024
(₹ in lakh)
PARTICULARS Note No. As at As at As at
31st March, 2024 31st March, 2023 1st April, 2022
(Restated)
ASSETS
(1) Financial Assets
(a) Cash and Cash Equivalents 2 846.55 461.19 11.44
(b) Bank Balances other than (a) above 3 5,812.09 428.61 442.59
(c) Receivables 4
(I) Trade Receivables 8.59 18.36 12.43
(II) Other Receivables 704.58 25.28 22.74
(d) Loans 5 3,980.61 7,641.07 8,506.02
(e) Investments 6 3,058.37 2,887.79 3,136.71
(f) Other Financial Assets 7 39.18 18.09 8.01
14,449.98 11,480.39 12,139.94
(2) Non Financial Assets
(a) Current tax assets (Net) 8 687.82 744.86 606.32
(b) Deferred tax assets (Net) 9 3,629.25 4,914.64 4,863.39
(c) Property, plant and equipment 10 9.10 12.12 17.54
(d) Other Intangible assets 11 0.00 0.00 0.00
(e) Other non-financial assets 12 3.15 3.61 2.31
4,329.33 5,675.24 5,489.57
Assets classified as held for sale 13 - 750.00 750.00
Total Assets 18,779.30 17,905.62 18,379.50
LIABILITIES AND EQUITY
LIABILITIES
(1) Financial Liabilities
(a) Payables 14
(I)Trade Payables
(i) Total outstanding dues of MSME - - -
(ii) Total outstanding dues of creditors other than MSME - - -
(II) Other Payables
(i) Total outstanding dues of MSME - - -
(ii) Total outstanding dues of creditors other than MSME 329.16 38.64 25.25
(b) Debt Securities 15 220.81 220.75 1,305.20
(c) Borrowings (Other than Debt securities) - - -
549.97 259.39 1,330.45
(2) Non Financial Liabilities
(a) Current Tax Liabilities (Net) - - -
(b) Provisions 16 277.35 298.06 358.54
(c ) Deferred tax liabilities (Net) - - -
(d) Other non-financial Liabilities 17 607.37 125.14 16.30
884.72 423.20 374.84
Total Liabilities 1,434.69 682.59 1,705.29
(3) Equity
(a) Equity share capital 18 6,037.10 6,037.10 6,037.10
(b) Other equity 19 11,307.51 11,185.93 10,637.11
Total Equity 17,344.61 17,223.03 16,674.21
Total Liabilities and Equity 18,779.30 17,905.62 18,379.50
Notes 1 to 51 form an integral part of financial statements
As per our report of even date attached
For M D Gujrati & Co.
Chartered Accountants
FRN: 005301N Sd/- Sd/-
Prasoon V. Anish Babu
Sd/- Director Managing Director
G L Agrawal (DIN:03599426) (DIN:02830575)
Partner
M. No. 087454 Sd/- Sd/-
Indu Gupta Rachit Tandon
Place : New Delhi Chief Financial Officer Company Secretary
Date: April 22, 2024

53
 IFCI VENTURE CAPITAL FUNDS LIMITED
CIN: U65993DL1988GOI030284
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2024
(₹ in lakh)
Particulars Note No. For the Year For the Year ended
ended 31st 31st March, 2023
March, 2024 (Restated)
Revenue From Operations
(i) Interest Income 20 1,513.56 1,422.51
(ii) Dividend Income 21 0.17 1.10
(iii) Fees Income 22 1,391.68 1,266.74
(iv) Net Gain on Fair Value Changes 23 2,225.03 -
A. Total Revenue from Operations 5,130.44 2,690.35
B. Other Income 24 4,726.48 1,406.40
C. Total Income (A+B) 9,856.92 4,096.75
Expenses
(i) Finance costs 25 22.74 98.93
(ii) Net loss on fair value changes 26 - 284.21
(iii) Employee Benefit expenses 27 679.08 547.80
(iv) Impairment on financial instruments 28 - -
(v) Depreciation, amortization and impairment 9,10 4.59 10.76
(vi) Other expenses 29 7,769.06 2,667.14
D. Total Expenses 8,475.47 3,608.83
E. Profit / (loss) before exceptional items and tax (C-D) 1,381.45 487.92
F. Exceptional Items -
G. Profit / (loss) before tax (E-F) 1,381.45 487.92
H. Tax Expense:
1. Current Tax - -
2. MAT Credit entitilement - -
3. Deferred Tax 1,278.29 (53.93)
I. Profit / (loss) for the period from continuing operations (After Tax) 103.16 541.85
(G-H)
J. Profit / (loss) for the period from discontinuing operations (After Tax) -
K. Profit/(loss) for the period (I+J) 103.16 541.85
L. Other comprehensive Income
(A) (i) Items that will not be reclassified to profit or (loss) 25.52 9.65
-Remeasurement of the net defined benefit Plans
(ii) Income tax relating to items that will not be reclassified to profit or loss 7.10 2.69
Subtotal (A) 18.42 6.97
(B) (i) Items that will be reclassified to profit or loss -
(ii) Income tax relating to items that will be reclassified to profit or loss -
Subtotal (B) -
Other Comprehensive Income (A+B) 18.42 6.97
M. Total Comprehensive Income for the period (K+L) (Comprising Profit 121.58 548.81
(Loss) and other Comprehensive Income for the period)
N. Earnings per equity share (for continuing operations)
Basic (Rs.) 0.20 0.91
Diluted (Rs.) 0.20 0.91
Notes 1 to 51 form an integral part of financial statements
As per our report of even date attached
For M D Gujrati & Co.
Chartered Accountants
FRN: 005301N Sd/- Sd/-
Prasoon V. Anish Babu
Sd/- Director Managing Director
G L Agrawal (DIN:03599426) (DIN:02830575)
Partner
M. No. 087454 Sd/- Sd/-
Indu Gupta Rachit Tandon
Place : New Delhi Chief Financial Officer Company Secretary
Date: April 22, 2024

54
 IFCI VENTURE CAPITAL FUNDS LIMITED
CIN: U65993DL1988GOI030284
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH 2024
(₹ in lakh)
Particulars Year ended Year ended 31st March, 2023
31st March, 2024 (Restated)
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit / (loss) before tax and extraordinary items 1,381.45 487.92
Adjustments for:
Interest Income - -
Interest on Loans (1,117.10) (1,196.21)
Interest income from investments (197.64) (178.43)
Interest on Deposits with Banks (198.81) (47.88)
Interest Expenses 22.74 98.93
Remeasurement of the net defined benefit plans 25.52 9.65
Provision no longer Required - (76.60)
Provision for employee benefits (net) (20.71) 16.12
Dividend Income (Rs.0.17 lakh C.Y. and Rs.1.10 Lakh in P.Y.)
Impairment on financial instruments (4,615.07) (1,310.06)
Depreciation and amortisation expenses 4.59 10.76
Net (gain) / loss on fair value changes - (301.70)
Cash Flow from Interest on Loan - -
Cash Flow from income from investment - -
Cash Flow from Interest on Deposit with Bannks 108.17 33.67
Cash Outflow towards Finance Cost (22.74) (98.93)
Movements in working capital:
(Increase)/Decrease in trade receivables (669.54) (8.47)
Increase/(Decrease) in trade payable 290.52 13.40
(Increase)/decrease in other financial assets & other assets (20.64) (11.38)
Increase/ (Decrease) in financial liabilities & other liabilities 482.23 108.84
Increase/(Decrease) in Debt Securitites 0.06 (1,084.45)
Increase/(Decrease) in Borrowings( other than Debt Securities) - -
Increase/(Decrease) in Provision
Long Term Loans Given (Net) 9,392.63 3,371.21
Change in Investments (Net) 777.06 729.05
Cash generated from operations 5,622.73 565.44
Income taxes paid (net of refunds) 57.04 (138.54)
Net cash generated by operating activities (A) 5,679.77 426.90
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment, intangible assets (1.56) (5.34)
(Increase)/Decrease in FDR (5,292.85) 28.19
Net cash used in investing activities (B) (5,294.41) 22.85
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash generated in financing activities ( C) - -
Net increase/ (decrease) in cash and cash equivalents (A+B+C) 385.36 449.75
Cash and cash equivalents at the beginning of the year 461.19 11.44
Cash and cash equivalents at the end of period 846.55 461.19
Foot Note : Cash Flow has been prepared using indirect method.
Particulars Year ended Year ended 31st March, 2023
31st March, 2024 (Restated)
Components of Cash and Cash Equivalents
Cash on hand 0.26 0.13
Balances with Banks in current accounts 310.79 8.79
Balances with Banks in deposit accounts 535.49 452.27
Cash and Cash Equivalents 846.55 461.19
Less – Secured Demand loans from banks (Cash credit)
Less – Bank overdraft
Cash and cash equivalents for statement of cash flows 846.55 461.19
Notes 1 to 51 form an integral part of financial statements
For M D Gujrati & Co.
Chartered Accountants
FRN: 005301N Sd/- Sd/-
Prasoon V. Anish Babu
Sd/- Director Managing Director
G L Agrawal (DIN:03599426) (DIN:02830575)
Partner
M. No. 087454 Sd/- Sd/-
Indu Gupta Rachit Tandon
Place : New Delhi Chief Financial Officer Company Secretary
Date: April 22, 2024

55
 IFCI VENTURE CAPITAL FUNDS LIMITED
CIN: U65993DL1988GOI030284
STATEMENT OF CHANGES IN EQUITY

A. Equity share capital

(1) Current reporting period

(₹ in lakh)
Balance at the Changes in Equity Restated balance at Changes in equity Balance at the end on
beginning of the Share Capital due to the beginning of the share capital during 31.03.2024
01/04/2023 prior period errors current reporting the period
period
6,037.10 - - - 6,037.10

(2) Previous reporting period

(₹ in lakh)
Balance at the Changes in Equity Restated balance at Changes in equity Balance at the end on
beginning of the Share Capital due to the beginning of the share capital during 31.03.2023
01/04/2022 prior period errors previous reporting the period
period
6,037.10 - - - 6,037.10

56
 B. Other Equity

(1) Current reporting period

(₹ in lakh)
Other
items of
Other
Reserves and Surplus Com-
prehens
Equity ive
Share Money
component Income
application received
of
money Other Reserve Exchange against Total
compound Debt in- Remea-
pending Equity differences share
financial Special struments Effective sure-
allotment Instruments Reval- on trans- warrants
instruments Reserve through portion ments
Capital Securities (Statutory Retained through uation lating the
under Other of Cash of the
Reserve Premium Reserve u/s Earnings Other Com- Sur- financial
Section Compre- Flow defined
45IC of RBI prehensive plus statements
36(1)(viii) hensive Hedges benefit
Act ) Income of a foreign
of the I.T Income plans
Act, 1961 operation
Balance at the - - - 4,747.90 5.20 3,173.89 3,258.07 - - - - - 0.87 - 11,185.93
beginning of the
01/04/2023
"Changes in - - - - - - - - - - - - - - -
accounting policy/
prior period
errors"
"Restated balance at - - - - - - - - - - - - - - -
the beginning of the
current reporting
period"
Total - - - - - - 103.16 - - - - - 18.42 - 121.58
Comprehensive
Income for the
current year
Dividends - - - - - - - - - - - - - - -
Transfer to retained - - - - - 24.32 (24.32) - - - - - - - -
earnings
Any other change - - - - - - - - - - - - - - -
(to be specified)
Balance at the end - - - 4,747.90 5.20 3,198.20 3,336.92 - - - - - 19.29 - 11,307.51
on 31.03.2024

57
58
(2) Previous reporting year
(₹ in lakh)
Other
items of
Other
Reserves and Surplus Com-
prehens
Equity ive
Share Money
component Income
application received
of
money Other Reserve Exchange against Total
compound Debt in- Remea-
pending Equity differences share
financial Special struments Effective sure-
allotment Instruments Reval- on trans- warrants
instruments Reserve through portion ments
Capital Securities (Statutory Retained through uation lating the
under Other of Cash of the
Reserve Premium Reserve u/s Earnings Other Com- Sur- financial
Section Compre- Flow defined
45IC of RBI prehensive plus statements
36(1)(viii) hensive Hedges benefit
Act ) Income of a foreign
of the I.T Income plans
Act, 1961 operation
Balance at the - - - 4,747.90 5.20 3,173.89 2,709.26 - - - - - 0.87 -
beginning of the 10,637.11
01/04/2022
"Changes in - - - - - - - - - - - - - - -
accounting policy/
prior period
errors"
"Restated balance at - - - - - - - - - - - - - - -
the beginning of the
previous reporting
period"
Total - - - - - - 541.85 - - - - - 6.97 - 548.81
Comprehensive
Income for the
previous year
Dividends - - - - - - - - - - - - - - -
Transfer to retained - - - - - 109.76 (109.76) - - - - - - - 0.00
earnings
Any other change - - - - - - - - - - - - - - -
(to be specified)
Balance at the end - - - 4,747.90 5.20 3,283.65 3,141.34 - - - - - 7.84 -
on 31.03.2023 11,185.93
Foot Note 1 : The reserve fund is created as per section 45IC of RBI Act, 1934
Foot Note 2 : Security Premium Account represents the amount received on equity share over & above its face value.

For M D Gujrati & Co.

Chartered Accountants
FRN: 005301N Sd/- Sd/-
Prasoon V. Anish Babu
Sd/- Director Managing Director
G L Agrawal (DIN:03599426) (DIN:02830575)
Partner
M. No. 087454 Sd/- Sd/-
Indu Gupta Rachit Tandon
Place : New Delhi Chief Financial Officer Company Secretary
Date: April 22, 2024
 SIGNIFICANT ACCOUNTING POLICIES

1. Background

IFCI Venture (‘the Company’), incorporated in New Delhi, India is a Non-Banking Finance Company in the public
sector set-up in 1975. IFCI Venture is presently managing one SEBI-registered Venture/ private equity (PE) funds/
Alternate Investment Funds (AIF) having two schemes. These funds provide long-term, committed share capital, to
help unquoted companies grow and succeed. IFCI Venture derives income from the fund management activities in
the form of management fee on the corpus/ outstanding amount of funds and by way of profit on these investments.
The Company provides financial support for the diversified growth of Industries across the spectrum in the form of
Corporate loans.

1.2 Basis of Preparation of Financial Statements

The financial statements for the year ended March 31, 2024 have been prepared by the Company in accordance with
Indian Accounting Standards (“Ind AS”) notified by the Ministry of Corporate Affairs, Government of India under the
Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment)
Rules, 2016, as amended from time to time, in this regard.

The accounting policies set out below have been applied consistently to the periods presented in these financial
statements.

For periods up to and including the year ended March 31, 2018, the Company presented its financial statements
on accrual basis under historical cost convention, and conform in all material aspects to the Generally Accepted
Accounting Principles in India (‘Indian GAAP’ or ‘previous GAAP’) which encompasses applicable accounting
standards relevant provisions of the Companies Act, 2013, the applicable guidelines issued by the Reserve Bank of
India (RBI) for Non-Banking Financial Companies, other statutory provisions and regulatory framework.

The financial statements for the year ended March 31, 2019 are the first financial statements of the Company prepared
under Ind AS.The accounting policies set out below have been applied consistently to the periods presented in these
financial statements.

The financial statements were authorized for issue by the Company’s Board of Directors on 22nd April 2024.

1.3 Functional and Presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company’s functional and presentation
currency. All amounts have been denominated in lakh and rounded off to the nearest 2 decimals, except when
otherwise indicated.

1.4 Basis of measurement

The financial statements have been prepared on a historical cost basis, except for the following material items
• Financial instruments at FVTPL that is measured at fair value
• Net defined benefit (asset)/ liability - fair value of plan assets less present value of defined benefit obligation

1.5 Use of judgements and estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets and liabilities (including contingent liabilities
and assets) as on the date of the financial statements and the reported income and expenses for the reporting
period. Management believes that the estimates used in the preparation of the financial statements are prudent and
reasonable. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized prospectively.

59
A. Judgements

Information about the judgements made in applying accounting policies that have the most significant effects on the
amounts recognized in the financial statements is included in the following notes:

• Impairment of financial assets: establishing the criteria for determining whether credit risk on the financial
assets has increased significantly since initial recognition, determining methodology for incorporating forward
looking information into measurement of expected credit loss (‘ECL’) and selection of models used to measure
ECL

• The company has an operating segment “Fund Management” having assets, liabilities, income, expenses and other
processes and personnel focused on managing venture capital funds. Given the exemption from application of
equity method to a ‘venture capital organization’ which may be a division or section or department or segment
within an entity, the company has regarded the “Fund Management” segment as a ‘venture capital organization’
and has availed the exemption from application of equity method to all its investments in associates by
measuring the investments in associates at fair value through profit or loss. As the company has opted to
measure those investments at fair value through profit or loss in separate financial statements and there being
no other investments in subsidiaries or joint ventures, no adjustments are required to prepare consolidated
financial statements from separate financial statements. These financial statements are, therefore, separate and
consolidated financial statements of the company and the group respectively.

B. Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material
adjustment in the year ended 31st March 2024 is included in the following notes:
• Impairment of financial instruments: determining inputs into the ECL measurement model, including
incorporation of forward looking information including key assumptions used in estimating recoverable cash
flows
• Determination of the fair value of financial instruments with significant unobservable inputs
• Measurement of defined benefit obligations: key actuarial assumptions
• Recognition of deferred tax assets: availability of future taxable profit against which carry-forward tax losses
can be used

1.6 Significant accounting policies

The Company has consistently applied the following accounting policies to all periods presented in these financial
statements.

A. Revenue recognition

(i) Interest income from financial assets is recognised on an accrual basis using Effective Interest Rate (‘EIR’)
method. The EIR is the rate that exactly discounts the estimated future cash receipts through the expected life
of the financial instrument or a shorter period, where appropriate to the net carrying amount of the financial
asset. The EIR is computed basis the expected cash flows by considering all the contractual terms of the
financial instrument. The calculation includes all fees, transaction costs, and all other premiums or discounts
paid or received between parties to the contract that are an integral part of the effective interest rate.

The interest revenue continues to be recognised at the original EIR applied on the gross carrying amount for
financial assets (when the asset is not credit impaired).

(ii) Fee income/expense that are integral to the effective interest rate on a financial asset or financial liability are
included in the effective interest rate. Income from Management fees is recognized overtime on the basis of
output method of time elapsed.

(iii) Recovery from bad debts written off is recognised as income on the basis of realisation from customers.

60
B. Financial instruments

I. Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition.

II. Classifications and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as subsequently measured at either amortised cost or fair
value through FVTPL, depending on the contractual cash flow characteristics of the financial assets and the
Company’s business model for managing the financial assets.

Business Model Assessment

The Company makes an objective assessment of the business model in which an asset is held at a portfolio level, because
this best reflects the way the business is managed and information is provided to management.The information considered
includes:

The stated policies and objectives for the portfolio and the operation of those policies in practice. In particular, whether
management’s strategy focuses on earning contractual interest revenue, maintaining a particular interest rate profile,
matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realising cash
flows through the sale of the assets;

The risks that affect the performance of the business model (and the financial assets held within that business model) and
how those risks are managed.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company
changes its business model for managing financial assets.

Assessment if contractual cash flows are solely payments of principal and interest

For the purpose of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition.
‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal
amount outstanding during a particular period of time and for other basic lending risks and costs, as well as profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company applies
judgement and considers all the contractual terms of the instrument. This includes assessing whether the financial asset
contains any contractual term that could change the timing or amount of contractual cash flows such that it would not
meet this condition. In making the said assessment, the Company considers prepayment and extension terms, features that
modify consideration of the time value of money (e.g. periodical reset of the interest rates).

Financial assets at Amortised Cost

A financial asset is measured at amortised cost only if both of the following conditions are met:
• It is held within a business model whose objective is to hold assets in order to collect contractual cash flows.
• The contractual terms of the financial asset represent contractual cash flows that are solely payments of principal
and interest.
Subsequently, these are measured at amortised cost using the effective interest rate (EIR) method less any impairment
losses.

61
Financial assets at Fair Value through Other Comprehensive Income (FVOCI)

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:
(a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Subsequently, these are measured at fair value and changes therein, are recognised in other comprehensive income.
Impairment losses on said financial assets are recognised in other comprehensive income and do not reduce the carrying
amount of the financial asset in the balance sheet.

Financial assets at Fair Value through Profit and Loss (FVTPL)

Any financial instrument, which does not meet the criteria for categorisation as at amortised cost or as FVOCI, is
classified as at FVTPL.

Subsequently, these are measured at fair value and changes therein, are recognised in profit and loss account.

Investment in Equity Instruments

All equity investments (other than in Subsidiaries and Associates) are subsequently measured at fair value through profit
or loss.

Equity instruments which are held for trading are classified as at FVTPL with all changes recognised in Statement of profit
and loss.

Financial liabilities and equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company is recognised at the proceeds received, net of directly attributable
transaction costs.

Financial liabilities

Initial recognition and measurement

All Financial Liabilities are recognized at fair value and in case of borrowings, net of directly attributable cost.

Subsequent measurement

a) Financial liabilities at amortised cost:

After initial recognition, financial liabilities other than those which are classified as FVTPL are subsequently measured
at amortized cost using the effective interest rate method.

Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral
part of the EIR. The amortization done using the EIR method is included as finance costs in the Statement of Profit
and Loss.

III. Measurement Basis

Amortised cost

Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition minus
the principal repayments, plus or minus the cumulative amortization using the EIR method of discount or premium

62
 on acquisition and fees or costs that are an integral part of the EIR and, for financial assets, adjusted for any loss
allowance.

Fair Valuation

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous
market to which the Company has access at that date. The fair value of a liability reflects it non-performance risk.

When Market price is available, the Company measures the fair value of an instrument using the quoted price in an
active market for that instrument. A market is regarded as active if transactions for the asset or liability take place
with sufficient frequency and volume to provide pricing information on an ongoing basis.

If there is no quoted price in an active market, then the Company uses valuation techniques that maximize the use
of relevant observable inputs and minimise the use of unobservable inputs. The valuation technique incorporates all
of the factors that market participants would take into account in pricing a transaction.

IV. De-recognition/Modification of financial assets and financial liabilities

Derecognition of financial assets and financial liabilities

Financial assets

The Company de-recognizes a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another
entity.

On de-recognition, any gains or losses on all debt instruments and equity instruments (measured at FVTPL) are
recognised in the Statement of Profit and Loss. Gains and losses in respect of debt instruments measured at FVOCI
and that are accumulated in OCI are reclassified to profit or loss on de-recognition. Gains or losses on equity
instruments measured at FVOCI that are recognised and accumulated in OCI are not reclassified to profit or loss
on de-recognition

Financial liabilities

The Company de-recognizes a financial liability when its contractual obligations are discharged or cancelled, or
expired.

Modifications of financial assets and financial liabilities

Financial assets

If the terms of a financial asset are modified, the Company evaluates whether the cash flows of the modified asset
are substantially different. If the cash flows are substantially different, then the modification results in derecognition
of the original financial asset and new financial asset is recognised at fair value.

If the cash flows of the modified asset are not substantially different, then the modification does not result in de-
recognition of the financial asset. In this case, the Company recalculates the gross carrying amount of the financial
asset and recognizes the amount arising from adjusting the gross carrying amount as a modification gain or loss in
profit or loss.Any costs or fees incurred adjust the carrying amount of the modified financial asset and are amortised
over the remaining term of the modified financial asset by recomputing the EIR rate on the instrument.

If such a modification is carried out because of financial difficulties of the borrower, then the gain or loss is presented
together with impairment losses. In other cases, it is presented as interest income.

Financial liabilities

The Company de-recognizes a financial liability when its terms are modified and the cash flows of the modified
liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at

63
 fair value. The difference between the carrying amount of the financial liability extinguished and the new financial
liability with modified terms is recognised in profit or loss.

If the modification is not accounted as derecognition, then the amortised cost of the liability is recalculated by
discounting the modified cash flows at the original EIR and the resulting gain or loss is recognized in profit or loss.
Any costs or fees incurred adjust the carrying amount of the modified financial liability and are amortised over the
remaining term of the modified financial liability by recomputing the EIR rate on the instrument.

V. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when the
Company has a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis, or realize the asset and settle the liability simultaneously.

VI. Impairment of Financial Assets

The Company recognizes impairment allowances for ECL on all the financial assets that are having contractual terms
giving rise to solely payments of principal and interest on the principal amount outstanding

ECL are probability weighted estimate of credit losses. They are measured as follows:
• financial assets that are not overdue for more than 30 days – as the present value of all cash shortfalls that are
possible within 12 months after the reporting date.
• financial assets with significant increase in credit risk that are overdue for more than 30 days but less than 90
days – as the present value of all cash shortfalls that result from all possible default events over the expected
life of the financial asset.
• financial assets that are overdue by 90 days and above – as the difference between the gross carrying amount
and the present value of estimated cash flows.
• undrawn loan commitments – as the present value of the difference between the contractual cash flows that
are due to the Company if the commitment is drawn down and the cash flows that the Company expects to
receive with respect to the financial assets, the Company measures the loss allowance at an amount equal to
lifetime expected credit losses. Loss allowances for financial assets measured at amortised cost are deducted
from the gross carrying amount of the assets. For financial assets at FVTOCI, the loss allowance is recognised
in OCI.

Write-off

Financial assets are written off (either partially or in full) when there is no reasonable expectation of recovering a
financial asset in its entirety or a portion thereof. This is generally the case when the Company determines that the
borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. This assessment is carried out at the individual asset level.

However, financial assets that are written off could still be subject to enforcement activities under the Group’s
recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in
profit or loss.

C. Leases

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a
lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.To assess whether a contract conveys the right to control the use of an identified asset, the Company
assesses whether
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the
lease and
(iii) the Company has the right to direct the use of the asset.

64
 At the date of commencement of the lease, the Company recognizes a right-of-use asset(“ROU”) and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short term and low value leases, the Company recognizes the
lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
The right-of use assets are initially recognized at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs
less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment
losses
Right-of-use assets are depreciated from the commencement date on a straight line basis over the shorter of the
lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does not generate cashflows that are largely independent of
those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU)
to which the asset belongs.
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The
lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will
exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the
Balance Sheet and lease payments have been classified as financing cash flows.
D. Employee benefits

i. Short term employee benefits

Short term employee benefits are expensed as the related service is provided.A liability is recognised for the amount
expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of
past service provided by the employee and the obligation can be estimated reliably.

ii. Post Employment benefits

a. Defined contribution plans

Provident Fund

The Company pays fixed contribution to Provident Fund at predetermined rates to EPFO.

b. Defined benefit plans

Gratuity

The Company has a defined benefit employee scheme in the form of Gratuity. The Trustees of the scheme have
entrusted the administration of related fund to LIC. Expense for the year is determined on the basis of actuarial
valuation of the Company’s year-end obligation in this regard and the value of year end assets of the scheme.
Contribution is deposited with LIC based on intimation received by the Company.

The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating
the amount of future benefit that employees have earned in return for their service in the current costs and the fair
value of any plan assets, if any is deducted.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using
the Projected Accrued Benefit Method (same as Projected Unit Credit Method), which recognizes each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation.

65
 The obligation is measured at the present value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit plan, are based on the market yields on
Government securities as at the balance sheet date.When the calculation results in a potential asset for the Company,
the recognised asset is limited to the present value of economic benefits available in the form of any future refunds
from the plan or reductions in future contribution to the plan.

The change in defined benefit plan liability is split into changes arising out of service, interest cost and re-measurements
and the change in defined benefit plan asset is split between interest income and re-measurements. Changes due to
service cost and net interest cost / income is recognized in the statement of profit and loss. Re-measurements of
net defined benefit liability / (asset) which comprise of the below are recognized in other comprehensive income:
• Actuarial gains and losses;
• The return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset)

iii. Other long term employee benefits

Benefits under the Company’s leave encashment and leave fare concession constitute other long term employee
benefits.The Company’s net obligation in respect of leave encashment is the amount of future benefit that employees
have present value, and the fair value of any related assets is deducted. The calculation is performed using the
projected unit credit method. Any actuarial gains or losses are recognized in profit or loss in the period in which
they arise. Provision for Leave fare concession is being made on actuarial valuation basis.

E. Income Taxes

Income-tax expense comprises of current & previous year tax adjustments (i.e. amount of tax for the period
determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of
temporary differences between tax base and book base). It is recognised in profit or loss except to the extent that
it relates to a business combination, or items recognised directly in equity or in OCI.

(i) Current tax & previous year tax adjustment

Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance
with the Income Tax Act, 1961. Current tax comprises the tax payable on the taxable income or loss for the year and
any adjustment to the tax payable in respect of previous years. It is measured using tax rates enacted or substantively
enacted at the reporting date. Minimum alternative tax (‘MAT’) under the provisions of the Income Tax Act, 1961 is
recognised as current tax in the statement of profit and loss.

Current tax assets and liabilities are offset only if, the Company:
a) has a legally enforceable right to set off the recognised amounts; and
b) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

(ii) Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets are reviewed at
each reporting date and based on management’s judgement, are reduced to the extent that it is no longer probable
that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable
profits improves.

Unrecognized deferred tax assets are reassessed at each reporting date and recognised to the extent that it has
become probable that future taxable profits will be available against which they can be used. Deferred tax is measured
at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted
or substantively enacted at the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

66
 Deferred tax assets and liabilities are offset only if the Company:
a) has a legally enforceable right to set off current tax assets against current tax liabilities; and
b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority.

The credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there
is convincing evidence that the Company will pay normal income tax during the period for which the MAT credit can
be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each
balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists.

F. Property, plant and equipment and Investment property

Recognition and measurement

Property, plant and equipment held for use or for administrative purposes, are stated in the balance sheet at cost less
accumulated depreciation and accumulated impairment losses.The cost includes non-refundable taxes, duties, freight
and other incidental expenses related to the acquisition and installation of the respective assets.

Depreciation

Depreciation is provided using the straight line method overuseful life estimated by the management. Depreciation
is calculated on pro-rata basis, including the month of addition and excluding the month of sale/disposal. Leasehold
improvements are amortised over the underlying lease term on a straight line basis. Residual value in respect of
Buildings and Vehicles is considered as 5% of the cost and in case of other assets ` ‘Nil’.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period,
with the effect of any changes in estimate accounted for on a prospective basis.

De-recognition

An item of property, plant and equipment or investment property is de-recognized upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
of an item of property, plant and equipment or investment property is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

Transition to Ind AS

The Company has elected to continue with the carrying value of all of its property, plant and equipment and
investment property recognised as of April 1, 2017 (the transition date) measured as per the previous GAAP and
use such carrying value as its deemed cost as of the transition date.

G. Intangible assets

Recognition and measurement

Intangible assets are recognized at cost of acquisition which includes all expenditure that can be directly attributed
or allocated on a reasonable and consistent basis, to create, produce or making the asset ready for its intended use.

Amortization

Amortization is recognized on a straight-line basis over their estimated useful lives. The estimated useful life and
amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate
being accounted for on a prospective basis.

De-recognition
An intangible asset is de-recognized on disposal, or when no future economic benefits are expected from use or

67
 disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the
net disposal proceeds and the carrying amount of the asset, is recognised in profit or loss when the asset is de-
recognized.

Transition to Ind AS
The Company has elected to continue with the carrying value of all of its intangible asset recognised as of April 1,
2017 (the transition date) measured as per the previous GAAP and use such carrying value as its deemed cost as of
the transition date.

H. Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amount of its non financial assets (other than assets held
for sale and deferred tax assets) to determine whether there is any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated.

I. Provisions and contingencies related to claims, litigation, etc.

Provisions are recognised when the Company has a legal and constructive obligation as a result of a past event, for
which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the
obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. The discount rate used to determine the present
value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to
the liability.

J. Contingent liabilities and contingent assets

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that
may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be
estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow
of resources is remote. Contingent assets are disclosed in the financial statements where an inflow of economic
benefits is probable.

K. Cash and cash equivalent

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as they are considered an integral part of the entity’s cash
management.

L. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM) of the company. The CODM is responsible for allocating resources and
assessing performance of the operating segments of the Company. The income /expenses directly attributable have
been allocated in respective operations and the un-allocable income/ expenses have been distributed in the ratio of
74:26 funds vs NBFC.

M. Earnings Per Share

Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders
of the company by the weighted average number of ordinary shares outstanding during the year. For the purpose of
calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.

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N. Assets held for sale

Assets are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather
than through continuing use. Such assets measured at the lower of their carrying amount and fair value less cost to
sell with gains and losses on remeasurement recognised in profit or loss. Once classified as held for sale, assets are
no longer amortised, depreciated or impaired.

O. Accounting policy on investment in associates

The company has investment in associates in which it has 20 per cent or more of shareholding and therefore has
been regarded as an associate. The company has measured the investments in associates at fair value through profit
or loss in its separate financial statements. If any investment is held for sale, then shall measure it at the lower of its
carrying amount and fair value less costs to sell.

P. Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively. At the date of transition to
Ind AS, an entity shall use reasonable and supportable information that is available without undue cost or effort to
determine the credit risk at the date that financial instruments were initially recognised (or for loan commitments
and financial guarantee contracts the date that the entity became a party to the irrevocable commitment) and
compare that to the credit risk at the date of transition to Ind AS.

The ECL working assumes that there is a significant increase in credit risk if the asset is overdue for 30 days or
more and therefore, ECL is measured on lifetime basis for such assets. For assets overdue for less than 30 days, it
is assumed that there is no significant increase in credit risk and therefore ECL for such assets is measured at the
probability of default occurring within next 12 months.

IMPAIRMENT OF FINANCIAL ASSETS (EXPECTED CREDIT LOSS MODEL)

The company determines significant increase in credit risk on a financial asset subject to impairment requirements
as per expected credit loss method if the cash flows from the financial instrument are overdue by 30 days or more.
The company considers default when the principal or interest cash flows on a financial asset is overdue by 90 days
or more. The company provides lifetime expected credit losses on financial assets that are overdue by 30 or more.
Financial assets that are overdue by 90 days or more are considered to be credit-impaired.
The company recognized interest on effective interest rate for all financial assets whether credit-impaired or nor
credit-impaired. For credit-impaired financial assets, interest was being recognized on the carrying amount remaining
after deducting loss allowance. The Company has changed its accounting policy whereby interest income on stage 3
assets (except on the assets which are standard under IRAC norms) shall not be recorded in the books of accounts
with effect from 1st April,2021.
However, the company has now changed its accounting policy with retrospective effect from April 01, 2021.
The company recognizes interest on an effective interest rate (EIR) for all financial assets whether credit-impaired
or nor credit-impaired. For credit-impaired financial assets, interest is recognized on the carrying amount remaining
after deducting loss allowance (Gross Assets – ECL). Further, write off of the increase in gross carrying amount of
Stage 3 assets to the extent of above interest income where there is no reasonable expectation of recovery.
For the purposes of calculating expected credit losses, the company groups the financial assets based on similarity
of type of financial asset such as corporate loan or personal loan, type of security such as loan against property and
loan against shares, credit rating as at the reporting date and schedule of payment contractually specified such as
monthly or quarterly. However, the credit losses are calculated on individual instrument level and not group level.
The credit loss calculated at individual instrument level is then adjusted for the probability that the party may default
with 12 months if the financial asset is overdue by less than 30 days and also by the risk weights based on gross
exposure that includes loan commitments and credit risk rating grades. The company considers GDP growth rate
and unemployment rate over a period of 10 years.
Empirically, there is a negative correlation between GDP growth rate and non-performing asset rate and a positive
correlation between unemployment rate and non-performing asset rate. Any negative effect of GDP growth rate and

69
 unemployment rate is adjusted in the risk weights applied to the credit loss calculated at instrument level.
The company calculates credit loss based on the regression analysis of contractual and actual cash flows till the end
of the reporting period. The calculation of credit loss looks into the future, that is after the end of the reporting
period by considering contractual and actual cash flows till the end of latest month for which receipt information is
available.
Actual cash flows beyond the month for which the receipt information is available is estimated based on regression
equation. Credit loss is the present value of cash shortfalls from the end of the reporting period to the end of the
contractual period. The adjusted credit loss is then compared with the present value of the collateral as on the
reporting date and estimate of legal costs to be incurred for realization of security to determine the expected
credit losses to recognised as loss allowance. The value of security shall be discounted value of Fair Market value or
Reserve Price whichever is lower where Reserve Price is available.
The present value of the collateral and legal costs is estimated beyond the contractual period if required. Any
increase / decrease in loss allowance for financial assets measured at amortised cost is recognised in profit or loss
for the period. Expected credit losses are considered based on the credit rating as at the end of the reporting period.
Therefore, any change in the credit rating for that instrument may result in change in the risk weights applied to the
credit loss calculated based on regression analysis of the contractual and actual cash flows over the period of the
contract.
1(A). Restatement of Financial Statements due to Changes in Accounting Policy
The company has modified its accounting policy regarding the recognition of stage 3 income, effective April 1, 2021. This
change alignswith the recommendations of the Comptroller and Auditor General of India (CAG), the Reserve Bank of
India (RBI), the Institute of Chartered Accountants of India (ICAI), and IFCI Ltd., the company’s holding company.
The Management has considered that the aforesaid changes are material and as a result the financials of 31.3.2023 are to
be restated. The relevant extracts of the Ind AS financial statements after the incorpoartion of the afforesaid accounting
policy is as given below.
(Amount in Lakh)
Extract from statement of Profit and Loss As at As at Adjustment
31/03/2023 31/03/2023
(Original) (Restated)
Interest Income (Refer note no. 20)
Interest on Loans 32.80 1,196.21 1,163.40
Other Expense (Refer Note No. 29)
Bad Debts Written off 1185.89 2,349.29 1,163.40
Other Expense (Refer Note No. 29)
Bad Debts Written off1185.89 2,349.29 1,163.40
Interest income for FY 2022-23 and 2021-22 has increased by INR 1,163.41 Lakhs and INR 1,266.84 Lakhs respectively.
Since there is no expectation of recovery, the same has been written off as bad debts respectively. Hence, there is no
impact on Net Profit/ Net loss of these years respectively. The opening Balance sheet as on 01.04.2022 has not changed
as there is no change in Retained earnings.
Movement in Loan due to change in accounting policy related to stage 3 income recognition
(Amount in Lakh)

Particulars As at 31st March, As at 1st April, 2022

2023 (Restated)
Gross Loan Book (Refer Note No. 5) 18,950.39 21,125.39
Add: Interest accrued on stage 3 1,163.41 1,266.84
Less: Writeoff of Interest accrued on stage 3 (1,163.41) (1,266.84)
Gross Loan Book after adjustement 18,950.39 21,125.39
The necessary disclosures concerning this policy change have been incorporated into the financial statements’ sections
on interest income, bad debt write-off, and loans.
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2. Cash and Cash Equivalents
(₹ in lakh)
Particulars As at 31st As at 31st March, 2023 As at
March, 2024 (Restated) 1st April, 2022
1 Cash in hand (including postage stamps) 0.26 0.13 0.06
2 Balances with Banks
-Bank Balance 310.79 8.79 11.38
-Bank Deposits with original maturity of less than three months 535.49 452.27 -
Total 846.55 461.19 11.44

3. Balances with Banks

(₹ in lakh)
Particulars As at 31st As at 31st March, As at 1st
March, 2024 2023 (Restated) April, 2022
1 Bank Balances 5,812.09 428.61 442.59
Total (I) 5,812.09 428.61 442.59

4. Receivables
(₹ in lakh)
Particulars As at 31st As at 31st March, As at 1st
March, 2024 2023 (Restated) April, 2022
(I) Trade Receivables -
Fees receivable - considered good 8.59 18.36 12.43
8.59 18.36 12.43
(II) Other receivables
Unsecured - considered good 694.15 14.81 12.94
Unsecured - doubtful - - -
Others 10.43 10.48 9.80
704.58 25.28 22.74
Less : Allowance for Impairment loss - - -
704.58 25.28 22.74
Total 713.18 43.64 35.17

5. Loans
(₹ in lakh)
As at 31st March, 2024
At Fair Value
Amortised Through Other Through Designated at
Particulars Subtotal Total
Cos Comprehensive profit or fair value through
Income loss profit or loss
(1) (2) (3) (4) (5=2+3+4) (6=1+5)
(A)
(i) Term Loans
-Loans and Advances (Considered good) - - - - - -
- Loan and Advances (Doubtful) 10,674.85 10,674.85
(ii) Others ( to be specified) -
Total (A) Gross 10,674.85 10,674.85
Less: Impairment loss allowance 6,694.25 - - - - 6,694.25
Total (A) Net 3,980.61 3,980.61
(B) -
(i) Secured by tangible assets and intangible assets 8,864.12 - - - - 8,864.12
(ii) Covered by Bank/Government Guarantee - - - - - -
(iii) Unsecured 1,810.73 - - - - 1,810.73
Total (B) Gross 10,674.85 - - - - 10,674.85
Less: Impairment loss allownace 6,694.25 - - - - 6,694.25

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 As at 31st March, 2024
At Fair Value
Amortised Through Other Through Designated at
Particulars Subtotal Total
Cos Comprehensive profit or fair value through
Income loss profit or loss
(1) (2) (3) (4) (5=2+3+4) (6=1+5)
Total (B) Net 3,980.61 - - - - 3,980.61
(C) Loans in India -
(i) Public Sector - - - - - -
(ii) Others 10,674.85 - - - - 10,674.85
Total (C) Gross 10,674.85 10,674.85
Less: Impairement loss allowance 6,694.25 - - - - 6,694.25
Total (C) Net 3,980.61 3,980.61

(₹ in lakh)
As at 31st March, 2023 (Restated)
At Fair Value
Amortised Through Other Through Designated at
Particulars Subtotal Total
Cos Comprehensive profit or fair value through
Income loss profit or loss
(1) (2) (3) (4) (5=2+3+4) (6=1+5)
(A)
(i) Term Loans
-Loans and Advances (Considered good) - - - - - -
- Loan and Advances (Doubtful) 18,950.39 18,950.39
(ii) Others ( to be specified) -
Total (A) Gross 18,950.39 18,950.39
Less:Impairment loss allowance 11,309.31 - - - - 11,309.31
Total (A) Net 7,641.07 7,641.07
(B) -
(i) Secured by tangible assets and intangible assets 14,180.61 - - - - 14,180.61
(ii) Covered by Bank/Government Guarantee - - - - - -
(iii) Unsecured 4,769.78 - - - - 4,769.78
Total (B) Gross 18,950.39 - - - - 18,950.39
Less: Impairment loss allownace 11,309.31 - - - - 11,309.31
Total (B) Net 7,641.07 - - - - 7,641.07
(C) Loans in India -
(i) Public Sector - - - - - -
(ii) Others 18,950.39 - - - - 18,950.39
Total (C) Gross 18,950.39 18,950.39
Less: Impairement loss allowance 11,309.31 - - - - 11,309.31
Total (C) Net 7,641.07 7,641.07
(₹ in lakh)
As at 1st April, 2022
At Fair Value
Amortised Through Other Through Designated at
Particulars Subtotal Total
Cos Comprehensive profit or fair value through
Income loss profit or loss
(1) (2) (3) (4) (5=2+3+4) (6=1+5)
(A)
(i) Term Loans
-Loans and Advances (Considered good) 580.16 - - - - 580.16
- Loan and Advances (Doubtful) 20,545.23 20,545.23
(ii) Others ( to be specified) -
Total (A) Gross 21,125.39 21,125.39
Less:Impairment loss allowance 12,619.37 - - - - 12,619.37
Total (A) Net 8,506.02 8,506.02
(B) -

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 As at 1st April, 2022
At Fair Value
Amortised Through Other Through Designated at
Particulars Subtotal Total
Cos Comprehensive profit or fair value through
Income loss profit or loss
(1) (2) (3) (4) (5=2+3+4) (6=1+5)
(i) Secured by tangible assets and intangible assets 15,411.23 - - - - 15,411.23
(ii) Covered by Bank/Government Guarantee - - - - - -
(iii) Unsecured 5,714.16 - - - - 5,714.16
Total (B) Gross 21,125.39 - - - - 21,125.39
Less: Impairment loss allownace 12,619.37 - - - - 12,619.37
Total (B) Net 8,506.02 - - - - 8,506.02
(C) Loans in India -
(i) Public Sector - - - - - -
(ii) Others 21,125.39 - - - - 21,125.39
Total (C) Gross 21,125.39 21,125.39
Less: Impairement loss allowance 12,619.37 - - - - 12,619.37
Total (C) Net 8,506.02 8,506.02

Foot Note

The Company has changed its accounting policy whereby interest income on stage 3 assets (except on the assets which
are standard under IRAC norms) shall be recorded in the books of accounts with effect from 1st April,2021. Accordingly,
Interest income for the financial year 2022-23 and 2021-22 will be reinstated and increased by Rs.1163.41 lakh and
Rs.1266.84 lakh respectively. Since there is no reasonable expectation of recovery, company has decided to be written off
this amount in respective years. Accordingly, carrying amount of loans receivable is same as reported in previous financial
statement.

Movement in Loan due to change in accounting policy related to stage 3 income recognition

As at 31st March,
Particulars As at 1st April, 2022
2023 (Restated)
Gross Loan Book 18,950.39 21,125.39
Add: Interest accrued on stage 3 1,163.41 1,266.84
Less: Writeoff of Interest accrued on stage 3 (1,163.41) (1,266.84)
Gross Loan Book after adjustement 18,950.39 21,125.39

In the current Financial Year 2023-24 the company has accrued interest aggregating to Rs.1117.10 lakh out of which it has
written off Rs.1104.29 lakh based on recovery estimates.

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6. Investments
(₹ in lakh)
As at 31st March, 2024
At Fair Value
Designated
Amortised Through Other Through at fair value
Particulars Subtotal Others Total
Cos Comprehensive profit or through
Income loss profit or
loss
(1) (2) (3) (4) (5=2+3+4) (6) (7=1+5+6)
Government Securities - - - - - - -
Other approved securities - - - - - - -
Debt securities
-Inter Group Balances
-Bonds - Taxable bonds of IFCI Ltd of Rs.1000 each 2,274.29 - - - - - 2,274.29
Equity instruments
-Biotech Consortium Ltd. - - - - - - -
-Jangipur Bengal Mega Food Park Ltd - - 47.88 - 47.88 - 47.88
-Him Teknoforge Ltd 1.22 1.22 1.22
- Deltronix India Ltd - - -
- -
CCD/OCD/OCPS instruments - -
- Deltronix India Ltd (OCPS) - -
- -
Subsidiaries - - - - - -
Associates - - - - - -
-Units of Venture Funds (Rs.10 each fully paid up) - -
'- Venture Capital fund for Backward Classes - - 557.93 - 557.93 557.93
'- Sage Venture fund - - 52.50 - 52.50 52.50
'- Venture Capital fund for Scheduled Tribes - - 52.50 - 52.50 52.50
Joint Ventures - - - - - -
Others (Specify) - - - - - -
Mutual Funds - -
Investment in Liquid Funds - - 72.05 - 72.05 72.05
Total Gross (A) 2,274.29 - 784.08 - 784.08 - 3,058.37
(i) Overseas Investments - - - - - - -
(ii) Investments in India 2,274.29 - 784.08 - 784.08 - 3,058.37
Total (B) 2,274.29 - 784.08 - 784.08 - 3,058.37
Less: Allowance for impairment loss (C) - - - - - - -
Total Net D= (A)- (C ) 2,274.29 - 784.08 - 784.08 - 3,058.37

74
 (₹ in lakh)
As at 31st March, 2023 (Restated)
At Fair Value
Designated
Amortised Through Other Through at fair value
Particulars Subtotal Others Total
Cos Comprehensive profit or through
Income loss profit or
loss
(1) (2) (3) (4) (5=2+3+4) (6) (7=1+5+6)
Government Securities - - - - -
Other approved securities - - - - -
Debt securities
-Inter Group Balances
-Bonds - Taxable IFCI Ltd of Rs. 1000 each 2,076.65 - - - - 2,076.65
Equity instruments -
-Biotech Consortium Ltd. - - - - - -
-Jangipur Bengal Mega Food Park Ltd - - 47.88 - 47.88 - 47.88
-Him Teknoforge Ltd 122.60 122.60 122.60
- Deltronix India Ltd - - -
- -
CCD/OCD/OCPS instruments - -
- Deltronix India Ltd (OCPS) - -

Subsidiaries - - - - - -
Associates - - - - - -
-Units of Venture Funds (Rs.10 each fully paid up) -
'- Venture Capital fund for backward classes - - 544.97 - 544.97 - 544.97
'- Sage Venture fund - - 52.50 - 52.50 - 52.50
Joint Ventures - - - - - -
Others (Specify) - - - - - -
Mutual Funds -
Investment in Liquid Funds - - 43.19 - 43.19 - 43.19
Total Gross (A) 2,076.65 - 811.14 - 811.14 - 2,887.79
(i) Overseas Investments - - - - - - -
(ii) Investments in India 2,076.65 - 811.14 - 811.14 - 2,887.79
Total (B) 2,076.65 - 811.14 - 811.14 - 2,887.79
Less: Allowance for impairment loss (C) - - - - - - -
Total Net D= (A)- (C ) 2,076.65 - 811.14 - 811.14 - 2,887.79

(₹ in lakh)
As at 1st April, 2022
At Fair Value
Designated
Amortised Through Other Through at fair value
Particulars Subtotal Others Total
Cos Comprehensive profit or through
Income loss profit or
loss
(1) (2) (3) (4) (5=2+3+4) (6) (7=1+5+6)
Government Securities - - - - -
Other approved securities - - - - -
Debt securities
-Inter Group Balances
-Bonds - Taxable IFCI Ltd of Rs. 1000 each 1,898.22 - - - - 1,898.22
Equity instruments -
-Biotech Consortium Ltd. - - - - - -
-Jangipur Bengal Mega Food Park Ltd - - 324.66 - 324.66 - 324.66
-Him Teknoforge Ltd 378.96 378.96 378.96
- Deltronix India Ltd - - -

75
 As at 1st April, 2022
At Fair Value
Designated
Amortised Through Other Through at fair value
Particulars Subtotal Others Total
Cos Comprehensive profit or through
Income loss profit or
loss
(1) (2) (3) (4) (5=2+3+4) (6) (7=1+5+6)
CCD/OCD/OCPS instruments - -
- Deltronix India Ltd (OCPS) - -

Subsidiaries - - - - - -
Associates - - - - - -
-Units of Venture Funds (Rs.10 each fully paid up) -
'- Venture Capital fund for backward classes - - 534.87 - 534.87 - 534.87
Joint Ventures - - - - - -
Others (Specify) - - - - - -
Mutual Funds -
Investment in Liquid Funds - - - - - - -
Total Gross (A) 1,898.22 - 1,238.49 - 1,238.49 - 3,136.71
(i) Overseas Investments - - - - - - -
(ii) Investments in India 1,898.22 - 1,238.49 - 1,238.49 - 3,136.71
Total (B) 1,898.22 - 1,238.49 - 1,238.49 - 3,136.71
Less: Allowance for impairment loss (C) - - - - - - -
Total Net D= (A)- (C ) 1,898.22 - 1,238.49 - 1,238.49 - 3,136.71

Foot Note

1. The values shown in the notes are as per Ind AS and stands at Fair value/ Cost of acquisition and do not reflect the
outstanding dues payable by the Investee Companies.

7. Other Financial Assets

(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Loan to others
-Loans to Staff 29.61 14.53 7.15
-Others (Unsecured and considered good) 1.06 0.86 0.86
GST Credit 8.51 2.70 -
Total 39.18 18.09 8.01

8. Current Tax Assets (Net)

(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Current tax assets (Net) 687.82 744.86 606.32
Total 687.82 744.86 606.32

76
9. Deferred Tax Assets (Net)
(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Deferred tax assets (Net) 3,629.25 4,914.64 4,863.39
Total 3,629.25 4,914.64 4,863.39

10. Property, plant and equipment

(₹ in lakh)
Equipment
Computers Office Furniture Assets
Particulars Property / Furniture Total
& Servers Equipments & Fixtures on lease
and Fittings
At cost or fair value at the beginning of the 30.96 - 6.65 - - - 37.61
year as at 01/04/2022
Additions 5.28 0.07 0.00 - - - 5.35
Acquisitions - - - - - - -
Revaluation adjustment, if any - - - - - - -
Disposals 0.26 - - - - - 0.26
Reclassification from/to held for sale - - - - - - -
Other adjustments (please specify) - - - - - - -
At cost or fair value at the end of the year at 35.97 0.07 6.65 - - - 42.69
31/03/2023
Additions 0.70 - 0.86 - - - 1.57
Acquisitions - - - - - - -
Revaluation adjustment, if any - - - - - - -
Disposals - - - - - - -
Reclassification from/to held for sale - - - - - - -
Other adjustments (please specify) - - - - - - -
At cost or fair value at the Year ended at 36.68 0.07 7.52 - - - 44.26
31/03/2024

(₹ in lakh)
Accumulated
Accumulated Accumulated Accumulated Accumulated
Accumulated Dep. On
Dep. On Dep. On Dep. On Dep. On
Particulars Dep. On Equipment / Total
Computers & Office Furniture & Assets on
Property* Furniture and
Servers Equipments Fixtures lease
Fittings
Accumulated depreciation 17.79 - 2.28 - - - 20.07
and impairment as at the
beginning of the year as at
01/04/2022
Depreciation for the period 10.14 0.00 0.68 - - - 10.81
Disposals 0.26 - - - - - 0.26
Impairment/(reversal) of - - - - - - -
impairment
Reclassification from/to held - - - - - - -
for sale
Other adjustments (prior 0.06 - - - - - 0.06
period adjustment)
Accumulated depreciation 27.61 0.00 2.96 - - - 30.57
and impairment as at the
end of the year 31/03/2023
Depreciation for the period 3.84 0.01 0.74 - - - 4.59
Disposals - - - - - - -
Impairment/(reversal) of - - - - - - -
impairment
Reclassification from/to held - - - - - - -
for sale
Other adjustments (prior - - - - - - -
period adjustment)
Accumulated depreciation 31.45 0.02 3.70 - - - 35.16
and impairment as at the
Year ended 31/03/2024

77
 Accumulated
Accumulated Accumulated Accumulated Accumulated
Accumulated Dep. On
Dep. On Dep. On Dep. On Dep. On
Particulars Dep. On Equipment / Total
Computers & Office Furniture & Assets on
Property* Furniture and
Servers Equipments Fixtures lease
Fittings
Net carrying amount at the 13.17 - 4.37 - - - 17.54
beginning of the year as at
01/04/2022
Net carrying amount as at 8.37 0.06 3.69 - - - 12.12
the end of the year as at
31/03/2023
Net carrying amount as at 5.23 0.05 3.82 - - - 9.10
the end of the quarter as at
31/03/2024

11. Other Intangible assets

(₹ in lakh)
Particulars Computer Software Total
At cost or fair value at the beginning of the year as at 01/04/2022 0.21 0.21
Additions - -
Acquisitions - -
Revaluation adjustment, if any - -
Disposals - -
At cost or fair value at the Year ended at 31/12/2022 0.21 0.21
Additions - -
Acquisitions - -
Revaluation adjustment, if any - -
Disposals - -
At cost or fair value at the end of the year at 31/03/2023 0.21 0.21
Additions - -
Acquisitions - -
Revaluation adjustment, if any - -
Disposals - -
At cost or fair value at the Year ended at 31/03/2024 0.21 0.21
(₹ in lakh)
Accumulated
Dep. On
Particulars Computer Total
Software
Accumulated depreciation and impairment as at the beginning of the year
0.21 0.21
as at 01/04/2022
Depreciation for the period - -
Disposals - -
Impairment/(reversal) of impairment - -
Accumulated depreciation and impairment as at the Year ended 31/12/2022 0.21 0.21
Depreciation for the period - -
Disposals - -
Impairment/(reversal) of impairment - -
Accumulated depreciation and impairment as at the end of the year
0.21 0.21
31/03/2023
Depreciation for the period - -
Disposals - -
Impairment/(reversal) of impairment - -
Accumulated depreciation and impairment as at the Year ended 31/03/2024 0.21 0.21
Net carrying amount at the beginning of the year as at 01/04/2022 - -
Net carrying amount as at the end of the year as at 31/03/2023 - -
Net carrying amount as at the end of the quarter as at 31/03/2024 - -

78
12. Other Non-Financial Assets
(₹ in lakh)
As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
(a) Pre-paid Expenses 3.15 3.61 2.31
Total 3.15 3.61 2.31

13. Assets classified as held for sale

(₹ in lakh)
As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Investment in Associates - 750.00 750.00
Total - 750.00 750.00

14. Assets classified as held for sale

(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
(1)Trade Payables
(i) total outstanding dues of micro enterprises and
- - -
small enterprises
(ii) total outstanding dues of creditors other than
- - -
micro enterprises and small enterprises
(2) Other Payables
(i) total outstanding dues of micro enterprises and
- - -
small enterprises
(ii) total outstanding dues of creditors other than
329.16 38.64 25.25
micro enterprises and small enterprises
Total 329.16 38.64 25.25

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

15. Debt Securities

(₹ in lakh)

As at 31st March, 2024

Particulars At At Fair Value Designated at Fair
Amortised through profit Value through Total
Cost or loss Profit or Loss
1) 2) 3) (4=1+2+3)
Bonds
480 Bonds of Rs. 1,00,000 each unsecured - - - -
21 Bonds of Rs. 10,00,000 each secured 220.81 - - 220.81
Total (A) 220.81 - - 220.81
Debt securities in India 220.81 - - 220.81
Debt securities outside India - - - -
Total (B) 220.81 - - 220.81

79
 (₹ in lakh)

As at 31st March, 2023 (Restated)

Particulars At At Fair Value Designated at Fair
Amortised through profit Value through Total
Cost or loss Profit or Loss
1) 2) 3) (4=1+2+3)
Bonds
480 Bonds of Rs. 1,00,000 each unsecured - - - -
21 Bonds of Rs. 10,00,000 each secured 220.75 - - 220.75
Total (A) 220.75 - - 220.75
Debt securities in India 220.75 - - 220.75
Debt securities outside India - - - -
Total (B) 220.75 - - 220.75

(₹ in lakh)

As at 1st April, 2022

Particulars At At Fair Value Designated at Fair
Amortised through profit Value through Total
Cost or loss Profit or Loss
1) 2) 3) (4=1+2+3)
Bonds
596 Bonds of Rs. 1,00,000 each unsecured 598.85 - - 598.85
480 Bonds of Rs. 1,00,000 each unsecured 485.61 - - 485.61
21 Bonds of Rs. 10,00,000 each secured 220.75 - - 220.75
Total (A) 1,305.20 - - 1,305.20
Debt securities in India 1,305.20 - - 1,305.20
Debt securities outside India - - - -
Total (B) 1,305.20 - - 1,305.20

Foot-notes

1 Issuer IFCI Venture Capital Funds Ltd.

Issue size Up to Rs. 15.10 Crores including green shoe option of Rs. 0.10 Crores
Face Value Rs. 1,00,000.00 ( Rupees One Lac ) per bond
Tenure 10 Years
Put Call At par at the end of 5th year from the date of allotment
Redemption At par at the end of 10th year from deemed date of allotment i.e 18th February, 2023
Coupon Rate 10.15% p.a. annual
Interest Payment Interest shall be made annually on18th February

2 Issuer IFCI Venture Capital Funds Ltd.

Issue size Rs. 20 Crores
Face Value Rs. 1,000,000.00 ( Rupees Ten Lac ) per bond
Tenure &
At end of 10 Years from date of allotment i.e. 10th October, 2024
Redemption
Coupon Rate 10.80% p.a. annual
Security Pari-pasu charge on Book Debts
Interest Payment Interest shall be made annually on10th October

80
 16. Provisions
(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Provision for Standard Assets - - -
Provision for Employee benefits 277.35 298.06 281.94
General Provision (COVID-19) 76.60
Total 277.35 298.06 358.54

17. Other Non Financial Liabilities

(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Other Payables
-Tax and other deduction/collection payable 14.47 8.54 10.33
'-other payables 5.97
Advance Received from Parties 592.89 116.60 -
Total 607.37 125.14 16.30

18. Equity Share Capital

(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Note: 1 SHARE CAPITAL
AUTHORISED:
Equity Shares of Rs.10/- each 15,000.00 15,000.00 15,000.00
Total 15,000.00 15,000.00 15,000.00
ISSUED, SBSCRIBED & PAID UP:
Equity Shares of Rs.10/- each fully paid up. 6,037.10 6,037.10 6,037.10
Total 6,037.10 6,037.10 6,037.10

Foot Notes:

i. Reconciliation of the number of shares outstanding.

(₹ in lakh)
As at 31st March, 2023
As at 31st March, 2024 As at 1st April, 2022
Particulars (Restated)
Number Amount Number Amount Number Amount
Number of equity shares at the 60,371,008 6,037.10 60,371,008 6,037.10 60,371,008 6,037.10
beginning of the Year
Equity shares issued during the year - - - - - -
Number of equity shares at the 60,371,008 6,037.10 60,371,008 6,037.10 60,371,008 6,037.10
end of the Year

81
ii. Shares held by holding/Ultimate holding company and/or their subsidairies/associates.

As at 31st March, 2023

As at 31st March, 2024 As at 1st April, 2022
Name of the Shareholder (Restated)
No. of shares % of No. of shares % of No. of % of
held Holding held Holding shares held Holding
Equity Shares of Rs.10/- each Fully
Paid
IFCI Limited ( Holding Company) 59,521,008 98.59 59,521,008 98.59 59,521,008 98.59
Total 59,521,008 98.59 59,521,008 98.59 59,521,008 98.59

Foot Note:
Fully paid equity shares, which have a par value of Rs.10, carry one vote per share and carry a right to dividends.

iii. Details of shareholders holding more than 5% shares in the company

As at 31st March, 2023

As at 31st March, 2024 As at 1st April, 2022
Name of the Shareholder (Restated)
No. of shares % of No. of shares % of No. of % of
held Holding held Holding shares held Holding
Equity Shares of Rs.10/- each Fully
Paid
IFCI Limited 59,521,008 98.59 59,521,008 98.59 59,521,008 98.59
Total 59,521,008 98.59 59,521,008 98.59 59,521,008 98.59

iv. Refer note 1 and 46 for Objectives, policies and processes for managing capital.
(₹ in lakh)

As at As at 31st March, As at
Particulars
31st March, 2024 2023 (Restated) 1st April, 2022
Retained Earnings 3,336.92 3,141.34 2,709.25
Securities Premium Account 4,747.90 4,747.90 4,747.90
Statutory Reserve (Reserve u/s 45IC of RBI Act, 1934) 3,198.20 3,283.65 3,173.89
Special Reserve under Section 36(1)(viii) of the I.T Act,
5.20 5.20 5.20
1961
OCI- Resmeasurment of defined benefit plan 19.29 7.84 0.87
Total 11,307.51 11,185.93 10,637.11

82
 19. Other Equity
(1) Current reporting period
(₹ in lakh)
Other
items of
Other
Reserves and Surplus Com-
prehens
Equity ive
Share Money
component Income
application received
of
money Other Reserve Exchange against Total
compound Debt in- Remea-
pending Equity differences share
financial Special struments Effective sure-
allotment Instruments Reval- on trans- warrants
instruments Reserve through portion ments
Capital Securities (Statutory Retained through uation lating the
under Other of Cash of the
Reserve Premium Reserve u/s Earnings Other Com- Sur- financial
Section Compre- Flow defined
45IC of RBI prehensive plus statements
36(1)(viii) hensive Hedges benefit
Act ) Income of a foreign
of the I.T Income plans
Act, 1961 operation
Balance at the - - - 4,747.90 5.20 3,173.89 3,258.07 - - - - - 0.87 - 11,185.93
beginning of the
01/04/2023
Changes in accounting - - - - - - - - - - - - - - -
policy/prior period
errors
Restated balance at - - - - - - - - - - - - - - -
the beginning of the
current reporting
period
Total Comprehensive - - - - - - 103.16 - - - - - 18.42 - 121.58
Income for the current
year
Dividends - - - - - - - - - - - - - - -
Transfer to retained - - - - - 24.32 (24.32) - - - - - - - -
earnings
Any other change (to - - - - - - - - - - - - - - -
be specified)
Balance at the end - - - 4,747.90 5.20 3,198.20 3,336.92 - - - - - 19.29 - 11,307.51
on 31.03.2024

83
84
(2) Previous reporting year
(₹ in lakh)
Other
items of
Other
Reserves and Surplus Com-
prehens
Equity ive
Share Money
component Income
application received
of
money Other Reserve Exchange against Total
compound Debt in- Remea-
pending Equity differences share
financial Special struments Effective sure-
allotment Instruments Reval- on trans- warrants
instruments Reserve through portion ments
Capital Securities (Statutory Retained through uation lating the
under Other of Cash of the
Reserve Premium Reserve u/s Earnings Other Com- Sur- financial
Section Compre- Flow defined
45IC of RBI prehensive plus statements
36(1)(viii) hensive Hedges benefit
Act ) Income of a foreign
of the I.T Income plans
Act, 1961 operation
Balance at the - - - 4,747.90 5.20 3,173.89 2,709.26 - - - - - 0.87 - 10,637.11
beginning of the
01/04/2022
Changes in accounting - - - - - - - - - - - - - - -
policy/prior period
errors
Restated balance at - - - - - - - - - - - - - - -
the beginning of the
previous reporting
period
Total Comprehensive - - - - - - 541.85 - - - - - 6.97 - 548.81
Income for the
previous year
Dividends - - - - - - - - - - - - - - -
Transfer to retained - - - - - 109.76 (109.76) - - - - - - - 0.00
earnings
Any other change (to - - - - - - - - - - - - - - -
be specified)
Balance at the end - - - 4,747.90 5.20 3,283.65 3,141.34 - - - - - 7.84 - 11,185.93
on 31.03.2023

Foot Note 1 : The reserve fund is created as per section 45IC of RBI Act, 1934
Foot Note 2 : Security Premium Account represents the amount received on equity share over & above its face value.
20. Interest income
(₹ in lakh)
For the Year ended 31st March, 2024
On Financial On Financial On Financial
Particulars Assets measured Assets measured Assets classified at
at fair value at Amortised fair value through
through OCI Cost profit or loss
Interest on Loans - 1,117.10 -
Interest income from investments - 197.64 -
Interest on Deposits with Banks - 198.81
Total - 1,513.56

(₹ in lakh)
For the Year ended 31st March, 2023 (Restated)
On Financial On Financial On Financial
Particulars Assets measured Assets measured Assets classified at
at fair value at Amortised fair value through
through OCI Cost profit or loss
Interest on Loans - 1,196.21 -
Interest income from investments - 178.43 -
Interest on Deposits with Banks - 47.88 -
Total - 1,422.51 -

The Company has changed its accounting policy whereby interest income on stage 3 assets (except on the assets which
are standard under IRAC norms) shall be recorded in the books of accounts with effect from 1st April,2021. Accordingly,
Interest income for the financial year 2022-23 and 2021-22 will be reinstated and increased by Rs.1163.41 lakh and
Rs.1266.84 lakh respectively.

21. Dividend Income

(₹ in lakh)
For the Year ended
For the Year ended
Particulars 31st March, 2023
31st March, 2024
(Restated)
Dividend income 0.17 1.10
Total 0.17 1.10

22. Fee Income

(₹ in lakh)
For the Year ended
For the Year ended
Particulars 31st March, 2023
31st March, 2024
(Restated)
Management fee 1,391.68 1,266.74
Total 1,391.68 1,266.74

85
23. Net Gain on fair value changes
(₹ in lakh)
For the Year ended
For the Year ended
Particulars 31st March, 2023
31st March, 2024
(Restated)
A. Net Gain on financial instruments at fair value through
profit and loss account :-
a) On trading portfolio
- Investments 2,225.03 -
- Derivatives - -
- Others - -
b) On financial instruments designated at fair value through profit
- -
and loss account
B. Others - -
Total 2,225.03 -
Fair Value changes
-Realised 2,223.04 -
-Unrealised 2.00 -
Total 2,225.03 -

24. Other income

(₹ in lakh)
For the Year ended
For the Year ended
Particulars 31st March, 2023
31st March, 2024
(Restated)
Bad Debt Recovered - -
Provision no longer required - 76.60
Reversal of Expected Credit Loss 4,615.07 1,310.06
Other incomes 111.41 19.74
Total 4,726.48 1,406.40

25. Finance costs

(₹ in lakh)
For the Year ended 31st March, 2024
On Financial liabilities On Financial
Particulars
measured at fair value liabilities measured
through profit or loss at Amortised Cost
Interest on Bonds and borrowings - 22.74
Other interest expense - -
Total - 22.74

(₹ in lakh)
For the Year ended 31st March, 2023
On Financial liabilities On Financial
Particulars
measured at fair value liabilities measured
through profit or loss at Amortised Cost
Interest on Bonds and borrowings - 98.93
Other interest expense - -
Total - 98.93

86
26. Net loss on fair value changes
(₹ in lakh)
For the Year ended
For the Year ended
Particulars 31st March, 2023
31st March, 2024
(Restated)
A. Net loss on financial instruments at fair value through profit
and loss account :-
a) On trading portfolio
- Investments - 284.21
- Derivatives - -
- Others - -
b) On financial instruments designated at fair value through profit
- -
and loss account
B. Others - -
Total - 284.21
Fair Value changes
-Realised - (17.49)
-Unrealised - 301.70
Total - 284.21

27. Employee Benefit expenses

(₹ in lakh)
For the Year ended
For the Year ended
Particulars 31st March, 2023
31st March, 2024
(Restated)
Salaries and wages including bonus 633.05 502.52
Contribution to provident and others fund 39.11 32.73
Staff welfare expenses 6.92 12.55
Total 679.08 547.80

28. Impairment on financial instruments

(₹ in lakh)
For the Year ended 31st March, 2024
On Financial instruments On Financial
Particulars
measured at fair value instruments measured
through OCI at Amortised Cost
Loans and Advances - -
Other Receivable - -
Total - -

(₹ in lakh)
For the Year ended 31st March, 2023
On Financial instruments On Financial
Particulars
measured at fair value instruments measured
through OCI at Amortised Cost
Loans and Advances - -
Other Receivable - -
Total - -

87
29. Other expenses
(₹ in lakh)
For the Year ended
For the Year ended
Particulars 31st March, 2023
31st March, 2024
(Restated)
Rent, taxes and energy costs 178.52 179.92
Repairs and maintenance 51.09 42.77
Printing & Stationery 3.07 3.98
CSR Expenses 12.86 16.05
Postage & Telephone 1.98 2.27
Advertisement and publicity 2.25 1.45
Travelling & Conveyance 3.69 3.26
Director’s fees, allowances and expenses 14.29 13.68
Auditor’s fees and expenses* 7.33 7.17
Legal and Professional charges 58.97 41.54
Insurance - 0.29
Bad Debts Written Off 7,427.86 2,349.29
Other expenditures 7.15 5.46
Total 7,769.06 2,667.14
* Refer note 34 for details on payment to auditors.

Bad Debts written off –

The Company has changed its accounting policy whereby interest income on stage 3 assets (except on the assets which
are standard under IRAC norms) shall be recorded in the books of accounts with effect from 1st April,2021. Accordingly,
Interest income for the financial year 2022-23 and 2021-22 will be reinstated and increased by Rs.1163.41 lakh and
Rs.1266.84 lakh respectively. Since there is no reasonable expectation of recovery, company has decided to write off this
amount in respective years. Accordingly, Bad debts written off these years shall increase by respective amounts in each
financial year.

Note 30. DISCLOSURES IN ACCORDANCE WITH GUIDELINES ON LIQUIDITY RISK MANAGEMENT

FRAMEWORK AND LIQUIDITY COVERAGE RATIO AS PER RBI’S MASTER DIRECTION- NON
-BANKING FINANCIAL COMPANY- SYSTEMICALLY IMPORTANT NON - DEPOSIT TAKING
COMPANY AND DEPOSIT TAKING COMPANY (RESERVE BANK) DIRECTIONS, 2016.

(i) Funding Concenration based on Significant Counterparty(both deposits & borrowings)

S. Amount % of Total % of Total

No. of Significant Counterparties
No. (in Lakh) Deposits Liabilites
1 14 210.00 N.A. 100%

(ii) Top 20 Large Deposits

S. Amount % of Total
Counterparty
No. (in Lakh) Deposits
1 Nil - -

88
(iii) Top 20 Borrowings

S. Amount % of Total
Name of the Lender / Investor
No. (in Lakh) Deposits
1 JYOTI GULABSINH GAJARIA 40.00 19%
2 GULABSINH B GAJARIA HUF 30.00 14%
3 HITESH A GALANI 20.00 10%
4 MODY CHEMI PHARMA LIMITED 20.00 10%
5 RITEN M MUNI 10.00 5%
6 JAVNIKA PRADIP THAKKAR 10.00 5%
7 SHABBIR KANCHWALA 10.00 5%
8 SADHANA MUKESH PADWAL 10.00 5%
9 VISHWAS GAJANAN MHAMBREY 10.00 5%
10 MAHENDRA DAMODARDAS MUNI ALIAS SHAH 10.00 5%
11 TARUN MOHTA 10.00 5%
12 VIDHI BHARAT SHAH 10.00 5%
13 SIYA RITWIK NEMANI 10.00 5%
14 MUKESH YESHWANT PADWAL 10.00 5%
Total 210.00 100%

(iv) Funding Concentration based on significant instrument/ product

S. Amount % of Total
Name of the Instrument / product
No. (in Lakh) Liabilities
1 Private Placemnet Bonds 210.00 100%

(v) Stock Ratios

Particulars %
a (i) Commercial Papers as a % of total public funds N.A
a (ii) Commercial Papers as a % of total liabilities N.A
a (iii) Commercial Papers as a % of total assets N.A

b (i) Non-Convertible Debentures (Original Maturity less than 1 year) as a % of total public funds N.A
b (ii) Non-Convertible Debentures (Original Maturity less than 1 year) as a % of total liabilities N.A
b (iii) Non-Convertible Debentures (Original Maturity less than 1 year) as a % of total assets N.A

c (i) Other Short-Term Liabilities as a % of total public Funds N.A

c (ii) Other Short-Term Liabilities as a % of total Liabilities 80.67%
c (iii) Other Short-Term Liabilities as a % of total Assets 6.16%
*Principal outstanding has been considered while calculating Stock Ratios

89
31(a).Trade Receivables aging schedule
(₹ in lakh)

Outstanding For the Year ended 31st March, 2024

Particulars More Total
Less than 6 months 1-2 2-3
than 3
6 months - 1 year years years
years
(i) Undisputed Trade receivables
8.59 - - - - 8.59
– considered good
(ii) Undisputed Trade Receivables
– which have significant increase - - - - - -
in credit risk
(iii) Undisputed Trade
- - - - - -
Receivables – credit impaired
(iv) Disputed Trade Receivables–
- - - - - -
considered good
(v) Disputed Trade Receivables –
which have significant increase in - - - - - -
credit risk
"(vi) Disputed Trade
- - - - - -
Receivables – credit impaired"
(₹ in lakh)

Outstanding For the Year ended 31st March, 2023

Particulars More Total
Less than 6 months 1-2 2-3
than 3
6 months - 1 year years years
years
(i) Undisputed Trade receivables
18.36 - - - - 18.36
– considered good
(ii) Undisputed Trade Receivables
– which have significant increase - - - - - -
in credit risk
(iii) Undisputed Trade
- - - - - -
Receivables – credit impaired
(iv) Disputed Trade Receivables–
- - - - - -
considered good
(v) Disputed Trade Receivables –
which have significant increase in - - - - - -
credit risk
(vi) Disputed Trade
- - - - - -
Receivables – credit impaired

31(b).Trade Payable aging schedule

(₹ in lakh)

Outstanding For the Year ended 31st March, 2024

Particulars Less than 2-3 More than 3 Total
1-2 years
1 year years years
(i) MSME - - - - -
(ii) Others - - - - -
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues - Others - - - - -

90
 (₹ in lakh)

Outstanding For the Year ended 31st March, 2023

Particulars Less than 2-3 More than 3 Total
1-2 years
1 year years years
(i) MSME - - - - -
(ii) Others - - - - -
(iii) Disputed dues – MSME - - - - -
(iv) Disputed dues - Others - - - - -

32. Corporate Social Responsibility (CSR)

Where the company covered under section 135 of the companies act, the following shall be disclosed with regard to CSR
activities:-

For the Year ended For the Year ended

Particulars
31st March, 2024 31st March, 2023
(a) amount required to be spent by the company during the year, 12.86 16.05
(b) amount of expenditure incurred * 12.86 NIL
(c) shortfall at the end of the year NIL 16.05
(d) total of previous years shortfall NIL Refer Note
(e) reason for shortfall # N.A. N.A.
The project
“PRERNA” for creating
‘Installation of Arsenic
entrepreneurship
Free Tubewells in
awareness among
(f) nature of CSR activities various schools of
selected schools in
District North 24
Western Uttar Pradesh
Parganas, West Bengal.
and capacity building of
its teachers
(g) details of related party transactions, e.g., contribution to a trust
controlled by the company in relation to CSR expenditure as per NA -
relevant Accounting Standard,
(h) where a provision is made with respect to a liability incurred
by entering into a contractual obligation, the movements in the
provision during the year should be shown separately.

* The allocated Unspent amount of Rs. 16,05,100 could not get spent during the F.Y. 2023-24 and since the project is an
ongoing project, the same has been transferred to Unspent CSR Account for F.Y. 2022-23 in April 2023 and will be spent
by IFCI Social Foundation (ISF), a registered trust, based on the achievement of milestones.

# The unspent CSR amount Rs. 16,05,100/- contributed by IVCF to ISF for FY 2022-23 has been allocated for CSR
programme under the project “PRERNA” for creating entrepreneurship awareness among selected schools in Western
Uttar Pradesh and capacity building of its teachers . The project will be implemented in phases and is being executed by
EDII, Ahmedabad. The disbursement shall be made on the achievement of milestone set out.

91
IND AS -12 Income tax- Disclosures

33. (a) Deferred tax balances

The following is the analysis of deferred tax assets/(liabilities) presented in the balance sheet:
(₹ in lakh)

As at As at 31st March, 2023

Particulars
31st March, 2024 (Restated)
Deferred tax assets 3,629.25 4,914.64
Deferred tax liabilities - -
Deferred Tax Asset / (Liabilities) (Net) 3,629.25 4,914.64

(₹ in lakh)
Movement Movement
As at
Recognised Recognised
As at 1st 31st March,
Particulars in Statement in other
April 2022 2023
of Profit and comprehensive
(Restated)
Loss income
Deferred tax (liabilities)/assets in relation to:
Property, plant and equipment and Intanigble Assets (0.32) 1.51 - 1.19
Fair value of Investments (134.49) 234.61 - 100.12
Defined benefit obligation 78.44 7.17 (2.69) 82.92
Impairment on Financial Instuments 3,510.71 (364.46) - 3,146.25
Tax Losses 1,297.68 196.41 - 1,494.10
MAT Credit 90.06 - 90.06
Provision of Covid-19 21.31 (21.31) - -
Deferred Tax Asset / (Liabilities) (Net) 4,863.39 53.93 (2.69) 4,914.64

Movement Movement
Recognised Recognised As at 31st
As at 1st
Particulars in Statement in other March,
April 2023
of Profit and comprehensive 2024
Loss income
Deferred tax (liabilities)/assets in relation to:
Property, plant and equipment and Intanigble Assets 1.19 (0.61) - 0.58
Fair value of Investments 100.12 8.40 - 108.52
Defined benefit obligation 82.92 1.34 (7.10) 77.16
Impairment on Financial Instuments 3,146.25 (1,283.91) - 1,862.34
Tax Losses 1,494.10 (3.50) - 1,490.59
MAT Credit 90.06 - 90.06
Deferred Tax Asset / (Liabilities) (Net) 4,914.64 (1,278.29) (7.10) 3,629.25

Note: Recognition of deferred tax assets: The Company has recognized deferred tax assets/ (liabilities) and concluded
that the deferred tax assets will be recoverable using the estimated future taxable income based on the experience and
future projections. The Company is expected to generate adequate taxable income for liquidating these assets in due
course of time. The company does not recognize deferred tax assets (DTAs) for current year losses. This treatment is
consistent with accounting standards, as the recoverability of DTAs from current losses is uncertain until future profits
are generated. Therefore, the company defers recognizing a DTA for current year losses until they have a clearer picture
of their future profitability through a Long Term Business Plan.

92
33. (b) Current Tax reconcilation

The following is the analysis of Current tax assets/(liabilities) presented in the balance sheet:
(₹ in lakh)

As at As at 31st March, 2023

Particulars
31st March, 2024 (Restated)
Opening Balance Assets/(Liabilities) 744.86 606.32
Provision made during the year - -
Adjustments / Refund (225.58) (0.82)
Income tax paid during the year 168.54 139.36
Closing Balance Assets/(Liabilities) 687.82 744.86

34. Payment to Auditors (Excluding GST)

(₹ in lakh)
For the Year For the Year ended
ended 31st March, 2023
31st March, 2024 (Restated)
Audit Fees 4.16 3.83
Certification and other services 2.19 2.39
Reimbursement of Expenses 0.39 0.37

Total 6.74 6.58

35. Details of corporate social responsibility expenditure

(₹ in lakh)
For the Year For the Year ended
ended 31st March, 31st March, 2023
2024 (Restated)
a) Gross amount required to be spent by the company for
12.86 16.05
respective financial year
Amonut Spent by IFCI Venture 12.86 -
Amount Transfer to IFCI Social foundation - 16.05

36. Contingent liabilities and commitments (to the extent not provided for)
(₹ in lakh)

As at As at 31st March, 2023

31st March, 2024 (Restated)
A. Contingent Liabilities
(i) Claims not acknowledged as debts NIL NIL
(ii) Income Tax Matter NIL NIL
Total - -
Considering the current status of the pending litigation cases, no material financial impact is expected on the financial
statements as on March 31, 2024
B. Commitments
(i) Estimated amount of contract (including lease contract)
remaining to be executed on capital account (net of advances)
(ii) Undrawn Commitments 717.07 1,125.00
Total 717.07 1,125.00
C. Contingent assets
There are no contingent assets during the year and the corresponding previous reporting years.

93
 37. Expenditure/Income in Foreign Currencies:

There is no foreign currency Expenditure/income in current as well as in preceeding reporting years

38. Employee benefits

The Company operates the following post-employment plans -

i. Defined contribution plan

The Company makes monthly contribution towards Provident Fund which is a defined contribution plan. The
Company has no obligations other than to make the specified contributions. The contributions are charged to the
Statement of Profit and Loss as they accrue. The amount recognised as expense towards such contribution are as
follows:
(₹ in lakh)

For the Year ended For the Year ended 31st March,
31st March, 2024 2023 (Restated)
Contribution to Provident Fund 8.43 8.28

ii. Defined Benefit plan

A. Gratuity

Gratuity liablity has been determined and accounted on the basis acturial valuation carried out as at March 31,
2024

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan
and the amounts recognised in the Company’s financial statements as at balance sheet date:
(₹ in lakh)

For the Year ended For the Year ended 31st March,
31st March, 2024 2023 (Restated)
Net defined benefit liability 88.11 129.10

(a) Funding

The scheme is fully funded with Life Insurance Corporation of India (LIC). The funding requirements are based on
the gratuity fund’s actuarial measurement framework set out in the funding policies of the plan. The funding of the
plan is based on a separate actuarial valuation for funding purposes for which the assumptions may differ from the
assumptions set out in Section “d” below. Employees do not contribute to the plan.

The expected contributions to gratuity plan for the year ending 31 March 2025 is INR 28.27 lakh.

(b) Reconciliation of the net defined benefit (asset) / liability

The following table shows a reconciliation from the opening balances to the closing balances for net defined benefit
(asset) liability and its components:dule

94
 (₹ in lakh)
For the Year ended For the Year ended
31st March, 2024 31st March, 2023 (Restated)
Net Net
Fair
Particulars Defined defined Defined Fair value defined
value
benefit benefit benefit of plan benefit
of plan
obligation (asset)/ obligation assets (asset)/
assets
liability liability
Balance at the beginning of the year 246.98 117.88 129.10 225.82 108.60 117.22
Included in profit or loss
Current service cost 21.13 - 21.13 14.36 - 14.36
Past service cost including curtailment
- - - - - -
Gains/Losses
Interest cost (income) 18.23 (8.51) 9.71 16.37 (7.95) 8.42
39.36 (8.51) 30.84 30.73 (7.95) 22.79
Included in Other comprehensive
income
Remeasurements loss (gain) - - - - - -
– Actuarial loss (gain) arising from: - - - - - -
- demographic assumptions - - - - - -
- financial assumptions 2.39 - (25.52) (3.04) - (9.65)
- experience adjustment (28.10) - (0.19) (6.54) - 0.07
– on plan assets - - - - - -
(25.71) - (25.71) (9.58) - (9.58)
Other
Contributions paid by the employer - 46.12 (46.12) - 1.33 (1.33)
Benefits paid directly - - - - - -
Misc. - - - - - -
- 46.12 (46.12) - 1.33 (1.33)
Balance at the end of the year 260.62 172.52 88.11 246.98 117.88 129.10

(c) Plan assets

For the Year ended For the Year ended 31st March,
31st March, 2024 2023 (Restated)
Investment with Life insurance Corporation 100% 100%

(d) Actuarial assumptions

Principal actuarial assumptions at the reporting date (expressed as weighted averages):

For the Year ended For the Year ended 31st March,
31st March, 2024 2023 (Restated)
Discount rate 7.12% 7.38%
Future salary growth 8.50% 8.50%
Withdrawal rate:
Up to 30 years 3.00% 3.00%
From 31 to 44 years 2.00% 2.00%
Above 44 years 1.00% 1.00%
Retirement Age (in year) 60 60
Mortality
100% of IALM (2012-14) 100% of IALM (2012-14)

95
(e) Sensitivity analysis of significant assumptions

The following table present a sensitivity analysis to one of the relevant actuarial assumption, holding other assumptions
constant, showing how the defined benefit obligation would have been affected by changes in the relevant actuarial
assumptions that were reasonably possible at the reporting date.

For the Year ended 31st For the Year ended 31st
March, 2024 March, 2023 (Restated)
Increase Decrease Increase Decrease
Discount rate (0.50% movement) (4.51) 4.91 (12.43) (11.58)
Future salary growth (0.50% movement) 4.82 (4.47) 11.61 (12.00)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does
provide an approximation of the sensitivity of the assumptions shown Sensitivities due to mortality & withdrawals
are not material & hence impact of change due to these not calculated.

(f) Expected maturity analysis of the defined benefit plans in future years

For the Year ended For the Year ended

31st March, 2024 31st March, 2023 (Restated)
1 year 4.45 5.78
Between 2-5 years 107.89 69.70
6 year onwards 148.29 171.50
Total 260.62 246.98

As at 31st March 2024, the weighted-average duration of the defined benefit obligation was 13.84 years (31st March
2023: 14.53 years).

(g) Discreption of risk exposures

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is
exposed to various risks as follow -

Salary Increases : Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption
in future valuations will also increase the liability.

Investment Risk : If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than
the discount rate assumed at the last valuation date can impact the liability.

Discount Rate : Reduction in discount rate in subsequent valuations can increase the plan’s liability.

Mortality & disability : Actual deaths & disability cases proving lower or higher than assumed in the valuation can
impact the liabilities.

Withdrawals : Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal
rates at subsequent valuations can impact Plan’s liability.

iii. Other long-term employment benefits

The Company provides leave encashment benefits and leave fair concession to the employees of the Company which
can be carried forward to future years. Amount recognised in the Statement of Profit and Loss for compensated
absences is as under-

For the Year ended For the Year ended 31st

31st March, 2024 March, 2023 (Restated)
Amount recognised in Statement of Profit and Loss
Leave encashment 31.03 37.03
Leave fare concession 34.61 -

96
39 Related party disclosure

1 Name of the related party and nature of relationship:-

A. Nature of Relationship Name of the Related Party

Holding company IFCI Limited

Fellow Subsidiaries IFCI Financial Services Ltd. (IFIN)

IFCI Factors Ltd. (IFL)
IFIN Securities Finance Limited (indirect control through IFIN)
IFCI Social Foundation (Trust)
MPCON Ltd.
Stock Holding Corporation of India Ltd.
Stock Holding Document Management Services Ltd.

Associates Venture Capital Fund for Backward Classes (VCFBC)

Venture Capital Fund for Scheduled Tribes (VCFST)
SAGE Venture Fund
Associates held for sale
Sharon Solutions Ltd
Titan Energy System Ltd

Key Managerial Personnel (i) Shri Shivendra Tomar - Managing Director (w.e.f 10 June 2020 - 3 April 2022)
(ii) Shri V. Anish Babu - Managing Director (w.e.f 4th April 2022)
(iii) Smt. Indu Gupta - Chief Financial Officer
(iv) Rachit Tandon- Company Secretary

Directors (i) Shri Manoj Mittal - Chairman

(ii) Shri Rahul Bhave – Nominee Director
(iii) Shri Prasoon - Nominee Director
(iv) Smt. Tripti Somani- Non-Executive Director
(v) Shri Arvind Kumar Jain- Non-Executive Director
(vi) Shri Ajay Kumar Kapur- Non-Executive Director
(vii) Shri Gauri Shankar – Non-Executive Director

2 Related party transactions during the year and balance receivable from and payable to related parties
as at the balance sheet date:-

For the
For the
Year
Year ended
ended
Name of related party Nature of transaction 31st March,
31st
2023
March,
(Restated)
2024
A. Holding
(i) Rent & Maintenance expenses (Exclusive of
IFCI Ltd. 165.98 167.10
taxes and cess)
(ii) Salaries expense for employees deputed by IFCI
98.29 59.19
Ltd.
(iii) IT Services expense(Exclusive of taxes) 17.50 17.50
(iv) Other expenses 1.38 1.14

97
 (i) Salaries received for employee deputed to IFCI
43.41 18.79
Ltd.
(ii) Interest accrued on Bonds subscribed 197.64 178.43

B. (i) Fellow Subsidiaries

IFCI Financial Services Ltd. (i) Brokerage/ Professional fee paid 0.11 0.34
Stock Holding Corporation (i)
Brokerage/ Professional fee paid 0.01 0.09
of India Ltd.
IFCI Factors Ltd. (IFL) (i) Salaries paid for employees deputed 29.03 16.34
MPCON Ltd. (i) Salaries paid for employees deputed 41.14 11.31
Stock Holding Document (i) Digitalisation of documents
3.61 -
Management Services Ltd.

(ii) Associates
VCFBC (i) Management Fee 225.22 186.27
SAGE Venture Fund (i) Management Fee 53.81 31.11
VCFST (i) Management Fee 16.42 -

C Trust incorporated for CSR activity:

IFCI Social Foundation (i) CSR contribution - 16.05

D. Key Managerial Personnel : Managerial renumeration

(i) Shri Shivendra Tomar - Managing Director (w.e.f 10 June 2020 - 3 April 2022) - -
(ii) Shri V. Anish Babu - Managing Director (w.e.f 4th April 2022) 55.10 41.38
(iii) Smt. Indu Gupta - Chief Financial Officer 41.06 37.01
(iv) Rachit Tandon- Company Secretary 24.45 20.63

Directors - sitting fees

(i) Smt Anjali Kaushik - 0.61
(ii) Shri Anil Kumar Bansal - 0.73
(iii) Shri Ravindra Nath - 1.42
(iv) Shri Arvind Kumar Jain 2.91 1.96
(v) Shri Ajay Kumar Kapur 2.31 1.39
(vi) Smt Tripti Somani 2.37 1.23
(vii) Shri Gauri Shankar 1.08 -

E. Balance Outstanding with the related party during the period: -

(i) Payable to IFCI towards salary of employees
IFCI Ltd. 4.16 9.11
deputed by IFCI
(ii) Interest accrued on Bonds - IFCI Ltd. 1,274.29 1,076.65
(iii) Bonds Subscribed & outstanding 1,000.00 1,000.00
(iv) IT Services from IFCI 2.76 2.76
(v) Receivable from IFCI towards salary of
- 11.96
employee deputed to IFCI
(vi) Other Payable 1.33 -
(i) Payable to IFCI towards salary of employees
IFCI Factors Ltd. (IFL) 2.93 4.35
deputed by IFCI
VCFBC (i) Management Fees Receivable 6.19 4.85
SAGE Venture Fund (i) Management Fees Receivable - -

Total 2,291.66 2,109.68

98
 F. Key management personnel compensation
Short-term employee benefits 120.61 99.02
Post-employment defined benefit - -
Compensated absences - -
Total Compensation 120.61 99.02

40 Leases

i. Disclosure for INDAS 116 (Leases )

On March 30, 2019, the Ministry of Corporate Affairs (MCA) notified new Ind AS on leases, Indian Accounting
Standard (Ind AS) 116 applicable from 01/04/2019. Ind AS 116 has been implemented w.e.f. April 1, 2019 and the
associated disclosure requirements are applicable for financial statements for the year ended March 31, 2020. As per
the Standard it is optional to apply the standard for short term leases (period of 12 months or less). Since the lease
agreements are for a period of 11 months, company has availed the exemption of short term leases.

ii. Amounts recognised in profit or loss

During the year ended 31st March 2024, rental expenses of ₹ 178.52 lakhs (31st March 2023: ₹ 179.92 lakhs) have
been recognised in profit and loss statement.

41 Earnings per share (EPS)

As at 31st
As at 31st
Units March, 2023
March, 2024
(Restated)
(a) Profit Computation for Equity shareholders
Net profit as per Statement of Profit & Loss ₹ in lakh 121.58 548.81
Net profit for Equity Shareholders ₹ in lakh 121.58 548.81
Weighted Average Number of Equity Shares
(b) Nos in lakh 603.71 603.71
outstanding
Earnings Per Share (Weighted Average)
Basic ₹ 0.20 0.91
Diluted ₹ 0.20 0.91

* There are no potential equity shares outstanding as on 31st March 2024.

Out of the above 6,03,71,008 (previous year 6,03,71,008 ) equity shares of Rs. 10 each the holding company namely
IFCI LTD holds 5,95,21,008 equity shares i.e 98.59%.

42 As on March 31, 2024 there were no events or changes in circumstances which indicate any impairment
in the assets as defined by Ind AS 36 - “Impairment of Assets”.

43 Operating segments

a. The MD of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by Ind AS
108, “Operating Segments.” The Company’s operating segments are established in the manner consistent with the
components of the Company that are evaluated regularly by the Chief Operating Decision Maker as defined in ‘Ind
AS 108 - Operating Segments.’ The Company is engaged primarily in Management of Venture funds and the business
of financing and they are separate reportable segments as per Ind AS 108.

b. Information about geographical areas:

The entire revenue of the Company is from customers who are domiciled in India. Also, all the assets of the
Company are located in India.

99
c. Information about major customers (from external customers):

The Company earns 10% or more of Company’s revenue from the following customer:

S. For the Year ended For the Year ended

Particulars
No. 31st March, 2024 31st March, 2023 (Restated)
1 Venture Capital Fund for Scheduled Castes 1,096.22 1,049.35

d. Segment Information

The Company has identified business segments as its primary segment. Business segments are primarily Financing
Activity and Management of Funds. Revenues and expenses directly attributable to segments are reported
under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been
allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are
not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are
directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and
liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated
to primary and secondary segments.

For the Year ended For the Year ended

31st March, 2024 31st March, 2023 (Restated)
Particulars Business segments Business segments
Financing Fund Total Financing Fund Total
Activity Management Activity Management
Revenue 3,738.76 1,391.68 5,130.44 1,423.62 1,266.74 2,690.35
Inter-segment revenue - - - - - -
Total 3,738.76 1,391.68 5,130.44 1,423.62 1,266.74 2,690.35
Allocable Exp 7,632.31 843.16 8,475.47 2,870.49 738.34 3,608.83
Segment result (3,893.55) 548.52 (3,345.03) (1,446.87) 528.39 (918.48)
Unallocable expenses (net) - - - - - -
Operating income (3,893.55) 548.52 (3,345.03) (1,446.87) 528.39 (918.48)
Other income (net) 4,725.83 0.65 4,726.48 1,405.92 0.48 1,406.40
Profit before taxes 832.28 549.17 1,381.45 (40.96) 528.87 487.92
Tax expense 1,278.29 (53.93)
Net profit after Tax 103.16 541.85

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 For the Year ended For the Year ended
31st March, 2024 31st March, 2023 (Restated)
Particulars Business segments Business segments
Financing Fund Total Financing Fund Total
Activity Management Activity Management
Segment assets 15,132.36 8.59 15,140.95 12,960.51 18.35 12,978.86
Unallocable assets - - 3,638.35 - - 4,926.76
Total assets - - 18,779.30 - - 17,905.62
Segment liabilities 18,171.93 - 18,171.93 17,780.48 - 17,780.48
Unallocable liabilities - - 607.37 - - 125.14
Total liabilities 18,779.30 17,905.62
Other information
Capital expenditure
- - - -
(allocable)
Capital expenditure
1.57 - 1.57 5.35 - 5.35
(unallocable)
Depreciation and
- - - - - -
amortisation (allocable)
Depreciation and
4.59 - 4.59 10.76 - 10.76
amortisation (unallocable)
Other significant non-cash
- - - - - -
expenses (allocable)
(Provision for Bad &
Doubtful Assets and Std - - - - - -
Assets)
Other significant non-cash
- - - - - -
expenses (unallocable)

Geographical Segments:
The operations of the company are conducted within India and there is no separate reportable geographical segment.

44 Financial instruments - fair value and risk management

A. Financial instruments by category

The following table shows the carrying amounts and fair values of financial assets and financial liabilities.
(₹ in lakh)
As at 31st March, 2024
Particulars
Note. No. FVTPL Amortised cost
Financial assets:
Cash and cash equivalents 2 - 846.55
Bank balance other than above 3 - 5,812.09
Receivables 4 - 713.18
Loans 5 - 3,980.61
Investments 6 784.08 2,274.29
Other financial assets 7 - 39.18
784.08 13,665.90
Financial liabilities:
Trade payables 14 - 329.16
Debt securities 15 - 220.81
Borrowings (other than debt securities) - -
Other financial liabilities
- 549.97

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 (₹ in lakh)
As at 31st March, 2023 (Restated)
Particulars
Note. No. FVTPL Amortised cost
Financial assets:
Cash and cash equivalents 2 - 461.19
Bank balance other than above 3 - 428.61
Receivables 4 - 43.64
Loans 5 - 7,641.07
Investments 6 811.14 2,076.65
Other financial assets 7 - 18.09
811.14 10,669.25
Financial liabilities:
Trade payables 14 - 38.64
Debt securities 15 - 220.75
Borrowings (other than debt securities) - -
Other financial liabilities
- 259.39

B. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are:
Financial assets and liabilities measured at fair value - recurring fair value measurements
(₹ in lakh)
As at 31st March, 2024 Level 1 Level 2 Level 3 Total
Financial assets:
Investments
-Mutual Funds 72.05 - - 72.05
-Equity Instruments-( Listed) 1.22 - - 1.22
-Equity Instruments-(Non Listed) - - 47.88 47.88
-CCD/OCD/OCPS instruments - - - -
-Units of Venture Funds - - 662.93 662.93
73.27 - 710.81 784.08

Assets and liabilities which are measured at amortised cost for which fair values are disclosed
(₹ in lakh)

Note. Amortised
As at 31st March, 2024 Level 1 Level 2 Level 3 Total
No. cost
Financial assets:
Cash and cash equivalents 2 846.55 - - 846.55 846.55
Bank balance other than above 3 5,812.09 - - 5,812.09 5,812.09
Receivables 4 713.18 - - 713.18 713.18
Loans 5 3,980.61 - - 3,980.61 3,980.61
Investments 6 2,274.29 - - 2,274.29 2,274.29
Other financial assets 7 39.18 - - 39.18 39.18
13,665.90 - - 13,665.90 13,665.90
Financial liabilities:
Trade payables 14 329.16 - - 329.16 329.16
Debt securities 15 220.81 - - 220.81 220.81
Borrowings (other than debt
- - - - -
securities)
Other financial liabilities
549.97 - - 549.97 549.97

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Financial assets and liabilities measured at fair value - recurring fair value measurements
(₹ in lakh)
As at 31st March, 2023 (Restated) Level 1 Level 2 Level 3 Total
Financial assets:
Investments
-Mutual Funds 43.19 - - 43.19
-Equity Instruments-( Listed) 122.60 - - 122.60
-Equity Instruments-(Non Listed) - - 47.88 47.88
-CCD/OCD/OCPS instruments - - - -
-Units of Venture Funds - - 597.47 597.47
165.79 - 645.35 811.14

Assets and liabilities which are measured at amortised cost for which fair values are disclosed
(₹ in lakh)
As at 31st March, 2023 Note. Amortised
Level 1 Level 2 Level 3 Total
(Restated) No. cost
Financial assets:
Cash and cash equivalents 2 461.19 - - 461.19 461.19
Bank balance other than above 3 428.61 - - 428.61 428.61
Receivables 4 43.64 - - 43.64 43.64
Loans 5 7,641.07 - - 7,641.07 7,641.07
Investments 6 2,076.65 - - 2,076.65 2,076.65
Other financial assets 7 18.09 - - 18.09 18.09
10,669.25 - - 10,669.25 10,669.25
Financial liabilities:
Trade payables 14 38.64 - - 38.64 38.64
Debt securities 15 220.75 - - 220.75 220.75
Borrowings (other than debt
14 - - - - -
securities)
Other financial liabilities
259.39 - - 259.39 259.39

C. Valuation framework

The Company measures fair values using the following fair value hierarchy, which reflects the significance of the
inputs used in making the measurements.

Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : The fair value of financial instruments that are not traded in active markets is determined using valuation
techniques which maximize the use of observable market data either directly or indirectly, such as quoted prices
for similar assets and liabilities in active markets, for substantially the full term of the financial instrument but do not
qualify as Level 1 inputs. If all significant inputs required to fair value an instrument are observable the instrument is
included in level 2.

Level 3 : If one or more of the significant inputs is not based in observable market data, the instruments is included
in level 3. That is, Level 3 inputs incorporate market participants’ assumptions about risk and the risk premium
required by market participants in order to bear that risk. The Bank develops Level 3 inputs based on the best
information available in the circumstances.

Financial instruments valued at carrying value

The respective carrying values of certain on-balance sheet financial instruments approximated their fair value.These
financial instruments include cash in hand, balances with other banks, trade receivables, trade payables and certain

103
 other financial assets and liabilities. Carrying values were assumed to approximate fair values for these financial
instruments as they are short-term in nature and their recorded amounts approximate fair values or are receivable
or payable on demand.

45 Financial risk management

The Company’s activities exposure it to credit risk, liquidity risk, market risk and operational risk.

A. Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework. The Board of Directors has established the risk management committee, which is
responsible for developing and monitoring the Company’s risk management policies.

Efficient and timely management of risks involved in the Company’s activities is critical for the financial soundness
and profitability of the Company. Risk management involves the identifying, measuring, monitoring and managing of
risks on a regular basis. The objective of risk management is to increase shareholders’ value and achieve a return on
equity that is commensurate with the risks assumed.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Audit Committee oversees how management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The Audit Committee is assisted in its oversight role by internal audit department, which
undertakes required management controls.

B. Credit risk

Credit risk arises from loans and advances, cash and cash equivalents, investment in debt securtiies and deposits with
banks and financial institutions and any other financial assets. Credit risk is the risk of financial loss to the Company
if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally
from the Company’s asset on finance and trade receivables from customers; loans and investments in debt securities.
The carrying amounts of financial assets represent the maximum credit risk exposure.

a) Credit risk management

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including the default risk associated with the industry. A financial asset is ‘credit-impaired’ when one or more
events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
• significant financial difficulty of the borrower or issuer;
• a breach of contract such as a default or past due event;
• the restructuring of a loan or advance by the Company on terms that the Company would not consider
otherwise; or
• it is becoming probable that the borrower will enter bankruptcy or other financial re-organization;
The risk management committee has established a credit policy under which each new customer is analyzed
individually for credit worthiness before the Company’s standard payment and delivery terms and conditions
are offered. The Company’s review includes external ratings, if they are available, background verification,
financial statements, income tax returns, credit agency information, industry information, etc. Credit limits are
established for each customer and reviewed quarterly.

The company determines significant increase in credit risk on a financial asset subject to impairment
requirements as per expected credit loss method if the cash flows from the financial instrument are overdue

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 by 30 days or more.The company considers default when the principal or interest cash flows on a financial
asset is overdue by 90 days or more. The company provides lifetime expected credit losses on financial assets
that are overdue by 30 or more. Financial assets that are overdue by 90 days or more are considered to be
credit-impaired.

The company recognises interest on effective interest rate for all financial assets whether credit-impaired or
nor credit-impaired. For credit-impaired financial assets, interest is recognised on the the carrying amount
remaining after deducting loss allowance. For the purposes of calculating expected credit losses, the company
groups the financial assets based on similarity of type of financial asset such as coporate loan or personal loan,
type of security such as loan against property and loan against shares, credit rating as at the reporting date
and schedule of payment contractually specified such as monthly or quarterly. However, the credit losses are
calculated on individual instrument level and not group level.

The credit loss calculated at individual instrument level is then adjusted for the probability that the party may
default with 12 months if the financal asset is overdue by less than 30 days and also by the risk weights based
on gross exposure that includes loan commitments and credit risk rating grades. The company considers GDP
growth rate and unempoyment rate over a period of 10 years.

Empirically, there is a negative correlation between GDP growth rate and non-performing asset rate and a
positive correlation between unemployment rate and non-performing asset rate. Any negative effect of GDP
growth rate and unemployment rate is adjusted in the risk weights applied to the the credit loss calculated at
instrument level.

The company calculates credit loss based on the regression analysis of contractual and actual cash flows till
the end of the reporting period. The calculation of credit loss looks into the future, that is after the end of the
reporting period by considering contractual and actual cash flows till the end of latest month for which receipt
information is available.

Actual cash flows beyond the month for which the receipt information is available is estimated based on
regression equation. Credit loss is the present value of cash shortfalls from the end of the reporting period
to the end of the contractual period. The adjusted credit loss is then compared with the present value of the
collateral as on the reporting date and estimate of legal costs to be incurred for realisaation of security to
determine the expected credit losses to recognised as loss allowance.

The present value of the collateral and legal costs is estimated beyon the contractual period if required. Any
increase / decrease in loss allowance for financial assets measured at amortised cost is recognised in profit
or loss for the period. Expected credit losses are considered based on the credit rating as at the end of the
reporting period. Therefore, any change in the credit rating for that instrument may result in change in the risk
weights applied to the credit loss calculated based on regression analysis of the contractual and actual cash
flows over the period of the contract.

b) Significant increase in credit risk

The Company continuously monitors all assets subject to ECLs. In order to determine whether an instrument
or a portfolio of instruments is subject to 12 months ECL or life time ECL, the Company assesses whether
there has been a significant increase in credit risk since initial recognition and required steps are taken.

c) Provision for expected credit losses

The Company’s exposure to credit risk for Loan and advances, trade receivables and other financial assets by
type of counterparty is as follows.

The Company has applied a three-stage approach to measure expected credit losses (ECL). Assets migrate
through following three stages based on the changes in credit quality since initial recognition:

(a) Stage 1: 12- months ECL: For exposures where there is no significant increase in credit risk since initial
recognition and that are not credit-impaired upon origination, the portion of the lifetime ECL associated

105
 with the probability of default events occurring within the next 12- months is recognized.
(b) Stage 2: Lifetime ECL, not credit-impaired: For credit exposures where there has been a significant
increase in credit risk since initial recognition but are not credit-impaired, a lifetime ECL is recognized.
(c) Stage 3: Lifetime ECL, credit-impaired: Financial assets are assessed as credit impaired upon occurrence
of one or more events that have a detrimental impact on the estimated future cash flows of that asset.
For financial assets that have become credit-impaired, a lifetime ECL is recognized and interest revenue is
recognized.
At each reporting date, the Company assesses whether there has been a significant increase in credit risk
of its financial assets since initial recognition by comparing the risk of default occurring over the expected
life of the asset. In determining whether credit risk has increased significantly since initial recognition, the
Company uses information that is relevant and available without undue cost or effort. This includes the
Company’s internal credit rating grading system, external risk ratings and forward-looking information to
assess deterioration in credit quality of a financial asset.
d) Cash and cash equivalents

The Company holds cash and cash equivalents of Rs.846.55 lakh at 31st March 2024 (31st March 2023: Rs.461.19
lakh). The cash and cash equivalents are held with scheduled commercial banks. Impairment on cash and cash
equivalents has been measured on the 12-month expected loss basis and ECL on cash and cash equivalent has
been estimated at NIL in view of creditbility of banks.)

e) Receivable

Trade Receivable stands at Rs.8.59 lakh as on 31st March 2024, Rs.18.36 lakh as at 31st March 2023 Other
Receivable stands at Rs.704.58 lakh as on 31st March 2024 Rs.25.28 lakh as at 31st March 2023.

f) Investment in Debt Security

The company holds investment in listed bonds of the holding company (IFCI LTD) and the intends to hold the
same till maturity to reep the benefit of contralual interest. The same has been carried at amortised cost and
no ECL is estimated on it.

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Note 48B
Appendix
Disclosure as per RBI Ind AS circular
(₹ in lakh)
Loss
Gross
Asset Classification as per RBI Asset Allowances Provisions
Carrying Net Difference
Norms classification (Provisions) required as
Amount Carrying between Ind
as per Ind AS as required per IRACP
as per Amount AS 109
109 under Ind norms
Ind AS
AS 109
(1) (2) (3) (4) (5)=(3)-(4) (6) (7) = (4)-(6)
Performing Assets
Stage 1 - - - - -
Standard
Stage 2 - - - - -
Subtotal - - - - -
Non-Performing Assets (NPA)
Substandard Stage 3 - - - - -
Doubtful - up to 1 year Stage 3 - - - - -
1 to 3 years Stage 3 972.22 570.76 401.46 291.67 279.10
More than 3 years Stage 3 9,702.63 6,123.48 3,579.15 5,577.85 545.63
Subtotal for doubtful 10,674.85 6,694.25 3,980.61 5,869.52 824.73
Loss Stage 3 - - - -
Subtotal for NPA 10,674.85 6,694.25 3,980.61 5,869.52 824.73
Other items such as guarantees, loan Stage 1 - - - -
commitments, etc. which are in the Stage 2 - - - -
scope of Ind AS 109 but not covered
under current Income Recognition, Asset
Classification and Provisioning (IRACP) Stage 3 - - - -
norms
Subtotal - - - -
Stage 1 - - - - -
Stage 2 - - - - -
Total
Stage 3 10,674.85 6,694.25 3,980.61 5,869.52 824.73
Total 10,674.85 6,694.25 3,980.61 5,869.52 824.73

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49. Disclosure in compliance with Regulation 52 (4) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 are as under:

As at 31st As at 31st March, 2023
Ratios
March, 2024 (Restated)
Debt Equity Ratio(Times) 0.01 0.01
Capital redemption Reserve / DRR N/A N/A
Debt Service Coverage Ratio N/A N/A
Interest Service Coverage Ratio N/A N/A
Net Worth (Rs. in Lakh) 17,344.61 17,223.03
Net Profit After Tax 103.16 541.85
Earnings Per Share (EPS) 0.20 0.91
Current ratio 13.40 24.15
Long term debt to working capital; N/A N/A
Bad debts to Account receivable ratio N/A N/A
Current liability ratio; 0.60 0.15
Total debts to total assets; 0.03 0.01
Debtors turnover; N/A N/A
Inventory turnover; N/A N/A
Operating margin (%); N/A N/A
Net profit margin (%); 1.23% 13.40%
Sector specific equivalent ratios, - -
Capital Adequacy Ratio 1.77 1.04
NPA Ratios - -
a) Gross NPA/Net NPA(Times) 2.68 2.48
b) % of Gross NPA/Net NPA 268.17% 248.01%
c) Return on Assets (PBT/Total Assets) 0.07 0.03

50. The Cut off date for event after reposting period is considered as 15th April 2024 in prepration of
these financial statement.

51. Figures of the previous year have been regrouped/rearranged wherever necessary, in order to make
them comparable.

For M D Gujrati & Co.

Chartered Accountants
FRN: 005301N Sd/- Sd/-
Prasoon V. Anish Babu
Sd/- Director Managing Director
G L Agrawal (DIN:03599426) (DIN:02830575)
Partner
M. No. 087454 Sd/- Sd/-
Indu Gupta Rachit Tandon
Place : New Delhi Chief Financial Officer Company Secretary
Date: April 22, 2024

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