SBI Global Factors Ltd.

Contents Contents
List of Directors Board of Directors Directors’ Report Corporate Governance Report Management Discussion and Analysis Auditors’ Report Report of Comptroller & Auditor General of India Balance Sheet Profit and Loss Account Cash Flow Statement Schedules To Balance Sheet and Profit And Loss Account Balance Sheet in US $ Profit and Loss Account in US $ Market Share Events 2 3 5 11 14 16 20 22 23 24 25 54 55 58 59

SBIGFL

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Annual Report 2009-2010

SBI Global Factors Ltd.

List of Directors List Director ectors
Name Shri. O. P. Bhatt Shri. R. Sridharan Smt. Bharati Rao Shri V. Kannan Shri. B.K.Vatsaraj Shri. Y. Vijayanand Smt. Bhama Krishnamurthy Shri. S. Rajendran Shri. Ashwin Ankhad Shri Sangeet Shukla Designation Chairman Director Director Director Independent Director Independent Director * Director* Director * Independent Director* Executive Vice-Chairman & C.E.O.

* as on 10th June 2010

SBIGFL

Annual Report 2009-2010

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SBI Global Factors Ltd.

Board of Directors Board Director ectors

Shri O.P. Bhatt Chairman

Shri R. Sridharan Director

Smt. Bharati Rao Director

Shri V. Kannan Director

Shri B.K. Vatsaraj Director

Shri Y. Vijayanand Director
(From 10th June, 2010)

Smt. Bhama Krishnamurthy Director
(From 10th June, 2010)

Shri S. Rajendran Director
(From 10th June, 2010)

Shri Ashwin Ankhad Director
(From 10th June, 2010)

Shri Sangeet Shukla (Executive Vice Chairman & C.E.O.)

SBIGFL

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Annual Report 2009-2010

SBI Global Factors Ltd.

Bankers State Bank of India Axis Bank HDFC Bank Standard Chartered Bank Auditors Contractor Nayak & Kisnadwala Chartered Accountants Jash Chambers, 3rd Floor, 7A, Sir P.M.Road, Fort, Mumbai – 400001 Solicitors K Ashar & Company Meadows House, 4th & 5 th Floor, 39, Nagindas Master Road, Fort, Mumbai – 400023 Paras Kuhad & Associates 903, Peninsula Towers, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai – 400013 Registered Office 6 Floor, The Metropolitan, Bandra–Kurla Complex, Bandra (East), Mumbai - 400051
th

SBIGFL

Annual Report 2009-2010

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SBI Global Factors Ltd.

Directors’ Report Director ectors’
For the Financial Year Ended March 31, 2010
Your Directors have a pleasure in presenting the ninth Annual Report of SBI Global Factors Limited (formerly Global Trade Finance Limited) along with the audited Balance Sheet as at March 31, 2010 and Profit and Loss Account for the year ended on that date.

Financial Performance
(i) During the year, the Company recorded a total turnover of Rs 129.78 billion (US $ 2.89 billion), export turnover of Rs 11.42 billion (US $ 0.25 billion), import turnover of Rs 0.38 billion (US $ 8.46 million) and domestic turnover of Rs 117.98 billion (US $ 2.63 billion). As at March 31, 2010, the Company had advances outstanding of Rs 30,298 million (US $ 674.79 million), of which the export outstandings stood at Rs 1,955 million (US $ 43.54 million), import outstandings at Rs 99 million (US $ 2.20 million) and domestic outstandings at Rs 28,244 million (US $ 629.04 million). Gross NPAs stand at Rs 6,352 million (US $ 141.47 million) and Net NPAs stand at Rs 5,068 million (US $ 112.87 million). The amount to be transferred to Reserve Fund is Rs 13.16 million (US $ 0.29 million).

Summary of Financial Results
2009-10 (in Rs. Mn.) 1,29,781 1,17,977 11,804 30,294 4,931 108 66 2008-09* (in Rs. Mn.) 1,82,825 1,55,562 27,263 45,139 6,765 1,850 1,219 Year-over-Year Growth (%) (29.01) (24.16) (56.70) (32.88) (27.11) (94.16) (94.59)

Total Turnover Domestic Turnover International Turnover Advances Outstanding Total Income Profit Before Tax Profit After Tax

* (includes figures of SBI Factors and Commercial Services Private Limited for the Year 200809, since merged with the Company) (ii) The Company recorded a total income of Rs 4,931 million (US $109.82 million)*, posted a profit before tax of Rs 108 million (US $ 2.41 million) during the current year against a total income of Rs 6,765 million (US $ 133.28 million) ** and a profit before tax of Rs 1,850 million (US $ 36.47 million) reported in the previous year. * 1US$ = Rs. 44.90 ** 1US$ = Rs. 50.72

Changes And Developments
During the Financial Year, pursuant to the “Scheme of Amalgamation of SBI Factors and Commercial Services Private Limited (SBIF) with Global Trade Finance Limited”, sanctioned by the Hon’ble High Court, Bombay vide its Order dated January 15, 2010 : (i) The Registrar of Companies, Maharashtra, issued a Fresh Certificate of Incorporation consequent upon Change of Name on March 18, 2010, approving change of the Company’s name from Global Trade Finance Limited to SBI Global Factors Limited (“SBIGFL”). Reserve Bank of India, issued a new NBFC Certificate of Registration dated March 23, 2010 in the name of the Merged Entity viz., SBI Global Factors Limited.

(ii)

(iii) From the Appointed Date of the Merger, all the Assets, Properties, Debts, Liabilities (including Contingent Liabilities) of erstwhile SBI Factors and Commercial Services Private Limited have been transferred to SBIGFL.
SBIGFL

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Annual Report 2009-2010

an umbrella Organisation of worldwide Factoring Companies.SBI Global Factors Ltd.com” for e-mail facility. “www. The Company believes in investing in people to develop and expand their skill-sets. Human Resources All permanent Employees of erstwhile SBIF have become permanent Employees of SBIGFL. Currently. Domain name change for e-communication :Global Trade Finance Ltd and SBI Factors and Commercial Services Pvt. new email domain “sbiglobal. 2. M/s.E. 4 Network:The combined entity has migrated to the “SBI Connect” for accessing and transfer of data through Intranet. SBIGFL Annual Report 2009-2010 6 . Shri K.S. Information Technology In order to bring operations of both the merged Companies on to a common IT platform. SBIF database has been migrated to “TradeFree” which was commissioned on 1st April 2010. 3.sbiglobal.in” has been registered and e-mail ids of all the users of the merged entity have been created with access to their old/ archive mails globally over the internet. Subramanian has joined as Executive Vice President of the Merged Entity. the following activities have been undertaken : 1. International Associations SBI Global Factors Limited (formerly Global Trade Finance Limited) is a member of Factors Chain International (FCI). Ernst & Young (P) Ltd. Change of factoring software:A Technical Evaluation Committee was formed to oversee the system related aspects of the merger. Post merger. 2009. were using two different domains “sbifactors. the staff strength of SBIGFL is 164. in November. Post merger. SBIGFL is a professionally managed Company that constantly innovates and tries to adopt global best practices in this field. the FCI network counts 247 Factors in 66 countries. Ltd. have been appointed as a Consultant to look into HR integration process. Testing of seamless transfer of data from “TradeFree” to the accounting platform has been completed. actively engaged in more than half of the world’s cross-border factoring volume. It was decided to purchase a factoring software “Trade Free Solutions”. Domain name changed for the web-site:A New domain. FCI is a global network of leading Factoring Companies with a common aim to facilitate international trade through factoring and related financial services. Alignment with the long-term business direction and co-creation of shared values help each individual meet the Company’s objectives. which is an upgraded version of the software “Octopus” used by GTF. (i) (ii) Shri Sangeet Shukla took over as the Executive Vice Chairman & C.O.in” for the website has been registered and restructuring of the web-site is under process. including 27 employees on deputation from SBI.com” and “gtfindia. During the year.

The Company has classified these accounts as frauds and reported these cases for criminal investigation. Taking into account a carry forward provision of Rs. in 83 accounts with provision of Rs. NPA Management Due to economic downturn. 664 Mn. NCDs. Dividend In view of substantial provision for NPAs made during the year as explained above. have been technically written off with legal and recovery action continued. accounts of a number of clients of the Company have become Non Performing. 6352 Mn.SBI Global Factors Ltd. 2469 Mn. various Rating Agencies have assigned the ratings to GTF and SBIGFL (post merger) for its funding requirements as given below : Rating Agency ICRA ICRA ICRA ICRA ICRA CRISIL CRISIL Rating A1+ A1+ LAAA with a stable outlook LAAA with a stable outlook LAAA with a stable outlook P1+ AAA/Stable Amount in Rs. 18 accounts with outstanding of Rs. from the previous year. total provision for NPAs made out of current year’s profits comes to Rs. The Company has adequately provided for these NPAs in its books out of the Current Year’s profits. during the previous Financial Year. short-term credit facilities from leading commercial banks and money market instruments. 1849 Mn.219 Mn. for the year ended March 31. The efforts have already started paying dividends. SBIGFL continues to augment resources from competitive sources and during the year under review. In view of the above. 2010. 1284 Mn. the Directors do not propose payment of SBIGFL 7 Annual Report 2009-2010 . Further. 66 Mn. Credit Rating During the year. It has tapped Foreign Currency lines from various domestic and international banks at competitive interest rates. Crore 3550 3276 100 Particulars Short Term Debt Program Short Term Bank Facilities Non-Convertible Debenture Program Non-Convertible Debenture Program Redeemable Preference Shares Short Term Debt Program Long Term Non-Convertible Debentures Redeemable Long Term Preference Shares 30 50 2000 100 CRISIL AAA/Stable 50 The ratings indicate the highest degree of safety with regard to timely payment of interest and principal on the rated instruments. In some cases. irregularities such as fake invoices and undervaluation of securities were also noticed. The Company has NPAs aggregating Rs. 2010 as against Rs. The Company has put a focus on the recovery of NPAs. it has raised Rupee resources by borrowing through debt instruments like Commercial Papers. the Company has posted Profit after Tax of Rs. as on March 31. 1.

000.23.27 6.each to Rs. However.502 94. M. Internal Audit & Compliance is focused on independently evaluating the adequacy of internal controls.55.000.502 Nil 69. 10/. 10/. 1988 in relation to the Conservation of Energy and Technological Absorption is not applicable to the Company. Record Date).10/each. 3.(Rupees Ten) each held in SBI Factors and Commercial Services Private Limited (viz.000. 10/. Chitale & Co.000 (One Hundred Twenty Million) Equity Shares of Rs.03.23. 2010 is as under: Name of the Shareholder Nos.60. 100 Mn.751 47. 47. 28.000.510 14.53 4.71.857 9.e.01.SBI Global Factors Ltd.55.55.42.000 (Rupees Two Billion Only) divided into 120.000 (One Hundred Twenty Million) Preference shares of Rs.42. of new merger paid Equity shares up issued in Equity Shares the Merged Capital held Entity (b) 92. Subsequently. 3.71. the Equity Shareholding Pattern of the Merged Entity as on March 31.01.27. of Equity Shares held in Global Trade Finance Limited (a) 90.43 1. M/s. 2. Internal Audit and Limited Review of Quarterly Accounts SBIGFL has appointed an independent firm of Chartered Accountants.205 28.. 4. Particulars of foreign currency earnings and outgo during the year are given in Schedule 17 to the Notes to the Accounts forming part of the Annual Accounts. on March 26. Consequently.17.42.each and 80. Technology Absorption & Foreign Exchange Earnings & Outgoings Information required to be provided under Section 217(1)(e) of the Companies Act.15 100. 2010 (i. 2010.00 Total % of post merger paid up Equity Capital (c=a+b) held 83.207 Equity Shares to State Bank of India.11.000 (Eighty Million) Preference Shares of Rs.(Rupees Ten) each in the Company for every 111 (One Hundred and Eleven) Equity Shares of Rs.000.27.998 Nil Nil Nil 69.42. ensuring adherence to operating guidelines and regulatory and legal requirements and pro-actively recommending improvements in operational SBIGFL Annual Report 2009-2010 8 .502 Equity Shares to Small Industries Development Bank of India (SIDBI)).. 10/.17.000.751 Equity Shares to Union Bank of India.11.050 47.5 % is being recommended to the Shareholders for approval.81 100.23.000.000 (Rupees Three Billion) divided into 180. as Internal and Concurrent Auditors. and 94.050 Equity Shares to State Bank of Indore.P. the Shareholders of the Company at their Extraordinary General Meeting held on February 19.00 State Bank of India State Bank of Indore Union Bank of India SIDBI Bank of Maharashtra TOTAL 3. 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules.510 Equity Shares of the Company were issued/ allotted to the Equity Shareholders of erstwhile SBI Factors and Commercial Services Private Limited (since merged with the Company) as on February 11.96 3. Share Capital As per the Scheme of Amalgamation of SBI Factors and Commercial Services Private Limited with Global Trade Finance Limited. approved increase in the Authorized Share Capital of the Company from Rs.) at the rate of 9.855 % of pre Nos.000 (One Hundred Eighty Million) Equity shares of Rs.207 12.199.85 Nil Nil Nil 7.000. in the proportion of 100 (One Hundred) fully paid Equity Shares of Rs.each and 120.71. Dividend to the Equity Shareholders for the Financial Year ended March 31.365 Conservation of Energy.27. 2010. 2010.857 4.050 28. a Dividend on Preference Share Capital (Rs.751 94.11.10/.

(i) Consequent upon transfer of Shri R. 1956. Nayak & Kishnadwala. Directors The Board of Directors of the Company at present consists of eight Directors.O. the present Statutory Auditors of the Company appointed by the Comptroller & Auditor General of India (“C&AG of India”). 1998. Gupta relinquished the Office of the Joint Managing Director of the Company on March 31. 2009 (i. 2010. Consequent upon merger of SBI Factors and Commercial Services Private Limited with Global Trade Finance Limited with effect from April 01. the Appointed Date). State Bank of India. The Statutory Auditors of the Company for the Financial Year 2010-11 would be appointed as and when and as may be directed/ informed to the Company by the C&AG. has joined the Board as Executive Vice Chairman & C. 2009. Comments of the Comptroller and Auditor General of India Under Section 619(4) of the Companies Act. in place of Shri R. 1956. SBI. with effect from November 06. Dy. of the Financial Statements of the SBIGFL 9 Annual Report 2009-2010 . (iv) Consequent upon retirement. on conducting a Supplementary Audit under Section 619 (3)(b) of the Companies Act. Venkatachalam. CGM (MCG). 2010.SBI Global Factors Ltd. of the Company with effect from November 6. Chartered Accountants. Bharati Rao. they have conducted the Audit of the merged Entity for FY 2009-10 with the approval of C&AG of India. SBI. Venkatachalam. as nominated by SBI. Smt.e. processes and service quality. pursuant to Section 619 and other applicable provisions of the Companies Act. Auditors M/s. was appointed as an Additional Director of the Company with effect from July 03. will retire at the close of the 9th Annual General Meeting of the Company.O. The half yearly results are also subjected to a limited review by the Statutory Auditors. 1956 on the Accounts of the Company for the Financial Year ended March 31. 2009. 2010 The Comptroller and Auditor General of India (“C&AG of India”). the Company has not accepted any deposits from the public within the meaning of the provisions of the Non-Banking Financial Companies (Reserve Bank) Directions. the then Advisor (Mergers & Acquisitions). Shri V. During the Financial Year ended on 31 st March.K. Managing Director. Particulars of Employees Any Shareholder interested in obtaining a copy of the Statement of Particulars of Employees may write to the Company Secretary of the Company to obtain the same. 2010. 2009. in terms of his nomination by the Chairman of State Bank of India.E. (iii) Shri Arvind Sonmale was re-designated as Managing Director as against his earlier designation as Managing Director & C. Management Discussions & Analysis Report Annual Report has a separate Chapter on Management Discussions and Analysis. (ii) Shri Sangeet Shukla. Contractor. Corporate Governance Report The report on Corporate Governance is appended herewith. Public Deposits During the Financial Year ended March 31.E.

They are thankful to the Clients and Customers for their continued patronage. the Directors have prepared the annual accounts on a ‘going concern’ basis. Directors’ Responsibility Statement Pursuant to Section 217(2AA) of the Companies Act. 2010. the applicable accounting standards have been duly followed. c) d) Acknowledgements The Directors thank the Shareholding Banks/Financial Institutions and the Reserve Bank of India. 1956. for their continued support. your Directors confirm that: a) b) in the preparation of the annual accounts. the Directors have taken proper and sufficient care for the maintenance of adequate records in accordance with the provisions of the Companies Act. For and on behalf of the Board of Directors Place : Mumbai Date : 27/04/2010 O. 1956 for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities. dedication and commitment.SBI Global Factors Ltd. have commented that ‘nothing significant has come to their knowledge which would give rise to any comment upon or supplement to Statutory Auditors’ Report under Section 619(4) of the Companies Act.P. The Directors wish to acknowledge the support of SBI in lending the services of their experienced Executives/ Managers to the Company. Bhatt Chairman SBIGFL Annual Report 2009-2010 10 . Company for the Financial Year ended 31 st March. 1956’. The Directors also wish to convey their appreciation to employees at all levels for their hard work. the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

of Directorships in other companies 10* 8* Shri O. Foreign Companies. well-informed and independent Board is necessary to ensure the highest standards of Corporate Governance. Kannan Director Shri Arvind Sonmale Managing Director Non-Executive Non-Executive Full-time Executive (Since 06/11/2009) Full-time Executive (upto 31/03/2010) Non-Executive (Since 03/07/2009) Non-Executive (upto 02/07/2009) Independent Non –Executive Independent Non.O. Corporations etc. P. 2010. of Board Meetings Attended 5 6 No. two (2) Independent Directors. which consisted of four (4) Non-Executive Directors. October 09. Sridharan Director Shri Sangeet Shukla Additional Director (Executive Vice Chairman & C. 2009. K. the Board comprised of nine (9) members. The particulars of Directors. Bhide Director Shri B.SBI Global Factors Ltd. At the end of Financial Year 2009-10. 2009. July 18. The Board is independent of the Company’s Management. in addition to meeting on a quarterly basis to review the performance and give future directions to the Senior Management Team of the Company. The Board of Directors meets. SBIGFL 11 Annual Report 2009-2010 . Corporate Governance Report Corporate 1. Bhatt Chairman Shri R. Gupta Jt. and three (3) full-time Executive Directors.K. October 26.E. their attendance during the financial year 2009 – 2010 and also other Directorships are as under: Name and Designation of Director Category of Director No. 2009.Executive Non Executive Full-time Executive 2 - 6 4 4** 1 5 4 3 6 8 1 1 * Excluding Banks. Board of Directors (Board) At the core of our Corporate Governance practice is the Board. 2010 and February 19. Venkatachalam Director Shri M. Vatsaraj Director Shri V. 2009. Bharati Rao Director Shri R. Managing Director Smt.) Shri V. 2010. ** Excluding a Foreign Company Meetings of the Board During the Financial Year ended on 31st March. 6 (six) Board Meetings were held on April 28. as often as necessary. G. January 19. which oversees how the management serves and protects the long-term interests of all the Stakeholders and the Shareholders of the Company. We believe that an active.

K. Shri B. With effect from March 19.K. Vatsaraj was appointed as Member of the Executive Committee of the Board.G. Audit Committee Upon the induction of Shri B.e. Bharati Rao Member 4. Shri V.Venkatachalam* Smt. Executive Committee of the Board: The Company has an Executive Committee of the Board which. Shri R. 2009. During the year. and 19/01/2010. 2009. inter – alia. SBIGFL Annual Report 2009-2010 12 . was appointed as Member of the Executive Committee of the Board. Vatsaraj Member During the Financial Year ended on March 31. Bhide Shri R. 2010. Shri B. Members of the Audit Committee are as follows: 1. a. comprises five Members of which. Shri V. April 28. 2. 18/07/2009.K.K. b. Bharati Rao** Shri V. Kannan Member 5. Vatsaraj as a Member of the Audit Committee of the Board of Directors w. Smt. of the Company. Vatsaraj *** No. in place of Shri Venkatachalam. With effect from November 06. Executive Vice Chairman & C. and also directs the Senior Management Team of the Company. It supplements the right insight and business perspective in order to aid the Company’s Management in achieving its goals and mission. 2009. Sridharan Member 3. three are Non – Executive Directors and two are Independent Directors. Upon retirement. c. at present. Bharati Rao was appointed as a Member of the Executive Committee of the Board of Directors. Kannan Shri B. Accordingly. Shri Sangeet Shukla.E. 3.SBI Global Factors Ltd. Sridharan Shri R. approves the Credit proposals beyond a certain limit. The attendance of the Audit Committee Members at such meetings is as stated below: Name of the Member Shri M. the Audit Committee met 4 times viz: on 25/04/2009.O. of Audit Committee Meetings attended 4 4 1 3 3 3 * Director upto : 02/07/2009 ** Date of appointment : 03/07/2009 *** Date of appointment : 28/04/2009 In addition. Shri M. 2010.f.K. Smt. d. 2010. he ceased to be a Member of the Executive Committee of the Board. Bhide Chairman 2. Gupta relinquished the Office of the Joint Managing Director of the Company on March 31. the Audit Committee. the Statutory Auditors and Internal Auditors attend and participate in the deliberations at the meetings of the Audit Committee.G. With effect from July 03. 22/10/2009.

E.000 Equity Shares of Rs.each at a premium of Rs. Nariman Point. Mumbai 400 051 State Bank Bhavan. 18th Floor.666 Equity Shares of Rs.K. Deloitte.E. 2010 Datamatics Financial Services Limited 6th Floor. 10/. 10/. Eighth 2008-2009 18/07/09 04.30 p. 10/.000. 10/each and 36. 10/.E. Chartered Accountants as Statutory Auditors (2) Re-classification of the Company’s Authorised Share Capital from 200.000 Preference Shares of Rs. 5. The following Special Resolutions were passed at the above AGMs : AGM Sixth DETAILS OF THE SPECIAL RESOLUTION (1) Re-appointment of M/s.SBI Global Factors Ltd.000 Shares (Rs.000. (5) Further issue of 26.000.000.000.each of the Company (1) Further issue of 66.000. Madame Cama Road. Shri B. General Body Meetings: Particulars of the last three Annual General Meetings (AGMs) of the Company: AGM Sixth Financial Year 2006-2007 Date of the AGM 04/05/07 Time 10. Vatsaraj (Member).m. Venue 6th Floor. The Metropolitan Bandra-Kurla Complex.each to 200. (1) Appointment of Statutory Auditors for the Financial Year 2009-10.. Kannan (Member). (3) Appointment of Managing Director & C. Corporate Centre. and Shri Arvind Sonmale. (2) Extension of term of appointment of Managing Director & C.O.E.000 Equity Shares of Rs. 3.000. Haskins & Sells. Mumbai – 400 021 Seventh 2007-2008 21/04/08 12.000 Shares (Rs. Nariman Point. 10/.66. 2. Mumbai – 400 021 State Bank Bhavan.000 Equity Shares of Rs..30 p. 10/.000/-) divided into 164.00 a. 2. Madame Cama Road. previously approved by the Board of Directors.000. The Metropolitan. 4. General Shareholder Information: Financial Year Registrar and Transfer Agents Address for correspondence April 01. Bandra (East)Mumbai – 400 051 SBIGFL 13 Annual Report 2009-2010 .500. Bandra (East).) (Member). Bandra Kurla Complex.000. (2) Extension of term of appointment of Managing Director & C.each and 50. as directed by the Comptroller & Auditor General of India. 18th Floor.m. 2. The Executive Committee of the Board at present consists of the following Members : 1. 2009 to March 31.000. Shri Sangeet Shukla (Executive Vice Chairman & C. Corporate Centre.O.000 Non-Convertible Redeemable Preference Shares of Rs. Bharati Rao (Member). 65per Share.O.each of the Company.each. Shri V. (4) Further issue of 65.000 Preference Shares of Rs.O. Managing Director (Member) 4.000.000) divided into 150.m. previously approved by the Board of Directors Seventh Eighth 5. Smt.

Various measures like soft interest rates and reduced excise and service taxes were brought in as a part of the stimulus package.7% for the year. The merged company has been named as SBI Global Factors Ltd with effect from 23 rd March 2010. The Company has appointed leading consultant Ernst & Young to prepare a new HR policy. the recent turbulence due to poor fiscal discipline of some of the European countries has unsettled the Euro and drawn attention to the divergence in growth potential and fiscal health of various countries in Europe and as a result. with the Company initiated last year has been completed successfully during the year under the order of the Hon’ble Bombay High Court with effect from 11th February 2010. Merger of SBIF with GTF: The process of merger of SBI Factors & Commercial Services Pvt. The Index of Industrial Production (IIP) rose by 16. The SBIGFL has now 17 branches in strategic locations in India. Ltd. The new entity commands 85% market share. with the sign of revival in the global economy specially the US economy from the third quarter of the year (Fourth quarter GDP growth of 5. However. These have helped the economy to post more than 7% growth in 2009-10. In 2010-11 economic growth is projected at 8%+. the confidence is impacted. a new software has been commissioned and developed. To mitigate this risk the Company matches the maturity profile of its assets with short term funding options. RBI has initiated measures in its annual policy and announced hike in CRR and also raised the key rates.SBI Global Factors Ltd. Although the outlook for the current and the coming quarters may be marginally better than that of the previous year. Indian Economic Scenario: Resilience of the Indian Economy India faced the financial crisis better than the West.6%). The stimulus has helped exports and manufacturing to grow after months of decline. Management Discussion and Analysis Discussion scuss Analys Global Economic Scenario: Past two years were the most volatile years for the world economy since great depression of 1929. WPI rose by 9. The combined entity enjoys highest ratings of A1+ & LAAA (Stable) from ICRA and CARE respectively for its short and long terms borrowings. The rates are likely to harden as the RBI takes measures to suck a part of the liquidity out of the system and pick up in the credit expected in the second quarter. their exports substantially declined as a result of global recession. The new logo while preserving the brand recall of both the Companies symbolizes the synergy between the two Companies and the lineage of the merged entity. the growth has started showing signs of pick up.10% in February 2010. The resilient economy could absorb the impact of the weakest monsoon since 1972. For the merged entity. tyre and textiles have benefitted from the pickup in the demand. Oil prices have started increasing and crossed the USD90 per barrel and are a major cause of concern.4% in December 2009 and 4.9% in March 2010. Interest Rate Scenario: Interest rates remained stable during the year due to the stimulus package and easy liquidity. The Company is engaged in financing of short term receivables and is subject to Rate Risk due to volatility in rates in the short term.. auto ancillaries. To tame the inflation.7% in January and 15. Though the domestic economies of India and China were relatively less impacted. SBIGFL Annual Report 2009-2010 14 . The new Company has adopted a new logo. Sectors like automobiles. The sales of the Corporate India grew by 13. which has since been successfully implemented in the Company. However. the stimulus packages while sustaining growth have triggered the inflationary pressures and the inflation is now a matter of concern. Both the merged Companies operated on different software platforms developed by different vendors.

SBIGFL 15 Annual Report 2009-2010 . The Company has put a focus on the recovery of the NPA. The reasons for the slow growth are several like inadequacies in the legal framework and ad valorem stamp duty on the assignment of debts.300 Mi EUR. the turnover in India increased from 1615 Mi EUR to 2650 Mi EUR. As per the reports of Factors Chain International. which has affected its profits for the year. In spite of these impediments factoring products have gained popularity with the SMEs more particularly auto ancillary industry. However. the contribution of factoring products in meeting the total working capital requirement of the companies in India is less than 0. in last 8 years the factoring turnover in China grew from 2. component manufacturers for engineering companies etc. irregularities such as fake invoices and under valuation of securities were also noticed. In comparison.50%.SBI Global Factors Ltd. A number of such units are dealing satisfactorily with us and with revival of economy and auto industries in particular. A comprehensive legislation to address the legal hurdles affecting the growth of the factoring industry is under consideration of Government of India. The efforts have already started yielding dividend. an umbrella organization of factoring companies world-wide.640 Mi EUR to 67. Performance of the Company: Due to economic downturn the accounts of a number of clients of the Company have become nonperforming. the factoring can record a good growth in near future. In the last 19 years many Factoring companies entered the market and also shut their shops. The Company has adequately provided for these NPAs in its books out of current year’s profits. Outlook for the Factoring Services: The factoring services were launched in India in 1991 by SBI by promoting SBI Factors & Commercial Services Pvt. Despite the growth in Indian Factoring in last five years at more than 60% compared to the worldwide growth of 50% in the same period. the share of Indian Factoring is less than 1% of the total volumes generated in the world. In some client accounts. Ltd. The Company has classified these accounts as frauds and reported these for criminal investigation.

2009. 2009 The Company has not accepted any public deposits during the relevant year 2009-2010. In Form NBS-7.S. As required by the Non Banking financial Companies Auditor’s Report (Reserve Bank) Directions. within the stipulated period. 4. SBI GLOBAL FACTORS LIMITED (Formerly Known as GLOBAL TRADE FINANCE LIMITED) Mumbai. The company has furnished to the Reserve Bank of India the annual statement of capital funds risk assets/exposures and risk asset ratio (NBS-7) on 10th June. For Contractor. 2009. 6. we give below our report on the matters specified in the above mentioned directions and state that: 1.101961 W Place: Mumbai Date: 27th April. asset classification and provisioning for the bad and doubtful debts as specified to it in terms of Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions. The Company has complied with the prudential norms relating to Income Recognition.No. The Company is engaged in the business of non-banking financial Institution and has obtained a Certificate of Registration (N-13. 2. 2010. accounting standards. Nayak) Partner M. The capital adequacy ratio as disclosed in the return submitted to the Bank on 10th June. Auditors’ Auditors’ Report To. 2007.01518) on the 28th April 2001 from Reserve Bank of India The company is entitled to continue to hold such Certificate of Registration in terms of its assest / income pattern as on 31st March. has been correctly arrived at and such ratio is in compliance with the minimum CRAR prescribed by the Reserve Bank of India. 38127 Firm Registration No.SBI Global Factors Ltd. 7. 2008 dated 18th September 2008. Nayak & KIshnadwala Chartered Accountants (G. We have audited the accounts of SBI GLOBAL FACTORS LIMITED (formerly known as GLOBAL TRADE FINANCE LIMITED) for the year ended 31st March. 2010 SBIGFL Annual Report 2009-2010 16 . The Board of Directors. 2010 The Board of Directors had passed a resolution for non acceptance of any public deposit in their meeting held on 28th April. 3. 5.

and taken on record by the Board of Directors. proper books of account. as amended by the Companies (Auditor’s Report) (Amendment) Order. 7. 1956.SBI Global Factors Ltd. 2003. have been kept by the company in so far as appears from our examination of those books. Our responsibility is to express an opinion on these financial statements based on our audit. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. evidence supporting the amounts and disclosures in the financial statements. As required by the Companies’ (Auditors’ Report) Order. 6. which to the best of our knowledge and belief were necessary for the purposes of our audit. In our opinion. Audit includes examining. 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. 4. 1956 and according to the information and explanations given to us during the course of the audit and on the basis of such checks as were considered appropriate. Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Mandatory Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act. The Balance Sheet. and b) In the case of the Profit and Loss Account. We report that: 1. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India. SBI Global Factors Limited (formerly known as Global Trade Finance Limited) We have audited the attached Balance Sheet of SBI Global Factors Limited (formerly known as Global Trade Finance Limited) (‘the Company’). the said accounts read together with notes forming part of it. On the basis of written representations received from directors as on 31st March 2010. 2. 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act. We have obtained all the information and explanations. Auditors’ Report Auditors’ To The Members. give the information required by the Companies Act. on a test basis. annexed thereto. Audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. the Balance Sheet. of the cash flows for the year ended on that date. 1956. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. we report that none of the directors is disqualified as on 31st March. In our opinion. 5. (viii) and (xiii) of paragraph 4 of the order are not applicable to the company. In our opinion and to the best of our information and according to the explanations given to us. We believe that our audit provides a reasonable basis for our opinion. c) In the case of Cash Flow Statement. SBIGFL 17 Annual Report 2009-2010 . 3. we report that: The Company is engaged in the business of factoring of debts/receivables and the requirements of clauses (ii). 1956. as at 31st March 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date. a) In the case of the Balance Sheet. of the profit for the year ended on that date. of the state of affairs of the Company as at 31st March. We have conducted our audit in accordance with auditing standards generally accepted in India. including the accounts of erstwhile SBI Factors and Commercial Services Private Limited for the year ended 31st March 2010 consequent to its amalgamation with the Company with effect from 1st April 2009. 2010. as required by law. These financial statements are the responsibility of the Company’s management.

income tax. 2003 are not applicable to the Company. During the course of our audit. excise duty. Income Tax Act. for a period of more than six months from the date they became payable. wealth tax and cess which have not been deposited on account of any dispute. wealth tax.175 FY 2006-07 Commissioner of Income Tax (Appeals) Service Tax under 10. the Company generally has an internal audit system commensurate with the size and nature of its business.254.754 FY 2003-04 Commissioner of Income Tax (Appeals) Income Tax Act. Ltd. the management has carried out the physical verification of some of the fixed assets during the year. sales tax. investors education and protection fund. excise duty. In our opinion. have been appropriately dealt with in the accounts. there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and sale of services. As per the information and explanations given to us.455. which were not material.253 FY 2004-05 Commissioner of Income Tax (Appeals) Income Tax Act. Period for which the amount relates Forum where dispute is pending In case of the company: Income Tax Act. In our opinion and according to the information and explanations given to us. As per the information and explanations given to us. 1956 and rules made thereunder for the deposits accepted from the public does not arise.163. the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund. the details of Income tax and service tax dues which have not been deposited on account of disputes are as follows: Name of the Statute Amount Rs.183 FY 2004-05 Commissioner of Income Tax (Appeals) Income Tax Act.186. 1961 8.485 FY 2007-08 Commissioner of Income Tax (Appeals) SBIGFL Annual Report 2009-2010 18 .402.247 2004-2009 Commissioner of Excise & Finance Act 1994 Service Tax (Appeals) In case of erstwhile SBI Factors and Commercial Services Pvt. According to the information and explanation given to us. customs duty. 1961 8. the Company has not granted nor taken unsecured loans to/from Companies.157.000 FY 2002-03 Income Tax Appellate Tribunal Income Tax Act. there are no dues of sales tax.SBI Global Factors Ltd. (d). there are no contracts or arrangements referred to in Section 301 of the Companies Act. In our opinion and according to the information and explanations given to us. (b) According to the information and explanation given to us. Accordingly the provisions of the clause (v) of the Companies (Auditor’s Report) Order. The Company has not accepted deposits from the public and therefore the question of compliance with the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act. The Company has not disposed of significant part of fixed assets during the year and the question of effect on the going concern of the Company does not arise. Hence sub clauses (b). (c). 1961 500. custom duty. i) (a) (b) The Company has maintained proper records showing full particulars including quantitative details and situation of the fixed assets. in accordance with a program of verification. firms or other parties covered in the register maintained under section 301 of the Companies Act. (c) ii) (a) iii) iv) v) vi) vii) (a) According to the information and explanations given to us and the records examined by us. (f) & (g) are not applicable to the Company. cess and other statutory dues applicable to it and there are no undisputed statutory dues outstanding as at 31st March 2010. 1961 3. 1956. or employees’ state insurance. service tax. 1961 13. no major weakness has been noticed in the internal control system and there is no continuing failure for the same. 1961 19. There are no transactions of purchase of inventory and for sale of goods. 1956. (e). The discrepancies noticed on such verification. which in our opinion provides physical verification of all assets at reasonable intervals.

and accordingly the question of the price being prejudicial to the interest of the Company does not arise. the Company has maintained adequate documents and records where the Company has granted any loans and/or advances on the basis of security by way of pledge of shares. the Company has not given any guarantees for loans taken by others from banks or financial institutions other than credit protection in the case of import factoring and guarantee to banks for letters of credit issued by banks for the Company's clients. According to the information and explanations given to us. during the year. The Company has not incurred any cash loss during the financial year. the Company has maintained proper records and timely entries are being made in respect of its dealing in units of mutual funds. As regards frauds on the Company during the year. and therefore the question of creation of security does not arise. There are no transactions in shares or other investments. which is written off in the books of the Company. we report that funds raised for short-term basis during the year have been prima facie not utilised for long term investment. the funds raised through term loans have been applied for the purpose for which they were obtained. Nayak & Kishnadwala Chartered Accountants Place: Mumbai Date: 27th April 2010 G.940 thousand.101961W SBIGFL 19 Annual Report 2009-2010 . For and on behalf of Contractor. no fraud by the Company has been noticed or reported during the year. xviii) According to the information and explanation given to us. The Company has issued unsecured debentures. on our examination of the records and documents and our evaluation of the related internal controls. Based on the information and explanation provided to us. Nayak Partner Membership No. involving principal of Rs. According to the information and explanations given to us and on an overall examination of the balance sheet of the Company. the Company has not defaulted in the repayment of dues to financial institutions or banks or debenture holders. viii) The company has no accumulated losses as on 31st March 2010 and no cash losses in the immediately preceding financial year. ix) x) xi) xii) xiii) xiv) xv) xvi) xvii) The Company has not raised any money by public issues during the year covered by our report and therefore the question of end use thereof does not arise. According to the information and explanation given to us.38127 ICAI Firm Registration No. the terms and conditions of which are not prejudicial to the interest of the company. debentures and other securities. In our opinion and according to the information and explanations given to us.1. the Company is investigating 8 cases of fraud in respect of documents submitted by clients.704. S. to parties and companies covered in the register maintained under section 301 of the Act. All investments including units of mutual funds and bonds have been held by the Company in its own name. Based on our examination of the records and the information and explanations given to us. the Company has not made any preferential allotment of shares.SBI Global Factors Ltd. Based on the information and explanations given to us.

This supplementary audit has been carried out independently without access to the working papers of the statutory auditor and is limited primarily to the inquiries of the statutory auditor and Company personnel and a selective examination of some of the accounting records. This is stated to have been done by them vide their Audit Report dated 27 April 2010. I.SBI Global Factors Ltd. For and on the behalf of the Comptroller and Auditor General of India (Alka. R. 1956. 1956 of the financial statements of SBI Global Factors Limited for the year ended 31 March 2010. 1956 on The Accounts Of SBI Accounts Global Factors Limited for the Year Ended 31 Factors Year 31 March 2010. On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors’ report under Section 619(4) of the Companies Act. Bhardwaj) Principal Director of Commercial Audit and Ex-Officio Member. Comments of the Comptroller and Auditor Comments Comptroller General of India Under Section 619(4) of the General 619(4) Companies Act. March 201 The preparation of financial statements of SBI Global Factors Limited for the year ended 31 March 2010 in accordance with the financial reporting framework prescribed under the Companies Act. 1956 is responsible for expressing opinion on these financial statements under Section 227 of the Companies Act. have conducted a supplementary audit under Section 619(3)(b) of the Companies Act. Audit Board-I. 2010 SBIGFL Annual Report 2009-2010 20 . Mumbai Place: Mumbai Date :11 June. on behalf of the Comptroller and Auditor General of India. 1956 based on independent audit in accordance with the auditing and assurance standards prescribed by their professional body the Institute of Chartered Accountants of India. The statutory auditor appointed by the Comptroller and Auditor General of India under Section 619(2) of the Companies Act. 1956 is the responsibility of the management of the company.

For and on the behalf of the Comptroller and Auditor General of India (Alka. Bhardwaj) Principal Director of Commercial Audit and Ex-Officio Member.4. Comments Comptroller Comments of the Comptroller and Auditor General 619(4) General of India Under Section 619(4) of the Accounts Companies Act. I on behalf of the Comptroller and Auditor General of India. 1956. 1956 on the Accounts Of SBI Factors Commercial Factors And Commercial Services Private Limited Year 31 March for the Year Ended 31 March 2008 The preparation of financial statements of SBI Factors and Commercial Services Private Limited for the year ended 31 March 2008 in accordance with the financial reporting framework prescribed under the Companies Act. R. This is stated to have been done by them vide their Audit Report dated 17. Audit Board-I. 1956 is the responsibility of the management of the Company. The Statutory Auditor appointed by the Comptroller and Auditor General of India under Section 619(2) of the Companies Act 1956 is responsible for expressing opinion on these financial statements under Section 227 of the Companies Act.SBI Global Factors Ltd. 1956 based on independent audit in accordance with the auditing and assurance standards prescribed by their professional body the institute of Chartered Accountants of India. have decided not to review the report of the Statutory Auditor on the accounts of SBI Factors and Commercial Services Private Limited for the year ended 31 March 2008 and as such have no comments to make under Section 619 (4) of the Companies Act. Mumbai Place: Mumbai Date :4 March 2010 SBIGFL 21 Annual Report 2009-2010 .2008.

360 434.173.666.224 9.777 3 25.070 129.815. 2010 SBIGFL Annual Report 2009-2010 22 . 2010 Schedule SOURCES OF FUNDS Shareholders’ Funds Share Capital Reserves and Surplus Loan Funds Unsecured Loans Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation / Amortisation Net Block Capital Advances Investments Deferred Tax Asset (Net) Current Assets.417.882.777 30.110 13.107 5.323 239.973 218. (Formerly known as Global Trade Finance Limited) Balance Sheet As At March 31.337.209.258 30.533 242.426 57.615 2.663.367 3.554 29.417.559 334. 2009 (Rs.970 32.429 2. Loans and Advances Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Total Significant Accounting Policies and Notes to Accounts (Rs.762 30. ‘000) March 31.847 510 5 6 7 8 9 10 11 202.559 31.SBI Global Factors Ltd.711 134.125 3. Bhatt Chairman Sangeet Shukla Executive Vice Chairman & CEO Amita Joshi Company Secretary Mumbai Dated : April 27.744 30.604 4.098 31.298. No.990.223 33.751.337. ‘000) March 31.326 107.589 209.974 137.101961W Mumbai Dated : April 27. 2010 For and on behalf of the Board of Directors O.P.886.711 1. S.071. Nayak Partner M.542.809 4 290.426 33. ‘000) 1 2 1.647 542. As per our attached report of even date For Contractor.357 189.396 Schedules 1 to 18 referred to herein above form an integral part of the Balance Sheet. Nayak & Kishnadwala Chartered Accountants G.303 130.493 33.262 240.809 18 303.917 161.771 15. 2010 (Rs. 38127 ICAI Firm Registration No.289.451.533.

537 Profit and Loss Account Balance 822. 10 each) (Refer Note 6 of Schedule 18) Significant Accounting Policies and Notes to Accounts 18 Schedules 1 to 18 referred to herein above form an integral part of the Profit and Loss Account.695.611.475 4.854 790.298 APPROPRIATIONS: Dividend Paid .612 921.500 9. Bhatt Chairman Sangeet Shukla Executive Vice Chairman & CEO Amita Joshi Company Secretary Mumbai Dated : April 27.) 0.059 1.921.195 328.P. Nayak Partner M. 2010 SBIGFL 23 Annual Report 2009-2010 .473 2.734 583.948. Ltd.725 475.418 15 16 17 PROFIT AFTER TAXATION Profit and Loss Account Balance Brought Forward from Previous Year Add : On account of amalgamation of erstwhile SBI Factors & Commercial Services Pvt.163 158. ‘000) 4. (Formerly known as Global Trade Finance Limited) Profit And Loss Account For The Year Ended March 31.324 32.793 112.336.930.397.45 Earnings per Share . S. 2010 For and on behalf of the Board of Directors O. As per our attached report of even date For Contractor.38 8.822.) 0.380 33.SBI Global Factors Ltd.Diluted (Rs.176 Transfer to Contingency Reserve 150.Equity .Equity 194.615 34.Preference 9. 38127 ICAI Firm Registration No.088 Transfer to Reserve Fund 13.000 (174.Preference Proposed Dividend .000 (12.061 65. No.281 5.Basic (Rs.945 51.511) 65 1.300 409. 2009 (Rs.781 3.135 826.917 107.38 8.763 2.200.342) 63 42.633 Transfer to General Reserve 79.372 130.883 51.660) (190.812 921.286 .427 1. (Refer Note 2 of Schedule 18) 10.980.167 67.45 (Nominal Value of Share Rs.790 114.645 1.615 Year Ended March 31. ‘000) INCOME Income from Factoring Interest Income Profit on Sale of Current Investments (Net) Other Income Total EXPENDITURE Employee Costs Operating and Other Expenses Interest and Financial Charges Depreciation / Amortisation Total PROFIT BEFORE TAXATION Provision for Taxation -Current Taxation -Excess Provision for Taxation for Earlier Years Written Back -Deferred Taxation -Wealth Tax -Fringe Benefits Tax 12 13 14 4.101961W Mumbai Dated : April 27.500 Corporate Tax on Dividend 1.121. Nayak & Kishnadwala Chartered Accountants G.000 BALANCE AVAILABLE FOR APPROPRIATION 997.880 606. 2010 Year Ended March 31.615 Carried to the Balance Sheet Earnings per Share .015 4. 2010 Schedule Rs.873 245.

200.781 1.473 0 (16.725. 5.) March 31. Nayak & Kishnadwala Chartered Accountants G.SBI Global Factors Ltd.495.850 477. The Company has changed its accounting policy for components of cash equivalents and it is considered that the change would result in a more appropriate presentation of financial statements.000 (750) (131.275.688 (1. 3. 2010 SBIGFL For and on behalf of the Board of Directors O. 150. Nayak Partner M. Written Back Provision for doubtful debts & advances Bad Debts written off Share Issue Expenses written off Interest income on Fixed Deposits Provision for Leave Encashment Interest income Profit on sale of current investments Interest cost Operating profit before working capital changes Increase / (Decrease) in secured loans Increase / (Decrease) in unsecured loans (Increase) / Decrease in trade and other receivables Change in unexpired discount of Commercial Paper Increase / (Decrease) in trade and other payables Cash (used)/generated in and from operations Direct taxes paid (net) Net cash (used)/generated in and from operating activities (A) Cash flow from Investing Activities: Purchase of fixed assets Sale of fixed assets Interest Income Received Purchase in current investments Sale of current investments Net cash from investing activities (B) Cash flow from financing activities: Fresh Issue of Equity Share Capital Share issue expenses Dividend paid (Final) Net cash generated from financing activities ( C) Net increase in cash and cash equivalents (A + B + C) Cash and cash equivalents as at March 31.867 750.780 2.887) (2.405 4.345) 12.674. 2009 (Rs.475 1.258) (18) (475. 2010 (Rs.423 3.862 (1.P.077 thousand.147 3.665) 1.343) 3.596 234.930.946 1.649.270) (367.101961W Mumbai Dated : April 27. 2010 Annual Report 2009-2010 24 .780.976 2.358) 1.681.178 2.873 1. Bhatt Chairman Sangeet Shukla Executive Vice Chairman & CEO Amita Joshi Company Secretary Mumbai Dated : April 27.390.040.276. ‘000) (Rs.931) (4. S.277.926) (676) (269) (328.040.405) (2.551 2.551 33. Earlier the cash and cash equivalents were net of Fixed Dep 4.390. NIL (Previous year Rs.305.499 Less: Cash and cash equivalents as at March 31.497) (19.901 (22.954. Cash and cash equivalents includes unrealised gain (loss) of Rs.945) (2.167) (1.420 (30.082 24. ‘000) Cash flow from Operating Activities: Net profit before tax Add: Interest Cost Net profit before tax and Interest Adjustments in: Depreciation / Amortisation (Profit) / Loss on sale of fixed assets Liabilities No Longer Required. The cash flow statement is prepared by the indirect method set out in Accounting Standard 3 notified by National Advisory Committee on Accounting Standards on Cash Flow Statement.490 (3. No. 3.708 (432.123. ‘000) (Rs.083) (3.656) 1.615 (431. 38127 ICAI Firm Registration No.431) 1. Cash and cash equivalents includes Fixed Deposit of Rs.649.Cash in Hand .780) (11.656) 786.288) 634 170.707) (1.323) 631. Written Back Provision No Longer Required.553. (213) thousand [Previous period Rs.349.653 32.854.276.734 2.728 (51. (Formerly known as Global Trade Finance Limited) Cash Flow Statement For The Year Ended March 31.072) 618.180) 2.922 626.954.322 514.343) 2. 2.051.000 thousand) kept with bank as margin money for opening of client LCs.131.578 (805.946 Note: 1.155) 1.242 57.139 107. 2010 / 2009 237.901 750 (129.020. 2010/ 2009 .(238) thousand] on account of translation of foreign currency bank balances.450 thousand. Previous Year 402.291.259 (605. ‘000) 1.007) (131.414) (449.907) 805.461) (431.659 (2.139. 2010 March 31.930.461) (3. As per our attached report of even date For Contractor. Previous Year figures have been regrouped / reclassified / rearranged wherever necessary.783 1.134 882.Cash & Bank Balances in current/FD account with banks (Net of balances overdrawn as per books Rs.159.062.

604 971. 10 each (Note 2) 1.442. fully paid-up (Note 1 and 3) 10.000.000.669 205.669 49. 2010 (Rs.855) Equity Shares of Rs. ‘000) SCHEDULE 1 SHARE CAPITAL Authorised : 180.000 1.481 249.604 100.542.341 407.856 shares issued on conversion of 6.205 (Previous Year 90.163 626.142.088 97.268) 713.000 1.998) shares are held by the holding company.200.537 221.000 2. and the face value of the new shares issued.SBI Global Factors Ltd.199.355. 10 each Issued.000) Preference Shares of Rs.000 1. 2010.789 688. Schedules Annexed to and Forming Part of The Balance Sheet As At March 31.481 518. ‘000) (Rs. Note 3 : 120.260.789 20. 2009 (Rs. 10 each.429 100.571 - SBIGFL 25 Annual Report 2009-2010 .142. State Bank of India and its nominees SCHEDULE 2 RESERVES AND SURPLUS General Reserve As per last Balance Sheet Add : Balance of erstwhile SBI Factors & Commercial Services P Ltd (Refer Note 2 of Schedule 18) Add: Difference in the net assets of erstwhile SBI Factors & Commercial Services Pvt Ltd.000 1.000 800.789 49.429 Note 1 : Includes 32.000 3.351 49.393 - 50.338.365 (Previous Year 97.000.000.000 79.25% Cumulative Convertible Preference Shares Note 2 : Redeemable at par on September 26. 10 each 120.571 160.910 150.071.000.000.000 1.829 18.000) Equity Shares of Rs.000 (Previous Year 120.493 158.000 9. ‘000) March 31.5% Non-convertible Redeemable Preference Shares of Rs. Subscribed and Paid-up : 144.000 (Previous Year 80.200.519 13.236 1.237 (4.176 407.000.062 51.800. pursuant to the scheme of Amalgamation (Refer Note 2 of Schedule 18) Add/(Less): Adjustments to opening balances of SBI Factors & Commercial Services P Ltd (Refer Note 2 of Schedule 18) a) provisions on debts b) depreciation on fixed assets Add: Transfer from Profit and Loss Account Reserve Fund (as required u/s 45 IC of RBI Act): As per last Balance Sheet Add:Transfer from erstwhile SBI Factors & Commercial Services P Ltd on account of Amalgamation Add: Transfer from Profit and Loss Account Contingency Reserve: (Refer Note below) As per last Balance Sheet Add:Transfer from erstwhile SBI Factors & Commercial Services P Ltd on account of Amalgamation Add: Transfer from Profit and Loss Account Securities Premium Account As per last Balance Sheet Add:On account of Amalgamation with erstwhile SBI Factors & Commercial Services P Ltd (Refer Note 2 of Schedule 18) 97. 2010 March 31.

From Others 220.645.000 thousand) 8.559 2.270 thousand .000 220. 12.000. 22. SCHEDULE 3 UNSECURED LOANS Commercial Paper Maturity date: Apr 05. 1. 2009 USD 68. 2010 (Rs. 2009 (Rs. March 31. 2009 2.000 3. ‘000) March 31.571 921.107 650. EUR 127 thousand and GBP 313 thousand.60 % 7 Years Non-Convertible Redeemable Debentures (Subordinated Debt) (Maturity date: May 17.309 thousand) (Repayable within one year 2.996 1.125% of the total turnover and 0.From Others 2.From Banks .338. 2010 Maturity date: Apr 07. Transfer to Contingency Reserve is the aggregate of 0. 14.From Banks .708. 2009 Rs.000 thousand) Overdraft facility from Banks (Repayable within one year Rs.559.455 thousand.000 58.645.000 1.5% of the uninsured portion of credit protection provided as an Import Factor. 2009 Rs.000 1.000 500. 2012) .999.891 3.932. NIL.250. ‘000) March 31. Schedules Annexed To And Forming Part of The Balance Sheet As At March 31. March 31. 2010 Maturity date: Apr 09. during the year Add: Additions during the year Profit and Loss Account 326.724. March 31.000 2.999.125 Note: Contingency Reserve represents appropriation of profits as a prudent measure to meet any contingency arising out of non-realisation of debts factored.209.500.161 thousand) Short Term Foreign Currency Loans from Banks (USD 2. 2009 1. March 31.815.000 20.019.000 SBIGFL Annual Report 2009-2010 26 .612 4.096 2.SBI Global Factors Ltd.199 thousand. 2009 Rs.199 22. 102.708.724.567 822.000 20. 75 thousand) Short Term Rupee Loans from Banks (Repayable within one year Rs.615 2. March 31. to the extent the same exceeds the amount transferred to Reserve Fund.000 58. March 31.885 1.000 - 75 14.185.891 thousand) Short Term Rupee Loan from State Bank of India (Repayable within one year Rs.885 thousand. 2010 (Maximum outstanding balance Rs.225 thousand) (Repayable within one year Rs.000.372 thousand and EUR 7.455 1.932.825. 2010 (Rs. 2009 USD 34.096 thousand) Short Term Foreign Currency Loan from State Bank of India (USD 47. ‘000 Add: On account of conversion of Preference shares of erstwhile SBI Factors & Commercial Services Pvt Ltd. 3. March 31.000 9. 2013) .40 % 6 Years Non-Convertible Redeemable Debentures (Subordinated Debt) (Maturity date: July 02.185.019.161 102.782 thousand.000 2.

000 78.From Others 7.000 28.451. 2014) .000 50.75 % 7 Years 1 Month Non-Convertible Redeemable Debentures (Subordinated Debt) (Maturity date: Apr 04. 100 Lakhs each (Subordinated Debt) (Maturity date: Apr 30. 2013) . 2010 (Rs.000 10.30 % 5 Years 7 Months Non-Convertible Redeemable Debentures (Subordinated Debt) (Maturity date: Jul 18. 2009 (Rs. ‘000) March 31.000 98.From Others 9. ‘000 9. 2012) .000 50.666.35% Promissory Notes of Rs.098 29.From Banks 10.000 250.From Banks .000 200.000 100.000 98. 2013) .000 224.223 SBIGFL 27 Annual Report 2009-2010 .From Others 200.40 % 5 Years 7 Months Non-Convertible Redeemable Debentures (Subordinated Debt) (Maturity date: Apr 18.000 174.000 140. Schedules Annexed To And Forming Part of The Balance Sheet As At March 31. 2016) .000 25.SBI Global Factors Ltd.From Others 10. ‘000) March 31.50 % 6 Years Non-Convertible Redeemable Debentures (Subordinated Debt) (Maturity date: Aug 23. 2010 (Rs.From Banks .From Banks .

070 129.615 .029 161.349 2.711 3. 2009 Annual Report 2009-2010 As at April 1. SBIGFL SCHEDULE 4 FIXED ASSETS [Refer Notes 2(iii) and 2(iv) of Schedule 18] (Rs.934 30.010 25.401 12.120 4.444 4.890 4.383 33.009 38.144 15.445 26.548 35.807 30.617 373 3.782 99.278 7.157 8.235 Total 242.966 10.966 3. 2010 As at March 31.232 5.207 11.675 28 18.Schedules Annexed To And Forming Part of The Balance Sheet As At March 31.444 44.589 Computers .098 2.684 3.464 Capital Advances * Includes Rs.475 242. 500 being the value of shares in Co-operative Housing Society .582 29. ‘000) Particulars Additions on Deductions/ amalgamation Adjustments during during the the Year Year As at March 31.588 11.358 6.775 11.901 12.917 107.955 4.326 22.120 Previous Year 222.442 1.983 15.390 Computers .674 29.904 3.908 6.097 6.637 27. 2010 SBI Global Factors Ltd.100 84.722 18.200 3.888 7.079 13.646 Vehicles 12.935 87.490 1.215 8.974 130.504 1.532 11.163 337 2.081 1.506 9.711 510 2.594 Furniture and Fixtures 27.662 4. 2009 Additions during the Year Tangible Assets 113 4.107.660 7.357 137.026 Intangible Assets 6.195 7.011 9.327 49.001 2.711 32.614 4.453 290.900 3.179 10.904 20.089 1.491 42.485 1. 2010 As at April 1. 2010 Gross Block (At Cost) Depreciation / Amortisation Net Block As at March 31. 2009 For the year On Additions Deductions on during the amalgmation Year during the year As at March 31.117 8.482 4.284 Office Equipment 16.781 5.326 Building * 94.116 Leasehold Improvements 36.145 79.807 17.Software 20.383 1.847 134.Hardware 35.742 537 12.

Depreciation .413 318.461 30.360 - SCHEDULE 6 DEFERRED TAX (LIABILITY)/ASSET Deferred Tax Asset arising on account of timing differences in: .700 47.998 1.Provision for Doubtful Debts .Considered Doubtful Other Debts (Considered Good) .023.650.023.223.334.636 30.276. K.Allowability of Amalgamation expenses 410.SBI Global Factors Ltd.Provision for Doubtful Investments .093 5.741 19.459 12.334.809 626.262 5.232.928 380 (3.851 19.157 10.Considered Doubtful 209.469.Considered Good .799.298.173 6.762 209.000 each Less : Provision for Doubtful Investments 236.818.895 25.310 31.546) - 434.895 19.461 7. hence. 2010 (Rs.493.721 15.080 4.236.725 203 1.188. of Rs. ‘000) SCHEDULE 5 INVESTMENTS Long Term Unquoted trade Investments 2.238 6.611.646 212.870.367 (Previous Year Nil) Optionally Convertible Redeemable Bonds of M/s. 2010 (Rs.442 6.851 12.442 30. Sera Sera Productions Ltd. ‘000) March 31. Schedules Annexed To And Forming Part of The Balance Sheet As At March 31. 2009 (Rs.533 SCHEDULE 7 SUNDRY DEBTORS (Secured) Debts Factored (Considered Good) Debts outstanding for a Period Exceeding Six Months* Other Debts (Unsecured) Debts Factored Debts outstanding for a Period Exceeding Six Months .367 Less: Provision for Doubtful Debts * These debts include debts which are either not due or not overdue for a period of more than six months and.256 12. ‘000) March 31.173.762 1.100.Considered Good * . do not require a provision as at March 31.299 626. 2010 in accordance with the Company policy as stated in Note 2(vii) on Schedule 18.Disallowances U/s 43B .723 1. SBIGFL 29 Annual Report 2009-2010 .360 189.534.041.340 189.23.533 434.

000 3. 5.Fixed Deposit Accounts March 31.338 thousand]) Balances with Scheduled Banks in: .927.078 30.426 SCHEDULE 10 LOANS AND ADVANCES (Unsecured and Considered Good) Advances Recoverable in Cash or in Kind or for Value to be Received Import Factor Commission Receivable Prepaid Expenses Deposits Advance Tax and Tax Deducted at Source (Net of Provision for Tax Rs. 2010 (Rs.Current Accounts .150. 1.110 SCHEDULE 9 OTHER CURRENT ASSETS Interest Receivable Unexpired discount on issue of Commercial Papers (Refer Note 2[xiv] on Schedule 18) 7.270 9.426 13.921 1. 2009 (Rs. Schedules Annexed To And Forming Part of The Balance Sheet As At March 31.289.597 508 334. ‘000) March 31.517 thousand [Previous Year Rs.118 280.596 236.668 22.687 3.423 137.776 thousands [Previous Year Rs.628 1.839 thousands [Previous Year Rs. 1. 2.600 thousands]) Advance Fringe Benefit Tax (Net of Provision for Tax Rs. ‘000) 2.SBI Global Factors Ltd. 4.559 13.493 SBIGFL Annual Report 2009-2010 30 . 2009 (Rs. ‘000) SCHEDULE 8 CASH AND BANK BALANCES Cash on Hand (Including Stamp Papers on hand Rs.289 2.258 46 57. 1.415 thousands]) 4.267.224 1.484 3.764 300 2.267 45.000 240.

211 Thousand [Previous Year Rs.Equity . if any.973 218. 1. ‘000) SCHEDULE 11 CURRENT LIABILITIES AND PROVISIONS Current Liabilities Sundry Creditors .644 3. 114.Dues to Micro Enterprises and Medium Enterprises .253 Thousand) 9.500 34.970 42.458 March 31. not accrued Balance with Scheduled Banks overdrawn as per books (Note : Arising on account of cheques issued against expected receipts) Interest Accrued But Not Due Provisions Proposed Dividend . 2010 (Rs.914 11.940 130.744 194.286 9. 2010 (Rs. relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.110 Thousand) Fringe Benefit Tax (Net of Advances Tax Rs.458 19.633 1.908 303.SBI Global Factors Ltd.771 53.196 thousand towards gratuity (previous year Rs. ‘000) 14. 147 Thousand]) Income Tax (Net of Advances Tax Rs.012 12. 2.143 1 15. Schedules Annexed To And Forming Part of The Balance Sheet As At March 31.615 608 106 4. 2006 and hence disclosures.500 1.647 542.Preference Corporate Tax on Dividend Provision for Compensatory Absenses Wealth Tax (Net of Advance Tax Rs.494 thousand)] Discount Charges Received in Advance.120 108 239.196 202.757 79.188 11.Dues to Others The Company has not received any intimation from suppliers regarding their status under the Micro. ‘000) March 31.914 19. Small and Medium Enterprises Development Act. 2009 (Rs. Other Liabilities [Including Rs.323 SBIGFL 31 Annual Report 2009-2010 .077 138.

953 9. 26.703 28.000 114.883 252 4. 13. Previous Year Rs. 2010 (Rs.570 51. 46.760 4.Includes prior period expenditure of Rs. Written Back Provision for Earlier Years Written Back Miscellaneous 24.770 308.007 4.820 thousand. Previous Year Rs. ‘000) SCHEDULE 12 INCOME FROM FACTORING Discount Charges Factoring Charges (Tax Deducted at Source Rs.707 269 129.258) 6.766 1.320 thousand) Processing Charges .922 3. 4.372 SCHEDULE 13 INTEREST INCOME Interest on Balances with Banks Interest on Fixed Deposits with Banks .467 1.000 112.590 March 31.875 165.015 43.805 7.364 thousand) Import Factor Commission 4.938 1.281 SCHEDULE 15 EMPLOYEE COSTS Salaries * Contribution to Provident Fund Staff Welfare Gratuity Compensatory Absenses Bonus and Exgratia 95.189 (1.725 130. ‘000) 48.135 *. 45.611. 603 thousand.473 72.215.889 4.372 5. 2009 (Rs.Gross (Tax Deducted at Source Rs.195 SCHEDULE 14 OTHER INCOME Income on Foreign Exchange Transactions Exchange Gain (net) Liabilities No Longer Required.SBI Global Factors Ltd.327 thousand) Other Interest Income 11 51.010 4.674 67. Previous Year Rs.727 2.926 7 51.119 86. Schedules Annexed To And Forming Part of The Profit & Loss Account For The Year Ended March 31.732 thousand.122.336. 282 thousand (Previous Year Nil) SBIGFL Annual Report 2009-2010 32 .218 2.340 494 7 30.Gross (Tax Deducted at Source Rs. 2010 March 31.

695.624 3.Non-Convertible Redeemable Debentures .914 1.763 March 31. Schedules Annexed To And Forming Part of The Profit & Loss Account For The Year Ended March 31.921 2.SBI Global Factors Ltd.443 1.851 886 3.704 958 1.234 8.500 11.858.420 739.147 2.105 13.897 4. Rates and Taxes Repairs and Maintenance .674 6.948.910 1.009 2.878 6.854 860 1.441 1.645 1.904 1.901 2.688 631.719 2.Others Bank Charges Credit Rating Fees Discount on Issue of Commercial Papers Brokerage on Market Borrowing Stamp Duty 699.718 10.965 10.865 6.694 3.290 1.954 66.024. ‘000) SCHEDULE 16 OPERATING AND OTHER EXPENSES Correspondent Fees Credit Insurance Charges Rent.447 763 463 1.777 2.469 826.492 60 9.191 2.380 SBIGFL 33 Annual Report 2009-2010 .Building .084 327 2.411 1.780 3.324 745.614 1. 2010 (Rs.681.256 2.550 7.105 2.684 339.500 4.018 176. 2009 (Rs.014 9.318 160. 2010 March 31. ‘000) SCHEDULE 17 FINANCIAL EXPENSES Interest on : .395 1.340 1.061 750 1.910 59.794 1.Others Communication Travelling Conveyance Advertisement & Publicity Auditors’ Remuneration Utilities Insurance Membership and Subscription Motor Car Running Expenses Printing and Stationery Legal and Professional Fees Syndication Fees Outsourcing Costs Director’s Sitting Fees (Profit)/Loss on Sale of Fixed Assets (net) Provision for Doubtful Debts Bad Debts written of Less : Provisions Written Back Provision of Doubtful Investments Security Charges Service Tax Share Issue Expenses Miscellaneous 674 6.240 36.165 5.337 9.806 915.018 29.105 82.728 47.Short Term Loans (including Overdraft) .846 1.980.

Assets individually costing Rs. 1956 Asset Rate Office Equipment 20. Tangible Assets The Company provides depreciation on following assets on the straight-line method at the rates higher than those prescribed in Schedule XIV to the Companies Act. SBIGFL Annual Report 2009-2010 34 . Intangible Assets Intangible Assets are stated at cost of acquisition less accumulated amortisation. vi) Reserve Bank of India Prudential Norms The Company follows the guidelines issued by the Reserve Bank of India. iii) Fixed Assets a. Intangible Assets Computer Software is amortised on straight-line method over a period of 3 years.00% On other assets. 1956. and comply in all material respects with the accounting standards notified by the Companies Accounting Standard Rules. b. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.00% Computer Hardware 33.SBI Global Factors Ltd. the Company provides depreciation on the straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act. less accumulated depreciation. in respect of income recognition and valuation of investments. ii) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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. Leasehold improvements are amortised over the period of lease. 1956. iv) Depreciation / Amortisation a . 2010 And Profit And Loss Account For The Year Ended March 31. Tangible Assets Tangible assets are stated at cost of acquisition.33% Furniture & Fixtures 20. 2006 as amended and the relevant provisions of the Companies Act. Schedule Annexed To And Forming Part of The Balance Sheet As At March 31. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.00% Vehicles 25. v) Impairment of Fixed Assets An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. of India (the Act). b.000 or less are depreciated at the rate of 100% in the year of purchase. 2010 SCHEDULE 18: SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS 1 SIGNIFICANT ACCOUNTING POLICIES i) Basis of Accounting The Accounts are prepared under historical cost convention from the books of account maintained on accrual basis. the company follows the guidelines issued by the Reserve Bank of India / stricter norms. 5. In respect of asset classification.

and 2. ix) Foreign Currency Transactions Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Classification of Non-performing asset: Category Criteria Sub-Standard Assets Doubtful Assets Loss Assets Principal and/or Interest overdue for 6 months or more Principal and/or Interest overdue for 24 months or more 1. An asset which is adversely affected by a potential threat of non. the portion of advance/ asset covered by value of tangible security will be provided for cumulatively as under: Provision % Sub-Standard Asset 20% Period for which the advance remains doubtful Period for which the advance remains doubtful Provision % Upto 1 year 20% More than 1 year and upto 3 years 50% More than 3 years – full loan will migrate to Loss Asset 100% III. Provisioning for Non-performing asset: (a) The portion of advance/ asset not covered by value of tangible security will be provided for cumulatively as under: Category Provision Sub Standard Assets 20% Doubtful Assets 100% Loss Assets 100% (b) In addition to II (a) above. vii) Provisioning Norms The provisioning norms followed by the Company are more stringent than those prescribed by Reserve Bank of India and are as follows: I. Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognized in the Profit and Loss Account. to the extent it is not written off by the company. Monetary assets and liabilities as at the Balance Sheet date. are translated at the rates of exchange prevailing at the date of the Balance Sheet. the forward premium is recognized over the life of the Contract and the difference between the year end rate and rate on date of contract is recognized as exchange difference. An asset which has been identified as loss asset by the company or its internal or external auditor or by the Reserve Bank of India during the inspection of the company. Additional provisions is also made as and when considered necessary.recoverability due to either erosion in the value of security or non-availability of security or due to any fraudulent act or omission on the part of the borrower II. SBIGFL 35 Annual Report 2009-2010 . In case of assets and liabilities covered by forward contracts.SBI Global Factors Ltd. viii) Investments Current Investments are valued at lower of cost and fair value.

wherever recovered. only) are provided for based on an actuarial valuation. Long term employee benefits : Provident Fund is a defined contribution scheme and the company’s contributions are charged to the profit & loss account of the year.SBI Global Factors Ltd. Contingent Liabilities are not recognised but are disclosed in the notes. Long term compensated absence (in the case employees of ertswhile SBI Factors & Commercial Services Pvt. Contingent Assets are neither recognised nor disclosed in the financial statements. Ltd. xiii) Employee Benefits Short term employee benefits : All employee benefits payable wholly within 12 months of rendering service are classified as short term employee benefits. Retirement benefits in the form of gratuity liability is provided at the end of each year. x) Revenue Recognition (i) Discount charges and interest on advances are accrued on time basis on the balances in the prepayment accounts at the applicable discount/ interest rates. The undiscounted amout of short term employee benefits expected to be paid in exchange for services rendered by employees is recognized an an expense during the year. SBIGFL Annual Report 2009-2010 36 . (iii) Processing charges are accrued at the time of sanction of the factoring/ financing limits by the Company. Deferred tax asset and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted at the Balance Sheet date. b) Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Contingent Liabilities and Contingent Assets 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. All other deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets. xv) Provision. Unexpired discount as at the year end is included under Other Current Assets. (iv) Revenue excludes Service Tax. xiv) Discount on issue of Commercial Paper Discount on issue of commercial papers is amortised over the period to maturity of the commercial paper. Deferred Tax Asset in respect of carry forward of losses and depreciation is recognised only to the extent that there is virtual certainty that sufficient taxable income will be available to realise this asset. xii) Taxes on Income a) Current tax is determined as the amount of tax payable in respect of taxable income for the period. (ii) Factoring charges are accrued on factoring of debts at the applicable rates. These benefits include compensated leave such as paid annual leave and sick leave in case of the company’s employees. For such compensatory absenses provision is made on actual basis based on balance of unutilized leave available to the employees as at the balance sheet date. on the basis of an actuarial valuation based on the projected unit credit method as per Accounting Standard 15 on Employee Benefits. xi) Debts Factored Debts factored by the Company are included under Current Assets as Sundry Debtors (to the extent funds are paid to the clients). Actuarial gains/losses are recognized immediately in the profit and loss account.

000 20.SBI Global Factors Ltd. reserves. pending completion of relevant formalities of transfer of assets. 1956. 2006 and the relevant provisions of the Companies Act. liabilities.241.518 1. 2010. Accordingly 47. liabilities and arrangements acquired pursuant to the above mentioned scheme. In accordance with the scheme all the assets. 2009 have been taken over at their book values as under Rs.004 * In accordance with the Scheme of Amalgamation the balances in the following Reserves as at the appointed date have been transferred to the Company at their book values: Reserves & Surplus Share Premium (after conversion of the preference shares) General Reserve Profit & Loss Account Contingency Reserve Statutory Reserve u/s 45IC of RBI Act. xvi) Borrowing Costs All borrowing costs are charged to revenue. Accordingly. ‘000 486. include such assets. duties and obligations of SBIF were transferred to and vested in the Company with effect from 1st April. The transferee company (GTF) is also engaged in factoring services. liabilities and other reserves of the erstwhile SBIF as at 1st April.895.510 fully paid up equity shares of Rs.567 16.910 205.255. liabilities and reserves of SBIF with effect from 1 April.454.996 518. the assets. Loans & Advances Less: Liabilities taken over at book value: Reserves & Surplus (after conversion of the preference shares)* Secured Loans Unsecured Loans Current Liabilities and provisions Net assets taken over 12.117. The results for the year ended 31st March 2010.241. Rs.486 SBIGFL 37 Annual Report 2009-2010 . 2009. These equity shares rank pari passu with the existing equity shares of the company. for every 111 fully paid up equity shares held by them in SBIF as on the record date (including those equity shares which were allotted after the conversion of the CCP shares).10 each have been allotted to the shareholders of erstwhile SBIF. The amalgamation has been accounted for under the “pooling of interests” method as prescribed by Accounting Standard 14 (AS 14) “Accounting for Amalgamations” issued under Companies Accounting Standard Rules. was allotted 100 fully paid up equity shares of Rs.506 1.062 10. xvii) Leased Assets Rentals in respect of assets taken on operating lease by the company are expensed as per the terms of the lease agreement.694 1. liabilities and arrangements remain in the name of erstwhile SBIF. 2 The Scheme of Amalgamation (‘the Scheme’) of SBI Factors and Commercial Services Private Limited (the transferor company) (hereinafter referred to as “SBIF”) with the Company (the transferee company) as approved by the shareholders and was subsequently sanctioned by the Hon’ble High Court at Mumbai vide its Order passed on 15th January 2010 and filed with the Registrar of Companies on February 1.714 4. As per the Scheme of Amalgamation. 2009 (‘ The Appointed Date’) and these financial statements include the assets. The transferor company (erstwhile SBIF) is engaged in the business of offering factoring services to client mostly in the small and medium enterprises sector to meet their working capital requirements. each of the shareholders of the erstwhile SBIF. ‘000 Assets taken over at book values: Fixed Assets Current Assets.10 each of the company.486 8.357.551 523.

2009 Rs. ‘000 65. Pursuant to the scheme of amalgamation. the figures for the current year are strictly not comparable to those of the prior year. As a result of the above. being the difference in the aggregate of the net assets of SBIF and the aggregate face value of the new shares issued to the transferor company.485 Thousand). b) Contingent liability not provided for in respect of credit protection provided by the company as an Import Factor amounted to Rs. 2. 11. the company has decided to change the policy of providing depreciation on assets of the erstwhile SBIF (which was written down value method) so as to make it consistent with the policy of providing depreciation in case of the company (which is straight line method). an amount of Rs. as per the scheme of amalgamation. 2009 Rs. the company has insured itself to the extent of 90% of the liability which amounts to NIL (as at 31st March. 71. 51. 11. In case of the credit protection being enforced. 50.985 Thousand). 3 Contingent Liabilities : a) No provision has been made in respect of certain disputed demands of Income Tax/Service Tax pending disposal of appeals/rectification filed by the company with the appellate authorities amounting to Rs. Pursuant to the scheme of amalgamation. In view of aforesaid amalgamation with effect from 1April.839 Thousand (As at March 31. the company has decided to change the policy of provisioning norms on assets of the erstwhile SBIF so as to make it consistent with that of the company. 2009. being the difference in the carrying value of fixed assets as on 1st April 2009 (the appointed date) because of this change has been debited to General Reserve. an amount of Rs.268 thousands.237 thousands. 10.787 Thousand). pursuant to this scheme has been credited to the General Reserve. As a result of the above. 4. as per the scheme of amalgamation.829 thousands.023 Thousand).105 SBIGFL Annual Report 2009-2010 38 . 24. c) Contingent liability not provided for in respect of credit protection provided by the company on Bank Letter of Credit (LCs) opened for the clients amounting to NIL (as at 31st March 2009 Rs.584 Previous Year Rs. 4 Details of Operating Leases as lessee: Particulars Lease payments debited to the Profit and Loss Account on account of cancelable lease agreements Current Year Rs. In accordance with the Scheme of Amalgamation. being the difference in the provision for doubtful debts as on 1st April 2009 (the appointed date) on account of this change has been credited to General Reserve.SBI Global Factors Ltd. an amount of Rs. ‘000 29. 2009 Rs.563 Thousand (as at 31st March.

694 SBIGFL 39 Annual Report 2009-2010 .188 605 175 (1. Where as for employees of erstwhile SBI Factors it is a defined contribution plan and is funded with an insurance company in the form of a group gratuity policy.039) (395) 68 Year Ended 31/03/2009 (in Rs. included in “Employee Benefit Expense” Actual Return on Plan Assets 605 175 (136) (1.694) 494 494 494 Table 2 Expense Recognized in Statement of Profit & Loss Account Year Ended 31/03/2010 (in Rs. ‘000) 2. ‘000) Present Value of Funded Obligations Fair Value of Plan Assets Present Value of Unfunded Obligations Unrecognized Past Service Cost Net Liability Amounts in the Balance Sheet Liabilities Assets Net Liability 1.257 1. ‘000) 935 162 (83) (520) 494 50 Table 3 Reconciliation of Benefit Obligations & Plan Assets for the Period Year Ended 31/03/2010 (in Rs.188 (1. ‘000) 1.111 83 (33) 533 1. Disclosure for Gratuity in case of employees of the company.644 935 162 (553) 2.257) (395) (395) (395) Year Ended 31/03/2009 (in Rs.188 1. (AS 15) is as follows: Table 1 Amount to be Recognized in Balance Sheet Year Ended 31/03/2010 (in Rs.862 (2. as per revised Accounting Standard 15 on “Employee Benefits”. 5 The company has a defined benefit gratuity plan for its employees and is funded in a separate gratuity trust.106) 1. ‘000) Current Service Cost Interest on Defined Benefit Obligation Expected Return on Plan Assets Net Actuarial Losses / (Gains) Recognized in Year Past Service Cost Losses / (Gains) on “Curtailments & Settlements” Total.SBI Global Factors Ltd.862 Year Ended 31/03/2009 (in Rs.694 136 (67) 494 2. ‘000) Change in Defined Benefit Obligation Opening Defined Benefit Obligation Current Service Cost Interest Cost Actuarial Losses / (Gain) Liabilities Extinguished on Curtailment Liabilities Extinguished on Settlements Liabilities Assumed on Acquisition Exchange Difference on Foreign Plans Benefits Paid Closing Defined Benefit Obligation Change in the Fair Value of Assets Opening Fair Value of Plan Assets Expected Return on Plan Assets Actuarial Gains / (Losses) Assets Distributed on Settlements Contributions by Employer Assets Acquired due to Acquisition Exchange Difference on Foreign Plans Benefits Paid Closing Fair Value of Plan Assets 2.

00% 5% March 31. 2010 Discount Rate Expected Rate of Return on Plan Assets Salary Escalation Rate 8. ‘000) 301 175 -89 1 0 387 0 154 Current service cost Interest cost on benefit obligation Expected return on plan assets Net actuarial (gain) / loss recognised in the year Past service cost Net benefit expense Actual return on plan assets Balance sheet Details of Provision for gratuity Defined benefit obligation Fair value of plan assets Less: Unrecognised past service cost Plan asset / (liability) 2373 1215 -1158 -1158 Changes in the present value of the defined benefit obligation are as follows: 31-Mar-10 (Rs..694 Table 5 Summary of Actuarial Assumptions Financial Assumptions at the Valuation Date: March 31. as per revised Accounting Standard 15 on “Employee Benefits”.SBI Global Factors Ltd. Table 4 Asset Information Category of Assets Government of India Securities Corporate Bonds Special Deposit Scheme Equity Shares of Listed Companies Property Insurer Managed Funds Others.00% 5% Disclosure for Gratuity in case of employees of erstwhile SBI Factors and Commercial Services Pvt. ‘000) Opening defined benefit obligation Interest cost SBIGFL 1942 175 Annual Report 2009-2010 40 .257 thousand a break up of the same is as follows: Category of Assets Government of India Securities Corporate Bonds Special Deposit Scheme Equity Shares of Listed Companies Property Insurer Managed Funds Others. (AS 15) is as follows: Profit & Loss Account Net Employee benefit expense (recognised in Employee Cost) 31-Mar-10 (Rs.257 2. Ltd. Bank Deposits Total Year Ended 31/03/2010 % 0% 0% 0% 0% 0% 0% 100% 100% Year Ended 31/03/2009 % 0% 0% 0% 0% 0% 0% 100% 100% The approximate market value of the assets as at 31 March 2010 was Rs.257 (Rs. ‘000) 2. ‘000) 1.00% 8. 2009 8.00% 8. 2. Bank Deposits Total (Rs.694 1.

879 4. the Primary segment of the Company is business segment.606. ‘000 790.409.747 18.319 30.156 4.938 3.885 17.350 SBIGFL 41 Annual Report 2009-2010 . ‘000) 898 89 273 -109 64 1215 The Company expects to contribute Rs.146 10 9.252.885 17. Segment information for secondary segment reporting (by geographical segments) The Company has a customer base within and outside India.696 3.288 18. As the company operates in a single primary business segment.880 26. The principal assumptions used in determining gratuity and post-employment medical benefit obligations for the Company’s plans are shown below: 31-Mar-10 % Discount rate 8% Expected rate of return on Plan assets 8% Salary Escalation Rate 5% 6 Earnings Per Share: Current Year Rs.889.080.274.) Basic and Diluted Earnings Per Share (Rs. tax thereon) Profit available to Equity Shareholders Weighted average number of Equity shares outstanding during the period (Refer Note 19) Nominal Value of Equity Shares (Rs.38 Previous Year Rs.90 Net Profit after tax Less: Dividend to Preference Shareholders (incl.) (A) (B) (A) / (B) 7 Segment information for primary segment reporting (by business segments) Based on guiding principles given in the Accounting Standard on ‘Segment Reporting’ (AS-17).336. no segment information thereof is given.372 30.260.235 4. which comprises of factoring activity.722 574.812 11.350 International 256.235 4.016 33.938 3.459 (Rs.036. applicable to the period over which the obligation is to be settled.365 10 0.176 764.704 77.880.SBI Global Factors Ltd.464 thousand to gratuity in 2010-11.697 144.115 54. Particulars Revenues from external customers (Previous Year) Segment assets (Previous Year) Capital Expenditure -Tangible (Previous Year) -Intangible (Previous Year) Domestic 4. Current service cost Benefits paid Actuarial (gains) / losses on obligation Closing defined benefit obligation Changes in the fair value of plan assets are as follows: 301 -109 65 2373 Opening fair value of plan assets Expected return Contributions by employer Benefits paid Actuarial gains / (losses) Closing fair value of plan assets 31-Mar-10 (Rs.677 6.695 23. The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: 31-Mar-10 % 100% Investments with insurer The overall expected rate of return on assets is determined based on the market prices prevailing on that date. ‘000 65.611. ‘000) Total 4.299.

K. ‘000 2.259. 8 Disclosure on Derivatives The Foreign Currency Exposures that have not been hedged by a derivatives instrument or otherwise as on 31st March. (SBICPSL) State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of Indore (SBIr) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Travancore (SBT) SBICI Bank Ltd State Bank of India International (Mauritius) Ltd State Bank of India (California) State Bank of India (Canada) INMB Bank Ltd.931 (665) 733 (8. 9A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Related Party Disclosures Name of Related Party Mr. Lagos SBI Life Insurance Company Ltd (SBI LIFE) SBICAP Securities Ltd Relationship Key Management Personnel (KMP) Key Management Personnel (KMP) Key Management Personnel (KMP) Holding Company Associate Fellow Subsidiary (Non-Banking) Fellow Subsidiary (Non-Banking) Fellow Subsidiary (Non-Banking) Fellow Subsidiary (Non-Banking) Fellow Subsidiary (Banking) Fellow Subsidiary (Banking) Fellow Subsidiary (Banking) Fellow Subsidiary (Banking) Fellow Subsidiary (Banking) Fellow Subsidiary (Banking) Fellow Subsidiary (Banking) Fellow Fellow Fellow Fellow Fellow Fellow Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Banking) (Banking) (Banking) (Banking) (Non-Banking) (Non-Banking) SBIGFL Annual Report 2009-2010 42 . 2005. the net foreign currency exposure is minimal.052 (52.309) 137 (1.058) 138 (1.175) 523 (172) 172 163 2. Gupta State Bank of India (SBI) SBI Mutual Fund SBI Capital Markets Limited SBI Funds Management Private Limited SBI DFHI Limited SBI Cards & Payments Services Pvt.139. 2006.155) 495 Amount Rs.510 (2.939) 33.665.302 (77. Sangeet Shukla Mr.191) 322 (9) 16 (160) 9 (3) 3 (2) 50.364) 21.354 (2.SBI Global Factors Ltd.157) 8.397 (52. V. which is applicable to the financial period ending on or after 31st March.333 (80.368) 8. The above disclosure have been made consequent to an announcement by the Institute of Chartered Accountant of India in December.671 - Currency (a) Assets (Receivables) USD EUR GBP (b) Liability (Payables) USD EUR GBP (c) Loans Payable USD EUR GBP As the Company has Foreign Currency outstanding Receivables & Payables which offset each other. Ltd. 2010 are as follows: Currency Amount ‘000 47. Arvind Sonmale Mr.652.

000) SBIGFL State Bank of India Opening balance Additions during the year Converted into Equity Shares during the year # Closing Balance State Bank of Indore Opening balance Additions during the year Converted into Equity Shares during the year # Closing Balance SIDBI Opening balance Additions during the year Converted into Equity Shares during the year # Closing Balance 43 Annual Report 2009-2010 .000) 256.000 (802.000) 24. 7.000) 46.000 (-) (24.271 (-) 14. No.SBI Global Factors Ltd.552 (902.380 (-) 28.000 (-) (80. 1 List of Related Party Transactions: Transactions Current Year (Rs.000) 80.000) 24.000) 1. B Sr.601 B.000 (-) (256.000 (-) (256.000) 80.000 (-) (24.5% Compulsorily Convertible Preference Shares # SIDBI 902.5% Compulsorily Convertible Preference Shares # Closing Balance (-) (-) 28.552 (100.5% COMPULSORILY CONVERTIBLE PREFERENCE SHARES 256.271 (-) 4.000) (-) 301.723 Allotted on Conversion of 7.000 (-) (80.203. ‘000) (Previous years’ figures are given in brackets) Holding Company Fellow Subsidiaries Associates Key Mgt Personnel (KMP) EQUITY SHARE CAPITAL State Bank of India Opening balance Acquired during the year Issue during the year * Closing Balance Allotted on Conversion of 7.5% Compulsorily Convertible Preference Shares # State Bank of Indore Opening balance Acquired during the year Issue during the year * Allotted on Conversion of 7.

450.814. B List of Related Party Transactions: Transactions Current Year (Rs.000.711) 9.601 (12.000 (1.834. B.000 (999.189.000) (-) (1.600) 12.000.998 7. ‘000) (Previous years’ figures are given in brackets) Holding Company Fellow Associates Key Mgt Subsidiaries Personnel (KMP) Sr.792 (2.000) (-) SBIGFL Annual Report 2009-2010 44 .684) 2.879.000 (4.657 (752.506 (759.000) (650.764.000) (500.000. SECURITIES PREMIUM State Bank of India Opening balance Issue during the year * Closing Balance 2.000 (4.333) 8.984) 12.000 (650.000. UNSECURED LOAN SBI International .387) 102.000.000.399 (12.124.000.Mauritius Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance 1.000) 7.998) 4.500.SBI Global Factors Ltd.657) 1.329 (7.730.300. No.136.681.136.035.000) 500.300.000) 1.043 (5.000) (1.506) State Bank of Mysore Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance State Bank of Hyderabad Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance State Bank of Patiala Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance 500.455 (1.000 999.000.000) 4.000) SBI London Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance 2.000.300.124.000 (-) (6.000 (5.

500.161 (600.480.790.494.489) 8.000.292.000 (-) 2.980.452) SBIGFL 45 Annual Report 2009-2010 .329) 3. B List of Related Party Transactions: Transactions Current Year (Rs.986.000) 3.000 (-) (-) State Bank of India -7.000.000 (1.601.000 (-) (-) (-) 50.000.108. ‘000) (Previous years’ figures are given in brackets) Holding Fellow Associates Key Mgt Company Subsidiaries Personnel (KMP) Sr.500. No.500.142.523 (24.000 (2.000.835 (6.000 (3.000 3.908) 5.000 (27.000) 2.000 (-) 3 BANK BALANCE State Bank of India (Admin) CC A/c Closing Balance State Bank of Mysore (INR Loan) Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance -7.101 (-) 647.577 (6.000) 9.370.500.442 (725.052) 5.SBI Global Factors Ltd.000 (3.517) (290) (647.108.000.000) State Bank of India CP Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance (-) 2.161) State Bank of Travancore Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance 2.35% Subordinate Debt Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance 50. State Bank of India Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance 3.

653) (43.FC Line of credits 1.413 (-) 2 (-) 460 (499) 7 GIFTS & PRESENATAION State Bank of India SBIGFL Annual Report 2009-2010 46 . B List of Related Party Transactions: Transactions Current Year (Rs.619) 4 INTEREST PAYABLE SBI International .429) 9.370 (42.770.975 (8.London State Bank of India ODD A/c SBI London .765.263) 50.659) 288.291.240) (5.SBI Global Factors Ltd. ‘000) (Previous years’ figures are given in brackets) Holding Company Fellow Subsidiaries Associates Key Mgt Personnel (KMP) Sr.334.265.000) (300) (1.349 (2.719) 8.952 (9.102.243.932 (106.474 (-) 178.184 (181. No.380) 5 INTEREST EXPENSES SBI International .946) 300.317 (388.London SBI Commercial Paper State Bank of India 5. State Bank of Patiala Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance State Bank of India INR Opening balance Loans taken during the existence of relationship Loans repaid during the existence of relationship Closing Balance 1.507 (234.Mauritius SBI .682.611 (97.374) 6 SBI Capital Market Ltd SBICAP Securities Ltd 4.698) 135.110.738) 732 (-) 1.916) 21.088.935 (25.175 (16.691) 53.Mauritius State Bank of Hyderabad State Bank of Mysore State Bank of Patiala State Bank of Travancore State Bank of India ODD A/c SBI .974 (384.834.148 (1.524) 17.148) 5.952) 11.088.527 (7.833 (93.180 (-) (1.861) 27.771.906.

338 (-) 9 Salary paid to Deputed Staff State Bank of India 2. Sangeet Shukla Opening Balance Payable Remuneration for the year Closing Balance Payable Mr.995 (-) 1 (-) 363 (590) 2. No.672) (-) 5. V K Gupta Opening Balance Payable Remuneration for the year Closing Balance Payable (-) 995 (-) (-) (-) 5.449) 11 Meeting Fees State Bank of India INVESTMENT SBI Mutual Fund Opening balance Investment made during the year Investment liquidqted during the year Closing Balance Profit of Investments 12 9.225 (19.538 (2493) (-) SBIGFL 47 Annual Report 2009-2010 .661) 9.287.331 (4735) (-) (-) 3.292. B List of Related Party Transactions: Transactions Current Year (Rs. 8 RENT PAID State Bank of India 3.SBI Global Factors Ltd.Mauritius State Bank of India INR State Bank of Patalia INR State Bank of Mysore 2.658 (2.399 (11) 13 REMUNERATION TO KEY MANAGERIAL PERSONS Mr. ‘000) (Previous years’ figures are given in brackets) Holding Company Fellow Associates Subsidiaries Key Mgt Personnel (KMP) Sr.497 (3.020) 2. Arvind Sonmale Opening Balance Payable Remuneration for the year Closing Balance Payable Mr.624 (19.737 (147) 10 BANK CHARGES / PROCESSING FEES SBI International .

584 389 3. Nil (Previous Year Rs.284 thousand) 11 Managerial Remuneration Current Year Rs.531 Correspondent Fees Travelling Membership and Subscription Interest on Short Term Loans Directors Sitting Fees Advertising Legal Fees & Expenses Others 14 Earnings in Foreign Currency: Current Year Rs.Tangible Assets Rs.Factoring Charges . ‘000 Income from Factoring .296 Previous Year Rs.047 7.200 300 510 28 2.024 9.888 3.200 53. ‘000 900 200 25 123 1. ‘000 Salaries and Bonus * Contribution to PF & Other Fund Monetary Value of Perquisites Total Managerial Remuneration 5. 5900 thousand (Previous Year 2. ‘000 1.Processing Charges Bank Interest Miscellaneous Income 164.864 Previous Year Rs. ‘000 262.As Tax Auditors .493 252 15. ‘000 674 693 311 61.353 17.In any other manner (Including certification) Out of Pocket Expenses 13 Expenditure in Foreign Currency (On Accrual basis) Current Year Rs.SBI Global Factors Ltd.248 Previous Year Rs.Discount Charges .910 467 10 123.504 11 5 Previous Year Rs. ‘000 4.Intangible Assets Rs.038 As Auditors In Other Capacity . 56 thousand) .Import Factoring Charges . ‘000 1. 10 Estimated amount of contracts to be executed on capital account for .885 296 2.664 269 8 SBIGFL Annual Report 2009-2010 48 .539 301 4.456 100 155 3.228 12 Auditors’ Remuneration: Current Year Rs.

153.Plan-Growth Templeton India TMA Super IP Growth Templeton India Ultra Short Bond Fund SIP Growth Templeton MF Floating Rate ST IP Growth UTI Liquid Cash Plan Institutional Growth UTI Liquid Inst.402.536.952.000 2.000 39.459.000 3.432 1.319 24.000.527 869. Growth Fidelity Ultra Short Term Debt Super IP Growth HDFC Cash Management Fund savings Plan Growth HDFC Cash Mgt.972 74.Morgan India Treasury Fund Super Inst.100.893 1.050.687 7.157.000 8.025 850.P.551 209.Growth J.281.000 107.602.078.512.000 3.Inst.Advantage Fund -Inst.Inst.Plan Growth TATA Treasury Manager Super High Inv.395.Growth JM High Liquidity Fund Super Ins.000 100. 15 Details of Purchase and Sale of Investments during the year ended March 31.Growth Tata MF Liquid Super High Inv.698.-Growth Reliance Money Manager Fund Int.822.Plan-Growth DWS Insta Cash Plus Fund-Super Inst. Cum-P31INP Pru ICICI Liquid Inst.000 153. Plus SIP Growth Reliance Floating Rate Fund .690.Growth Tata MF Floating Rate Short Term Inst.537 109.696 2.-Cum-Org DBS Chola Liquid Super Inst.000 850.834.632.321.986 528.250.550.437.824 5.173 3.654 210.099 6.156 343.592.482 7.982 654.501.758 49.550.Plus Growth Birla Cash Plus Inst.206 1.103 61.225 9.080.Premium Growth Lotus Ultra Short Term Fund.615.177 3.679 5.000 2.000 2.376.000 2.000 1.326.698.784 8.346 209.519 SBIGFL Name of Scheme ABN/Fortis Money Plus Inst.304 92.828.Cash Plan Growth UTI Money Market Fund Institutional Growth Plan UTI Money Market Fund Growth Plan UTI Treasury Advantage Fund IP.900.389 641.200. Wholesale Growth HDFC MF Liquid Fund Premium-Growth IDFC Cash Fund Super IP Growth IDFC Money Manager -Treasury SIP Plan Growth ING Vysya Liquid Super Inst.379 512.663 13.250.Growth Reliance Liquid Fund-Treasury Plan.462.Plan Growth ING Vysya Treasury Adv.377 433.193.508.000 2.692.192 9.623.608.600.155 Quantity Purchased/Sold 125.825.057.475.388 172.Cash Plan-Growth SBI MF Magnum Insta Cash Option SBI MF Premier Liquid Super IP Growth SBI-SHF-Ultra Short Term Fund-Int.000 4.566.Adv.752.560.085.Super Inst.277.943 33.590 45.300.Growth Reliance Liquidity Fund -Growth Reliance Liquidity Fund -Treasury Plan Inst.624.000 79.700.767.595.450.721.190.502 272.676 87.422 10.350.300.870.500.095 200.175.992.425 39.Growth DBS Chola Freedom Income STP Inst.485.450.606.305.376 22.Growth Canbank Liquid plus Inst Growth Canbank Liquid Super Inst Growth Canbank MF Floating Rate STP Instt.000.923.614 12.000 3.807.Fund-Inst.145 2.Growth Religare Ultra Short Term Fund.563.P.520 11.510 1.591 559.445 1.346.450.654.000.791 9.513.808.554 566.469 7.000.000 41.000 6.968 1.Plan-Growth JM Money Manager Fund Super Plus Plan -Growth Kotak Liquid Institutional Prem.Fund Super Inst.000 7.029.734 9.014 2.Plan Growth Fidelity MF Cash Fund Super I.299.100.862 16.Premium Growth BOB Pioneer Liquid IP Growth BOB Pioneer Treas.000 1.550.367 75.885 11.000 850.285.230.927 84.467 3..SBI Global Factors Ltd.000 8.227.901.149 1.152.200.000 3.950.121. 49 Annual Report 2009-2010 .891 429.Grwth Religare Liquid Fund.768.000 50.Growth Principal Cash Mangt.077.Growth J.019 480.000 150.981 140.568 4.380 78. 2010 Mutual Funds Amount of Purchase (Rs.516.761.390.Growth SBI Magnum Insta Cash Fund-Cash Option SBI MF Inst.502.244.P.534.675 84.595 3.143 7.151.789 4.Treasy.679.306 2.258.461 143.000 19.000 6.227.622.Plan Growth Sundaram Money Fund Super IP Growth Sundaram Ultra ST Fund Super Inst.Morgan India Liquid Fund Growth Plan J.945 2.211.150.Dividend Appreciation Tata MF Liquid Super High Invest.732 8.650.515.-Growth Religare Liquid Fund Inst.904.610 6.000 19.Growth Plan J.652 220.550.120.Growth Total Note 1: No loss has been incurred on any sale during the year.415.860.Morgan India Liquid Fund Super Inst .700.313 12.Growth LIC MF Floating Rate -Short Term Growth Plan LIC MF Liquid Fund-Growth Lotus MF-Liquid Inst.650.819.546 621.P.086.000 29.Premium -Growth Pru ICICI Liquid Inst.271 154.333 1.000 171.857 2.Inst.Morgan India Treas.719.989 1.040.345.172.650.571.750.021 3.816 2.483.000 1.691 310.582 327.970.225.000 1.820.Growth ABN/Fortis Overnight -Inst.027.000 657. ‘000) 1.027.850.956.104 220.803.892.P.533.182 7.937 152.283 689.494.

SBI Global Factors Ltd. 16 Schedule in terms of Paragraph 13 of Prudential Norms as per Notification No. Quoted : (i) Shares : (a) Equity (b) Preference (ii) Debentures and Bonds (iii) Units of mutual funds (iv) Government Securities (v) Others (please specify) 2.2007 dated February 22. ‘000 53.491.294 28.013. Unquoted : (i) Shares : (a) Equity (b) Preference (ii) Debentures and Bonds (iii) Units of mutual funds 3 - - - - SBIGFL Annual Report 2009-2010 50 . 193 DG(VL). ‘000 Previous Year Rs.837 - - Amount Outstanding ASSETS SIDE: 2 Break-up of Loans and Advances including bills receivables [other than those included in (3) below: ] # (a) Secured (b)Unsecured (Excludes Advance Payment of Tax) Current Year Rs.DNBS.366. ‘000 Previous Year Amount Amount Outstanding Overdue Rs.294 24.Secured . 2007 issued by Reserve Bank of India. ‘000 Amount Overdue Rs.313.999 - - 1. ‘000 1 Loans and advances availed by the NBFCs inclusive of interest accrued thereon but not paid: (a) Debentures : .Unsecured (other than falling within the meaning of public deposits*) (b) Deferred Credits (c) Term Loans (d) Inter-corporate loans and borrowing (e) Commercial Paper (f) Other Loans (specify nature) 1.851 Break up of Leased Assets and stock on hire and hypothecation loans counting towards AFC activities (net of provision) (i) Lease assets including lease rentals under sundry debtors (a) Financial lease (b) Operating lease (ii) Stock on hire including hire charges under sundry debtors: (a) Assets on hire (b) Repossessed Assets (iii) Other loans counting towards AFC activities (a) Loans where assets have been repossessed (b) Loans other than (a) above # Debts Shown under Sundry Debtors have not been Considered 4 Break-up of Investments : Current Investments: 1. Current Year LIABILITIES SIDE : Amount Outstanding Rs. ‘000 Rs.672 26.

360 - - 5 Borrower group-wise classification of all leased assets.672 26.672 26. ‘000 (iv) Government Securities (v) Others (please specify) Long Term investments : 1. Unquoted : (i) Shares : (a) Equity (b) Preference (ii) Debentures and Bonds (iii) Units of mutual funds (iv) Government Securities (v) Others (please specify) - - - - 189.851 53. Quoted : (i) Shares : (a) Equity (b) Preference (ii) Debentures and Bonds (iii) Units of mutual funds (iv) Government Securities (v) Others (please specify) 2. Related Parties (a) Subsidiaries (b) Companies in the same group (c) Other related parties 2. Amount Outstanding ASSETS SIDE: Current Year Rs.SBI Global Factors Ltd.851 53.672 26. stock-on-hire and loans and advances: Amount net of provisions Category Secured Unsecured Total 1. Other than related parties (Previous Year) Total (Current year) Total (Previous year) - 53. ‘000 Previous Year Rs.672 26.851 - SBIGFL 51 Annual Report 2009-2010 .851 53.

CC.211 5. Other than related parties Total - 7 Other Information Current Year Rs.068. No.351.002/2008-2009 dated August 1.88% 16.920 3. 6 Investor group-wise classification of all investments (current and long term) (both quoted and unquoted): Current Year Category Market Value Break-up or fair value or NAV Previous Year Book Value (net of Provisions) Book Value Market Value (net of Break-up Provisions) or fair value or NAV - 1.132.05.505.SBI Global Factors Ltd.60% 2. Related Parties a) Subsidiaries b) Companies in the same group (c) Other related parties 2. ‘000 6. DNBS (PD).769 - 17 Disclosures as per circular No. Liquidity and disclosure norms.51% 11.119 - 2. 125/03. A) CRAR Items Items i) CRAR (%) ii) CRAR .63% Previous Year 14.91% SBIGFL Annual Report 2009-2010 52 .Tier I Capital (%) iii) CRAR .25% 3.Tier II Capital (%) Current Year 19. 2008. ‘000 Particulars (i) Gross Non Performing Assets (a) Related Party (B) Other than Related Parties (ii) Net Non-Performing Assets (a) Related Party (B) Other than Related Parties (iii) Assets acquired in satisfaction of debts Previous Year Rs. relating to guidelines for NBFC-ND-SI as regards to Capital Adequacy.

2010 SBIGFL 53 Annual Report 2009-2010 . hotels.250 (Rs. Residential b. multi-tenanted commercial premises. in crore) 1 day to Over 30/31 1 month days to 2 (One months month) Liabilities Borrowings from Banks Market Borrowing Assets Advances Investments 1.P. * Exposure is unsecured C) Asset Liability Management Maturity pattern of certain items of assets and liabilities (Rs. amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year. No.363 - - - - - - - 2 1 432 - 157 4 186 - 150 7 - 63 - 85 - 11 - 2. 38127 ICAI Firm Registration No. etc. Nayak Partner M. Exposure would also include non-fund based (NFB) limits.). ‘000) Prvious Year 191. industrial or warehouse space. (Individual housing loans up to Rs.15 lakh may be shown separately) (ii) Commercial Real Estate .792 350 1. (iii) Investments in Mortgage Backed Securities (MBS) and other securitised exposures a. Bhatt Chairman Sangeet Shukla Executive Vice Chairman & CEO Amita Joshi Company Secretary Mumbai Dated : April 27. Signatures to Schedules 1 to 18 forming part of the Accounts. The previous year’s figures have been reworked.030 - 18.SBI Global Factors Ltd. development and construction. 2010 For and on behalf of the Board of Directors O.Lending secured by mortgages on commercial real estates (office buildings.101961W Mumbai Dated : April 27.103 520 3. B) Exposure to Real Estate Sector Category a Direct Exposure* (i) Residential Mortgages . Nayak & Kishnadwala Chartered Accountants G. Accordingly. S. retail space. regrouped. multipurpose commercial premises. rearranged and reclassified wherever necessary. As per our attached report of even date For Contractor. Commercial Real Estate b) Indirect Exposure Fund based and non-fund based exposures on National Housing Bank (NHB) and Housing Finance Companies (HFCs).multi-family residential buildings.721 2 690 Over 2 Over 3 months months to 3 to 6 months months Over 6 Over 1 Over 3 Over 5 months to 3 to 5 years to 1 years years year Total Current Year 116. land acquisition.Lending fully secured by mortgages on residential property that is or will be occupied by the borrower or that is rented.

305 2.290.777. 50.444.848.437 93.728.058 355.124.859 4.290.486 594.801.383 264.133.900.795 4.756 4.356.343 4.217.705.516.744.794.503.627.468 21.031 128.135.556 6.587.253 76.654. Balance Sheet In US $ Balance Sheet As At March 31.724.442. 2010 US $* SOURCES OF FUNDS Shareholders’ Funds Share Capital Reserves and Surplus Loan Funds Unsecured Loans Total APPLICATION OF FUNDS Fixed Assets Gross Block Less: Depreciation Net Block Capital Advances Investments Deferred Tax Asset Current Assets.537 661.903.389 55.200 212.147.628.930.728.901 10.914 657. 44.244 650.686 571.397 5.642 US $ * March 31.081 58.350. 2010 March 31.90 ** 1 US $ = Rs.895 7.220 3.717 4.712.556 34.891.871.SBI Global Factors Ltd.677.359 2.915 11.486 580. 2009 US $** SBIGFL Annual Report 2009-2010 54 .640 2.372 9.769 64.662.708 1.479.274 4.721 2.123.045 699.100.018 699.814 682.153 657.254 5.980.72 Note: Previous year’s figures have been regrouped / recast / reworked / rearranged / reclassified wherever necessary 674.636 2. Loans and Advances Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Liabilities Provisions Net Current Assets Total * 1 US $ = Rs.509 687.

306 3.589.981.105.440.980 22.494.130.191 2.674) 1.633 2.479 (3.456.717 11.252 20.822 1.061 100.718 15.152.956.559.631 8.163 3.566.549.243) 1.300.352.214.149 Year Ended March 31.485.061 2.212 723.118.570 (281.029 77.664 PROFIT AVAILABLE FOR APPROPRIATION APPROPRIATIONS: Proposed Dividend .274 107.593.465.402. Ltd.582.784 1.560 187.525.Wealth Tax .492.303 682.410 11.724 Note : Previous year’s figures have been regrouped / recast / reworked / rearranged / reclassified wherever necessary SBIGFL 55 Annual Report 2009-2010 . 2010 Year Ended March 31.817.956. 2010 US $* INCOME Income from Factoring Interest Income Profit on Sale of Current Investments (Net) Other Income Total EXPENDITURE Employee Costs Operating and Other Expenses Interest and Financial Charges Depreciation / Amortisation Total PROFIT BEFORE TAXATION Provision for Taxation .521 666.581 35.549.516 5.080.673.214.410 3.644 27.414.004 10.864 16. 20.Fringe Benefits Tax PROFIT AFTER TAXATION Profit and Loss Account Balance Brought Forward from Previous Year Add : On account of amalgamation of erst while SBI Factors and Commercial and Services Pvt.960) (4.509 1.612 18.282 25.778 11. Profit And Loss Account In US $ Profit And Loss Account For The Year Ended March 31.252 22. 2009 US $** 90.011.830.SBI Global Factors Ltd.637 44.Current Taxation .036.717 18.947 222.946 96.Deferred Taxation .770 1.936 6.532 58.510 60.239.827 1.748.746 23.218 2.307.969 293.403 936.320.539 109.191 27.210.170.Excess Provision for Taxation for Earlier Years Written Back .Equity .918.549.Preference Corporate Tax on Dividend Transfer to General Reserve Transfer to Reserve Fund Transfer to Contingency Reserve Profit and Loss Account Balance Carried to the Balance Sheet 211.

Earnings per Share in Rs.(ITC Code) Product Description N A F A C T O R I N G O F D E B T S For and on behalf of the Board of Directors O. Bhatt Chairman Mumbai Dated: April 27. 1956. . Dividend Rate % 0 . Thousands) Public Issue Rights Issue N I L N I L Bonus Issue N I L Private Placement 4 7 1 1 7 5 III Position of Mobilisation and Deployment of Funds (Amount in Rs.for Loss) V Generic Names of three Principal Products/Services of the Company (as per monetary terms) Item Code No. P. Thousands) Turnover and Other Income Total Expenditure 4 9 3 0 7 9 0 4 8 2 2 9 1 7 + Profit/Loss Before Tax 1 0 7 8 7 3 + Profit / Loss After Tax 6 5 8 1 2 (Please tick appropriate box + for Profit. . 0 0 (Please tick appropriate box + for Earnings. 2010 SBIGFL Sangeet Shukla Executive Vice Chairman & CEO Amita Joshi Company Secretary Annual Report 2009-2010 56 . Thousands) Total Liabilities Total Assets 3 1 6 3 6 5 5 3 3 1 6 3 6 5 5 3 Reserves and Surplus 4 2 0 9 1 0 7 Unsecured Loans 2 5 6 6 6 0 9 8 Investments 1 8 9 3 6 0 Deferred Tax Asset 4 3 4 5 3 3 Accumulated Losses N I L Sources of Funds Paid-Up Capital 1 5 4 2 6 0 4 Secured Loans N I L Application of Funds Net Fixed Assets 1 3 0 3 5 7 Net Current Assets 3 0 6 6 3 5 5 9 Miscellaneous Expenditure N I L IV Performance of Company (Amount in Rs. 3 8 0 0 .SBI Global Factors Ltd. U 6 5 9 2 9 M H 2 0 0 1 P T C 1 3 1 2 0 3 1 1 0 3 1 0 State Code Balance Sheet Date II 3 1 Capital Raised during the Year (Amount in Rs.for Loss) + . of India Balance Sheet Abstract and Company’s General Business Profile I Registration Details Registration No. SBI GLOBAL FACTORS LIMITED Formerly Known as GLOBAL TRADE FINANCE LIMITED Additional information pursuant to Part IV of Schedule VI to the Companies Act.

Ernakulam . Ellis bridge. New Delhi . Tel: 020 25536777 Fax: 020 25536700 Ludhiana BXXXI-14627.380 006 Tel: + 91-79-4006 8501/ 02/03 Fax: +91-79-4006 8504 Bangalore S 821/822. 8/732 Avanashi Road. Chandigarh .700 017 Tel: +91-33-2289 6366 / 67 / 68 Fax: +91-33-2289 6383 New Delhi 906-907 Narain Manzil.580 029 Tel: +91-836 .Hyderabad . Indore 452 003 Tel: 0731 4280025 Fax: 0731 4280023 Satellite Offices Chandigarh SCO 51-52. Narayana Towers.30440300 Fax: +91-22-6694 6098/99 Coimbatore 3rd Floor. 8/1/2 Loudon Street. The Metropolitan.103. Sakar II. YN Road. T B Revenkar Comforts. Jangli Maharaj Rd. Nandanam. 47 Dickenson Road.Coimbatore . Diamond Park Extension.560 042 Tel: +91-80-30569749 Fax: +91-80-40923761/25583619 Chennai 2nd Floor. Near Court Circle. Karumuthu Centre. Banjara Hills. Silver Square.530 016 Tel: +91-891 . C-18.641 018 Tel: +91-422 – 2222001 Fax: +91-422 – 2222279 Regional Offices Ahmedabad 401. chamber Towers. Pune .Road # 1. Gandhi Nagar.411 004.2716179/80 Fax: +91-891 – 2716178 Pune Office No. Mumbai . Visakhapatnam . Bandra (E).Travelers Bunglow Road. Road.2353423/25 Fax: +91-836 – 2353424 Jaipur 1st Floor.160 018 Tel: +91-172-4668752 Fax: +91-172-4668751 SBIGFL 57 Annual Report 2009-2010 .500 034 Tel: +91-40-3064 8460/61 Fax: +91-40-3064 8466 Kolkata Surabhi Merlin. Barakhamba Road. 8th Floor Manipal Centre.682 035 Tel: +91-484-2378431/32 Fax: +91-484-2378430 Visakhapatnam Ground Floor. Chicago Plaza. Sector 8C. 4th Floor.T.110 001 Tel: +91-11-4160 8581/82/83 Fax: +91-11-4160 8580 Hubli Ground Floor.Bhagwan Das Road.600 035 Tel: +91-44-2434 1201/02/03 Fax: +91-44-2434 1204 Hyderabad S-2. Bangalore . Kolkata . Near Dholewal Bridge. Rajaji Road.. C-Scheme. “Renaissance” 1277. Beside Trinetra Supermarket. ANR Centre. Starlit Towers. Hubli . Madhya Marg. Main Road. Railway New Colony.634-Anna Salai. 43-9-16/13.400 051 Tel: +91-22. G. Chennai . Ludhiana-141 003 Tel: 0161-2545626 Fax: 0161-2544426 Indore LG-1&2. Ahmedabad . Registered Office Mumbai 6th Floor. 1st Floor. Bandra-Kurla Complex.302 001 Tel: +91-141-4002178 / 79 / 80 Fax: +91-141-4002170 Kochi 41/418 E. Connaught Place. Jaipur .SBI Global Factors Ltd.

Share MSMEs SBIGFL’ Accounts Share of MSMEs in number of SBIGFL’s Client Accounts as on March 31. 2010 MSME Non-MSME 43% 57% SBIGFL’ Share SBIGFL’s International Factoring Market Share SBIGFL Competitors 30% 70% According to FCI figures published for CY 2009 SBIGFL’ Share SBIGFL’s Domestic Factoring Market Share SBIGFL Competitors 20 % 80 % According to FCI figures published for CY 2009 SBIGFL Annual Report 2009-2010 58 .SBI Global Factors Ltd.