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Sri L.V. Nagarajan, I.A.S.

Chairman, KSFC and Additional Chief Secretary, Finance Department, GoK

3

Sri M. Madan Gopal, I.A.S.

Managing Directorupto 30.08.2012

4

Smt. Vandita Sharma, I.A.S.

Managing Director

5

BOARD OF DIRECTORS

Sri M Maheshwar Rao IAS Sri S V G Nanda Gopal Sri K Natarajan

Sri P Kumaresan Sri K Preetam Lal Sri G S Doreswamaiah

Sri C Basave Gowda Sri H V S Krishna Sri S Ananthan

6

Executive Directors Sri N.R.Sridhar Sri N.Aswatharam

General Managers Sri B.H.Srinivasa Murthy Sri G.Nagaraja Sri L.B.NilogalSri D. Panduranga

Legal AdvisorSri Gururaj Joshi

AuditorsM/s.Rajagopal & Badri NarayananChartered Accountants

BOARD OF KSFC

PeriodName

From To

U/s of SFCs

Act Sl.No.

1 Sri L.V.Nagarajan, IAS.,

as Chairman 16.12.2010 15(1)

as Director 07.04.2010 10(b)

2 Sri B.R.Prem Kumar 11.06.2009 10.06.2012 10(b)

Sri M.Maheshwar Rao, IAS., 14.06.2012 10(b)

3 Sri Rajiv Dangi 20.07.2011 07.05.2012 10(c)

Sri S.V.G.Nanda Gopal 08.05.2012 10(c)

4 Sri K.Natarajan 01.12.2011 10(c)

5 Sri Gurdeep Singh Dang 06.05.2010 06.05.2012 10(d)

Sri K.Santhosh Kamath 15.05.2012 06.11.2012 10(d)

Sri K.Preetam Lal 07.11.2012 10(d)

6 Sri P.Kumaresan 01.06.2011 10(d)

7 Sri C.Basavegowda 17.12.2008 10(e)

8 Sri G.S.Doreswamaiah 11.11.2009 10(e)

9 Sri H.V.S.Krishna 18.09.2007 10(e)

10 Sri S.Ananthan 02.03.2013 10(e)

11 Sri M.Madan Gopal, IAS., Managing Director 18.05.2011 30.08.2012 10(f)

Smt.Vandita Sharma, IAS., Managing Director 30.08.2012 10(f)

EXECUTIVE COMMITTEEMembers of the Executive Committee :

Directors on the Board of KSFC :

PeriodName

From To

U/s of SFCs

Act

1 Sri M.Madan Gopal, IAS., 18.05.2011 30.08.2012 18(1)

Smt. Vandita Sharma, IAS., 30.08.2012 18(1)

2 Sri B.R. Prem Kumar 11.06.2009 10.06.2012 18(1)

Sri M.Maheshwar Rao, IAS., 06.07.2012 18(1)

3 Sri K.Natarajan 01.12.2011 18(1)

4 Sri Gurdeep Singh Dang 06.05.2010 06.05.2012 18(1)

Sri K.Santhosh Kamath 15.05.2012 06.11.2012 18(1)

Sri K.Preetam Lal 07.11.2012 18(1)

5 Sri P.Kumaresan 01.06.2011 18(1)

6 Sri C.Basavegowda 17.12.2008 18(1)

7 Sri G.S.Doreswamaiah 11.11.2009 18(1)

Sl.No.

7

KARNATAKA STATE FINANCIAL CORPORATIONDIRECTORS' REPORT 2012-13

The Directors of the Corporation have pleasure in thpresenting the 54 annual report on the operations and

audited statement of accounts of the Corporation for

the year ending March 31, 2013.

During the FY 2011-12, the Corporation registered a net

profit of ̀ 11.09 crore and for the year ended March 31,

2013 the net profit stood at ` 17.02 crore. The

Corporation recorded sanction of ` 944.06 crore,

disbursement of ` 734.70 crore and recovery of

` 792.89 crore. This is the highest ever performance in

the key areas of operations since inception. Besides, the

standard portfolio reached ` 1,607 crore which is also

the highest in the history of the Corporation.

The performance of the Corporation is commendable in

the backdrop of not so encouraging investment climate

in the Country as well as in the State. A brief stock of the economic scenario of the Country

and the State of Karnataka is reviewed before scrolling

on the performance highlights of the Corporation for the

year 2012-13.

ECONOMIC SCENARIO :

The Global Economic Scenario remained grim for the last

few years. US economy dropped into single digit

recession followed by Euro zone economy. Several

countries in Euro zone were on sovereign default

threatening their very existence in the European Union.

Countries one or the other were downgraded by

international rating agencies. The negative outlook of

the global economy also penetrated to many emerging

Countries. Though India was not foolproof to

recessionary trends it still managed to act with due

diligence.

Indian economy registered a growth rate of 6.2% for

2011-12. It was estimated in the beginning of 2012-13

that the GDP would clock only 6.9% for the year

2012-13, it could reach to 5.0% at the end of the year.

The pathetic decline of industrial sector output in GDP

formation gradually slowed down and it registered

growth of 3.1% for the year 2012-13 as against 3.5%

recorded in the previous year. However, the service

sector showed a less declining trend and could

grow 6.6% in the year 2012-13 as against 8.2% growth

shown in previous year.

Investment in India was not up to expectation during

2012-13. The high level of inflation hampered the

growth. The monetary Policy from RBI was focussing on

inflationary trend and to curb money supply in the

market. This move negatively impacted the industry and

resulted in low capital formation and low credit off take

by Industry.

Economic Survey report of Karnataka has forecasted a

growth rate of 5.9% at constant prices (2004-05) for the

fiscal 2012-13 and to reach Gross Domestic Product of

` 3,03,444 crore.

The growth rate in industry sector is expected to be at

2.4% during 2012-13 which is at the same level as in

2011-12.

Karnataka Economy showed encouraging trends in

growth due to a strong service sector. The service sector

grew by 8.9% in 2012-13. The service sector was a key

driver of the year's GSDP.

Due to drought conditions prevailing from the last year,

the agriculture and allied sector achieved growth of

mere 1.8% in 2012-13 as against -2.2% recorded in

2011-12.

8

The State revenue resources showed signs of recovery

from 2010-11 (15.28%) and is further expected to

increase 15.64% in 2012-13.

GOVERNMENT SUPPORT FOR KSFC :

During the FY 2012-13 the Government extended

support to KSFC as detailed below:

Infused additional share capital of ` 50.00 crore

to augment the financials of the Corporation. Guarantee support of ` 400 crore was given to

raise resources from the open market. The one time settlement scheme for small

borrowers of KSFC was extended upto

31-03-2013. Provided equity support of ` 3.66 crore under

the OTS for small borrowers. Approved amendments to the chronic assets

resolution scheme to make it more pragmatic

and help the Corporation to resolve the non

performing assets.

MAJOR INITIATIVES :

To achieve better operational efficiency and to ensure

the creation of standard portfolio, the following major

initiatives were taken by the Corporation.

Re-organisation and decentralisation to take

products of KSFC to the doorsteps of the

customers. Business meets were conducted at district levels

to serve the customers at their place and to take

feedback from grassroots level. Establishment of a Risk Management

Department to independently evaluate Credit

Risk and to facilitate better credit decision. The Modified Chronic Asset Resolution (MCAR)

Scheme was amended to reduce the non

performing assets and realise the amount locked

up in non performing assets for better

management of liquidity and to make the

scheme more pragmatic.

BOARD AND EXECUTIVE COMMITTEE MEETINGS:

During the year 2012-13 the Corporation conducted 8

meetings of the Board of Directors and 9 Meetings of the

Executive Committee.

AUDIT COMMITTEE :

The Audit Committee is a sub-committee of the Board.

The Committee met four times during the FY 2012-13.

The Committee discussed the audit reports,

compliances regarding statutory payments, special

investigation reports in its meetings and took

appropriate decisions.

ASSET LIABILITY MANAGEMENT COMMITTEE:

Pursuant to the guidelines of SIDBI, Asset Liability

Management Committee (ALCO) was constituted on

31.01.2011 under the chairmanship of the Managing

Director with senior executives of the Corporation as

members of the Committee. Three meetings of the

committee were held during the year 2012-13. The

Committee deliberated on Asset Liability Management

(ALM) statements, structuring of bonds, cash budget,

interest rate structure and short term borrowing

proposals of the Corporation.

SUB-COMMITTEE FOR MCAR PROPOSALS:

A Sub Committee was appointed by the Board in its

meeting held on 2-3-2013 in connection with extending

additional concessions in respect of MCAR proposals.

PROJECT CLEARANCE COMMITTEE:

Upon reorganisation and restructuring of various

departments at Head Office, the Branches at district

level are empowered to conduct project clearance

committee meetings even for higher level sanctions.

Managing Director along with Heads of the Department

of concerned Branch at district also chaired Project

Clearance Committee Meeting at Branch level to

facilitate entrepreneurs to avail financial assistance

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from their nearby Branches of the Corporation and to

reach the entrepreneur at district level.

CREDIT RISK ANALYSIS MODELS:

In order to improve the quality of in-house credit

appraisal and mitigate credit risks, the Corporation after

study of various credit risk models of financial

institutions / banks introduced Credit Risk Analysis

Models. These models analyse risk involved in lending,

such as financial risks, business risks, management risk,

legal risks etc., and give clear perception about the

project being financed.

I S O CERTIFICATION:

Bureau of Indian Standards, Chennai conducted the Re-

certification audit at KSFC, Head Office in July, 2010. All

the departments of Head Office were audited by the

certificating agency and the agency issued Renewal

Licence No.6000582.4 under the revised standards

IS/ISO 9001:2008 for a period of 3 years valid from th th26 May 2010 to 25 May 2013.

COMPUTERISATION:

In line with IT Vision Policy, the Corporation

implemented upgradation plan over a period of three

years from 2009-10 to 2012-13. During this period, the

in-house developed software was upgraded to Oracle

10g on a centralised server. The Web portal was

refurbished and own e-Auction portal was developed

and hosted on Corporation's Web server. 300 desktops

were provided to all the Offices to adopt upgraded

software content.

Apart from the above, IT Department took the following

initiatives: In order to facilitate credit conduct, a module

was developed to upload the Credit Information

System of the assisted units to the CIBIL

database. A new Credit Rating Module was developed to

rate the Construction and Real Estate Units

which approach the Corporation for loan

assistance. Facility to capture the compliance of KYC norms

by promoters. The upgraded version of HRMS and Payroll

modules were made available to end users for

better performance.

DIGITIZATION OF LEGAL DOCUMENTS:

As a means of e-governance, the Corporation has

initiated process of digitizing security documents

submitted by borrowers while availing loan from the

Corporation. This is done with a view to avoid physical

movement of files to prevent misplacement / loss.

Digitizing of documents was implemented in Head

Office and subsequently the same has been extended to

all the branches. During the year, the digitization of legal

documents has been completed in almost all the

branches. The digitized data is stored in Branch Office as

well at Corporate Office.

SANCTIONS:

Sanctions of loans during the year 2012-13, under

various schemes touched ̀ 944.06 crore covering 1,598

cases as against ` 817.32 crore covering 1,485 cases

during 2011-12. Cumulative sanctions reached

` 12,226.27 crore covering 1,66,726 cases as on

31-03-2013.

The Corporation registered the highest ever

performance in the operational areas of sanctions,

disbursements, recovery and creation of standard loan

portfolio in the backdrop of not so encouraging

atmosphere which I feel needs commendation.

FLOW OF ASSISTANCE:

a. Assistance to micro and small scale enterprises:

During the year, the Corporation sanctioned an

amount of ` 606.96 crore to 1,271 small scale

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enterprises. Cumulative assistance to small scale

enterprises at the end of March 2013 stood at

` 6,695.58 crore to 1, 09,223 enterprises.

b. Assistance to medium enterprises: During the

year, the Corporation extended financial

assistance to 37 medium scale enterprises

amounting to ` 88.87 crore. The cumulative

assistance to medium scale enterprises at the

end of March 2013 stood at ` 1,094.54 crore to

1,753 enterprises.

c. Assistance to transport: During the year, the

Corporation extended financial assistance to 89

cases amounting to ` 12.18 crore. The

cumulative assistance to this sector stood at

` 762.31 crore to 40,645 cases.

d. Assistance to other sectors: During the year,

assistance to other sectors excluding MSMEs and

transport amounted to ` 236.05 crore to 201

cases. Cumulative assistance to other sectors

stood at ̀ 2,966.27 crore to 12,131 cases.

INDUSTRYWISE SANCTIONS FOR THE FY: 2012-13

(Amount : ` crore)

Sl.No Industry Amount % to the total

1

Hotels / Restaurants

-

163.30Construction Activities

-

236.05399.35 42.30

2

Food

127.79 13.54

3

Engineering

69.28 7.34

4

Non-Metallic Products

93.68 9.92

5

Miscellaneous Manufacturing

98.99 10.48

6

Chemicals

17.99 1.91

7

Others

15.43 1.63

8

Textiles & Readymade Garments

26.11 2.77

9

Rubber & Rubber Products

3.41 0.36

10 Printing & Publishing 19.06 2.02

11 Basic Metal 21.48 2.28

12 Transport / Tpt. Equipment 29.89 3.17

13 Wood & Cork 12.69 1.34

14 Paper & Paper Products 8.91 0.94

Total 944.06 100.00

SIZEWISE SANCTIONS FOR THE FY: 2012-13

Sl.No. Sanction No. Amount

% to the totalNo. Amt.

1 Up to ` 10.00 lakh 160 11.89 10.01 1.26

2 Above ` 10.00 lakh to ` 45.00 lakh 528 101.92 33.04 10.80




6 Above ` 500.00 lakh 29 108.78 1.82 11.52

Total 1598 944.06 100.00 100.00

DISBURSEMENT:

Disbursements made during the FY 2012-13 touched

` 734.70 crore as against ` 597.08 crore during the FY

2011-12. Cumulative disbursements reached ̀ 9,560.03

crore as on 31.03.2013.

RECOVERY:

The total recovery during the year stood at ` 792.89

crore as compared to ` 660.90 crore made in the

previous year. Recovery in respect of term loans was

` 791.71 crore and ` 1.18 crore in respect of financial

services.

INVESTMENT, VALUE OF OUTPUT AND EMPLOYMENT:

The investment catalysed by the Corporation in 2012-13

is expected to be ` 5,182.16 crore resulting in value of

output to ̀ 3,231.14 crore and generate employment to

10,358 persons.

CASES UNDER SECTION 29 OF SFCs' ACT:

At the beginning of the year 2012-13, there were 113

numbers of units in custody of the Corporation under

section 29 of SFC's Act involving an amount of ` 315.51

crore. During the year 38 units were added to the

portfolio of section 29 cases involving an amount of

` 104.39 crore. At the end of the year after 43 units

(Amount : ` crore)

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were transferred from section 29 portfolio there were

108 units still in the section 29 portfolio involving an

amount of ̀ 364.97 crore.

KPM (R) CASES :

During the year 2012-13, the Corporation referred 09

units under KPM(R) Act for issuing DC Certificates

involving an amount of ̀ 25.36 crore. At the end of the

year 2012-13 there were 728 units referred to DC for

issuing of certificates under KPM(R) Act involving an

amount of ̀ 602.45 crore.

FINANCIAL RESULTS :

During the year under review the Corporation earned a

gross revenue of ̀ 284.42 crore as against ̀ 234.63 crore

in FY 2011-12. The net profit was ̀ 17.02 crore against

` 11.09 crore for the year 2011-12.

TREASURY ACTIVITY :

During the year, Government of Karnataka provided an

equity capital of ` 53.66 crore (including ` 3.66 crore

under special OTS Scheme of Government of

Karnataka). As on 31-03-2013, the equity capital of the

Corporation stood at ` 885.01 crore (including share

application money of ` 226.46 crore) compared to

` 831.35 crore (including share application money of

` 212.29 crore) as on 31-03-2012.

The Corporation received a refinance of ` 107.00 crore

from SIDBI and repaid ` 153.16 crore during the year,

thereby the outstanding of SIDBI decreased to ̀ 829.21

crore from ` 875.37 crore as on 31-03-2013. The

interest cost on account of SIDBI Line of Credit

decreased to ` 77.21 crore for the year 2012-13, which

was ̀ 78.79 crore for the year 2011-12.

The Corporation redeemed bonds amounting to ̀ 83.17

crore during the year and raised ` 400 crore in two

tranches of ̀ 200 crore each at a semi-annual coupon of

9.24% and 9.08% respectively. The outstanding of

bonds increased to ` 1,189.50 crore, which was

` 872.67 crore as on 31-03-2012. The interest cost on

bonds increased to ` 85.31 crore from ` 64.19 crore for

the year 2011-12. The Corporation paid ` 9.46 crore to

the State Government as guarantee commission.

The total long-term liability of the Corporation

increased to ` 2,139.32 crore by the year end from

` 1,874.58 crore as on 31-03-2012. The total interest and

financial expenses increased to ` 184.27 crore for the

year 2012-13 from ` 158.87 crore for the year 2011-12

due to increased quantum of borrowing and increase in

cost of funds.

Share Holding Pattern of the Corporation as on 31.03.2013

(Amount : ` lakh)

Sl.

No.

Particulars

No. of

Shares

Paid up

equity

Percentage

holding

1

Government of Karnataka

Under Section 4(3)(a)

60863713 60863.71

94.14%

Special Capital issued under section 4A

1127500 1127.50

Total :

61991213 61991.21

2

Small Industries Development Bank of

India

Under Section 4(3)(b)

3210385 3210.39

5.83%

Special Capital issued under Section 4A

627500 627.50

Total :

3837885 3837.89

3 Insurance Companies under section 4(3)(c) 16100 16.10 0.02%

4 Public Sector Banks under section 4(3)(c) 7900 7.90 0.01%

5 Co-operative Societies and Banks under

section 4(3)(d)

1530 1.53 --

6 Other parties under section 4(3)(d) 935 0.94 --

Total : 65855563 65855.56 100.00%

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OTHER FINANCIAL SERVICE ACTIVITIES:

The Corporation entered strategic alliances with different organisations for different activities to enhance its fee based activities and to augment income generation to the Corporation.

General Insurance Business :

The Corporation renewed its agreement with IFFCO-TOKIO General Insurance Company from 2.1.2012 to 31.12.2013 for marketing of General Insurance products.

The Corporation mobilised substantial premium in general insurance activity by marketing IFFCO-TOKIO insurance products and earned a gross commission of ̀ 58.83 lakh for the FY 2012-13.

Acting as Corporate Resolution Agency

The Corporation has entered into MOU with Syndicate Bank and Vijaya Bank to assist the banks in their resolution of cases under SARFAESI Act. It earned an income of ` 2.75 lakh from this activity for the FY 2012-13.

E-Stamping

The Corporation entered into MOU with Stock Holding Corporation of India Limited (SHCIL) to take-up e-stamping activity through its branch network. Initially, the e-stamping activity was introduced in 12 branches and in Head Office. The Corporation introduced e-stamping activity at one more Branch Office during the FY 2012-13. The Corporation earned an income of ̀ 18.77 lakh for the FY 2012-13.

Monitoring of IPOs :

The Securities Exchange Board of India has recognised the Corporation for acting as a Monitoring Agency for public issues exceeding ̀ 500.00 crore. During the year, the Corporation earned revenue of ` 5.00 lakh under this activity.

HIRE PURCHASE & FINANCIAL SERVICES:

In the FY 2012-13, the HP&FS Department facilitated the assisted units to open twelve Foreign Letter of Credits (FLCs) to an extent of ` 852.57 lakh and earned an income of ` 4.62 lakh. The Corporation generated other income of ` 1.25 lakh as fee for recovery agency services.

INFRASTRUCTURE DEVELOPMENT ACTIVITY:

A separate wing of the Corporation viz., Infrastructure Development Department (IDD) was established with the objective of enhancing the profit generation of the Corporation.

During the year a lease-cum-sale agreement was signed and the Corporation took the possession of 10 acre of land allotted by KIADB.

a) A detailed project report preparation is under way to develop this land as an SME/IT Park.

b) Feasibility study was conducted for construction of Office cum Commercial building at Mysore and Shimoga in the land owned by Corporation.

INTERNAL AUDIT :

Keeping in view, the reorganisation and restructuring, a separate Audit Cell was established in Head Office in the FY 2012-13 for the audit of the Branches in Circle – I.

Audit Cells started at Mysore, Dharwad and Gulbarga are functioning at full-fledged level supervising the audit work of Circle–II, Circle–III & Circle - IV.

As a measure of internal control of system of audit of all the sanctioned loans after sanction and before the first disbursement, final audit before the last release was introduced during the year. The Audit Cells also conduct quarterly routine audit as per the audit plan covering all the operational areas including the legal aspects, finance, accounts and administrative matters. Apart from the above, the department also conducts special investigations/ audits wherever required and the reports are placed before the Audit Committee for its deliberation and decision.

The audit committee met four times during the Financial Year.

RTI ACT :

The Corporation received 391 applications, seeking information of different nature under RTI Act. At the beginning of the year 2012-13, there were 25 applications pending for action. Information in respect of 413 cases was furnished under RTI Act and remaining 3 applications were pending at the end of the year 2012-13.

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PERSONNEL AND ADMINISTRATION:

The manpower strength of the Corporation stood at 1,080 at the end of March 2013 as against 1,109 at the end of the March 2012, of which, 212 are SCs (19.63%) and 45 (4.17%) are STs. Identifying the training needs of employees based on their designated role and individual skill / capacities, the Corporation provided training to the employees. During the year, 89 employees were sent for external training programmes, out of which 75 are class 'A' and 14 are class 'B' employees.

In an effort to bring down the administration and personnel expenditure the Corporation deputed many employees to various other departments. As on 31-03-2013, 48 employees from Group 'A', 113 employees from Group 'B' and 2 Employees from Group 'C' were on deputation from the Corporation.

RISK MANAGEMENT DEPARTMENT:

As a step towards enhancing and fine tuning the risk management systems in the Corporation, a Credit Risk Management Policy is framed and adopted. The Department assists the Management in fixing and monitoring the sector wise and industry wise exposure as a measure of portfolio management. Further, the department also assists the management in reviewing of lending policy from time to time keeping the present market situation, trends and the need of the industry. The department makes an independent assessment of credit risk of loan proposals of ` 150 lakh and above. During the year, the department credit rated 141 loan proposals involving loan amount of ̀ 433.50 crore.

AUDITORS :

M/s. Rajagopal and Badri Narayanan, Chartered Accountants, Bangalore was appointed as statutory auditors for 2012-13.

AUDIT BY COMPTROLLER AND AUDITOR GENERAL OF INDIA:

The financial audit by the Controller and Audit General of India for the FY 2011-12 was completed.

ACKNOWLEDGEMENTS:

The Board of KSFC wishes to place on record its special thanks and gratitude to the Government of Karnataka for all the support extended for the settlement of small loans, equity support and guarantor support. Special thanks are also due to the SIDBI for the refinance support and for its constant help and guidance in every phase of the working of the Corporation. The Board places on record its thanks to the Department of Finance and Department of Industries & Commerce, GoK for their continued support and guidance. The Board expresses its thanks to the Govt. of India and the Reserve Bank of India for their guidance.

The Board also thanks LIC of India, UTI-MF, IFFCO- Tokio, HDFC, SHCIL and industry associations viz., KASSIA, AWAKE, LUB, BCIC & FKCCI etc. The Board expresses its thanks to the Commercial Banks, Apex Bank, Co-operative Banks, KSSIDC, KIADB and KPTCL for their co-operation.

The Board places on record its appreciation for valuable contributions of Sri M.Madan Gopal, I.A.S., during his tenure as Managing Director and also contributions made by Sri B.R. Prem Kumar, Sri Rajiv Dangi, Sri Gurudeep Singh Dang and Sri K.Santosh Kamath during their tenure as Directors.

The Board places on record its appreciation of the leadership, guidance, support and valuable contributions to KSFC by Sri L.V.Nagarajan, I.A.S., Chairman KSFC and Additional Chief Secretary, Finance Department, Government of Karnataka.

The Board takes this opportunity to thank the entrepreneurs for reposing faith in the Corporation, profuse gratitude to the shareholders for their unstinted support and the investors in the bond issues of the Corporation.

Finally, the Board acknowledges the dedicated services and efforts put in by Smt. Vandita Sharma, I.A.S., Managing Director and all the Officers and Officials of the Corporation.

By order of the Board

Sd/-

MANAGING DIRECTOR

14

INDEPENDENT AUDITORS' REPORTTo

The Shareholders

Karnataka State Financial Corporation

Bangalore.

1. Report on the Financial Statements

We Statutory Auditors of Karnataka State Financial Corporation appointed under section 37(3) of the State Financial Corporation Act, 1951 do hereby report upon the Balance Sheet as at March 31, 2013 and the Profit and Loss Account for the year then ended and a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Financial Statements

Corporation's Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Corporation. The Balance Sheet and the Profit and Loss Account have been prepared in accordance with Schedule I and II of KSFC General Regulations and give the information as required to be given in terms of the provisions of KSFC General Regulations. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on auditing issued by the Institute of Chartered Accountants of India. Those Standards required that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Corporation's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Corporation's management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4. Opinion

We invite your attention to :

a) Note No. 1(b) of Schedule O, Regarding investment made in equity shares of PSEs by KSFC. No provision is made for permanent diminution in the value of these investments, if any. The effect of the same on the profit for the year is not ascertained.

15

b) Note No.16(a) of Schedule O, regarding the collection of contingency deposit of ` 129.87 lakh from lessees towards anticipated claims from the Commercial Tax Department and a sum of ` 91.93 lakh was paid as adhoc payment against the above transaction. During the year under review a sum of ` 73.30 lakh has been received since, one of the appeal filed was decided in favour of the Corporation.

c) Note No. 16(b) of Schedule O, regarding applicability of Sales Tax / VAT liability in respect of assets taken over and sold U/s.29 of SFC's Act.

d) Note No.26, of Schedule O, regarding a sum of ` 41.34 lakh paid to Official Liquidator in pursuance of the court order in the case of Pavan Alloys Pvt. Ltd., and matching provision is made in the Profit and Loss Account of the Financial Year 2011-12, the same is continued to be shown as recoverable during the year.

e) Note No.27 of Schedule O, regarding difference of ` 14.52 lakh in Bank reconciliation of Canara Bank operative account and no provision is made in this regard, which needs further verification and reconciliation. The impact of the same on the profit for the year is not ascertained.

f) Note No.28 of Schedule O, regarding gratuity contribution receivables in respect of some employees on deputation. Such receivable needs to be identified, quantified and accounted, which has resulted in decrease in the profit for the year to that extent.

The impact of our observations as per Para (a) to (f) above, on the net profit for the year and on the current assets and liabilities is not ascertainable.

Subject to the Para (a) to (f) above, in our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the significant Accounting Policies & Notes forming part of Accounts gives the information required by KSFC General Regulations in the manner so required, gives a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Corporation as at March 31, 2013; and

b) In the case of Profit and Loss Account, of the Profit for the year ended on that date;

5. Report on Other Legal and Regulatory Requirements

In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this Report are in agreement with the books of account and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) to the extent applicable and conform to the statutory requirements prescribed under the State Financial Corporations' (SFCs) Act, 1951 circulars and guidelines issued by the Small Industries Development Bank of India (SIDBI).

Place : Bangalore

Date : 01.07.2013

For RAJAGOPAL & BADRI NARAYANANChartered Accountants

Sd/-M.S.RAJAGOPAL

PartnerMembership No.020244

Firm Reg. No.03024S

16

KARNATAKA STATE FINANCIAL CORPORATION

BALANCE SHEET AS AT 31st MARCH 2013 (Amount : ` lakh)

Particulars ScheduleAs at

31-03-2013 As at

31-03-2012

CAPITAL AND LIABILITIES

Share Capital A 88501.30 83134.88

Reserve Fund and Other Reserves B 4589.99 4678.89

Term Borrowings C 213931.97 187458.11

Current Liabilities & Provisions D 13380.87 10623.86

Total: 320404.13 285895.74

PROPERTY AND ASSETS

Cash & Bank Balances E 4064.50 17442.14

Investments F 62848.15 46736.18

Loans & Advances G 166092.84 146154.48

Fixed Assets H 5516.18 5746.24

Current Assets I 29318.67 15550.42

Profit and Loss Account Balance 52563.79 54266.28

Total: 320404.13 285895.74

Notes & Significant Accounting Policies

forming part of Accounts O

Sd/-Vasant Kumar

Dy. Gen.Manager (C)

For Karnataka State Financial Corporation

Sd/-L.V.Nagarajan I.A.S.,

Chairman

Sd/- Vandita Sharma I.A.S.,

Managing Director

Sd/-N.Aswatharam

Executive Director II

Directors

Sriyuths 1 K. Sathianandan2 P. Kumaresan3 G. S. Doreswamaiah 4 H.V.S. Krishna

Place: Bangalore Dare: 29-06-2013

As per our Report attachedFor Rajagopal & Badri Narayanan

Chartered AccountantsFirm Registration No. 003024S

Sd/-

(CA M.S.RAJAGOPAL)Partner

Membership No. 020244Place: Bangalore Date: 01-07-2013

17


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH 2013

Particulars ScheduleAs at

31-03-2013 As at

31-03-2012

INCOME Interest Income J 24665.85 20382.09Other Income K 3776.06 3081.02 Total: 28441.91 23463.11EXPENDITURE Interest and Other Financial Expenses L 18426.77 15887.36Personnel Expenses M 5687.64 4603.41Administrative Expenses N 1101.54 1022.61Bad Debts Written Off 245.74 130.81Provision towards Contingencies/Expenses 0.00 41.35Payment/Prov for Gratuity/Leave Salary 1016.62 426.24Depreciation/Amortization H 258.05 255.45 Total: 26736.36 22367.23 Profit Before Tax 1705.55 1095.88Add: FBT Prov w/d 0.00 21.69Add: Income Tax Refund – Prior Years 5.88 0.15Less: Provision for Wealth Tax 8.52 8.40Less: Wealth Tax Paid 0.42 0.00 Profit after Tax 1702.49 1109.02Add/Less: Loss Brought forward -54266.28 -55375.30 Deficit carried to Balance Sheet -52563.79 -54266.28Notes & Significant Accounting Policies forming O part of Accounts

Sd/-Vasant Kumar

Dy. Gen.Manager (C)



Chairman


Managing Director

Sd/-N.Aswatharam


Directors





Sd/-



(Amount : ` lakh)

18


Schedule to the AccountsAs at

31-03-2013 As at

31-03-2012

Schedule -A SHARE CAPITAL Authorised Share Capital 7,50,00,000 shares of ̀ 100 each 75000.00 75000.00 Issued and Paid up Capital 64100563 shares of ̀ 100 each fully paid up 64100.56 60150.75(P.Y.60150753 shares of ̀ 100 each fully paid up) 1755000 shares of ̀ 100 each, issued under section 4 A of the SFCs Act 1951 1755.00 1755.00 Amount Received towards Shares Pending Allotment 22645.74 21229.13(Refer Note No.7) Total: 88501.30 83134.88 Schedule -B RESERVE FUND AND OTHER RESERVES a) Special Reserve Fund u/s.35A of SFCs Act,1951 250.00 250.00 b) Special Reserve for the purposes of 175.00 175.00 Sec.36(1)(vii) of the Income Tax Act'1961 c) Revaluation/Amortisation Reserve on Fixed Assets Opening Balance 4253.89 4342.79 Less: Transferred to P& L A/c 88.90 4164.99 88.90 4253.89 Total: 4589.99 4678.89

(Amount : ` lakh)

19


31-03-2013 As at

31-03-2012

Schedule-C TERM BORROWINGS 1. Bonds: a. Guaranteed by State Govt.under 118950.00 82125.00 Sec.7(I) of the SFC's Act 1951 b. Yet to be guaranteed by State Govt. 0.00 118950.00 5142.00 87267.00 2. Line of Credit from SIDBI 82920.76 87536.87 3. Fixed Deposits accepted u/s 8 of SFCs ACT, 1951 a. Guaranteed by GOK 5.30 22.20 b. Other Deposits 10584.44 10589.74 11010.78 11032.98 4. Term Loan from Lakshmi Vilas Bank Ltd., 1471.47 1621.26 213931.97 187458.11


(Amount : ` lakh)

20

Total :


31-03-2013 As at

31-03-2012


Schedule -D

CURRENT LIABILITIES & PROVISIONS

A) CURRENT LIABILITIES :

1. Sundry Deposits 5150.11 2107.73

2. Other Liabilities 462.48 359.96

3. a. Amount received pending adjustments 471.64 630.00

b. Amount received towards Subsidy 217.80 118.05

c. Loan Application Fee Deposit 42.92 62.48

d. Amount received from GOK towards SC Equity scheme 85.99 115.64

e Amount received from GOK towards ST Equity scheme 88.61 906.96 88.09 1014.26

4. Margin Money towards:

a. Towards Agencies – KSCSTDC/ 880.58 886.45

KBCDC/KMDC/KWDC

Less: Amount receivable from Parties 872.00 8.58 876.92 9.53

b. Towards Seed Capital from SIDBI / IDBI 1536.36 1991.09

Less: Amount receivable from Parties 1448.88 87.48 1751.44 239.65

5. Accrued Guarantee Commission to GOK 133.33 50.00

6. a) Interest Accrued & not due on loans 3369.90 2831.47

b) Stamp Duty Payable to GOK 28.95 0.00

c) Int. on SSC payable to SIDBI 10.63 33.86

d) Other Accrued expenses 68.29 62.88

B) OTHER LIABILITIES & PROVISIONS

1. Towards Wealth Tax 8.52 8.40

2. Provision for Gratuity 616.10 2140.11

3. Provision for Leave Salary 1358.24 1014.38

4. Others:

a)Contingent Provision against Standard Assets 910.26 635.49

b) Provision for Loss on Restructured advances 219.69 74.79

5.Provision towards Other Debits 41.35 41.35

Total: 13380.87 10623.86

(Amount : ` lakh)

21


31-03-2013 As at

31-03-2012


Schedule -E CASH AND BANK BALANCES a) Cash on hand incl. Stamps on hand 97.81 60.18b) Balances with Banks i) Reserve Bank of India --- --- ii) SBI & Other Scheduled Banks 4278.03 17381.96 Less: Canara Bank Drawal facility balance (Net) 311.34 3966.69 0.00 17381.96 (Refer Note No 4) Total: 4064.50 17442.14 Schedule-F INVESTMENTS 1. Investments in Shares i) Shares acquired pursuant to underwriting agreements Irredeemable Preference Shares fully paid 16.28 16.28 less: Provisions 16.28 0.00 16.28 0.00 ii) Investment in Preference Shares - Others 79.52 79.52 ii) Investment in Equity Shares 42639.58 31839.58 less: Provisions 82.08 42557.50 70.90 31768.68 2. A. Investment in KITVEN FUND 600.00 487.50 Less : provisions 15.89 584.11 0.00 487.50 B. Investment in KAMCO & KATCO i) 16500 Shares of ̀ 100 each in KAMCO 16.50 16.50 ii) 500 Shares of ̀ 100 each in KATCO 0.50 17.00 0.50 17.00 C. Investment in NSCs 0.02 0.02 D. Investment in KESOL EQUITY FUND 5.00 5.00 less: Provisions 5.00 0.00 5.00 0.00 E. Investment in Insurance Cos for leave encashment 1026.54 0.00 3. Application Money on Shares in PSEs(Refer Note No 8) 18583.46 14383.46

Total: 62848.15 46736.18

(Amount : ` lakh)

22


31-03-2013 As at

31-03-2012


Schedule-G LOANS AND ADVANCES 1. LOANS AND ADVANCES a) Term Loans and Advances 189026.85 170509.41 b) Factoring Advances 108.01 108.01 c) Debentures Subscribed 3315.14 3337.81 d) Lease Finance 23.89 23.89 e) Deferred Payment Guarantee 491.34 516.62 f) Financial Guarantee 466.22 466.22 Total 193431.45 174961.96 Less: NPA Provisions 27338.61 166092.84 28807.48 146154.48 2. Hire Purchase Instalment due 389.59 398.68 Less: Provisions 389.59 0.00 398.68 0.00 Total: 166092.84 146154.48

Schedule – I CURRENT ASSETS

Deposits with Banks 22492.07 8530.16

Advances to Staff 2042.86 2477.07 Less: Provisions 7.95 2034.91 7.95 2469.12

Deposits and Other Advances. 258.74 320.82 Less: Provisions 91.37 167.37 79.45 241.37

Other Assets 16.78 34.41 Less: Provisions 7.29 9.49 7.29 27.12

Advances to suppliers 736.43 736.43 Less: Provisions 736.43 0.00 736.43 0.00

Assets acquired in satisfaction of loans 11.74 14.55 Less: Provision for loss on acquired assets 11.74 0.00 14.55 0.00

Advance Tax incl. TDS 39.58 31.37

Expenses recoverable – Other Debits 41.35 41.35

Prepaid Expenses 7.38 13.19

Accrued Interest on Loans & Advances 4526.52 4196.74

Total: 29318.67 15550.42

(Amount : ` lakh)

23

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Schedule – J

INTEREST INCOME

Interest on Loans & Advances (Net) 24594.26 20254.40

Interest on NCDs and Others 71.59 127.69

Total: 24665.85 20382.09

Schedule -K

OTHER INCOME

One Time Disbursement Fee 382.74 321.65

Sale of Application Forms 1.92 1.94

Interest on Bank Deposits & Other investments 827.13 481.78

Interest on staff advances 238.74 435.23

Premium on pre-mature closure of Accounts 159.88 110.82

Other income from Leasing & Merchant Banking 19.99 12.65

Dividend on Investments 4.00 6.04

Income from Financial Services 59.78 42.96

Income from E-Stamping Activity 18.69 6.40

Rent received 14.71 2.72

Profit from Sale of fixed assets 22.67 7.79

Bad Debts recovered 197.57 217.89

Loan Processing Fee 445.08 404.82

Profit from Sale of Acquired assets 4.43 23.00

Interest on Income Tax refund 0.00 0.48

Provision for NPAs withdrawn 1019.30 662.59

Income from KITVEN FUND (Venture Capital) 58.36 0.00

Interest Income from Inv in Insurance Cos (E Leave) 12.16 0.00

Miscellaneous Income 200.01 253.36

Revaluation/Amortization Reserve withdrawn 88.90 88.90

Total: 3776.06 3081.02

(Amount : ` lakh)

25

Schedule to the AccountsYear Ended 31-03-2013

Year Ended31-03-2012


Schedule – L

INTEREST AND OTHER FINANCIAL EXPENSES

Interest on Borrowings from SIDBI (Net) 7721.41 7878.98

Interest on Bonds 8530.59 6419.46

Interest on borrowings from Banks 142.44 156.57

Interest on Fixed Deposits 1031.74 715.94

Guarantee Commission to State Government 946.64 691.41

Stamp Duty to GOK 53.95 25.00

Total: 18426.77 15887.36

Schedule– M

PERSONNEL EXPENSES

Salaries and Allowances

(a) Managing Director 21.02 19.65

(b) Staff & Officers 4908.98 3870.50

(c) VRS (Refer Note No 24) 79.82 107.70

5009.82 3997.85

Medical Expenses

(a) Managing Director 0.11 0.11

(b) Staff & Officers 136.23 136.34 118.40 118.51

Contribution to Provident Fund 428.65 355.65

Staff Welfare Expenses 112.83 131.40

Total: 5687.64 4603.41

(Amount : ` lakh)

26

Schedule to the AccountsYear Ended 31-03-2013



Schedule–N

ADMINISTRATIVE EXPENSES

Traveling Expenses:

i) Managing Director 2.73 4.75

ii) Directors 3.97 3.73

Iii) Staff & Officers 320.81 327.51 317.26 325.74

Sitting Fees to Directors 1.49 1.97

Rent, Taxes & Insurance 149.38 141.17

Postage, Telegrams & Telephones 41.78 43.89

Motor Car Expenses 84.06 96.09

Printing & Stationery 57.33 46.58

Publicity and Advertisement 14.94 9.55

Books, Periodicals & Newspapers 2.96 3.51

Repairs, Renewals and Maintenance 82.94 93.88

Bank charges & Commission 2.16 5.60

Remuneration to Auditors:

i) Audit fees 2.11 2.08

ii) Reimbursed Expenses 0.10 2.21 0.10 2.18

Legal charges 7.63 3.55

Profl and Consultancy charges (Refer Note No.29) 271.28 145.06

Board Meetings / AGM expenses 8.89 8.41

Membership fees / Subscriptions for Institutions 0.84 4.91

Sponsorship Fees 6.57 13.50

Other Expenses 39.57 77.02

Total: 1101.54 1022.61

(Amount : ` lakh)

27


SCHEDULE - O

I NOTES & SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR 2012-13

1) a) Based on SIDBI's Master Circular No14/2011-2012 dated 02.09.2011 and circular No.05/2012-13 dated 16.01.2013, regarding Prudential Norms on Income Recognition, Asset Classification and Provisioning, Loans and Advances have been classified as Performing and Non-performing assets as under:

Sl No

Particulars 31.03.2013 31.03.2012

Loan O/s Provision Loan O/s Provision

1 Standard 160725.99 1129.95 140428.24 635.49

2 Sub Standard 3641.94 984.04 4787.14 708.19

3 Doubtful I 1529.06 412.93 2093.80 534.99

4 Doubtful II 2060.60 843.20 963.84 398.93

5 Doubtful III 25888.04 25888.04 27087.62 27087.62

Sub Total 193845.63 29258.16 175360.64 29365.22

6 Provision for investments 0.00 119.25 0.00 92.18

7 Provision for others 0.00 843.04 0.00 1620.45

Total 193845.63 30220.45 175360.64 31077.85

Less: Credit for sundry deposits

400.00 0.00 238.11

Total 193845.63 29820.45 175360.64 30839.74

0.00

b) Classification of Investments and provision for diminution in the value of investments have been made based

on RBI/SIDBI guidelines. Investments in preference shares have been classified as 'Held For Maturity'. Investments

in KITVEN Fund to the extent of `450.00 lakh has been classified as Held For Maturity' and balance `150.00 lakh

has been classified as 'Available for sale' and provision for diminution based on the valuation as on

31st March 2012 has been made as per RBI guidelines. The investment of ` 61000 lakh, including application

money paid to PSEs, by KSFC as indicated in Note no.(8), in Krishna Jala Bhagya Nigam Ltd, Karnataka Neeravari

Nigam Limited and Cauvery Neeravari Nigam Limited is the investment on behalf of the Government of Karnataka

as per the directions of the State Government, as evident from the relevant Government orders and the MoUs

entered into in this regard. Therefore, any change in the value of these investments attributes to the State

government. The Corporation does not foresee any adverse impact on KSFC's financials on account of diminution

in the value of these investments, if any. Hence no provision is made in this regard.

2) The outstanding loans and advances is shown net of provision for NPAs and at gross for standard assets as per

schedule G. However, provision made towards Standard Assets is shown under the head 'Current Liabilities &

Provisions'

(Amount : ` lakh)

28

3) The Corporation has a system of calling for periodic confirmation from its borrowers in respect of loans and

advances which have not been disputed by the borrowers.

4) Bank balances include cheques on hand of ̀ 2186.61 lakh (PY, ̀ 1310.35 lakh).

5) During the year, interest of ̀ 18907.45 lakh (memorandum account) was waived (PY, ̀ 19677.34 lakh), besides the

write off of bad debts of ̀ 245.74 lakh (PY, ̀ 130.81 lakh)

6) Contingent liabilities:

a) Letters of credit issued - ̀ 316.39 lakh (PY, ̀ 695.74 lakh)

b) Claims by the customers and others not acknowledged by the Corporation - ̀ 222.87 lakh (PY, ̀ 178.12 lakh.)

c) Disputed Sales Tax / VAT liability - ̀ 37.50 lakh (PY ̀ 37.50 lakh)

d) The interest amount payable on matured fixed deposits is subject to renewal by the depositors and the amount is

not quantifiable.

e) Claims of dismissed employees/VRS employees pending before Courts – Amount not quantifiable.

f) Amount committed to KITVEN Capital Fund 2- ̀ 150.00 lakh (PY, ̀ 300.00 lakh)

g) Disputed service tax liabilities - ̀ 67.29 lakh (PY ̀ 67.29 lakh )

h) Claims from RTA towards road tax arrears - not quantifiable

7) Share capital

a) Paid up capital as on 01-04-2012 61905.75 Add: Conversion of share application money during the year into

paid up capital, the amounts received vide following Government orders

FD 56 BFC 2009 dated 27.03.2010 834.34 FD 56 BFC 2009 dated 19.10.2010 245.14 FD 56 BFC 2009 dated 17.01.2011 86.00 FD 56 BFC 2009 dated 05.03.2011 162.20 FD 56 BFC 2009 dated 23.03.2011 88.85 FD 56 BFC 2009 dated 30.03.2011 148.61 FD 21 BFC 2010 dated 30.03.2011 1850.00 FD 41 BFC 2011(P) dated 19.08.2011 113.99 FD 41 BFC 2011 dated 29.03.2012 200.00 FD 41 BFC 2011 dated 27.08.2012 220.68 3949.81

Paid up capital as on 31-03-2013 65855.56

(Amount : ` lakh)

29

b) The share application money represents the following amounts received from Government of Karnataka:

Equity received vide GO No 48 BFC 2012 dated 28-03-2013 64.91



Pass through equity during FY 2011-12 15000.00

Equity vide Go No CI 76 SSI 2009 dated 30.03.2009 2500.00

Total 22645.74

8) Investment in the equity of PSEs As per the directions of the Government, the Corporation has invested ̀ 61000 lakh in PSEs of GoK as equity as stated below.

PSEs Year

Cauvery Neeravari Nigam Ltd.

Karnataka Neeravari Nigam Ltd

Krishna Bhagya Jala Nigam Ltd.

Total

2007-08 3000.00 12000.00 0.00 15000.00

2008-09 5383.46 8703.00 5913.54 20000.00

2009-10 6000.00 0.00 5000.00 11000.00

2011-12 0.00 4200.00 10800.00 15000.00

Total 14383.46 24903.00 21713.54 61000.00

a) KBJNL has issued share certificates for the entire investment b) KNNL has to issue share certificates only for the investment made during FY 2011-12 c) CNNL is yet to allot shares. The Nigam has informed during May 2013 that action will be taken to issue shares

by placing the matter in the ensuing meeting of Board of Directors

9) Interest on bonds The interest on bonds includes ` 143.26 lakh towards 'interest paid on application money' in respect of bonds

issued during year.

10) Payment of EMI to Lakshmi Vilas Bank: ` 4.75 lakh (PY ̀ 3.88 lakh) shown under 'Expenses Recoverable' represents interest excess charged by bank and is

pending reconciliation by the bank.

11) Rebate from SIDBI In accordance with the tripartite MoU entered into with SIDBI and Government of Karnataka on 31.10.2003,

SIDBI had been giving a rebate of 2% in the rate of interest on refinance provided during FY 2003-04, FY 2004-05

and FY 2005-06. On 17.12.2009, a renewed tripartite MoU was signed, wherein 2% rebate was restricted to

refinance provided only during 2003-04. SIDBI vide its letter dated 15.05.2012 claimed refund of ̀ 139.99 lakh as

excess rebate passed on for the period from 31.10.2008 to 17.12.2009 and rebate paid for the refinance given

during 2004-05 and 2005-06.

(Amount : ` lakh)

(Amount : ` lakh)

30

The Corporation contested the claim in respect of rebate for the period from 31.10.2008 to 17.12.2009 based on

condition in MoU that the MoU will remain in force for a period of 5 years or the Corporation is fully restructured,

whichever is later. The rebate refundable in respect of disbursement for FY 2004-05 and FY 2005-06 for the period

from 17.12.2009 to 01.03.2011 was estimated at ̀ 22.30 lakh and provided for in the accounts for the FY 2011-12.

Since SIDBI has not considered the request of the Corporation for extending rebate for the period from

31.10.2008 to 17.12.2009, additional provision has been made for the balance amount of ` 117.69 lakh and

charged to Interest & Financial Expenses in FY 2012-13.

12) Debentures subscribed amounting to ` 3315.14 lakh (Previous year ` 3337.81 lakh) are in the nature of

loans/advance facilities provided by the Corporation and includes ̀ 2045.07 lakh (previous year ̀ 2045.07 lakh) in

respect of which debenture certificates are yet to be received.

13) The Fixed Deposits include matured deposits pending renewal / repayment.

14) The Corporation in the present situation does not foresee future taxable income within reasonable period to wipe

out the carry forward losses. Hence deferred tax asset/liability has not been created in the books as per

Accounting Standard 22 issued by Institute of Chartered Accountants of India. 15) The total gross investment in hire purchase and lease and the present value of minimum payments receivable at

the balance sheet date is nil. Therefore no disclosure is made as required under Accounting Standard 19 issued by

Institute of Chartered Accountants of India (ICAI).

16) (a)Contingency deposit of `129.87 lakh representing amount collected from lessees towards anticipated claims

from Commercial Tax Department towards sales tax on lease rentals is carried as liability. An adhoc payment of

` 91.93 lakh was made and appeal was filed. This amount has been shown as advance in the earlier years. The

appeal has been decided in favour of the Corporation and refund of ` 73.30 lakh has been received by the

Corporation for the AY 1995-96 and 1996-97. (b)There is divergent opinion on the applicability of sales tax/VAT liability in respect of the assets taken over and

sold u/s.29 of SFCs' Act. The Corporation has taken a legal opinion which indicates that the sale of assets taken

over and sold u/s.29 does not attract sales tax/VAT. The matter is pending before the Government of Karnataka.

The management does not foresee any liability on this account.

17) Impairment of assets: During the year there is no impairment of assets presently used by the corporation having any impact on the net

profit of the Corporation for the year as contemplated by the Accounting Standard 28 (AS - 28)

18) Revaluation of Assets Pursuant to SIDBI's Letter No.420/DFID/SFCs, dated 1st April 2008, the land and buildings of the Corporation,

including the leasehold land held by the Corporation at No.1/1,Thimmaiah Road, Bangalore-52, had been

31

revalued during FY 2007-08 to reflect the true value of assets as on 31.3.2008 based on the valuation of Chartered

Engineer. In terms of the Accounting policy, an amount of ̀ 88.90 lakh, representing depreciation/amortization is

debited to profit and loss account with a matching withdrawal from the Revaluation Reserve account and

credited to profit and loss account under Other Income (Schedule-K).

19) Current Liabilities include balances in State subsidy and sundry deposits carried forward for the past few years.

20) 'Miscellaneous Income' includes forfeited amounts in respect of earnest money/sundry deposits.

21) Gratuity and Leave encashment liability

a) The gratuity liability as at the end of the year, as per actuarial valuation, is determined based on the maximum

limit of ̀ 6 lakh per employee in accordance with the Government Order FD (SPL) 03 PEN 2009 dated 03.06.2010

and further clarification vide State Government letter No FD 27 BFC 2011 dated 15.11.2011. As against the total

liability of ̀ 3336.90 lakh, a sum of ̀ 2719.92 lakh is funded as given below.

Disclosure as per AS 15 – Revised- Defined Benefit Plans-Gratuity

Change in benefit obligations

Obligations at period beginning- Current 236.04

Obligations at period beginning - Non-current 2580.59

Service Cost 405.17

Interest on Defined benefit obligation 219.93

Benefits settled -134.99

Actuarial (gain)/loss 29.27

Obligations at period end 3336.02

Current Liability (within 12 months) 245.86

Non Current Liability 3090.16

Change in plan assets

Plan assets at period beginning, at fair value 554.33

Expected return on plan assets 126.89

Actuarial gain/(loss) -24.93

Contributions 2198.62


Plans assets at period end, at fair value 2719.92

Fund Status

Closing PBO 3336.02

Closing Fair value of plan assets 2719.92

Closing Fund status (616.10)

Net asset/(Liability) recognized in balance sheet (616.10)

The incremental liability of ̀ 616.10 lakh for FY 2012-13 as per actuarial valuation has been fully provided for.

(Amount : ` lakh)

32

b) Disclosure as per AS 15 - R - Defined Benefit Plans- Employees Leave Salary

Change in benefit obligations

Obligations at period beginning - Current 69.71

Obligations at period beginning - Non-current 944.67

Service Cost 276.50

Interest on Defined benefit obligation 81.15

Benefits settled 0.04

Actuarial (gain)/loss -13.75

Obligations at period end 1358.25

Current Liability (within 12 months) 101.01

Non Current Liability 1257.24

Change in plan assets Plans assets at period beginning, at fair value 0

Expected return on plan assets 6.76

Actuarial gain/(loss) 5.40

Contributions 1014.42


Plans assets at period end, at fair value 1026.54

Fund Status

Closing PBO 1358.25

Closing Fair value of plan assets 1026.54

Closing Fund status (331.71)

Net asset/(Liability) recognized in balance sheet (331.71)

The incremental liability of ̀ 331.71 lakh for the FY 2012-13 as per actuarial valuation is fully provided for.

22) Segment Reporting The Corporation's predominant risks and returns are from the segment of finance and finance related activities,

which constitute the major revenue of the Corporation for reporting period. Since this being a single business

segment, the segment information as per Accounting Standard 17 “Segment Reporting” is not disclosed

23) As a part of CDR package extended to a borrower, NCD outstanding amount of ` 240 lakh has been restructured

for repayment. Of the total simple interest overdue there on of ` 159.04 lakh, ` 79.52 lakh is converted into

funded interest term loan repayable from 2013-14 to 2015-16. Redeemable preference shares have been issued

for the balance of ` 79.52 lakh due for redemption from 2016-17 to 2019-2020. In accordance with the

guidelines issued by SIDBI the preference shares have been treated as investment with corresponding credit to

interest capitalization account. The income will be recognized in the year of repayment/redemption as per the

guidelines of SIDBI. A provision of ` 11.93 lakh has been made, since the account is classified as 'Sub Standard'

during the FY 2012-13

24) VRS compensation of ` 79.82 lakh includes waiver of interest on employees housing loans of ` 27.82 lakh in

respect of employees retired on VRS.

(Amount : ` lakh)

33

25) Reporting under AS 29

Sl

No

Nature of the provision Opening

Balance

Provision

made

during

2012-13

Provision

adjusted

during the

year

Closing

provision

1 Provision for gratuity 2140.11 616.10 2140.11 616.10

2 Provision for leave salary 1014.38 343.86 0 1358.24

3 Provision for wealth tax 8.40 8.52 8.40 8.52

Total 3162.89 956.33 3162.89 956.33

26) An amount of ` 41.35 lakh was paid to Official Liquidator during the FY 2011-12 by debiting Other Debits

recoverable in pursuance of the court order in the case of Pavan Alloys Pvt Ltd. The amount represents sale

proceeds of secured assets realised and appropriated to loan account by corporation in the earlier years. The

amount is continued to be shown as recoverable

27) The bank balance of operating account with Canara bank as per cash book is ` 17.94 lakh while the balance as

confirmed by the bank is ` 3.42 lakh. There is difference of ` 14.52 lakh, which needs further verification and

reconciliation. The management does not foresee any impact on the profit on this account.

28) The gratuity contributions in respect of some of the employees on deputation have not been received fully. The

amounts identified and received pertaining to the FY 2012-13, have been accounted. Further receivables need to

be identified and accounted on receipt basis.

29) The professional and consultancy charges include ` 231.46 lakh, the amount paid towards arranger's fees for

private placement bonds of ` 40000 lakh. The comparative figure for previous year was ` 86.03 lakh for private

placement bonds of ̀ 20000 lakh.

30) Previous year's figures are regrouped and rearranged wherever necessary to conform to current year

requirements.

(Amount : ` lakh)

34

Schedule- O

II SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR 2012-13

1. Basis of Preparation of Financial Statements:

These financial statements have been prepared and presented under the historical cost convention and accrual basis of accounting, unless otherwise stated and in accordance with the generally accepted accounting principles ("GAAP") in India and Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and conform to the statutory requirements prescribed under the State Financial Corporations' (SFCs) Act, 1951 circulars and guidelines issued by the Small Industries Development Bank of India (SIDBI).

2. Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

3. Revenue Recognition :

i) Interest on Loans and Advances is accounted on accrual basis except interest on advances identified as Non Performing Assets (NPAs) as per the guidelines of SIDBI which is accounted on the basis of receipt of cash/ cheques and realization thereof.

ii) Investigation fees, up-front fees, etc are accounted on the basis of receipt.

iii) Dividend income is accounted on declaration of dividend for the relevant year.

iv) Interest on investments is accounted on accrual basis.

v) Residual income is accounted on accrual basis.

vi) Service tax/VAT collections are treated as liabilities and input credits and payments are adjusted against the liability.

4. Fixed Assets and Depreciation:

i) Fixed Assets, including leased assets but excluding free and leasehold lands, buildings are accounted for on historical cost basis.

ii) Free and leasehold land and buildings are stated at revalued amounts based on market value as on 31st March 2008 on the basis of technical evaluation and reduced by the amounts transferred to profit and loss account, each year

iii) Costs directly incurred on acquisition / taken over assets are capitalized.

iv) Depreciation is provided on straight line method at the following rates :

1. Building 4%

2. Furniture & Fixtures 10%

3. Fans & Electrical fittings, Internal Telephones and Equipments 15 %

4. Motor cars, Bicycles, Computers and Motor Cycles 20 %

35

v) Depreciation on additions made during the year is provided for the full year and in respect of sale / disposal no depreciation is provided in the year of sale / disposal.

vi) Revalued amounts in respect of buildings, including building on lease-hold land are depreciated over the remaining useful life of the asset. Revalued amount in respect of land at No 1/1, Thimmaiah Road, Bangalore - 52 is amortised over the balance lease period, commencing from FY 2008-09

vii) Depreciation on account of revaluation of assets is debited to profit and loss account with a corresponding withdrawal of amount from the Revaluation Reserve account from the year following the year of revaluation.

viii Depreciation on all the leased assets is provided on straight - line method over the primary period of lease.

ix) Assets whose actual cost does not exceed ̀ 5,000 are fully depreciated in the year of purchase.

x) Depreciation on additions or extensions that become an integral part of the existing assets is provided over the remaining useful life of the asset.

5. Lease Accounting

The guidance note on "Accounting for lease" issued by the Institute of Chartered Accountants of India (ICAI) has been adopted in respect of assets given on lease and the lease equalisation / terminal adjustment is provided on the basis of schedule of lease rentals due over the period of lease for lease transactions. Accounting Standard 19 issued by ICAI has been adopted in respect of assets given on lease and Hire Purchase.

6. Investments

Investments are classified as "Held for Maturity" and "Available for sale" category and provision for net diminution in the value of investment is made as per the guidelines issued by RBI/SIDBI.

7. Advances

Loans and Advances, including Hire Purchase Advances are classified as Standard, Sub-standard, Doubtful and Loss assets based on the prudential norms prescribed by the SIDBI. Necessary provisioning required thereon has also been arrived at as per the SIDBI guidelines. Provisions have been netted off against loans and advances / other dues.

8. Appropriation of Repayments

i. Loan receipts are appropriated as follows

a. Other debits / dues

b. Interest

c. Principal.

ii. (A) Receipts in cases of appropriation of sale proceeds of financed assets taken over under Section 29 of the SFCs ACT 1951, are appropriated as follows:

a. Principal

b. Other debits / dues

c. Interest

(B) in respect of sale proceeds of other secured assets appropriation is done as per clause (i) above.

iii. Appropriation in case of One time settlements (OTS) is based on the specific approvals.

9. Staff Benefits (AS 15)

(i) Contributions to the employees' provident fund are recognized as an expense at the un-discounted amount in the profit and loss account of the year in which the related service is rendered.

36

(ii) Post employment and other long term employee benefits viz., Contribution to Gratuity, Leave encashment etc, are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

(iii) The compensation paid towards VRS is expensed in the year of incidence.

10. Impairment of Assets (AS 28)

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

11. Borrowing costs (AS 16)

Borrowing costs that are attributable to the acquisition or construction of qualifying asset are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other indirect costs are charged to revenue.

12. The corporation follows the guidelines of Segment Reporting as required under AS 17 issued by ICAI.

13. Provisions for Current and Deferred Tax (AS 22)

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

14. Provision, Contingent Liabilities and Contingent Assets: (AS 29)

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

Sd/-Vasant Kumar

Dy. Gen.Manager (C)



Chairman


Managing Director

Sd/-N.Aswatharam


Directors





Sd/-



37

ADDITIONAL DISCLOSURE AS PER SIDBI GUIDELINES

(A) CAPITAL :

Sl. No.

31-MAR-2013

31-MAR-2012

a) CRAR 16.15% 13.31% Core CRAR 14.97% 12.49%

b) Supplementary CRAR (Subordinated Debt.& Tier II Capital)

c) Risk Weighted Assets(Net) (`lakh) i) On Balance Sheet 212206.16 202258.23 ii) Off Balance Sheet 794.05 1396.34

(B) Shareholding pattern as on 31-3-2013

No. Category No of shares % of holding

1 Government of Karnataka 60863713 94.95

2 Small Industries Development Bank of India 3210385 5.01

3 Insurance Companies, investment trusts and other financial institutions

16100 0.03

4 Public Sector Banks 7900 0.01

5 Other parties 2465 -

TOTAL: 64100563 100.00

(C) ASSET QUALITY AND CREDIT CONCENTRATION :

a Percentage of net NPAs to net loans and advances : 2.78% (3.72%) b Amount and percentage of net NPAs under the prescribed asset classification categories

Net NPAs (` lakh)

Percentage

Sub-standard assets 2657.90

(3289.62) 1.61

(2.27)

Doubtful assets 1933.53

(2123.72) 1.17

(1.45)

Total : 4591.43

(5413.34) 2.78

(3.72) Figures in bracket indicate previous year's figures

38

Particulars

-- --

(D) Particulars of Accounts Restructured

Others

Standard advances restructured

No. of Borrowers 76 (70)

Amount outstanding (` lakh) 4063.36 (2587.70)

Sacrifice (diminution in the fair value) ( ` lakh) 219.69

Sub Standard advances restructured



Sacrifice (diminution in the fair value) ---

Doubtful advances restructured



Sacrifice (diminution in the fair value) ---

TOTAL

No. of Borrowers (` lakh) 90 (90)


Sacrifice (diminution in the fair value) (` lakh) 219.69 (74.79)

Figures in bracket indicate previous year's figures Restructuring under CDR Mechanism & SME Debt Restructuring-Nil, PY-Nil

(E) Amount of provisions/write off made during the year towards standard assets, NPAs, investments (other than those in the nature of an advance, income tax).

Assets Provisions/Write Off

2012-13 2011-12

Standard Assets (494.46) (120.50) NPAs (252.03) 676.57 Investments (27.07) (24.29)

Total : (773.56) 531.78

Note: Figures in brackets indicate the additional provision made towards NPAs and figures other than in bracket indicate the withdrawal of excess provision made

(Amount : ` lakh)

39

(F) MOVEMENT IN NET NPAs :

Particulars 31.03.2013 31.03.2012

Opening balance 5413.34 3065.46 Add: Additions 3365.51 5222.37 Less : Recovery during the year 4187.42 2874.49 Closing balance 4591.43 5413.34

(G) Credit exposure as percentage to capital funds and as percentage to total assets in respect of

Sl.No. Assets % to capital funds % to total assets 1 The largest single borrower 1.26 0.44 2 The 10 largest single borrowers 8.96 3.11

(H) Credit exposure to five largest industrial sectors as % to loan assets

Sl. no. % to loan assets 1 Hotel and construction Industries 33.17 2 Food excluding beverages 14.40 3 Non metallic minerals 9.51 4 Metallic products 5.91 5 Other industries 6.21

(I) LIQUIDITY :

Items Less than

or equal to 1 year

More than 1 year &

upto 3 years

More than 3 years &

upto 5 years

More than 5 years up to

7 years

More than 7 years

Total

Rupee assets 77748.87 71133.15 35332.70 8969.31 661.59 193845.62

Rupee liabilities 30507.19 34223.30 44228.96 30646.84 74325.69 213931.97

Surplus/(Deficit) 47241.68 36909.85 -8896.26 -21677.53 -73664.10 -20086.35

Cumulative Surplus/(Deficit) 47241.68 84151.53 75255.27 53577.75 -20086.35 -20086.35

% Surplus/(Deficit) 154.85% 107.85% -20.11% -70.73% -99.11% -9.39%

(J) OPERATING RESULTS :

2012-13 2011-12 a) Interest income as a % to average working funds 12.64 11.48 b) Non- interest income as a % to average working funds 1.94 1.74 c) Operating profit as a % to average working funds 1.08 0.42 d) Return on average assets % 0.68 0.50 e) Net profit per employee ( ` Lakh) 1.58 1.00

40

(Amount: ` lakh)

(Amount: ` lakh)

(K) Details of Gross Advances, Gross NPAs, Net Advances and Net NPAs

Particulars Amount

1 Standard Advances 160725.99

2 Gross NPAs* 33119.64

3 Gross Advances** (1+2) 193845.63

4 Gross NPAs as a percentage of Gross Advances (2/3)(in%) 17.08%

5 Deductions

(i) Provisions held in the case of NPA Accounts as per asset classification (including additional Provisions for NPAs at higher than prescribed rates)

28128.21

(ii) DICGC / ECGC claims received and held pending adjustment --

(iii) Part payment r eceived and kept in Suspense Account or any other similar account

400.00

(iv) Balance in Sundries Account (Interest Capitalization –

Restructured Accounts), in respect of NPA Accounts

--

(v) Floating Provisions --

(vi) Provisions in lieu of diminution in the fair value of restructured accounts classified as NPAs

--

(vii) Provisions in lieu of diminution in the fair value of restructured accounts classified as standard assets

--

6 Net Advances (3-5) 165317.42

7 Net NPAs {2-5( i + ii + iii + iv + v + vi)} 4591.43

8 Net NPAs as percentage of Net Advances (7/6) (in%) 2.78%

* Principal dues of NPAs plus Funded Interest Term Loan (FITL) where the corresponding contra is parked in Sundries Account (Interest Capitalization – Restructured Ac counts), in respect of NPA Accounts ** For the purpose of this Statement Gross Advances mean all outstanding loans and advances including advances for which refinance has been received but excluding rediscounted bills, and advances written off at Head Off ice level

41

(Amount: ` lakh)

KARNATAKA STATE FINANCIAL CORPORATIONCASH FLOW STATEMENT

FOR THE YEAR ENDED 31st MARCH 2013

ParticularsYear Ended31-03-2013


Opening Balance: -- Cash 60.18 63.44 -- Bank balances 17381.96 3588.14 -- Fixed Deposit with Banks 8530.16 18434.03 Sub Total(A) 25972.30 22085.61Add: Cash Inflow

Share Capital -- Ordinary Share capital 0.00 0.00 -- Special Share capital 0.00 0.00 -- Redeemable preference share capital 0.00 0.00 -- Amount received on Share Application 5366.42 15313.99

Bonds and debentures -- Secured (guaranteed bonds and others) 40000.00 20000.00 -- Unsecured

Borrowings -- State Government 0.00 0.00 -- SIDBI (LOC) 10700.00 14100.00 -- Scheduled banks 0.00 0.00 -- Others 0.00 0.00

Deposits -- State Government 0.00 0.00 -- Others (guaranteed by State Government) 0.00 0.00 -- Other deposits 10055.96 10125.79

Sale of Investments -- Own investments 0.00 0.00 (a) Government Securities 0.00 0.00 (b) Acquired under underwriting agreements 0.00 0.00 ( c) Others 0.00 0.00 -- Investments in nature of loans and advances (a) Out of special class of share capital 0.00 0.00 (b) Others 85.45 0.00

Loans and advances – Recoveries -- Term loans (including working capital) 54915.35 45266.68 -- Bridge loans (term loan and subsidy loan) 0.00 0.00 -- Hire purchase / Lease finance 0.00 0.00 -- Financial Services 0.00 153.94 -- HPFS 51.14 114.39 -- Assistance out of special class of share capital 0.00 0.00 -- Margin Money 0.25 1.80Subsidy received from State Government 12342.00 4472.81Subsidy recovered from parties not fulfilling the terms and conditions for availing subsidy 0.00 0.00Subsidy received from SIDBI 270.17 65.30Other Inflows 1075.07 0.00Sale of fixed assets 157.05 0.00Net decrease in working capital 245.50 0.00Cash inflow from operations 2114.70 743.68

Total Cash Inflow (B) 163351.36 132443.99

(Amount : ` lakh)

42

ParticularsYear Ended31-03-2013


Less: Cash Outflow Redemption of redeemable preference share capital 0.00 0.00Repayment of Bonds and debentures -- Secured (guaranteed bonds and others) 8317.00 8928.50 -- Unsecured (Subsidy bonds redeemed) 0.00 0.00

Repayment of Borrowings -- RBI 0.00 0.00 -- State Government 0.00 0.00 -- SIDBI Refinance 15316.11 20208.73 -- SIDBI SSC 454.73 864.06 -- Scheduled banks 149.80 132.88 -- Others 0.00 0.00 -- Margin Money 0.10 0.97 Repayment of Deposits -- State Government 0.00 0.00 -- Other (guaranteed by State Government) 0.00 0.00 -- Other deposits 10499.20 10344.35

Purchase of Investmens -- Own investments (a) Government Securities 0.00 0.00 (b) Acquired under underwriting agreements 0.00 0.00 (c) Others- Advance towards Cap Exp- KIADB 0.00 480.05 (d) Others- Employee Benefit Funds 3166.65 0.00 -- Investments in nature of loans and advances 0.00 0.00 (a) Out of special class of share capital 0.00 0.00 (b) Others 15150.00 149.00

Disbursements of Loans and advances: -- Term loans ( including working capital) 73470.44 59707.84 -- Bridge loans (term loan and subsidy loan) 0.00 0.00 -- Hire purchase / Lease finance 0.00 0.00 -- Factoring/ Working capital financing 0.00 0.00 -- Bills discounted/ MB&FS 0.00 0.00 -- Assistance out of special class of share capital 0.00 0.00 -- Margin Money 0.00 0.00Purchase of fixed assets 38.64 238.74Subsidy disbursed from Amounts received from State Government for Subsidy 9960.03 5064.94Subsidy disbursed from Amts received from SIDBI for Subsidy 272.09 79.13Amounts refunded to State Government for subsidy recovered from 0.00 0.00parties for not fulfilling the terms and conditions for availing subsidy 0.00 0.00 Subsidy Advances 0.00 0.00Other Outflows 0.00 232.29Dividend paid 0.00 0.00 Income Tax Paid 0.00 0.00Net increase in working capital 0.00 40.21Cash outflow from operations 0.00 0.00 Total Cash Outflow (c) 136794.79 106471.69Closing balances: -- Cash 97.81 60.18 -- Bank 26458.76 25912.12

Total (D) 163351.36 132443.99

43

KARNATAKA STATE FINANCIAL CORPORATIION

Schedule of Bonds outstanding

Amount : ` lakh

Sl No

Series No

ISIN

Description of bond

Redemption

Outstanding as on

31-03-2012

Bonds issued

Bonds redeemed

Outstanding as on

31-03-2013

1

4

INE549F 08426

KSFC 7.35% Bonds 2013

25% each on 28-01-2010

28-01-2011 28-01-2012

28-01-2013

2125.00

0.00

2125.00

0.00

2

5

INE549F 08434


30%,30%,40% on 28-01-2014 28-01-2015 28-01-2016

10000.00

0.00

1050.00

8950.00

3

6

INE549F

08442


50% each on 28-01-2017 28-01-2018

10000.00

0.00

0.00

10000.00

4 7 INE549F

09051


25% 13-02-2018

75% 13-02-2019

10000.00 0.00 0.00 10000.00

5 8 INE549F

08459


Bullet Payment on 27-01-2020

7700.00 0.00 0.00 7700.00

6 9 INE549F

08467 KSFC 8.39% Bonds 2020


12300.00 0.00 0.00 12300.00

7 10 INE549F

08475 KSFC 8.60% Bonds 2022

Bullet Payment on 25-01-2022 10000.00 0.00 0.00 10000.00

8 12 INE549F

08483 KSFC 9.23% Bonds 2019

30%,35%,35% on

02.01.2017 02.01.2018 02.01.2019

10000.00 0.00 0.00 10000.00

9

13 INE549F

08491


Bullet Payment on

02-01-2023 10000.00

0.00

0.00

10000.00

10

14 INE549F

08509 KSFC 9.24%

Bonds 2024

50%, each on 18-10-2023

18-10-2024 0.00

20000.00

0.00

20000.00

11

15 INE549F

08517 KSFC 9.08%

Bonds 2025

25%, each on 04-02-2022 04-02-2023 04-02-2024 04-02-2025

0.00

20000.00

0.00

20000.00

12

77

INE549F

08384

KSFC7.92% SLR Bonds 2012


3147.00

0.00

3147.00

0.00

13

78

INE549F

08418

KSFC

6.75% SLR Bonds 2013


1995.00

0.00

1995.00

0.00

Total

87267.00

40000.00

8317.00

118950.00

44

KARNATAKA STATE FINANCIAL CORPORATIONHEAD OFFICE: KSFC Bhavan, No. 1/1, Thimmaiah Road, BANGALORE 560 052. Phone : 22263322 (11 lines)

45

BANGALORE CIRCLE (Circle I)

MYSORE CIRCLE (Circle II)

GULBARGA CIRCLE (Circle IV)

RAMANAGAR - 562 159.Opp. to Zilla Panchayath Office

sri l.v. nagarajan, - ksfcksfc.in/ksfcwebportal/pdfs/ar-e_1469965703.pdf · the highest in the...

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