cover - english · annual accounts 57 senior executives 103 ... to receive, consider and adopt the...

39th

Annual Report2008-2009

HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITEDAN ISO 9001:2000 CERTIFIED COMPANY

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VISIONTo be among

the world’s leading knowledge hubsand

financial facilitatingorganisations for habitat settlement

MISSIONTo promote

sustainable habitat developmentto enhance the quality of life

39TH ANNUAL REPORT 2008-2009

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CONTENTS

Notice of AGM 6

The Management 7

Chairman’s Speech 9

Directors’ Report 15

Corporate Governance Report 35

Statutory Auditors’ Certificate on Corporate Governance 44

Addendum - I 45

Auditors’ Report 47

Addendum - II 53

Comments of the C&AG 56

Annual Accounts 57

Senior Executives 103

HUDCO’s Office Network in the Country 105

Details of the Auditors & Bankers 110

HUDCO Financed, Bhagwant Institute of Technology for Women at Bijnore, Uttar Pradesh

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OPERATIONAL HIGHLIGHTS

PARTICULARS 2004-05 2005-06 2006-07 2007-08 2008-09

No. of Schemes Sanctioned 317 224 287 306 192

Loan Sanctioned (Rs. in crore) 13862 10099 12163 13501 14754

Amount Released (Rs. in crore) 5921 3767 3453 3754 4020

Dwelling Units

- Total 1119742 192197 140970 98868 114009

- % of EWS & LIG 99 96 84.4 84 91

Sanitation Units 28293 3990 780026 184 0

No. of Urban Infrastructure (UI) Projects 126 101 135 150 103

UI Loan Sanctioned (Rs. in crore) 10217 8553 9284 11349 13021

FINANCIAL HIGHLIGHTS (Rs. in crore)

PARTICULARS 2004-05 2005-06 2006-07 2007-08 2008-09

Gross Income 2777.19 2298.77 2610.26 2610.19 2713.18

Profit After Tax 396.77 260.24 308.38 373.73 400.99

Shareholders' fund 3370.51 3589.83 3878.22 4162.68 4647.46

Share Capital - Equity 2001.90 2001.90 2001.90 2001.90 2001.90

Reserves & Surplus 1407.87 1625.63 1911.59 2188.79 2665.96

Borrowings 21217.25 21461.42 20382.60 18902.98 19249.32

Loans Outstanding 20861.41 21348.76 21065.30 21072.94 21426.97

Earning per share (Rs.) 200.31 130.00 154.04 186.99 200.30(Face value of Rs. 1000 per share)

OPERATIONAL AND FINANCIAL HIGHLIGHTS


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� � �PROFITABILITY

AA+/AAACREDITRATING

FEE BASEDINCOME

MILESTONES ACHIEVED BY HUDCO

PARTICULARS For the period For the period01.04.2008 to 01.04.2007 to

31.03.2009 31.03.2008

1 a) Income from 2685.40 2591.38Loans, Investment,deposits and others

b) Consultancy fee 22.85 14.24c) Other Income 4.93 4.57

2 Total Expenditurea) Interest and other 1902.45 1725.61

Chargesb) Personnel expenses 75.75 85.67c) Deprecation 4.67 5.29d) Administrative and 24.13 21.03

other expensese) Provision on Loans (65.04) 214.20

and others

3 Profit before Tax and 771.22 558.39prior period adjustments

4 Prior period adjustments (net) 6.25 (0.29)

5 Deferred Tax adjustment (120.97) -earlier years

6 Profit before Tax 656.50 558.10

7 Provision for Tax and 254.66 183.52Deferred Tax

8 Provision for Fringe benefit Tax 0.85 0.85

9 Profit after Tax 400.99 373.73

HIGHLIGHTS

Highest level of profitabilityin 2008-09, since inception in1970, with a PBT ofRs. 656.50 Crore and a PATof Rs. 400.99 Crore.

“AAA” rating for its Bond/NCDissue by Brickwork Ratings,which is the highest everrating assigned sinceinception.

The only DevelopmentFinancing Institution(DFI) inIndia, which got ratingsupgrades to AA+ fromM/s FITCH and M/s CARE,for its short term and longterms borrowings. Highestsince inception on stand-alone basis.

Net NPAs in 2008-09 downby 13.53%

Achieved the highest everFee Based income sinceinception.

Highest MoU Score duringlast four years.

Highest Social Housingsanctions during last fouryears

( Rs. in crore)

HIGHEST SINCEINCEPTION



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NOTICENotice is hereby given that the Thirty Ninth Annual General Meeting of the Housing and UrbanDevelopment Corporation Limited will be held on Thursday, the 13th August, 2009 at 11.00 a.m.* atthe Registered Office of the Company at HUDCO Bhawan, India Habitat Centre, Lodhi Road, NewDelhi-110003 to transact the following business:-

ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2009 and the Profitand Loss Account for the year ended as on that date together with the Report(s) of Directors'and Auditors' and comments of the Comptroller and Auditor General of India thereon.

2. To declare the dividend.

3. To pass the following resolution for fixing the remuneration of Statutory Auditors:-

"RESOLVED THAT pursuant to the provisions of Section 224(8)(aa) and other applicableprovisions, if any, of the Companies Act, 1956, the Board of Directors, be and are herebyauthorised for fixation of annual statutory audit fee payable to the Statutory Auditors for thefinancial year 2009-10."

By Order of the Board of Directors

Place : New Delhi H VermaDated : 21st July, 2009 Company Secretary

1 All the Shareholders of Housing and Urban Development Corporation Ltd.

2 The Chairman & Managing Director and the Directors of Housing and Urban DevelopmentCorporation Ltd.

3 The Statutory Auditors' of the Company.

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TOAPPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEEDNOT BE A MEMBER.

2. A copy of the Memorandum and Articles of Association shall be open for inspection at theRegistered Office of the Company during the business hours.

3. Pursuant to the Section 619(2) of the Companies Act, 1956, the Auditors of a GovernmentCompany are to be appointed or reappointed by the Comptroller and Auditor General of India(C&AG) and, in terms of Section 224(8) (aa) of the Companies Act, 1956, their remunerationshall be fixed by the Company in general meeting or in such manner as the Company in generalmeeting may determine. The members of the Company in the 38th Annual General Meeting heldon 29th September, 2008 fixed remuneration of the M/s SN Dhawan & Co, Chartered Accountants,Statutory Auditors of the Company, at Rs.4.50 lacs plus service tax as applicable andreimbursement of out of pocket expenses incurred, as Statutory Audit fee for the financial years2006-07, 2007-08 and 2008-09 annually. Further, since the Statutory Auditors of the Companyfor the financial year 2009-10 are yet to be appointed by C&AG, the members may authorizethe Board of Directors to fix an appropriate remuneration of the Statutory Auditors, as may bedeemed fit by the Board, for the financial year 2009-10.

* The 39th AGM was originally scheduled to be held on 13th August 2009 at 11.00 a.m. was re-scheduled for 21st August2009 at 11.00 a.m. & further re-scheduled and finally held on 24th August 2009 at 4.00 p.m.


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THE MANAGEMENT

KL DhingraChairman and Managing Director

RS SolankiPart-Time Non-Official

Director

Dinesh MahajanPart-Time Non-Official

Director

Nirmala S PrabhavalkarPart-Time Non-Official

Director

Dr. RB BarmanPart-Time Non-Official

Director

T PrabakaranDirector Finance

Dr. PK MohantyPart-Time Official Director &

JS (JNNURM), MoHUPA

Dr. RK VatsPart-Time Official Director &

JS & FA, MoHUPA

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HUDCO presents dividend cheque to Kumari Selja, Hon’ble MinisterMinistry of Housing and Urban Poverty Alleviation, Government of India


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CHAIRMAN’S SPEECH

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CHAIRMAN’S SPEECH

Good afternoon Ladies and Gentlemen,

At the outset, I extend a warm welcome to you on the occasion of the 39th Annual General Meetingof the Company. It is my privilege to address this august group of members for the third year insuccession. I also thankfully acknowledge your continuing support for enabling us to attain newerheights of success during the financial year 2008-09. The Annual Accounts alongwith Directors' Report,Auditors' Report and Management Reply thereon have already been with you and with your kindpermission, I take the aforesaid as read.

It is indeed my pleasure to share with you the highlights of another year of laudable accomplishmentsof your Company.

1. Economic Environment

The year 2008-09 witnessed the global economic recession, which has taken its toll on all theadvanced economies. Indian economy was also affected with a slow down in its economic growth.Despite the adverse situation prevailing in the world, the Indian economy has sustained, and is showinghealthier signs of recovery. Indian markets have shown admirable resilience notwithstanding theseverity and multiplicity of the global events.

The growth of Indian economy is estimated to be 6.7% for the year 2008-09. GDP growth rateis pegged at 6.5% for the year 2009-10. To counter the negative fallout of the global slowdownon the Indian economy, the Government has acted promptly by providing major fiscal stimuluspackages, which aim at increasing expenditure on public projects to create employment and publicassets.


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2. Sectoral Overview and Major Policy Initiatives by the Government

The rapid growth of population as well as urbanisation in India has resulted in a mammoth shortageof housing & infrastructure in the country. By the Eleventh Five Year Plan, the total housingrequirement in India is estimated at 26.53 million, of which a major proportion pertains to EconomicallyWeaker Section (EWS) and Low Income Group (LIG) categories. The total investment requirementfor meeting the housing requirement would be of the order of Rs. 3,61,318 crore consisting ofRs. 1,47,195 crore required for mitigating housing shortage at the beginning of the Eleventh Five YearPlan, and Rs. 2,14,123 crore for new additions to be made (including pucca, upgradation ofsemi-pucca and kutcha housing units) during the Eleventh Plan period.

In order to stimulate housing and urban development in the country, the Government of India hasrecently come out with major policy/programme initiatives like National Urban Housing and HabitatPolicy (NUHHP) 2007, Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Interest Subsidyscheme for Housing the Urban Poor (ISHUP), Rajiv Awas Yojana, etc.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched by the Government ofIndia, aims at improving urban services in a financially sustainable manner in 63 identified cities. TheMission envisages central assistance of Rs. 50,000 crore over a 7 year period beginning from2005-06. The admissible projects under the Mission include urban renewal, water supply, sewerage/solid waste management, urban transport, etc. The National Urban Housing and Habitat Policy(NUHHP) 2007 has been formulated by the Government of India to address issues of sustainablehabitat and infrastructure development and to provide a minimum level of basic services and amenitiesto all. Further, the Government has launched a massive scheme to address the slum issues with anobjective of making India `slum free'. The Rajiv Awas Yojana aims to provide the slumdwellers theproperty rights and facilitate affordable housing for the slum rehabilitation and improve their qualityof life.

The Ministry of Housing and Urban Poverty Alleviation (MoHUPA), Government of India, has designedthe Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) as an additional instrument foraddressing the housing needs of EWS and LIG segment in the urban areas. The scheme will providehome loan with Central Government subsidy to EWS and LIG households for acquisition of new houseand also for construction of house for those who do not own a house in their name or in the nameof their spouse or any dependent child. The scheme also covers such beneficiaries who own landin an urban area but do not have a pucca house.

These measures taken by the Government will go a long way in revitalizing housing and urbaninfrastructure sector and the economy as well.

3. Emerging Issues and Challenges

Housing and infrastructure development is critically important to achieve and sustain the high growthrate, which the Indian economy has witnessed during the last few years. It is imperative to layemphasis on earmarking land and built space for economically weaker sections and lower incomegroups in new housing projects. There is also a need for development of harmonious cities for asustainable habitat by strengthening complementarity between towns/cities and villages.

Urban areas are under enormous pressure to provide its citizens a decent living condition where allhave adequate shelter with basic services such as clean water, electricity, proper sanitation, healthcare facilities etc. A major challenge is to minimize burgeoning poverty in urban areas and improvepoor's access to basic facilities. The provision of better housing and basic infrastructure are criticalfor the achievement of harmonious urbanization.

With enabling environment emerging out of the government policies, your Company is determinedto continue and consolidate its operations in the field of housing and infrastructure with particularemphasis on meeting the housing needs of the weaker sections of the society; and also the citylevel core infrastructure facilities towards improving the every day quality of life of the citizensat large.

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4. Financial Performance

It gives me immense pleasure to report that despite the upheavals faced by the economy during theyear, the profitability of your Company continued to show an upward trend without compromising themotto of "profitability with social justice". The gross income of your Company increased to Rs. 2713.18crore during the year as against Rs. 2610.19 crore in the previous year. The Profit before tax amountedto Rs. 656.50 crore as against Rs 558.10 crore in the previous year representing an increase of17.63%. Your Company has achieved a Profit after tax of Rs. 400.99 crore during the year as againstRs. 373.73 crore in the previous year. Your Directors are happy to report that this is the highest levelof profit after tax, recorded by HUDCO ever.

You will be glad to note that the Board of Directors of your Company has recommended the paymentof final dividend of Rs. 45.24 crore for the year ended 31st March, 2009.

5. Credit Rating

Your Directors are pleased to report that HUDCO's National long-term credit rating has been upgradedfrom `AA(ind)' to `AA+(ind)' by M/s Fitch Ratings India Private Limited. In addition, M/s CARE Ratingshave upgraded the rating of unsecured long term Bonds Programme of HUDCO from 'AA' to 'AA+'.Further, M/s Brickwork Ratings India Pvt. Ltd. have awarded the rating of 'BWR AAA' to HUDCO'slong-term non-convertible debentures/bonds. This is the highest ever rating assigned to HUDCO sinceinception on stand-alone basis. These upgradations and ratings will benefit your Company in accessingresources at a lower cost.

6. Fostering the Nation’s dream of ‘Shelter for All’

By the Eleventh Five Year Plan, the total housing requirement in India is estimated to be at 26.53million, out of which a significant proportion pertains to the EWS and LIG categories. The requirementof funds for EWS and LIG housing covering new pucca, semi-pucca housing, renovation, extensionand de-congestion is estimated to be significantly high. Your Company is the principal National levelagency supporting this sector and its role will thus continue to be significant in future. During the year2008-09, your Company has sanctioned EWS and LIG dwelling units aggregating to about 91% ofthe total housing units sanctioned. A total loan amount of Rs. 1732.74 crore was sanctioned and anamount of Rs. 841 crore was released for housing schemes during the year.

7. Thrust on Infrastructure Development

Your Company is committed towards providing and establishing adequate and sustainable infrastructurein the country. A total of 103 schemes were sanctioned during the year with a financial assistanceof Rs. 13021.41 crore under various sectors like Water Supply, Sewerage/Drainage, Solid WasteManagement, Power, Social Infrastructure, Commercial Infrastructure, Transport and Health Sectors.An amount of Rs. 3179 crore has been released for urban infrastructure projects during the year.

8. HUDCO’s role in Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

The JNNURM programme is in its fifth year of implementation. HUDCO is one of the appraisingagencies for the projects received under BSUP (Basic Services to the Urban Poor) and the onlyappraising agency for IHSDP (Integrated Housing & Slum Development Programme) projectsthroughout the country.

Your Company's contribution both in the number of projects sanctioned and the quality services hasbeen impressive, with the implementation progressing ahead. Cumulatively, 293 projects under BSUPwith a project cost of Rs. 16761.59 crore and 803 projects under IHSDP with a project cost ofRs. 8039.78 crore have been appraised by HUDCO and sanctioned by the Ministry of Housing andUrban Poverty Alleviation (MoHUPA). Your Company's contribution in BSUP & IHSDP projects underJNNURM amounts to 74% of the total project cost of Rs. 33,652.26 crore sanctioned across the countryby the Ministry of Housing & Urban Poverty Alleviation.


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9. Compliance with Corporate Governance norms

HUDCO's philosophy on Corporate Governance stems from its belief that timely disclosures,transparent accounting policies, and a strong and independent Board go a long way in maximizingcorporate value. Sound Corporate Governance practices and ethical business conduct remain at thecore of HUDCO's value system and has always been the integral part of its philosophy.

A Certificate from the Statutory Auditors regarding the compliance of the Corporate Governance normshas been made part of the Director's Report.

10. Acknowledgements

On behalf of the Board of Directors, I express my gratitude for the invaluable guidance and continuedco-operation and support, extended by the Ministry of Housing and Urban Poverty Alleviation, Ministryof Urban Development, Ministry of Rural Development, Ministry of Finance and Ministry of ExternalAffairs; the Planning Commission, Reserve Bank of India (RBI), National Housing Bank (NHB),Comptroller and Auditor General, Statutory Auditors, Bankers, and other Government Departments.I deeply appreciate the continued support provided by the International Financial Institutions such asKreditanstalt fur Wideraufbau (KfW), Japan Bank of International Cooperation (JBIC), AsianDevelopment Bank (ADB), USAID, etc.

I am grateful to the various State Governments, Housing Boards, Development Authorities, Municipal/Local Bodies, etc. for their support and confidence reposed in your Company. I am also thankful tothe debenture/bond holders, depositors and other investors for their patronage and unstinted supportto the various instruments issued by HUDCO. I extend my thanks to the valuable clients of HUDCONiwas, with whom HUDCO has nurtured close and mutually beneficial relationships. I would like toconclude by commending the hard work and efforts put in by all the members of HUDCO family,towards achievement of the all-round growth of the Company.

Place : New Delhi KL DhingraDate : 24th August, 2009 Chairman and Managing Director

Note : This does not purport to be a record of the proceeding of the 39th AGM of the Company.

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DIRECTORS’ REPORT

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39TH DIRECTORS’ REPORTTo The Esteemed MembersHousing and Urban Development Corporation Ltd.

Your Directors take pleasure in presenting the Thirty-Ninth Annual Report on the business, operationsand achievements of Housing and Urban Development Corporation Limited (HUDCO), together withAudited Accounts for the financial year ended March 31st, 2009.

HUDCO - PIONEERING THE DEVELOPMENT OF HUMAN SETTLEMENTS IN THE NATION

India is globalizing rapidly and is emerging as one of the fastest growing economies. Investmentsin the Human Settlements' development have a multiplier effect on income and employment generationin the economy. Your Company is actively supporting the development of Human Settlements in thenation by adopting an integrated and holistic approach to adequately address issues concerninghousing and infrastructure with a special focus on the needs of Economically Weaker Section (EWS)and Low Income Group (LIG) categories.

India's economic growth with the resultant increasing incomes is speeding up the pace of urbanisation.This has led to quantitative and qualitative shortage of houses & infrastructure in the country. Duringthe Eleventh Five Year Plan, total housing requirement in India is estimated at 26.53 million, out ofwhich major shortage is in EWS and LIG categories. During the year, your Company has sanctionedEWS and LIG dwelling units amounting to about 91% of the total housing units sanctioned. Therequirement of funds for EWS and LIG housing for new pucca, semi-pucca housing, renovation,extension and de-congestion is estimated to be significantly high. Your Company is the principalnational level agency supporting this sector and its role will thus continue to remain critical in future.To provide and establish an adequate and effective infrastructure in the country, sustained efforts arebeing made by your Company through providing financial support for continual development of varioussectors like water supply, sewerage / drainage, solid waste management, social, health, commercial,power, transport etc. Your Company has been the market leader in extending financial assistancefor supporting the housing & urban infrastructure requirements both in urban & rural areas.

HUDCO Financed Project of Rehabilitation of Slums at Bhopal, Madhya Pradesh


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In order to stimulate housing and urban development in the country, the Government of India hasrecently come out with major policy initiatives like National Housing and Habitat Policy (NHHP) 2007,Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Rajiv Gandhi Awas Yojana, InterestSubsidy scheme for Housing the Urban Poor (ISHUP) etc. These measures taken by the Governmentwill go a long way in revitalizing housing and urban infrastructure sector and the economy as well.With enabling environment emerging out of government policies, your Company is determined tocontinue and consolidate its operations in the field of housing and infrastructure with particularemphasis to meeting the housing needs of the weaker sections of the Society, and also the city levelcore infrastructure facilities towards improving the every day quality of life of the citizens at large.

OPERATIONAL ACHIEVEMENTS

Despite the upheavals faced by the economy during the year, the graph of operations of your Companycontinued to show upward trend and it had another year of significant operational achievements.

OPERATIONAL GROWTH OF HUDCO(Rs. in crore)

During the year, your Company has sanctioned 192 schemes for a loan amount of Rs. 14754.30 croreas against Rs. 13500.61 crore in the previous year. Out of the total loan, an amount ofRs. 1732.89 crore was sanctioned for Housing and Rs. 13021.41 crore for Urban Infrastructureschemes. These sanctions cover a wide spectrum of projects viz Housing, Infrastructure, SocialInfrastructure, Energy and Emerging Sectors.

An amount of Rs. 4019 crore was released during the year, which includes Rs. 841 crore for Housingand Rs. 3178 crore for Urban Infrastructure schemes.

HOUSING - A BASIC NEED

Housing is an indispensable need and HUDCO is committed to extend its helping hand to thedevelopment of housing sector in the country.

Loan Sanctions and Releases for Housing

During the year, a total loan amount of Rs. 1732.89 crore was sanctioned and an amount ofRs. 841 crore released for housing schemes, out of which Rs. 41.94 crore was released under HUDCONiwas.

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Social Housing

During the year, your Company has sanctioned 1,14,009 Dwelling Units (DUs), out of which 1,00,000DUs have been sanctioned in rural areas and 14,009 DUs have been sanctioned in urban areas. Outof these, 1,03,553 DUs (approx. 90.8% of total DUs sanctioned), have been sanctioned for EWS /LIG categories.

Sidhu-Kanhu Awas Yojna, one of the major scheme under this category has been sanctioned witha loan assistance of Rs. 350 crore for the construction of one lakh DUs to the Government ofJharkhand. The beneficiaries constitute people living below poverty line primarily in the rural areasof the State, and majority of the beneficiaries belong to SC/ST/OBC/BC categories.

LOAN SANCTIONED FOR VARIOUS PROGRAMMES DURING 2008-2009(Rs. in crore)

Construction of Integrated Welfare Hostel Complexes, Ananthpur, Andhra Pradesh


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Your Company has also sanctioned a loan assistance of Rs.130 crore for construction of 3000 DUsunder EWS category alongwith related infrastructure for SC beneficiaries at various locations inPuducherry and Karaikal regions. The project involves design of layouts, building plans, constructionof housing units, provision of infrastructure services like water supply, roads, sewerage, drainage,street lights, construction of community halls, parks, etc.

SOCIAL ORIENTATION IN HOUSES SANCTIONED DURING 2008-2009(Figures in Percentage)

Construction of Stadium at Calicut, Kerala

Housing for North Eastern Region

During the year, your Company has sanctioned 24 housing schemes with a loan assistance ofRs.130.05 crore in the States of Assam & Nagaland.

URBAN INFRASTRUCTURE - BACKBONE OF THE ECONOMY

Towards fulfilling its strong commitment to provide and establish adequate and effective infrastructurein the country, your Company has sanctioned 103 schemes during the year with a total financialassistance of Rs. 13021.41 crore under various sectors like Water Supply, Sewerage/ Drainage, SolidWaste Management, Power, Social Infrastructure, Commercial Infrastructure, Transport and HealthSectors. Your Company has released Rs. 3178 crore for Urban Infrastructure projects during the year.

Social Infrastructure

During the year, HUDCO has funded 28 schemes under this category with a loan assistance ofRs. 333.42 crore through out the country. These schemes include schools and colleges, hostels,hospitals, Government buildings, sports complexes, etc.

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Among the major schemes, a loan assistance of Rs. 130 crore was sanctioned for construction of212 stadia, one stadia in each block of all the 24 districts of the state of Jharkhand. This will facilitateproviding sports amenities at the grass root level so as to increase the representation of the Statein sports activities at National and International level. Further, a loan assistance of Rs. 27 crore wasalso sanctioned for construction of Industrial Training Institutes for imparting and upgrading skillsamong the youth in the Jharkhand state.

Area Development

During the year, 4 Area Development proposals were approved by HUDCO in the states of MadhyaPradesh, Uttarakhand and Uttar Pradesh with a total loan commitment of Rs. 1299.48 crore.

The Government of Uttar Pradesh proposes to develop a 165 km long Yamuna Expressway betweenGreater Noida and Agra and promote urban development in the areas adjoining the expressway. Theproject is for development of 42,500 hectares of urban area in contiguity with Greater Noida, alongthe 40 km long expressway stretch between Greater Noida and proposed Taj International Airport atJewar. HUDCO has extended its in-principle approval for a part of Phase-1, which covers developmentof 3519 hectares of land.

Water Supply

HUDCO has sanctioned financial assistance to 7 water supply projects with a total loan assistanceof Rs. 627.20 crore. These include six schemes in the State of Andhra Pradesh with a loan assistanceof Rs. 622.20 crore. The projects are for providing safe drinking water in fluoride-affected areas andfor improvement in water supply systems in various habitations of Andhra Pradesh.

INFRASTRUCTURE PROJECTS SECTOR-WISE (CUMULATIVE)PERFORMANCE AS ON 31-03-2009

(Rs. in crore)

Safe Drinking Water Supply Project at Ananthapur District, Andhra Pradesh


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A programme loan of Rs. 490 crore has been sanctioned to the state of Punjab for viability gap fundingunder JNNURM schemes covering various components such as Water Supply, Sewerage, Solid WasteManagement, Transportation, etc. in various towns of Punjab.

Sewerage/Drainage Sector

An appropriate sewerage system is essential for improving public health and quality of life in urbanareas. During the year, five schemes have been sanctioned to develop sewerage system in the statesof Andhra Pradesh, Goa, Punjab and Tamil Nadu with a loan assistance of Rs. 1704.45 crore.

Transport Sector

During the year, HUDCO has sanctioned 9 road and transportation proposals in the States/UT ofAndhra Pradesh, Kerala, Meghalaya, Nagaland, Tamil Nadu, Uttar Pradesh and Puducherry for loanassistance of Rs. 721.84 crore. The major schemes include development of Karaikal Port Phase-2A,the 6 Laning of Chennai-TADA Road Section of NH-5 and purchase of 850 buses by UPSRTC.

Power Sector

During the year, HUDCO has sanctioned 15 projects with a loan amount of Rs. 4582.85 crore. Theimportant power projects funded by HUDCO include a 2400 MW coal based thermal power plant inJharsuguda and a 1050 MW coal based thermal power plant at Kamalanga, Dhenkanal in the stateof Orissa, a project for improvement of transmission and distribution network and a 1080 MW thermalpower plant in Tuticorin in the state of Tamil Nadu and a project for conversion of Low VoltageDistribution System (LVDS) to High Voltage Distribution System (HVDS) alongwith execution of 125Nos. 33/11 KV stations in the state of Andhra Pradesh.

Emerging Sectors

During the year, under this portfolio, HUDCO has sanctioned a total loan amount of Rs. 2175 crorefor 7 schemes, out of which 5 schemes were in the Industrial sector and 2 schemes in the IT andother sectors. The major schemes sanctioned include a petro-chemical complex in Gujarat, agrassroots refinery-cum-petrochemicals complex in Orissa, Cement plants in Rajasthan and Karnataka,Greenfield Integrated steel plant in Andhra Pradesh, development of Industrial Estate in Uttarakhandand setting up of SEZs in Karnataka and Gujarat.

Commercial Infrastructure

During the year, HUDCO has provided financial assistance to 28 commercial schemes with a loanassistance of Rs. 607.18 crore. These projects include malls, multiplexes, hotels etc. in various citiesof the country.

Construction of Solid Waste Management Plant at Brahmapuram, Kochi, Kerala

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JNNURM Project at Surat, Gujarat

Infrastructure Development in North Eastern Region

During the year, HUDCO has sanctioned 19 Urban Infrastructure projects with a total loan assistanceof Rs. 62.89 crore in the states of Meghalaya, Nagaland and Tripura. These projects includeconstruction of various Government office buildings, improvement of roads and bridges and ditchfencing at Intanki National Park, etc.

JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION (JNNURM)

The Government of India launched JNNURM in December 2005 to encourage creation of financiallysustainable inclusive cities. The duration of this mission is seven years from 2005-06 to 2011-12. Itcomprises of two Sub-Missions, one for Basic Services to the Urban Poor (BSUP) and the other forUrban Infrastructure and Governance (UIG) to be implemented in 65 identified mission cities acrossthe country. For the remaining towns and cities, two other programmes namely Integrated Housing& Slum Development Programme (IHSDP) and Urban Infrastructure Development Scheme for Smalland Medium Towns (UIDSSMT) have been launched simultaneously. The BSUP and IHSDP projectsunder JNNURM are dealt by the Ministry of Housing and Urban Poverty Alleviation and HUDCO isone of the Appraising Agencies for these projects.

The JNNURM programme is in its fifth year of implementation. Some states like Gujarat, Maharashtra,Andhra Pradesh, West Bengal, Tamil Nadu etc, have made remarkable progress in implementation.HUDCO's contribution both in the number of projects sanctioned and the quality of services isimpressive, with the implementation progressing ahead.

Till 31.03.2009, 293 projects under BSUP with a project cost of Rs. 16761.59 crore and 803 projectsunder IHSDP with a project cost of Rs. 8039.78 crore have been appraised by HUDCO and sanctionedby the Ministry. HUDCO has been appraising these projects, disseminating information through trainingworkshops in different regions / states in the country and providing technical and design consultancyservices for these projects. HUDCO has made commendable efforts to generate projects through liaisonand project formulation assistance in the states of Uttar Pradesh and Bihar and especially in the lessperforming states like Arunachal Pradesh, Chattisgarh, Jharkhand, Meghalaya, Orissa and Tripura.HUDCO has also published a Toolkit for preparation of Detailed Project Report for State Government /Urban Local Bodies / Consultants associated with formulation of these projects. HUDCO's contributionin BSUP & IHSDP projects under JNNURM amounts to approximately 74% of the total project cost ofRs. 33652.29 crore sanctioned across the country by the Ministry of Housing & Urban Poverty Alleviation.


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BUILDING CENTRE MOVEMENT

HUDCO continued its efforts for strengthening the Building Centre Movement all over the Country bypromoting building materials and technologies in the construction sector which are environmentfriendly, ecologically appropriate, energy efficient, functionally durable, aesthetically pleasing and yetcost-effective.

The National network covers 655 Building Centres (Urban + Rural). A total grant of Rs. 33.65 crorehas been sanctioned so far, out of which Rs. 23.96 crore has already been released. These BuildingCentres have together taken up construction activity to the tune of Rs.1481 crore, producedbuilding components worth Rs. 376.17 crore and imparted training to over 3.21 lakhs constructionworkers.

MODEL VILLAGES/MODEL BASTI SCHEME

HUDCO continued extending support to the Model Villages/Model Basti Scheme. The selected villages/slums, which would predominantly cover low-income population and would be provided with a grantassistance of upto Rs. 35 lac by HUDCO out of interest accrued from KfW IV and V funds. Thematching contribution is to be met by the state governments/ Union territories/ implementing agencies/beneficiaries by dovetailing other resources of Central/ State Government schemes with a convergenceapproach to provide community buildings and infrastructure facilities.

HUDCO has so far sanctioned 116 Model Village / Model Basti Schemes for a total grant assistanceof Rs. 3891.83 lac, out of which an amount of Rs. 2922.31 lac has been released. Out of these, 40schemes have already been completed and 9 schemes are at completion stage.

IMPLEMENTATION OF COMMUNITY TOILETS AND SANITATION

(Sanjha Swachhata Abhiyan)

The programme is for funding of construction of community toilets in Schools / Institutes / Hospitals/ Busy Market Places / Bus Stands / Railway Stations / Slums etc. Under the scheme, HUDCO grantsassistance to the State Government nominated agencies, Corporate Sector Agencies, NGOs, CBOs,Charitable Trusts / Institutions.

HUDCO Financed Project of Common Effluent Treatment Plant at Karaipudur, Thiruppur, Tamilnadu

24

So far 22 schemes (net) have been sanctioned with HUDCO grant assistance of Rs. 483 lac anda loan of Rs. 50.33 lac has been sanctioned in 4 schemes for construction of 2464 WC / Bath. Tilldate, an amount of Rs. 24.33 lac as HUDCO loan & Rs. 189.90 lac as HUDCO grant have beenreleased to the implementing agencies. During the year, HUDCO grant assistance of Rs. 25.50 lacwas released.

CONSULTANCY SERVICES

Over a period of time, HUDCO has established its own niche in the consultancy market, after executinga number of landmark projects with due focus on commercial consultancy. During the year, significantcontributions have been made in the form of conceiving and developing the designs for various projectsranging from office building, interiors, institutional buildings, pilgrim centre, office interiors, housing,planning & designs, etc. During the year, HUDCO's Consultancy Wing provided consultancy servicesworth Rs. 11.89 crore and the consultancy services provided by regional consultancy setups furtherenhanced the total fee based income by Rs. 1.22 crore.

URBAN AND REGIONAL PLANNING

During the year, significant initiatives were taken in the area of Urban & Regional Planning. Theongoing works relating to preparation of Master Plans for 9 cities have been finalised. Further, HUDCOhas received an assignment for undertaking City Development Plans for 8 towns. In addition, anassignment for undertaking master plan preparation work for further 20 towns has been received, whichwould be taken up in phases by HUDCO.

HUDCO NIWAS - INDIVIDUAL HOUSING LOAN SCHEME

HUDCO Niwas has a strong network of 29 offices throughout the country and offers customer friendlyindividual housing loans to Resident Indians / Non-Resident Indians under Fixed and Floating rateof interest with value added benefits for various purposes like construction/purchase of house/flat/plot,extension or improvement of existing house or flat, registration of existing house or flat, refinancingof existing housing loans, loan against residential property. HUDCO Niwas also offers Bulk loan tothe State Governments / Para Statals of the State Government for giving House Building Advanceto their employees and Bulk loans to other Housing Finance Companies.

Consultancy work at Tsunami Rehabilitation scheme in Nagapattinam, Tamilnadu


25

HUDCO Niwas has disbursed loans amounting to Rs. 3863.65 crore for 3,27,287 applications/beneficiaries so far. Out of this, retail loan amounting to Rs. 846.97 crore for 30046 applications wasdisbursed. During the year, HUDCO Niwas has disbursed retail loan amounting to Rs. 41.94 crore.

NEW INITIATIVES

Interest Subsidy Scheme For Housing the Urban Poor

The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has designed an Interest SubsidySchemes for Housing the Urban Poor (ISHUP) as an additional instrument for addressing the housingneeds of the EWS/LIG segments in urban areas. HUDCO is one of the Nodal agencies for the scheme.

The economic parameters of EWS is defined as households having an average monthly income uptoRs. 3,300 and the economic parameter of LIG is defined as households having an average monthlyincome between Rs. 3,301 upto Rs. 7,300. The scheme will provide a housing loan, with subsidizedinterest, for a period of 15-20 years with a maximum limit of Rs. 1 lac to an EWS individual for ahouse of at least 25 sq. mts. Further, for the LIG household, the maximum loan amount admissiblewill be Rs. 1.60 lac for a house of at least 40 sq. mts., however the subsidy in rate of interest (ROI)will be permissible only upto loan amount of Rs. 1 lac. HUDCO is poised to play an active role inthe scheme and it would give a fillip to the housing operation of HUDCO.

FUTURE OUTLOOK

During the year, HUDCO has been able to rope in Navratna CPSEs and has sanctioned loans fortheir projects viz. IOCL (Oil Refinery at Paradip, Orissa) and SPV of ONGC (Petrochemical SEZ atDahej, Gujarat). It is envisaged that in the coming years, more such companies would avail HUDCO’sfinancial assistance.

HUMAN SETTLEMENT MANAGEMENT INSTITUTE (HSMI)

HSMI, the Research & Training Division of HUDCO functions with a core group of qualified andexperienced professionals from various disciplines, providing capacity building to the professionalsengaged in the Housing & Urban Development Sector including HUDCO's borrowing agencies, localbodies, NGOs, private sector Housing Finance Institutions etc. It is the nodal institute of the Ministry

Dr. PK Mohanty, JS (JNNURM) & Mission Director (BSUP) and Director HUDCOaddressing on the occsion of 39th Annual Day Celebration of HUDCO

26

of Housing & Urban Poverty Alleviation, to coordinate various training and documentation activitiesunder IEC (Information, Education & Communication) component of SJSRY.

During the period, HSMI has organized 19 training programmes for professionals from Urban LocalGovernments/Local Bodies and Urban Sector Organisations under Jawaharlal Nehru National UrbanRenewal Mission (JNNURM) and Swarna Jayanti Sahakari Rojgar Yojna (SJSRY). A NationalWorkshop on "Inclusive Access to Financial Services for the Urban Poor" was organized at Delhi.HSMI also organized various in-house Training Programmes for HUDCO employees during the period.HSMI, in association with NAREDCO, had organized three Training Programmes for the Real EstateProfessionals. HSMI had also organized one 8-Week International Training Programme on "ManagingCities in Developing Countries - Environment & Infrastructure Framework at New Delhi" for participantsfrom other countries sponsored by the Ministry of External Affairs, Government of India. Professionalsfrom 15 countries took part in this Training Programme. During the year, the total man-days achievedthrough training programmes for different agencies/professionals was 3468, and 3681 man-days inrespect of in-house training programmes for HUDCO employees.

HSMI continued to enhance its professional networking with various national and international agenciesto exchange experience and expertise on Urban Development issues. HSMI also carried outnetworking with various stakeholders within India covering state level institutions under the networkingof HUDCO Chairs.

The Research and Training activities of HUDCO Chair institutions have been fairly wide and covera range of issues which have been of strategic importance. These institutions have carried out activitiesthrough intensive networking at state, national and international level and they have provided a platformfor HUDCO and Government of India for conducting capacity building exercise in a decentralizedmanner and establish contacts with a range of stakeholders at state and local level.

MEMORANDUM OF UNDERSTANDING (MoU)

MoU between HUDCO and Ministry of Housing and Urban Poverty Alleviation

HUDCO and the Ministry of Housing and Urban Poverty Alleviation have signed the Memorandumof Understanding (MoU) for the year 2009-10. The MoU envisages significant growth in the operationsof HUDCO in the Housing and Urban Development sector with a sanction of about Rs.14,784 croreand release of Rs. 6820 crore for the sector during the year. The MoU identifies `project implementationof Government's new projects' such as Interest Subsidy for Housing the Urban Poor (ISHUP),affordable housing under partnership and JNNURM along with fee based consultancy services as amajor area for expansion.

CREDIT RATING

HUDCO's long-term credit rating has been upgraded to ‘AA+ (ind)’ by M/s Fitch Ratings India PrivateLimited. Your Directors are also happy to report that M/s CARE Ratings have upgraded the ratingof unsecured long term Bonds Programme of HUDCO from AA to AA+. Further, M/s Brickwork Ratingshave awarded AAA rating to HUDCO’s long term non-convertible debentures/bonds. This is highestever rating assigned to HUDCO since inception on stand alone basis. These upgradations and ratingswill benefit your Company in accessing resources at a lower cost.

VIGILANCE FUNCTION IN HUDCO

The Corporate Vigilance Department continued to work on improving systems and procedures in theworking of the Company. In line with CVC's directions, several steps were initiated for putting in placee-governance by the concerned departments of the Company.

Inspection of Regional Offices at Bhopal, Patna, Bangalore, Ranchi, Kolkata, Ahmedabad,Thiruvananthapuram and Chennai was carried out during the year and employees were detailed aboutpreventive aspects of Vigilance. Vigilance Awareness Week was observed by the Company from3rd November to 7th November, 2008 at the Head Office as well as at all the Regional Offices.

OFFICIAL LANGUAGE IMPLEMENTATION

HUDCO has been making concerted efforts in implementing the Official Language Policy ofGovernment of India in all its offices and encouraging the employees at all levels to achieve the targets


27

set in the Annual Official Language Programme issued by the Government of India. During the year,various Hindi workshops and meetings of the Official Language Implementation Committee were held.The month of September, 2008 was celebrated as Rajbhasha Month at Corporate Office as well asat its Regional offices, during which, in addition to promoting the use of Hindi in official work, variouscompetitions were organized. On the occasion of Vishwa Hindi Diwas, Hindi workshop and acompetition was organized on 10th January, 2009. Official Language inspections were conducted bythe Company at its Guwahati, Ranchi, Chandigarh, Chennai, Mumbai, NCR, Jaipur, Dehradun andLucknow Regional Offices to ascertain implementation of Official Language Policy. During the year,Dehradun and Lucknow Regional Offices were inspected by the Parliamentary Committee on OfficialLanguage and the progressive use of Hindi in these offices was found satisfactory. In recognition ofour efforts towards progressive use of Hindi in HUDCO, the Regional Offices at Bhopal,Thiruvananthapuram & Dehradun were awarded by Town Official Language Implementation Committee,NARAKAS.

FINANCIAL PERFORMANCE

Your Directors are glad to report that your Company has achieved a Gross Income ofRs. 2713.18 crore during the year as against Rs. 2610.19 crore in the previous year. The Profit beforeTax and after prior period adjustment during the year has increased to Rs. 656.50 crore as againstRs. 558.10 crore in the previous year. The Net Profit stood at Rs. 400.99 crore during the year, asagainst Rs. 373.73 crore in the previous year. Your Directors are happy to report that this is the highestprofit after tax recorded by HUDCO ever. The total Reserves and Surplus stood at Rs. 2665.96 croreas on 31.03.2009.

DIVIDEND

Your Directors are pleased to recommend a final dividend of Rs. 45.24 crore for the financial yearended 31.03.2009.

STRESSED ASSETS MANAGEMENT

Your Company is vigorously following up with the agencies and also pursuing legal actions for therecovery of defaulted amount. Through perisitant efforts, the Net NPA has come down to 4.87% duringthe year as compared to 5.72% in the previous year. Your Company has also created adequateadditional provision as a matter of caution.

RISK MANAGEMENT

Your Company has an Asset Liability Management Committee, which meets periodically to assessand take actions for meeting various risks like interest rate risk, liquidity mismatch risk etc. A RiskManagement Cell has also been established.

NET WORTH AND DEBT EQUITY RATIO

The net worth of the Company stood at Rs. 4647.46 crore as on 31.03.2009 as against the net worthof Rs. 4162.68 crore on 31.03.2008. The borrowings from all sources stood at Rs. 19249.32 croreas on 31.03.2009. The Debt Equity Ratio of the Company as on 31.03.2009 works out to 4.14:1.

RESOURCE MOBILISATION

During the year, your Company mobilized total resources amounting to Rs. 3799.16 crore (excludingRs. 450 crore of Bank loans raised and repaid during the year) through banking sector loans andpublic deposits. Although the financial year 2008-09 started with higher interest rates regime with banksincreasing their PLRs, the situation improved with excess liquidity available in the banking systemin the last quarter of the year resulting in downfall in the short term as well as long-term interest rates.

COST REDUCTION MEASURES

Efforts to identify costly loans/liabilities, wherein the interest rates could be reset or the outstandingloan could be foreclosed, continued during the year. High cost loans/bonds amounting toRs. 291.67 crore were prepaid during the year. It would be imperative to note that by virtue of term

28

loan agreement executed with the respective lender(s), no prepayment penalty in respect of loansforeclosed have been paid. Pursuant to the Company's request, interest rate was reset downwardsin respect of Rs. 1850 crore of loans availed from the banking sector. All these measures, enabledthe Company to partially offset the overall increase in cost of borrowings during the year.

CORPORATE GOVERNANCE

Your Company imparts utmost importance to good Corporate Governance and as per the requiredprovisions, a Corporate Governance Report and Auditors' Certificate regarding compliance ofCorporate Governance norms, forms part of the Directors' Report.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

As per the required provisions, a Management Discussion and Analysis Report, forms part of theDirectors' Report.

DECLARATION OF CODE OF CONDUCT

The Board of Directors of your Company has laid down HUDCO's Code of Conduct and Ethics forall Board Members and senior management personnel of the Company and the same has been placedon the website as well. The Board Members and Senior Management Personnel have affirmedcompliance with the Code.

AUDIT REVIEW

Statutory Auditors' report to the members and comments of the Board of Directors thereon, are self-explanatory and form part of this report as required u/s 217(3) of the Companies Act, 1956.

PARTICULARS OF EMPLOYEES

As required under Section 217(2A) of the Companies Act, 1956, the details of the employees whowere employed throughout the year and were in receipt of remuneration for that financial year inaggregate of not less than Rs. 24,00,000/- or employed for a part of the year and were in receiptof remuneration for that part of financial year in the aggregate of not less than Rs. 2,00,000/- permonth, is as follows:-

Sl. Name Age (as Desig- Nature of Remune- Qualifi- Date of Last Date ofNo. on 31st nation Employ- ration cations Commen- Employment Retire-

March ment Recieved cement ment/2009) of Employ Resig-

-ment nation

1. Smt. Bindu 58.03 CP(BMT) Regular 1965289.00 B.Arch 27.03.82 NDMC 31.12.08Jeswani

2. Sh. S Gera 53.11 Dy.Chief Regular 961183.00 AMIE 10.02.83 NDMC 15.07.08(P) (Civil)

3. Sh. BL 58.07 AC(OL) Regular 1071133.00 MA 01.01.82 FCI 31.08.08Sharma (Hindi)

4. Sh. O Mathu 58.08 SO Regular 672126.00 Pre 19.09.84 Navy 31.05.08Kutty Degree

Interpreter

5. Sh. MK Gupta 51.08 CS Regular 468245.00 BA,M.Com, 23.07.97 - 14.05.08ACS, Dip.

(CL & Sect.Pract.)

6. Sh. AD 58.11 AFO Regular 555032.00 Hr.Sec. 09.08.72 Nil 30.04.08Bhagat


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LISTING OF SECURITIES

The Stock Exchanges, wherein your Company bonds are listed as on 31.03.2009, are as follows:-

1. National Stock Exchange of India Ltd. (NSE)2. Delhi Stock Exchange Association Ltd. (DSE)

TRANSFER TO/FROM RESERVE AND SURPLUS

During the financial year, your Company has transferred Rs. 175 crore to Special Reserve,Rs. 6.20 crore to Welfare Reserve, Rs. 166.57 crore to General Reserve and Rs. 125.47 crore hasbeen carried to balance sheet. Further, an amount of Rs. 0.28 crore has been transferred to WelfareReserve from Profit and Loss Account and Rs. 125.47 crore has been transferred from Surplus Accountto Profit and Loss Account.

UNCLAIMED DEPOSITS

As mandated under the Housing Finance Companies (NHB) Directions, 2001, it is informed that thedeposits matured but not claimed as on 31st March, 2009 amounted to Rs. 11.63 crore against 399FDRs and interest thereof was of Rs. 2.63 crore. As per the procedure, regular reminder letters aresent to deposit holders of unclaimed/unpaid deposits for claiming their maturity payment in time.

CONSERVATION OF ENERGY

Since HUDCO is not a manufacturing Company and does not own any manufacturing unit, thedisclosure of particulars regarding Conservation of Energy are not applicable, however efforts are madeto use energy efficient equipments in the office to ensure conservation of energy.

TECHNOLOGICAL ABSORPTION

HUDCO has entered into an MoU with IIT Delhi for synergising and spreading Bamboo Technology.It envisages setting up National Resource Facility on Bamboo Technology (NRFBT) to promote ruralindustrialization with focus on bamboo products by upgrading artisan skills, developing improvedprocesses, technology and machinery through scientific, technological and design inputs.

FOREIGN EXCHANGE EARNINGS AND OUTGO

During the year, the inflow of Foreign Exchange amounted to Rs. 8.35 crore and outflow of ForeignExchange was of Rs. 12.84 crore.

COMPOSITION OF AUDIT COMMITTEE

Your Company has an Audit Committee in compliance to the provisions of Section 292A of theCompanies Act, 1956 and DPE guidelines and it is dealt in detail in the Corporate Governance sectionlater in the Annual Report.

BUY-BACK OF SHARES

The President of India holds 100% shares of HUDCO and during the financial year 2008-09, no offerhas been made for buy-back of shares. In view of the same, provisions of Section 77A and 217(2B)of the Companies Act, 1956 are not required to be complied and the time limit for compliance forbuy back of shares is, therefore, not required.

NAME AND ADDRESS OF DEBENTURE-TRUSTEES

1 Axis Bank Ltd. Maker Tower, F 13th Floor, Cuffe Parade, Colaba, Mumbai-400005

2 IL & FS Trust Company Limited, Plot C-22, G block, Bandra Kurla Complex, Bandra East,Mumbai-400051

3 IDBI Trusteeship Services Limited, Regd. Office: Asian Building, Ground Floor, 17, R KamaniMarg, Ballard Estate, Mumbai-400001.

4 United Bank of India, North India Region, Block-P, 9/90, J C Das Building, Connaught Place,New Delhi-110001

5 Punjab National Bank, Sansad Marg, New Delhi - 110001

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EMPLOYEE STOCK OPTION SCHEME (ESOS)

HUDCO is a Government Company and all the shares are being held by the President of India. Duringthe year, no Employee Stock Option Scheme has been offered to the employees by the Company.

REDEMPTION OF DEBENTURES/BONDS DURING THE YEAR

All the debentures/bonds, which were due for redemption during the year, were redeemed in that periodand the details are given below:

Series Interest Redemption Redemption Maturity/rate p.a. Amount date Option

(Rs. in crore) exercised

XI B 13.75% 35.00 10.08.2008 Maturity

XI D 13.75% 52.00 01.09.2008 Maturity

XII B 10.25% 35.00 08.01.2009 Maturity

XIII C 12.5% 20.00 26.03.2009 Maturity

SPS-I 11.55% 1.75 10.06.2008 Maturity

SPS-II 12.5% 3.93 15.06.2008 Maturity

SPS-I 11.55% 1.90 10.12.2008 Maturity

SPS-II 12.5% 4.05 15.12.2008 Maturity

XXB 10.65% 26.8 20.07.2008 Maturity

HGPSTF-1B 8.75% 16.10 06.03.2009 Maturity

XXIIIB 9.60% 8.70 27.03.2009 Maturity

XXIVB 9.60% 58.35 28.03.2009 Maturity

HGPSTF-2B 8.40% 5.65 28.03.2009 Maturity

XXXIIIA 6.70% 373.5 29.08.2008 Put option

BOARD OF DIRECTORS AND CHANGE IN COMPOSITION OF BOARD

During the year, 17 Board Meetings were held to transact the business of the Company. The AuditCommittee met five times during the year. The Government of India appointed Dr. PK Mohanty,JS (JNNURM) & Mission Director (BSUP), MoHUPA, as Part-Time Official Director on the Board ofHUDCO w.e.f. 2nd January, 2009 in place of Shri SK Singh. Further, the Government of India hasalso reappointed Shri Rajpal Singh Solanki as Part-Time Non-Official Director on the Board of HUDCOw.e.f 7th December, 2008. Further, Shri SK Tripathi Director (Corporate Planning), HUDCO, wasassociated with HUDCO till 11.06.2009.

Your Directors extend a warm welcome to Dr. PK Mohanty for being part of our esteemed organizationand congratulate Shri Rajpal Singh Solanki on his reappointment as Part-Time Non-Official Directoron the Board of HUDCO. Your Directors also place on record its appreciation for the valuablecontribution made by Shri SK Singh during his tenure, from 06.06.2007 to 02.01.2009 and Shri SKTripathi during his tenure from 14.11.2006 to 11.06.2009 as Directors, HUDCO.

Dr. Radha Binod Barman has been appointed as Part-Time Non-Official Director on the Board of HUDCO w.e.f. 31st July 2009by the Government of India.


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DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 217 (2AA) of the Companies (Amendment) Act, 2000, the Directors of yourCompany states hereunder:

(i) that in the preparation of the annual accounts, the applicable accounting standards have beenfollowed, alongwith proper explanation relating to material departures, if any;

(ii) that the Directors have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent, so as to give a true and fair viewof the state of affairs of the company at the end of the financial year and of the profit and lossof the company for the financial year 2008-2009;

(iii) that the Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding the assets ofthe company and for preventing and detecting fraud and other irregularities; and

(iv) that the Directors have prepared the annual accounts on a going concern basis.

APPRECIATION AND GRATITUDE

Your Directors place on record their gratitude for the invaluable guidance and continued co-operationand support, extended by Ministries of Housing and Urban Poverty Alleviation, Urban Development,Rural Development, Finance, External Affairs, the Planning Commission, Reserve Bank of India (RBI),National Housing Bank (NHB), Bankers, Comptroller and Auditor General, Statutory Auditors and otherGovernment Departments. Your Directors also appreciate the continued support provided by theInternational Finance Institutions such as Kreditanstalt fur Wideraufbau (KfW), Japan Bank ofInternational Cooperation (JBIC), Asian Development Bank (ADB) & USAID, etc.

Your Directors are grateful to the various State Governments, Housing Boards, DevelopmentAuthorities, Municipal/Local Bodies, etc. for their support and confidence reposed in your Company.Your Directors are also thankful to the debenture/bond holders, depositors and other investors for theirpatronage and unstinted support to the various instruments issued by HUDCO. The Directors alsothank the valuable clients of HUDCO Niwas, with whom HUDCO has nurtured close and mutuallybeneficial relationships.

Your Directors also take this opportunity to acknowledge and appreciate the hard work and effortsput in by all the members of HUDCO family, towards achievement of the all-round growth of thecompany.

For and on behalf of the Board of Directors

Place : New Delhi KL DhingraDate : 7th July, 2009 Chairman and Managing Director

Note: All the mathematical figures have been rounded off to the nearest decimal place.

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MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENTS

The year 2008-09 witnessed the global economic recession which has taken its toll on all the advancedeconomies. Indian economy was also affected resulting into its economic activities slowing down.However, despite the adverse situation prevailing in the world, the Indian economy has sustained andis expected to come out of the situation faster. Indian markets have shown admirable resiliencenotwithstanding the severity and multiplicity of the global events. Due to proactive approach towardsreforms by the Government of India, the Indian economy has shown positive sign of revival.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched by the Government ofIndia, aims at improving urban services levels in a financially sustainable manner in 63 identified cities.The Mission envisages central assistance of Rs. 50,000 crore over a 7 year period beginning from2005-06. A corresponding amount of Rs. 50,000 crore would come from the states. The admissibleprojects under the Mission include urban renewal, water supply, sewerage/solid waste management,urban transport, etc. The National Habitat and Housing Policy (NHHP) 2007 has been formulated bythe Government of India to address issues of sustainable habitat and infrastructure development andto provide a minimum level of basic services and amenities to all. Further a new scheme, Rajiv GandhiAwas Yojana, has been launched by the Government of India with the ambitious target of makingIndia slum free in five years. This scheme has an initial budget of Rs. 5000 crore and aims to construct10 lakh affordable houses in the Country. It envisages extending financial support under JNNURMto states that are willing to assign property rights to people living in slums. This will dovetail existingschemes for affordable housing. All these policy initiatives will boost the housing and urbaninfrastructure development and the economy as well.

Kumari Selja, Hon’ble Minister, Ministry of Housing and Urban Poverty Alleviation,Government of India, taking Review Meeting of HUDCO


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STRENGTH AND WEAKNESS

HUDCO is an ISO 9001:2000 certified company and is committed to provide better quality servicesto its stakeholders. HUDCO has gained extensive experience and expertise in the development ofintegrated townships including roads and highways, power, water supply, sanitation and solid wastemanagement and also provides advisory and consultancy services in these sectors. The richexperience and expertise of HUDCO over the years in the sector is its primary strength.

OPPORTUNITIES, THREATS, RISKS AND CONCERN

The burgeoning population growth in India with spurt in urbanisation has resulted in shortage of housing& infrastructure in the country. The total investment requirement for meeting the housing requirementwould be of the order of Rs. 3,61,318 crore consisting of Rs. 1,47,195 crore required for mitigatinghousing shortage at the beginning of the Eleventh Five Year Plan and Rs. 2,14,123 crore for newadditions to be made (including pucca, upgradation of semi-pucca, and kutcha housing units) duringthe Eleventh Plan period. It connotes that vast opportunities are available in the housing andinfrastructure sector. Further, various tax incentives provided by the Government of India shall upholdthe future prospects of the housing and infrastructure development in the nation.

Due to long gestation period and large capital outlay, the risk level in housing and infrastructureprojects is quite high. The various risks involved are credit risk, market risk, liquidity risk, regulatoryrestrictions, forex risk, operational risk and ability to maintain its recovery performance and assetsquality.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

This has already been discussed in Housing and Urban Infrastructure section of the Directors' Report.

OUTLOOK

Details on outlook have already been discussed in the 'Future Outlook' Section of the Directors' Report.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Internal control system entails the overall control environment established by the management of anorganisation for effective & efficient monitoring and control of its operations. It endeavors to ensureadherence to the management policies, safeguarding of assets of the enterprise and proper accounting& recording of the business transactions.

HUDCO has a well-established internal control system with adequate checks and balances in all theoperational areas. The procedures are regulated through Master Circulars, Operational Circulars,Guidelines, Checklists, Manuals etc. which ensure the proper functioning of the internal control system.There is also a detailed system of authorisation of transactions through delegation of authority andresponsibility. The norms for concurrence of the proposals are prescribed for technical, legal andfinancial areas and their adherence is ensured. The financial transactions of HUDCO are recordedin the tailor-made Software Package with inbuilt control mechanism. These are constantly reviewedand updated, keeping in view the latest developments on the economic scenario and experiencesgained during the course of operations.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONALPERFORMANCE

This portion has already been discussed in the Directors' Report under the heading 'OperationalAchievements'.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INDUSTRIAL RELATIONS FRONT,INCLUDING NUMBER OF PEOPLE EMPLOYED

During the year, 606 employees were nominated / sponsored for training both in India and abroad.As a part of employee welfare measure, your Company extended various loans and advances to theemployees.

34

The total employee strength of your Company stood at 1027 employees comprising of 561 executivesand 466 non-executives as on 31st March, 2009. The total number of women employees was 284,out of which 56 belonged to SC/ST category. HUDCO continues to follow the Government policieson reservation for SC/ST/OBCs etc. Out of the total strength, there were 184 SCs, 64 STs, 83 OBCs,17 Physically Handicapped and 27 Ex-servicemen employees.

ENVIRONMENTAL PROTECTION AND CONSERVATION, TECHNOLOGICAL CONSERVATION,RENEWABLE ENERGY DEVELOPMENTS, FOREIGN EXCHANGE CONSERVATION

This portion has already been discussed in the Directors' Report. Further, Renewable EnergyDevelopment is not an area of operation of HUDCO.

CORPORATE SOCIAL RESPONSIBILITY

HUDCO has been playing an active role towards its Corporate Social Responsibility by providingaffordable housing to the economically weaker section and low-income group as well as basicinfrastructure facilities for improving the quality of life of the citizen. HUDCO's contribution towardspromoting affordable and cost effective options for housing, through its network of building centersand through adoption of model villages and model bastis throughout the country has been a landmarkachievement. The role of enhancing the capacity of the state agencies through training institutionsnamely HSMI and through its decentralized initiatives of HUDCO chairs established in over 22 majorinstitutions all over the country has also been well appreciated.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis Report with regard to projections, estimatesand expectations have been made in good faith. Many unforeseen factors may come into play andaffect the actual results, which could be different from what the Management envisages in terms ofperformance and outlook. The Management of the Company reserves the right to re-visit any of thepredictive statements to decide the best course of action for meeting social and business obligations.

BSUP project at Khardah, West Bengal


35

CORPORATE GOVERNANCE REPORT

Corporate Governance involves a set of relationships between a company's management, itsBoard, its shareholders and other stakeholders. It provides a principled process and structurethrough which the objectives of the company, the means of attaining the objectives and systemsof monitoring performance are set. It is about commitment to values, ethical business conduct,transparency and makes a distinction between personal and corporate funds in the managementof the company.

1. COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE

HUDCO's philosophy on Corporate Governance stems from its belief that timely disclosures,transparent accounting policies and a strong and independent Board go a long way inmaximizing corporate value. Sound Corporate Governance practices and ethical businessconduct remain at the core of HUDCO's value system and has always been the integral partof its philosophy.

HUDCO is a Government Company and its entire equity is in the name of the President of Indiaand its nominees who have been holding shares on behalf of the President of India. However,for mobilization of funds, Bonds/Debentures are issued from time to time and are listed on thestock exchanges. HUDCO has its own Code of Conduct & Ethics in compliance of DPE guidelineswhich is placed on the website of the Company. Upgradation of procedures and systems is anongoing process and your Company continued its efforts towards bringing transparency andreviewing its procedures and systems regularly for raising the standards of CorporateGovernance.

2. BOARD OF DIRECTORS

The Board of HUDCO consists of executive/non-executive Director(s), with varied skills andexperience.

2.1 Compositions and Category of Directors

The Composition of the Board as on 31.03.2009 is as follows:

Whole-Time Directors (Including Chairman and Managing Director) Three

Non-Executive Government Directors Two

Independent Director (Part-Time Non-Official Director) Three

Total Eight

The Board of Directors of the Company does not have sufficient number of Independent Directorsas required under the DPE guidelines, which are applicable on HUDCO. The matter has beentaken up with the Government of India for the appointment of Independent Directors to bringthe composition of the Board in line with the requirement of the said guidelines.

The condition as per DPE guidelines, that the number of Functional Directors (including CMD/MD) should not exceed 50% of the actual strength of the Board, is being complied with byHUDCO.

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2.2 Attendance Record of the Director(s) during the financial year 2008-09

Sl. Director(s) Tenure No. of Board Last AGM*No. Meeting(s) Attended

Held during Attendedtheir tenurein 2008-09

1. Shri KL Dhingra (From 17 13 Yes24.09.2007) (As Chairman

and ManagingDirector)

2. Shri SK Singh (From 06.06.2007 12 9 Yesto 02.01.2009) (Also as a

shareholder)

3. Dr. PK Mohanty (From 5 5 No02.01.2009)

4. Dr. RK Vats (From 17 12 Yes18.05.2007) (Also as a

shareholder)

5. Shri Rajpal Singh (From 17 17 YesSolanki 08.12.2005) (Also as

Chairman ofthe Audit

Committee)

6. Shri Dinesh Mahajan (From 17 17 Yes26.12.2007)

7. Smt. Nirmala Samant (From 17 15 YesPrabhavalkar 08.04.2008)

8. Shri T Prabakaran (From 17 17 Yes29.12.2004)

9. Shri SK Tripathi (From 14.11.2006) 17 16 Yesto 11.06.2009)

* The last AGM was held on 29th September 2008.

2.3 Details of the Directors and other Directorship(s) held by them, as reported, duringthe financial year 2008-09:

Sl. Director(s) Executive / Non- No. of outsideNo. Executive Directorship(s)

held

1. Shri KL Dhingra Whole-Time Director -(From 24.09.2007) (Chairman and Managing

Director)

2. Shri SK Singh Non-Executive -(From 06.06.2007 to (Part-Time Official Director)02.01.2009)

3. Dr. PK Mohanty Non-Executive -(From 02.01.2009) (Part-Time Official Director)


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4. Dr. RK Vats Non-Executive 2(From 18.05.2007) (Part-Time Official Director)

5. Shri Rajpal Singh Solanki* Non-Executive 2(From 08.12.2005) (Part-Time Non-Official Director)

6. Shri Dinesh Mahajan Non-Executive -(From 26.12.2007) (Part-Time Non-Official Director)

7. Smt. Nirmala Samant Non-Executive -Prabhavalkar (Part-Time Non-Official Director)(From 08.04.2008)

8. Shri T Prabakaran Whole-Time Director -(From 29.12.2004) (Finance)

9. Shri SK Tripathi Whole-Time Director -(From 14.11.2006 to 11.06.2009) (Corporate Planning)

* Shri Rajpal Singh Solanki has been reappointed as Part-Time Non-Official Director w.e.f07.12.2008.

None of the Directors on the Board of HUDCO is a member of more than 10 Committees (AuditCommittee and Shareholders' Grievance Committee) and Chairman of more than 5 Committees(Audit Committee and Shareholders' Grievance Committee), across all the companies (PublicLimited) in which, he/she/they is/are the Director(s).

2.4 Details of the Board Meeting(s) held during the financial year 2008-09:

During the year, the Board of Directors met 17 times to transact the business of the Company,the details of which are as follows:

Sl. No. Date of Meeting(s) Place No. of Director(s) Present

1. 28.04.2008 New Delhi 7

2. 05.05.2008 New Delhi 7

3. 22.05.2008 New Delhi 6

4. 17.06.2008 Mussoorie 8

5. 10.07.2008 New Delhi 8

6. 25.08.2008 New Delhi 7

7. 05.09.2008 New Delhi 8

8. 29.09.2008 New Delhi 8

9. 17.10.2008 New Delhi 8

10 14.11.2008 New Delhi 7

11. 18.11.2008 New Delhi 6

12. 17.12.2008 New Delhi 8

13. 16.01.2009 New Delhi 8

14. 12.02.2009 New Delhi 6

15. 25.02.2009 New Delhi 6

16. 16.03.2009 New Delhi 7

17. 26/27.03.2009 New Delhi 6

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2.5 Declaration of the Code of Conduct

The Board of Directors of your Company has laid down HUDCO's Code of Conduct andEthics for all Board Members and Senior Management Personnel of the Company as perthe DPE guidelines and the same has been placed on the website. All the Board Membersand Senior Management Personnel have affirmed compliance with the Code.

Declaration

It is hereby declared that the Company has obtained from the Board and SeniorManagement Personnel of the Company, affirmation that they have complied with theHUDCO's Code of Conduct and Ethics. The said affirmation is subject to:

1. The condition of not less than fifty percent of Board members being non-executiveand independent, is not complied with;

2. The Company has complied with all applicable Accounting Standards issued by theInstitute of Chartered Accountants of India, except Accounting Standard AS-9"Revenue Recognition" regarding accounting of application fees, front-end-fees,administrative fees and processing fees on loans on realisation basis instead ofaccrual basis;

3. The Company is not able to comply with National Housing Bank's credit concentrationnorms in respect of lending to some State Governments/ State Government Agencies.

Place : New Delhi KL DhingraDated : 7th July, 2009 Chairman and Managing Director

3. AUDIT COMMITTEE

3.1 Brief Description

The Audit Committee of the Company was constituted in January 2001, in accordance withthe provisions of Section 292A of the Companies Act, 1956 read with DPE Guidelines. TheAudit Committee of the Company, as on 31st March, 2009, consists of one Part-Time OfficialDirector and Two Part-Time Non-Official Directors and Director (Finance) for providingclarifications, without voting rights.

The scope and functions of the Committee inter-alia all statutory requirements includesreview of financial reporting systems, review of the quarterly/half yearly and annual financialperformance statements before submission to the Board, for consideration. Further, itincludes review of the internal audit system, internal/statutory audit reports etc. with themanagement. Role of the Audit Committee includes discussion and reviewing with theInternal Auditors any significant findings on any internal investigation by the internal auditorsinto matters of suspected fraud and irregularity. The Head of the Finance Department,Statutory Auditors and Internal Auditors of the Company are also invited for the meetingof the Audit Committee. The Company Secretary acts as the Secretary to the AuditCommittee. The recommendations of the Audit Committee are accepted and implementedby the Board.


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3.2 Composition of the Audit Committee

The Audit Committee comprised of the following members during the year.

Sl. Name of Members Tenure as Audit Executive/Non-ExecutiveNo. Committee Member

1. Shri Rajpal Singh Solanki* (From 08.12.2005) Non-Executive Director(Chairman of the Audit (Part-Time Non-Official/Committee) Independent Director)

2. Dr. RK Vats (From 18.05.2007) Non-Executive Director(Part-Time Official Director)

3. Shri Dinesh Mahajan (From 30.01.2008) Non-Executive Director(Part-Time Non-Official/Independent Director)

Secretary to the Audit Committee:

Shri H Verma # Company Secretary, HUDCO(From 27.06.2008)

* Shri Rajpal Singh Solanki has been reappointed as Part-Time Non-Official Director w.e.f07.12.2008.

# Shri MK Gupta resigned from the services of HUDCO on 14.05.2008, thereafter ShriVivek Dwivedi, held the charge of Company Secretary from 14.05.2008 to 27.06.2008.Consequent upon his resignation, Shri H Verma is holding the charge of CompanySecretary w.e.f. 27.06.2008.

3.3 Audit Committee Meetings and Attendance for the year 2008-09.

The Audit Committee met five times during the year as per the following details:

Sl. No. Date of Meeting(s) Place No. of Member(s) Present

1. 28.04.2008 New Delhi 3

2. 13.06.2008 New Delhi 3

3. 25.08.2008 New Delhi 3

4. 17.10.2008 New Delhi 3

5. 31.01.2009 New Delhi 3

Sl. No. Name of the Member of No. of Audit Committee Meeting(s)the Audit Committee

Held during Attendedtheir tenure in

2008-09

1. Shri Rajpal Singh Solanki 5 5(Chairman of the AuditCommittee)

2. Dr. RK Vats 5 5

3. Shri Dinesh Mahajan 5 5

Shri T Prabakaran, Director (Finance) attended the Audit Committee meetings as specialinvitee.

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4. REMUNERATION COMMITTEE

4.1 As per clause 83(2) of the Articles of Association of HUDCO, the remuneration payableto its Whole-Time Directors (Executive) is approved by the President of India throughHUDCO's Administrative Ministry i.e. 'Ministry of Housing and Urban Poverty Alleviation'.Thus, no remuneration committee is required to be constituted.

4.2 Part-Time Non-Official Director(s) are only paid sitting fees for attending each Board/AuditCommittee/ Committee of Directors' / Sub-Group meeting.

4.3 Details of Remuneration of Directors

Details of the remuneration of the Functional Directors, as per DPE Guidelines are as follows:-

Sl. Name of Director Salary Benefits Bonus/ Performance TotalNo. (Rs.) (Rs.) Commission Linked (Rs.)

Ex-gratia Incentives(Rs.) (Rs.)

1. Shri KL Dhingra 780300 327386 0 31500 1139186(Chairman andManaging Director)

2. Shri T Prabakaran 676850 589856 0 55400 1322106(Director Finance)

3. Shri SK Tripathi(Director Corporate 653710 352441 0 51067 1057218Planning)

Details of payments towards sitting fee to Independent Directors are as given below : -

Sl. Name of the Sitting Fee TotalNo. Non-Official Director (Rs.)

Board Meeting Committee Meeting(Rs.) (Rs.)

1. Sh. Rajpal Singh Solanki 84000 40000 124000

2. Sh. Dinesh Mahajan 90000 28000 118000

3. Smt. Nirmala S Prabhavalkar 75000 - 75000

Part-Time Official Directors, being Government nominees, are not entitled to any remunerationor sitting fee by the Company.

5. SHAREHOLDERS/ INVESTORS GRIEVANCE COMMITTEE

HUDCO, being a Government Company, the entire Share Capital is held by the President ofIndia and its nominees. Hence, no Shareholders/Investors Grievance Committee is required tobe constituted.

6. DETAILS OF ANNUAL GENERAL MEETING(s):-

6.1 Date, location and time of the last three AGM of the company

Financial Location Date Time Special ResolutionYear Passed

2007-2008 Registered Office, New Delhi 29.09.2008 10:00 a.m. -

2006-2007 Registered Office, New Delhi 28.12.2007 3:00 p.m. -

2005-2006 Registered Office, New Delhi 20.12.2006 4:00 p.m. One


41

6.2 Resolution through Postal Ballot

No resolution has been passed through Postal Ballot during the financial year 2008-09.

7. DISCLOSURES

a) There were no material transactions with the Directors or the Management or their relativesthat may have potential conflict with the interest of the Company at large.

b) The Company has complied with NHB Directions except Credit Concentration norms inrespect of lending to few State Government/ State Government Agencies. HUDCO hassought relaxation in Credit Concentration Norms from NHB and the matter has been takenup in this regard. As on date of the approval of accounts, the number of IndependentDirector(s) on the Board of the Company are not sufficient.

c) As part of the Directors' Report, a Management Discussion and Analysis Report forms partof the Annual Report to the shareholders.

d) The Company has complied with all applicable Accounting Standards issued by ICAI exceptAccounting Standard (AS)- 9 regarding Revenue Recognition (refer Schedule S).

e) Related Party Transaction - Related Party transactions have been appropriately disclosedin Schedule P relating to Personnel Expenses, Schedule Q relating to Administrative andOther Expenses and Schedule T relating to Notes forming part of the Accounts.

8. PRESIDENTIAL DIRECTIVES

The Ministry of Housing and Urban Poverty Alleviation (MoHUPA) vide its letter No O-17034/88/2008-H dated 16.12.2008 conveyed the decision of the Government of India on therecommendation of 2nd pay committee in respect of revision of the pay scales of Board levelexecutives and below Board level executive and non-unionised supervisors in CPSEsw.e.f. 01.01.2007 in terms of DPE guidelines vide OM No. 2(70)/08-DPE (WC) dated 26.11.2008.Accordingly, the Board of HUDCO approved the revision of the pay scales and conveyed thesame to the MoHUPA for issue of Presidential Directives. The MoHUPA vide its letterNo. O-17034/88/2008-H dated 02.03.2009 has conveyed the Presidential Directive in exerciseof the power conferred by Article 127 of the Articles of Association of HUDCO, in respect ofrevision of pay scales of HUDCO executives.

Further, the DPE vide OM No. 2(70)/08-DPE (WC)-GL-VII/09 dated 02.04.2009 had conveyedthe approval to recommendations submitted by the Committee of Ministers revising the amountof DA from 68.8% to 78.2%, etc. Accordingly, the Board of HUDCO approved the proposal andconveyed the same to the MoHUPA for issue of Presidential Directive. The MoHUPA vide itsletter No. O-17034/88/2008-H dated 01.05.2009 in exercise of the power conferred by Article 127of the Articles of Association of HUDCO has conveyed the Presidential Directive to makenecessary modifications in the matter of revision of the pay scales of HUDCO executives.

9. MEANS OF COMMUNICATIONS

Half yearly result : Press advertisements, information toStock Exchanges etc.

Quarterly results-newspapers normally : Mainly business/regional newspapers likepublished in Economic Times, Financial Express etc.

Website where quarterly results are : www.hudco.orgdisplayed

Whether it also displays official news : Yesreleases and presentations made toinstitutional investors/analysts

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10 GENERAL SHAREHOLDER INFORMATION

10.1 39th Annual General Meeting

Date and Time : 24/08/2009 at 4.00 p.m.

Venue : HUDCO Bhawan, India Habitat Centre,Lodhi Road, New Delhi - 110003.

10.2 Calendar for the financial year 2009-10 (Tentative)

Financial Result for the Quarter : Last week of July, 2009ending June 30, 2009

Financial Result for the Quarter : Last week of October, 2009ending September 30, 2009

Financial Result for the Quarter : Last week of January, 2010ending December 31, 2009

Financial Result for the Quarter : Last week of April, 2010ending March 31, 2010

Annual General Meeting for the : Last week of September, 2010year 2009-2010

10.3 Dividend Payment Date

The Board of Directors has recommended a final dividend of Rs. 45.24 crore for the yearending on 31.03.2009 and the same shall be paid within statutory time period, after itsdeclaration/approval by shareholders in the Annual General Meeting (AGM) of theCompany.

10.4 Listing of Securities on Stock Exchanges

As on 31.03.2009, HUDCO Bonds are listed only on the National Stock Exchange of IndiaLimited (NSE) and Delhi Stock Exchange Association Limited (DSE).

10.5 Dematerialization

The different bonds series of the Company have been admitted as an eligible security fortrading in dematerialization form by National Securities Depositories Ltd. (NSDL) andCentral Depositories Securities (India) Ltd. (CDSL).

10.6 Registrars and Transfer Agents

1. Alankit Assignment Limited, Alankit House, 2E/21, Jhandewalan Extn., New Delhi-110055

2. Intime Spectrum Registry Limited, A-31, 3rd Floor, Naraina Industrial Area, Phase-I, NearPVR Cinema, New Delhi-110028

3. Beetal Financial & Computer Services (P) Ltd., Beetal House, 3rd Floor, 99-Madangir,Behind Local Shopping Centre, New Delhi-110062


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10.7 Shareholder's Profile

Category As on 31.3.2007 As on 31.3.2008 As on 31.3.2009

No. of % of No. of % of No. of % ofShares of Shares Shares of Shares Shares of Shares(Rs. 1,000 (Rs. 1,000 (Rs. 1,000

each) each) each)

President 2,00,18,993 99.999965 2,00,18,993 99.999965 2,00,18,993 99.999965of India

Others* 7 0.000035 7 0.000035 7 0.000035

Total 2,00,19,000 100.000000 2,00,19,000 100.000000 2,00,19,000 100.000000

* Including Government Director(s) on behalf of the President of India

10.8 Address for Communication

Housing and Urban Development Corporation LimitedHUDCO, HUDCO Bhawan, Core - 7A,India Habitat Centre, Lodhi Road,New Delhi - 110003.

CERTIFICATE BY STATUTORY AUDITORS ON CORPORATE GOVERNANCE

As required under DPE guidelines on Corporate Governance, the certificate from the Statutory Auditorspertaining to the Compliance of conditions of Corporate Governance is being annexed with theDirectors' Report.

IHSDP Project for Ashtha, District Sangli, Maharashtra

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AUDITORS' CERTIFICATE REGARDING COMPLIANCE WITH THE CONDITIONS OF CORPORATEGOVERNANCE UNDER CLAUSE 7.2 OF THE DPE GUIDELINES

To the Members ofHOUSlNG AND URBAN DEVELOPMENT CORPORATION LIMITED

We have examined the compliance of the conditions of Corporate Governance by the Housing andUrban Development Corporation Limited for the year ended 31st March 2009 as stipulated in clause7.2 of the DPE Guidelines.

The compliance of conditions of Corporate Governance is the responsibility of the management. Ourexamination was limited to procedures and implementation thereof, adopted by the Company forensuring the compliance of the conditions of Corporate Governance as stipulated in the said clause.It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, subjectto the following:

1. The condition of not less than fifty percent of Board members being non-executive andindependent is not complied with;

2. The Company has complied with all applicable Accounting Standards issued by the Institute ofChartered Accountants of India, except Accounting Standard AS-9 "Revenue recognition"regarding accounting of application fees, front-end-fees, administration fees and processing feeson loans on realization basis instead of accrual basis;

3. The Company is not able to comply with National Housing Bank's credit concentration normsin respect of lending to some State Governments / State Government Agencies.

We certify that the Company has complied with the conditions of Corporate Governance, as stipulated,in the above-mentioned clause of the DPE Guidelines.

We further state that such compliance is neither an assurance as to the future viability of the Companynor the efficiency or effectiveness with which the management has conducted the affairs of theCompany.

For SN DHAWAN & CO.Chartered Accountants

Sd/-(Suresh Seth)

Place : New Delhi PartnerDate : 7th July, 2009 Membership No. 10577


45

ADDENDUM – I

46

ADDENDUM – IAnnexure to the Directors' Report

Management reply on the observations made by Statutory Auditors on the CorporateGovernance report for the financial year ended 31st March 2009.

Sl. Auditors observations on CorporateNo. Governance

1. The condition of not less than fifty percent ofBoard members being non-executive andindependent is not complied with;

2. The Company has complied with all applicableAccounting Standards issued by the Instituteof Chartered Accountants of India, exceptAccounting Standard AS-9 "RevenueRecognition" regarding accounting ofapplication fees, front-end-fees, administrationfees and processing fees on loans onrealization basis instead of accrual basis;

3. The Company is not able to comply withNational Housing Bank's credit concentrationnorms in respect of lending to some StateGovernments / State Governments Agencies.

Management Reply

HUDCO does not have the power toappoint Directors on its Board. Thepower to appoint the Director(s) vestswith the Administrative Ministry. Thesaid non-compliance was brought to theknowledge of the Administrative Ministryand was pursued for the appointment ofindependent Directors. HUDCO hasmade all best possible efforts within itscontrol for compliance of the requiredprovisions.

The Company has the accounting policyof recognising application fees, front-end-fees, administration fees andprocessing fees on loans on realizationbasis which has also been disclosed inSchedule-S.

HUDCO has been fully complying withthe exposure norms in respect of privatesector borrowers and at no point of time,the limit for these have been exceeded.However, in respect of borrowing by theState Governments / State GovernmentAgencies, the exposure has beenexceeded in case of some agencies forwhich HUDCO has been making requestto NHB for relaxation from exposurenorms for HUDCO.


Place : New Delhi KL DhingraDated : 23rd July, 2009 Chairman and Managing Director


47

AUDITORS’ REPORT

48

AUDITORS’ REPORT

To the Members ofHOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED

1. We have audited the attached Balance Sheet of Housing and Urban Development CorporationLimited, as at 31st March, 2009, the Profit and Loss Account and also the Cash Flow Statementfor the year ended on that date, annexed thereto. These financial statements are the responsibilityof the Company's management. Our responsibility is to express an opinion on these financialstatements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India.Those Standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements.An audit also includes assessing the accounting principles used and significant estimates madeby management, as well as evaluating the overall financial statement presentation. We believethat our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003 (as amended) issued by the CentralGovernment of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956,we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of thesaid Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

i) The Company has made an additional provision on loans amounting to Rs. 180 crorebeyond National Housing Bank's norms. As a result, the profit for the year is lower byRs. 180 crore [refer Note 5(b) of Schedule-T].

ii) The Company is accounting for application fees, front-end-fees, administrative fees andprocessing fees on loans on realization basis instead of accounting for on accrual basis,the effect of which has not been ascertained [refer Significant Accounting Policy 2 (b) ofSchedule-S].

iii) Attention is further invited to the following:

a) Non-confirmation/reconciliation of balances of Loan Accounts and consequentialadjustments, if any. [refer Note 5(a) of Schedule-T]

b) Non-implementation of Default Resolution Package by Cochin International Airport Ltd.[refer Note 5(c) of Schedule-T]

c) In respect of disputes relating to Andrews Ganj Project undertaken by the Companyon behalf of the Ministry of Urban Development, the Ministry has intimated theCompany that it cannot pass on the financial liability to the Government Account onaccount of various disputes. The Company on its part has refused to accept anyliability on account of disputes. We are unable to comment upon the financialimplication, if any. [refer Note 2(b) of Schedule-T]

d) The Company is not able to comply with National Housing Bank's credit concentrationnorms in respect of lending to some State Governments / State GovernmentsAgencies. [refer Note 10 of Schedule-T]


49

5. We further report that:

a) We have obtained all the information and explanations, which to the best of our knowledgeand belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Companyso far as it appears from our examination of those books;

c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this reportare in agreement with the books of account;

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealtwith by this report comply with the Accounting Standards referred to in sub-section (3C)of Section 211 of the Companies Act, 1956, except Accounting Standard (AS)-9 "RevenueRecognition" regarding accounting of application fees, front-end-fees, administration feesand processing fees on loans on realisation basis instead of accrual basis. [refer SignificantAccounting Policy 2 (b) of Schedule-S].

e) The requirements of clause (g) of sub-section (1) of Section 274 of the Companies Act,1956, relating to disqualification of directors are not applicable to the Company, being aGovernment Company, in terms of Notification No.G.S.R.829 (E) dated 21.10.2003 issuedby Ministry of Finance, Department of Company Affairs.

We further report that, without considering the observations made in paragraphs 4(ii) the effectof which has not been ascertained and 4(iii)(a) to 4(iii)(d) the effect of which could not bedetermined, had the observation made by us in paragraph 4(i) above been considered, theProfit for the year would have been Rs. 580.99 crore (as against the reported figure ofRs. 400.99 crore), Reserves & Surplus would have been Rs. 2845.96 crore (as against thereported figure of Rs. 2665.96 crore). Subject to the foregoing, in our opinion and to the bestof our information and according to the explanations given to us, the said accounts read togetherwith the Significant Accounting Policies and Notes to Accounts give the information required bythe Companies Act, 1956, in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at31st March, 2009;

b) in the case of the Profit and Loss Account, of the profit for the year ended on that dateand

c) in the case of the Cash Flow Statement of the cash flows for the year ended on that date.

For SN Dhawan & Co.Chartered Accountants

Sd/-Suresh Seth

Place : New Delhi PartnerDate : 24th June, 2009 Membership No.10577

50

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE ON THEACCOUNTS OF HOUSING & URBAN DEVELOPMENT CORPORATION LIMITED FOR THE YEARENDED 31ST MARCH, 2009

i) (a) The Company has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets.

(b) As per information and explanations given to us, all the fixed assets were physically verifiedby the Company during the year. No material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us, the Company has not disposedoff a substantial part of its fixed assets during the year.

ii) The Company does not have any inventory. Therefore, the provisions of clause 4 (ii) (a), (b)& (c) of the Order, are not applicable.

iii) As informed to us, the Company has neither granted nor taken any loan, secured or unsecured,to/from companies, firms or other parties covered in the register maintained under Section 301of the Companies Act, 1956. Accordingly, provisions of clause 4(iii) (a) to (g) of the Order arenot applicable.

iv) In our opinion and according to the information and explanations given to us, there are generallyadequate internal control procedures commensurate with the size of the Company and natureof its business with regard to purchase of fixed assets. The Company's operations do not involvepurchase of inventory and sale of goods. In our opinion, monitoring mechanism in regional officesregarding loan schedule implementation, site inspection, reviewing of financial/ technical appraisalof the schemes and non-receipt of utilization certificates in respect of various grants and subsidieswas inadequate and needs to be strengthened.

v) According to the information and explanations given to us, we are of the opinion that there areno transactions that need to be entered in the register required to be maintained under Section301 of the Companies Act, 1956.

vi) In our opinion and according to the information and explanations given to us, the Company hascomplied with the provisions of Section 58A and 58AA and other relevant provisions of theCompanies Act, 1956, the Companies (Acceptance of Deposits) Rules, 1975 and HousingFinance Companies (NHB) Directions with regard to deposits accepted from the public. No orderhas been passed by the Company Law Board or National Company Law Tribunal or ReserveBank of India or NHB or any Court or any other Tribunal on the Company in respect of theaforesaid deposits.

vii) According to the information and explanations given to us, the Company has an internal auditsystem; however, to make it commensurate with size and nature of its business, it requires tobe further strengthened. In our opinion, the coverage of Internal Audit should be enlarged andsubmission of replies/ compliances needs to be expedited.

viii) According to the information and explanations given to us, the Central Government has notprescribed the maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956.

ix) (a) According to the information and explanations given to us and according to the recordsproduced before us for verification, the Company is generally regular in depositing, withappropriate authorities, the undisputed statutory dues including Provident Fund, InvestorEducation and Protection Fund, Income Tax, Wealth Tax, Service Tax and any othermaterial statutory dues applicable to it.

Further, since the Central Government has till date not prescribed the amount of cesspayable under Section 441A of the Companies Act, 1956, we are not in a position tocomment upon the regularity or otherwise of the Company in depositing the same.

(b) According to the information and explanations given to us, no undisputed amounts payable


51

in respect of Income Tax, Wealth Tax, Service Tax and any other statutory dues were inarrears as at 31st March 2009 for a period of more than six months from the date theybecame payable.

(c) According to the information and explanations given to us, there are no dues of IncomeTax, Wealth Tax and Service Tax which have not been deposited on account of any disputeexcept the following:

Name of the Nature of Financial Year to Forum where AmountStatute Dues which the matter matter is (Rs. in

pertains pending crore)

Income Tax Act, Income 1996-1997, Deputy 15.321961 Tax, 1997-1998, Commissioner

Interest & 1998-1999, of IncomePenalty 2001-2002 Tax

Finance Act, 1994 Service 2004-2005, Commissioner 1.37Tax, 2005-2006, of Service

Interest & 2006-2007, TaxPenalty 2007-2008

x) The Company has no accumulated losses as at 31st March, 2009 and it has not incurred anycash losses during the financial year covered by our audit or in the immediately precedingfinancial year.

xi) In our opinion and according to the information and explanations given to us, the Company hasnot defaulted in repayment of dues to a financial institution, bank or debenture holders.

xii) We are of the opinion that the Company has maintained adequate documents and records wherethe Company has granted loans and advances on the basis of security by way of pledge ofshares, debentures and other securities.

xiii) In our opinion, the Company is not a Chit Fund or Nidhi /Mutual Benefit Fund/Society. Therefore,the provisions of clause 4(xiii) of the Order are not applicable.

xiv) In our opinion the Company is not dealing or trading in shares, securities, debentures or otherinvestments. Therefore, the provisions of clause 4(xiv) of the Order are not applicable.

xv) The Company has not given any guarantees for loans taken by others from banks or financialinstitutions. Therefore, the provisions of clause 4(xv) of the Order are not applicable.

xvi) According to the information and explanations given to us, the term loans have been appliedfor the purpose for which they were raised.

xvii) According to the information and explanations given to us and on an overall examination of theBalance Sheet of the Company, we report that, prima facie, no funds raised on short-term basishave been used for long-term investment.

xviii) According to the information and explanations given to us, the Company has not made anypreferential allotment of shares to parties and companies covered in the register maintained underSection 301 of the Companies Act, 1956.

xix) According to the information and explanations given to us, the Company has not issued anydebentures, during the year. Therefore, the provisions of clause 4(xix) of the Order are notapplicable.

52

xx) The Company has not raised any money through public issue during the year.

xxi) To the best of our knowledge and belief and according to the information and explanations givento us, no fraud on or by the Company was noticed or reported during the year, although therehave been few instances of loans becoming doubtful of recovery consequent upon fraudulentmisrepresentation by borrowers, the amounts whereof are not material in the context of the sizeof the Company and the nature of its business and which have been provided for.


Sd/-Suresh Seth

Place : New Delhi PartnerDate : 24th June, 2009 Membership No.10577


53

ADDENDUM – II

54

ADDENDUM – IIAnnexure to the Directors' Report

Comments of the Board of Directors on Statutory Auditors' Report and Annexure to theAuditors' Report (required under Section 217 (3) of the Companies Act, 1956).

A. Auditors' Report

Point No. 4(i) Position has been explained in the note No. 5(b) of Schedule-T.

Point No. 4(ii) The Company has the accounting policy of recognising front-end fees,application fees, administrative fees and processing fees on loans onrealisation basis, which has also been disclosed in Accounting Policy No.2(b) of Schedule-S.

Point No. 4(iii)(a) Noted for suitable action.

Point No. 4(iii)(b) As per terms of default resolution package, M/s Cochin International AirportLtd. is yet to convert loan of Rs. 52 crores and allot equity shares at par.Agency is being pursued for necessary action. This has also been explainedin Note No. 5(c) of Schedule-T.

Point No. 4(iii)(c) The Andrews Ganj Project has been undertaken by the Company on behalfof the Ministry of Urban Development. The position has also been disclosedin Note No. 2(b) of Schedule-T.

Point No. 4(iii)(d) The Company has taken up the matter in respect of relaxation of exposurenorms applicable in respect of State Government / Government Agencieswith National Housing Bank (NHB).

Point No. 5(a), No comments required.(b), (c) and (e)

Point No. 5(d) The Company has the accounting policy of recognizing front-end-fees,application fees, administrative fees and processing fees on loans onrealisation basis which has also been disclosed in the Schedule-S.


55

B. Annexure to the Auditors' Report

Point No.(i)(a), No comments required.(i)(b), (i)(c), (ii),(iii), (v), (vi), (viii),(ix)(a), (ix)(b), (x),(xi), (xii), (xiii), (xiv),(xv), (xvi), (xvii),(xviii), (xix), (xx)and (xxi)

Point No. (iv) ● With a view towards having effective Monitoring Mechanism in OperationsWing, a Project Monitoring Cell has been created for monitoringschemes for timely documentation, releases including site inspectionsand repayments, so as to avoid defaults. Accordingly, monitoringformats has been devised which have been circulated to all RegionalOffices for obtaining information in the prescribed format on monthlybasis. In case progress reports are not received in time, regular follow-up is being carried out.

● The utilisation certificates of grants / subsidies are constantly monitoredat Regional Offices, Corporate Office and also periodically reviewed bythe Ministry.

Point No. (vii) Internal Audit endeavours to cover maximum number of Regional Offices /Retail Finance Units and some Departments of Head Office with theavailable staff strength. During last few years Internal Audit Wing has beenable to cover all Regional Offices, majority of the Niwas Offices and someDepartments of Head Office. The Audit Committee and the management isbeing apprised from time to time regarding the coverage of the areas byInternal Audit.

It has been ensured that at least all Regional Offices & main branches ofRetail Finance and some of the Departments of Head Office are beingcovered every year. It is proposed to widen the coverage further by includingsome more Departments of Head Office as well.

All the possible steps are being undertaken for early submission of replies /compliances to the Competent Authority. Regional Offices / Retail FinanceUnits / Departments of HO are also being advised from time to time for earlysubmission of replies / compliance of audit observations.

Point No. (ix)(c) The matter has been taken up with Income Tax Department / Service TaxDepartment for rectification / deletion / adjustment of demand raised by themand orders from Income Tax Department / Service Tax Department are stillawaited.


Place : New Delhi KL DhingraDated : 23rd July, 2009 Chairman and Managing Director

56

COMMENTS OF THE C&AG

Annexure to the Directors' Report

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF HOUSING AND URBANDEVELOPMENT CORPORATION LIMITED, NEW DELHI, FOR THE YEAR ENDED 31ST MARCH2009.

(As conveyed vide letter ºÉÆ./No. ºÉ.ãÉä.{É.*** /|ÉÉÊiÉ/+ÉBÉEÉ=Æ]ÂºÉ/18-2/2009-10/428 dated 04.07.2009 by theoffice of the Principal Director of Commercial Audit and Ex-officio Member, Audit Board - III, New Delhi.)

The preparation of financial statements of Housing and Urban Development Corporation Limited, NewDelhi, for the year ended 31st March, 2009 in accordance with the financial reporting frameworkprescribed under the Companies Act, 1956, is the responsibility of the Management of the Company.The statutory auditors appointed by the Comptroller and Auditor General of India under Section 619(2)of the Companies Act, 1956, are responsible for expressing opinion on these financial statementsunder Section 227 of the Companies Act, 1956, based on independent audit in accordance with theauditing and assurance standards prescribed by their professional body, the Institute of CharteredAccountants of India. This is stated to have been done by them vide their Audit Report dated24th June, 2009.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary auditunder section 619(3)(b) of the Companies Act, 1956, of the financial statements of Housing and UrbanDevelopment Corporation Limited, New Delhi, for the year ended 31st March, 2009. This supplementaryaudit has been carried out independently without access to the working papers of the statutory auditorsand is limited primarily to inquiries of the statutory auditors and company personnel and a selectiveexamination of some of the accounting records. On the basis of my audit, nothing significant has cometo my knowledge, which would give rise to any comment upon or supplement to Statutory Auditors'Report under Section 619(4) of the Companies Act, 1956.

For and on behalf of theComptroller & Auditor General of India

Sd/-(Ghazala Meenai)

Principal Director of Commercial AuditPlace : New Delhi & Ex-officio Member, Audit Board - III,Dated : 4th July, 2009 New Delhi


57

ANNUAL ACCOUNTS

58

ANNUAL ACCOUNTSBALANCE SHEET AS AT 31ST MARCH, 2009

(Rs. in thousand)As at As at

SCHEDULE 31st March, 2009 31st March, 2008

SOURCES OF FUNDSShareholders' FundsShare Capital A 20,019,000 20,019,000Reserves and Surplus B 26,659,615 21,887,861

46,678,615 41,906,861Loan FundsSecured Loans C 1,991,898 2,083,529Unsecured Loans D 190,501,347 186,946,309

192,493,245 189,029,838Deferred Tax Liabilities (Net) 2,343,927 1,633,271

241,515,787 232,569,970APPLICATIONS OF FUNDSFixed AssetsGross Block 1,418,666 1,337,780Less: Depreciation 698,977 661,161Net Block 719,689 676,619Capital Work in Progress 90,721 87,178

E 810,410 763,797Investments F 20,431,909 20,625,580Loans G 214,269,690 210,729,388Current Assets, Other Loans and AdvancesSundry Debtors H 218,175 87,628Cash and Bank Balances I 10,523,863 7,466,958Other Current Assets J 2,691,337 2,872,391Other Loans and Advances K 5,262,402 4,915,610

18,695,777 15,342,587Less:Current Liabilities and ProvisionsCurrent Liabilities L 9,400,327 11,281,908Provisions M 3,495,638 3,889,576

12,895,965 15,171,484Net Current Assets 5,799,812 171,103Miscellaneous Expenditure(to the extent not written off or adjusted)Ancillary cost on raising of Bonds,Public Deposits and Term Loans 203,966 280,102

203,966 280,102241,515,787 232,569,970

Significant Accounting Policies SNotes to Accounts TNote : The Schedules referred to above form an integral part of the Balance Sheet.

For and on behalf of the Board

Sd/- Sd/- Sd/-Harender Verma T Prabakaran KL Dhingra

Company Secretary Director Finance Chairman and Managing Director

As per our separate report of even date attached


Sd/-Suresh Seth

Place : New Delhi PartnerDated : 24th June, 2009 Membership No. 10577


59

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009

(Rs. in thousand)Year ended Year ended

SCHEDULE 31st March, 2009 31st March, 2008

INCOMEIncome from Loans, Investments, N 27,082,457 26,056,193Deposits and OthersOther Income 49,339 45,744Total 27,131,796 26,101,937EXPENDITUREInterest and other charges O 19,024,495 17,256,118Personnel expenses P 757,512 856,749Administrative and other expenses Q 241,320 210,263Depreciation 46,715 52,938Provision on loans (Refer Note No. 5(b)) (653,460) 2,138,680Provision on debtors/recoverables and other loans & advances 1,459 1,087Provision on investment 1,611 2,195Total 19,419,652 20,518,030Profit before tax 7,712,144 5,583,907Prior period adjustments (net) R 62,533 (2,898)Deferred Tax Liability for prior years transferred toGeneral Reserve (Refer Note No.12) (1,209,648) -Provision for taxation - Current Tax / Wealth Tax (1,862,500) (2,173,000) - Deferred Tax - Current year (710,656) 335,414 - Fringe Benefit Tax (8,500) (8,500)Adjustment of tax for earlier years (Net) 26,502 2,396Profit after tax 4,009,875 3,737,319Add: Transferred from Bonds Redemption Reserve - 1,221,211Add: Transferred from Welfare Reserve - 23,465Less: Transferred to Welfare Reserve (2,822) -

4,007,053 4,981,995Add: Balance brought forward from previous year 1,254,726 1,254,726Profit available for appropriation 5,261,779 6,236,721APPROPRIATIONInterim Dividend - 263,450Proposed Final Dividend 452,429 417,596

452,429Dividend Tax 76,890 115,744Transferred to Special Reserve 1,750,000 1,650,000Transferred to General Reserve 1,665,740 2,480,899Transferred to Welfare Reserve 61,994 54,306Balance carried to Balance Sheet 1,254,726 1,254,726

5,261,779 6,236,721

Earning per Share (Face value Rs. 1000) 200.30 186.69Basic / Diluted (Rs.)Significant Accounting Policies SNotes to Accounts T

Note : The Schedules referred to above form an integral part of the Profit and Loss Account.






Sd/-Suresh Seth


60

Schedules A to TAnnexed to and forming part of the Accounts

SCHEDULE ASHARE CAPITAL


31st March, 2009 31st March, 2008

Authorised25,000,000 equity shares of Rs.1,000/- each(previous year 25,000,000 equity shares ofRs.1,000/- each) 25,000,000 25,000,000

Issued, Subscribed and Paid up20,019,000 equity shares of Rs.1,000/- eachfully paid up (previous year 20,019,000 equityshares of Rs.1,000/- each fully paid up) 20,019,000 20,019,000

20,019,000 20,019,000


61

SCHEDULE BRESERVES AND SURPLUS



Capital (KfW) ReserveBalance from previous year 458,113 451,063Add : Transferred during the year 81,550 7,050

539,663 458,113

Special Reserve(a) Created (u/s 36(1)(viii) of the Income

Tax Act, 1961 upto Financial Year 1996-97)Balance from previous year 1,817,490 1,817,490(b) Created and Maintained (u/s 36(1)(viii) of

the Income Tax Act, 1961 fromFinancial Year 1997-98 onwards)

Balance from previous year 14,950,548 13,300,548Add: Transferred from Profit and Loss

Appropriation Account 1,750,000 1,650,000

16,700,548 14,950,548

18,518,038 16,768,038

Bonds Redemption ReserveBalance from previous year - 1,221,211Less: Transferred to Profit and Loss Account - 1,221,211

- -General ReserveBalance from previous year 3,005,252 700,000Add: Transferred from Profit and Loss Account

on account of prior years DeferredTax Liability (Refer Note No. 12) 1,209,648 -

Less:Utilised for leave encashment onaccount of AS - 15* - 11,702

Less:Utilised for post retirement medicalbenefit on account of AS - 15* - 138,031

Less:Utilised for Gratuity on account of AS - 15* - 25,914Add: Transferred from Profit and Loss Appropriation Account 1,665,740 2,480,899

5,880,640 3,005,252Welfare ReserveBalance from previous year 401,732 370,891Less:Transferred to Profit and Loss Account - 23,465Add: Transferred from Profit and Loss Account 2,822 -Add: Transferred from Profit and Loss Appropriation Account 61,994 54,306

466,548 401,732Transfer from Profit and Loss AccountSurplusBalance from previous year 1,254,726 1,254,726Less:Transferred to Profit and Loss Account 1,254,726 1,254,726

-Surplus, balance in Profit and Loss Account 1,254,726 1,254,726

1,254,726 1,254,726

26,659,615 21,887,861

* Net of Deferred Tax of Rs. 9.04 crore.

62

SCHEDULE CSECURED LOANS



Loan from BankBank of India * # 1,195,398 1,250,529

(Due for repayment within one year Rs. 5.86 crore) 1,195,398 1,250,529(Previous year Rs. 5.51 crore)

Special Priority Sector Bonds ##SPS Bond Series A, B and C (Bank of India) ** 796,500 833,000

(Due for repayment within one year Rs. 3.80 crore) 796,500 833,000(Previous year Rs. 3.65 crore)

1,991,898 2,083,529

* Secured by lien over Certificate of Deposit for US $ 23.91 million (Previous year US $ 25.01million) placed under swap arrangement with Bank of India, Cayman Islands Branch, New York.The deposits are co-terminus with the loan maturity schedule of the underlying ADB loan.

** Bonds secured by lien over Certificate of Deposit for US $ 15.94 million (Previous yearUS $ 16.67 million) placed under swap arrangement with Bank of India, Cayman Islands Branch,New York. The deposits are co-terminus with the loan maturity schedule of the underlying ADBloan.

# Repayable from 10.12.2002 to 10.06.2022.

## The repayment dates for SPS bonds series B and C is semi annual: for Series B from 10.12.2008to 10.06.2015 and for series C from 10.12.2015 to 10.06.2022.


63

SCHEDULE DUNSECURED LOANS



DEBENTURES * ###Subscribed by Banks, Companies and Trusts11.50% Paid on 15.06.2008 - 275,00011.50% Paid on 12.10.2008 - 300,00011.50% Paid on 20.12.2008 - 180,00011.50% Repayable on 26.05.2009 400,000 400,00011.50% Repayable on 31.08.2009 410,000 410,00011.50% Repayable on 26.06.2010 300,000 300,00011.50% Repayable on 05.10.2010 400,000 400,00011.50% Repayable on 25.09.2011 350,000 350,00012.00% Repayable on 07.01.2012 420,000 420,000

2,280,000 3,035,000BONDS ###

Hudco Bonds Series

Non-cummulative

13.75% Taxable (XI-B) Paid on 10.08.2008 - 350,00013.75% Taxable (XI-D) Paid on 01.09.2008 - 520,00010.25% Tax free (XII-B) Paid on 08.01.2009 - 350,00012.50% Taxable (XIII-C) Paid on 26.03.2009 - 200,00012.50% Taxable (XIV-B) Repayable on 08.09.2009 570,000 570,0008.25% Tax free (XV-B) Repayable on 29.03.2010 500,000 500,00011.25% Taxable (XVI-B) Repayable on 31.03.2010 353,000 353,0008.25% Tax free (XVII-A) Repayable on 19.09.2010 615,000 615,0008.25% Tax free (XVII-B) Repayable on 28.09.2010 300,000 300,0008.25% Tax free (XVII-C) Repayable on 15.03.2011 85,000 85,00012.40% Taxable (XVIII-C) Repayable on 19.09.2010 110,000 110,00012.40% Taxable (XVIII-F) Repayable on 28.09.2010 247,800 247,80010.65% Taxable (XX-B) Paid on 20.07.2008 - 268,00011.15% Taxable (XX-C) Repayable on 20.07.2011 4,440,600 4,440,6009.00% Tax free (XXI-B) Repayable on 30.01.2012 400,000 400,0009.75% Taxable (XXII-C) Repayable on 28.03.2012 30,000 30,0009.60% Taxable (XXIII-B) Paid on 27.03.2009 - 87,00010.00% Taxable (XXIII-C) Repayable on 27.03.2012 3,125,500 3,125,5009.60% Taxable (XXIV-B) Paid on 28.03.2009 - 583,50010.00% Taxable (XXIV-C) Repayable on 28.03.2012 731,000 731,0009.75% Taxable (XXV-B) Repayable on 28.06.2012 1,650,000 1,650,00010.00% Taxable (XXV-C) Repayable on 28.06.2014 2,100,000 2,100,0007.60% Taxable (XXVI) Repayable on 20.01.2013 @ 2,179,000 2,179,0007.10% Taxable (XXVIII) Repayable on 06.03.2013 @@ 320,000 320,0007.40% Taxable (XXIX-A) Repayable on 06.03.2013 @ 314,000 314,0007.60% Taxable (XXIX-B) Repayable on 06.03.2013 @@ 384,000 384,0007.80% Taxable (XXIX-C) Repayable on 06.03.2013 624,000 624,0006.15% Tax free (XXX) Repayable on 08.03.2013 @ 300,000 300,000

64

7.10% Taxable (XXXI-A) Repayable on 31.03.2013 @ 15,000 15,0007.30% Taxable (XXXI-B) Repayable on 31.03.2013 @@ 10,000 10,0007.50% Taxable (XXXI-C) Repayable on 31.03.2013 454,000 454,0007.10% Taxable (XXXI-D) Repayable on 31.03.2013 @@ 70,000 70,0007.30% Taxable (XXXI-E) Repayable on 31.03.2013 25,000 25,0006.10% Tax free (XXXII-A) Repayable on 31.03.2013 @ 10,000 10,0006.50% Tax free (XXXII-B) Repayable on 31.03.2013 35,000 35,0006.70% Taxable (XXXIII-A) Repayable on 29.08.2013 @ 3,151,000 6,886,0006.80% Taxable (XXXIII-B) Repayable on 29.08.2013 @@ 1,380,000 1,380,0006.90% Taxable (XXXIII-C) Repayable on 29.08.2013 1,943,000 1,943,0005.15% Tax free (XXXIV) Repayable on 31.03.2014 500,000 500,0007.00% Taxable (XXXVI-A) Repayable on 29.03.2012 $ 622,000 622,0007.20% Taxable (XXXVI-B) Repayable on 29.03.2012 @ 45,000 45,0007.30% Taxable (XXXVI-C) Repayable on 29.03.2012 985,000 985,0007.30% Taxable (XXXVII-A) Repayable on 20.01.2016 @ 346,000 346,0007.50% Taxable (XXXVII-B) Repayable on 20.01.2016 @@ 168,000 168,0007.80% Taxable (XXXVII-C) Repayable on 20.01.2016 5,900,000 5,900,0008.05% Taxable (XXXIX-A) Repayable on 29.03.2016 @ 176,000 176,0008.12% Taxable (XXXIX-B) Repayable on 29.03.2016 @@ 19,000 19,0008.35% Taxable (XXXIX-C) Repayable on 29.03.2016 1,604,000 1,604,0008.60% Taxable (1-A) 2006-07 Repayable on 29.08.2016 $ 382,000 382,0008.85% Taxable (1-B) 2006-07 Repayable on 29.08.2016 @ 145,000 145,0009.10% Taxable (1-C) 2006-07 Repayable on 29.08.2016 @@ 87,000 87,0009.30% Taxable (1-D) 2006-07 Repayable on 29.08.2016 1,288,000 1,288,0008.65% Taxable (2-A) 2006-07 Repayable on 29.11.2016 $ 2,030,000 2,030,0008.75% Taxable (2-B) 2006-07 Repayable on 29.11.2016 @ 270,000 270,0009.05% Taxable (2-C) 2006-07 Repayable on 29.11.2016 3,698,000 3,698,0007.40% Taxable 2003 ( SD-I) Repayable on 05.03.2013 @ 1,000,000 1,000,0007.90% Taxable 2003 (SD-II) Repayable on 31.03.2013 4,700,000 4,700,0007.70% Taxable 2003 (SD-III) Repayable on 27.03.2013 @@ 1,459,000 1,459,0007.90% Taxable 2003 (SD-IV) Repayable on 28.03.2013 500,000 500,0007.35% Taxable 2003 (SD-V) Repayable on 31.07.2013 3,500,000 3,500,0007.95% Taxable 2006 (SD-I) Repayable on 20.07.2011 5,000,000 5,000,0008.30% Taxable 2006 (SD-II) Repayable on 28.04.2013 5,000,000 5,000,000

65,895,900 71,989,400

HUDCO Gujarat Punarnirman Special Taxfree Bonds

8.75% Tax free Bond Series (I-B) Paid on 06.03.2009 - 161,0009.25% Tax free Bond Series (I-C) Repayable on 06.03.2012 1,309,500 1,309,5008.40% Tax free Bond Series (II-B) Paid on 28.03.2009 - 56,5009.00% Tax free Bond Series (II-C) Repayable on 28.03.2012 1,486,500 1,486,5005.90% Tax free Bond Series (III-B) Repayable on 08.03.2013@@ 75,000 75,0006.40% Tax free Bond Series (IV-A) Repayable on 08.03.2013 @ 500,000 500,0006.80% Tax free Bond Series (IV-B) Repayable on 08.03.2013 160,000 160,000

3,531,000 3,748,500

Bonds - Subordinated Debt under Tier - II Capital # ^^Redeemable Bonds of Rs. 1,00,00,000 eachRepayable at par on 27.03.2012 5,000,000 5,000,000

5,000,000 5,000,000

74,426,900 80,737,900

SCHEDULE D (contd.)




65

LOANS FROM GOVERNMENT OF INDIA UNDER :Line of credit from KfW

(Repayable after 22 years from the date of drawal)5.75% (net) p.a. 529,645 529,645

(Due for repayment within one year Rs.Nil) 529,645 529,645(Previous year Rs. Nil)

LOAN FROM FINANCIAL INSTITUTIONS :

General Insurance Corporationof India and its four subsidiaries #(Repayable within 16th year from the dateof drawal)6.25% p.a. (net) 1,260,173 2,050,120


National Housing Bank #

(Repayable within 6 years from the date of drawal)7.00% p.a. 4,000,000 -

(Due for repayment within one year Rs. 63.30 crore) 4,000,000 -(Previous year Rs.Nil)

Life Insurance Corporation of India #

(Repayable from 2nd to 16th year from the date of drawal)6.25% p.a. 2,833,334 4,466,667


8,093,507 6,516,787

SCHEDULE D (contd.)



66

SCHEDULE D (contd.)



LOAN FROM VARIOUS BANKSAgainst Banking Sector Fund # @@@(Repayable within 16 years from the date of drawal)(Due for repayment within one year Rs. 3381.20 crore)(Previous year Rs. 2163.35 crore)4.00% p.a. 15,125 47,2506.83% p.a. 2,231,243 3,506,2436.90% p.a. - 3,7506.96% p.a. 870,000 -7.00% p.a. 313,750 2,065,3647.37% p.a. 113,250 253,7507.46% p.a. 32,419 75,4197.50% p.a. 571,432 714,2887.60% p.a. - -8.00% p.a. - -8.50% p.a. 3,249,666 5,083,1338.55% p.a. 1,000,000 2,000,0008.75% p.a. 6,750,000 6,750,0008.90% p.a. - 500,0009.00% p.a. 500,000 -9.25% p.a. - 3,600,0009.50% p.a. 1,350,000 750,0009.75% p.a. 2,400,000 1,500,000Term Loan From Banks (PLR) 61,307,677 46,098,992

80,704,562 72,948,189

PUBLIC DEPOSITS 16,656,837 15,885,793

(Due for repayment within one year Rs. 459.70 crore) 16,656,837 15,885,793(Previous year Rs.448.28 crore)

INTEREST BEARING CASH SECURITIES 4,148 35,223

4,148 35,223

LOANS IN FOREIGN CURRENCY

Loan from JBIC *(Repayable from 20 January 2006 to 20 July 2023)- Swapped in two tranches with SBI ## 1,350,053 1,909,505

- Swapped in one tranche with ICICI Bank Ltd. #### 447,700 531,546

1,797,753

- Unswapped portion of JBIC 793,611 -


Loan from Asian Development Bank * ^^^

6 months LIBOR for US $ + 0.40% p.a.** 3,759,384 3,475,121



67

SCHEDULE D (contd.)



Loan from US Capital Market(Guaranteed by USAID and Counter Guaranteedby Canara Bank)

(Repayable from March 2010 to September 2029)6 months LIBOR for US $ + 0.18% p.a. (USAID-1) *** 436,000 436,000

(Repayable from March 2011 to September 2030)6 months LIBOR for US $ + 0.035% p.a. (USAID-2) 1,019,000 905,600(Due for repayment within one year Rs. 1.09 crore) 1,455,000 1,341,600(Previous year Rs. Nil) 7,805,748 7,257,772

190,501,347 186,946,309

* Guaranteed by Central Government as to the repayment of principal and interest.

** HUDCO has received a loan of US $ 100 million from ADB out of which US $ 50 million(received during the years 1997-98 and 1998-99) has been placed as deposit as perarrangement with Bank of India, Cayman Islands Branch, USA. The deposits are co-terminuswith the loan maturity schedule of the underlying ADB loan. The balance US $ 50 million(received during the year 1999-00) has been swapped with EXIM Bank and under thearrangement EXIM Bank has subscribed to 12.75% Special Priority Sector Bonds (II) (rateof interest for the next 7 years reset to 12.50% w.e.f. 15.12.2006) for Rs. 217 crore whichare co-terminus with the loan maturity schedule of the underlying ADB loan. Repayment ofthe above ADB loan and redemption of the corresponding deposit / swap has started w.e.f.15.12.2002 as per the amortisation schedule(s).

*** Under the swap arrangement with EXIM Bank, HUDCO has remitted US $ 10 million to EXIMBank against which EXIM Bank has subscribed to 12.75% Hudco Special Infrastructure Bonds(II) (rate of interest for the next 7 years reset to 12.50% w.e.f. 23.09.2006) amounting toRs. 43.60 crore which are co-terminus with the loan maturity schedule of the underlying USAIDguaranteed loan.

# Covered by irrevocable power of attorney in favour of lenders / trustee and further Loansfrom Banking Sector are covered by irrevocable Power of Attorney to the extent ofRs. 152.38 crore (Previous year Rs. 504.92 crore).

## Swapped with SBI in one tranche of JPY 3792.90 million (Previous year JPY 3792.90 million)(for 10 years upto 16.10.2010) against Rupee funds of Rs. 162.80 crore @ PLR + 0.65% p.a.

### Debentures and Bonds are redeemable at par.

#### Principal only swap amounting to JPY 1746.13 million (Previous year JPY 1746.13 million)entered into with ICICI Bank Ltd. on 25.04.2007 {6½ years (approx.) upto 20.01.2013} againstRupee fund of Rs. 61.54 crore at PoS premium of 7.65% p.a.

$ Put and call option at the end of 3rd year from the date of allotment.

@ Put and call option at the end of 5th year from the date of allotment.

@@ Put and call option at the end of 7th year from the date of allotment.

@@@ Includes Rs. 894.33 crore (US $ 177.51 million) (previous year Rs. 1003.77 crore (US $ 249.88million)) as loans from banks against FCNR Deposits.

^ Put option at the end of 7th year.

^^ Converted to Tier II Capital on 30.03.2004 from 10.15% Taxable 2002 (SD-II) bonds repayableon 27.03.2012.

^^^ Repayable from 15.12.2002 to 15.06.2022.

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69

SCHEDULE FINVESTMENTS



Equity Shares (Long Term)(Trade Investments) 49,719 49,719Less: Provision 30,000 30,000

19,719 19,719Equity Shares ( Long Term ) - Joint Venture 24,030 24,030Less: Provision 3,900 2,289

20,130Bonds 20,392,060 20,584,120

20,431,909 20,625,580Aggregate of quoted investments :Cost 26,000 26,000Market value 19,000 45,344Aggregate of unquoted investments :Cost 20,439,809 20,631,869

(I) Equity Shares (Long Term) (Trade Investments)

(Rs. in thousand)Number Face As at As at

Value (Rs.) 31st March, 2009 31st March, 2008

(A) Quoted InvestmentsIndbank Housing Ltd. 2,500,000 10 25,000 25,000Bhagyanagar Wood Plast Ltd. 100,000 10 1,000 1,000

Total Quoted 26,000 26,000(B) Unquoted InvestmentsTN Urban Finance InfrastructureDev. Corpn. Ltd. 20,000 100 2,000 2,000Cent Bank Home Finance Ltd. 170,000 100 17,000 17,000Intra Consolid (India) Ltd. 100,000 10 1,000 1,000Nagarjuna Ceramics Ltd. * 100,000 10 1,000 1,000Marnite Polycast Ltd. 100,000 10 1,000 1,000Periwal Bricks Ltd. 100,000 10 1,000 1,000Trans Fibre Pipes (I) Ltd. 71,900 10 719 719

23,719 23,719

49,719 49,719(C) Equity Shares (Long Term) - Joint VenturePragati Social Infrastructure &Development Ltd. 130,000 10 1,300 1,300MCM Infrastructure Private Ltd. 260,000 10 2,600 2,600Shristi Urban InfrastructureDevelopment Ltd. 2,000,000 10 20,000 20,000Signa Infrastructure India Ltd. 13,000 10 130 130

24,030 24,030

70

(II) Bonds

(Rs. in thousand)Rate of Number Face As at As at

Interest (%) Value (Rs.) 31st March, 31st March,2009 2008

Karnataka Renewable EnergyDevelopment Ltd. ** 14.00 1,940 100,000 192,060 384,120

Gujarat Electricity Board 11.50 25,000 100,000 2,500,000 2,500,000

West Bengal InfrastructureDev. Finance Corpn. Ltd. 11.85 25,000 100,000 2,500,000 2,500,000

West Bengal InfrastructureDev. Finance Corpn. Ltd. 8.00 50,000 100,000 5,000,000 5,000,000

West Bengal InfrastructureDev. Finance Corpn. Ltd. 8.00 2,000 1,000,000 2,000,000 2,000,000

HP Infrastructure Development Board 11.30 20,000 100,000 2,000,000 2,000,000

J & K Power DevelopmentCorporation Ltd. 11.10 15,000 100,000 1,500,000 1,500,000

A P Power Finance Corporation Ltd. 8.15 2,700 1,000,000 2,700,000 2,700,000

Maharashtra Jeewan Pradhikaran 8.00 2,000 1,000,000 2,000,000 2,000,000

20,392,060 20,584,120

Total Unquoted 20,439,809 20,631,869

* Share Certificates sent for correction but not received back.

** Held with Jammu & Kashmir Bank Depository Services who are showing a balance ofRs. 135.80 crore of Karnataka Renewable Energy Development Ltd., Rs. 100 crore of VidarabhaIrrigation Development Corporation and Rs. 50 crore of Godawari Marathwada IrrigationDevelopment Corporation as a Face Value against Rs. 19.21 crore of Karnataka RenewableEnergy Development Ltd. and rest is Rs. Nil, appearing in HUDCO's books. The difference isbecause of redemption of bonds the intimation of which was not given by investee to DepositoryServices.

SCHEDULE F (contd.)


71

SCHEDULE GLOANS



Loans

Opening Balance 221,486,464 219,402,430Add : Advanced during the year 40,200,854 37,540,289Less : Repayment received during the year 37,339,814 35,456,255

224,347,504 221,486,464

Less : KfW Releases 199,837 431,762

224,147,667 221,054,702

Less : Excess amount (Pending adjustment) 4,954 999

224,142,713 221,053,703

Less : Provision on loans 10,173,197 10,826,657

213,969,516 210,227,046

Add : Interest accrued and due on above 300,174 502,342

214,269,690 210,729,388

Loans and advances considered good in respect ofwhich the company is fully secured by mortgage. 78,321,118 64,391,999

Loans and advances considered good in respect of whichthe company holds guarantees from Government / Banks. 93,113,147 91,876,051

Loans and advances to Central and StateGovernment departments considered good forwhich the company holds no security(The Government guarantee is considered implicit). 52,036,557 62,959,727

Loans and advances considered good for which thecompany holds no security other than the debtor'spersonal security 676,845 826,925

224,147,667 220,054,702

72

SCHEDULE HSUNDRY DEBTORS



UnsecuredDebts outstanding for a period exceeding six months

- Considered good 189,525 74,409 - Considered doubtful 3,200 10,297

192,725 84,706

Less : Provision for doubtful debts 3,200 10,297 189,525

Other Debts

- Considered good 28,650 13,219

218,175 87,628


73

SCHEDULE ICASH AND BANK BALANCES



Cash and Revenue stamps in hand 252 621

Demand Drafts in hand 4,070 -

Stamps in hand (Including franking machine balance) 24 29

Remittance in transit (Inter office) 37 1,571

With Schedule Bank

- In Current Account - Indian Branches * 5,656,745 3,942,168

- In Deposit Account - Indian Branches * 2,766,240 1,854,250

- In Deposit Account - Foreign Branches ** 2,030,184 1,666,12110,453,169

Balance with Reserve Bank of India 66,311 2,198

10,523,863 7,466,958

* Includes Rs. 13.00 crore (Previous year Rs.63.70 crore) in the Deposit account/Flexible Depositand Rs. 0.01 crore (Previous year Rs. 0.10 crore) held under No-lien account of Andrews GanjProject.

** Under lien with Bank of India, Cayman Islands Branch, USA.

74

SCHEDULE JOTHER CURRENT ASSETS



Interest accrued but not due on:

Bonds 726,204 911,079Fixed Deposit with Scheduled Bank- Indian Branches * 3,978 18,610Deposit with Scheduled Bank - Foreign Branches 16,851 25,994Loans 1,531,100 1,062,058

2,278,133 2,017,741Work-in-ProgressOpening balance 710,528 1,292,382Add: Work done during the year- Andrews Ganj project (AGP)

- Consultancy fees - -- Civil work 34,643 11,383- Other expenses 1 36

745,172Less: Work Completed (AGP) 476,090 593,273

269,082

Closing Work In Progress 269,082 710,528

Work Completed 144,122 144,122

144,122 144,122Others

- Amount receivable from Government of India under Jabalpur Earthquake Scheme 50,032 50,032

Less : Provision 50,032 50,032-

- -

2,691,337 2,872,391

* Includes Rs. 0.33 crore (Previous year Rs. 1.69 crore) on Fixed Deposit/Flexible Deposit heldunder No-lien account of Andrews Ganj Project.


75

SCHEDULE KOTHER LOANS AND ADVANCES



Staff loans * 313,335 327,430Add : Interest accrued on above * 110,653 107,293

423,988Less : Provision 930 946

423,058

423,058 433,777

Loan (Secured against Hudco Public Deposits) 91,671 86,634Add : Interest accrued on above 15,515 6,819

107,186 93,453Advances recoverable in cash or in kind or forvalue to be received or pending adjustments:(Unsecured considered good)Advances for works ** 281,091 282,853Employees Advances 3,939 1,700Prepaid Expenses 4,805 4,354Deposit for Services 1,923 2,144Advance against capital purchases 12,053 36,413Advance Income Tax / Fringe BenefitTax (Including TDS) 1,913,669 1,720,059Income Tax Payments subject to litigation 2,148,281 1,973,432Interest Tax Payments subject to litigation 70,233 87,489Others 300,744 284,576

4,736,738Less : Provision 4,580 4,640

4,732,158

5,262,402 4,915,610

* Includes secured by way of mortage of Rs. 35.27 crore (Previous year Rs. 36.04 crore).** Includes Rs. 27.81 crore (Previous year Rs. 27.80 crore) on account of Andrews Ganj Project.

(Rs. in thousand)Particulars As at 31.03.2009 As at 31.03.2008

Due by Directors of the Company 100 130

Due by other officers of the Company 998 -

Maximum amount due at any time during theyear by Directors of the Company 130 130

Maximum amount due at any time during theyear by officers of the Company 1030 93

76

SCHEDULE LCURRENT LIABILITIES



Sundry CreditorsSundry Creditors (Refer Note No.13) 7,355 7,231Security, Earnest money and other deposits 72,832 63,365Amount received in advance 73,534 51,188Liability towards Investors Educationand Protection Fund *

i) Unpaid Debentures - -ii) Unpaid Bonds 240,293 290,238iii) Unpaid Public Deposits 116,316 48,347iv) Interest accrued and due on above 104,840 99,600

KfW R and D account 486,668 451,244KfW Interest account 96,427 85,768Amount received from KfW ** $ 1,037,856 1,119,406Less : KfW Releases 199,837 431,762

838,019Grant / Subsidy received fromdifferent Ministries/Agencies $ 67,388 601,551Amount received/receivableagainst sale of project $$ - 577,878Amount payable to Ministry - AGP 927,156 1,298,466Bank book overdraft in current account 67,092 18Premium for forward sale contractaccrued but not due 286 190Other Liabilities 418,326 654,207Interest accrued but not due - Secured Loans 30,877 31,649 - Unsecured Loans 5,852,867 6,333,273 - Others 51 51

9,400,327 11,281,908

* Liability towards Investors Education and Protection Fund under Section 205C of the CompaniesAct, 1956 will be determined on the respective due dates.

** Includes Principal overdue & interest overdue as on 31.03.2009 amounting to Rs. 4.61 crore(previous year Rs. 9.14 crore) and Rs. 2.78 crore (previous year Rs. 4.73 crore) respectively.

$ Includes Rs. 6.95 crore (previous year Rs. 60.38 crore) (net of refunds) as on 31.03.2009received on account of various Grants / Subsidy. Cummulative Grants / Subsidies receivedas on 31.03.2009 is Rs. 1462.37 crore (previous year Rs. 1478.56 crore) out of whichRs. 1418.71 crore (previous year Rs. 1418.18 crore) has been released. The UtilisationCertificates to the extent of Rs.1220.83 crore has been received and for balance amount ofUtilisation Certificates are being followed up.

$$ Includes Rs. Nil (Previous year Rs. 57.79 crore) being surplus generated in respect of AndrewsGanj Project being undertaken on behalf of Government of India.


77

SCHEDULE MPROVISIONS



Income tax 1,861,000 2,171,800Wealth tax 1,500 1,200Fringe benefit tax 8,500 8,500Leave encashment 130,302 117,204Post-retirement medical benefit 565,616 522,818Gratuity 47,175 86,933Welfare expenses 3,795 3,679Leave travel concession 108,431 98,574Pay revision 240,000 82,078Interim Dividend - 263,450Proposed Final Dividend 452,429 417,596Dividend Tax 76,890 115,744

3,495,638 3,889,576

78

SCHEDULE NINCOME FROM LOANS, INVESTMENTS, DEPOSITS AND OTHERS



Interest on Loans 24,976,391 23,177,783Less: Penal Interest waived off 570,118 1,190,533

24,406,273

Interest on Bonds * 1,963,830 2,275,663Other Income on loans ** 153,590 438,349Less: Prepayment charges waived off 19,000 -

134,590Other income on Bonds 1,940 1,940Dividend on long term investments 120 172Interest on Staff Advances 11,336 11,502Interest on Loans against Public Deposits 8,976 7,395Interest on Fixed Deposits- Scheduled Banks - Indian Branches 151,387 622,315- Scheduled Banks - Foreign Branches 72,466 98,201

223,853Overhead charges on construction project 7,479 348Consultancy *** 228,473 142,381Management Development Programme $ 2,190 5,288Rental income $$ 92,956 79,197Profit on sale of fixed assets (Net) 441 305Translation/Exchange Gain on Foreign Currency Loan - 385,887

27,082,457 26,056,193

* Tax Deducted at Source Rs. 37,76,12,403/- (Previous year Rs. 45,70,09,727/-).

** Tax Deducted at Source Rs. 63,652/- (Previous year Rs. 63,652/-).

*** Tax Deducted at Source Rs. 4,17,530/- (Previous year Rs.14,38,203/-).

$ Tax Deducted at Source Rs. 15,016/- (Previous year Rs. 4,315/-).

$$ Tax Deducted at Source Rs. 2,06,61,704/- (Previous year Rs. 1,87,08,285/-).


79

SCHEDULE OINTEREST AND OTHER CHARGES



Interest on Secured loans 233,896 235,960Interest on Unsecured loans- Indian Currency 15,477,521 16,105,507- Foreign Currency - Unswapped 47,030 34,517 - Swapped 608,579 702,947Government Guarantee Fee 43,156 47,164Premium on Forward Sale Contract 9,663 8,710Miscellaneous expenditure written Off 95,562 89,417Translation / Exchange Loss on Foreign Currency Loan 2,462,948 -Other Expenses on loans 46,140 31,896

19,024,495 17,256,118

80

SCHEDULE PPERSONNEL EXPENSES



Directors * Total Directors * Total

Salaries, Allowances and Other Amenities ** 2,848 693,556 2,527 760,572

Group Saving Linked Insurance Premium 1 244 1 252

Gratuity ** - 27,303 - 54,749

Insurance ** - 424 - 546

Welfare - 4,491 - 8,242

Staff Development / Training 123 2,446 2 1,365

Contribution to Provident / Pension Fund 146 28,051 135 30,096

Administrative Charges 3 506 3 457

Contribution to Benevolent Fund 1 491 1 470

3,122 757,512 2,669 856,749

* Included in total.** Includes provision/payment for directors.


81

SCHEDULE QADMINISTRATIVE AND OTHER EXPENSES



Directors * Total Directors * Total

ADMINISTRATIVE EXPENSES

Office Rent - 6,844 - 8,640Repair and Maintenance to Building - 37,887 - 24,352Repair and Maintenance of Other Assets - 12,338 - 11,109Repair and Maintenance of Vehicle - 3,782 - 3,818Insurance - 908 - 990Rates and Taxes - 6,573 - 12,390Travelling 5,969 34,270 2,550 27,811Legal and Professional Fee - 17,126 - 9,369Auditors Remuneration : - Audit Fees

- Current Year - 450 - 450- Previous Year - - - 150

- Tax Audit Fees- Current Year - 225 - 225- Previous Year - - - 75

- In Other Matters - 590 - 725 - Out of Pocket Expenses - 315 - 322Electricity - 11,969 - 11,145Printing and Stationery - 5,616 - 5,013Postage, Telegram, Telephone and Telex - 11,154 - 13,207Advertisement, Publicity and Sponsorship - 16,291 - 9,356Exhibition and Conference (Net) - 1,160 - 448Subscription and Membership 22 1,929 31 1,890Miscellaneous # 702 53,012 250 42,279

6,693 222,439 2,831 183,764

OTHER EXPENSES

Grant in Aid / Research andDevelopment Expenditure - 5,640 - 8,379

Expenses on Consultancy - 6,749 - 7,669

Expenses on ManagementDevelopment Programme - 4,491 - 3,062

Expenses on Completed Project - 1,989 - 7,279

Waiver of Instalments - 1 - 30

Early Redemption Expenses - 11 - 80

- 18,881 - 26,499

6,693 241,320 2,831 210,263

* Included in total.# Includes Rs. 3,17,000/- (Previous year Rs. 1,03,500/-) on account of sitting fee paid to Directors.

82

SCHEDULE RPRIOR PERIOD ADJUSTMENTS



INCOME

Salary allowances and other benefits 54,730 -Insurance - 586Publicity - 102Legal charges 366 -Consultancy fee 1,613 4,979Trusteeship & Consortium fee 400 -Interest on loan 1,141 -Interest on borrowings 2,733 -Depreciation 5,689 -Miscellaneous receipt 709 255

67,381 5,922

EXPENDITURE

Salary allowances and other benefits - 125Office rent 70 9Repairs and maintenance 2,851 4,438Rates and Taxes - 101Water & Electricity 1,188 -Legal charges - 2,506Grant in aid 125 -Interest on loan - 128Interest on borrowings - 570Expenses on bonds and other borrowings - 104Other Expenses 614 839

4,848 8,820

Excess of Income over Expenditure/ 62,533 (2,898)(Expenditure over Income)


83

SCHEDULE SSIGNIFICANT ACCOUNTING POLICIES

1. Basis of Preparation of Financial Statements

The accounts of the Company have been prepared under the historical cost convention inaccordance with generally accepted accounting principles in India, the provisions of theCompanies Act, the accounting standards issued by the Institute of Chartered Accountants ofIndia / Companies (Accounting Standard) Rules, 2006 and the Housing Finance Companies(NHB) Directions, 2001 issued by National Housing Bank (NHB) as adopted consistently by theCompany.

2. Revenue Recognition

(a) Income is recognised in accordance with Accounting Standard AS-9 on "RevenueRecognition" issued by the Institute of Chartered Accountants of India except income fromNon Performing Assets (NPA) which is recognised as per the prudential norms issued byNHB.

(b) The application fees, front-end-fees, administrative fees and processing fees on loans areaccounted for on realisation.

3. Deferred Revenue Expenditure

The ancillary cost of raising the borrowings namely brokerage charges, arranger's fees, stampduty, etc. are deferred to be amortized in equal annual instalments over the period of borrowingeffective from the year of respective borrowing including moratorium period. In the case of publicissue of bonds, the amount of brokerage charges/commission is treated as deferred expenditureto be amortized in annual instalments over the maximum maturity period of bonds from the yearof allotment.

4. Provision on Non Performing Assets

Non-performing assets are identified and categorized into Sub-standard, Doubtful and Losscategory based on the guidelines issued by NHB. Provisions for Non-performing assets aremade in accordance with the said guidelines.

5. Grants and Subsidies

(a) The Company acts as a channelising agency for disbursement of grants / subsidies undervarious schemes of the Government and Government Agencies. The Company receivesthe amount of such grants/subsidies and disburses them to eligible parties in accordancewith the schemes of the relevant grants/subsidies. The undisbursed grants / subsidies asat the year-end are shown as a part of Current Liabilities. Where grants/ subsidies disbursedexceed the related amount received, such amount receivable from Government /Government Agencies is shown as a part of other Loans and Advances.

(b) Grants received from KfW, a German financing agency, in respect of certain schemes foreconomically weaker sections / low-income groups are also dealt with in the mannerdescribed at (a) above. Interest earned on loans given under certain specified schemesis shown under "Current Liabilities" and is utilised as per the terms of the agreement withKfW.

84

6. Fixed Assets and Depreciation

(i) Tangible Assets

(a) Fixed assets are shown at historical cost less accumulated depreciation. In case ofproperties where lease (sub-lease) / conveyance deed is yet to be executed, the costis increased by an estimated amount of ten percent of cost of acquisition towardsstamp duty/registration charges.

(b) Land / Buildings are classified into leasehold and freehold. Cost of leasehold land isamortized over the period of lease on straight-line basis.

(c) Flats / Buildings are capitalized at cost including the stamp duty / registration chargesetc. and the total value so arrived at is shown under Flats / Buildings till separatedetails of cost of land and building is available.

(d) Payments made for Land / Buildings / Flats where allotment cum possession ispending are shown under Advance against Capital Purchases.

(e) Fixed assets received free of cost from Government are recorded at a nominal amountof Rupee one only. Fixed assets acquired out of grants from Government are takenat the acquisition cost to the Company and the related grants are shown separately.Such assets are also depreciated in the normal manner. The depreciation for the yearis arrived net of depreciation on grant assets.

(f) Depreciation is provided on written down value method, in accordance with the ratesspecified in Schedule XIV of the Companies Act, 1956, except:

(i) On assets costing upto Rs.5000/- per item which are clubbed under "MiscellaneousAssets" and depreciation thereon is provided @100%.

(ii) On Mobile phones which are depreciated @ 45% p.a. on straight line methodand after 2 years residual value of 10% is recovered.

(ii) Intangible Assets

In accordance with Accounting Standard AS-26, "Intangible Assets" are valued at cost lessaccumulated amortization. Computer software is amortised over a period of five years.

7. Investments

Long term investments are carried at cost. A provision for diminution is made to recognize adecline, other than temporary in the value of long term investments as per Accounting StandardAS-13 "Accounting for Investments" issued by the Institute of Chartered Accountants of Indiaand the guidelines issued by the NHB.

8. Foreign Exchange Transactions

(a) Foreign exchange transactions are recorded at the rates prevailing on the dates of therespective transactions.

(b) Monetary Assets and liabilities denominated in foreign currencies are restated at theexchange rate as on the date of Balance Sheet except in respect of transactions whereforward rate contract is taken.

SCHEDULE S (contd.)


85

(c) Exchange differences resulting from restatement of assets or liabilities or from settlementof transactions are recognised in the Profit and Loss Account.

(d) In respect of forward exchange contracts, other than for trading or speculation purposes,the difference between the forward rate and the rate at the date of transaction is recognizedas income or expense over the life of the forward exchange contract. Any profit or lossarising on cancellation or renewal of forward exchange contracts is recognised as incomeor expense for the year.

9. Employees Benefits

(a) Expenditure on contributions to Provident Fund, Group Saving Linked Insurance Schemeand Employees' Pension Scheme is accounted for on accrual basis in accordance with theterms of the relevant schemes and charged to Profit & Loss Account. The Corporation'sobligation towards gratuity to employees and post retirement medical benefits are actuariallydetermined and provided for as per AS-15 (Revised) Employee Benefits.

(b) The Corporation's obligation towards sick leave, earned leave, leave travel concession, gifton completion of 20 years of service & retirement gift are actuarially determined andprovided for as per AS-15 (Revised) Employee Benefits.

10. Taxation

(a) Tax expense comprises of current, deferred and fringe benefit tax. Current incometax, wealth tax and fringe benefit tax is measured at the amount expected to be paid totax authorities in accordance with the Indian Income Tax Act/ Wealth Tax Act.

(b) In respect of disputed income tax / interest tax / wealth tax demands, where the Companyis in appeal, provision for tax is made when the matter is finally decided.

(c) Deferred Tax is recognized, subject to consideration of prudence on timing differences,representing the difference between the taxable income and accounting income thatoriginated in one period and are capable of reversal in one or more subsequent periods.Deferred Tax assets and liabilities are measured using tax rates and the tax laws that havebeen enacted or substantively enacted by the Balance Sheet date.

11. Provisions, Contingent Liabilities and Contingent Assets

(i) Provisions are recognized for liabilities that can be measured only using a substantialdegree of estimation, if :

(a) the Company has a present obligation as a result of past event.

(b) a probable outflow of resources is expected to settle the obligation and

(c) the amount of obligation can be reliably estimated.

Reimbursements expected in respect of expenditure required to settle a provision isrecognized only when it is virtually certain that the reimbursement will be received.

(ii) Contingent liability is disclosed in the case of:

(a) a present obligation arising from past events, when it is not probable that an outflowof resources will be required to settle the obligation.

(b) a possible obligation, unless the probability of outflow of resources is remote.

Provisions, Contingent Liabilities are reviewed by the management at each Balance Sheet date.

(iii) Contingent assets are neither recognised nor disclosed.

SCHEDULE S (contd.)

86

SCHEDULE TNOTES FORMING PART OF THE ACCOUNTS

1) Contingent Liabilities not provided for :

(Rs. in crore)

2008-2009 2007-2008

A Claims of Contractors not acknowledged as debts 8.93 20.64

Counter claims of the Company 0.75 0.75

B Demand of maintenance charges & reserve fund inrespect of office premises. - 0.22

C Demand (including penalty) on account of payment ofguarantee fee on SLR debentures guaranteed byGovernment of India 31.50 30.87

D Disputed Income tax and Interest tax demands againstwhich Company has gone in appeal. Out of this, theCompany has deposited Rs. 217.99 crore(previous year Rs. 202.24 crore) under protest 233.31 216.51

E Disputed Service tax demands against which Company hasgone in appeal. The Company has paid Rs. 31,117.00(previous year Rs. Nil) 1.37 -

F Counter claims of various parties for damages againstCompany's claim before various Debt Recovery Tribunals 309.22 309.16

G Estimated amount of commitments remaining to beexecuted on capital account 2.08 7.97

2) (a) The above does not include contingent liabilities in respect of Andrews Ganj Project (AGP)executed on behalf of Government of India, arising on account of various court cases /arbitration / allottees claims against cancellation of allotment etc. As such, liability wheneverascertained / finalised shall be met out of AGP project surplus funds.

(b) The Company has undertaken Andrews Ganj Project (AGP) on behalf of the then Ministryof Urban Affairs (MOUA). As per perpetual lease deed, the Company is liable to makeavailable net resources from the development and disposal of properties of the project tothe Ministry and accordingly the Company was paying interest on net resources generatedon the project upto 3.11.2004 and thereafter a separate no lien account has been openedunder the name of HUDCO AGP Surplus Account into which the surplus lying to their credithad been deposited and interest accrued / earned on no lien account is being credited tothat account. MOUD has intimated that the Company cannot pass on the financial liabilityto the Government on account of disputes. However, the Company has represented thatas per perpetual lease deed, the Company is liable to make available "net resourcesgenerated" from the development and disposal of properties of the project to the Ministrywhich means that all out-goings on the project including those on litigation & arbitrationexpenses and award / decree etc., in respect of disputes have to be debited to this projectand as such there is no liability of the Company.

(c) An amount of Rs. 17.98 crore was initially deposited with Municipal Corporation of Delhi(MCD) on account of property tax of Andrews Ganj Project for the period upto 4th July, 1997i.e. upto the execution of perpetual lease deed although there was no liability of propertytax on HUDCO. The Hon'ble Supreme Court decided in favour of HUDCO and the entireamount of Rs.17.98 crore along with interest amounting to Rs. 20.15 crore is recoverablefrom MCD upto 31.3.2009, out of which an amount of Rs. 11.46 crore has been refundedby MCD on 3.10.2005 which has been adjusted against interest. No demand has beenraised by MCD for payment of property tax for the period after 4th July, 1997. In case ofany demand from MCD after 4th July, 1997, the same will be met out of the AGP Surplus


87

Account. Moreover as per opinion of Solicitor General of India no property tax is payableon the land owned by Government of India. Further, HUDCO filed Contempt petition againstMCD in Supreme Court. MCD vide their counter affidavit has pleaded a set off ofRs. 27.92 crore as against Rs. 25.06 crore (payable as on 30.6.2008) demanded byHUDCO. HUDCO will file rejoinder to the affidavit of MCD.

(d) The Company had allotted a hotel site including car parking space to M/s. M S Shoes EastLimited (MSSEL). Due to default in payment of installments, the Company had cancelledthe allotment of hotel site including car parking space and forfeited the first installment paidby MSSEL in terms of the allotment letter. The hotel site including car parking space wassubsequently re-allotted to M/s. Leela Hotel Ltd. (LHL) erstwhile (M/s. Leela Hotel andConvention Center) now known as Hotel Leela Venture Ltd. subject to the final outcomeof the decision of Hon'ble Additional District Judge on the suit filed by MSSEL. At present,the matter is sub-judice before Tis Hazari Court, Delhi. The possession of the hotel siteand car parking space, which was handed over to LHL, has been taken back by theCompany because of cancellation as per allotment terms due to non-payment of 3rd andfinal installment by LHL. On 12.7.1999, 50 percent of the amount deposited, by LHL wasforfeited and balance amount of Rs. 67.53 crore was refunded to LHL after adjusting theoverdue ground rent and property tax dues. LHL, against this cancellation, sought arbitrationwherein the Learned Arbitrator has passed an award directing the Company to refund theamount forfeited along with interest. The award has been upheld by the Single Bench ofHon'ble High Court of Delhi and the amount of Rs. 89.78 crore, being balance principalamount, was deposited by HUDCO in the Hon'ble High Court of Delhi as per Courtdirections. The payment was made out of AGP Surplus and has since been released byHon'ble High Court of Delhi to LHL. The Company's appeal against the Order of SingleBench before the Double Bench of Hon'ble High Court of Delhi has also been dismissed.The Company has filed SLP before the Hon'ble Supreme Court against the orders of DoubleBench. The Hon'ble Supreme Court has admitted HUDCO's SLP and has stayed therecovery of interest amount. However, the Hon'ble Supreme Court has directed theCompany to deposit 50% of the balance decreed amount consisting of interest in theexecuting court i.e. Hon'ble High Court of Delhi. The Company has accordingly depositedRs. 59.61 crore in the Hon'ble High Court of Delhi on 23.3.2006 out of HUDCO AGP SurplusAccount and amount has been released by the High Court to Leela Hotels on furnishingof bank Guarantee on 12.10.2006. The case came up for final arguments on 12.2.2008before Supreme Court of India. The Hon'ble Supreme Court of India upheld the award dated25.6.2002 passed by the Justice R.S. Pathak (ex-Chief Justice of India) except for theinterest for pre-award period which has now been reduced by Hon'ble Supreme Court ofIndia from 20% p.a. to 18% p.a. and dismissed the SLP filed by HUDCO.

LHL has filed execution petition No. 48 of 2006 before High Court of Delhi. HUDCOcalculated the balance amount payable to LHL as Rs. 48.09 crore and filed an applicationbefore the Executing Court for the payment. The said amount has been paid to LHL asper Court Order on 12.5.2008. As per calculation of HUDCO, nothing remains payable afterthe last payment of Rs. 48.09 crore. The amount paid by HUDCO has been calculated byHUDCO by adjusting the amount first towards principal and then towards interest. However,LHL have calculated the amount payable by HUDCO after adjusting the payments firsttowards interest and then towards principal.

The issue of adjustment of amount paid by HUDCO came up for hearing before the SingleJudge Bench of the High Court of Delhi (i.e. Executing Court) on 19.11.2008. High Courthas ordered that HUDCO should make the payment by adjusting the amount paid towardsinterest first then towards the principal and that HUDCO should make the payment as percalculation of decree holder (i.e. LHL).

HUDCO has filed execution first appeal before the Division Bench of the High Court on3rd January, 2009 against the Single Judge order dated 19.11.2008. HUDCO vide this

SCHEDULE T (contd.)

88

application has deposited amount of Rs. 50.54 crore with the High Court to the satisfactionof decree, without prejudice to HUDCO's rights and contentions in the appeal. Further,appeal of HUDCO is coming up for final disposal on 15.7.2009.

LHL application for attachment of HUDCO property came up for hearing on 15.5.2009whereby Single Judge of High Court ordered that amount of Rs. 50.54 crore depositedby HUDCO can be released in favour of LHL. Further, Single Judge ordered that forthe rest of the amount LHL should wait for 15.7.2009 on which day HUDCO shall pressfor stay before Division Bench. In case no stay is granted by Division Bench the decreeshall be further executed. In case HUDCO succeeds in appeal, the amount withdrawnby LHL shall be returned to HUDCO with the same rate of interest which has been allowedto LHL under this decree. The next date fixed for hearing is 30.7.2009 i.e. after the finaldisposal of appeal.

(e) The allotment of 9 blocks of guest houses and restaurants, kitchens and shops, which wereallotted to MSSEL, was cancelled and first installment paid by MSSEL was forfeited as perterms of allotment letter. MSSEL filed suit in the Hon'ble District Court Delhi. Further, onan appeal filed by HUDCO against the interim order of Hon'ble District Court, Delhi, theHon'ble High Court of Delhi has transferred the case to itself by directing the MSSEL topay the ad-valorem court fee on the suit amount which has since been paid by MSSEL.At present, the case is pending with Hon'ble High Court of Delhi. MSSEL has filed twoapplications seeking HUDCO to produce 324 original documents and L&DO to produce 209documents. The reply has been filed by HUDCO along with application for framing ofpreliminary issues. MSSEL has filed the reply to the application filed by HUDCO. HUDCOhas filed two applications one for the vacation of stay and other for the rejection of plaint.

(f) The arbitrator has passed an award in respect of allotment of site in Shopping Arcade toM/s. Ansal Properties and Industries Ltd. (APIL) on 28.7.2005 in favour of APIL directingHUDCO to pay Rs. 8.84 crore and further interest @18% p.a. from 1.8.2005 till payment.Arbitrator has allowed the counter claim of HUDCO and directed APIL to pay approximatelyRs. 0.85 crore maintenance charges as billed by M/s. Habitat Services Centre (HSC) w.e.f.1.1.2001 upto 31.7.2005 within 3 months from the date of award failing which APIL shallhave to pay interest thereon @18% p.a. HUDCO has challenged the award before theHon'ble High Court of Delhi and, as per the directions of the Court, has deposited a sumof Rs. 7.99 crore in the Court out of HUDCO AGP Surplus Account to save future interestliability which has since been released to APIL by the court against the security of BankGuarantee. The matter is now in category of final and will come up for hearing in due course.

(g) APIL has invoked arbitration for refund of ground rent paid by it from the date of handingover the possession i.e. November, 1995 to the date of commercial use of the shoppingarcade by APIL i.e. October, 1999 and the arbitrator has pronounced the award on21.7.2006 holding therein that APIL is not liable to pay the ground rent up to October 1999till meaningful possession was given to APIL i.e. till the shopping arcade was constructedand become operational in October 1999. The amount of Rs. 3.93 crore deposited by APILearlier has been directed to be adjusted towards the future ground rent payment due w.e.fNovember 1999. Interest @ 7% p.a. for the delayed payment has also been awarded bythe arbitrator w.e.f. November 1999. HUDCO has filed petition u/s. 34 of Arbitration andConciliation Act challenging the award before the Hon'ble High Court of Delhi. Further, theHon'ble High Court of Delhi has directed APIL to pay the overdue Ground Rent from October1999 to October 2003 in 24 monthly installments starting from September 2005. APIL haspaid the same monthly installment of Rs. 0.49 crore and same has been deposited withL&DO as per lease conditions. HUDCO has again filed the Company Petition u/s. 433 &434 of the Companies Act against APIL for winding up before the Hon'ble High Court ofDelhi due to non-payment of Ground Rent and interest thereof by APIL from October, 2003onwards. Company Petition filed in May 2006. Pleadings are complete and the matter isnow fixed for final hearing.

SCHEDULE T (contd.)


89

3) Debentures / Bonds / PDS aggregating to Rs. 46.14 crore towards interest and principal(Previous Year Rs. 36.66 crore) were due and unclaimed as on 31st March 2009. An amountof Rs. 0.016 crore (Previous Year Rs. 0.22 crore) {excluding sub-judice amount of Rs. 1.13 crore,(Previous Year Rs. 1.13 crore)} which is unclaimed for a period of seven years from the duedate of interest payment has since been deposited in "Investor Education and Protection Fund".

4) As against the total FCNR (B) / FCTL loan of Rs. 894.33 crore (USD 177.51 million) outstandingas on 31.3.2009 (Previous Year Rs. 1,003.77 crore / USD 249.88 million), forward contractshave been taken for Rs. 59.90 crore / USD 13.74 million (Previous Year Rs. 59.90 crore / USD13.74 million).

5) (a) Letters seeking confirmation of outstanding balances at each quarter end have been sentto all the borrowers except cases under litigation. Confirmation in some cases is awaited.In some of the cases where agencies have informed different balances, reconciliation isunderway.

(b) The details of provisions on Loans are as under:

(Rs. in crore)

Particulars Opening Provided Closingbalance (adjusted) balance

as on during as on1.4.2008 the year 31.3.2009

Provision as per NHB Norms 767.67 69.65 837.32

Provision over and above NHB Norms 315.00 -315.00 -

Provision over and above NHB Normsas on 31.3.2009 - 180.00 180.00

Total 1,082.67 -65.35 1,017.32

During the year the Company has made a provision of Rs. 180 crore (Previous YearRs. 315 crore) which is over and above NHB Norms. This is considered prudent keepingin view the adverse market conditions and down turn in overall economy.

(c) At the instance of Government of Kerala, the Company had granted a Default ResolutionPackage to M/s. Cochin International Airport Ltd. (CIAL) and entered into an agreementdated 7.3.2003, according to which, CIAL had agreed to allot equity shares of Rs. 52 crore(being 26% of equity share capital of CIAL) at par value of Rs. 10/- per equity share. CIALinstead of allotting the shares of Rs. 52 crore sent repayment of the entire balance loantogether with interest upto 15th September, 2004 vide its letter dated 16.9.2004 amountingto Rs. 63.49 crore as per their calculation, which was not accepted by the Company.

Since the CIAL did not agree to the Company's demand of allotting equity shares worthRs. 52 crore (equivalent to 26% of the capital at par) to the Company, the Company fileda case before Debt Recovery Tribunal (DRT) at New Delhi. Stay has been obtained asan interim order dated 27.4.2006 restraining CIAL from creating any third party interest inRs. 52 crore worth, 26% of the CIAL equity shares agreed to be issued to the Company.Against this, the agency has filed two interim applications before DRT, Delhi challengingthe jurisdiction of DRT, Delhi and getting the stay vacated. CIAL has also deposited anamount of Rs. 73.31 crore with Registrar, DRT-I Delhi Account indicating the same as theirliability as per their calculations. However, the Company has not withdrawn the money.Interim Application for jurisdiction was dismissed and matter was fixed for filling ofreplication and original documents by HUDCO. Against the dismissal of jurisdiction petitionagency has filed writ petition before High Court, wherein High Court has stayed theproceedings before DRT.

SCHEDULE T (contd.)

90

An application was also made to CIAL and Government of Kerala under the Right toInformation Act-2005, for getting information relating to increase in share capital which wasdenied by agency. Accordingly, a complaint is also filed before State InformationCommission against CIAL.

A contempt petition was also filed in February, 2007 against CIAL and others forincreasing the authorized share capital of CIAL and thereby violating the DRT's injunctionorder dated 27.4.2006. The contempt petition filed by HUDCO against the ManagingDirector and others for violating the said interim order dated 27.4.2006 was dismissed.HUDCO has filed an appeal against the order of DRT in Debt Recovery Appellate Tribunal(DRAT) and the same is fixed for arguments. The matter is being followed up with StateGovernment and CIAL for issue of equity shares pending which the total outstanding ason 31.3.2009 is being shown against CIAL as a loan till allotment of shares by CIAL tothe Company to the extent of Rs. 52 crore (equivalent to 26% of the equity capital ofCIAL) during intrequnum period.

Till the conclusion of the DRT preceding the loan has been classified as NPA and necessaryprovision has been made as per NHB norms.

6) Housing Loans granted by the Company under HUDCO Niwas Scheme are secured fully / partlyby :

(a) Equitable Mortgage of the property and / or

(b) Undertaking to create security through execution of Tripartite Agreement between theCompany, borrower and the Developing Authority / Developer ;

In addition to (a) & (b) above, the assignment of Life Insurance Policies, pledge of NationalSaving Certificates, Fixed Deposits, etc. are also obtained in certain cases.

7) The Company has continued the practice of restating monetary assets / liabilities at theexchange rate as on the date of Balance Sheet and accordingly a foreign currencyfluctuation loss of Rs. 199.83 crore (Previous Year gain of Rs. 11.95 crore) on restatementof monetary liabilities and a loss of Rs. 46.47 crore (Previous Year gain of Rs. 26.64 crore)on actual payment of loan liability during the year has been charged to the Profit & LossAccount.

8) A provision of Rs. 15.79 crore has been made in the accounts for the year towardsimplementation of pay revision as per order of Department of Public Enterprises, pending fixationof pay of employees. The accumulated provision stood at Rs. 24 crore as at 31.3.2009.

9) The Company has adopted AS-15 (revised 2005) 'Employees Benefits'. Defined employeebenefit schemes are as follows:

(a) Company pays fixed contribution of Provident Fund at a predetermined rate to a separatetrust, which invests the funds in permitted securities. The trust is required to pay a minimumnotified rate of interest on contribution to the members of the trust. The fair value of theassets of the Provident Fund including the returns of the assets thereof, as at 31.3.2009is greater than the obligation under the defined contribution plan.

(b) The Company has a defined benefit gratuity plan. Every employee is entitled to gratuityas per the provision of the payment of Gratuity Act, 1972. The scheme is funded by theCompany and is managed by a separate trust. The liability of Gratuity is recognized onthe basis of actuarial valuation as at the year end.

(c) The summarized position of various defined benefit schemes recognised in the Profit & Loss

SCHEDULE T (contd.)


91

10) The Company is not able to comply with National Housing Bank's credit concentration norms inrespect of lending to some State Government / Government Agencies, which state that a HousingFinance Company's agency wise exposure should not exceed 15% of its net owned funds.

11) Income Tax as applicable in respect of Interest accrued on bonds / debentures which are notlisted on recognized Stock Exchange, is deducted at source at the time of actual payment ofinterest to the bondholders / debenture holders since bonds / debentures are transferable byendorsement & delivery.

SCHEDULE T (contd.)

(Rs. in crore)

Gratuity Leave Encashment PostRetirement

MedicalBenefits

EL HPL

2008- 2007- 2008- 2007- 2008- 2007- 2008- 2007-2009 2008 2009 2008 2009 2008 2009 2008

1. Component of Employer Expenses

a. Current Service Cost 0.98 0.88 0.62 0.6 0.29 0.25 3.04 2.92

b. Interest Cost 0.96 0.99 0.57 0.56 0.25 0.23 3.66 3.8

c. Expected return on plan assets -0.94 -0.78 0 0 0 0 0 0

d. Actuarial (Gain) / Loss -0.41 -0.03 -0.26 0.17 0.23 0.27 -1.73 -1.43

e. Total Expenditure/(Gain) 0 0 0 0 0 0 0 0

f. Recognised in the P&L A/c. 2.74 1.06 0.93 1.33 0.77 0.75 4.97 5.29

2. Net Asset / (Liability) recognised inBalance Sheet as at 31.3.2009

a. Present value of Obligation as at 31.3.2009 16.63 13.74 8.84 8.21 4.19 3.51 56.56 52.28

b. Fair Value of plan assets as at 31.3.2009 11.91 10.03 0 0 0 0 0 0

c. Assets/(Liability) recognised in Balance Sheet -4.72 -3.71 -8.84 -8.21 -4.19 -3.51 -56.56 -52.28

3. Change in present value of obligationas on 31.3.2009

Present Value of obligation as at 31.3.2008 13.74 12.28 8.20 7.02 3.52 2.81 52.28 47.53

Current service cost 0.98 0.88 0.62 0.6 0.29 0.25 3.04 2.92

Interest Cost 0.96 0.99 0.57 0.56 0.25 0.23 3.65 3.8

Actuarial (Gain) / Loss -0.45 -0.01 -0.26 0.17 0.23 0.27 -1.73 -1.43

Benefits Paid -0.76 -0.4 -0.30 -0.14 -0.10 -0.05 -0.70 -0.54

Present Value of obligation as at 31.3.2009 16.63 13.74 8.84 8.21 2.81 3.51 56.56 52.28

4. Change in the Fair Value of Plan Assets

Present value of plan assets as on 31.3.2008 10.03 8.36 0 0 0 0 0 0

Actual return on Plan Assets 0.91 0.8 0 0 0 0 0 0

Actual Company Contribution 1.72 1.27 0 0 0 0 0 0

Benefits Paid -0.75 -0.4 0 0 0 0 0 0

Fair Value of Plan Assets as at 31.3.2009 11.91 10.03 0 0 0 0 0 0

5. Actuarial Assumptions

Discount Rate (per annum) 7 8 7 8 7 8 7 8

Expected rate of returns on assets (p.a.) 9.40 9.3 0 0 0 0 0 0

Future cost increase 5.0 5.5 5.0 5.5 5.0 5.5 5.0 5.5

6. Details of the Plan Assets at costas on 31.3.2009

Government of India Securities, CorporateBonds etc. 0 0

Gratuity Fund Managed by Insurer 100% 100%

❖ The estimates of future salary increase, pay revision increase, account inflation, seniority, promotion and other relevantfactors considered in actuarial valuation.

Account, Balance Sheet and the funded status are as under:

92

12) The Company has accounted for Deferred Tax Liability of Rs. 120.97 crore on Special Reservecreated under Section 36(1)(viii) of the Income Tax Act, 1961 by adjusting against GeneralReserve during the year 2004-2005. According to subsequent opinion of the Institute ofChartered Accountants of India (ICAI), the above Deferred Tax Liability for years 2001-2002 to2003-2004 should be treated as 'Prior Period Item' by crediting General Reserve and debitingto Profit and Loss Account. One of the PSU has represented to the ICAI against above opinioncovering HUDCO's case as well. In view of this, rectification as suggested by the ICAI regardingcreation of DTL on Special Reserve for the period 2001-2002 to 2003-2004 by charging to Profitand Loss Account and crediting the reserves by Rs. 120.97 crore has not been carried out.

The Institute has maintained their earlier opinion even for the subsequent request for reviewof above opinion. Accordingly, the Company has treated amount of Rs. 120.97 crore as "priorperiod item" by crediting General Reserve and debiting to Profit & Loss Account.

13) The Company has not received information from vendors / suppliers regarding their status underthe "Micro, Small and Medium Enterprises Development Act, 2006" and hence disclosure relatingto amount unpaid at the year end together with interest paid or payable under this Act has notbeen given.

14) There are no separate business / geographical reportable segments as per the AccountingStandard AS-17 "Segment Reporting" since the main business of the Company is to providefinance for Housing / Infrastructure projects and all other activities of the Company revolvearound the main business.

15) Provision of Impairment loss as required under Accounting Standard AS-28 "Impairment ofAssets" is not necessary, as in the opinion of management; there is no impairment of assetsduring the year.

16) The Company's significant leasing arrangements are in respect of operating leases for officepremises. These leasing arrangements which are not non-cancelable range between 1 and 30years generally, or longer, and are usually renewable by mutual consent on mutually agreeableterms. The aggregate lease rentals payable are charged as Office Rent under Schedule-Q ofthe Profit & Loss Account.

17) Details of Expenditure / Earnings in foreign currency :

(Rs. in crore)

Particulars 2008-2009 2007-2008

Expenditure

a) Traveling & Entertainment 0.19 0.07

b) Others 0.01 0.02

c) Interest on foreign loan 12.64 13.56

Earnings

a) Interest on foreign deposit 8.35 10.30

18) Earnings Per Share:

Particulars Year ended Year ended31.3.2009 31.3.2008

Net Profit for the year attributable to equityshareholders (Rs. in crore) (a) 400.99 373.73

Weighted Average number of Equity Shares (b) 2,00,19,000 2,00,19,000

Basic / Diluted Earning Per Share ofRs. 1000/- each (Rs.) (a / b) 200.30 186.69

SCHEDULE T (contd.)


93

19) Deferred Tax Assets / Liabilities :

The deferred tax Assets / Liabilities as on 31.3.2009 comprise of the following:-

(Rs. in crore)

Particulars As at During As at31.3.2008 the year 31.3.2009

Assets

Provision for investment 1.09 0.05 1.14

Provision for debtors 0.35 -0.24 0.11

Provision on loans 367.99 -22.21 345.78

Provision on Jabalpur Earthquake 1.70 0.00 1.70

Provision on Staff Loans 0.03 0.00 0.03

Provision on advances 0.15 0.00 0.15

Provision for leave encashment 3.98 0.45 4.43

Provision for gratuity 2.95 -1.35 1.60

Provision for retirement benefit 17.77 1.45 19.22

Provision for Welfare expenses 0.13 0.00 0.13

Provision for LTC 3.35 0.34 3.69

Interest Disallowed u/s. 43-B in currentyear and claimed in subsequent years 8.01 -0.45 7.56

Provision for Productivity Linked Incentive 0.79 -0.79 0.00

Provision for Revision in Pay 2.80 -2.79 0.01

Total Assets (A) 411.09 -25.54 385.55

Liabilities

Miscellaneous exp. yet to be written off 9.52 -2.59 6.93

Depreciation 5.18 0.67 5.85

Special Reserve u/s.36(1)(viii) of Income Tax Act 559.72 47.44 607.16

Total liabilities (B) 574.42 45.52 619.94

Net deferred tax assets / (liabilities) (A) - (B) -163.33 -71.06 -234.39

20) Disclosure regarding provisions made for loans and depreciation in investments as per NationalHousing Bank Guidelines on prudential norms applicable to Housing Finance Companies.

(1) HOUSING FINANCE BUSINESS:

Loans : (Rs. in crore)

Assets Classification Principal Provision Additionaloutstanding As per Norms* provision

As at 31st As at 31st As at 31st As at 31st 2008- 2007-March, 2009 March, 2008 March, 2009 March, 2008 2009 2008

Standard 5,551.99 5,946.10 - - 135.00 235.00 (considered good)

Sub-standard Assets 143.57 46.10 14.35 4.61

Doubtful Assets 1,104.17 1,320.60 389.53 374.59

Loss Assets 62.16 34.65 62.13 34.65

Total 6,861.89 7,347.45 466.01 413.85 135.00 235.00

SCHEDULE T (contd.)

94

(2) NON HOUSING FINANCE BUSINESS: Loans : (Rs. in crore)

Assets Classification Principal Provision Additionaloutstanding As per Norms* provision

As at 31st As at 31st As at 31st As at 31st 2008- 2007-March, 2009 March, 2008 March, 2009 March, 2008 2009 2008

Standard 14,759.09 13,807.38 59.04 55.24 (considered good) 45.00 80.00

Sub-standard Assets 212.20 312.10 21.22 31.21

Doubtful Assets 561.44 632.00 270.90 260.83

Loss Assets 20.15 6.54 20.15 6.54

Total 15,552.88 14,758.02 371.31 353.82 45.00 80.00

Grand Total (1) + (2) 22,414.77 22,105.47 837.32 767.67 180.00 315.00

(3) Investments: (Rs. in crore)

Particulars Principal outstanding Provision As per Norms

As at 31st As at 31st As at 31st As at 31st

March 2009 March 2008 March 2009 March 2008

Equity Shares 4.97 4.97 3.00 3.00

Equity Shares - Joint Venture 2.41 2.41 0.39 0.23

Bonds 2,039.20 2,058.41 0.00 -

Total 2,046.58 2,065.79 3.39 3.23

* The cumulative provision is excluding any provision on KfW Loans.

21) The Chairman and Managing Director and Whole time Directors are entitled to use staff car forprivate use upto 1,000 km. per month against payment of Rs. 520/- per month.

22) Related parties Disclosure :

(a) Joint Ventures

(1) Shristi Urban Infrastructure Development Ltd.

(2) Pragati Social Infrastructure & Development Ltd.

(3) MCM Infrastructure Pvt. Ltd.

(4) Signa Infrastructure India Ltd.

(b) Key Management Personnel during the year 2008-2009

Sl. Director (s) StatusNo.

1. Shri KL Dhingra Chairman and Managing Director(Whole time Director) (from 24.09.2007)

2. Shri T Prabakaran Director (Finance)(Whole time Director) (from 29.12.2004)

3. Shri SK Tripathi Director (Corporate Planning)(Whole time Director) (from 14.11.2006)

SCHEDULE T (contd.)


95

(c) Transactions with Joint Ventures :(Rs. in crore)

Proportion of 40% 26%ownership

Nature of Shristi Urban Pragati Social MCM Signa TotalTransactions Infrastructure Infrastructure& Infrastructure Infrastructure

Development Development Pvt. Ltd. India Ltd.Ltd. Ltd.

Investments

Balance as at31.3.2008 2.0 0.13 0.26 0.013 2.403

Additions duringthe year - - - - -

Balance as at31.3.2009 2.0 0.13 0.26 0.013 2.403

(d) Transactions with Key Management Personnel :

- Repayment of staff loan and interest of Rs. 0.31 lac (Previous Year Rs. 0.10 lac) to theCompany by Sh. KL Dhingra, Chairman and Managing Director.

23) Information in relation to the interest of the Company in Joint Ventures as required underAS - 27.

(a) Details of Joint Ventures

Name of the Company Contribution Country Proportion Descriptiontowards of of ofequity Residence ownership Interest(Rs. incrore)

Shristi Urban InfrastructureDevelopment Ltd. 2.000 India 40% Jointly controlled entity

Pragati Social Infrastructure& Development Ltd. 0.130 India 26% Jointly controlled entity

MCM InfrastructurePvt. Ltd. 0.260 India 26% Jointly controlled entity

Signa InfrastructureIndia Ltd. 0.013 India 26% Jointly controlled entity

Total 2.403

SCHEDULE T (contd.)

96

(b) Proportionate Assets & Liabilities :

(Rs. in lakhs)

Shristi Urban Pragati Social MCM SignaInfrastructure Infrastructure & Infrastructure InfrastructureDevelopment Development Pvt. Ltd. India Ltd.

Ltd. Ltd.

Year ending Un Audited Un Audited Un Audited Un Auditedaudited as at audited as at audited as at audited as at

as at 31.3.2008 as at 31.3.2008 as at 31.3.2008 as at 31.3.200831.3.2009 31.3.2009 31.3.2009 31.3.2009

Share of Assets 254.28 234.11 607.78 596.98 26.99 29.86 15.43 9.04

Share of Liabilities 54.28 34.11 594.78 583.98 0.99 3.86 14.13 7.74

Share of Income 65.50 74.66 0.00 0.48 1.13 1.13 13.83 13.00

Share of Expenses 61.50 71.10 3.94 4.27 4.37 8.39 11.95 11.17

HUDCO's share incontingent liabilityof JV Co. NA NA NA NA NA NA NA NA

Contingent liabilityfor jointlycontrolledCompany incurredby HUDCO Nil Nil Nil Nil Nil Nil Nil Nil

CapitalCommitment Nil Nil Nil Nil Nil Nil Nil 24.7

24) (a) Figures of the previous year have been regrouped / rearranged wherever necessaryto make them comparable with figures for the current year.

(b) Figures in rupees have been rounded off to thousands without decimals except wherespecifically indicated.






Sd/-Suresh Seth


SCHEDULE T (contd.)


97

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2009

(Rs. in thousand)Particulars 31st March, 2009 31st March, 2008

A CASH FLOW FROM OPERATING ACTIVITIES

NET PROFIT BEFORE TAX AND EXTRAORDINARY ITEMS 7,712,144 5,583,907

Add/ (Less): Adjustments for:

Depreciation 46,715 52,938

Miscellaneous expenditure written off 95,562 89,417

Provision on loans & advances (660,633) 2,136,790

Provision on investment 1,611 2,195

Provision for leave encashment 13,098 36,625

Provision for post retirement medical benefit 42,798 256,635

Provision for Gratuity (39,758) 86,933

Provision for welfare expenditure 116 3,679

Provision for LTC 9,857 98,574

Provision for pay revision 157,922 66,078

Prior Period Adjustments (Net) 62,533 (2,898)

Deferred Tax Liability for Prior years Adjustments (1,209,648) -

Profit on sale of investments (1,940) (1,940)

Loss/ (Profit) on sale of Fixed Assets (Net) (441) (305)

Translation/exchange (Gain)/Loss on Foreign Currency Loan 2,462,948 (385,887)

Miscellaneous expenditure paid (19,426) (16,864)

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 8,673,458 8,005,877

Adjustment for

Decrease/(Increase) in Loans (2,886,842) (2,215,071)

(Increase)/Decrease in Current Assets, other Loans & Advances (2,758,841) (1,912,489)

Increase/(Decrease) in Current Liabilities and Provisions (4,036,579) (2,865,616)

CASH GENERATED FROM OPERATIONS (1,008,804) 1,012,701

Direct taxes paid(Net of refunds) 2,105,666 1,686,763

KfW Reserve 81,550 7,050

General Reserve 1,209,648 (175,647)

Deferred Tax Asset adjustments - (90,445)

NET CASH FLOW FROM OPERATING ACTIVITIES 2,388,060 2,440,422

B CASH FLOW FROM INVESTING ACTIVITIES

Sale / (Purchase) of Investment 194,000 3,879,140

Purchase of fixed assets (93,833) (47,576)

Sale of fixed assets 946 993

NET CASH FLOW FROM INVESTING ACTIVITIES 101,113 3,832,557

98

C CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of share capital - -

Proceed from borrowings (Net) 1,000,459 (14,410,299)

Corporate Dividend Tax Paid (115,744) (35,145)

Dividend Paid (681,046) (206,796)

NET CASH FLOW FROM FINANCING ACTIVITIES 203,669 (14,652,240)

NET CHANGES IN CASH & CASH EQUIVALENTS(A+B+C) 2,692,842 (8,379,261)

* CASH & CASH EQUIVALENTS - OPENING BALANCE 5,800,837 14,180,098

* CASH & CASH EQUIVALENTS - CLOSING BALANCE 8,493,679 5,800,837

Note:

1. Cash and Cash equivalents include Cash in hand, deposits with banks and short term highly liquidinvestments. The above closing balance does not include foreign deposit amounting toRs. 2,030,184 thousand (previous year Rs. 1,666,121 thousand).

2. Previous year figures have been regrouped wherever necessary.

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2009 (contd.)

(Rs. in thousand)Particulars 31st March, 2009 31st March, 2008






Sd/-Suresh Seth



99

INFORMATION PURSUANT TO PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE

I REGISTRATION DETAILSRegistration No. : 5276 State Code : 55Balance Sheet Date : 31st March, 2009

II CAPITAL RAISED DURING THE YEAR(Amount in Rs. Thousands)

Public Issue - NIL Rights Issue - NILBonus Issue - NIL Private Placement - NIL

III POSITION OF MOBILISATION AND DEPLOYMENT OF FUNDS(Amount in Rs. Thousands)

Total Liabilities 254,411,752 Total Assets 254,411,752Sources of FundsPaid up Capital 20,019,000 Reserves & Surplus 26,659,615Secured Loans 1,991,898 Unsecured Loans 190,501,347Deferred Tax Liabilities (Net) 2,343,927Application of FundsNet Fixed Assets 810,410 Investments 20,431,909Net Current Assets 5,799,812 Misc. Expenditure 203,966Loans 214,269,690Accumulated Losses NIL

IV PERFORMANCE OF COMPANY(Amount in Rs. Thousands)

Turnover * 27,131,796 Total Expenditure 19,419,652Profit Before Tax and after Profit After Tax andPrior Period adjustment ** 6,565,029 Prior Period adjustment 4,009,875Earning Per Share in Rs 200.30 Dividend Rate % 2.26%(Face value of each share = Rs. 1000)

* Includes other income.** Prior Period adjustment - (1,147,115)

V GENERIC NAME OF THREE PRINCIPAL PRODUCTS/SERVICES OF COMPANY(as per monetary terms)

Item Code No. : NILProduct Description : Long term finance for housing & urban development activities.Item Code No. : NILProduct Description : ConsultancyItem Code No. : NILProduct Description : Development & Financing Satellite Townships.




Place : New DelhiDated : 24th June, 2009

100

HUDCO'S ASSISTANCE TO URBAN INFRSTRUCTURE PROJECTS AS ON 31.03.2009

Infrastructure No. of Projects HUDCO AssistanceSegments (Rs. in crore)

2008-2009 Cumulative 2008-2009 Cumulative

Water supply 7 411 627.20 13286.60

Sewerage,Drainage 5 104 1704.45 3606.29and Solid Waste Management

Transportation/Roads 9 209 721.84 11025.52

Area Development 4 113 1299.48 2708.94

Social infrastructure 28 306 333.42 4536.73

Others including commercial 50 403 8335.03 30649.29

TOTAL 103 1546 13021.42 65813.37

Note : This statement excludes Sanitation Schemes.

REHABILITATION HOUSING FOR NATURAL CALAMITIES AS ON 31-03-2009

Natural Calamities Loan Amount No. of Units(Rs. in crore)

A) Earthquake & Landslide 197.45 131067

B) Cyclone 1054.17 437934

C) Flooding & Sea Erosion 957.74 3575734

Total 2209.36 4144735


101

STATEWISE CUMULATIVE INFORMATION OF PROJECTS SANCTIONED BY HUDCO AS ON 31.03.2009

Sl. State/UT No. of Project Loan Loan Dwelling PlotsNo. Name Schemes Cost Sanctioned Released Units

Sanc. (…............Rs. in crore…........….) UPGD New

STATES1 ANDHRA PRADESH 2124 19147.39 9254.27 6801.52 144243 2299093 56872 ARUNACHAL PRADESH 9 16.48 7.47 6.39 0 1822 03 ASSAM 189 1891.01 969.59 892.73 15536 41627 19604 BIHAR 213 556.37 319.89 218.40 23032 80967 57405 CHHATTISGARH 272 12089.06 2241.89 462.16 314 91026 185726 DELHI 77 2470.68 1037.45 652.88 0 20364 3147 GOA 38 2110.6 1462.10 261.79 5983 1410 15268 GUJARAT 1243 66970.85 9312.53 4599.88 25836 532267 81929 HARYANA 373 8505.45 2075.89 1107.72 17437 85036 498510 HIMACHAL PRADESH 184 2144.53 1109.28 937.85 948 73647 139111 JAMMU & KASHMIR 129 4803.07 870.96 546.33 11123 12828 1133012 JHARKHAND 114 7965.09 2577.87 1207.15 10346 359766 200013 KARNATAKA 1416 33266.2 10153.63 7785.98 287596 1721093 3814714 KERALA 1082 5014.34 2978.78 2963.43 98666 1155167 65115 MADHYA PRADESH 922 22358.39 5152.61 3500.9 9436 132633 13978816 MAHARASHTRA 1231 62134.9 9557.54 6917.34 51859 430149 1835517 MANIPUR 39 280.59 148.63 140.51 385 14207 018 MEGHALAYA 33 544.55 362.78 225.4 291 15104 019 MIZORAM 36 177.95 103.49 96.26 5150 7159 14820 NAGALAND 181 1026.44 750.68 643.93 29 21684 32621 ORISSA 460 54205.84 3579.49 1140.21 15283 262496 714822 PUNJAB 526 7625.23 2511.49 708.98 14864 103881 546223 RAJASTHAN 1115 9346.26 5137.03 3913.95 0 264256 2256624 SIKKIM 38 3268.32 415.85 100.26 3854 8985 025 TAMIL NADU 2243 27634.44 9701.18 7543.61 324651 1062429 16205926 TRIPURA 37 268.02 89.58 67.82 1909 5661 127 UTTAR PRADESH 1286 16311.12 6106.69 3496.79 32546 611628 6592828 UTTARAKHAND 104 1012.12 419.64 290.1 3506 51991 56029 WEST BENGAL 340 8886.34 3662.64 3295.43 3020900 193595 5505

UNION TERRITORIES30 A & N ISLANDS 16 25.86 13.21 10.91 0 534 031 CHANDIGARH 78 2066.82 368.47 144.41 0 28036 804532 DADAR NAGAR HAVELI 2 0.35 0.25 0.00 45 42 033 PUDUCHERRY 33 1810.19 476.37 29.67 0 9847 0

TOTAL 16183 385934.85 92929.22 60710.69 4125768 9700430 536386

THE CUMMULATIVE PROJECT COST, SANCTIONS AND DWELLING/PLOTS ARE NET AFTERINCORPORATING REVISIONS/WITHDRAWALS AS PER THE DATA RECEIVED FROM REGIONAL OFFICES.

TOTAL SANCTIONS INCLUDING HUDCO NIWAS

LOAN AMOUNT : Rs. 97314.33 crore

RELEASE AMOUNT : Rs. 64573.74 crore

DWELLING UNITS : 14208546

102

YEARWISE DETAILS OF HUDCO'S OPERATIONS

YEAR NO.OF GROSS LOAN AMOUNT REPAYMENT DWELLING PLOTSSCHEMES SANCTIONED RELEASED RECEIVED UNITS

(….....................Rs. in crore….................….)

1971-72 19 34.86 5.51 0.37 22095 10883

1972-73 46 36.06 7.44 2.92 21269 3297

1973-74 53 30.63 13.15 6.37 19017 4390

1974-75 67 37.52 22.63 6.39 25165 1450

1975-76 163 54.47 35.84 11.82 36345 798

1976-77 242 72.70 40.08 15.21 53714 16738

1977-78 179 88.05 48.78 18.09 140141 5539

1978-79 227 107.98 65.86 17.82 99463 9475

1979-80 227 139.20 77.04 23.77 202841 6317

1980-81 346 161.68 89.97 36.77 268363 6107

1981-82 392 193.62 105.24 45.04 276948 14342

1982-83 516 221.33 131.78 61.83 284879 11890

1983-84 617 283.93 149.11 80.05 316349 7344

1984-85 677 352.88 199.82 87.38 318837 16601

1985-86 697 387.42 222.51 116.21 339832 15210

1986-87 581 392.02 270.15 142.26 306716 9182

1987-88 650 496.73 324.60 174.68 300938 18285

1988-89 755 651.28 438.05 201.18 380547 82701

1989-90 844 906.84 541.60 217.66 665485 32870

1990-91 1164 1385.89 735.00 272.01 832803 20211

1991-92 956 1348.09 834.00 394.82 669905 29844

1992-93 831 1110.42 858.91 417.77 399179 20821

1993-94 971 1368.45 1003.58 402.66 416274 24111

1994-95 1094 1763.24 1121.50 473.25 372803 12945

1995-96 912 1966.91 1241.80 337.09 393692 18258

1996-97 973 2470.59 1575.90 248.16 423248 43623

1997-98 795 3061.86 2263.20 392.00 553156 22457

1998-99 1146 6666.67 3200.71 559.73 1860357 23669

1999-00 659 8899.89 4372.74 825.24 1635844 22117

2000-01 360 7912.73 4829.32 746.06 3097651 8871

2001-02 341 8140.53 4661.78 550.63 736519 12477

2002-03 316 15627.21 8179.68 2078.82 873047 35471

2003-04 364 13415.31 6136.27 2974.96 969883 5842

2004-05 317 13861.62 5920.88 4779.39 1119742 15758

2005-06 224 10099.19 3766.52 3267.11 192197 2181

2006-07 287 12162.55 3452.41* 3562.30 140970 5573

2007-08 306 13500.61 3754.02 3545.62 98868 4185

2008-09 192 14754.15 4019.45 3733.98 114009 1477


103

SENIOR EXECUTIVES

T K SanyalCVO

K SubramanianED (Chennai)

Manorama DuttaED (D&D/RE/RF)

Sunil Kumar ChaudharyED (P/Admn.)

R K KhannaSr. ED

Anil Kumar KaushikED (Hyderabad)

R K SafayaED (W&D)

104

SENIOR EXECUTIVES

D SubrahmanyamED (Kolkata)

Vivek KumarED (IA/HR)

M BalakrishnaED (SBU-ES/BMT)

Malay ChatterjeeED (Chandigarh)

P JayapalED (URP/BD/SBU-SH & CI)

H K DubeyED (OPR/P&T/SP)

S S GaurED (Law)/CPIO

H VermaCompany Secretary


105

HUDCO’S OFFICENETWORK IN THECOUNTRY

106

HUDCO OFFICES

CORPORATE OFFICE

Housing and Urban DevelopmentCorporation Ltd.HUDCO Bhawan, Core-7-A,India Habitat Centre,Lodhi Road,New Delhi - 110 003Tel.:(EPABX) 011-24649610-23,24627113-15, 24627091,92,95After Office Hours:24648193-95Voice Mail Service: 24648160, 63, 64Fax: 011-24625308E-Mail:[email protected] us at : www.hudco.org

TRAINING & RESEARCH WING

Human Settlement ManagementInstituteHUDCO House,Lodhi Road,New Delhi - 110 003Tel: 011-24369534, 24308600-01Fax: 011-24365292, 24366426E-mail: [email protected]

HSMI HOSTEL

212, Asiad Village,Khel Gaon Marg,New Delhi.Tel: 011-26493445, 26493015,26493375, 26493559,26493281, 26493870,26493391,Fax: 011-26493726

ZONAL OFFICE

North East Guwahati,(Opp. PNB, Zoo Road Branch),R.G.Baruah Road,Ganeshguri,Guwahati-781005Tel: 0361-2204749, 2201105Fax:0361-2202173Email:[email protected]

HUDCO REGIONAL OFFICES

Ahmedabad4th Floor, Gruh Nirman Building,Ashram Road,Ahmedabad - 380 009 (GUJARAT)Tel : 079-26583488, 26582787,26580684,26584813Fax : 079-26580804Email : [email protected]

BangaluruN-703 & 704, No.47,Manipal Centre,Dickenson Road,Bangaluru - 560 042.Tel:080-25590541,25582602Fax:080-25598748Email:[email protected]

BhopalParyavas Bhawan,Arera Hills (Old Jail Road)Bhopal - 462011 (M.P)Tel: 0755-2763542,2763628Fax:0755-2763526Email:[email protected]

Bhubaneswar3rd Floor,Deendayal Bhawan,Ashok Nagar, Janpath,Bhubaneswar - 751009Tel: 0674-2536287Fax:0674-2534906Email:[email protected]@rediffmail.com

ChandigarhSCO 132-133,Ist & 2nd Floor,Sector 34-A,Chandigarh - 160022Tel:0172-2648952, 2648954-55Fax:0172-2648956Email:[email protected]

ChennaiV Floor, CMDA Tower II No.1,Gandhi Irwin Road, Egmore,Chennai - 600 008Tel:044-28412711Fax:044-28589746Email:[email protected];[email protected]

Chennai Consultancy WingV Floor, CMDA Tower I,Gandhi Irwin Road, Egmore,Chennai - 600 008Tel:044-28529500Fax:044-28415524Email: [email protected]

Dehradun74/1, GMVN Buidling (1st Floor),Rajpur Road,Dehradun - 248 001Tel: 0135-2748405Fax:0135-2748290Email:[email protected]

Delhi (NCR)HUDCO House, 5th Floor,Lodhi Road,New Delhi - 110003Tel:011-24366601, 24366605Fax:011-24367447Email:[email protected]

Hyderabad5-10-193, 1st floor HACA Bhavan,Opp: Public GardensHyderabad - 500004Tel:040-23232572 / 23235763 /23210804Fax:040-23243938Email:[email protected]

JaipurVidhyut Marg, Jyoti Nagar,Jaipur - 302 005Tel:0141-2740874Fax:0141-2740702Email:[email protected]

JammuHUDCO Bhawan,OB-8, Rail Head ComplexJammu-180012 (J&K)Tel:0191-2474355, 2473640Fax:0191-2474356Email:[email protected]

KolkataNew CMC Building, 3rd Floor,15-N Lindsay Street(Near New Market Clock Tower),Kolkata-700 087Tel:033-22526140/0775Fax:033-22525511Email:[email protected]

KohimaOld Secretariat Complex,Kohima, Nagaland - 797001Tel:0370-2291145, 2291146Fax:0370-2291144Email:[email protected]

LucknowB-1, North East Block,Second Floor,PICUP Building,Vibhuti Khand,Gomti Nagar,Lucknow-226 010Tel:0522-2720834, 2720804,2720744, 2720731, 2721571Fax:0522-2720841Email:[email protected]


107

MumbaiShreyas Chambers,2nd Floor,175, Dr. D N Road, FortMumbai - 400 001Tel.: 022-22690080-84Fax: 022-22690086Email: [email protected]

PatnaBlock-B2, 2nd Floor,Mouryalok Complex,Dakbunglow Road,Patna - 800 001Tel:0612-2234994, 2232679,2204432Fax:0612-2221886

Raipur1-B, Surya Appartment,Katoratalab, Raipur - 492 001.Tel:0771-2427796, 2425517,4053738Fax:0771-2422023Email:[email protected]

RanchiTACD Building, Shyamli,Doranda, Ranchi-834002Telefax:0651-2411526, 2410523Email:[email protected]

Thiruvananthapuram3rd Floor, "SAPHALYAM Complex",Palayam, UniversityP.O., Thiruvananthapuram-695034Tel:0471-2339742-45Fax:0471-2329006Email:[email protected];[email protected]

DEVELOPMENT OFFICES

Agartala3/1, Officers Quarters Lane,Krishna Nagar,Agartala-799001(Tripura)Telefax:0381-2205701

AizwalH.No.B-6, Chanmari Kawn,Aizawal-796007, MizoramTelefax: 0389-2342289

GoaEDC House, Dr. Alto Betim,Dr. Atmaram Borker Road,Panaji, Goa-403501Telefax:0832-2420790,Email: [email protected]

ImphalPDA Building North AOC,Imphal - 795001, ManipurTelefax: 0385-2421708

ItanagarSecond Floor,Tadar Trade Centre,Bank Tin-ali, Itanagar-791111,Arunachal PradeshTel:0360-2216867Fax:0360-2216980

KokrajharBoro Bhatarmari Near IOC PetrolPump & Ganga Cinema Hall,Kokrajhar - 783370Telefax:03661-275779

PuducherryNo.11,12,13, LIC Building,Ground Floor, Kamaraj Salai,New Saram,Puducherry - 605013Telefax:0413-2244214Email:[email protected]

Port BlairPost Bag No.5,Aberdeen Bazaar,Port Blair-744101Telefax: 03192-231544

ShillongIst Floor, Laitumkhrah Main Road(Behind Bata Shoes),Shillong - 793003Tel: 0364-2502320,Fax: 0364-2502321

ShimlaOpp. Himachal Pradesh Secretariat,Chhota Shimla - 171002Telefax:0177-2628449

HUDCO NIWAS HOME LOANSOFFICES

Andhra Pradesh

Hyderabad5-10-193, Ist Floor,HACA Bhawan,Opp. Public GardenHyderabad-500004Tel:040-23235763,23232572,23210804Telefax:040-23212167 (D)

VijayawadaC/o VGT Urban DevelopmentAuthority, 1st Floor, Lenin Centre,Governorpet, Vijaywada - 520 003Telefax:0866-2572643

VishakapatnamC/o VUDA Complex,1st Floor,Udyog Bhawan,Siripuram,Vishakapatnam-530003.Telefax:0891-2768422

Assam-North Eastern States

GuwahatiOpp. PNB Zoo Road Branch RGBaruah Road,Ganeshguri, Guwahati-781005Tel:0361-2204749, 2201105,Mobile No.:09435049784Fax:0361-2201875, 2202173

Agartala3/1, Officers Quarters Lane,Krishna Nagar,Agartala-799001(Tripura)Tel:0381-2205701Fax:0381-2205701

ImphalC/o PDA Office Building,North AOCImphal-795001(Manipal)Tel:0385-2421708Fax:0385-2421708

KohimaOld Secretariat Complex,Kohima - 796001, NagalandTel:0370-2291145,2291146Fax:0370-2291144

KokrajharBoro Bhatarmari,Near IOC Petrol Pump &Ganga Cinema Hall,Kokrajhar-783370(Assam)Tel:03661-275779Fax:03661-275779

ShillongIst Floor, Laitumkhrah Main Road(Behind Bata Shoes),Shillong - 793003Tel:0364-2502320Fax:0364-2502321

ItanagarSecond Floor, Tadar Trade Centre,Bank Tin-ali, Itanagar-791111(Arunachal Pradesh)Tel:0360-2216867,Fax:0360-2216980

Aizwal2nd Floor, H No.B-6,Chanmari Kawn, ChanmariAizwal-796007 (Mizoram)Tel:0389-2342289Fax:0389-2342289

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Siliguri2nd Floor,Dr. B R Ambedkar Building,Hill Court Road Pradhan Nagar,Siliguri - 734403Telefax: 0353-2517488

Bihar

PatnaBlock-B2, 2nd Floor,Mouryalok Complex,Dakbunglow Road, Patna - 800 001Tel:0612-2234994, 2232679,2204432, 09835608846Fax:0612-2221886

Chandigarh, Punjab, Haryana,Himachal Pradesh

ChandigarhSCO 132-133, Ist & 2nd Floor,Sector 34-A,Chandigarh - 160022Tel:0172-2648952, 2648954-55Fax:0172-2648956Email:[email protected]

Chattisgarh

Raipur1-B, Surya Apartment,Katoratalab, Raipur -492001.Tel:0771-2427796, 2425517,4053738Fax:0771-2422023Email:[email protected]

Delhi

DelhiHUDCO House, Lodhi Road,New Delhi-110003Tel:011-24365662Fax:011-24365663Email:[email protected]

Gujarat

Ahmedabad3rd Floor, Gruh Nirman Building,Ashram Road,Ahmedabad - 380 009(Gujarat)Tel:079-26585991, 26585992Fax:079-26580804Email:[email protected]

Surat13&14, Gujarat Housing BoardOffice Building, Khatodara Colony,Near Rajkumar Cinema,Udhana-Navsari Road,Surat-395002.Telefax:(0261)2343123

Jammu & Kashmir

JammuHUDCO Bhawan, OB-8,Rail Head Complex,Jammu-180012(J&K)Tel:0191-2474355,Fax:0191-2474356

Jharkhand

RanchiTACD Building,Shyamli, Doranda,Ranchi-834002Telefax:0651-2411526, 2410523Email: [email protected]

Karnataka

BangaluruN-703, 704, No. 47,Manipal Centre,Dickenson Road,Bangaluru - 560 042.Tel:080-25587012,Mobile No.: 09449861991Fax:080-25598748Email:[email protected]

GoaEDC House, Dr. Alto Betim,Dr. Atmaram Borker Road,Panaji, Goa-403501Telefax: 0832-2420790Mobile No.09326117201Email: [email protected]

Kerala

Thiruvananthapuram3rd Floor, Saphalyam Complex,Palayam, UniversityP.O., Thiruvananthapuram-695034Tel: 0471-2339746-47,Res. 0471-2550450,Mobile No.09447243158Fax:0471-2329006Email: [email protected];[email protected]

Kochi3rd Floor, Khadi Towers,Kaloor, Kochi-682017,Tel:0484-2345607-09,Mobile No.09447687156Fax: 0484-2345609Email:[email protected]

Kozhikode4th Floor, Zamorins Square,Jayaprakash Narayan Road,Near Railway Station,Kozhikode -673001Tel:0495-2304431-33,Res. 0495-2725036,Mobile No. 09847741928Telefax:0495-2304431Email: [email protected]

Madhya Pradesh

BhopalParyavas Bhawan, Arera Hills,Old Jail Road,Bhopal-462011 (MP)Tel:0755-2571359Fax:0755-2763526,Email:[email protected]

IndoreC/o Commerce House,7 Race Course Road,New Palasia,Indore-450001 (MP)Tel:0731-2531656Fax:0731-2531656

Maharashtra

Mumbai : ROShreyas Chambers, 2nd Floor,175, Dr. D N Road, FortMumbai - 400 001Tel.: 022-22690080-84Fax: 022-22690086Email: [email protected]

Pune2nd Floor, Griha Nirman BhavanMHADA BuildingBehind Alankar Theatre,Agarkar Nagar,Pune - 411001

Orissa

Bhubaneshwar3rd/4th Floor,Deendayal Bhawan,Ashok Nagar, Janpath,Bhubaneshwar - 751 009Tel:0674-2534906, 2534696Fax:0674-2534906

BalasorePlot No.14/1013, Ist Floor,Sahadev Khunta,Near Hotel Swornachuda,Balasore-756001.Tel:06782-263862


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Rajasthan

JaipurHUDCO Niwas, Vidhyut Marg,Jyoti Nagar,Jaipur- 302005 (Rajasthan)Telefax:0141-2740158Email:[email protected] Nadu, Pondicherry,Andaman & Nicobar Island

Chennai5th Floor, CMDA Tower II,No.1 Gandhi Irwin Road,Egmore, Chennai-600 008.Tel:044 28528969, 28413283,28412711Fax:044 28589746Email:[email protected];[email protected]

Puducherry11,12,13 LIC Building,Ground Floor Kamaraj Salai,New Saram, Puducherry-605013Tel:(0413)2244214Fax:0413-2244214Email: [email protected]

Port BlairPost Bag No.5,Aberdeen Bazar,Port Blair-744101Tel:0319-2231544Fax:0319-2231544

CoimbatoreCorporation Commercial Complex,Raju Naidu Road, Tatabad,Coimbatore - 641 012Telefax: 0422-2492777Email : [email protected]

MaduraiCorporation Building,Thallakulam, Alagarcoil Road,Madurai-625 002Telefax: 0452-2526235Email : [email protected]

Nagercoil2nd Floor, Pillars Gate,The Mall No.176, Balamore Road,Nagercoil - 629 001Telefax: 04652-220055Email: [email protected]

Uttrakhand

DehradunGarhwal Mandal Vikas NigamBuilding, 74/1, Ist Floor,Rajpur Road,Dehradun - 248 001Tel:0135-2748290, 2748405Fax:0135-2748290Email:[email protected]

Uttar Pradesh

LucknowB-1,NE Block, 2nd Floor,PICUP Bhawan Vibhuti Khand,Gomati Nagar,Lucknow-226010 (UP)Tel:0522-2720804, 2720744Fax:0522-272841

West Bengal

KolkataNew CMC Building, 3rd floor,15-N Lindsay Street(Near New Market Clock Tower),Kolkata-700087Tel: 033-22526140/0755,Mobile No.:09433416014Fax:(033) 22525511Email:[email protected]

DETAILS OF AUDITORS AND BANKERSSTATUTORY AUDITORS

M/s SN Dhawan & Co.Chartered Accountants,C-37, Connaught Place,New Delhi - 110 001.

BANKERS

Reserve Bank of IndiaDeposit Account Department,Current Account Section,Parliament Street,New Delhi - 110 001.

Corporation BankM-3&4, Shopping Centre,Greater Kailash-II,New Delhi - 110 048.

Canara Bank74, Janpath,New Delhi - 110 001.

Vijaya BankD-65, Hauz Khas,New Delhi - 110 016.

Syndicate BankKhan Market,New Delhi - 110 003.

Union Bank of IndiaMoti Bagh (1),New Delhi - 110 066.

Punjab National BankECE House, 28-A,K.G. Marg, Connaught Place,New Delhi - 110 001.

Axis Bank Ltd.Statesman House,Barakhamba Road,New Delhi - 110 001.

IDBI Bank LimitedLarge Corporate Group, IIIrd Floor,Indian Red Cross Society Building,1, Red Cross Road,New Delhi -110 001.

IndusInd BankNew Delhi Branch,Dr. Gopal Das Bhawan,28, Barakhamba Road,New Delhi - 110 001.

State Bank of HyderabadIndia Habitat Centre, Lodhi Road,New Delhi - 110 003.

ICICI Bank LimitedA-30, Connaught Place,New Delhi - 110 001.

The Bank of Tokyo-Mitsubishi UFJ Ltd.New Delhi Branch,Jeevan Vihar 3, Parliament Street,New Delhi - 110 001.

Oriental Bank Of CommerceA-30 to 33, 1st Floor, Connaught Place,New Delhi - 110 001.

Dena BankScope Complex Branch,Core No. 6, Ground Floor,7, Lodhi Road, New Delhi - 110 003.

Bank of MaharashtraSouth Extension, Part-I, A-13, Ring Road,New Delhi - 110 049.

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