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Directors Report of TCI Finance Ltd.

Mar 31, 2017

DIRECTORSâ REPORT

Dear Members,

The directors take pleasure in presenting the 43^rd Annual Report of the Company along with the Audited Accounts for the year ended March 31, 2017.

FINANCIAL HIGHLIGHTS (Standalone)

(Rs, in Lakhs)

Particulars	As at March 31, 2017	As at March 31, 2016
Income	1409.54	1146.31
Profit/(loss) before Interest, Depreciation & Taxation	1285.09	1035.64
Financial Charges	855.57	803.92
Depreciation	2.77	2.91
Profit/(Loss) before tax	426.75	228.81
Exceptional Items	--	--
Provision for tax:
Current Tax	68.42	32.00
Deferred Tax	(4.25)	(1.33)
Tax relating to earlier years	2.18	--
Profit/(Loss) after tax	360.40	198.14
Balance brought forward from previous year	1917.91	1759.40
Transferred to Reserve Fund	72.08	39.63
Balance Carried forward	2206.23	1917.91

DIVIDEND

Your Directors have not recommended payment of dividend for the financial year ended March 31 2017 since it is proposed to retain the same in the business.

FIXED DEPOSITS

The Company has not accepted any deposits during the year under review and it continues to be a Non-deposit and Non Banking Financial Company in conformity with the guidelines of the Reserve Bank of India and Companies (Acceptance of Deposits) Rules, 1975.

OPERATIONAL PERFORMANCE REVIEW

During the year under review, your Company achieved a turnover of Rs, 1409.54 lakhs as against Rs, 1146.31 lakhs in the previous year. The profit before tax stands at Rs, 426.75 lakhs as against Rs, 228.81 lakhs in the previous year.

SUBSIDIARY (ITAG BUSINESS SOLUTION)

The wholly owned subsidiary of the Company M/s. ITAG Business Solutions Ltd. is into the core business of Knowledge Process Outsourcing (KPO) and the consolidated financials forms part of this annual report.

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd is Rs, 144.36 lakhs as against Rs, 142.71 lakhs in the previous year. Profit before tax stood at Rs, 4.14 lakhs as against loss of Rs, (4.76) lakhs in the previous year. A statement pursuant to Section 129 of the Companies Act, 2013 related to the accounts of the subsidiary forms part of this Annual Report.

Policy for determining material subsidiaries of the Company is available on the website of the Company http://www.tcifl.in/ pdf/Policyonmaterialsubsidiaries.pdf

RESERVE

As per section 45IC of RBI Act 1934, the Company has transferred Rs, 72.08 Lakhs to reserve fund i.e 20% of its net profit. CONSOLIDATED FINANCIAL STATEMENTS (CFS)

In accordance with the Companies Act, 2013 (âthe Actâ) and Accounting Standard (AS)- 21, Consolidated Financial Statements is provided in the Annual Report. The CFS should therefore be read in conjunction with the directors'' reports, financial notes, cash flow statements and the individual auditor reports of the subsidiary.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the provisions of Section 152 of the Companies Act, 2013, Ms. Meera Madhusudan Singh retire by rotation and being eligible, has offered herself for re-appointment.

The brief profile of the director who is to be re-appointed form part of the notes and explanatory statement to the notice of the ensuing Annual General Meeting.

During the year under review there is no change in Key Managerial Personnel of the Company.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

i) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2016-17, percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the financial year 2016-17 are as under:

Non-Executive Directors (Refer Note-1)	Ratio to median remuneration	% increase in remuneration in the financial year
Mr. Hemant Kaul, Chairman	-	-
Mr. Mahendra Agarwal,Promoter & Director	-	-
Mr. R S Agarwala,Director	-	-
Mr. S M Jalan, Independent Director	-	-
Mr. D R Agarwal, Director	-	-
Ms. Meera Madhusudan Singh, Director	-	-
Executive Directors/ KMP
Mr. Ramesh Sivaraman-Manager-Chief Executive	2.34:1	10%
Ms. Lakshmi Sharma, Company Secretary	0.37:1	6%

Note 1: The Company had paid only sitting fees to the Directors. Apart from sitting fees there is no other remuneration paid to the Non-Executive Directors. Therefore the ratio to median remuneration is negligible.

ii) the percentage increase in the median remuneration of employees in the financial year: 9.5%

iii) the number of permanent employees on the rolls of company: 4

iv) Average percentage increase made in the salaries of employees other than the managerial personnel in the last financial year i.e. 2016-17 was 10 % whereas the increase in the managerial remuneration for the same financial year was 10%.

v It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial Personnel and other Employees.

The particulars of employees required under section 197(12) of the Companies Act, 2013 read with Rules 5 (2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not furnished as there is no employee in receipt of remuneration more than the prescribed limit.

As per ministry of corporate affairs notification no: G.S.R. 646(E) regarding amendment of the companies (Appointment and Remuneration of Managerial Personnel) in rule 5 sub rule (2), the statement containing particulars of top ten employees in terms of remuneration drawn as required under Section 197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is given below:

a) Name of the employee;	Ramesh Sivaraman	Laxmi Narain kumawat	Dinesh Goud	Lakshmi Sharma
b) Designation of the employee;	Manager-Chief Executive	Assistant General Manager	Manager	Company Secretary
c) Remuneration received; (Rs, in lakhs)	33.66	20.42	12.50	5.60
d) Nature of employment, whether contractual or otherwise;	Permanent	Permanent	Permanent	Permanent
e) Qualification an experience of the employee;	CA	MCOM	LLM	CS
f) Date of commencement of employment;	22-Oct-96	01-Sep-78	31-Mar-06	01-Dec-12
g) Age of such employee;	49	57	39	28
h) Last employment held by such employee before joining the company;	Manager, Asia Pacefic Investment Ltd.	Manager Gati Ltd.	Own Practice	Assistant Manager-Gati KWE
i) % of equity shares held by the employee in the company;	0	0.07	Nil	Nil
j) Whether any such employee is a relative of any director, and if so, name of such director or manager	No	No	No	No

DECLARATION FROM INDEPENDENT DIRECTORS

The Company has received necessary declaration from Mr. Hemant Kaul and Mr. S M Jalan Independent Director of the Company under Section 149(7) of the Companies Act, 2013 that the Independent Directors of the Company meet with the criteria of their Independence laid down in Section 149(6).

REMUNERATION POLICY

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration.

The Remuneration Policy is stated in the Corporate Governance Report.

BOARD EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and other Committees. The manner in which the evaluation has been carried out has been explained hereunder.

The evaluations based on questionnaire was prepared which assessed the performance of the Board on select parameters related to roles, responsibilities and obligations of the Board and functioning of the Committees including assessing the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties. The evaluation criteria for the Directors were based on their participation, contribution and offering guidance to and understanding of the areas which are relevant to them in their capacity as members of the Board.

PARTICULARS OF LOANS, GUARANTEES and INVESTMENTS:

The company being a NBFC therefore section 186 of Companies Act, 2013 is exempted therefore details of Loans, Guarantees and Investments are given in the notes to the Financial Statement.

CORPORATE SOCIAL RESPONSIBILITY

During the year, your Company decided to install the solar panel 6 KWp ( 2 nos of 3 KWp) Solar PV plant at two Government School at Hyderabad as a part of its CSR activities. Further, your company proposed to spend Rs.9 lakhs for the aforesaid activity. The Company has placed order for installation of solar panel. The expenses would be accounted after the installation of the solar panel and on payment in FY 2017-18. Details of activity under CSR is given in Annexure-A.

RELATED PARTY TRANSACTION

The main business of the Company is financing activities and all loans granted to related party (if any) are in the ordinary course of business. All related party transactions that were entered into during the financial year were on an armâs length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Accordingly Form AOC-2 is not applicable to the Company.

All Related Party Transactions are placed before the Audit Committee as also the Board for approval. Transactions with related parties entered by the Company in the normal course of business are periodically placed before the Audit Committee for its approval.

Your Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to regulate transactions between the Company and its Related Parties, in compliance with the applicable provisions of the Companies Act 2013, the Rules there under and the SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015. This Policy was considered and approved by the Board has been uploaded on the website at: http://www.tcifl.in/ pdf/RelatedPartyTransactionPolicy.pdf

MEETINGS

During the year Four Board Meetings and Four Audit Committee Meetings were convened and held. The details of the meeting along with the attendance of the director are given in the Corporate Governance Report. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013.

Board Committees

Detailed composition of the mandatory Board committees namely Audit Committee, Nomination and Remuneration Committee, CSR Committee, Stakeholders Relationship Committee, number of meetings held during the year under review and other related details are set out in the Corporate Governance Report which forms a part of this Report.

There have been no situations where the Board has not accepted any recommendation of the Audit Committee.

VIGIL MECHANISM

The Company has Vigil Mechanism policy with a view to provide a mechanism for employees of the Company to approach the Ethics Counselor / Chairman of the Audit Committee of the Company. The Vigil Mechanism Policy has been uploaded on the website of the Company at: http://www.tcifl.in/pdf/VigilMechanismPolicy.pdf. It is affirmed that no personnel of the Company has been denied access to the Audit Committee.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

Pursuant to SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015 the Company shall familiarize the Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc., through various programmes.

Accordingly, the Company has arranged a technical session on February 7, 2017 to familiarize the Independent Directors about their roles, responsibilities and duties as Independent Directors. The details of the familiarization programme has been disclosed on the website of the Company at: http://www.tcifl.in/pdf/ProgrammesforIDs07022017.pdf

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 134 (5) of the Companies Act, 2013 your Directors'' confirm the following:

V that in the preparation of the Annual Accounts for the year ended March 31, 2017, the applicable accounting standards have been followed along with proper explanation relating to material departures;

V that the directors have selected such accounting policies and applied them consistently and made judgment 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.

V that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

V that the directors have prepared the annual accounts on a ''going concern'' basis.

V that the directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

V that the systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively

ACCOUNTS OF SUBSIDIARY

Copies of these annual accounts and related information will be made available on the Companyâs website at www.tcifl.in and also on request. The annual accounts of the subsidiary company will be made available at the registered office of the company and also at the venue during the Annual General Meeting.

LISTING

The Companyâs shares are traded in the dematerialized form with nation-wide terminals on both Bombay Stock Exchange and National Stock Exchange. The particulars of Shareholding Pattern, Distribution of Shareholding and Share prices are mentioned separately in the Report on Corporate Governance.

Internal Financial Controls

Your Company has established and maintained a framework of internal financial controls and compliance systems. Based on the same and the work performed by the internal auditors, statutory auditors and external agencies and the reviews performed by management team and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Company''s Internal Financial Controls were adequate and effective during the financial year 2016-17.

The Board of Directors, to the best of their knowledge and ability, confirm that:

Your Company has laid down internal financial controls to be followed and that such internal financial controls are adequate and were generally operating effectively; and

Your Company has devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

a) Statutory Auditors

The Statutory Auditors of the Company M/s. Bhaskara Rao & Co, Chartered Accountants, Hyderabad hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Company has received letter to the effect that the re-appointment, if made, would be within the prescribed limits under Section 141 (3)(g) of the Companies Act, 2013 and that they are not disqualified for re-appointment. As required under SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015, the auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.

Pursuant to Companies Act, 2013, the Company has appointed the statutory auditors to hold office from the conclusion of the 40th Annual General Meeting till the conclusion of the 45th Annual General Meeting, subject to ratification at the every Annual General Meeting of the Company.

During the year under review there is no qualifications/observations raised by the auditors.

b) Secretarial Audit

In Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. dvm gopal & associates, a firm of Practicing Company Secretaries to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit is annexed as Annexure - B.

Pursuant to the observation of the secretarial auditor in his report, the Company is in the process of selection and appointment of CFO.

EXTRACT OF ANNUAL RETURN

The details forming part of Annual Return in form MGT-9 is annexed as Annexure-C CORPORATE GOVERNANCE

The Company has complied with the provisions pertaining to Corporate Governance as per the SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015requirements offish the Stock Exchanges and necessary disclosures have been made in this regard in the Report on Corporate Governance is annexed as Annexure-D along with a certificate from a Practicing Company Secretary confirming compliance of the same.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO:

As the Company is not engaged in the manufacturing activity, the prescribed information regarding compliance of rules relating to conservation of Energy and Technology absorption pursuant to Section 134 (3) (m) of the Companies Act, 2013, read with Rule - 8 (3) of the Companies (Accounts) Rules, 2014 is not provided.

The Company does not have any Foreign Exchange Earnings and outgo in the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

MDA is provided as a separate section in the annual report.

GENERAL

i. During the year under review there is no change in nature of business.

ii. There is no material changes and commitment affecting the financial position of the Company between the end of financial year and the date of the report.

iii. During the under review no significant or material orders were passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future

iv. During the year under review there were no cases filled pursuant to the sexual Harassment of women at workplace (prevention, Prohibition and Redressal )Act, 2013

ACKNOWLEDGEMENT

Your Directors wish to express their sincere appreciation for the support and cooperation, which the Company continues to receive from its clients, Banks, Government Authorities, Financial Institutions and associates and are grateful to the shareholders for their continued support to the Company. Your Directors place on record their appreciation for the contributions made and the efforts put in by the management team and employees of the Company at all levels.

By Order of the Board

For TCI FINANCE LIMITED

Hyderabad Hemant Kaul

May 2, 2017 Chairman

DIN:00551528

Mar 31, 2016

Dear Members,

The directors take pleasure in presenting the 42^nd Annual Report of the Company along with the Audited Accounts for the year ended March 31, 2016.

FINANCIAL HIGHLIGHTS (Standalone)

(Rs. in Lakhs)

STANDALONE

Particulars	As at March 31, 2016	As at March 31, 2015
Income	1146.31	1372.67
Profit/(loss) before Interest, Depreciation & Taxation	1035.64	1312.39
Financial Charges	803.92	493.58
Depreciation	2.91	1.21
Profit/(Loss) before tax	228.81	817.59
Exceptional Items	--	-
Provision for tax:
Current Tax	32.00	134.97
Deferred Tax	(1.33)	4.68
	--	--
Profit/(Loss) after tax	198.14	677.93
Balance brought forward from previous year	1759.40	1217.35
Transferred to Reserve Fund	39.63	135.58
Balance Carried forward	1917.91	1759.40

DIVIDEND

Your Directors have not recommended payment of dividend for the financial year ended March 31, 2016 since it is proposed to retain the same in the business.

FIXED DEPOSITS

OPERATIONAL PERFORMANCE REEW

During the year under review, your Company achieved a turnover of Rs. 1146.31lakhs as against Rs. 1372.67 lakhs in the previous year. The profit before tax stands at Rs. 228.81 lakhs as against Rs. 817.59 lakhs in the previous year.

SUBSIDIARY (ITAG BUSINESS SOLUTION)

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd is Rs. 142.71 lakhs as against Rs. 128.26 lakhs in the previous year. Profit before tax stood at Rs. (4.76) lakhs as against Rs. 3.88 lakhs in the previous year. A statement pursuant to Section 129 of the Companies Act, 2013 related to the accounts of the subsidiary forms part of this Annual Report.

Policy for determining material subsidiaries of the Company is available on the website of the Company http://www.tcifl.in/ pdf/Policyonmaterialsubsidiaries.pdf

RESERVE

As per section 45IC of RBI Act 1934, the Company has transferred Rs39.63 Lakhs in reserve fund i.e aggregating of 20% of its net profit.

CONSOLIDATED FINANCIAL STATEMENTS (CFS)

In accordance with the Companies Act, 2013 ("the Act") and Accounting Standard (AS) - 21, Consolidated Financial Statements is provided in the Annual Report. The CFS should therefore be read in conjunction with the directors'' reports, financial notes, cash flow statements and the individual auditor report of the subsidiary.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

In accordance with the provisions of Section 152 of the Companies Act, 2013, Mr. Radhe Shyam Agarwala retire by rotation and being eligible, has offered himself for re-appointment.

The brief profile of the director who is to be re-appointed forms part of the notes and explanatory statement to the notice of the ensuing Annual General Meeting.

During the year under review there is no change in Key Managerial Personnel of the Company.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

i) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2015-16, percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the financial year 2015-16 are as under:

Non-Executive Directors (Refer Note-1)	Ratio to median remuneration	% increase in remuneration in the financial year
Mr. Hemant Kaul, Chairman	-	-
Mr. Mahendra Agarwal,Promoter & Director	-	-
Mr. R S Agarwala,Director	-	-
Mr. S M Jalan, Independent Director	-	-
Mr. D R Agarwal, Director	-	-
Ms. Meera Madhusudan Singh, Director	-	-
Executive Directors/ KMP
Mr. Ramesh Si-araman, Manager-Chief Executive	2.33:1	10.10%
Ms. Lakshmi Sharma, Company Secretary	0.38:1	7.10%

ii) The percentage increase in the median remuneration of employees in the financial year: 15%

iii) The number of permanent employees on the rolls of company: 4

iv) The explanation on the relationship between average increase in remuneration and company performance

The Profit before Tax for the financial year ended March 31, 2016 decreased by 72% whereas the increase in median remuneration was 15%.

V) Comparison of the remuneration of the Key Managerial Personnel against the performance of the company

The total remuneration of Key Managerial Personnel increased by 10% from Rs. 43.41 Lakhs in 2015-16 to Rs. 39.59 Lakhs in 2014-15 whereas the Profit before Tax decreased by 72% to Rs. 2.29 Crore in 2015-16 (Rs. 8.17 Crore in 2014-15).

vi) variations in the market capitalization of the company, price earnings ratio as at the closing date of the current financial year and pre(ious financial year and percentage increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer

The Market Capitalization of the Company as on 31^st March, 2016 was Rs. 2497 Lakhs as compared to Rs. 4267.23 Lakhs as on 31^st March, 2015. The price earnings ratio of the Company was 12.59 as at 31^st March, 2016 and was 6.29 as at 31^st March, 2015. The closing share price of the Company at NSE Limited on 31^st March, 2016 being Rs. 19.40 per equity share of face value of Rs. 10/- each has reduced 0.65 times since the last right issue made in the year 1995 (Offer Price was Rs. 30/- per equity share of face value of Rs. 10/- each).

vii) Average percentage increase made in the salaries of employees other than the managerial personnel in the last financial year i.e. 2015v16 was13 % whereas the increase in the managerial remuneration for the same financial year was 10.10%.

viii) Comparison of remuneration of each KMP against the performance of the company

Particulars	Mr. Ramesh Sivaraman, Manager-Chief Executive	Ms. Lakshmi Sharma, Company Secretary
Remuneration in financial year 2016 (Rs. in Lakhs)	37.26	6.15
ReVenue (Rs.in Lakhs)	1146.30	1146.30
Remuneration as % of ReVenue	3.25	0.54
Profit Before Tax (PBT) (Rs. in Lakhs)	228.81	228.81
Remuneration (as % of PBT)	16.28	2.69

ix) The key parameters for the variable component of remuneration availed by the key managerial personnel and other employees, recommended by the Nomination and Remuneration Committee and approved by the Board of Directors.

x) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year - Not Applicable;

xi) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial Personnel and other Employees.

DECLARATION FROM INDEPENDENT DIRECTORS

REMUNERATION POLICY

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration.

The Remuneration Policy is stated in the Corporate Governance Report.

BOARD EVALUATION

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statement.

CORPORATE SOCIAL RESPONSIBILITY

During the year, your Company decided to provide Desks / Benches to the school students at Government High School, Miyapur, Hyderabad as a part of its CSR activities. Further, your company proposed to spend Rs. 8 lakhs for the aforesaid activity. The Company has placed order for procuring the Desks/Benches. The expenses would be accounted after the receipt of the Desks/Benches on payment in it FY 2016v17. Details of activity under CSR are given in Annexure - A.

RELATED PARTY TRANSACTION

The main business of the Company is financing activities and all loans granted to related party (if any) are in the ordinary course of business. All related party transactions that were entered into during the financial year were on an arm''s length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. Accordingly Form AOC-2 is not applicable to the Company.

MEETINGS

Board Committees

There have been no situations where the Board has not accepted any recommendation of the Audit Committee.

(VIGIL MECHANISM

The Company has Vigil Mechanism policy with a view to provide a mechanism for employees of the Company to approach the Ethics Counselor / Chairman of the Audit Committee of the Company. The Vigil Mechanism Policy has been uploaded on the website of the Company at: http://www.tcifl.in/pdf/(igilMechanismPolicy.pdf. It is affirmed that no personnel of the Company has been denied access to the Audit Committee.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

Accordingly, the Company has arranged a technical session on January 21, 2016 to familiarize the Independent Directors about their roles, responsibilities and duties as Independent Directors. The details of the familiarization programme has been disclosed on the website of the Company at: http://tcifl.in/pdf/ProgrammesforIDs21012016.pdf

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 134 (5) of the Companies Act, 2013 your Directors'' confirm the following:

- that in the preparation of the Annual Accounts for the year ended March 31, 2016, the applicable accounting standards have been followed along with proper explanation relating to material departures;

- that the directors have selected such accounting policies and applied them consistently and made judgment and estimates that are reasonable and prudent so as to give a true and fair (iew 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.

- that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

- That the directors have prepared the annual accounts on a ''going concern'' basis.

- That the directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

- That the systems to ensure compliance with the provisions of all applicable laws and those systems were adequate and operating effectively

ACCOUNTS OF SUBSIDIARY

Copies of these annual accounts and related information will be made available on the Company''s website at www.tcifl.in and also on request. The annual accounts of the subsidiary company will be made available at the registered office of the company and also at the venue during the Annual General Meeting.

LISTING

The Company''s shares are traded in the dematerialized form with nation-wide terminals on both Bombay Stock Exchange and National Stock Exchange. The particulars of Shareholding Pattern, Distribution of Shareholding and Share prices are mentioned separately in the Report on Corporate Governance.

Internal Financial Controls

Your Company has established and maintained a framework of internal financial controls and compliance systems. Based on the same and the work performed by the internal auditors, statutory auditors and external agencies and their views performed by management team and the relevant Board Committees, including the Audit Committee, the Board is of the opinion that the Company''s Internal Financial Controls were adequate and effective during the financial year 2015-16.

The Board of Directors, to the best of their knowledge and ability, confirm that:

Your Company has laid down internal financial controls to be followed and that such internal financial controls are adequate and were generally operating effectively; and

Your Company has devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

AUDITORS

a) Statutory Auditors

b) Secretarial Audit

Annexure - B.

c) Internal Auditor

Internal auditor submits his report to the audit committee every quarter.

EXTRACT OF ANNUAL RETURN

The details forming part of Annual Return in form MGT-9 is annexed as

Annexure-C CORPORATE GOVERNANCE

The Company has complied with the provisions pertaining to Corporate Governance as per the SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015 requirements of the Stock Exchanges and necessary disclosures have been made in this regard in the Report on Corporate Governance is annexed as Annexure-D along with a certificate from a Practicing Company Secretary confirming compliance of the same.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO:

The Company does not have any Foreign Exchange Earnings and outgo in the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

MDA is provided as a separate section in the annual report.

GENERAL

i. During the year under review there is no change in nature of business.

ii. There is no material changes and commitment affecting the financial position of the Company between the end of financial year and the date of the report.

iii. During the year under review no significant or material orders were passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future

iv. During the year under review there were no cases filed pursuant to the Sexual Harassment of women at workplace (prevention, Prohibition and Redressal )Act, 2013

ACKNOWLEDGEMENT

By Order of the Board For

TCI FINANCE LIMITED

Hyderabad Hemant Kaul

April 28, 2016 Chairman

DIN:00551528

Mar 31, 2015

Dear Members,

The directors take pleasure in presenting the 41st Annual Report of the Company along with the Audited Accounts for the year ended March 31,2015.

FINANCIAL HIGHLIGHTS (Rs. in Lakhs) STANDALONE

Particulars As at As at March 31,2015 March 31,2014

Income 1372.67 1605.09

Profit/(loss) before Interest, Depreciation & Taxation 1312.39 1492.37

Financial Charges 493.58 788.99

Depreciation 1.21 1.47

Profit/(Loss) before tax 817.59 701.91

Exceptional Items - -

Provision for tax:

Current Tax 134.97 143.00

Deferred Tax 4.68 -

Income Tax relating to previous year - -

Profit/(Loss) after tax 677.93 558.91

Balance brought forward from previous year 1217.35 770.22

Transferred to Reserve Fund 135.58 111.78

Balance Carried forward 1759.40 1217.35

DIVIDEND

Your Directors have not recommended payment of dividend for the financial year ended 31st March 2015 since it is proposed to retain the same in the business.

FIXED DEPOSITS

The Company has not accepted any deposits during the year under review and it continues to be a Non-deposit taking Non Banking Financial Company in conformity the guidelines of the Reserve Bank of India and Companies (Acceptance of Deposits) Rules, 1975.

REVIEW OF OPERATIONS

During the year under review, your Company achieved a turnover of Rs. 1372.67 lakhs as against Rs 1605.09 lakhs in the previous year. The profit before tax stands at Rs.817.59 lakhs as against Rs. 701.91 lakhs in the previous year.

RESERVE FUND

As per section 45IC of RBI Act 1934, the Company has transferred Rs.135.58 Lakhs in reserve fund i.e aggregating of 20% of its net profit

SUBSIDIARY (ITAG BUSINESS SOLUTION)

The wholly owned subsidiary of the Company M/s. ITAG Business Solutions Ltd. is into the core business of Knowledge Process Outsourcing (KPO) and the consolidated financials form part of this annual report.

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd is Rs. 128.26 lakhs as against Rs 464.15 lakhs in the previous year. Profit before tax stood at Rs.3.88 lakhs as against Rs. 9.98 lakhs in the previous year. A statement pursuant to Section 129 of the Companies Act, 2013 related to the accounts of the subsidiary forms part of this Annual Report.

Policy for determining material subsidiaries of the Company is available on the website of the Company http://www.tcifl.in/ pdf/Policyonmaterialsubsidiaries.pdf.

CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Companies Act, 2013 ("the Act") and Accounting Standard (AS) - 21 on Consolidated Financial Statements read with AS - 23 on Accounting for Investments in Associates and AS - 27 on Financial Reporting of Interests in Joint Ventures, the audited consolidated financial statement is provided in the Annual Report.

DIRECTORS

Mr. O Swaminatha Reddy Chairman had resigned from the Board on September 25, 2014. The Board places on record its profound appreciation for the contributions made by Mr. Reddy during his tenure as Chairman.

Mr. Hemant Kaul was appointed as Additional Director in the category of Independent Director and designated Chairman of the Company w.e.f. January 23, 2015. In accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company he holds office till the ensuing AGM of the Company and being eligible offers himself for appointment as Independent Director.

Ms. Meera Madhusudan Singh was appointed Additional Director of the Company w.e.f. March 26, 2015 In accordance with the provisions of the Companies Act, 2013 and Articles of Association of the Company she holds office till the ensuing AGM of the Company and being eligible offers herself for appointment as Director.

In accordance with the provisions of Section 152 of the Companies Act, 2013, Mr. Mahendra Agarwal retires by rotation and being eligible, has offered himself for re-appointment.

Mr. V T Pawar, Director expired on May 26, 2014. The Board places on record its profound appriciation for the contribution made by him during his tenure.

The brief profiles of the directors who are to be appointed / re-appointed form part of the notes and explanatory statement to the notice of the ensuing Annual General Meeting.

KEY MANAGERIAL PERSONNEL

Ms. T Deepthi (Membership no: A23382) resigned as Company Secretary on March 31,2014.

Ms. Lakshmi Sharma (Membership no: A32617) was appointed as Company Secretary w.e.f April 1,2014.

Mr. Ramesh Sivaraman is the Manager-Chief Executive of the Company. He was re-appointed by the shareholders as Manager-Chief Executive of the company for a period of three years effective from July 1,2014.

PARTICULARS OF EMPLOYEES AND RELATED DISCLOSURES

The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

i) The ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2014-15, percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the financial year 2014-15, and the comparison of remuneration of each Key Managerial Personnel (KMP) against the performance of the Company are as under:

Non-Executive Directors Ratio to % increase in Comparison of the (Refer Note-1) median remuneration Remuneration remuneration in the ofthe KMP against financial yearthe performance of the Company

Mr. Hemant Kaul, Chairman - - -

Mr. Mahendra Agarwal, Promoter & Director - - -

Mr. R S Agarwala,Director - - -

Mr. S M Jalan, Independent Director - - -

Mr. D R Agarwal, Director - - -

Ms. Meera Madhusudan Singh, Director - - -

Mr. O S Reddy, Director - - -

Note 1: The Company had paid only sitting fees to the Directors. Apart from sitting fees there is no other remuneration paid to the Non-Executive Directors. Therefore the ratio to median remuneration is negligible.

Executive Directors/ KMP

Mr. Ramesh Sivaraman-Manager-Chief Executive 1.87:1 8.56

Ms. Lakshmi Sharma, Company Secretary 0.34:1 NA*

Executive Directors/ KMP Profit before tax increased Mr. Ramesh Sivaraman-Manager-Chief by 16.48% and Profit after Executive tax Increased by 21.29% in Ms. Lakshmi Sharma, Company financial year 2014-15 Secretary

*Since the Company Secretary was appointed w.e.f April 1,2014 hence increase in remuneration is not applicable.

ii) The percentage increase in the median remuneration of employees in the financial year: 13.47%

iii) The number of permanent employees on the rolls of company: 4

iv) The explanation on the relationship between average increase in remuneration and company performance

The Profit before Tax for the financial year ended March 31,2015 increased by 16.48% whereas the increase in median remuneration was 13.47%.

x) Comparison of the remuneration of the Key Managerial Personnel against the performance of the company

The total remuneration of Key Managerial Personnel increased by 20.68% from Rs. 25.66 Lakhs in 2013-14 to Rs.30.97Lakhs in 2014-15 whereas the Profit before Tax increased by 16.48% to Rs. 8.17 crore in 2014-15 (Rs. 7.02 Crore in 2013-14).

v) Variations in the market capitalisation of the company, price earnings ratio as at the closing date of the current financial year and previous financial year and percentage increase over decrease in the market quotations of the shares of the company in comparison to the rate at which the company came out with the last public offer.

The Market Capitalisation of the Company as on 31st March, 2015 was Rs.4267.23 Lakhs as compared to Rs.2201.19 Lakhs as on 31st March, 2014. The price earnings ratio of the Company was 6.29 as at 31st March, 2015 and was 3.94 as at 31st March, 2014. The closing share price of the Company at NSE Limited on 31st March, 2015 being Rs. 33.15 per equity share of face value of Rs. 10/- each has grown 1.11 times since the public issue made in the year 1995 (Offer Price was Rs. 30/- per equity share of face value of Rs. 10/- each).

vii) Average percentage increase made in the salaries of employees other than the managerial personnel in the last financial year i.e. 2014-15 was 8.09% whereas the increase in the managerial remuneration for the same financial year was 8.56%.

viii) The key parameters for the variable component of remuneration availed by the directors is as per the remuneration policy for directors, key managerial personnel and other employees, recommended by the Nomination and Remuneration Committee and approved by the Board of Directors.

ix) The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year - Not Applicable;

x) It is hereby affirmed that the remuneration paid is as per the Remuneration Policy for Directors, Key Managerial Personnel and other Employees.

The particulars of employees required under section 197(12) of the Companies Act, 2013 read with Rules 5 (2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are not furnished as there is no employee in receipt of remuneration more than the prescribed limit.

DECLARATION FROM INDEPENDENT DIRECTORS

The Company has received declaration from Mr. Hemant Kaul and Mr. S M Jalan Independent Directors of the Company confirming that they meet with the criteria of Independence as prescribed by the Companies Act, 2013 and the Listing Agreement.

REMUNERATION POLICY

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration.

The Remuneration Policy is stated in the Corporate Governance Report.

BOARD EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of the Listing Agreement, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Audit, Nomination & Remuneration and other Committees. The manner in which the evaluation has been carried out has been explained hereunder.

The evaluations is based on questionnaire prepared which assessed the performance of the Board on select parameters related to roles, responsibilities and obligations of the Board and functioning of the Committees including assessing the quality, quantity and timeliness of flow of information between the company management and the Board that is necessary for the Board to effectively and reasonably perform their duties. The evaluation criteria for the Directors was based on their participation, contribution and offering guidance to and understanding of the areas which are relevant to them in their capacity as members of the Board.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS:

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013 are given in the notes to the Financial Statement.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

In terms of section 135 and Schedule VII of the Companies Act, 2013 read with rules made thereunder, the Board of Directors of your Company have constituted a CSR Committee. The Committee comprises of the following Directors.

Sl No Name Designation

1 Mr. S M Jalan Chairman

2 Mr. R S Agarwala Member

3 Dr. D R Agarwal Member

During the year company has undertaken a Special Project in the field of education. The details of activity undertaken by the Company is annexed as Annexure - A.

RELATED PARTY TRANSACTION

The main business of the Company is financing activities, loans granted to related party (if any) are in the ordinary course of business. All related party transactions that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large. All Related Party Transactions are placed before the Audit Committee as also the Board for approval.

Your Board of Directors of the Company has, on the recommendation of the Audit Committee, adopted a policy to regulate transactions between the Company and its Related Parties, in compliance with the applicable provisions of the Companies Act 2013, the Rules thereunder and the Listing Agreement. This Policy was considered and approved by the Board has been uploaded on the website at: http://www.tcifll.in/pdf/RelatedPartyTransactionPolicy.pdf.

MEETINGS

During the year eight Board Meetings were held. For further details, please refer report on Corporate Governance of this Annual Report.

VIGIL MECHANISM

The company has adopted Vigil Mechanism policy with a view to provide a mechanism for directors and employees of the Company to report genuine conerns. The provisions of this policy are in line with the provisions of the Section 177(9) and (10) of the Companies Act , 2013 and the revised Clause 49 of the Listing Agreements with stock exchanges The Policy has been uploaded on the website of the Company at: http://www.tcifl.in/pdf/ VigilMechanismPolicy.pdf.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

Pursuant to Clause 49 of the Listing Agreement the Company shall familiarise the Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc., through various programmes.

Accordingly, the Company has arranged a technical session on December 06, 2014 to familiarize the Independent Directors about their roles, responsibilities and duties as Independent Directors. The details of the familiarisation programme has been disclosed on the website of the Company at: http://www.tcifl.in/pdf/ FamilirazationProgrammeofID.pdf.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134 (5) of the Companies Act, 2013 your Directors' confirm the following:

- that in the preparation of the Annual Accounts for the year ended March 31,2015, the applicable accounting standards have been followed along with proper explanation relating to material departures;

- that the directors have selected such accounting policies and applied them consistently and made judgement 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 of the Company for that period.

- that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

- that the directors have prepared the annual accounts on a 'going concern' basis.

- that the directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

- that the systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively

AUDITORS

a) Statutory Auditors

The Statutory Auditors of the Company M/s. Bhaskara Rao & Co, Chartered Accountants, Hyderabad werea appointed as the statutory auditors of the company at the 40th AGM held on .September 25, 2014 for a period of five (5) years, subject to ratification at every AGM. The Company has received letter to the effect that the appointment, if made, would be within the prescribed limits under Section 141 (3)(g) of the Companies Act, 2013 and that they are not disqualified for appointment. As required under Clause 49 of the Listing Agreement, the auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.

b) Secretarial Audit

In Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s. dvm gopal & associates, a firm of Practising Company Secretaries to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit is annexed as Annexure - B.

The Secretarial Auditor in his report has observed that the minimum two Independent Director requirement under Section 177 of the Companies Act, 2013 have been complied effective from December 31,2014. Consequent to the demise of Mr. V T Pawar, member of the Audit Committee your board had complied with the requirement of Section 177 effective from December 31,2014.

c) Internal Auditor

The Company had appointed internal auditors w.e.f May 7, 2014 to carry out the internal audit functions. The Internal auditor submits a quarterly report to the audit committee.

EXTRACT OF ANNUAL RETURN

The details forming part of Annual Return in form MGT-9 is annexed as Annexure-C CORPORATE GOVERNANCE

The Company has complied with the provisions pertaining to Corporate Governance as per the requirements of Listing Agreement with the Stock Exchanges and necessary disclosures have been made in this regard in the Report on Corporate Governance is annexed as Annexure-D along with a certificate from a Practicing Company Secretary confirming compliance of the same.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO:

As the Company is not engaged in the manufacturing activity, the prescribed information regarding compliance of rules relating to conservation of Energy and Technology absorption pursuant to Section 134 (3) (m) of the Companies Act, 2013, read with Rule - 8 (3) of the Companies (Accounts) Rules, 2014 is not provided.

The Company does not have any Foreign Exchange Earnings and outgo in the year under review.

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

MDA is provided as a separate section in the annual report.

INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

The details in respect of internal financial control and their adequacy are included in the Management Discussion & Analysis, which forms part of this report.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these items during the year under review:

1. Issue of equity shares with differential rights as to dividend, voting or otherwise.

2. Issue of shares (including sweat equity shares) to employees of the Company

4. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company's operations in future

5. During the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

6. No change in nature of business.

7. There were no material changes and commitments affecting the financial position of the Company between the end of financial year (March 31,2015) and the date of the Report (April 29, 2015).

ACKNOWLEDGEMENT

Your Directors wish to express their sincere appreciation for the support and cooperation, which the Company continues to receive from its clients, Banks, Government Authorities, Financial Institutions and associates and are grateful to the shareholders for their continued support to the Company. Your Directors place on record their appreciation for the contributions made and the efforts put in by the management team and employees of the Company at all levels.

By Order of the Board For TCI FINANCE LIMITED

Hyderabad Hemant Kaul April 29, 2015 Chairman DIN:00551528

Mar 31, 2014

Dear Members,

The directors take pleasure in presenting the 40th Annual Report of the Company along with the Audited Accounts for the year ended March 31,2014.

FINANCIAL RESULTS:

(Rsin Lakhs) STANDALONE Particulars As at As at March 31,2014 March 31,2013

Income 1605.09 1001.30

Profit/(loss) before Interest, Depreciation & Taxation 1492.37 913.47

Financial Charges 788.99 849.91

Depreciation 1.47 1.48

Profit/ (Loss) before tax 701.91 62.08

Exceptional Items - -

Provision for tax:

Current Tax 143.00 (2.75)

Deferred Tax - 1.00

Income Tax relating to previous year - (2.75)

Profit/(Loss) after tax 558.91 63.83

Balance brought forward from previous year 770.22 719.16

Transferred to Reserve Fund 111.78 12.76

Balance Carried forward 1217.35 770.22

DIVIDEND

Your Directors have not recommended payment of dividend for the financial year ended March 31,2014 since it is proposed to retain the same in the business.

OPERATIONAL PERFORMANCE REVIEW:

During the year under review, your Company achieved a turnover of Rs. 1605.09 lakhs as against Rs. 1001.30 lakhs in the previous year. The profit before tax stands at Rs. 701.91 lakhs as against Rs. 62.08 lakhs in the previous year.

The wholly owned subsidiary of the Company M/s. ITAG Business Solutions Ltd. is into the core business of Knowledge Process Outsourcing (KPO) and the consolidated financials form part of this annual report.

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd is Rs. 464.15 lakhs as against Rs. 109.91 lakhs in the previous year. Profit before tax stood at Rs. 9.98 lakhs as against Rs. (0.97) lakhs in the previous year. A statement pursuant to Section 212 of the Companies Act, 1956 related to the accounts of the subsidiary forms part of this Annual Report.

SUBSIDIARIES:

A statement pursuant to Sec 212 (e) of the Companies Act, 1956 relating to subsidiary companies is herewith annexed to the Directors Report.

ACCOUNTS OF SUBSIDIARY

The Ministry of Corporate Affairs, New Delhi vide its notification no. 2/2011 dated February 8, 2011 granted subject to fulfillment of certain conditions, general exemption from attaching the annual accounts and other reports of Company''s subsidiaries, as required under section 212 of the Companies Act,1956. Copies of these annual accounts and related information will be made available on the Company''s website at www.tfil.in and also on request. The annual accounts of the subsidiary companies will be made available at the registered office of the company and also at the venue during the Annual General Meeting.

DIRECTORS

The Board expresses its condolence for the demise of Mr. V T Pawar. It extends solicitude, profound appreciation for the contribution made by him during his tenure as a Director.

In accordance with the provisions of Section 152 of the Companies Act, 2013, Dr. D R Agarwal, retires by rotation and being eligible, has offers himself for re-appointment.

Pursuant to the notification of Section 149 and other applicable provisions of the Companies Act, 2013 read with rules thereon and the Clause 49 of the Listing Agreement, all the Independent Directors Mr. O S Reddy and Mr. S M Jalan are proposed to be appointed as Independent Directors for five years effective from the date of ensuing AGM.

The brief profiles of the Directors who are to be appointed / re-appointed form part of the notes and explanatory statement to the notice of the ensuing Annual General Meeting.

LISTING

The Company''s shares are traded in the dematerialized form with nation-wide terminals on both Bombay Stock Exchange and National Stock Exchange. The particulars of Shareholding Pattern, Distribution of Shareholding and Share prices are mentioned separately in the Report on Corporate Governance.

INVESTMENT

During the year your Company has made investment by way of Optional Convertible Debentures in Amritjal Ventures Private Limited.

CAPITAL

There is no change in the capital structure of the Company during the year under review FIXED DEPOSITS

The Company has not accepted any deposits during the year under review and it continues to be a Non-deposit taking Non Banking Financial Company in conformity the guidelines of the Reserve Bank of India and Companies (Acceptance of Deposits) Rules, 1975.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors'' confirm the following:

- that in the preparation of the Annual Accounts for the year ended March 31,2014, the applicable accounting standards have been followed along with proper explanation relating to material departures;

- that the directors have selected such accounting policies and applied them consistently and made judgement 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.

- that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

- that the directors have prepared the annual accounts on a ''going concern'' basis.

AUDITORS AND AUDITORS REPORT:

The Statutory Auditors, M/s. Bhaskara Rao & Co, Chartered Accountants, Hyderabad have expressed their willingness to continue as auditors for the financial year 2014-15.The Board of Directors recommend their appointment for the financial year 2014-15, subject to the approval of the shareholders in the forthcoming Annual General Meeting of the Company.

The Notes to Accounts referred to in the Auditors Report are self explanatory and hence do not require further comments.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO:

As the Company is not engaged in the manufacturing activity, the prescribed information regarding compliance of rules relating to conservation of Energy and Technology absorption pursuant to Section 217 (1) (e) of the Companies Act, 1956, read with Rule -2 of the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 is not provided.

The Company does not have any Foreign Exchange Earnings and outgo in the year under review.

PERSONNEL

The particulars of employees required under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not furnished as there is no employee in receipt of remuneration more than the prescribed limit.

CORPORATE GOVERNANCE

The Company has complied with the provisions pertaining to Corporate Governance as per the requirements of Listing Agreement with the Stock Exchanges and necessary disclosures have been made in this regard in the Report on Corporate Governance attached to this report, along with a certificate from a Practicing Company Secretary confirming compliance of the same.

MANAGEMENT DISCUSSION AND ANALYSIS (MDA)

Management Discussion and Analysis (MDA) as per the requirements of clause 49 of the listing agreement and other applicable provisions is herewith attached as an annexure to the Directors Report.

ACKNOWLEDGEMENT:

Your Directors wish to express their sincere appreciation for the support and cooperation, which the Company continues to receive from its clients, Banks, Government Authorities, Financial Institutions and associates and are grateful to the shareholders for their continued support to the Company. We place on record our appreciation for the contributions made and the efforts put in by the management team and employees of the Company at all levels.

By Order of the Board For TCI FINANCE LIMITED

Secunderabad O. Swaminatha Reddy August 7, 2014 Chairman

Mar 31, 2013

To , Dear Members,

The directors take pleasure in presenting the 39th Annual Report of the Company along with the Audited Accounts for the year ended 31st March 2013.

FINANCIAL RESULTS:

(Rs in Lakhs)

STANDALONE

Particulars As at As at 31st March 2013 31st March 2012

Income 1001.30 1122.34

Profit/(loss) before Interest, Depreciation & Taxation 913.47 1030.09

Financial Charges 849.91 1078.44

Depreciation 1.48 1.41

Profit/Loss before tax 62.08 (49.76)

Exceptional Items -- 100.00

Provision for tax:

Current Tax - 9.35

Deferred Tax 1.01 1.63

Income Tax relating to previous year (2.75) -

Profit/(Loss) after tax 63.83 39.25

Balance brought forward from previous year 719.16 687.75

Transferred to Reserve Fund 12.76 7.85

Balance Carried forward 770.22 719.16

DIVIDEND

Your Directors have not recommended payment of dividend for the financial year ended 31st March 2013 since it is proposed to retain the same in the business.

OPERATIONS REVIEW

Your Directors have not recommended payment of dividend for the financial year ended 31st March 2013 since it is proposed to retain the same in the business.

OPERATIONAL PERFORMANCE REVIEW:

During the year under review, your Company achieved a turnover of Rs. 1001.30 lakhs as against Rs 1122.34 Lakhs in the previous year. The profit/loss before tax stands at Rs. 62.08 Lakhs as against Rs. 50.23 Lakhs in the previous year.

The wholly owned subsidiary of the Company M/s. ITAG Business Solutions Ltd. is into the core business of Knowledge Process Outsourcing (KPO) and the consolidated financials form part of this annual report.

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd is 109.91 lakhs as against Rs 108.30 Lakhs in the previous year. The Company''s profit after tax, net of discounted operations'' revenues stood at Rs.1.02 Lakhs as against a loss of Rs.35.99 Lakhs in the previous year. A statement pursuant to Section 212 of the Companies Act, 1956 related to the accounts of the subsidiary forms part of this Annual Report.

Your directors are pleased to inform that trial runs are under progress for the 110 MW Chuzachen Hydro Power Project being implemented by Gati Infrastructure Pvt. Ltd (GIPL), one of the subsidiaries of Amrit Jal Ventures Pvt. Ltd (AJVPL). The synchronization of unit 1 and unit 2 took place on 20th April 2013 & 19th April 2013 respectively. The project is expected to be commissioned by 3rd week of May 2013. This is the first project among the three being implemented by AJVPL and the first Independent Power project to commence production in the state of Sikkim. The plant is directly connected to the Central Transmission Utility and will be able to deliver power across the country. Once it starts production, it shall be a remarkable milestone in the history of the Company and it will be the third group in India to successfully commission a Hydro power project with a capacity of more than 100MW. The other two projects in the pipeline are the 54 MW Bhasmey Hydro Electric Project (under construction) and 71 MW Sada Mangder Project, both in the state of Sikkim and are being implemented by two separate SPVs. The Company holds 10.19% shareholding in M/s. Amrit Jal Ventures Pvt. Ltd.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Mr. R. S. Agarwala and Mr. S M Jalan, Directors of the Company are liable to retire by rotation and being eligible, offer themselves for re-appointment. The proposal regarding re-appointment is placed for your approval.

Brief profiles of the proposed appointees and other details form part of the Notice to the Annual general Meeting.

LISTING

The Company''s shares are traded in the dematerialized form with nation-wide terminals on both Bombay Stock Exchange and National Stock Exchange. The particulars of Shareholding Pattern, Distribution of Shareholding and Share prices are mentioned separately in the Report on Corporate Governance.

INVESTMENT

The Company has not made any further investments during the year under review.

FIXED DEPOSITS

The Company has not accepted any deposits during the year under review and it continues to be a Non-deposit taking Non Banking Financial Company in conformity the guidelines of the Reserve Bank of India and Companies (Acceptance of Deposits) Rules, 1975.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors'' confirm the following:

v that in the preparation of the Annual Accounts for the year ended March 31, 2013, the applicable accounting standards have been followed along with proper explanation relating to material departures;

v that the directors have selected such accounting policies and applied them consistently and made judgement 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.

v that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

v that the directors have prepared the annual accounts on a ''going concern'' basis

AUDITORS & AUDITORS REPORT

The Statutory Auditors, M/s. M. Bhaskara Rao & Co, Chartered Accountants, Hyderabad have expressed their willingness to continue as auditors for the financial year 2013-14.The Board of Directors recommend their appointment for the financial year 2013-14, subject to the approval of the shareholders in the forthcoming Annual General Meeting of the Company.

The Notes to Accounts referred to in the Auditors Report are self explanatory and hence do not require further comments.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS AND OUTGO:

As the Company is not engaged in the manufacturing activity, the prescribed information regarding compliance of rules relating to conservation of Energy and Technology absorption pursuant to Section 217 (1) (e) of the Companies Act, 1956, read with Rule "" 2 of the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 is not provided.

The Company does not have any Foreign Exchange Earnings and outgo in the year under review.

PERSONNEL

The particulars of employees required under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not furnished as there is no employee in receipt of remuneration more than the prescribed limit.

CORPORATE GOVERNANCE

The Company has complied with the provisions pertaining to Corporate Governance as per the requirements of Listing Agreement with the Stock Exchanges and necessary disclosures have been made in this regard in the Report on Corporate Governance attached to this report, along with a certificate from a Practicing Company Secretary confirming compliance of the same.

ACKNOWLEDGEMENT :

Your Directors wish to express their sincere appreciation for the support and cooperation, which the Company continues to receive from its clients, Banks, Government Authorities, Financial Institutions and associates and are grateful to the shareholders for their continued support to the Company. We place on record our appreciation for the contributions made and the efforts put in by the management team and employees of the Company at all levels.

By Order of the Board

For TCI FINANCE LIMITED

Secunderabad O. Swaminatha Reddy

May 07, 2013 Chairman

Mar 31, 2012

The Director's present the 38th Annual Report together with the Audited Accounts of your Company for the year ended 31st March,2012.

FINANCIAL RESULTS:

( in Lakhs)

STANDALONE

Particulars As on As on

31st March 2012 31st March 2011

Income 1,122.34 1,175.00

Profit/(loss) before Interest, Depreciation & Taxation 1,030.09 1,072.53

Financial Charges 1078.44 1,032.51

Depreciation 1.41 2.13

Profit/Loss before exceptional item and tax (49.76) 37.89

Exceptional Items 100.00 -

Profit before Tax 50.23 37.89 Provision for Tax:

Current Tax 9.35 2.75

Deferred Tax 1.63 (0.57)

Income Tax relating to previous years - 1.70

Profit after Tax 39.25 34.01

Balance brought forward from previous year 687.75 660.55

Transferred to Reserve Fund 7.85 6.81

Balance Carried forward 719.16 687.75

OPERATIONS REVIEW

During the year under review, your Company earned income of Rs.1,122.34 Lakhs as against Rs 1,175.00 Lakhs in the previous year. The profit before tax is Rs. 50.23 Lakhs as against Rs.37.89 Lakhs in the previous year.

CONSOLIDATED FINANCIAL STATEMENTS

The Ministry of Corporate Affairs (MCA) vide General Circular No.2/2011 dated February 8, 2011 has granted general exemption under Section 212(8) of the Companies Act, 1956 to companies from attaching the accounts of their subsidiaries in their annual reports subject to fulfillment of certain conditions prescribed. The Board of Directors of the Company at its meeting held on 8th August, 2012 has given consent for not attaching the Balance Sheet of ITAG Business Solutions Ltd., the wholly owned subsidiary Company. As per the said circular, the Company has presented in this Annual Report, the consolidated financial statements of the holding company and the subsidiary company duly audited by its statutory auditors. The consolidated financial statements are prepared in compliance with the applicable Accounting Standards and the Listing Agreement entered with the Stock Exchanges. A summary of key financials of the Company's subsidiary is also part of the Annual Report. Annual accounts of the subsidiary company are kept for inspection by any investor at the Registered Office of the Company.

SUBSIDIARY COMPANY

The wholly owned subsidiary of the Company, ITAG Business Solutions Ltd. is into the core business of Knowledge Process Outsourcing (KPO) and also had HR outsourcing division. The Company wants to focus on the core business area of Knowledge Process Outsourcing. Therefore, HR Outsourcing Division was discontinued from the current financial year.

ITAG Business Solutions Ltd earned income of Rs.108.30 Lakhs as against Rs 88.70 Lakhs in the previous year. The Loss before tax stood after making provision for bad and doubtful advances of Rs. 33.03 Lakhs at Rs. 47.52 Lakhs as against Rs. 1.20 Lakhs in the previous year.

DIVIDEND

The Board of Directors has decided to retain and plough back the profits into the business of the Company. Thus, no dividend is being recommended for the year.

DIRECTORS

During the year, Mr. Jagdish Prasad Khemka was appointed as an Executive Director of the Company on 9th August, 2011 subject to the approval of the shareholders. The Company made an application to the Central Government for approval of its appointment which is pending subject to the approval of the shareholders. However, in the mean time, he resigned from the services of the Company with effect from 15th May, 2012.

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Mr. O. Swaminatha Reddy and Mr. V.T. Pawar, Directors of the Company retire by rotation and being eligible offer themselves for re-appointment.

INVESTMENT

Your Company has made a total investment of Rs 15 crores as on date in Amritjal Ventures Limited which is engaged in generating power and investing in power generating companies.

RBI GUIDELINES

Your Company is registered as a non- deposit accepting NBFC with Reserve Bank of India (RBI) under section 45-IA of the RBI Act, 1934. The Directors hereby report that the Company did not accept any public deposits during the year.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors' confirm the following:

* that in the preparation of the Annual Accounts for the year ended March 31, 2012, the applicable accounting standards have been followed along with proper explanation relating to material departures.

* that 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.

* that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

* that the directors have prepared the annual accounts on a 'going concern' basis.

AUDITORS:

The Auditor, M/s. S B Billimoria & Co, Chartered Accountants, Hyderabad the retiring auditors have expressed their inability to seek re-appointment as statutory auditors for the financial year 2012-2013.The Board of Directors recommend that M/s M. Bhaskara Rao & Co., Chartered Accountants, Hyderabad be appointed as auditors for the financial year 2012-2013, subject to the approval of the shareholders in the forthcoming Annual General Meeting of the Company.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The Company has no activities relating to Conservation of Energy, Technology Absorption, foreign exchange earnings and outgo.

PARTICULARS OF EMPLOYEES

None of the employee of the Company received remuneration in excess of the limit specified u/s 217(2A) of the Companies Act, 1956.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement, with stock exchanges, a report on Corporate Governance is given in Annexure I. The requisite certificate from Mr. D.C. Agarwal, Practicing Company Secretary, confirming compliance with the conditions of Corporate Governance as stipulated under the aforesaid Clause 49, is annexed hereto as Annexure II and forms part of this annual report.

MANAGEMENT DISCUSSION AND ANALYSIS

The Management's Discussion and analysis report for the year under review is presented in a separate section of this Annual Report.

ACKNOWLEDGEMENT

Your Directors wish to place on record their appreciation for the support and sincere cooperation, which the Company continues to receive from its clients, Banks, Government Authorities, Financial Institutions and associates. The directors are also grateful to the shareholders for their plentiful support to the Company. We place on record our appreciation for the contributions made by the management team and employees of the Company at all levels.

By Order of the Board TCI FINANCE LIMITED

Place : Secunderabad O. Swaminatha Reddy Date : August 08, 2012 Chairman

Mar 31, 2011

Dear Members

The Directors are presenting herewith the 37th Annual Report and the Audited Statement of Accounts for the year ended 31st March 2011.

FINANCIAL RESULTS:

(Rs. in Lakhs) As on As on 31st March 2011 31st March 2010

Income 1,175.00 926.55

Profit/(loss) before Interest, Depreciation & Taxation 1,072.53 841.57

Financial Charges 1,032.51 815.72

Depreciation 2.13 11.62

Profit before tax 37.89 14.23 Provision for tax:

Current Tax 2.75 1.60

Deferred Tax (0.57) 2.40

Income Tax relating to previous year 1.70 46.22

Profit/(Loss) after tax 34.01 (35.99)

Balance brought forward from previous year 660.55 696.55

Transferred to Reserve Fund 6.81 -

Balance Carried forward 687.75 660.55

DIVIDEND

Your Directors have not recommend payment of dividend for the financial year ended 31st March 2011.

REVIEW OF OPERATION

During the year under review, your Company achieved a turnover of Rs.1175.00 Lakhs as against Rs 926.55 Lakhs in the previous year. The profit before tax is Rs.37.89 Lakhs as against Rs.14.23 Lakhs in the previous year.

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd was Rs. 922.55 Lakhs as against Rs 402.97 Lakhs in the previous year. Profit before tax stood at Rs.97.14 Lakhs as against Rs.14.01 Lakhs in the previous year.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Mr. Mahendra Agarwal and Dr D R Agarwal, directors of the Company retire by rotation and being eligible offer themselves for re-appointment.

INVESTMENT

Your Company has made a total investment of Rs 15 Crores as on date in M/s. Amritjal Ventures Limited which is engaged in generating power and investing in power generating companies.

FIXED DEPOSITS

The Company has not accepted any deposits during the year.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors' confirm the following:

- that in the preparation of the Annual Accounts for the year ended March 31, 2011, the applicable accounting standards have been followed along with proper explanation relating to material departures;

- that the directors have selected such accounting policies and applied them consistently and made judgement 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.

- that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

- that the directors have prepared the annual accounts on a 'going concern' basis.

AUDITORS:

The Auditor, M/s. S B Billimoria & Co, Chartered Accountants, hold office until the conclusion of this Annual General Meeting and are eligible for re-appointment.

ENERGY, TECHNOLOGY & FOREIGN EXCHANGE:

The Company has no activities relating to Conservation of Energy or Technology Absorption.

PERSONNEL

The particulars of employees required under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not furnished as there is no employee in receipt of remuneration more than the prescribed limit.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement, a report on Corporate Governance is given in Annexure I.

ACKNOWLEDGEMENT:

Your Directors would like to place on record their grateful appreciation for the wholehearted and sincere co-operation your Company has received from the customers, Banks, Government Authorities, shareholders and Financial Institutions. Your Directors also wish to place on record their deep sense of appreciation for the devoted service of the management team, employees and associates of the Company.

By Order of the Board TCI FINANCE LIMITED

O. Swaminatha Reddy

Chairman

Secunderabad, May 30, 2011

Mar 31, 2010

The Directors are presenting herewith the 36th Annual Report and the Audited Statement of Accounts for the year ended 31st March 2010.

FINANCIAL RESULTS:

(Rs.in Lakhs)

As on As on 31st March 2010 31st March 2009

Income 926.55 691.50

Profit/
Financial Charges 815.72 547.68

Depreciation 11.62 41.61

Profit before tax 14.23 23.03

Provision for tax:

Current Tax 1.60 -

Deferred Tax 2.40 (8.69)

Fringe Benefit Tax - 0.31

Income Tax relating to previous years 46.22 (4.56)

Profit/(Loss) after tax (35.99) 35.98

Balance brought forward from previous year 696.55 668.17

Transferred to Reserve Fund - 7.60

Balance Carried forward 660.55 696.55

DIVIDEND

Directors do not recommend payment of dividend for the financial year ended 31 st March 2010.

REVIEW OF OPERATION

During the year, your Company achieved a turnover of Rs.926.55 Lakhs as against Rs.691.50 Lakhs in the previous year. The profit before tax is Rs.14.23 Lakhs as against Rs.23.03 Lakhs in the previous year.

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd was Rs. 402.97 Lakhs as against Rs. 22.91 Lakhs in the previous year. Profit before tax stood at Rs. 14.01 Lakhs as against loss of Rs.46.73 Lakhs in the previous year. During the year, your Company introduced a consulting and manpower outsourcing division with the business of engaging trained contractual personnel to Gati Limited and its subsidiary companies for non-core activities on contractual basis.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Mr, R S Agarwala and Mr. S M Jalan, directors of the Company retire by rotation and being eligible offer themselves for re- appointment.

INVESTMENT

Your Company has made a total investment of Rs.10.80 Crores as on date in M/s. Amritjal Ventures Private Limited which is engaged in generating power and investing in power generating companies.

FIXED DEPOSITS

The Company has not accepted any deposit during the year.

DIRECTORS* RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors confirm the following:

- that in the preparation of the Annual Accounts for the year ended March 31, 2010, the applicable accounting standards have been followed along with proper explanation relating to material departures;

- that the directors have selected such accounting policies and applied them consistently and made judgement 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.

- that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities. .

- that the directors have prepared the annual accounts on a going concern basis.

AUDITORS:

Deloitte Haskins & Sells, Chartered Accountants, Hyderabad, have expressed their unwillingness to continue as auditors for the year 2010-2011. The Board of Directors recommended that M/s S.B. Billimoria & Company, Chartered Accountants, Hyderabad be appointed as auditors for the Financial Year 2010-2011, subject to the approval of the shareholders in the, forthcoming Annual General Meeting of the company.

ENERGY,TECHNOLOGY & FOREIGN EXCHANGE:

The Company has no activities relating to Conservation of EnergyorTechnology Absorption.

PERSONNEL

The particulars of employees required under Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not furnished as there is no employee in receipt of remuneration more than the prescribed limit.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement, a report on Corporate Governance is given in Annexure I.

ACKNOWLEDGEMENT:

Your Directors would like to place on record their grateful appreciation for the wholehearted and sincere co-operation your Company has received from the customers, Banks, Government Authorities, shareholders and Financial Institutions. Your Directors also wish to place on record their deep sense of appreciation for the devoted service of the management team, employees and associates of the Company.

By Order of the Board TCI FINANCE LIMITED

O. Swaminatha Reddy Secunderabad, May 5,2010 Chairman

Mar 31, 2009

The Directors are presenting herewith the 35th Annual Report arid the Audited Statement of Accounts for the year ended 31st March 2009.

FINANCIAL RESULTS:

(Rs.in Lakhs)

As on As on 31st March 2009 31st March 2008

Income 691.50 330.88

Profit before Interest, Depreciation & Taxation 612.32 244.02

Financial Charges 547.68 71.84

Depreciation 41.61 68.76

Profit before tax 23,03 103.42

Provision for tax:

Current Tax -- 8.20

Deferred Tax (8.69) (16.59)

Fringe Benefit Tax, 0.31 0.32

Income Tax relating to previous year (4.56) (0.38)

Profit after tax 35.97 111.87

Balance brought forward from previous year 668.17 579.30

Transferred to Reserve Fund 7.60 23.00

Balance Carried forward 696.54 663.17

DIVIDEND

Directors do not recommend payment of dividend for the financial year ended 31st March 2009.

REVIEW OF OPERATION

During the year, your Company achieved a turnover of Rs.691 Lakhs as against Rs.331 Lakhs in the previous year. The net profit after tax is Rs.36 Lakhs as against Rs. 112 Lakhs in the previous year.

The turnover of the Subsidiary Company M/s. ITAG Business Solutions Ltd is Rs. 23 Lakhs as against Rs. 6 Lakhs in the previous year. Loss stood at Rs. 47 Lakhs as against Rs. 86 Lakhs in the previous year. The company is only in its second year of operation. Further due to recessionary market conditions, the company incurred losses during the year under review.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Mr. O Swaminatha Reddy and Mr.V T Pawar retire by rotation and being eligible offer themselves for re-appointment.

FIXED DEPOSITS

The Company has transferred unclaimed deposit including interest Rs.32,000/- to the Investors Education & Protection Fund of the Central Government pursuant to Section 205A of the Companies Act, 1956. There are no amount lying in the Escrow Account as on date.

INVESTMENT

Your Company has made a to+al investment of Rs.10.80 Crores as on date in M/s. Amritjal Ventures Private Limited which is engaged in generating power and investing in power generating companies. The target date of commercial operation of Chuzachen Hydro Electric Power Project is expected to commence around June 2010.

ABRIDGED ANNUAL ACCOUNTS

In accordance with the Guidelines of SEBI, abridged standalone and consolidated annual accounts for the year ended 31 st March 2009 are being circulated while detailed accounts will be made available on request.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217 (2AA) of the Companies Act, 1956 your Directors confirm the following:

- that in the preparation of the Annual Accounts for the year ended March 31, 2009, the applicable accounting standards have been followed along with proper explanation relating to material departures;

- that the directors have selected such accounting policies and applied them consistently and made judgement 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 toss of the Company for that period.

- that the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the. company and for preventing and detecting fraud and other irregularities.

- that the directors have prepared the annual accounts on a going concern basis.

AUDITORS:

The Auditor, M/s. Deloitte Haskins & Sells, Chartered Accountants, hold office until the conclusion of this Annual General Meeting and are eligible for re-appointment.

ENERGY, TECHNOLOGY & FOREIGN EXCHANGE:

The Company has no activities relating to Conservation of Energy or Technology Absorption.

PERSONNEL

The particulars of employees required under Section 217 (2A) of the Companies Act 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not furnished as there is no employee in receipt of remuneration more than the prescribed limit.

CORPORATE GOVERNANCE

Pursuant to Clause 49 of the Listing Agreement, a report on Corporate-Governance is given rnAnnexure I.

ACKNOWLEDGEMENT:

Your Directors would like to place on record their grateful appreciation for the wholehearted and sincere co-operation your Company has received from the customers. Banks, Government Authorities, shareholders and Financial Institutions. Your Directors also wish to place on record their deep sense of appreciation for the devoted service of the management team, employees and associates of the Company.

By Order of the Board TCI FINANCE LIMITED

O. Swaminatha Reddy

Secunderabad, 12th May, 2009 Chairman

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