Chennai: At its seventh annual general meeting held on June 17, 2004, the shareholders of Infrastructure Development Finance Company Limited (IDFC) approved a dividend at the rate of 10 per cent Re1 per equity share.

In FY 2004, IDFC recorded its highest approvals and disbursements of Rs5,727 crore for 81 projects and Rs2,704 crore for 59 projects, respectively. This represented an increase of 149 per cent and 185 per cent respectively over approvals and disbursements in the previous financial year (approvals of Rs2,304 crore for twenty-four projects and disbursements of Rs949 crore for twenty-nine projects). On a cumulative basis, as on March 31, 2004, IDFC's gross approvals were Rs18,187 crore for 156 projects and gross disbursements were Rs6,878 crore for 87 projects. The approvals net of cancellations were Rs11,456 crore and the outstanding disbursements were Rs5,161 crore.

Total income and profitability of IDFC in FY 2004 were the highest ever. Total income increased by 39 per cent to Rs637.08 crore from Rs458.87 crore in the previous financial year (FY 2003). Profit before tax (PBT) in FY 2004 increased by 36 per cent to Rs271.95 crore from Rs200.40 crore in FY 2003. After providing Rs12.80 crore for tax, the profit after tax (PAT) in FY 2004 increased by 44 per cent to Rs259.15 crore from Rs179.95 crore in FY 2003. In FY 2004, operating income as a percentage of total income was 84 per cent. Expenses increased by 41 per cent to Rs365.13 crore, primarily on account of higher provisions and contingencies and interest charges.

After appropriations, the balance carried forward in FY 2004 was Rs302.08 crore and the net worth of the company, as on March 31, 2004, stood at Rs1,699 crore.

During the year, IDFC raised resources of Rs3,575 crore from the market and on a cumulative basis, as on March 31, 2004, outstanding resources (excluding subordinated debt) were Rs3,325 crore. CRISIL and ICRA have awarded the highest ratings to the various borrowing programs of IDFC and resources have always been raised at benchmark rates.

The balance sheet size, as on March 31, 2004, was close to Rs6,000 crore. There were no net NPAs as on March 31, 2004, and IDFC's capital adequacy was well above prudential exposure norms.

During the period April 1, 2004 to June 16, 2004, IDFC approved assistance of Rs2,130 crore to 10 projects and its disbursements during the period were Rs412 crore to 24 projects. On a cumulative basis, as on June 16, 2004, gross approvals and gross disbursements were Rs20,317 crore and Rs7,289 crore respectively.

On the policy side, IDFC presented a framework for resolving the limited mobility dispute and also suggested a relief package for cellular operators. Subsequent resolutions of the Government of India are in tune with IDFC's key suggestions, viz., unified access service licensing regime, reduction of revenue share and allowing intra-circle mergers & acquisitions.

IDFC contributed to all aspects of the work of the Ministry of Civil Aviation's Committee on a road map for the civil aviation sector to make air transport affordable and enhance air connectivity across various regions of the country, which is expected to form the basis for the New Civil Aviation Policy.