k) 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.

l) 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.

m) Cash and cash equivalent

Cash and cash equivalents include balance with banks in current accounts and term deposits, cash & cheques in hand and money lent on collateralized lending
& borrowing obligations transactions.

n) 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.

o) 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.

(All amounts are in Rupees crores unless otherwise stated)

Reserve u/s 45IC of RBI Act

This reserve represents reserve created pursuant to section 45 IC of RBI Act, 1934.

Special Reserve under Section 36(1)(viii) of the Income Tax Act, 1961

Section 36(1)(viii) of the Income Tax Act allows financial institutions to transfer 20% of profit from eligible business i.e. net income from long-term industrial
financing, to this Reserve and the same is allowed as a deduction while computing taxable income. The Income Tax Act, by an amendment in Finance Act, 1998,
has put a condition on maintaining the Reserve created w.e.f FY 1997-98. Any withdrawal would attract tax liability. Upto FY 1996-97, utilisation of the said
Reserve created in the earlier year did not attract tax liability and accordingly Deferred Tax Liability (DTL) has been created on the reserve transferred after FY
1997-98.

Capital Reserve

Capital Reserve represents proceeds of forfeited shares.

Securities Premium Reserve

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.
Capital Redemption Reserve

Capital Redemption Reserve represents amount transferred from surplus in statement of profit and loss towards redemption of preference shares without fresh
issue of capital, as was required under section 55 of the Companies Act, 2013.

Debenture Redemption Reserve

Debenture Redemption Reserve has been created in terms of Rule 18(7) of the Companies (Share Capital and Debentures) Rules, 2014 for Non Convertible
Debentures issued by IFCI Ltd. through public offer. Later vide Notification GSR-574(E) dated 16/08/2019, Ministry of Corporate Affairs (MCA) has notified
amended rules for Share Capital and Debentures (Rules 2014), no additional DRR has to be created either for public issue of bonds or for private placements in
case of existing bonds and debentures.

General Reserve

General reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations.

Deemed equity contribution

Deemed equity contribution on account of preferential rate borrowings from shareholders.

Retained Earnings

Represents as at date accumulated surplus/(deficit) of the profits earned by the Company.

Debt instruments through Other Comprehensive Income

This comprises changes in the fair value of debt instruments recognised in other comprehensive income and accumulated within equity. The Company transfers
amounts from such component of equity to retained earnings when the relevant debt instruments are derecognised.

Equity instruments through Other Comprehensive Income

This comprises changes in the fair value of certain identified equity instruments recognised in other comprehensive income and accumulated within equity.
Remeasurements of the defined benefit plans

Remeasurements of defined benefit liability (asset) comprises actuarial gains and losses and return on plan assets (excluding interest income).

36 Certain balances appearing under trade receivables and payables are subject to confirmation.

37 The Company had received, an amount of Rs. 500 crore from GOI on March 08, 2024, towards subscription to the share capital of the Company for the
FY 2023-24 as share application money. In this regard, the Committee of Directors had allotted 12,39,77,188 number of equity shares of face value of
Rs. 10/- each to the GOI on April 18, 2024 @ Rs. 40.33/- per equity share (including security premium of Rs. 30.33/- per equity share).

Further, an amount of Rs. 500 crore was received from GOI on January 28, 2025, towards subscription to the share capital of the Company for the FY
2024-25 as share application money. In this regard, the Committee of Directors had allotted 8,07,23,280 number of equity shares of face value of Rs.
10/- each to the GOI on February 28, 2025 @ Rs. 61.94/- per equity share (including security premium of Rs. 51.94/- per equity share).

38 As on March 31, 2025, provisioning required under RBI Prudential (IRACP) Norms (including standard assets provisioning) is higher than impairment
allowance under Ind AS 109 by Rs. 74.88 crore. However, since the existing balance in the impairment reserve stands at Rs. 104.67 crores, no further
Impairment Reserve has been created, as per the requirements of RBI notification no “DOR (NBFC) CC. PD. No109/22.10.106/2019-20 dated March
13, 2020. Also, existing impairment reserve of Rs. 104.67 crores has not been reversed in accordance with the RBI notification.

39 During the current year, the Company reviewed the methodology for estimating ECL provision on project and corporate loans which resulted in changes
in ECL methodology from portfolio to account level basis. Estimating ECL provision basis forecasted recovery of loans on an account level will
result in better estimation and presentation of ECL provision in comparison to estimating ECL provision on portfolio level. These changes have been
considered as change in accounting estimate as per Ind AS 8 (Accounting policies, change in accounting estimates and errors) and have been accounted
for prospectively with effect from current financial year. As an effect of these changes, the ECL provision on loans has increased by Rs. 290.86 crores
for the current financial year and accordingly reducing profit before taxes.

40 In terms of the communication received by IFCI Limited from Department of Financial Services (DFS), Ministry of Finance, vide letter F.No.2/22/2016-
IF-1 dated November 22, 2024, In-principle approval has been accorded to consider ‘Consolidation of IFCI Group’ which entails Merger / Amalgamation
of certain group companies at the holding company level and subsidiary company level. DFS has advised to take further necessary action and to
commence the process in accordance with the applicable laws, rules, regulations etc. In this regard, the Board of IFCI at its Meeting held on November
22, 2024 has considered and accrorded In-principle approval to consider aforesaid ‘Consolidation of IFCI Group’, and to commence the process for the
same, in accordance with the regulatory/ statutory/applicable laws, rules, regulations, guidelines, framework and standards, etc. The detailed disclosure
has been reported to stock exchanges on November 22, 2024.

40.1 The valuation of Investments in subsidiary companies has been considered on the basis of financial statements of the subsidiaries for the period ended
31st December 2024, instead of 31st March 2025. There is no material impact of this on the financial results of the company.

40.2 The Company has recognised interest income of Rs. 106.16 crores on stage 3 assets (except on assets which are standard under IRAC norms) for the
FY 2024-25. Since, there was no expectation of recovery, the same has been written off as bad debts in the same year. Hence, there is no impact on net
profit or loss for the year.

(All amounts are in Rupees crores unless otherwise stated)

40.3 The Capital Risk Adequacy Ratio (CRAR) stands at (-) 23.04% as on 31st March, 2025, below the RBI stipulated guidelines vide circular dt. 31st May
2018 (RBI/2017-18/181DNBR (PD) CC. No. 092/03.10.001/2017-18).

40.4 IFCI is carrying investment in subsidiary companies at cost net of impairment loss (if any) and opted for one time exemption under Ind AS 101 for
deemed cost being the carrying value of investment as at transition date i.e. April 1, 2017. As on March 31, 2025, the Company had investment in
27,91,54,700 no. of Equity shares in its subsidiary, IFCI Factors Ltd. (IFL) and 3,93,63,809 no. of Equity shares in its subsidiary, IFCI Financial Services
Ltd. (IFIN). The company got the shares of IFL & IFIN fair valued internally, per which, the fair value of investments in shares of IFL was determined
at Rs.17.31 crore and the fair value of investments in shares of IFIN was determined at Rs.60.90 crore, and accordingly, the resultant impairment loss
has been charged in the Profit & Loss Account.

41 In the context of reporting business/geographical segment as required by Ind AS 108 - "Operating Segments", the Company operations comprise of only
one business segment of financing . Hence, there is no reportable segment as per Ind AS 108.

42 On all the secured bonds and debentures issued by the Company and outstanding as on 31st March 2025, 100% security cover has been maintained
against principal and interest, by way of floating charge on receivables of the Company .

43 These financial statements have been prepared as per Schedule III Division III of the Companies Act, 2013 which has been notified by the Ministry of
Corporate Affairs and published in the official Gazette on 11th October 2018. Any application guidance/ clarifications/ directions issued by RBI or other
regulators will be implemented as and when they are issued/ applicable.

44 Uses of Funds

No funds are borrowed from banks and financial institutions during the year.

44.1 Change due to revaluation

During the year the company has not revalued its Property Plant and Equipment (PPE) and intangible assets

44.2 Other additional regulatory disclosures as required under Schedule III

a. Loans and advances

The company has not granted any loans and advances in the nature of loans to promoters, directors, Key Managerial Personnel (KMPs)
and the related parties, repayable on demand and where terms or period of repayment are not defined.

b. Ageing Analysis of Capital Work in Progress

There is no Capital work in progress in the current year as well as preceeding financial year.

c. Ageing Analysis of Intangible Assets under Development

There is no Intangible Assets under Development in the current year as well as preceeding financial year.

d. Benami Property:

No proceedings have been initiated or pending against the company for holding any Benami property under the Benami Transaction (Prohibition)

Act, 1988 (45 of 1988) and rules made thereunder.

e. Borrowing against security of Current Assets

The company has no borrowings from bank or financial institutions against security of current assets.

f. Wilful Defaulter:

The company has not been declared as wilful defaulter by any bank or financial institution or any other lender during the year.

g. Relationship with Struck off company:

The company has no transanction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

h. Registration of Charges or satisfaction with Registrar of Companies (ROC)

There is no charge or satisfaction which is yet to be registered with ROC beyond the Statutory period.

i. Companies with number of Layer of Companies:

Company being a NBFC, clause(87) of section 2 of the Act is not applicable.

j. Scheme of arrangement

During the year no Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

k. Utilization of borrowed funds:

(i) The company has not advanced or loaned or invested any funds to any other person(s) or entity(ies), with the understanding that the intermediary
shall directlly 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 to or on behalf of the Ultimate Beneficiaries.

(ii) The company has not received any funds from any other person(s) or entity(ies) including foreign entities, with the understanding that the
intermediary shall directlly 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 to or on behalf of the Ultimate Beneficiaries.

(AH amounts are in Rupees crores unless otherwise stated)

l. Undisclosed Income:

During the year the Company has not disclosed any income in terms of any transaction not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions
of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme.

m. Details of Crypto Currency or Virtual Currency:

The company has not traded in Crypto Currency or Virtual Currency during the financial year.

EMPLOYEE BENEFITS

The Company operates the following post-employment plans -

i. Defined contribution plan

The Company makes monthly contribution towards pension 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:

For the year ended For the year ended

31 March 2025 31 March 2024

Contribution to Pension Fund 0.01 0.01

ii. Defined benefit plan

A. Gratuity

The Company has a defined benefit gratuity plan in India, governed by the IFCI Gratuity Regulations, 1968. This plan entitles an employee, a sum equal
to one month’s pay plus dearness allowance for each completed year of service in IFCI or part thereof in excess of six months, subject to a maximum
of twenty months pay plus dearness allowance or Rupees Eighteen Lakh whichever is less, for first twenty years of service.. The scheme is fully funded
with Life Insurance Corporation of India (LIC). This defined benefit plan expose the Company to actuarial risks, such as longevity risk, currency risk,
interest rate risk and market (investment) risk.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March
2025. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected
Unit Credit Method.

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:

As at As at

_31 March 2025__31 March 2024_

; (2.41) (0.34)

(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.

Expected contributions to gratuity plan for the year ending 31 March 2025 is Rs. 1.10 crore.

(f) Description 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 -
Medical Cost Increase - increase in actual medical cost per retiree will increase the Plan’s liability. Increase in medical Cost per Retiree rate
assumption 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.

C. Provident Fund

The Company has a defined benefit provident fund, governed by the IFCI Employees’ Provident Fund Regulations. Monthly contributions to the
Provident Fund is being charged against revenue. IFCI has been paying interest on the provident fund balance at the rate notified by the Employees’
Provident Fund Organization (EPFO) for the relevant year. The Provident Fund is administered through duly constituted and approved administrators.
The Committee of Administrators of IFCI Employees’ Provident Fund has approved earmarking of specific investments against the PF liability in the
current financial year. For the purpose, investments have been earmarked towards PF liability in line with the notification issued by Ministry of Labour
& Employment notifying the pattern of investment for EPFO and EPF exempted establishments.

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

As at 31 March 2025, the weighted-average duration of the defined benefit obligation was 12.88 years (31 March 2024: 12.74 years ).

) Description 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 -
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.

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-

(AH amounts are in Rupees crores unless otherwise stated)

51 Transfers of financial assets

In the ordinary course of business, the Company enters into transactions that result in the transfer of loans and advances given to customers. In accordance
with the accounting policy set out in Note 2, the transferred financial assets continue to be recognised in their entirety or to the extent of the Company's
continuing involvement, or are derecognised in their entirety. The Company transfers financial assets that are not derecognised in their entirety are primarily
through the sale of NPA loans to asset reconstruction companies (ARCs).

A. Transferred financial assets that are not derecognised in their entirety
Sale of NPA loans to asset reconstruction companies (ARCs)

Sale of NPA loans to asset reconstruction companies (ARCs)' are transactions in which the Company sells loan and advances to an unconsolidated special
vehicle and simultaneously purchases the majority portion of security receipts issued by said vehicle. The security receipts are collateralised by the loans
purchased by the vehicle and hence the cash flow of the security receipts is dependent on the recovery of purchased loans. The Company continues to
recognise that part of the loans in their entirety against which security receipts have been subscribed by the Company because it retains substantially all
of the risks and rewards of ownership w.r.t that part of the transferred loan. The part of loan transferred against which cash consideration is received is
derecognised.

The following table sets out the carrying amounts and fair values of one financial asset transferred that is not derecognised in entirety and associated
liabilities.

There are equity instruments in 43 companies which are presently under CIRP or liquidation. In respect of these companies, equity instruments are being
carried at Nil value in the book of accounts, as on 31st March 2025.

The valuation in 36 cases of investment was not carried as on 31st March 2025 and same shall be undertaken in the next financial year.

B. Valuation framework

The respective operational department performs the valuation of financial assets and liabilities required for financial reporting purposes, either externally or
internally for every quaterly reporting period. The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would
be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date.

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. It develops Level 3
inputs based on the best information available in the circumstances.

The valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments measured at fair value in the balance sheet, as well as
the significant unobservable inputs used.

C. Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:

(a) recognised and measured at fair value and

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the
three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Financial assets and liabilities measured at fair value - recurring fair value measurements

(All amounts are in Rupees crores unless otherwise stated)

A Risk management framework

The Company's Board of Directors have overall responsibility for the establishment and oversight of the risk management framework. The board
of directors have established the Risk Management and Asset Liability Management Committee of the Directors (RALMCD) which is responsible
for developing and monitoring the Company's integrated risk management policies. The RALMCD is assisted in its oversight role by the Risk and
Asset Liability Management Committee of Executives (RALMCE). The Integrated Risk Management Department undertakes regular reviews of risk
management controls and procedures, the results of which are reported to the RALMCE.

B. Credit risk

Credit risk arises from loans and advances, cash and cash equivalents, investment in debt securties 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 loans and advances to customers, trade receivables from customers; loans and
investments in debt securities.

^a) Credit risk management

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer/obligor. However, management
also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry, business
specific risk, management risk, transition specific risk and project related risks.

A financial asset is considered ‘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 issuer or the borrower

- A breach of contract, such as default

- The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower
concession(s)

that the lender(s) would not otherwise consider

- It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation

- The disappearance of the active market for that financial asset because of financial difficulties

- Purchase or origination of a financial asset at a deep discount that reflects the incurred credit loss

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 minimum finalised internal
rating, external ratings, if they are available, background verification, financial statements, income tax returns, credit agency information, industry
information, etc. Credit limits have been established for each customer and reviewed periodically and modifications are done, as and when required.
Any loan exceeding prescribed limits require approval from the respective competent authority.

^b) Probablity of defalut (PD)

The Probability of Default (PD) defines the probability that the borrower will default on its obligations in the future. Ind AS 109 requires the use
of separate PD for a 12 month duration and lifetime duration based on the stage allocation of the borrower. A PD used for Ind AS 109 should
reflect the institution’s view of the future and should be unbiased (i.e. it should not include any conservatism or optimism). Probability of Default
are mapped to IFCI's internal obligor ratings.

Default’ has not been defined under Ind AS. An entity shall apply a default definition that is consistent with the definition used for internal credit
risk management purposes and consider qualitative indicators when appropriate. A loan is considered as defaulted and therefore Stage-3 (credit
impaired) for ECL calculations in the following cases:

-On deterioration of the IFCI internal combined ratings of the borrower to CR-9 or CR-10 (Comparison to be done between origination rating and
current rating).

-On asset being classified as NPA as per RBI prudential norms
-On restructuring of assets with impairment in loan value
-On asset being more than 90 days past dues.

^d) Exposure at default (EAD)

The exposure at default (EAD) represents the gross carrying amount of the financial instruments which is subject to the impairment calculation.

^e) Loss given default (LGD)

LGD is an estimate of the loss from the transaction given that a default occurs. For arriving at LGD, future cashflows are estimated for each asset
and their present value is computed.

^f Significant increase in credit risk

At each reporting date, an entity shall assess whether the credit risk on a financial instrument has increased significantly since initial recognition.
When making the assessment, an entity shall use the change in the risk of the default occurring over the expected life of the financial instrument
instead of the change in the amount of expected credit loss. To make that assessment, an entity shall compare the risk of a default occurring on the
financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and
consider reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk
since initial recognition. An entity may assume that the credit risk on a financial instrument has not increased significantly since initial recognition
if the financial instrument is determined to have low credit risk at the reporting date.

(AH amounts are in Rupees crores unless otherwise stated)

C. Liquidity risk

Liquidity risk is the potential inability to meet the institution’s liabilities as they become due. From IFCI perspective, it basically originates from the
mismatches in the maturity pattern of assets and liabilities. Analysis of liquidity risk involves the measurement of not only the liquidity position of the
institution on an ongoing basis but also examining how funding requirements are likely to be affected under severe but plausible scenarios. Net funding
requirements are determined by analysing the institution’s future cash flows based on assumptions of the future behaviour of assets and liabilities that
are classified into specified time buckets, utilizing the maturity ladder approach and then calculating the cumulative net flows over the time frame for
liquidity assessment.

For the present, for measuring and managing net funding requirements, the use of maturity ladder and calculation of cumulative surplus or deficit of funds
at selected maturity dates is being utilized as a standard tool.

The ALM format prescribed by RBI in this regard is being utilized for measuring cash flow mismatches in different time bands. The cash flows are
placed in different time bands based on projected future behaviour of assets, liabilities and off-balance sheet items. Apart from the above cash flows, the
institution would also track the impact of prepayments of loans, premature closure of liabilities and exercise of options built in certain instruments which
offer put/call options after specified times. Thus, cash outflows can be ranked by the date on which liabilities fall due, the earliest date a liability holder
could exercise an early repayment option or the earliest date contingencies could be crystallized.

The company has initiated an exercise to identify its High Quality Liquid Investments and compute Liquidity Coverage Ratio.

In addition, the Company maintains the following lines of credit:

- IDBI Bank: Rs.110 Crore which is secured against FD with ROI 7.81% p.a.

- HDFC Bank : Rs.16 Crore which is secured against MF with ROI MCLR of the month.

For exposure to liquidity risk, the maturity pattern at point no.55 (xxxiv) may be referred.

D. Market risk

Market risk means the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables such as interest
rates, foreign exchange rates and equity prices. In line with regulatory guidelines, the Company classifies exposures to market risk into either Current or
Long term portfolios and manages each of those portfolios separately.

The market risk management framework in IFCI comprises risk identification, setting up of limits & triggers, risk measurement, risk monitoring, risk
reporting and taking corrective actions where necessitated. It is pertinent to highlight that the details pertaining to threshold investment grade rating,
investment limits, approval authority, control mechanism including stop-loss triggers, compliances required, etc. for different treasury products including
equity trading have been clearly outlined in the extant Treasury & Investment Policy of IFCI.

(a) Market risk - trading portfolios

The Company does not have any trading portfolios.

(b) Market risk - Non-trading portfolios

(i) Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which borrowings are denominated and the
respective functional currencies of Company. The functional currency for the company is Rs. As on date, foreign currency borrowings are NIL.

(ii) Interest rate risk

The Company attempts to minimize the gap between floating rate liabilities and floating rate assets, in order to minimize interest rate risk. This is achieved
by way of borrowings at a floating rate and lending at rates linked to IFCI benchmark rate, which in turn is linked to, among others, its cost of borrowings.
Further, analysis of impact of change in market rates of interest is carried out on a periodic basis, to analyse impact on Net Interest Income of IFCI and
Market Value of Equity of IFCI. In line with extant regulatory guidelines, Interest rate Sensitivity statement is prepared on a monthly basis and anlysed
to understand gaps in various time buckets.

Exposure to interest rate risk

The interest rate profile of the Company's interest-bearing financial instruments as reported to the management is as follows:

(iii) Equity price risk

Equity price risk is the risk that the fair value of equities declines as a result of changes in the level of equity indices and market price of individual stocks.
The non-trading equity price risk exposure arises from equity securities classified at Fair Value. The equity price risk same is applicable to securities held
for the purpose of trading. As the Company focuses on long term investments and curent investments are kept low (investments held for tradng purposes),
IFCI may not be exposed to significant equity price risk.

54 Capital management

The basic approach of capital adequacy framework is that, a financial institution should have sufficient capital to absorb shocks on account of any unexpected
losses arising from the risks in its business.

As per RBI guidelines, IFCI as a Government owned NBFC-ND-SI is required to maintain a minimum capital to risk weighted asset ratio. Capital
management entails optimal utilization of scarce capital to meet extant regulatory capital requirements. IFCI has put in place an appropriate Risk Appetite
framework and computes its capital requirements and adequacy as per extant regulatory guidelines.

i. Regulatory capital

The Company's regulatory capital consists of the sum of the following elements :

- Common equity Tier 1 (CET1) capital, which includes ordinary share capital, related share premiums, retained earnings and reserves after adjustment for
dividend declared and deduction for goodwill, intangible assets and other regulatory adjustments relating to items that are not included in equity but are
treated differently for capital adequacy purposes.

- Tier 2 capital, which includes preference shares, qualifying subordinated liabilities and any excess of impairment over expected losses.

# For the purpose of calculation of Net Owned Funds, DTA has been considered net of MAT credit entitlement.

*As required by the RBI Notification No. "DOR (NBFC). CC.PD.No. 109/22.10 dated 13 th March 2020 in respect of Implementation of Indian Accounting
Standard (IndAS) in NBFC. the company has appropriated the difference between the impairment allowance under Ind AS 109 and the provisioning
required under RBI Prudential (IRACP) Norms (including standard assets pro-visioning), a sum of '104.67 crore has been taken to "Impairment Reserve”

Capital allocation

The amount of capital allocated to each operation or activity is undertaken with the objective of minimisation of return on the risk adjusted capital.
Allocation of capital is to various lines of business basis annual business plan drawn at the beginning of the year. Various consideration for allocating capital
include synergies with existing operations and activities, availability of management and other resources, and benefit of the activity with the company's
long term strategic objectives.

The following additional information is disclosed in terms of RBI Circulars applicable to Non-Banking Financial Companies. Ind AS adjsutements have
not been made in these disclosures unless specifically stated :

The company is registered with Securities and Exchange Board of India as debenture trustee having registration code i.e. “IND000000002”.

“There are no penalties imposed by RBI and other regulator during the year ended March 31, 2025. However, the Stock Exchanges had been imposing
fines for non-compliance with the provisions of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015, relating to composition of
the Board of Directors and Committees namely Audit Committee, Nomination and Remuneration Committee, Stakeholders’ Relationship Committee and
Risk Management Committee, in the absence of requisite number of Independent Directors on the Board of IFCI.

In response to the fines levied by the Stock Exchanges, the Company has requested the Stock Exchanges, not to impose the fine and take any other
subsequent actions on the Company, since the appointment of Independent Directors on the Board of Company is done by Ministry Administratively
in-charge of the Company. Accordingly, Company has been requesting the Ministry Administratively in- charge for appointment of requisite number of
Independent Directors (including women independent director) on the Board of the Company.

Securities sold under Repo:

1 Govt. Securities - - -

2 Corporate Bonds - - -

Securities purchased under reverse repo:

1 Govt. Securities - - -

2 Corporate Bonds - - -

Maximum & average outstanding is based on face value of securities.

59 Previous year figures have been re-grouped/ re-arranged/ restated wherever necessary, to conform

to current period’s presentation.

In terms of our Report of even date For and on behalf of the Board ofDirectors of IFCI Limited

For S Mann and Company Rahul Bhave Umesh Kumar Garg

Chartered Accountants Managing Director & Independent Director

ICAI Firm registration No.: Chief Executive Officer DIN 00599426

000075N DIN 09077979

CA Subhash Chander Mann Suneet Shukla Priyanka Sharma

Partner Chief General Manager & Company Secretary

Membership No.: 080500 Chief Financial Officer

Place: New Delhi
Dated: 15 May 2025